Payments to Ocwen borrowers mailed in December 2014
Updated: March 2015
The deadline to submit a claim form has passed and claims are no longer being accepted. Checks were mailed in December 2014 to borrowers who submitted valid claims in the National Ocwen Settlement. The payment amount for each loan is approximately $1,150. The exact amount is not being released to help prevent fraud.
CFPB, States Reach Settlement with Ocwen
• $2 Billion in principal reduction
• $125 Million in cash to foreclosed homeowners
• Modeled on National Mortgage Settlement
The Consumer Financial Protection Bureau (CFPB), together with attorneys general and state banking regulators in 49 states, and the District of Columbia obtained a Consent Judgment requiring the largest nonbank mortgage loan servicer in the country, Ocwen Financial Corporation, and its subsidiary, Ocwen Loan Servicing, to provide $2 billion in first lien principal reduction to underwater borrowers. The consent order addresses Ocwen’s misconduct during the mortgage servicing process. It also covers two companies previously purchased by Ocwen, Litton Loan Servicing LP (“Litton”) and Homeward Residential Holdings LLC (previously known as American Home Mortgage Servicing, Inc. or AHMSI). Ocwen must also pay $125 million to the nearly 185,000 Ocwen, Litton, and Homeward borrowers who have already been foreclosed upon and Ocwen must adhere to significant new homeowner protections.
The consent order requires that Ocwen follow the servicing standards set up by the 2012 National Mortgage Settlement (NMS) with the five largest banks. Ocwen’s compliance with this settlement will be monitored by the same professional monitoring team currently in charge of enforcing the NMS, led by former North Carolina Banking Commissioner Joseph Smith.
Further information concerning the Ocwen settlement is available here:
• A factsheet about the Consent Judgment
• Common consumer questions and answers about the order
• A copy of the Ocwen complaint that the CFPB and state attorneys general filed
• A copy of the Consent Judgment entered by Judge Rosemary Collyer on February 26, 2014 (Exhibit A, Exhibit B, Exhibit C, Exhibit D, Exhibit E, Exhibit F)