Ocwen Mortgages: Cash and Mortgage Reductions Available Under New Settlement
In December 2013, the Consumer Financial Protection Bureau, 49 state attorneys generals, and the District of Columbia settled a case against Ocwen, the largest non-bank mortgage servicer in the country.
Cash payouts for foreclosed homeowners. Under the settlement, if you lost your home to foreclosure and Ocwen was the servicer, you can get a cash payout. The settlement allocates $125 million towards these payouts, which will be divided equally among claimants. Cash payouts are also available if your mortgage was held by a company bought by Ocwen. Those include:
- Litton Loan Servicing LP, and
- Homeward Residential Holdings LLC (previously known as American Home Mortgage Servicing, Inc. or “AHMSI”).
Principal reductions for struggling homeowners. If your mortgage is currently held by Ocwen, you may be eligible for a reduction in your mortgage principal. The settlement allocates $2 billion towards these mortgage write downs. (For more details on the settlement, see Nolo's article Foreclosure Relief for Homeowners With Ocwen Mortgages.)
You can get information about the settlement, and what you need to do to get relief, by visiting the CFPB’s website or by contacting Ocwen at 800-337-6695. You may also send an email to ConsumerRelief@Ocwen.com.