Regulators say Ocwen mishandled mortgages
State and federal authorities have sued mortgage servicer Ocwen Financial, saying the company botched the handling of millions of mortgage accounts.
The Consumer Financial Protection Bureau said Thursday that the accounts Ocwen serviced were riddled with errors throughout the repayment process. It said that the company would go after borrowers long before verifying whether the debt was valid, accused it of foreclosing illegally on at least 1,000 homeowners, and said that it charged borrowers for add-on products without their consent.
Florida-based Ocwen called the lawsuit “politically motivated.” It is one of the nation’s largest nonbank mortgage servicers, focusing mostly on subprime and delinquent mortgages, handling 1.4 million mortgages worth about $209 billion.