(WZZM)—A mortgage servicing company accused of bad business practices in West Michigan has been subpoenaed by the federal government.
Federal investigators are calling on Ocwen Financial to provide certain documents about the company's relations with four affiliated companies. The subpoena follows a similar demand from New York regulators.
The issue is whether Ocwen is enriching itself at the expense of homeowners by funneling foreclosure related business to them. The head of the company is a part-owner of both Ocwen and one of the other companies which provides mandated homeowner's insurance and other services after foreclosure. It's alleged that company, Altisource, has made as much as $65 million a year from Ocwen forced foreclosures.
Investors concerned about this and revised lower operating numbers from the first quarter have also filed a class action lawsuit. The investigations, lawsuits and increased media coverage including WZZM 13's Watchdog reports may have help lead to a 55 percent drop in stock prices.
If you have problems with Ocwen, there may not be immediate help, but you can visit the Michigan Attorney General's website to file a complaint.