Ocwen Settlement Announced
The Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs along with 45 state regulatory agencies, 49 state attorney generals and the District of Columbia and the Consumer Financial Protection Bureau (“CFPB”) with announced a proposed court order requiring Ocwen Financial Corporation and its subsidiary, Ocwen Loan Servicing (“Ocwen”), to provide $2 billion in principal reduction to underwater borrowers. The proposed order affects approximately 403 borrowers totaling approximately $24 million in refunds. The proposed order, to be enforced by the Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs (“DFI”), imposes servicing standards and homeowner protections on Ocwen. DFI supervises and regulates mortgage servicers since 2009.
In early 2012, examinations by the State Multistate Mortgage Committee, which is comprised of state financial regulators, identified potential violations at Ocwen. As required by the Dodd-Frank Act, the state commissioners informed CFPB of the potential violations. The Bureau then teamed with state regulators and attorneys general to conduct its own investigation based on the State Multistate Mortgage Committee findings and resolve the issues identified. Today’s settlement is a multi-jurisdictional collaborative effort.
You can find out whether your mortgage is serviced by Ocwen by calling (800) 337-6695 or emailing your question to [email protected].
Click here for Frequently asked Questions about the settlement agreement.