CFPB

The Consumer Financial Protection Bureau last week filed suit against one of the country’s largest nonbank mortgage loan servicers, Ocwen Financial Corp., and its subsidiaries. The complaint alleges Ocwen failed borrowers at every stage of the mortgage servicing process.

“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 statement. “Borrowers have no say over who services their mortgage, so the bureau will remain vigilant to ensure they get fair treatment.”

The CFPB alleges that Ocwen’s for years made widespread errors, shortcuts and runarounds, costing some borrowers money and others their homes. Ocwen allegedly botched basic functions, like sending accurate monthly statements, properly crediting payments and handling taxes and insurance. The company also allegedly  illegally foreclosed on struggling borrowers, ignored customer complaints and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers’ records.

Florida Attorney General Pam Bondi also took action against Ocwen last week in a separate lawsuit. Several state financial regulators are also independently issued cease-and-desist and license revocation orders against Ocwen for escrow management and licensing issues, according to the CFPB.

Ocwen is one of the nation’s largest nonbank mortgage servicers. The company serviced almost 1.4 million loans with an aggregate unpaid principal balance of $209 billion as Dec. 31, 2016. It services loans for borrowers in all 50 states and the District of Columbia.

Through its complaint, filed in federal district court for the Southern District of Florida, the CFPB seeks a court order requiring Ocwen to follow mortgage servicing law, provide relief for consumers and pay penalties.

CFPB Sues Ocwen For Failing Mortgage Borrowers

by Banker & Tradesman time to read: 1 min
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