Ocwen Financial, one of the largest subprime loan servicers in the U.S. and formerly based in West Palm Beach, was ordered to pay $2.1 billion to settle a lawsuit over alleged homeowner fraud.
The U.S. Consumer Financial Protection Bureau accused Ocwen of taking too long to credit borrowersâ€™ loan payments and requiring expensive insurance policies. It cheated borrowers via â€śservicing shortcuts and authorized fees,â€ť according to the bureau’s Richard Cordray.Â Ocwen, now headquartered in Atlanta, said it will drop mortgage balances by $2 billion and submit $125 million in cash payments to 185,000 whose properties fell into foreclosure between early 2009 and late last year.
The settlement â€śis in alignment with the same ultimate goals that we share with the regulators â€“ to prevent foreclosures and help struggling families keep their homes,â€ť Ocwen said in a statement. [Palm Beach Post] — Mark Maurer