Residents of the state of Florida are now one step closer to receiving settlement checks from Ocwen Financial Services (OCN), as claim forms have been sent to more than 26,000 Florida residents who lost their homes due to “mortgage servicing misconduct and foreclosure abuse,” according to Florida Attorney General Pam Bondi.
In December, Ocwen agreed to a $2.1 billion settlement that stemmed from a Consumer Financial Protection Bureau investigation into its servicing practices.
As part of that settlement, the company agreed to pay $125 million to homeowners who had their homes foreclosed on by Ocwen from January 1, 2009 to December 31, 2012.
"Deceptions and shortcuts in mortgage servicing will not be tolerated," said CFPB Director Richard Cordray said at the time. "Ocwen took advantage of borrowers at every stage of the process. Today’s action sends a clear message that we will be vigilant about making sure that consumers are treated with the respect, dignity, and fairness they deserve."
Nationally, there were an estimated 183,984 loans foreclosed on by Ocwen during that time. Florida’s share was the second highest in the county with more than 26,000 borrowers affected. Floridians are eligible to receive $17.8 million of the $125 million set aside for homeowners.
According to Bondi’s office, the payment to individual claimants will depend on the number of claims filed but is projected to exceed $1,000. Packages including a claim form and instructions have begun to be mailed out to Florida’s eligible borrowers.
“This settlement fund provides Floridians who lost their homes to foreclosure some financial relief for mortgage servicing misconduct and foreclosure abuse,” Bondi said. “I strongly encourage all eligible Floridians to submit claim forms by the Sept. 15 deadline.”
Payment checks will be mailed to the claimants beginning in early December.