Ocwen, the largest non-bank servicer, is under scrutiny for its misconduct during the mortgage servicing process. The consumer Financial Protection Bureau, and state regulators, together proposed a court order requiring Ocwen to provide $2.1 billion to principal reductions on loan modifications.
On Feb. 26, Ocwen entered a consent judgment agreement with the U.S. District court for the District of Columbia.
The final agreement supports the loan modification program that is meant to assist borrowers with underwater mortgages who are at imminent risk of defaulting, throughout the course of the next three years. Additionally, the agreement places restrictions on their administrative costs and higher regulatory scrutiny on their process.
Seeing as Ocwen is one of the many servicers that have been in the news lately, it’s great to see that the government is further regulating how and where they apply their funds. The government is making huge efforts to help homeowners avert foreclosure by making alternatives more readily available.
If you’re having trouble making your mortgage payments, it’s possible to find a solution prior to the bank filing foreclosure. If you want to avoid foreclosure, but don’t know where begin, schedule a free consultation with our foreclosure defense attorneys, we can help.