Firm Accused Of Illegal Practices That Push Families Into Foreclosure, he fallout from the housing crisis isn’t over.
According to Moody’s Analytics, there were 700,000 foreclosures last year. And some of those people probably didn’t need to lose their homes. Even now, more than six years after the housing crash, lawyers for homeowners say mortgage companies are still making mistakes and foreclosing on homes when they shouldn’t be.
Ocwen Financial Corp. is facing an investigation by regulators and a new lawsuit over its treatment of homeowners facing foreclosures. The class-action suit alleges that Ocwen has been charging marked-up, illegal fees and unfairly pushing homeowners into foreclosure.
Ocwen, one of the nation’s largest mortgage services, collects mortgage payments from American homeowners.
‘Helping Homeowners Is What We Do’
There’s some irony in Ocwen’s case because for years the company claimed to be better than the country’s biggest banks at avoiding foreclosures. Ocwen even trademarked the slogan “Helping homeowners is what we do!”
As a “specialty servicer,” the company’s executives said it had computer systems and policies that were specially designed for working with homeowners who had fallen on hard times and were having trouble paying. Since the housing crash, Ocwen’s chairman, William Erbey, has become a billionaire as the company has grown.