FLORIDA (AP) -- State and federal authorities are suing Ocwen Financial Corp., saying the company botched the handling of millions of mortgage accounts.
The Consumer Financial Protection Bureau said Thursday that Ocwen generated errors in borrowers' accounts, failed to credit payments, illegally foreclosed on homeowners, and charged borrowers for add-on products without their consent.
The CFPB, the state of Florida, and other state agencies are suing Ocwen or are issuing cease-and-desist orders against the company.
Ocwen is one of the nation's largest non-bank mortgage lenders, focusing mostly on subprime and delinquent mortgages.
It serviced 1.4 million loans worth roughly $209 billion. Its shares fell 40 percent after the regulators' action was announced.
Regulators said when consumers complained to Ocwen, the company routinely failed to acknowledge or investigate the consumers' complaints.
Ocwen issued this response:
“As with the recent CFPB enforcement action, Ocwen strongly disputes the key allegations made in the State Regulators’ cease and desist orders that Ocwen’s mortgage loan servicing practices have caused substantial consumer harm. Ocwen will not sign unfair and unjust consent orders that make impractical demands that no other market participant could rationally accept, and which would harm consumers. Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the Company against unfounded claims while continuing to work with State Regulators to resolve any valid concerns.”