Mortgage servicer Ocwen was ordered today to cut clients’ loan balances by $2 billion and refund $125 million to the nearly 185,000 borrowers who have already been foreclosed.
Ocwen is the country’s largest non-bank mortgage service company according to the Consumer Financial Protection Bureau, which filed the proposed court order along with regulatory authorities in 49 states and the District of Columbia. Mortgage servicers collect payments from borrowers and forward the money to the owners of the loans. Servicers also handle loan defaults and foreclosures.
The CFPB blasted “Ocwen’s systemic misconduct at every stage of the mortgage servicing process,” saying it took advantage of homeowners by charging unauthorized fees, improperly denying loan modifications and engaging in illegal foreclosure practices.
“Deceptions and shortcuts in mortgage servicing will not be tolerated,” CFPB Director Richard Cordray said in a press release. “Ocwen took advantage of borrowers at every stage of the process. Today’s action sends a clear message that we will be vigilant about making sure that consumers are treated with the respect, dignity, and fairness they deserve.”
The settlement administrator will contact eligible homeowners with a notice letter and claim form. You’ll find the CFPB’s explainer here.
We were forclosed on by Ocwen in 2010. We have moved twice since then. How can we make sure that we can get in on the class action? Thank you!
I didn’t find contact information for the settlement administrator but you can call the CFPB at (855) 411-CFPB (2372).