Montana Attorney General Announces $2.1 Billion Settlement With Ocwen Mortgage [AUDIO]
Montana Attorney General Tim Fox announced on Friday, December 20, that Ocwen Financial Corporation, of Atlanta, Georgia, and its subsidiary, Ocwen Loan Servicing, have agreed to a $2.1 billion state-federal settlement with Montana, 48 additional states and the District of Columbia, and the Consumer Financial Protection Bureau.
The settlement addresses misconduct by Ocwen and two companies it later acquired, Homeward Residential and Litton Home Servicing, specializing in high-risk mortgage loans.
According to a complaint filed in the U.S. District Court for the District of Columbia, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners' rights and the use of false and deceptive documents, including the practice of 'robo-signing.'
Montana Attorney General Tim Fox said that Ocwen will provide troubled borrowers with an estimated $1.4 million in first lien principal reductions for existing homeowners. Additionally, over 150 loans will be eligible to receive a cash payment.
Fox said there is a program specifically designed to assist Montana homeowners who are struggling with possible foreclosure.
"Struggling homeowners need to know that the Attorney General's "Keep My Montana Home" program is here to help," Fox said. "This Ocwen settlement is just part of our ongoing efforts to hold servicers accountable, and to ensure that homeowners are treated fairly. For information on our Keep My Montana Home' program, call 1-800-481- 6896, or visit the website."
Montana Attorney General Tim Fox