Ocwen Financial Corp. has filed emergency motions to reverse cease-and-desist orders issued by two states over allegedly deficient servicing practices.
Last week, federal lawsuits were filed against the Atlanta-based firm by the Consumer Financial Protection Bureau and the Florida Attorney General.
In addition, North Carolina Commissioner of Banks Ray Grace announced that his state was among 21 states
issuing regulatory enforcement orders against Ocwen subsidiaries.
At issue is Ocwen’s alleged handling of mortgage servicing.
On Tuesday, Ocwen struck back.
The mortgage servicer said it filed
two emergency motions requesting immediate court action restraining the cease-and-desist orders brought by the Illinois Department of Financial and Professional Regulation, Division of Banking, and the Commissioner of Banks of the Massachusetts Division of Banks.
“Ocwen believes that the Illinois and Massachusetts orders will cause significant harm to the consumers in those states, including potentially those consumers with pending mortgage applications, and those seeking loan modifications,” today’s announcement stated. “Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the company.”
Ocwen explained that the actions weren’t uncovered by the examiners. They are instead from a 2015 multi-state examination by the Multi-State Mortgage Committee covering activities from January 2013 to February 2015 that was concluded back in December 2015.
Each of the remaining state mortgage regulators’ actions will be appealed or responded to in the coming days, according to plans outlined by Ocwen.
