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Here's Why Ocwen Financial (OCN) and Altisource (ASPS) Stocks Tanked Today

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Shares of both Altisource Portfolio Solutions’ (ASPS - Free Report) and its subsidiary, Ocwen Financial Corp. (OCN - Free Report) , tanked during Thursday trading after the Consumer Financial Protection Bureau (CFPB) decided to sue Ocwen.

Altisource Portfolio closed the day with a 42% drop to $25.44 per share, and Ocwen fell 53% to $2.50 per share.

Ocwen, a mortgage service company that specializes in providing residential and commercial loans, announced today that it is “prepared to vigorously defend itself against the CFPB.”

The federal regulator said the company had harmed thousands of customers by illegally foreclosing on struggling borrowers, ignoring customer complaints and failing to make disclosures about errors in borrowers’ records, according to The Wall Street Journal.

The mortgage company claimed the CFPB suit is “primarily based on the CFPB’s flawed review of data,” and the conclusion is self-serving on just a few isolated instances.

This is not the first time Ocwen has been under investigation. The New York Department of Financial Services and CFPB had already launched an investigation on Ocwen in 2014.

Ocwen said it would “fully cooperate with the CFPB’s inquiries” because it’s the company’s responsibility to defend against these unfounded claims for its customers, shareholders, and employees.

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