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December 19, 2013

NC to receive $26 million as part of Ocwen mortgage settlement

Ocwen Financial Corp., the largest nonbank mortgage servicer in the country, will pay $26 million to North Carolina as part of a $2.1 billion agreement to settle charges that it performed unauthorized foreclosures and other violations of homeowners' rights and protections.

Ocwen Financial Corp., the largest nonbank mortgage servicer in the country, will pay $26 million to North Carolina as part of a $2.1 billion agreement to settle charges it performed unauthorized foreclosures and other violations of homeowners’ rights.

About $2 billion of the settlement, a state and federal agreement, will go to assist struggling homeowners, N.C. Attorney General Roy Cooper’s office announced Thursday. An additional $125 million will go directly to 184,000 Ocwen borrowers who lost their homes to foreclosure, including nearly 3,500 Ocwen borrowers in North Carolina who will receive betweeen $679 to $1,235 each.

North Carolinians who are eligible for relief should contact Ocwen at 800-337-6695 to see if they qualify under the terms of the settlement. A settlement administrator will contact borrowers who were foreclosed upon and are due a cash payment.

Ocwen specializes in subprime, or high-risk, mortgages. Over the past four years, North Carolinians have filed 105 consumer complaints against the company, according to Cooper’s office.

Ocwen’s misconduct, which included using false and deceptive documents and affidavits, resulted in premature and unauthorized foreclosures, according to a complaint filed in the U.S. District Court for the District of Columbia. The settlement addresses misconduct by Ocwen and two companies it later acquired: Homeward Residential and Litton Home Servicing LP.

The settlement is to be overseen by Joseph Smith, the former state commissioner of banks who is now overseeing the national mortgage settlement reached last year with five of the largest mortgage servicers.

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