Ocwen Financial Corp., one of the country’s largest nonbank mortgage loan servicers, is being sued for failing borrowers at every stage of the mortgage servicing process. Ocwen’s years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes, the Consumer Financial Protection Bureau said Thursday.
Ocwen allegedly botched basic functions such as sending accurate monthly statements, properly crediting payments, and handling taxes and insurance. It also illegally foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without disclosing the mistakes it made in borrowers’ records, the bureau alleges.
The Florida Attorney General also sued Ocwen Thursday in a separate lawsuit. In addition, many state financial regulators issued cease-and-desist and license revocation orders against Ocwen Thursday for escrow management and licensing issues.