Nevada homeowners to get $37.2M in Ocwen mortgage settlement

The Nevada Division of Mortgage Lending, in conjunction with authorities in 48 other states and the District of Columbia, today announced a settlement agreement with Ocwen Financial Corporation and its subsidiary Ocwen Loan Servicing that will provide $2 billion in principal reduction to underwater borrowers.  Ocwen must also refund $125 million to nearly 185,000 borrowers who have already been foreclosed upon.

The agreement with the nation’s largest nonbank mortgage servicer, which also includes the portfolios of several companies recently acquired by Ocwen including Homeward Residential Holdings LLC (formerly American Home Servicing Inc.) and Litton Loan Servicing LP, is the result of a civil law enforcement investigation that includes state attorneys general, state mortgage regulators and the federal Consumer Financial Protection Bureau. The investigation focused on the systemic misconduct at every stage of the mortgage servicing process.

In Nevada, the settlement will provide troubled homeowners with an estimated $32.7 million in first-lien principal reductions, and borrowers on more than 6,262 loans that were foreclosed will be eligible to receive a cash payment.

In addition to the monetary relief for foreclosed homeowners, Ocwen must also enact significant reforms to improve all aspects of its servicing operations.

Borrowers with questions about the settlement should contact Ocwen directly at 1-800-337-6695 or email consumerrelief@ocwen.com. 

Homeowners that feel they have been a victim of a foreclosure scam or mortgage modification fraud are encouraged to contact the Mortgage Lending Division at (702) 486-0782 to file a complaint. The licensing status of a business can be verified by checking the Division’s website at mld.nv.gov, by calling (702) 486-0782 or by emailing mldinfo@mld.nv.gov.

About the Mortgage Lending Division

The Division is authorized to enforce the statutes and regulations pertaining to Mortgage Bankers, Mortgage Brokers, Mortgage Agents, Escrow Agencies, Escrow Agents and Loan Modification Consultants, Foreclosure Consultants and other persons who provide similar services.  The mission of the Division of Mortgage Lending (MLD) is to promote professionalism, education and ethics in the mortgage lending, escrow, loan modification and foreclosure consultant industries through fair regulation and coordination with industry and consumer groups in addition to providing consumers with a fair and balanced complaint resolution process.

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