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Utah to share in $2.1B mortgage finance settlement

Utah to share in $2.1B mortgage finance settlement

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SALT LAKE CITY — The Utah Department of Commerce announced Thursday that the Utah Division of Consumer Protection has signed onto a $2.1 billion joint state-federal settlement agreement with Ocwen Financial Corp.

The settlement targets “robo-signing” and other loan servicing misconduct in 183,985 foreclosures between 2009 and 2012 by Ocwen, and two companies later acquired by Ocwen — Homeward Residential Inc. and Litton Home Servicing.

Ocwen will provide troubled Utah borrowers with $7.5 million in first lien principal reductions, in which 1,428 loans are eligible to receive cash payments.

According to a complaint filed in the U.S. District Court for the District of Columbia, misconduct among the three companies 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.”

The court order states that Ocwen must adopt stricter standards and is accountable for past mortgage servicing and foreclosure abuses.

Ocwen must also provide relief to homeowners and pay $2.3 million in settlement administration costs.

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Jasen Lee

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