Judge rules on Ocwen's motion to dismiss Florida lawsuit

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A federal judge granted in part and denied in part Ocwen Financial's motion to dismiss Florida regulators' case against the company, the last remaining of 30 state lawsuits filed in 2017.

While Judge Kenneth Marra of the U.S. District Court in Florida's Southern District threw out three of the counts against Ocwen, the remaining allegations related to the company's servicing practices were dismissed without prejudice, which will allow the state's attorney general and Office of Financial Regulation to refile their complaint.

"We are pleased that the district court dismissed three counts from the Florida case entirely and dismissed all of Florida's remaining claims without prejudice. Ocwen will continue to vigorously defend itself should Florida refile and continue to pursue claims against us," the company said in a statement released Tuesday.

"We are committed to our mission of creating positive outcomes for homeowners and communities, and we believe that Ocwen's servicing practices have and continue to result in substantial benefits to consumers."

Judge Marra gave the state's attorney general and Office of Financial Regulation until Oct. 19 to refile the lawsuit.

The Consumer Financial Protection Bureau faced a similar dismissal of its April 2017 lawsuit last month. That dismissal also included an opportunity to refile.

A hearing on a discovery dispute related to both cases is set Oct. 17.

Among the conditions in Ocwen's previous state settlements was the replacement of the company's servicing system. Regulators alleged the technology produced inaccurate information.

Ocwen also had to promise to replace its legacy servicing system without disrupting borrowers to get a state-level approval for its acquisition of PHH Corp. last year.

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State regulators Enforcement actions Servicing Mortgage technology Ocwen Financial CFPB Florida