| BOSTON, April 28
BOSTON, April 28 The Massachusetts attorney
general sued a unit of Ocwen Financial Corp on Friday,
accusing the mortgage servicing company of engaging in abusive
practices that harmed thousands of homeowners in the state.
The lawsuit, filed in Suffolk County Superior Court, came a
week after the U.S. Consumer Financial Protection Bureau, the
Florida attorney general and more than 20 state banking
regulators took action against Ocwen.
Massachusetts Attorney General Maura Healey said Ocwen Loan
Servicing LLC charged homeowners for unnecessary forced-place
insurance policies, hit delinquent borrowers with excessive fees
and failed to process escrow and insurance payments.
"It is alarming that one of the nation's largest mortgage
loan servicers has proven itself to be incapable of properly
handling homeowners' mortgages in Massachusetts," Healey said in
Ocwen, one of the United States' largest nonbank mortgage
servicers, in a statement said that it was reviewing the matter
and intended to vigorously defend itself.
The lawsuit followed a similar case brought by the CFPB on
April 20, accusing Ocwen of widespread misconduct in how it
serviced borrowers' loans, from foreclosure abuses to a basic
failure to send accurate monthly statements.
CFPB officials said Ocwen and its subsidiaries have failed
to clean up their act, even after reaching a settlement with the
agency and states in 2013 to provide $2.1 billion in relief to
harmed borrowers because of similar violations.
The CFPB's lawsuit was filed as more than 20 state banking
regulators, including the Massachusetts Division of Banks,
issued orders or charges to subsidiaries of Ocwen to address
violations of state and federal laws.
Ocwen on Wednesday filed a legal challenge to the CFPB that
argued the agency was not legal under the U.S. constitution.
Ocwen has also filed lawsuits to block the actions by the
Massachusetts and Illinois banking regulators.
(Reporting by Nate Raymond in Boston; Editing by Leslie Adler)