Ocwen’s terrible, horrible, no-good, very bad day continued Thursday when the Consumer Financial Protection Bureau sued the mortgage servicing giant, immediately after more than 20 state regulators had practically crippled its business with cease-and-desist orders.
The day began when more than 20 state regulators ordered Ocwen to stop servicing or originating loans until it could address the mishandling of consumer escrow accounts. Unfortunately for Ocwen, reconciling all 2.5 million first-lien escrow accounts in question would cost the company about $1.5 billion...
The Consumer Financial Protection Bureau sued Ocwen Financial Corp., one of the nation’s largest mortgage servicers, on Thursday, alleging the company engaged in “significant and systemic misconduct” that caused borrowers to lose their homes.
In addition to the lawsuit filed in U.S. District Court in Florida, more than 20 state regulators took action against the company, limiting its operations in their states.
The dual actions caused the company’s stock to plunge nearly 54% on Thursday. Shares edged up 0.8% to $2.52 on Friday morning.
A California judge has fined Bank of America $46 million for its “heartless” and “cruel” treatment of a couple as they struggled to prevent losing their home to foreclosure.
In his decision this month, U.S. Bankruptcy Court Judge Christopher Klein said the Charlotte-based bank pushed Erik and Renee Sundquist to “battle-fatigued demoralization” during the couple’s fight to hang onto their Sacramento-area home.
The size of the fine, Klein said, reflects the bank’s “high degree of reprehensibility” and is meant to be an amount that “won’t be laughed off in the board roo...