US Sues Ocwen Financial Over Mortgages

(CN) – State and federal authorities sued mortgage servicer Ocwen Financial Corp. on Thursday, saying the company mishandled millions of mortgage accounts.

The Consumer Financial Protection Bureau says the accounts serviced by Ocwen were riddled with errors throughout the repayment process.

It said the company would go after borrowers long before verifying whether the debt was valid, allegedly foreclosed illegally on at least 1,000 homeowners, and charged borrowers for add-on products without their consent.

The CFPB, the state of Florida, and other state agencies are suing Ocwen or issuing cease-and-desist orders against the company in the joint action filed Thursday.

“Enough is enough. Florida’s distressed Ocwen borrowers should no longer have to endure costly servicing errors and unfair practices,” Florida Attorney General Pat Bondi said in a statement.

In a written statement the West Palm Beach, Fla.-based Ocwen dismissed the lawsuit as politically motivated and said it denies the accusations.

The company is one of the nation’s largest non-bank mortgage servicers, focusing mostly on subprime and delinquent mortgages, handling 1.4 million mortgages in all 50 states as well as Washington, D.C., worth roughly $209 billion.