Trading of Ocwen Financial Group (NYSE:OCN) shares was temporarily halted after news that California may suspend the mortgage-payment collector's license, a move that would deprive the company of its largest market.

The state alleges that Ocwen has refused over the past two years to provide sufficient information to verify whether it was obeying laws intended to prevent foreclosure-related abuse, the Los Angeles Times reported late Monday.
Shares plunged 30% on the stock market today, hitting lows not seen since 2009.

If California and Ocwen, which is among the biggest U.S. mortgage servicers, can't settle, the company could lose its license in the state before the end of the year, which means that it could no longer collect payments and handle foreclosures.

State and federal investigators are also examining whether Ocwen delayed short sales of some homes so it could keep collecting fees, Bloomberg said last month, citing sources.