Thankfully, the Trump administration has our backs on this.
The Consumer Financial Protection Bureau sued Ocwen Financial Corp., one of the nation’s largest mortgage servicers, alleging the company engaged in “significant and systemic misconduct” that caused borrowers to lose their homes.
In addition to the lawsuit filed in U.S. District Court in Florida, more than 20 state regulators took action against the company, limiting its operations in their states.
The dual actions caused the company’s stock to plunge more than 50%.
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.
In short, they are criminals.
The West Palm Beach, Fla., company also was accused of illegally starting foreclosure on at least 1,000 consumers and relying on a system to service loans that even an Ocwen executive called “ridiculous” and a “train wreck,” the bureau said in news release.
Ocwen, in a statement, called the consumer agency’s allegations “inaccurate and unfounded” and promised to “vigorously defend” against the lawsuit.
“The CFPB suit is primarily based on the CFPB’s flawed review of data and its self-serving conclusion about isolated instances where Ocwen self-identified ways we can do better,” the company said.
In February, Ocwen reached a separate agreement with California regulators and agreed to pay more $225 million in refunds and loan forgiveness to Californians settling allegations that sloppy practices led to violations of state and federal mortgage rules over the last several years.
The deal allowed the company to add new California mortgages to its books, which it had been barred from doing since January 2015.
Nice going California.
Read the whole story in the LA Times