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US mortgage servicing group Ocwen lost more than half its market value on Thursday after a US consumer-protection agency accused it of “systemic” misconduct that cost some borrowers their homes.
Shares in the New York-listed company, which collects about payments on about 1.4m home loans, dived 55 per cent to $2.46 after watchdogs also found it had a “deficient” financial condition. Several states are revoking its licenses to operate.
In a lawsuit, the Consumer Financial Protection Bureau claimed Ocwen had subjected consumers to “years of widespread errors, shortcuts, and runarounds” from failing to credit borrower payments to botching monthly statements.
The action is a reminder of the power wielded by the Washington regulator, which Republicans have vowed to rein in.
State mortgage regulators representing more than 20 states also issued enforcement orders against the Florida company. Ocwen did not immediately respond to a request for comment.