Monday, December 30, 2013

$2.1 Billion Mortgage Servicer Settlement

Ocwen Loan Servicing Settles Over Mortgage Misconduct
A recent mortgage settlement is big news for many homeowners, according to a recent article in  Ocwen Loan Servicing will have to provide more than $2 billion “in principal reductions to underwater borrowers, and refund $125 million to nearly 185,000 borrowers who were foreclosed on.” The Consumer Financial Protection Bureau (CFPB) and 49 separate state attorneys general sought to force Ocwen “to remedy...systemic misconduct at every stage of the mortgage servicing process,” as stated by the language of the consent order.  According to a related article in Bloomberg News, Ocwen won’t just be providing significant funds in connection with its mortgage servicing errors. Indeed, the company “will also follow specific guidelines on mortgage services and face independent monitoring of that work.”
Ocwen it the fourth-largest mortgage servicer in the U.S., according to, and it’s actually the “largest nonbank servicer” in the country.  This isn’t the first time that the company has been under intense scrutiny. If you have been the victim of fraudulent mortgage servicing practices, you may be entitled to financial compensation. It is important to speak to an experienced Illinois foreclosure defense attorney about your case.
What Did Ocwen Do Wrong?
According to, Ocwen’s errors began in July 2011 when the Federal Trade Commission (FTC) opened an investigation of the company. Then, in early 2012, state financial regulators recognized possible mortgage servicing violations. Together with the CFPB, state attorney generals and regulators began a large-scale investigation that resulted in the recent settlement. The CFPB’s report emphasized how the loan servicing company’s “violations of consumer financial protections put thousands of people across the country at risk of losing their homes.”
The Los Angeles Times also reported on the settlement and emphasized that Ocwen committed many different violations that significantly impacted borrowers. For instance, Ocwen “provided false and misleading information about the status of a foreclosure at times when borrowers were actively seeking a loan modification.” In addition, the company “robo-signed” foreclosures, which simply means that Ocwen “filed documents that weren’t personally attested to by the signer.”  Other commentators cite the company’s failure to apply mortgage payments to customers’ accounts, assessing unauthorized fees, and “impeding borrowers’ loss mitigation efforts.”
How will the settlement funds be disbursed?  The money will go toward loan modifications and principal reductions over the course of three years, and Ocwen will also provide $127 million for a “consumer relief fund” that will be “disbursed by an independent administrator to foreclosure victims.”
Which consumers may be entitled to settlement checks? The settlement funds are intended to remedy violations that led to foreclosures between January 1, 2009 and December 21, 2012, according to the Los Angeles Times. Homeowners whose loans were serviced by Ocwen, as well as those serviced by Homeward Residential Holdings and Litton Loan Servicing may be eligible.  Ocwen Loan Servicing owns all of the servicing companies. This settlement represents the largest in the history of the Consumer Financial Protection Bureau.
Have you been negatively impacted by mortgage servicing errors or fraudulent acts?  You could be eligible to file a claim for financial compensation.  An experienced foreclosure defense attorney at the Emerson Law Firm can discuss your case with you today.  Contact us to learn more.
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1 comment:



    Homeowners Gregory and Leslie Bushnell have been battling with Ocwen Loan Servicing, LLC for over a year now in a wrongful Unlawful Detainer Action where Ocwen and their Attorneys have knowingly filed false foreclosure instruments and declarations with the Superior Court of San Bernardino to illegally evict the Bushnell’s from their real property. These same foreclosure instruments that Ocwen and their Attorneys are fraudulently moving through the courts are the same foreclosure documents the Bushnell’s were awarded $38,750 from Litton Loan Servicing, LLP due to the wrongful foreclosure settlement conducted by the Federal Reserve. (settlement checks link: Ocwen and their Attorneys have been made aware of the voided foreclosure instruments on numerous occasions, but are intentionally ignoring the voided instruments in order to hurriedly extinguish the “smoking gun”.

    Notwithstanding, the Bushnell’s have a Civil Case # CIVRS1001208 against the Financial Institutions for over 5 years with severe causes of action pending amendment for the Grand Theft of $118,800 in embezzled funds (“smoking gun”) - (“secret second”) stolen from the Bushnell’s real property by the employees of the Financial Institutions during a refinance of their home. (embezzled deed link:

    In the meantime Ocwen for the 3rd time is illegally trying to online auction (CASH ONLY!), undersell and flip the Bushnell’s lender embezzled property, where Ocwen’s has no legal right or authority to do so and is an outright crime! (online auction link: The Bushnell family has been constantly harassed with people knocking on their door and fears the character of a person who would buy cash only “sight unseen” real property.

    Where do we go from here?

    Well, the Bushnell’s have found the smoking gun! The Consumer Financial Protection Unit was made aware of the wrongful acts of Ocwen et al., several times, over a year ago and has done nothing to criminally prosecute these wrongdoers. The government is ignoring the crime and its, “business as usual,” allowing Ocwen to continue to pursue its dirty deeds, victimizing homeowners. (CFPU complaint link:

    And the Bushnell’s like countless other homeowners have reached out to Attorney General, Kamala Harris to clean the courts several times with regards to the fraud infiltrated by the Financial Institutions, Attorneys and Judges in the California Courts. (Harris Notice link: Thus, nothing has been done to stop the homeowners due process abuse, where the courts are mills that are systematically set-up to dismiss Doe Defendant Financial Institutions and the Defendant homeowners are handed down writs and unlawfully evicted from their homes. This is not a just resolution for homeowners and the government needs to do something about this now!

    “We’re tired! We’re fed up! The American people need to know!”
    Advocates for Homeowners