SHAREHOLDER ALERT: Goldberg Law PC Announces an Investigation of Ocwen Financial Corporation

Cornelia Mascio
Aprile 21, 2017

In its complaint, the bureau claims Ocwen did not properly address complaints about mortgage servicing from customers over a period lasting several years, nor did the company's leadership listen to other executives who warned about inaccurate information caused by systemic failures in a proprietary software system aimed at streamlining the servicing process.

In a completely separate move, the state of North Carolina today slapped Ocwen with a cease-and-desist letter that will indefinitely prevent it from acquiring new mortgage servicing rights in the state, as well as originating mortgages that it plans to service.

It added that numerous issues were addressed in its 2013 settlement with the CFPB and that the allegations in the new complaint represent "only a small percentage of Ocwen's 1.3 million customers".

The federal consumer agency alleged that Ocwen conducted an error-plagued operation that failed to credit borrower payments, sent inaccurate statements and didn't make insurance payments on time, leading to a lapse of coverage.

The actions against Ocwen also weighed on shares of two other mortgage servicing companies, Altisource Portfolio Solutions SA (ASPS.O) and New Residential Investment Corp (NRZ.N), which fell by more than 36 percent and 12 percent, respectively.

USA and state officials sued Ocwen Financial Corp.

"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.

The Consumer Financial Protection Bureau said the company specializing in subprime and delinquent loans had illegally foreclosed against at least 1,000 borrowers. Since April 2015, Ocwen received more than 580,000 complaints from over 300,000 different borrowers. "Florida's distressed Ocwen borrowers should no longer have to endure costly servicing errors and unfair practices". North Carolina's bank regulator said fixing some of the company's problems could put it out of business. Ocwen is one of the nation's largest non-bank mortgage lenders. "Borrowers have no say over who services their mortgage, so the Bureau will remain vigilant to ensure they get fair treatment".

Ocwen is one of the country's largest nonbank mortgage servicers, servicing nearly 1.4 million loans.

The lawsuits call for Ocwen to pay penalties as well as undisclosed financial relief to borrowers.

In one case, a borrower with a mortgage modification started having her payments rejected. The CFPB went after Ocwen in 2013, again alleging that the company had failed to services its loans improperly.

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