What the Ocwen Settlement means for you
Ocwen required to provide $2 billion in loan modification relief and $125 million in refunds to consumers whose homes were foreclosed.
Many distressed homeowners had poor experiences with Ocwen Financial Corporation, including runarounds and surprises. In response to what the Consumer Financial Protection Bureau (CFPB) called years of systemic misconduct in mortgage servicing, the CFPB is requiring Ocwen to provide $2 billion in principal reduction for underwater borrowers and $125 million in refunds to 185,000 consumers whose homes were foreclosed.
Ocwen is the nation’s fourth-largest mortgage servicer and largest nonbank servicer. According to the CFPB, Ocwen’s misconduct since 2009 included unfair shortcuts, unauthorized fees, deception, unreasonable delays and expenses to obtain loss mitigation relief, improper denial of loss mitigation relief and illegal foreclosures.
The settlement involves Ocwen and two companies recently purchased by Ocwen: Litton Loan Servicing LP and Homeward Residential Holdings LLC (previously known as American Home Servicing, Inc. or AMHSI). If your loan was serviced by one of Ocwen, Litton or Homeward, you lost your home to foreclosure between January 1, 2009 and December 31, 2012, and if you meet other criteria, the settlement administrator will mail you a notice letter and claim form.
If you are eligible for foreclosure relief, how much will you get? That depends. All consumers who file eligible claims will receive an equal payment based on the total number of successful claims.
Many Michigan State University Extension offices have HUD-approved housing counselors who offer the housing counseling requirement. Find one near you and call for an appointment in person, by phone or online. In other areas, find a HUD approved housing counselor.
For more information on new CFPB foreclosure procedures and protections:
- Changes in Michigan Foreclosure Law
- New foreclosure avoidance procedures: Part 1
- New foreclosure avoidance procedures: Part 2