Massachusetts sues Ocwen over mortgage
Send a link to a friend
[April 29, 2017]
By Nate Raymond
BOSTON (Reuters) - The Massachusetts
attorney general sued a unit of Ocwen Financial Corp on Friday, accusing
the mortgage servicing company of engaging in abusive practices that
harmed thousands of homeowners in the state.
The lawsuit, filed in Suffolk County Superior Court, came a week after
the U.S. Consumer Financial Protection Bureau, the Florida attorney
general and more than 20 state banking regulators took action against
Massachusetts Attorney General Maura Healey said Ocwen Loan Servicing
LLC charged homeowners for unnecessary forced-place insurance policies,
hit delinquent borrowers with excessive fees and failed to process
escrow and insurance payments.
"It is alarming that one of the nation's largest mortgage loan servicers
has proven itself to be incapable of properly handling homeowners'
mortgages in Massachusetts," Healey said in a statement.
Ocwen, one of the United States' largest nonbank mortgage servicers, in
a statement said that it was reviewing the matter and intended to
vigorously defend itself.
The lawsuit followed a similar case brought by the CFPB on April 20,
accusing Ocwen of widespread misconduct in how it serviced borrowers'
loans, from foreclosure abuses to a basic failure to send accurate
[to top of second column]
CFPB officials said Ocwen and its subsidiaries have failed to clean
up their act, even after reaching a settlement with the agency and
states in 2013 to provide $2.1 billion in relief to harmed borrowers
because of similar violations.
The CFPB's lawsuit was filed as more than 20 state banking
regulators, including the Massachusetts Division of Banks, issued
orders or charges to subsidiaries of Ocwen to address violations of
state and federal laws.
Ocwen on Wednesday filed a legal challenge to the CFPB that argued
the agency was not legal under the U.S. constitution. Ocwen has also
filed lawsuits to block the actions by the Massachusetts and
Illinois banking regulators.
(Reporting by Nate Raymond in Boston; Editing by Leslie Adler)
[© 2017 Thomson Reuters. All rights
Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.