New York • State and federal authorities have sued mortgage servicer Ocwen Financial Corp., saying the company botched the handling of millions of mortgage accounts.
The Consumer Financial Protection Bureau said Thursday the accounts Florida-based Ocwen serviced 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 illegally foreclosed on homeowners, and charged borrowers for add-on products without their consent. Those are just a few of the violations the CFPB alleged in its complaint.
A representative for Ocwen did not immediately respond for a request for comment. 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.