Ocwen to Pay $11M for Alleged Mortgage Servicing Failures

Ocwen allegedly made mistakes servicing Fla. homeowner’s mortgages, including untimely insurance payments and force-placed insurance,
says Attorney General Ashley Moody

October 16, 2020 | Florida Realtors TALLAHASSEE, Fla. – Florida Attorney General Ashley Moody says the state secured more than $11 million in relief for Floridians harmed as a result of alleged improper mortgage servicing practices. The proposed final consent judgment with Ocwen, pending adoption by the U.S. District Court for the Southern District of Florida, resolves a lawsuit brought by the State of Florida against Ocwen Financial Corporation, Ocwen Mortgage Servicing, Inc., Ocwen Loan Servicing, LLC and PHH Mortgage Corporation.

The agreement provides at least $8.6 million in consumer relief, including $2.1 million to Floridians harmed as a result of Ocwen’s alleged servicing failures, including untimely payments of borrowers’ insurance premiums, improper imposition of lender-placed insurance and overcharging for property preservation inspections, Moody says.

Other benefits for eligible Florida borrowers include at least $1 million in mortgage loan modifications and about $5.5 million in late fee waivers. Ocwen will also pay more than $3 million in civil penalties and reimburse the attorney general office’s fees and costs.

Moody calls the settlement a “continuation of our efforts to correct harmful deficiencies in mortgage servicing practices and ensure that distressed homeowners … impacted by servicing errors receive much-needed relief.” Read more here.