New York banking regulators are investigating one of the nation's largest non-bank mortgage servicing companies, Ocwen Financial, over worries the company is bilking $65 million a year in kickbacks from both struggling homeowners and investors.
Watchdogs are scrutinizing the controversial, but common, practice of forcing homeowners to buy overpriced property insurance once they fall behind in their mortgage payments.
The amount of money New York State is receiving in penalties levied against banks is increasing. In the last three months, state coffers have added more than $4.6 billion in bank fines.
The bulk of the money comes from a record settlement against BNP Paribas, a French bank that admitted to violating US sanctions against Iran, Sudan, and Cuba. It was first reported that New York would receive $2.2 billion, but that number ticks up by another billion because New York City will be giving a portion of its penalty to the state.
A group of small businesses on Long Island is urging lawmakers to change a state law that forbids trade associations from joining together to buy group health plans. Business owners complain they are paying about 30% more for health insurance than larger businesses.
New York’s top banking regulator says he wants to crackdown on not just companies involved in financial scandals, he wants the punish the workers too. Superintendent of New York’s Department of Financial Services Ben Lawsky was on Long Island Wednesday talking about this and other regulatory changes on the horizon.