May 12, 2017
From David Dayen at The Nation:
In December 2013, the Consumer Financial Protection Bureau and 49 states issued a $2.1 billion consent order against Ocwen, one of America’s largest mortgage companies, for “violating consumer financial laws at every stage of the mortgage servicing process.” Three and a half years later, the CFPB sued Ocwen in federal court for, well, violating consumer financial laws at every stage of the mortgage servicing process.
Why are we here again? Why did Ocwen continue to harm thousands of borrowers, years after first being caught? Part of the answer lies in the irresponsibly weak 2013 settlement, the vast majority of which Ocwen didn’t even have to pay itself. Thursday’s lawsuit, in fact, is an indictment of the way the government fails to police financial institutions, letting problems linger and allowing companies to devastate customers for years without intervention.