Attorney General Pam Bondi News Release


April 20, 2017
Contact: Whitney Ray
Phone: (850) 245-0150

Attorney General Bondi and OFR Commissioner Breakspear File Action Against Ocwen

TALLAHASSEE, Fla.—Attorney General Pam Bondi and Florida Office of Financial Regulation Commissioner Drew J. Breakspear today filed a federal civil consumer protection lawsuit against Ocwen Financial Corporation of West Palm Beach and its subsidiaries, Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc., for mortgage servicing misconduct. According to the complaint, Ocwen harmed Floridians by filing illegal foreclosures, mishandling loan modifications, misapplying mortgage payments, failing to pay insurance premiums from escrow and collecting excessive fees.

“It is my office’s duty to protect the more than 125,000 Ocwen borrowers in Florida. Since 2014, when we first entered the multistate settlement with Ocwen, we have listened to Ocwen’s promises that they would ‘right the ship’ and resolve the improper mortgage servicing and foreclosure misconduct that has plagued it,” said Attorney General Bondi. “Enough is enough. Florida’s distressed Ocwen borrowers should no longer have to endure costly servicing errors and unfair practices.”

"Protecting Florida consumers is a top priority at the Office of Financial Regulation. We appreciate the partnership of Florida Attorney General Bondi in this joint effort to take action against Ocwen and prevent further harm to Floridians. Florida continues to be focused on assisting homeowners in our state who have made or currently make mortgage payments to Ocwen," said OFR Commissioner Breakspear.

The 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. According to the complaint, Ocwen failed to adequately perform basic mortgage servicing functions that resulted in widespread errors and financial harm to borrowers. The complaint seeks financial and other relief for harmed borrowers and an order preventing Ocwen from servicing loans in violation of Florida and federal law.

In 2014, a court approved a $2.1 billion settlement between Ocwen and 49 states, as well as the District of Columbia and the Consumer Financial Protection Bureau, to address allegations of Ocwen’s mortgage servicing misconduct. Attorney General Bondi’s Office has since continued to receive complaints regarding Ocwen’s mortgage servicing failures. Despite the national settlement and numerous other lawsuits and regulatory actions brought against Ocwen throughout the nation, Ocwen allegedly violated consumer protection laws through its use of a fundamentally flawed and unreliable system of record, operational deficiencies and inadequate controls to ensure compliance and prevent errors.

To view the complaint filed against Ocwen, click here.

For more information on the previous settlement, click here.

Florida homeowners who may have been harmed by Ocwen’s actions can file a complaint by visiting MyFloridaLegal.com or calling (866) 9-NO-SCAM. Homeowners may also file a complaint with the Office of Financial Regulation by visiting FLOFR.com or calling (850) 487-9687, select Option 1.

For questions concerning the Office of Financial Regulation, please contact Jamie Mongiovi at (850) 410-9709 or email Jamie.Mongiovi@flofr.com