On April 20, 2017, the Consumer Financial Protection Bureau, the State of Florida and other states sued mortgage servicer Ocwen for improper business practices. According to the 93 page complaint, millions of mortgage accounts Ocwen handled were riddled with errors throughout the repayment process. The suit claims that Ocwen would go after borrowers long before verifying that a debt was valid, fail to credit payments, illegally foreclose on homeowners, and charge borrowers for add-on products without their consent. In addition to the suit, authorities in at least 18 other states have issued cease-and-desist orders against Ocwen to address mishandling of consumer escrow accounts and a deficient financial condition, specifically prohibiting Ocwen from acquiring new mortgage servicing rights and originating mortgage loans.
Ocwen shares fell sharply on the news falling 51% on very heavy volume.
GSP is investigating whether shareholders of Ocwen Financial Corp. (NYSE: OCN) have potential claims for violations of the securities laws. If you purchased shares of Ocwen and have suffered a loss on your investment, and wish to learn more, please contact Paul Scarlato by email at [email protected].