IE Business Daily Business news for the Inland Empire.
California announced this week that it has reached a settlement with Ocwen Financial and Ocwen Loan Servicing in connecting with Ocwen’s violation of loan servicing laws.
The settlement requires $2 billion worth of loan modifications for homeowners whose mortgages are being handled by Ocwen if those mortgages are in default or are in danger of being foreclosed on, according to multiple published reports.
Forty eight other states are part of the settlement, which was announced Monday by the California Department of Business Oversight.
California’s share of the agreement is $268 million. It’s not known how many Inland Empire homeowners are affected by the settlement, according to the reports.
Atlanta-based Ocwen Financial specialized in high-risk mortgages. Last December, 49 states and the U.S. Consumer Financial Protection Bureau filed a complaint in federal court that alleged that Ocwen Financial engaged in unfair and deceptive acts and that it had broken state and federal laws.
In California, Ocwen Financial was accused of turning down loan modifications without cause, not honoring modifications made by previous mortgage companies and charging improper fees, according to the reports.
