WASHINGTON, D.C.- On the same day that the Consumer Financial Protection Bureau (CFPB) filed suit, Wisconsin joined 24 other states in issuing cease and desist orders against Ocwen Loan Servicing, LLC, a Florida-based corporation with headquarters in Delaware and the U.S. Virgin Islands. The CFPB accused Ocwen of “years of widespread errors, shortcuts, and runarounds,” costing some borrowers money and other borrowers their homes.
A multi-state examination to determine Ocwen’s compliance with federal and state laws and regulations yielded similar results. The multi-state examiners, comprised of officials in Florida, Maryland, Massachusetts, Mississippi, Montana, and Washington, identified several violations of state and federal law. The violations included, but were not limited to, consumer accounts that could not be reconciled and “willful and ongoing unlicensed activity.”
“The Consumer Financial Protection Bureau (CFPB) is a valuable partner to states and helps them protect consumers from financial abuses,” said Lauren Saunders, associate director of the National Consumer Law Center. “Any attempt to weaken the CFPB leaves families in Wisconsin and across the nation vulnerable to violations of their rights.”
The 20 state regulators ordered Ocwen to immediately cease acquiring or originating new residential mortgages, or mortgage servicing rights, until the company can prove that consumer funds are appropriately collected, properly calculated and disbursed accurately and timely.
“People have no choice of the mortgage servicer that handles their loan, and yet the servicer’s misconduct can cause families to lose their homes. That is why vigilance by the CFPB and state regulators is so important to send a message to financial service providers that misconduct will not go unpunished,” Saunders added.