Subprime mortgage giant Ocwen rocked by US suit claiming it hurt consumers

Washington

OCWEN Financial Corp, one of the largest processors of consumer mortgage payments in the United States, was rocked on Thursday by fresh allegations it mishandled accounts and in some cases illegally foreclosed on homeowners.

The company's shares lost more than half their value after state and federal authorities alleged widespread failures at the company and blocked it from acquiring new business. State regulators said that fixing the company's problems could put it under. Ocwen said the US's complaints were unfounded and that it did not cause substantial harm to consumers.