WEBVTT - Bloomberg Law Brief: Ocwen Sued By Regulators (Audio)

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<v Speaker 1>Well, now it's time for our daily Bloomberg Law Brief,

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<v Speaker 1>exploring legal issues in the news and today, Bloomberg LA

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<v Speaker 1>host Jun Grosso and Michael Best discuss a lawsuit against

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<v Speaker 1>mortgage giant Ackwin for improper handling of mortgages bought from

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<v Speaker 1>banks in the fall out of two thousand and eight

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<v Speaker 1>financial crisis. They speak with Robert Hawkeett, a professor at

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<v Speaker 1>Cornell University Law School. Bob, you know, this isn't the

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<v Speaker 1>first time the CFPB has gone after Akwin, and went

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<v Speaker 1>after them in two thousand thirteen over what sounds like

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<v Speaker 1>very similar kinds of allegations of mismanagement of accounts. How

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<v Speaker 1>is it that this didn't get cleared up when that

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<v Speaker 1>when the CFPB went after them the first time? Well,

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<v Speaker 1>I mean that that is uh sixty four thousand dollar question, right.

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<v Speaker 1>I mean, one would have thought that Akwin would have

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<v Speaker 1>been put on notice ban uh and that they would

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<v Speaker 1>have gotten their act together. Um. I think there are

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<v Speaker 1>a couple of possible explanations. They're sort of good faith.

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<v Speaker 1>I mean, there are sort of charitable explanation possible. I'm sorry,

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<v Speaker 1>there are some possible explanations that are sort of charitable

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<v Speaker 1>and others that are less. So let's start with the charitable.

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<v Speaker 1>The charitable explanation might be that they said that, yeah,

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<v Speaker 1>we'll get our act together, we'll sort of get back

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<v Speaker 1>on the straight arrow, will we'll fix these problems, and

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<v Speaker 1>that they really tried um, but that they underestimated the

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<v Speaker 1>magnitude of the problem and so didn't succeed in sort

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<v Speaker 1>of fully handling it. Another possibility is that they were

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<v Speaker 1>in fact acting to correct the problems that the CFPB

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<v Speaker 1>notified them about, but that in the meanwhile, they kept

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<v Speaker 1>taking on additional servicing rights so that the full portfolio

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<v Speaker 1>and that they were dealing with continued to grow. So

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<v Speaker 1>the CFPB, the State of Florida, and twenty one other

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<v Speaker 1>state agencies are suing them or issuing cease and decease

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<v Speaker 1>desist orders against the company. Yeah, it has said it

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<v Speaker 1>will vigorously defend itself. What is its defense? I really,

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<v Speaker 1>I frankly can't imagine what it could be. I really can't.

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<v Speaker 1>I'm very I mean, I'm surprised by this particular attitude.

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<v Speaker 1>I would have thought that they would have been exhibiting

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<v Speaker 1>some kind of contrition um, some sort of plea to

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<v Speaker 1>the effect that well, you know, please, you know, work

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<v Speaker 1>with us here where we really are trying. We're doing

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<v Speaker 1>our best. But but the problem is that the thing

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<v Speaker 1>has you know, that the portfolio has grown so rapidly

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<v Speaker 1>that even as we are making improvements, were still having

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<v Speaker 1>trouble keeping up. That would have struck me as the

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<v Speaker 1>right sort of tone to take. Instead by striking a

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<v Speaker 1>defiant tone and saying, oh, this is just a CFPB

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<v Speaker 1>sort of getting out of control, I think it's an

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<v Speaker 1>amazingly stupid strategy to tell you the truth, because when

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<v Speaker 1>you've got half of the states of the Union making

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<v Speaker 1>the same claim, trying to scapegoat the CFPB just isn't

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<v Speaker 1>gonna It's not gonna fly, right, Nobody's going to buy that.

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<v Speaker 1>I can't see what kind of defense they could possibly

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<v Speaker 1>offer that would be consistent, at least with a defiant

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<v Speaker 1>tone that they're striking. And that's Robert Hawkeet, a professor

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<v Speaker 1>at Cornell University Law School, speaking with Bloomberg Law host

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<v Speaker 1>and Crosso. You can listen to Bloomberg Law Wait days

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<v Speaker 1>at one pm Wall Street Time here on Bloomberg Radio Now.

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<v Speaker 1>Among the top legal stories from Bloomberg Law, drivers fort

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<v Speaker 1>Left have accused Uber of illegally tracking their whereabouts using

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<v Speaker 1>spywear was according to a complaint filed in San Francisco

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<v Speaker 1>Federal court that says Uber wanted to identified drivers who

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<v Speaker 1>worked for both companies so they could be targeted with

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<v Speaker 1>incentives to primarily work for Uber. Folks for Uber had

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<v Speaker 1>no comment. United Airlines is another passenger problem to deal with.

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<v Speaker 1>A woman claimed she was forced out of her business

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<v Speaker 1>class seat during a flight from Newark to London and

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<v Speaker 1>escorted to the back of the plane without an explanation.

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<v Speaker 1>She wants a hundred fifty thousand dollars in punitive damages.

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<v Speaker 1>United says it's reviewing the complaint. French drugmakers Center Fee

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<v Speaker 1>is accusing Melon of trying to squash a rival to

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<v Speaker 1>its EpiPen allergy treatment and aren't officially inflate the price

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<v Speaker 1>of the drug. Sono Fias filed suit in federal court

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<v Speaker 1>in New Jersey. Melon is not commenting. And that's this

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<v Speaker 1>morning's Bloomberg Lawbrary. If you can find more illegal news

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<v Speaker 1>at Bloomberg Law dot com and Bloomberg BNA dot com.

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<v Speaker 1>Attorneys will find exceptional legal research and business development tools

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<v Speaker 1>there as well. Visit Bloomberg law dot com and Bloomberg

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<v Speaker 1>BNA dot com for more information.