BATON ROUGE, LA (KADN) — Ocwen Financial Corporation of Atlanta, Georgia, and its subsidiary, Ocwen Loan Servicing, have agreed to a $2.1 billion dollar joint state-federal settlement with 49 states, including Louisiana and the District of Columbia, and the U.S. Consumer Financial Protection Bureau (CFPB). The settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners, and stops future fraud and abuse. Louisiana is represented in this matter by the Attorney General’s Consumer Protection Section.
Ocwen agreed to $2 billion in first-lien principal reduction and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans. In Louisiana, Ocwen will provide troubled borrowers with an estimated $12 million in first lien principal reductions and some borrowers will be eligible to receive a cash payment. Each payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000.
Attorney General Buddy Caldwell said, “This is part of our ongoing civil law enforcement effort to hold these giant out-of-state servicers, including Ocwen, accountable and ensure that they treat Louisiana borrowers fairly.
The settlement terms address servicing misconduct by Ocwen, and two companies later acquired by Ocwen, Homeward Residential Inc. and Litton Home Servicing LP. According to a complaint filed in the U.S. District Court for the District of Columbia, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including “robo-signing.”
Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, will oversee the Ocwen agreement’s implementation and compliance through the Office of Mortgage Settlement Oversight. The settlement does not grant immunity from criminal offenses and would not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases. The agreement also preserves the authority of state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases.
Louisiana borrowers with questions should contact Ocwen directly at 1-800-337-6695 or ConsumerRelief@Ocwen.com. Additional information may also be found at the following links:
For more information about foreclosure prevention counselors or mortgage assistance programs in Louisiana, homeowners may call the Attorney General’s Consumer Protection Hotline at 1-800-351-4889.