FBFG Investigating Potential Class Action Relating To Ocwen Financial’s Servicing Errors

Do you have a mortgage serviced by Ocwen Financial?  Did Ocwen commit errors, such as letting insurance lapse, in the servicing of your mortgage?  If so, you may have a claim against Ocwen.

In 2014, Ocwen Financial Corporation entered into a $2.1 billion settlement with 49 states, as well as the District of Columbia and the Consumer Financial Protection Bureau, in order to address allegations of its mortgage servicing misconduct.  However, recent lawsuits against Ocwen allege that it continues to violate the law and harm consumers.

Just last week, the Consumer Financial Protection Bureau sued Ocwen, alleging that its mortgage servicing system was error-riddled and defectively-designed, resulting in a variety of harms to consumers, including wrongfully instituted foreclosure proceedings, inaccurate or untimely statements, and untimely crediting of mortgage payments.  Indeed, the suit claims that Ocwen failed to make timely insurance payments on behalf of borrowers, leading to a lapse in coverage for more than 10,000 borrowers, even though they had paid for their insurance.  In a separate action instituted last week, the Florida Attorney General similarly sued Ocwen for mortgage servicing misconduct.

Ocwen’s failure to properly service mortgages is actionable, and the suits filed by federal and state regulators are merely the first step in holding Ocwen accountable for its wrongful behavior.  Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully brought lawsuits on behalf of consumers aggrieved by the wrongful acts of banks and mortgage servicers.  If you have experienced issues with the servicing of your mortgage by Ocwen as a result of their error, such a lapse in insurance or wrongfully instituted foreclosure proceedings, please contact us immediately to discuss your legal options.