OCWEN TO provide $2 billion in principal forgiveness relief to homeowners throughout the next three years as part of a settlement agreement.

“The Consumer Financial Protection Bureau “CFPB” has ordered Ocwen Financial Corporation (NYSE:OCN) to provide $2 billion in principal forgiveness relief to homeowners throughout the next three years as part of a larger settlement agreement.

OCWEN mistreated consumers and committed systemic misconduct at every stage of the mortgage servicing process, according to the Bureau.

The mortgage servicer announced on Thursday a settlement agreement with the CFPB and state officials resolving allegations it mistreated consumers and committed “systemic misconduct at every stage of the mortgage servicing process,” according to the Bureau.”

View the OCWEN consent order.

OCWEN was created in the late 1980s for the purpose of purchasing defaulted loans.  At that time their intent was to foreclose and normally become the owner of the property.

I can personally attest that they were horrible for the borrower to deal with.  Fast forward 25+ years and they are still abusing consumers.  Gee, what a surprise!!  As to the settlement – will they pay the $2 billion?  Given the history of the fines imposed on the other large lenders I am not holding my breath.  What are the chances of the settlement funds reaching those who were damaged?  Based on the Bank of America, et al, settlements some of those abused borrowers may receive a few dollars.  But, those funds are more of an insult for the pain and suffering the lenders force the borrowers to endure.

Do I sound impassioned about this issue?  Most definitely.   On a daily basis I hear about the damage done by these greedy lenders and servicers.  Will the borrowers ever recover emotionally?  We can only hope so.

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Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

About Diane Drain:

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

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