Ocwen Financial has started sending settlement payments to Delaware residents who had their mortgage loans serviced by the company before losing their houses to foreclosure, Attorney General Beau Biden said today.
The settlement is part of a national lawsuit filed against the mortgage loan servicer that alleged that Ocwen's financial conduct contributed to the housing crisis. The company specialized in servicing high-risk mortgage loans.
The suit alleges that Ocwen used false and deceptive documents and actions, including robo-signing, which violated homeowners' rights, and caused premature and unauthorized foreclosures.
Approximately 200 Delaware residents who lost their homes while having their loans serviced by Ocwen or one of its subsidiaries from 2009 to 2013 will receive checks for approximately $1,200 each. Current customers will receive improved financial services, including reductions in their principal.
“Our financial system only works when everyone plays by the rules and there must be accountability when the rules are broken,” Biden said. “The funds we have secured in these settlements provide financial benefits to consumers as well as resources to strengthen communities harmed during the housing crisis.”