22
OCC DELIVERS
CONSENT ORDER
AGAINST CENLAR
e Office of the Comptroller of the
Currency (OCC) has announced that it has
issued a Consent Order against Cenlar FSB
of Ewing, New Jersey. e OCC accuses the
bank of failure to establish effective controls and
risk management practices related to Cenlar's
mortgage servicing and subservicing activities.
Cenlar, the second-largest mortgage servicer
in the nation, services portfolios representing
billions of dollars in residential mortgages for
clients nationwide. e company has more than
100 years of experience in the servicing industry,
with decades focused exclusively on subservicing.
e OCC's order requires Cenlar to take
comprehensive corrective actions to address
identified deficiencies and implement internal
controls and risk management practices
appropriate to the bank's risk profile, and the
size of its mortgage subservicing operations. e
order also limits excessive growth and prioritizes
remediation by requiring the bank to receive
no supervisory objection from the OCC before
adding new subservicing clients and prior to
declaring or paying dividends to shareholders
while the order is effective.
"is action requires Cenlar to improve:
risk oversight, internal controls and preventative
testing related to default, servicing operations and
information technology that is appropriate for
an organization with our current risk profile and
a mortgage subservicing portfolio of our size,"
said Cenlar's Board of Directors in a statement.
"We take seriously our regulatory obligations,
and we are working with the OCC to make any
changes necessary to resolve their concerns. We
will continue to serve clients and their customers
with our constant commitment to care and
excellence as we make improvements to our risk
management and control processes. Cenlar is and
remains a profitable financial institution with
strong capital and liquidity, and has successfully
served clients for more than 25 years."
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