Consumer complaint received 2018-05-30
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Onity Group Inc. (NY)

XXXX XXXX XXXX and its subsidiaries never ever respond to clients. They intentionally failing borrowers at every stage of the mortgage servicing process. The modification was designed to help people and Ocwen tried to defraud people by increasing the monthly payments by 1700 % This is a criminal organization that must be closed. Ocwens years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes. Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance. Allegedly, Ocwen also illegally foreclosed on a top-secret close door against XX/XX/XXXX foreclosure act and after it they find the proper moment to go in the house illegal and criminal and loot the entire property in case you complain too much. on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers records. The NY. PA, Florida Attorney General took a similar action against Ocwen today in a separate lawsuit. Many state financial regulators are also independently issuing cease-and-desist and license revocation orders against Ocwen for escrow management and licensing issues today. 

" Ocwen has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process, costing some consumers money and others their homes, '' said CFPB Director XXXX XXXX. " Borrowers have no say over who services their mortgage, so the Bureau will remain vigilant to ensure they get fair treatment. '' Ocwen, headquartered in XXXX XXXX XXXX, Fla., is one of the nations largest nonbank mortgage servicers. As of XXXX XXXX, XXXX, Ocwen serviced almost XXXX XXXX loans with an aggregate unpaid principal balance of {$200.00} XXXX. It services loans for borrowers in all 50 states and the District of Columbia. A mortgage servicer collects payments from the mortgage borrower and forwards those payments to the owner of the loan. It handles customer service, collections, loan modifications, and foreclosures. Ocwen specializes in servicing subprime or delinquent loans. 

////////////////////////////////////////////////////////////////////////////////////////////////////////////// CFPB, State Authorities Order Ocwen to Provide {$2.00} XXXX in Relief to Homeowners for Servicing Wrongs XX/XX/XXXX Share this Share on XXXX Share on Twitter Share on XXXX Share on email Largest Nonbank Servicer Will Also Refund {$120.00} XXXX to Foreclosure Victims and Adhere to Significant New Homeowner Protections WASHINGTON, XXXX Today, the Consumer Financial Protection Bureau ( CFPB ), authorities in 49 states, and the District of Columbia filed a proposed court order requiring the countrys largest nonbank mortgage loan servicer, XXXX XXXX XXXX, and its subsidiary, Ocwen Loan Servicing, to provide {$2.00} XXXX in principal reduction to underwater borrowers. The consent order addresses Ocwens systemic misconduct at every stage of the mortgage servicing process. Ocwen must also refund {$120.00} XXXX to the nearly 185,000 borrowers who have already been foreclosed upon and it must adhere to significant new homeowner protections. 
Deceptions and shortcuts in mortgage servicing will not be tolerated, said CFPB Director XXXX XXXX. Ocwen took advantage of borrowers at every stage of the process. Todays action sends a clear message that we will be vigilant about making sure that consumers are treated with the respect, dignity, and fairness they deserve. 
The proposed Ocwen Consent Order is available at : http : //files.consumerfinance.govXXXX Ocwen, a publicly traded Florida corporation headquartered in XXXX, Ga., is the largest nonbank mortgage servicer and the fourth-largest servicer overall in the United States. As a mortgage servicer, it is responsible for collecting payments from the mortgage borrower and forwarding those payments to the owner of the loan. It handles customer service, collections, loan modifications, and foreclosures. 
Ocwen specializes in servicing subprime or delinquent loans and places a major emphasis on resolving delinquency through loss mitigation or foreclosure. In recent years, it has acquired competitors including XXXX XXXX XXXX XXXX ( formerly American Home Mortgage Servicing Inc. ) and XXXX XXXX XXXX XXXX. It has also acquired the mortgage servicing rights from the portfolios of some of the countrys largest banks. 
The CFPB is charged with enforcing the Dodd-Frank Wall Street Reform and Consumer Protection Act which protects consumers from unfair, deceptive, or abusive acts or practices by mortgage servicers whether they are a bank or nonbank. State financial regulators, state attorneys general, and the CFPB uncovered substantial evidence that Ocwen violated state laws and the Dodd-Frank Act. 
