The state of Florida also sued Ocwen, which is based in West Palm Beach, along with the company’s subsidiaries Ocwen Loan Servicing and Ocwen Mortgage Servicing, for “mortgage servicing misconduct.”
According to the complaint filed by Florida Attorney General Pam Bondi and Florida Office of Financial Regulation Commissioner Drew Breakspear, Ocwen “harmed Floridians by filing illegal foreclosures, mishandling loan modifications, misapplying mortgage payments, failing to pay insurance premiums from escrow and collecting excessive fees.”
Florida’s complaint, filed in federal court in West Palm Beach, alleges violations of the Real Estate Settlement Procedures Act, the Florida Deceptive and Unfair Trade Practices Act and Chapter 494, Florida Statutes.
The complaint claims that Ocwen “failed to adequately perform basic mortgage servicing functions that resulted in widespread errors and financial harm to borrowers.”
In a release, Bondi’s office claims that despite a 2014 settlement between Ocwen, the CFPB, and 49 states that involved Ocwen providing $2 billion in consumer relief and paying a fine of $127.3 million for many of the same issues, Ocwen continued to fail in its duties as a mortgage servicer.