It added that many of the issues were addressed in its 2013 settlement with the CFPB and that the allegations in the new complaint represent "only a small percentage of Ocwen’s 1.3 million customers." The bureau said some of Ocwen's alleged violations included illegally foreclosing on homeowners, failing to credit borrowers' payments, botching escrow accounts, servicing loans using error-riddled information, and deceptively signing up and charging borrowers for add-on products.
Many of the errors, the CFPB says, came about through Ocwen's flawed proprietary servicing system known as REALServicing, which the company's servicing head once referred to as a "train wreck." In one case, a borrower with a mortgage modification started having her payments rejected.
She later learned the system was off by a few cents in how it calculated her new modified monthly payment, misapplied her payments to the prior month, and caused her to receive delinquency notices.
It still owns and maintains the REALServicing platform, and Ocwen contracts with Altisource for technology services.
William Erbey, an Ocwen founder, had chaired the boards of both Ocwen and Altisource until he was forced to step down at the end of 2014 as part of a $150 million settlement with New York's financial regulator related to improper mortgage servicing practices.