In early XXXX, examinations by the XXXX XXXX XXXX, which is comprised of state financial regulators, identified potential violations at Ocwen. In addition, the Federal Trade Commission referred its investigation of Ocwen to the CFPB after the Bureau opened in XX/XX/XXXX. The Bureau then teamed with state attorneys general and state regulators to investigate and resolve the issues identified. Todays settlement is a multi-jurisdictional collaborative effort. 
Borrowers Pushed into Foreclosure by Servicing Errors The CFPB and its partner states believe that Ocwen was engaged in significant and systemic misconduct that occurred at every stage of the mortgage servicing process. According to the complaint filed in the federal district court in the District of Columbia, Ocwens violations of consumer financial protections put thousands of people across the country at risk of losing their homes. Specifically, the complaint says that Ocwen : Took advantage of homeowners with servicing shortcuts and unauthorized fees : Customers relied on Ocwen to, among other things, treat them fairly, give them accurate information, and appropriately charge for services. According to the complaint, Ocwen violated the law in a number of ways, including : o Failing to timely and accurately apply payments made by borrowers and failing to maintain accurate account statements ; o Charging borrowers unauthorized fees for default-related services ; o Imposing force-placed insurance on consumers when Ocwen knew or should have known that they already had adequate home-insurance coverage ; and o Providing false or misleading information in response to consumer complaints. 
Deceived consumers about foreclosure alternatives and improperly denied loan modifications : Struggling homeowners generally turn to mortgage servicers, the link to the owners of the loans, as their only means of developing a plan for payment. Ocwen failed to effectively assist, and in fact impeded, struggling homeowners trying to save their homes. This included : o Failing to provide accurate information about loan modifications and other loss mitigation services ; o Failing to properly process borrowers applications and calculate their eligibility for loan modifications ; o Providing false or misleading reasons for denying loan modifications ; o Failing to honor previously agreed upon trial modifications with prior servicers ; and o Deceptively seeking to collect payments under the mortgages original unmodified terms after the consumer had already begun a loan modification with the prior servicer. 
Engaged in illegal foreclosure practices : One of the most important jobs of a mortgage servicer is managing the foreclosure process. But Ocwen mishandled foreclosures and provided consumers with false information. Specifically, Ocwen is accused of : o Providing false or misleading information to consumers about the status of foreclosure proceedings where the borrower was in good faith actively pursuing a loss mitigation alternative also offered by Ocwen ; and o Robo-signing foreclosure documents, including preparing, executing, notarizing, and filing affidavits in foreclosure proceedings with courts and government agencies without verifying the information.

Remedies : Consumer Protections Todays proposed court order will bar Ocwen from committing such violations in the future. It requires Ocwen to provide {$120.00} XXXX in refunds to foreclosed-upon consumers and {$2.00} XXXX in loan modification relief to its customers through principal reduction. The refunds and relief also apply to consumers whose loans were previously serviced by XXXX XXXX XXXX and XXXX XXXX XXXX. According to the proposed order, Ocwen must : Provide {$2.00} XXXX in relief to underwater borrowers : Over a three-year period, Ocwen must complete sustainable loan modifications that result in principal reductions totaling {$2.00} XXXX. For loan modification options, eligible borrowers may be contacted directly by Ocwen. Or borrowers may contact Ocwen to obtain more information about specific loan modification programs and to find out whether they may be impacted by this settlement. Ocwen can be reached at XXXX or XXXX. If Ocwen fails to meet this commitment, it must pay a cash penalty in the amount of any shortfall to the CFPB and the states. 
Provide {$120.00} XXXX in refunds to foreclosure victims : Ocwen must refund {$120.00} XXXX to consumers whose loans were being serviced by Ocwen, XXXX XXXX XXXX, or Litton Loan Servicing, and who lost their homes to foreclosure between XX/XX/XXXX and XX/XX/XXXX. All eligible consumers who submit valid claims will receive an equal share of the {$120.00}  XXXX. Borrowers who receive payments will not have to release any claims and will be free to seek additional relief in the courts. Ocwen will also pay {$2.00} XXXX to administer the refund process. Eligible consumers can expect to hear from the settlement administrator about potential payments. 
Stop robo-signing official documents : Ocwen must ensure that facts asserted in its documents about borrowers loans used in foreclosure and bankruptcy proceedings are accurate and supported by reliable evidence. Affidavits and sworn statements must be based on personal knowledge. 
