Deal with US doesn’t dim Ocwen as portfolio hits $500B

Miami /
Feb.February 03, 2014 04:30 PM

From the New York site: Ocwen Financial Corporation – a company that specializes in servicing large portfolios of underwater, delinquent and subprime mortgages – has amassed a $500 billion servicing portfolio, even in the wake of a recently settled mortgage fraud lawsuit.

The Atlanta-based mortgage servicer picked up $39 billion in servicing rights last month from Wells Fargo Bank. Ocwen has done a number of big acquisition deals over the past three years with Goldman Sachs, JPMorgan Chase and other banks.

But the expansion has not been without obstacles. The servicer agreed to a $2.2 billion settlement in December over a lawsuit filed by the U.S. Consumer Financial Protection Bureau. The bureau accused Ocwen of taking too long to credit the loan payments of borrowers and requiring mortgage-holders to purchase expensive insurance policies.

Of the $2.2 billion settlement, $67 million will be paid in cash to victims of a wrongful property foreclosure.

Some have criticized Ocwen for not permitting homeowners to switch mortgage servicers if they prefer not to work with them.

“We believe Ocwen violated federal consumer financial laws at every stage of the mortgage servicing process,” Richard Cordray of the Consumer Financial Protection Bureau told the New York Post. [NYP]Mark Maurer


Related Articles

arrow_forward_ios
Photo illustration of Ron DeSantis (Getty, iStock)

DeSantis announces $250M rental, mortgage assistance fund

DeSantis announces $250M rental, mortgage assistance fund
Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida extends freeze on evictions and foreclosures to July

Florida extends freeze on evictions and foreclosures to July
Governor Ron DeSantis (Credit: Eva Marie Uzcategui/Getty Images)

Florida governor extends freeze on evictions, foreclosures

Florida governor extends freeze on evictions, foreclosures
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida governor freezes evictions and foreclosures for 45 days

Florida governor freezes evictions and foreclosures for 45 days
South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality
From left: Edgardo Defortuna, Stephan Burke, Ron Shuffield, Ana Bozovic, Carol Cassis, and Mark Zilbert

South Florida’s residential sales shift to virtual reality as business slows

South Florida’s residential sales shift to virtual reality as business slows
Sen. Rick Scott

Sen. Rick Scott calls for nationwide moratorium on rent, mortgages and utilities

Sen. Rick Scott calls for nationwide moratorium on rent, mortgages and utilities
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...