Regulators Are Suing Subprime Mortgage Servicer Ocwen for Years of ‘Deceptive Practices’

Fortune | April 21, 2017        For the second time since 2013, the U.S. Consumer Financial Protection Bureau on Thursday sued Ocwen Financial over accusations of widespread misconduct in how it serviced borrowers' loans, from foreclosure abuses to a basic failure to send accurate monthly statements.

News of the CFPB accusations plus related legal actions against Ocwen filed by at least 20 states sent shares of Ocwen crashing by nearly 60% in just over an hour, starting after a cease and desist order filed by North Carolina.

CFPB officials said that mortgage servicer Ocwen and its subsidiaries have failed to clean up their act, even after the CFPB ordered Ocwen in December 2013 to fork over $2 billion in relief to harmed borrowers because of similar violations.

"The consumer bureau has uncovered substantial evidence that Ocwen engaged in unfair and deceptive practices," CFPB Director Richard Cordray said, adding that thousands of customers were harmed.  Read more here.