Adhere to significant new homeowner protections : Ocwen must change the way it services mortgages to ensure that borrowers are protected from the illegal behavior that puts them in danger of losing their homes. To ensure this, the CFPB and the states are proposing that Ocwen follow the servicing standards set up by the XXXX XXXX XXXX XXXX with the five largest banks. Because of Ocwens track record of problems handling the large volume of  mortgage servicing rights it has quickly acquired in recent years, Ocwen is also being ordered to adhere to additional consumer protections, including how it manages transferred lans. Among other things, Ocwen must : o Properly process pending requests : For loans that are transferred to Ocwen, the company must determine the status of in-process loss mitigation requests pending within 60 days of transfer. Until then, Ocwen can not start, refer to, or proceed with foreclosure. 
o Honor previous loan modification agreements : If the borrower has a loan modification agreement, Ocwen must honor it under the terms of the company that transferred the loan. 
o Ensure continuity of contact for consumers : Ocwen will have to ensure that consumers get regular and dependable assistance when they call for help. This includes requiring more than just a single point of contact assigned to each borrower, but also that other Ocwen employees with access to the borrowers information be available if the borrower wants to speak to someone immediately. 
o Restrict servicing fees : All servicing fees must be reasonable, bona fide, and disclosed in detail to borrowers. For example, Ocwen can not collect any late fees if a loan modification application is under review or if the borrower is making timely trial modification payments. 
o Notify consumers of loss mitigation options and restrict dual tracking : Ocwen generally can not refer a borrowers account to foreclosure while the borrowers application for a loan modification is still pending. If the loan-modification request is denied, the borrower can appeal that decision and Ocwen can not proceed to foreclosure until that appeal has been resolved. 
In XX/XX/XXXX, the CFPB released new rules on mortgage servicing that will apply to every mortgage servicer. The standards that Ocwen must adhere to according to this court order are in addition to the protections offered to consumers under the new rules that take effect on XX/XX/XXXX. More information about the CFPBs new mortgage rules can be found at :  consumerfinance.gov/mortgage. 
A factsheet about the proposed order filed today can be found at : http : //files.consumerfinance.govXXXX Common consumer questions and answers about the order can be found at : http : //files.consumerfinance.govXXXX A copy of the Ocwen complaint that the CFPB and state attorneys general filed today can be found at : http : //files.consumerfinance.govXXXX The complaint is not a finding or ruling that the defendants have actually violated the law. The proposed federal court order will have the full force of law only when signed by the presiding judge. 
# # # The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov. 
Updated on XX/XX/XXXX : The XXXX XXXX XXXX XXXX will mail claim forms to borrowers who lost their home to foreclosure between XX/XX/XXXX and XX/XX/XXXX and whose loans were serviced by Ocwen, XXXX XXXX XXXX XXXX, and XXXX XXXX   XXXX XXXX ( also known as XXXX XXXX XXXX XXXX XXXX XXXX, or AHMSI ). Borrowers may submit claim forms online using their personalized claimant ID number, which is located on the claim form they receive. More information can be found at : XXXX Updated on XX/XX/XXXX : The Ocwen consent judgment entered by the court can be found at : http : //files.consumerfinance.govXX/XX/XXXX ////////////////////////////////////////////////////////////////////////////////////////////////////// CFPB Sues Ocwen for Failing Borrowers Throughout Mortgage Servicing Process Mortgage Servicers Widespread Errors, Shortcuts, and Runarounds Cost Borrowers Money, Homes XX/XX/XXXX Share this Share on XXXX Share on XXXX Share on XXXX Share on email WASHINGTON, D.C. The Consumer Financial Protection Bureau ( CFPB ) today sued one of the countrys largest nonbank mortgage loan servicers, XXXX XXXX XXXX, and its subsidiaries for failing borrowers at every stage of the mortgage servicing process. The Bureau alleges that Ocwens years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes. Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance. Allegedly, Ocwen also illegally foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers records. The Florida Attorney General took a similar action against Ocwen today in a separate lawsuit. Many state financial regulators are also independently issuing cease-and-desist and license revocation orders against Ocwen for escrow management and licensing issues today. 
