US officials order Ocwen to give $2B in relief to borrowers
The US Consumer Financial Protection Bureau and state officials on Thursday ordered Ocwen Financial to provide $2 billion in help to underwater borrowers to resolve allegations of misconduct in mortgage servicing.
The CFPB and officials from 49 states and the District of Columbia said Ocwen will reduce principal loan balances for struggling homeowners, refund $125 million to foreclosed borrowers and follow new rules to protect homeowners.
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The bureau said Ocwen, which is the largest non-bank mortgage servicer in the United States, caused borrowers to lose their homes by failing to appropriately account for payments, by not providing information about alternatives to foreclosure and by robo-signing documents.
Ocwen did not admit to the allegations, according to court documents.