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Vermont Attorney General Joins $2.1 Billion National Settlement With Ocwen Financial
CONTACT: Elliot Burg, Assistant Attorney General, (802) 828-5507
December 19, 2013
Some Vermonters will benefit from settlement of a $2.1 billion national multistate-federal settlement with the fourth-largest mortgage servicer in the United States, Ocwen Financial Corporation of Atlanta, Georgia, and its subsidiary, Ocwen Loan Servicing. Vermont Attorney General William H. Sorrell announced today Vermont is joining the settlement that stems from misconduct in servicing high-risk mortgage loans on the part of Ocwen and two related companies, Homeward Residential Inc. and Litton Home Servicing.
Under the settlement, over $2 million in first-lien principal reductions will be made available to Vermont consumers; some Vermonters with foreclosed loans may also be eligible for cash payments, the amount of which will depend on the number of consumer claims filed.
According to a complaint filed in federal court in the District of Columbia, Ocwen’s misconduct led to premature and unauthorized foreclosures, violations of homeowners’ rights, and the use of false and deceptive documents and affidavits, including “robo-signing.”
“The servicing misconduct in this case was similar to the issues raised in the 2012 national mortgage settlement with five major banks,” Attorney General Sorrell said, "and this resolution reflects our commitment to holding servicers accountable for their actions.”
In some cases, Ocwen will notify borrowers directly regarding principal reductions. However, borrowers should contact Ocwen to obtain more information about principal reductions and whether they qualify under terms of this settlement; for that purpose, Ocwen’s toll-free number is 1-800-337-6695, and its email address is ConsumerRelief@Ocwen.com. A settlement administrator will notify qualified foreclosed borrowers regarding the cash payments.
For more information on the settlement, link here to the FAQs available on the Attorney General’s website.
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