" Ocwen has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process, costing some consumers money and others their homes, '' said CFPB Director XXXX XXXX. " Borrowers have no say over who services their mortgage, so the Bureau  will remain vigilant to ensure they get fair treatment. '' Ocwen, headquartered in XXXX XXXX XXXX, Fla., is one of the nations largest nonbank mortgage servicers. As of XXXX XXXX, XXXX, Ocwen serviced almost XXXX XXXX loans with an aggregate unpaid principal balance of {$200.00} XXXX. It services loans for borrowers in all 50 states and the District of Columbia. A mortgage servicer collects payments from the mortgage borrower and forwards those payments to the owner of the loan. It handles customer service, collections, loan modifications, and foreclosures. Ocwen specializes in servicing subprime or delinquent loans. 
The CFPB uncovered substantial evidence that Ocwen has engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process. The CFPB is charged with enforcing the Dodd-Frank Wall Street Reform and Consumer Protection Act, which protects consumers from unfair, deceptive, or abusive acts or practices, and other federal consumer financial laws. In addition, the Bureau adopted common-sense rules for the mortgage servicing market that first took effect in XX/XX/XXXX. The CFPBs mortgage servicing rules require that servicers promptly credit payments and correct errors on request. The rules also include strong protections for struggling homeowners, including those facing foreclosure. In its lawsuit, the CFPB alleges that Ocwen : Serviced loans using error-riddled information : Ocwen uses a proprietary system called REALServicing to process and apply borrower payments, communicate payment information to borrowers, and maintain loan balance information. Ocwen allegedly loaded inaccurate and incomplete information into its REALServicing system. And even when data was accurate, REALServicing generated errors because of system failures and deficient programming. To manage this risk, Ocwen tried manual workarounds, but they often failed to correct inaccuracies and produced still more errors. Ocwen then used this faulty information to service borrowers loans. In XX/XX/XXXX, Ocwens head of servicing described its system as ridiculous and a train wreck. 
Illegally foreclosed on homeowners : Ocwen has long touted its ability to service and modify loans for troubled borrowers. But allegedly, Ocwen has failed to deliver required foreclosure protections. As a result, the Bureau alleges that Ocwen has wrongfully initiated foreclosure proceedings on at least 1,000 people, and has wrongfully held foreclosure sales. Among other illegal practices, Ocwen has initiated the foreclosure process before completing a review of borrowers loss mitigation applications. In other instances, Ocwen has asked borrowers to submit additional information within 30 days, but foreclosed on the borrowers before the deadline. Ocwen has also foreclosed on borrowers who were fulfilling their obligations under a loss mitigation agreement. 
Failed to credit borrowers payments : Ocwen has allegedly failed to appropriately credit payments made by numerous borrowers. Ocwen has also failed to send borrowers accurate periodic statements detailing the amount due, how payments were applied, total payments received, and other information. Ocwen has also failed to correct billing and payment errors. 
Botched escrow accounts : Ocwen manages escrow accounts for over 75 percent of the loans it services. Ocwen has allegedly botched basic tasks in managing these borrower accounts. Because of system breakdowns and an over-reliance on manually entering information, Ocwen has allegedly failed to conduct escrow analyses and sent some borrowers escrow statements late or not at all. Ocwen also allegedly failed to properly account for and apply payments by borrowers to address escrow shortages, such as changes in the account when property taxes go up. One result of this failure has been that some borrowers have paid inaccurate amounts. 
Mishandled hazard insurance : If a servicer administers an escrow account for a borrower, a servicer must make timely insurance and/or tax payments on behalf of the borrower. Ocwen, however, has allegedly failed to make timely insurance payments to pay for borrowers home insurance premiums. Ocwens failures led to the lapse of homeowners insurance coverage for more than 10,000 borrowers. Some borrowers were pushed into force-placed insurance. 
Bungled borrowers private mortgage insurance : Ocwen allegedly failed to cancel borrowers private mortgage insurance, or PMI, in a timely way, causing consumers to overpay. Generally, borrowers must purchase PMI when they obtain a mortgage with a down payment of less than 20 percent, or when they refinance their mortgage with less than 20 percent equity in their property. Servicers must end a borrowers requirement to pay PMI when the principal balance of the mortgage reaches 78 percent of the propertys original value. Since XX/XX/XXXX, Ocwen has failed to end borrowers PMI on time after learning information in its REALServicing system was unreliable or missing altogether. Ocwen ultimately overcharged borrowers about {$1.00} XXXX for PMI premiums, and refunded this money only after the fact. 
