Ocwen Financial Corporation, the largest sub prime mortgage servicing company in the United States, has entered into a consent order with the State of New York to pay $150 million dollars to New York homeowners and to modify and reform its practices concerning the servicing of mortgage obligations. The settlement was made with the Department of Financial Services of the State of New York.
Payment to Former and Current Homeowners
The terms of the settlement require Ocwen to pay $50 million dollars in restitution to both current and former homeowners who had dealings with Ocwen. Ocwen is to pay $10,000 to each homeowner who lost their homes pursuant to a foreclosure proceeding since 2009. In addition, Ocwen had to pay a $100 million dollar civil penalty by the end of December 2014. The State of New York is going to utilize these funds for foreclosure relief, housing for families whose homes have been foreclosed on and for community development purposes.
The $150 million dollar consent agreement with Ocwen was the result of an investigation between 2010 and 2011 concerning wrongful foreclosures, poorly documented foreclosure practices, “robo-signing”, the submission of inaccurate affidavits to courts, and sloppy, improperly maintained business records and paperwork.
Conclusion
In the event you are a homeowner whose home is currently in foreclosure or was foreclosed upon by Ocwen since 2009, you are entitled to compensation pursuant to Ocwen’s settlement with New York State.
Elliot Schlissel is a foreclosure defense attorney. He helps keep clients in their homes. He obtains mortgage modifications for clients and he fights for client’s rights in foreclosure lawsuits.
