Ocwen Settlement – Frequently Asked Questions
Who do I contact if I have questions about the payment check its contents, and/or validity?
The State of California Department of Financial Protection and Innovation (Department) hired an independent contractor, Rust Consulting, Inc., to assist in the administration of the Ocwen settlement regarding payments checks to California borrowers.
The payment checks from the Department list a Utah address.
If you wish to speak with someone about the check status, its contents, and/or validity, please contact us at 1-866-216-0265, or email: info@CalMortgageRelief.com.
Why did I receive a postcard?
The State of California Department of Financial Protection and Innovation has reached an agreement with Ocwen Loan Servicing, LLC, regarding its mortgage servicing practices. You received a postcard if you were identified as an eligible borrower under the settlement. Ocwen Loan Servicing was ordered to pay compensation to California borrowers whose loans were serviced by Ocwen from January 2012 through October 2014. The settlement required Ocwen to pay the compensation to customers harmed by its alleged violation of mortgage servicing laws. The settlement was between the California Commissioner of the Department of Financial Protection and Innovation, and Ocwen.
What is the settlement about?
In January 2013, the Commissioner began a routine regulatory examination of Ocwen Loan Servicing to ensure the company’s compliance with the California Homeowner Bill of Rights and other state and federal laws. The examination found numerous alleged violations. The Department of Financial Protection and Innovation executed a settlement with Ocwen on February 17, 2017.
What does the settlement provide?
Under the terms of the settlement, Ocwen Loan Servicing will provide a borrower relief package with a total value of Two Hundred Twenty-Five Million Dollars. This amount consists of the following:
A cash payment of Twenty-Five Million Dollars in compensation to borrowers;
Debt forgiveness of One Hundred Ninety-Eight Million Dollars through loan modifications on first lien and second lien residential mortgage loans to California borrowers over a three-year period starting July 1, 2016 and ending on June 30, 2019;
A cash payment of Two Million Dollars allocated among approximately 3,127 California borrowers pursuant to previously submitted claim forms as part of Ocwen’s voluntary program to compensate borrowers harmed by Ocwen’s delay in sending time-sensitive letters; and
A cash payment for any remaining balance shortfall (after deducting the items previously listed) that may exist at the end of the three-year period ending June 30, 2019.
Who is eligible to receive restitution?
The restitution class consists of all Eligible California borrowers whose loans Ocwen Loan Servicing serviced from January 2012 through June 2015. An Eligible California borrower is a borrower where:
All accounts in the state of California with a first legal action filed by Ocwen between January 1, 2012 and June 30, 2015;
All accounts in the state of California with a foreclosure sale completed between January 1, 2012 and June 30, 2015;
All accounts in the state of California where at least one Private Mortgage Insurance (PMI) or Mortgage Insurance (MI) premium was due between January 1, 2012 and June 30, 2015;
All accounts in the state of California where at least one Private Mortgage Insurance (PMI) or Mortgage Insurance (MI) premium was due between January 1, 2012 and June 30, 2015 & where the account has been modified at least once between January 1, 2012 and September 6, 2017;
All accounts in the state of California where the borrower had full SCRA protections in place at any time between January 1, 2012 and June 30, 2015; and/or
All accounts in the state of California where force-placed flood insurance was in effect at any time between January 1, 2012 and June 30, 2015.
What do I need to do to receive a payment?
You do not need to take any action to receive a payment, if you are eligible to receive a payment under the settlement. Please ensure we have your current address, and be sure to keep in touch with us if you plan on moving.
When will I receive my payment?
All payments should be mailed by the end of July 2018.
How will payment amounts be determined?
Borrowers who meet the eligibility criteria will have their payment amounts determined under the State of California Department of Financial Protection and Innovation’s direction. We do not have information on the amount of the payments.
If my name is only on the title of the property/other documents, am I included?
Only those individuals who are listed as borrowers, according to the records provided by Ocwen, are covered by the settlement.