The Consumer Financial Protection Bureau (CFPB) today announced that it has partnered with authorities in 49 states to file a proposed court order requiring Ocwen Financial Corporation and its subsidiary, Ocwen Loan Servicing, to provide $2 billion in principal reduction to underwater borrowers, to refund $125 million to foreclosure victims and to adhere to significant new homeowner protections. When the bureau opened in July 2011, the Federal Trade Commission referred its investigation of the publicly traded Florida corporation, which specializes in servicing subprime or delinquent loans and places a major emphasis on resolving delinquency through loss mitigation or foreclosure, to the new agency. The bureau's investigation uncovered substantial evidence that Ocwen, headquartered in Atlanta, violated state laws and the Dodd-Frank Act, including evidence that the company took advantage of homeowners with servicing shortcuts and unauthorized fees; deceived customers about foreclosure alternatives and improperly denied loan modifications; and engaged in illegal foreclosure practices. In addition to the aforementioned refund and loan modification relief payments, the CFPB is also proposing that the company stop robo-signing official documents and adhere to significant new homeowner protections, including properly processing pending requests; honoring previous loan modification agreements; ensuring continuity of contact for customers; restricting servicing fees; and notifying customers of loss mitigation options and restricting dual tracking. For more, read the full news release and a factsheet about the proposed order.