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RALEIGH – Some North Carolina homeowners will receive a share of a $2. 1 billion national settlement brought against subprime mortgage loan servicer Ocwen Financial Corp., Attorney General Roy Cooper announced recently.
An estimated $26 million in funds will help North Carolinians with principal reductions on their first-lien mortgage loans. Additionally, $125 million will be distributed to nearly 184,000 consumers who obtained a loan through Ocwen and lost their homes to foreclosure. In North Carolina, approximately 3,500 Ocwen borrowers who were foreclosed upon will each receive between $679 and $1,235 each in settlement funds.
The settlement is a result of a civil law enforcement investigation into Ocwen’s mortgage servicing and foreclosures. The investigation was brought by Cooper’s office, 48 other states’ attorneys general, mortgage regulators and the Consumer Financial Protection Bureau. In the past four years, 105 consumer complaints were filed against Ocwen in North Carolina for issues related to foreclosures, payment errors, loan modifications and collection practices.
To obtain eligibility information about principal reductions and settlement awards, N.C. consumers should contact Ocwen at 1-800-337-6695 or via email at [email protected]. Settlement administrators will respond to qualified homeowners.
According to a complaint filed in U.S. District Court for the District of Columbia, Ocwen Financial’s actions resulted in premature and unauthorized foreclosures, violations of homeowners’ rights, and the use of false and deceptive documents and affidavits. Under the settlement terms, Ocwen and two other companies acquired by the high-risk mortgage provider, Homeward Residential Inc. and Litton Home Servicing LP, are subject to the judgment.
Ocwen Financial, the fourth largest mortgage provider in the country, was not included in the 2012 National Mortgage Settlement the government negotiated with Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo that resulted in $25 billion in relief to consumers, because of its nonbank status. The Consumer Financial Protection Bureau will now provide oversight of the publicly traded company.
Attorney General Cooper said of the settlement: “Today’s agreement together with our previous settlement mean money back to deserving homeowners and stronger standards to protect even more homeowners.”
