WASHINGTON (12/20/13)--Ocwen Financial Corporation and subsidiary Ocwen Loan Servicing, the largest nonbank mortgage loan servicer in the nation, have been ordered to provide $2 billion in principal reductions to underwater borrowers and $125 million in refunds to homeowners that were allegedly wrongly foreclosed upon under a Consumer Financial Protection Bureau court order.
The consent order is cosigned by the CFPB and authorities in 49 states and the District of Columbia. In the order, the authorities allege Ocwen "engaged in significant and systemic misconduct that occurred at every stage of the mortgage servicing process" and violated consumer financial protections, putting thousands of homeowners in jeopardy of losing their homes.
"Deceptions and shortcuts in mortgage servicing will not be tolerated," CFPB Director Richard Cordray said.
Alleged instances of misconduct cited by a CFPB release include:
To remedy these identified issues, the CFPB and other authorities have requested that Ocwen:
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