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Misspent Money, Scams, Personal Stories & More

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What do strippers, casinos, and groceries have in common? It’s bad enough to be forced to foot the bill of your own company’s audit and financial monitoring. Reverse mortgage servicer Ocwen Financial paid over $44 million dollars to cover the costs of monitoring services to Fidelity Information Services as part of their agreement with the state of California for its investigation of claims that Ocwen did not produce the required paperwork related to the state’s Homeowners Bill of Rights. The servicer alleges the auditor burned through the budgeted money allocated for a two year period in just 11 months, paying for strip clubs, casinos, liquor, and groceries. They also claim that FIS auditors watched videos on company time, left without clocking out, and inflated daily hours worked and mileage expenses. F.I.S. flatly denies the allegations. The auditing firm’s contract was terminated by the court under a new consent order.

download-1Fraud comes in all shapes and sizes and it wasn’t from a loan officer or financial professional. Court papers allege a Chicago contractor, Mark Diamond, of scamming more than $10 million in a repair scheme that targeted older homeowners . In all there are an alleged 122 victims- most women, African-American and in their 80’s.

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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1 Comment

  1. I have heard of things like this before but what a strange set of circumstances. First are the allegations true??? Did Ocwen have any direct or indirect involvement if they are?

    Then there comes the question as to why Ocwen selected the firm in the first place. Did Ocwen believe they could manage the auditors into the situation they were found in?

    An investigation is called for.


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