Part of settlement terms Attorney General Biden secured calls for Delawareans who had mortgages serviced by Ocwen and lost home to foreclosure to receive payment
WILMINGTON – First State consumers who are eligible for a direct payment as part of the $7 million settlement Attorney General Beau Biden reached with Ocwen Financial should soon be receiving their checks, Biden announced Monday.
More than 200 Delawareans will receive checks of approximately $1,200 under the settlement, which Biden, 48 other attorneys general and the federal government reached with Ocwen in December 2013 to resolve allegations that the financial institution’s misconduct contributed to the housing crisis. The settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners, and stops future fraud and abuse.
The payments are going to Delawareans who had mortgages serviced through Ocwen or one of two subsidiaries and lost their homes to foreclosure between January 2009 and December 2013. The checks should all be in the mail by Tuesday. In addition to these direct payments, Ocwen was also required to provide financial benefits, such as principal reductions, to homeowners who still hold an Ocwen mortgage as well as make significant customer service improvements.
“Our financial system only works when everyone plays by the rules and there must be accountability when the rules are broken,” said Biden, who has secured more than $185 million for Delaware in settlements with banks whose conduct helped cause the housing crisis. “The funds we have secured in these settlements provide financial benefits to consumers as well as resources to strengthen communities harmed during the housing crisis.”
Ocwen specialized in servicing high-risk mortgage loans. Ocwen’s 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 customers eligible for the payments should already have been contacted. Consumers can contact Ocwen at 1-800-337-6695 or ConsumerRelief@Ocwen.com. Borrowers having difficulty contacting Ocwen or who have questions should contact Biden’s office by calling the Attorney General’s Office of Foreclosure Prevention at 1-800-220-5424.