February 11, 2014 > Ocwen to pay billions
Ocwen to pay billions
Submitted By Attorney General Kamala D. Harris
Attorney General Kamala D. Harris announced a $2.1 billion multistate and federal settlement with Ocwen Financial Corporation and Ocwen Loan Servicing, LLC over alleged mortgage servicing misconduct. The settlement makes California homeowners eligible to receive up to $268 million in first lien principal reductions and nearly $23 million in cash payments to borrowers.
"This settlement will help homeowners who've been misled while trying to modify their Ocwen mortgages," said Attorney General Harris, "But our work isn't done. Too many California families are still ?coping with uncooperative banks and mortgage service providers. My office will continue to fight on their behalf."
The settlement resolves allegations that Ocwen engaged in robo-signing, Òdual trackingÓ of borrowers seeking loan modifications, and other misconduct in the course of its mortgage servicing activities. The settlement also resolves similar allegations against Homeward Residential, Inc. and Litton Loan Servicing, LP, which Ocwen acquired.
Ocwen holds nearly 390,000 loans in California, of which 12% are underwater.
The national settlement requires Ocwen to pay $125 million to borrowers whose homes were foreclosed between 2009 and 2012 and commit to $2 billion in first lien principal reduction loan modifications over the next three years. The Consumer Financial Protection Bureau was the lead agency for the negotiations. The settlement was signed by 49 states and the District of Columbia, including California.
For more information about the settlement, CA Ocwen borrowers can call 1 (800) 337-6695 and email ConsumerRelief@Ocwen.com. The California Department of Justice also has more information at oag.ca.gov.