Deceptively signed up and charged borrowers for add-on products : When servicing borrowers mortgage loans, Ocwen allegedly enrolled some consumers in add-on products through deceptive solicitations and without their consent. Ocwen then billed and collected payments from these consumers. 
Failed to assist heirs seeking foreclosure alternatives : Ocwen allegedly mishandled accounts for successors-in-interest, or heirs, to a deceased borrower. These consumers included widows, children, and other relatives. As a result, Ocwen failed to properly recognize individuals as heirs, and thereby denied assistance to help avoid foreclosure. In some instances, Ocwen foreclosed on individuals who may have been eligible to save these homes through a loan modification or other loss mitigation option. 
Failed to adequately investigate and respond to borrower complaints : If an error is made in the servicing of a mortgage loan, a servicer must generally either correct the error identified by the borrower, called a notice of error, or investigate the alleged error. Since XX/XX/XXXX, Ocwen has allegedly routinely failed to properly acknowledge and investigate complaints, or make necessary corrections. Ocwen changed its policy in XX/XX/XXXX to address the difficulty its call center had in recognizing and escalating complaints, but these changes fell short. Under its new policy, borrowers still have to complain at least five times in nine days before Ocwen automatically escalates their complaint to be resolved. Since XX/XX/XXXX, Ocwen has received more than 580,000 notices of error and complaints from more than 300,000 different borrowers. 
Failed to provide complete and accurate loan information to new servicers : Ocwen has allegedly failed to include complete and accurate borrower information when it sold its rights to service thousands of loans to new mortgage servicers. This has hampered the new servicers efforts to comply with laws and investor guidelines. 
The Bureau also alleges that Ocwen has failed to remediate borrowers for the harm it has caused, including the problems it has created for struggling borrowers who were in default on their loans or who had filed for bankruptcy. For these groups of borrowers, Ocwens servicing errors have been particularly costly. 
Through its complaint, filed in federal district court for the XXXX District of Florida, the CFPB seeks a court order requiring Ocwen to follow mortgage servicing law, provide relief for consumers, and pay penalties. The complaint is not a finding or ruling that the defendants have actually violated the law. 
The lawsuit is available at : http : //files.consumerfinance.govXXXX # # # The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov. 
/////////////////////////////////////////////////////////////////////////////////////////////////////// CFPB Sues Ocwen for Failing Borrowers Throughout Mortgage Servicing Process Mortgage Servicers Widespread Errors, Shortcuts, and Runarounds Cost Borrowers Money, Homes XX/XX/XXXX Share this Share on XXXX Share on XXXX Share on XXXX Share on email WASHINGTON, D.C. The Consumer Financial Protection Bureau ( CFPB ) today sued one of the countrys largest nonbank mortgage loan servicers, XXXX XXXX XXXX, and its subsidiaries for failing borrowers at every stage of the mortgage servicing process. The Bureau alleges that Ocwens years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their  homes. Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance. Allegedly, Ocwen also illegally foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers records. The Florida Attorney General took a similar action against Ocwen today in a separate lawsuit. Many state financial regulators are also independently issuing cease-and-desist and license revocation orders against Ocwen for escrow management and licensing issues today. 
" Ocwen has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process, costing some consumers money and others their homes, '' said CFPB Director XXXX XXXX. " Borrowers have no say over who services their mortgage, so the Bureau will remain vigilant to ensure they get fair treatment. '' Ocwen, headquartered in XXXX XXXX XXXX, Fla., is one of the nations largest nonbank mortgage servicers. As of XX/XX/XXXX Ocwen serviced almost XXXX XXXX loans with an aggregate unpaid principal balance of {$200.00} XXXX. It services loans for borrowers in all 50 states and the District of Columbia. A mortgage servicer collects payments from the mortgage borrower and forwards those payments to the owner of the loan. It handles customer service, collections, loan modifications, and foreclosures. Ocwen specializes in servicing subprime or delinquent loans. 
