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.