SHAREHOLDER ALERT: Goldberg Law PC Announces an Investigation of Ocwen Financial Corporation

Consumer Financial Protection Bureau Director Richard Cordray listens to a speaker during a a hearing in Denver. State and federal authorities are suing Ocwen Financial Corp. saying the mortgage servici

Ocwen Sued by CFPB as Regulators Question Company's Survival

A consumer watchdog is cracking down on a mortgage servicing company that it claims illegally foreclosed on homeowners.

Those are just a few of the violations the CFPB alleged in its 93-page complaint.

In a written statement the West Palm Beach, Fla. -based Ocwen dismissed the lawsuit as politically motivated and said it denies the accusations. Mortgage servicers don't own the mortgage, but are in charge of collecting payments and making sure the accounts are credited correctly.

The Florida-based Ocwen, which has serviced almost 1.4 million mortgages on behalf of banks, has not been convicted of any of these alleged violations.

The home borrower said she sent the company two checks, one for principal and interest, the other for her escrow payment, around April 2, 2016, to prepay her May 2016 mortgage costs.

In its lawsuit, authorities allege that Ocwen failed at even the most basic tasks for a mortgage servicer.

In its complaint, the bureau claims Ocwen did not properly address complaints about mortgage servicing from customers over a period lasting several years, nor did the company's leadership listen to other executives who warned about inaccurate information caused by systemic failures in a proprietary software system aimed at streamlining the servicing process.

The order issued by North Carolina banking commissioner Ray Grace said mortgage regulators in multiple states identified problems with Ocwen's handling of escrow accounts and other violations of federal and state laws in 2015.

If you purchased or otherwise acquired Ocwen shares and would like more information regarding the investigation, we encourage you to contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 1999 Avenue of the Stars Suite 1100, Los Angeles, CA 90067, at 800-977-7401, to discuss your rights without cost to you.

Ocwen was "unaware" of any comprehensive CFPB review of mortgage servicing practices, the statement said. The frustrating and expensive experience of one consumer cited in the CFPB lawsuit illustrated the problems some borrowers confronted when dealing with Ocwen.

Ocwen said it's still reviewing the state allegations.

Regulators said when consumers complained to Ocwen, the company routinely failed to acknowledge or investigate the grievances. "Florida's distressed Ocwen borrowers should no longer have to endure costly servicing errors and unfair practices".

Numerous errors, the CFPB says, came about through Ocwen's flawed proprietary servicing system that the company's servicing head once referred to as a "train wreck". The CFPB's complaint, filed today, alleged the Ocwen "engaged in significant and systemic misconduct at almost every stage of the mortgage servicing process".

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