The CFPB uncovered substantial evidence that Ocwen has engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process. The CFPB is charged with enforcing the Dodd-Frank Wall Street Reform and Consumer Protection Act, which protects consumers from unfair, deceptive, or abusive acts or practices, and other federal consumer financial laws. In addition, the Bureau adopted common-sense rules for the mortgage servicing market that first took effect in XX/XX/XXXX. The CFPBs mortgage servicing rules require that servicers promptly credit payments and correct errors on request. The rules also include strong protections for struggling homeowners, including those facing foreclosure. In its lawsuit, the CFPB alleges that Ocwen : Serviced loans using error-riddled information : Ocwen uses a proprietary system called REALServicing to process and apply borrower payments, communicate payment information to borrowers, and maintain loan balance information. Ocwen allegedly loaded inaccurate and incomplete information into its REALServicing system. And even when data was accurate, REALServicing generated errors because of system failures and deficient programming. To manage this risk, Ocwen tried manual workarounds, but they often failed to correct inaccuracies and produced still more errors. Ocwen then used this faulty information to service borrowers loans. In XX/XX/XXXX, Ocwens head of servicing described its system as ridiculous and a train wreck. 
Illegally foreclosed on homeowners : Ocwen has long touted its ability to service and modify loans for troubled borrowers. But allegedly, Ocwen has failed to deliver required foreclosure protections. As a result, the Bureau alleges that Ocwen has wrongfully initiated foreclosure proceedings on at least 1,000 people, and has wrongfully held foreclosure sales. Among other illegal practices, Ocwen has initiated the foreclosure process before completing a review of borrowers loss mitigation applications. In other instances, Ocwen has asked borrowers to submit additional information within 30 days, but foreclosed on the borrowers before the deadline. Ocwen has also foreclosed on borrowers who were fulfilling their obligations under a loss mitigation agreement. 
Failed to credit borrowers payments : Ocwen has allegedly failed to appropriately credit payments made by numerous borrowers. Ocwen has also failed to send borrowers accurate periodic statements detailing the amount due, how payments were applied, total payments received, and other information. Ocwen has also failed to correct billing and payment errors. 
Botched escrow accounts : Ocwen manages escrow accounts for over 75 percent of the loans it services. Ocwen has allegedly botched basic tasks in managing these borrower accounts. Because of system breakdowns and an over-reliance on manually entering information, Ocwen has allegedly failed to conduct escrow analyses and sent some borrowers escrow statements late or not at all. Ocwen also allegedly failed to properly account for and apply payments by borrowers to address escrow shortages, such as changes in the account when property taxes go up. One result of this failure has been that some borrowers have paid inaccurate amounts.

Mishandled hazard insurance : If a servicer administers an escrow account for a borrower, a servicer must make timely insurance and/or tax payments on behalf of the borrower. Ocwen, however, has allegedly failed to make timely insurance payments to pay for borrowers home insurance premiums. Ocwens failures led to the lapse of homeowners insurance coverage for more than 10,000 borrowers. Some borrowers were pushed into force-placed insurance.

Bungled borrowers private mortgage insurance : Ocwen allegedly failed to cancel borrowers private mortgage insurance, or PMI, in a timely way, causing consumers to overpay. Generally, borrowers must purchase PMI when they obtain a mortgage with a down payment of less than 20 percent, or when they refinance their mortgage with less than 20 percent equity in their property. Servicers must end a borrowers requirement to pay PMI when the principal balance of the mortgage reaches 78 percent of the propertys original value. Since XX/XX/XXXX, Ocwen has failed to end borrowers PMI on time after learning information in its REALServicing system was unreliable or missing altogether. Ocwen ultimately overcharged borrowers about {$1.00} XXXX for PMI premiums, and refunded this money only after the fact. 
Deceptively signed up and charged borrowers for add-on products : When servicing borrowers mortgage loans, Ocwen allegedly enrolled some consumers in add-on products through deceptive solicitations and without their consent. Ocwen then billed and collected payments from these consumers. 
Failed to assist heirs seeking foreclosure alternatives : Ocwen allegedly mishandled accounts for successors-in-interest, or heirs, to a deceased borrower. These consumers included widows, children, and other relatives. As a result, Ocwen failed to properly recognize individuals as heirs, and thereby denied assistance to help avoid foreclosure. In some instances, Ocwen foreclosed on individuals who may have been eligible to save these homes through a loan modification or other loss mitigation option. 
Failed to adequately investigate and r