What does Ocwen Financial Corporation do?


Quick Answer

Ocwen Financial Services is a holding company that services mortgages and commercial loans, according to its website. It also originates mortgages through its subsidiaries, Liberty Home Equity Solutions and Homeward Residential.

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Full Answer

Ocwen Loan Servicing is the largest nonbank mortgage loan servicer in the United States and specializes in subprime and delinquent loans, according to the Consumer Financial Protection Bureau. Ocwen participates in the Home Affordable Modification Program and as of Aug. 2015 had received over $2.1 billion in public funding to assist homeowners, reports ProPublica.

In 2013, the CFPB and attorneys generals in 49 states accused the company of extensive misconduct. They filed a proposed court order requiring Owens to refund $125 million to borrowers whose loans were not handled correctly and perform loan modifications worth $2 billion. The action accused the company of failing to prevent foreclosures and providing false information to borrowers, according a statement by the CFPB.

The U.S. District Court in the District of Columbia entered a consent decree against Ocwen in Feb. 2014. It required that Ocwen provide refunds to borrowers whose homes were foreclosed upon between Jan. 1, 2009 and Dec. 31, 2012. Borrowers were able to submit restitution claims until Sept. 15, 2014, according to NationalOcwenSettlement.com. The company paid the claimants in Dec. 2014.

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