"Along with authorities in 49 states, and the District of Columbia, [the CFPB filed an order yesterday against the] largest nonbank mortgage loan servicer in the country, Ocwen Financial Corporation, to pay for years of systemic misconduct in mortgage servicing. The misconduct included unfair shortcuts, unauthorized fees, deception, illegal foreclosures, and other illegal practices. Ocwen will be required to provide $2 billion in loan modification relief to its customers and $125 million in refunds to consumers whose homes were foreclosed."
The company agreed to abide by the mortgage servicing standards established in the 2012 National Mortgage Settlement.
The following were considered UDAAP violations:
- "Failing to timely and accurately apply payments made by borrowers and failing to maintain accurate account statements;
- "Charging unauthorized fees for default-related services;
- "Providing false or misleading information to borrowers regarding loans that had been transferred from other servicers;
- "Failing to provide accurate and timely information to borrowers who sought information about loss mitigation services, including loan modifications;
- "Misrepresenting to borrowers that loss mitigation programs would provide relief from the initiation of foreclosure or further foreclosure efforts;
- "Improperly denying loan modification relief to eligible borrowers;
- "Providing false or misleading reasons for denial of loan modifications;
- "With respect to transferred loans, failing to honor in-process trial modifications agreed to by prior servicers; and
- "Robosigning affidavits in foreclosure proceedings."
Read the CFPB Consent Order and Cordray's Remarks.
Read the CFPB FAQ.