Utah to receive portion of $2.1 billion mortgage finance settlement
Chris O'Meara, AP
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.
— Jasen Lee
- LDS missionary critically injured in Oklahoma...
- Salt Lake officer captured Dillon Taylor...
- Utah County teen made 'swatting' threats...
- Odyssey Elementary opens doors for...
- Stranger donates vehicle to Bountiful...
- Lunch manager on leave after diabetic student...
- Tips lead police to arrest of public enemy No. 1
- North Ogden woman sent to prison in...
- Poll: Utahns willing to fight for... 58
- Utah argues for more time to file... 41
- Utah claims top ACT scores for second year 34
- Government regulation has become like... 31
- Lunch manager on leave after diabetic... 28
- State asks for more time to file appeal... 24
- Poll: Majority of Utahns in favor of... 22
- Jay Evensen: Is Provo really an... 22