U.S. Officials Order Ocwen to Give $2 Bln in Relief to Borrowers

December 19, 2013
mortgage lending news

The Consumer Financial Protection Bureau (CFPB) and state officials on Dec. 19 ordered Ocwen Financial to provide $2 billion in aid to underwater borrowers to settle allegations mortgage servicing improprieties. The CFPB and officials from 49 states and the District of Columbia said Ocwen will reduce principal loan balances for distressed homeowners, refund $125 million to foreclosed borrowers, and comply with new rules to protect consumers.

The agency said that Ocwen -- the largest nonbank mortgage servicer in the United States -- caused borrowers to lose their homes by failing to appropriately account for payments, by not providing information about alternatives to foreclosure, and by robo-signing paperwork.

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