Alaska Joins National Settlement with Ocwen Over Mortgage Servicing Misconduct
December 19, 2013
Anchorage, Alaska - Alaskans whose mortgages are serviced by Ocwen Financial Corporation may benefit from a $2.1 billion national settlement filed today in federal court in the District of Columbia.
The settlement involves Ocwen Financial Corporation and its subsidiary, Ocwen Loan Servicing. Ocwen specializes in servicing high-risk mortgage loans and is now the fourth-largest mortgage servicer in the United States. It recently acquired Litton Home Servicing and Homeward Residential, Inc.
Alaskans with loans serviced by Ocwen, Litton or Homeward, also known as AHMSI, may be eligible for a reduction in their total loan amount or, if they lost their home through foreclosure, a cash payment. Ocwen estimates that it will provide more than $950,000 in principal reduction to troubled borrowers in Alaska. The foreclosure-related payment will be about $1000, depending on the total number of consumer claims filed. Receiving a loan modification or a payment under the settlement does not prevent a borrower from pursuing an individual or class action case against Ocwen.
Ocwen will contact borrowers directly regarding principal reductions, but borrowers may also contact Ocwen at 1-800-337-6695 or ConsumerRelief@Ocwen.com regarding eligibility under the settlement.
The complaint filed in this case alleges that Ocwen’s misconduct led to premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits. The misconduct is similar to the issues raised in the 2012 settlement with five banks: Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo. Joseph A. Smith, Jr., monitor of the national mortgage settlement, will oversee Ocwen’s compliance with today’s settlement.
A settlement administrator will notify qualified foreclosed borrowers regarding the cash payments. More information about the settlement may be found at www.law.alaska.gov/consumer or by contacting Assistant Attorney General Cynthia Drinkwater at (907) 269-5200.
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