Ocwen Stock Tanking in Wake of Cease and Desist Order

Photo Apr 02, 10 48 36 PM

Update: The Consumer Financial Protection Bureau just sued Ocwen for “failing borrowers throughout mortgage servicing process.  It says “mortgage servicer’s widespread errors, shortcuts, and runarounds cost borrowers money, homes.”

CFPB Press Release

CFPB Complaint

The Commissioner of Financial Regulation for the State of Maryland issued a Summary Order to Cease and Desist and Partial Summary Suspension of Respondent’s Mortgage Lender License against Ocwen Financial Corporation and its subsidiaries.

The Commissioner participated in a multi-state examination of Ocwen in order to determine the company’s compliance with applicable federal and state laws and regulations, and to evaluate Ocwen’s financial condition and management’s control and supervision of its licensed mortgage servicing operations. As a result of this examination, the Commissioner alleges that some of Ocwen’s actions may be in violation of Maryland law and regulations, and as such he has determined that it is in the public interest to prohibit Ocwen from acquiring any future servicing rights for Maryland mortgage loans and to suspend the company’s Maryland Mortgage Lender License.

Approximately 26 other states are filing similar actions. In addition, the Consumer Financial Protection Bureau (CFPB) and the Attorney General of Illinois are announcing a lawsuit against Ocwen for gross misconduct while servicing mortgage loans.

Ocwen Financial Corp

NYSE: OCN – Apr 20, 4:15 PM EDT
2.49USDPrice decrease2.91 (53.89%)
After-hours: 2.62Price increase5.22%

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