Ocwen’s business halted by yet another state

by Ryan Smith12 May 2017
Ocwen’s already-large troubles have grown a little larger as yet another state issued a cease-and-desist order.

The Texas Department of Savings and Mortgage Lending has issued an order prohibiting the embattled servicer from acquiring rights to service new mortgages and from originating residential mortgages in the state, according to a report by the San Antonio Business Journal. The Texas order is the latest in a deluge of regulatory orders against Ocwen issued by more than half the states in the country. The states allege that Ocwen has violated servicing regulations and mishandled customer escrow accounts.

Ocwen’s troubles continue on the federal level. The Consumer Financial Protection Bureau is suing the servicer, alleging that it overcharged customers, failed to credit payments and illegally foreclosed on properties.

Ocwen has fought back against the regulatory actions, requesting injunctions against the cease-and-desist orders in some states and asking the courts to declare the CFPB unconstitutional.

“Ocwen believes its mortgage loan servicing practices have and continue to result in substantial benefits to consumers above and beyond other mortgage servicers,” the servicer said in a statement after the CFPB sued it. “The substantive allegations in (the CFPB’s) suit are inaccurate and unfounded.”

In 2016, Ocwen serviced about 109,700 loans in Texas, according to the San Antonio Business Journal.


Related stories:
Yet another state sues Ocwen
Ocwen woes continue as yet another state sues
 

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