Subprime Mortgage Giant Ocwen Rocked by U.S. Suit Claiming Mishandling

Livinglies's Weblog

by David McLaughlin and Matt Scully
April 20, 2017, 12:53 PM EDT April 20, 2017, 6:44 PM EDT
  • Shares of mortgage collection company tumble most on record
  • Consumer Financial Protection Bureau alleges widespread errors

Ocwen Financial Corp., one of the nation’s largest processors of consumer mortgage payments, was rocked Thursday by fresh allegations it mishandled accounts and in some cases illegally foreclosed on homeowners.

The company’s shares lost more than half their value after state and federal authorities alleged widespread failures at the company and blocked it from acquiring new business. State regulators said fixing the company’s problems could put it under. Ocwen said the U.S.’s complaints were unfounded and that it did not cause substantial harm to consumers.

The accusations put a new cloud over the future of Ocwen, which played a key role in helping banks get rid of their exposure to subprime home loans after the 2008 financial…

View original post 831 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s