In late April of 2017, the Consumer Financial Protection Bureau (CFPB) sued Ocwen Financial Corporation over allegations of widespread misconduct in how it serviced borrowers’ loans.
Headquartered in West Palm Beach, Florida, Ocwen is one of the nation’s largest nonbank mortgage servicers. It services loans for borrowers in all 50 states and the District of Columbia. As of December 31, 2016, Ocwen serviced almost 1.4 million loans with an aggregate unpaid principal balance of $209 billion.
The CFPB uncovered “substantial evidence” that Ocwen “engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process. According to the CFPB, Ocwen allegedly:
o Failed to provide borrowers with accurate monthly statements;
o Failed to properly credit borrowers’ payments;
o Mishandled borrowers’ escrow accounts;
o Mishandled borrowers’ hazard insurance;
o Mishandled borrowers’ private mortgage insurance;
o Illegally foreclosed on struggling borrowers;
o Failed to assist borrowers’ heirs seeking foreclosure alternatives;
o Failed to adequately investigate and respond to borrowers’ complaints;
o Sold off the servicing rights to loans without fully disclosing mistakes it made in borrowers’ records.
The CFPB is seeking a court order requiring Ocwen to follow mortgage servicing law, provide relief for affected consumers, and to pay penalties for its misconduct.
Read more at:
The lawsuit is available at: http://files.consumerfinance.gov/f/documents/20170420_cfpb_Ocwen-Complaint.pdf
Contact Us If You Have Had Mortgaging Servicing Issues
If you have had problems with how your mortgage has been serviced contact us to know about your options. Contact Levitt & Slafkes, P.C. now so our mortgaging servicing attorneys can review your case and determine if you have a case against your mortgage servicer.