Ocwen Must Reimburse Owners

If you have/had a loan from Ocwen, then you may be in line for some Christmas-time cash from the mortgage servicer. In an consent agreement with the Consumer Finance Protection Bureau (CFPB) and 49 state attorneys general filed in Federal court, Ocwen has agreed to pay $2 Billion in loan principal reductions to borrowers whose homes are worth less than the amounts of the loans (underwater borrowers) and refund a further $125 million to 185,000 borrowers who were already foreclosed upon. The consent agreement covers claims by the CFPB that Ocwen at every stage of the loan servicing process the firm violated various areas of the law, including such things as misapplication of payments by borrowers, unauthorized fee assessments, and robo-signing of documents, to name a few of the violations. In a related regulatory filing, Ocwen claims it has already set aside a reserve to cover all of the settlement except $500,000. So, if you have had any connection to Ocwen regarding your mortgage loan and/or have been foreclosed on a loan they were servicing, you should call them regarding how much and/or if, you are covered in this agreement. If they can't, or won't provide satisfactory answers, call the CFPB directly and ask them. Their phone number is (855) 411-2372. Their web site is: www.consumerfinance.gov . Good Luck and Happy Holidays.

Possible Relief in New Jersey!

In an agreement between the state of New Jersey and PHH Mortgage company, PHH has agreed to pay the sum of $6.25 Million to cover allegedly misleading activities in processing/granting of loan modifications and other processes to help homeowners avoid foreclosure. Of this total, "the settlement includes $3.61 million in restitution for approximately 2,000 borrowers nationwide whose loans are serviced by PHH. For example, 44 borrowers whose homes were sold in sheriff’s sales while loan modifications were pending will receive $10,000 each." These payments will be made within thirty days of the effective date of the settlement. The balance of the settlement will be paid to the state of NJ. Additionally, PHH will have to make regular reports on all loan mod applications and foreclosures to the NJ Attorney General for the next two years. If you have, or had, a loan with PHH, or your loan was serviced by PHH, you can call them or the NJ Attorney General for more information as to how this settlement affects you. As always, Good Luck!

New Suits Against Banks in LA

In the past few days, the city of Los Angeles has filed suit against three major mortgage lenders: Wells Fargo, BofA and Citibank, alleging that their mortgage procedures had been at least partly to blame for over 200,000 foreclosures between 2008 and 2012 on mortgages made since 2004, costing the city over $1.2 Billion. The suit charges these lenders with various types of discrimination in making mortgages, including redlining. All three defendant banks denied any of the violations charged. If you borrowed a mortgage from any of these banks at any time since 2004, and have lost your home, or been threatened with the loss of your home, contact your attorney, or, if you cannot afford one, contact legal aid. Clearly, the charges have to be proven in court before any damages can be assessed, and that may take several years, as well as the fact that the existing suits are filed by the city of LA, but, if you feel you have valid claims under these alleged infringements, your attorney may feel it proper to join the suit in your behalf to cover any damages you may have incurred. As always, Good Luck.