Ocwen facing CFPB investigation, potential fine for servicing practices

It’s been nearly three years since Ocwen Financial agreed to offer $2 billion in consumer relief and pay up to $127.3 million to settle a Consumer Financial Protection Bureau investigation into its servicing practices.

That settlement, and others with the New York Department of Financial Servicesand the California Department of Business Oversight, are among the items that Ocwen’s executives call the “legacy issues” that Ocwen is working to move past as the nonbank charts a course forward.

But it looks like Ocwen may not be done with the CFPB yet.

Ocwen said Thursday that it is currently under investigation by the CFPB over the company’s mortgage servicing practices, and could be facing a fine and/or other disciplinary action.

Ocwen disclosed the nature and status of the CFPB investigation in its 10-Q filing with the Securities and Exchange Commission, filed as part of the company’s third-quarter earnings release.

Ocwen disclosed the fact that it was facing a CFPB investigation in earlier filings with the SEC, but this latest filing states that the CFPB’s enforcement staff “has been authorized to engage with us regarding the resolution of their concerns” about Ocwen’s compliance with federal servicing laws.

Read on.

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