Ocwen Financial Corporation (Ocwen) is one of the country’s largest nonbank mortgage loan servicers, and it has had its hands full the last six months. On April 20, the Consumer Financial Protection Bureau (CFPB) filed an enforcement action against Ocwen and its subsidiaries for violation of mortgage servicing rules. The CFPB’s suit was filed in the U.S. District Court for the Southern District of Florida, naming Ocwen and two of its subsidiaries--Ocwen Mortgage Servicing, Inc. and Ocwen Loan Servicing, LLC--as defendants. Close on the heels of the CFPB’s suit, the Attorney General for Florida brought a similar action against Ocwen and its subsidiaries--filed the same day, in the same court, bearing the very next civil case number. On top of all that, around the same time the CFPB filed suit on April 20, state mortgage regulators let loose a coordinated broadside against Ocwen...
...22 state mortgage regulators...issued public regulatory orders or charges to subsidiaries of Ocwen...to address violations of state and federal laws, including the mishandling of consumer escrow accounts, unlicensed activity, and a deficient financial condition. The majority of the orders prohibit the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts. The orders are the culmination of several years of examinations and monitoring by multiple state regulatory agencies that revealed the company is mismanaging consumer mortgage escrow accounts…
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