Deals
Subprime Mortgage Giant Ocwen Rocked by U.S. Suit Claiming Abuse
- Shares of mortgage collection company tumble most on record
- Consumer Financial Protection Bureau alleges widespread errors
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Ocwen Financial Corp., one of the nation’s largest processors of consumer mortgage payments, was rocked Thursday by fresh allegations it mishandled accounts and in some cases illegally foreclosed on homeowners.
The company’s shares lost more than half their value after state and federal authorities alleged widespread failures at the company and blocked it from acquiring new business. State regulators said fixing the company’s problems could put it under. Ocwen said the U.S.’s complaints were unfounded and that it did not cause substantial harm to consumers.