Regulator accuses Ocwen of failing millions of home owners

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.



Add Comment

all comments

  Other news

more
Economic growth revised up but still weak

Economic growth revised up but still weak..

26-May, 11:16

A construction worker works on an apartment high-rise in Miami....

India to open longest bridge on China border

India to open longest bridge on China border..

26-May, 00:03

India will inaugurate a 9.15km (5.68-mile) bridge over the Lohit river,...

Binky Felstead to have own spin-off show - read the details!

Binky Felstead to have own spin-off show - read the details!..

26-May, 11:40

The couple announced that they were expecting their first child together...

‘Elect strong politicians or cry for you children’ – Polish PM on Manchester attack

‘Elect strong politicians or cry for you children’ – Polish PM on Manchester attack..

26-May, 12:32

Citizens of Western nations must elect strong leaders or risk falling...

What patients need to know about new recommendations for prostate cancer screening

What patients need to know about new recommendations for prostate cancer screening..

11-Apr, 13:24

In a decision of concern to many middle-aged men and the doctors who care...

Hasbro heads for the loo and business booms

Hasbro heads for the loo and business booms..

24-Apr, 14:48

Business for Hasbro is in the toilet, which turns out to be a pretty good...

M Countdown Episode 513

M Countdown Episode 513..

02-Mar, 20:54

The following M Countdown Episode 513 English Sub has been released. Full...

Healthy profits push stocks higher yet; Nasdaq crosses 6,000

Healthy profits push stocks higher yet; Nasdaq crosses 6,000..

25-Apr, 11:40

Profits are climbing for companies, and so are their stock prices. More...