Suttons Bay Enterprises

TitleSuttons Bay Enterprises
ProductsOCC, newspaper, magazines, and recycled plastic containers (clear & colors)
Company typeTrading Company
Website
Email
Phone1 734 433-2358
Address688 Old Forge Court, ; Chelsea, Michigan, United States
Zip48118
CountryUnited States
ProductsOCC, newspaper, magazines, and recycled plastic containers (clear & colors)
Num of employeesLess than 5 People
Establish year2005
Contact personSteve Zimmer
MarketsWorldwide
SalesBelow US$1 Million

OCC sanctions subservicer Cenlar for poor risk controls

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Wed, 27 Oct 2021 04:56:00

The Office of the Comptroller of the Currency (OCC) issued a consent order against Cenlar FSB, the nation’s second-largest mortgage servicer, over “unsafe or unsound practices,” the regulator said this week.  

The consent order states that New Jersey-based Cenlar cannot take on new subservicing clients without explicit approval from the OCC.

Cenlar internal controls and risk management practices do not support the profile and size of its mortgage sub-servicing portfolio, the OCC said in a statement.

Cenlar is a behemoth in the space – it’s the largest mortgage subservicer and the second largest mortgage servicer in the United States. The non-depository bank says it has around $900 billion in its sub-servicing portfolio, and $1.1 billion in assets.

“The bank has failed to take timely corrective actions to remediate its deficiencies and unsafe or unsound practices,” the regulator said in the consent order.

The order shows Cenlar’s interest in cooperation and avoids additional costs associated with administrative and judicial proceedings.

Cenlar said in a statement on Tuesday that it “voluntarily” entered the consent order, which requests improvements of risk oversight, internal controls, and preventative testing related to default, servicing operations, and information technology.

The OCC requested that the bank develop an effective default operations program concerning loss mitigation, foreclosure, and claims activities. In addition, the bank will have to develop an IT control program.  

“We are working with the OCC to make any changes necessary to resolve their concerns,” the company said in a statement. Cenlar added that it “is profitable” and has strong capital and liquidity.

The bank’s board has 30 days to appoint a compliance committee and has 60 days to submit a written progress report showing corrective actions and their results and status.