Regulator accuses Ocwen of failing millions of home owners
File photo taken in 2017 shows a home for sale in Natick, Mass.
One of the nation's largest nonbank mortgage servicing companies was hit with federal and state lawsuits Thursday for allegedly failing borrowers with mistakes, shortcuts and other problems that cost some people their homes.
Ocwen Financial Corporation allegedly botched basic functions such as sending accurate monthly mortgage statements, properly crediting borrowers' payments and handling taxes and insurance, according to the lawsuit filed in a Florida federal court by the Consumer Financial Protection Bureau.
The CFPB also accused the company of improperly foreclosing on struggling borrowers, ignoring complaints and selling serving rights to mortgage loans without fully disclosing mistakes the company and its subsidiaries had made in borrowers' records.
The Florida Attorney General's office filed similar allegations in a separate lawsuit Thursday.
As of Dec. 31, Ocwen serviced nearly 1.4 million loans with an aggregate unpaid principal balance of $209 billion, the CFPB said. The company services mortgage loans in all 50 states and the District of Columbia.
"Ocwen has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process, costing some consumers money and others their homes," CFPB Director Richard Cordray said in a formal statement issued with the lawsuit announcement.
The company did not immediately respond to an email seeking comment.
The CFPB lawsuit asks the federal court to order Ocwen to comply with mortgage servicing laws and provide compensation to borrowers who were harmed by the company's actions.
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