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North Carolina was among at least 20 states that also took actions against Ocwen.

As Ocwen grew, it failed to properly integrate the systems of businesses it acquired, and improperly foreclosed on borrowers in some cases, NY regulators headed by Benjamin Lawsky said in their 2014 order.

"Ocwen has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process, costing some consumers money and others their homes", CFPB Director Richard Cordray, who was appointed by President Obama, said in a statement.

"Ocwen has consistently failed to correct deficient business practices that cause harm to borrowers", said Ray Grace, the commissioner of banks for North Carolina.

We may be years removed from the robo-signing, foreclosure free-for-all that ensued following the collapse of the housing market, but mortgage servicers continue to screw things up.

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Ocwen Financial ("Ocwen" or the "Company") (NYSE:OCN). Ocwen also illegally foreclosed on struggling borrowers, the CFPB said.

Florida-based Ocwen Financial services about 1.4 million mortgages nationwide, worth a total of $209 billion.

The CFPB said Ocwen violated the Consumer Protection Act, which protects consumers from unfair, deceptive, or abusive acts or practices, and failed to comply with mortgage servicing rules that went into effect in 2014. Mortgage servicers don't own the mortgage, but are in charge of collecting payments and making sure the accounts are credited correctly.

Specifically, the Bureau claims that the system used by Ocwen to process and apply borrower payments, communication information to borrowers, and maintain loan balance information was riddled with errors.

In its lawsuit, authorities allege that Ocwen failed at even the most basic tasks for a mortgage servicer. According to the lawsuit, Ocwen's head of services called the company's technology "an absolute train wreck".

The CFPB, the state of Florida, and other state agencies are suing Ocwen or issuing cease-and-desist orders against the company in the joint action filed Thursday.

In a completely separate move, the state of North Carolina today slapped Ocwen with a cease-and-desist letter that will indefinitely prevent it from acquiring new mortgage servicing rights in the state, as well as originating mortgages that it plans to service.

That same order said that if Ocwen properly accounted for known or anticipated regulatory penalties and required operational fixes, "it would indicate that Ocwen continuing as a going concern would be in doubt".


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