Consumer News

AG Schmidt: More Kansas homeowners to benefit from new mortgage settlement

TOPEKA – (December 19, 2013) – More Kansas homeowners will receive relief after a settlement with mortgage servicer Ocwen Financial Corporation, Kansas Attorney General Derek Schmidt announced today.

“We continue to seek help for Kansas homeowners harmed by improper conduct during the financial crisis,” Schmidt said. “This settlement is the latest in our ongoing efforts to protect Kansas consumers.”

The settlement terms address servicing misconduct by Ocwen and by two companies later acquired by Ocwen: Homeward Residential Inc. and Litton Home Servicing LP. Ocwen specializes in servicing high-risk mortgage loans. According to a complaint filed in the U.S. District Court for the District of Columbia, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including “robo-signing.”

Ocwen, the nation’s fourth-largest mortgage servicer, settled the allegations with Kansas, 48 other states, the District of Columbia and the federal government.

In Kansas, more than 900 homeowners who were foreclosed upon by Ocwen will be eligible for cash payments. Additional consumers may be eligible for principal reductions. Compliance with the settlement will be overseen by the National Mortgage Settlement monitor Joseph A. Smith, Jr. Consumers who are eligible for the cash payments will be contacted by the settlement administrator but may also contact Ocwen directly for more information. Current borrowers whose loans are serviced by Ocwen should call 1-800-337-6695 or email ConsumerRelief@Ocwen.com.

More information on this settlement and the National Mortgage Settlement is available on the Attorney General’s Consumer Protection website at www.InYourCornerKansas.org.