Ocwen Adjusts Servicing Practices to Appease Regulator.

Subprime servicing specialist Ocwen Federal Bank FSB last month entered into a supervisory agreement with its regulator, promising to end certain billing practices and to expedite its handling of consumer complaints.

The Office of Thrift Supervision has been monitoring the West Palm Beach, Fla., thrift for several years in the wake of consumer complaints that continue to dog the company.

OTS did not levy any fines against the federally chartered thrift but nonetheless is demanding quick action to implement a "best practices" approach to servicing that is outlined in the supervisory agreement.

OTS also is demanding detailed monthly reporting on its implementation of the agreement, including reports on all unresolved consumer complaints that have been outstanding for 30 days.

Ocwen chairman and chief executive William Erbey said the company is committed to excellence in customer service. "We are grateful for the insights gained in our ongoing dialogue with OTS and consumer interest organizations, and will continue to strive for ways to better serve our clients."

The supervisory agreement builds on the steps Ocwen has take to establish a consumer ombudsman program and to eliminate charges for default notices.

Ocwen also agreed to expedite pay-off quotes, drop charges for forbearance agreements and implement safeguards on force-placed insurance so consumers are not double-charged for hazard insurance.