Regulators fear more bad mortgage practices

You may have gotten a mortgage through the local branch of one of the megabanks, but did you know there’s a good chance your bank turned around and sold the rights to service your loan to somebody else?

The mortgage servicing industry is a big business and growing. Servicers handle the daily operations of your loan, such as collecting payments and calculating late charges. They also track when loans get in trouble, and can even start foreclosure proceedings.

The biggest non-bank mortgage servicer is Ocwen Financial (OCN). It specializes in what it calls “high risk loans.” You’ve probably never heard of Ocwen, but regulators are keeping close tabs on the company.