Fourth largest mortgage servicer, Ocwen, to pay
relief to borrowers & follow stricter standards

INDIANAPOLIS – Ocwen Financial Corporation of Georgia and its subsidiary, Ocwen Loan Servicing, have agreed to a $2.1 billion joint state-federal settlement with Indiana Attorney General Greg Zoeller, 48 additional attorneys general, and the Consumer Financial Protection Bureau (CFPB).

The settlement terms address servicing misconduct by Ocwen, and two companies later acquired by Ocwen, Homeward Residential Inc. and Litton Home Servicing LP. Ocwen specializes in servicing high-risk mortgage loans.

Ocwen will provide $2 billion in first lien principal reduction to borrowers nationwide, including borrowers in Indiana who are projected to benefit with principal reductions worth up to $18.6 million. Additionally, 2,957 borrowers in Indiana who experienced a foreclosure sale will be eligible to receive a cash payment. The payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000.

“This settlement with the nation’s fourth largest mortgage servicer stems from a massive civil law enforcement investigation and initiative that includes state attorneys general, state mortgage regulators and the CFPB,” Zoeller said. “It’s critical for state and federal partners to work together and use the resources available to ensure borrowers are being treated fairly and mortgage servicers are held accountable.”

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

Through a court order, the settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners, and prevents future fraud and abuse. Under the settlement, Ocwen agreed to $2 billion in first-lien principal reduction, and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans.

Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, will oversee the Ocwen agreement’s implementation and compliance through the Office of Mortgage Settlement Oversight.

The National Mortgage Settlement, a three-year  agreement reached in 2012 with the attorneys general of 49 states and the District of Columbia, the federal government, and five mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo), has so far provided more than $51 billion in relief to distressed homeowners and created significant new servicing standards.

The Ocwen settlement does not grant immunity from criminal offenses and would not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases. The agreement also preserves the authority of state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases.

Ocwen Agreement Highlights

• Ocwen commits to $2 billion in first-lien principal reduction.
• Ocwen pays $125 million cash to borrowers associated with 183,984 foreclosed loans.
• Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards.
• An independent monitor will oversee implementation of the settlement to ensure compliance.
• The government can pursue civil claims outside of the agreement, and any criminal case; borrowers and investors can pursue individual, institutional or class action cases regardless of the agreement.
• Ocwen pays $2.3 million for settlement administration costs.

The final agreement, through a consent judgment, will be filed in U.S. District Court in Washington, D.C.  If approved by a judge, it will have the authority of a court order.

Because of the complexity of the mortgage market and this agreement, which will span a three year period, in some cases Ocwen will contact borrowers directly regarding principal reductions.  However, borrowers should contact Ocwen to obtain more information about principal reductions and whether they qualify under terms of this settlement.

A settlement administrator will contact qualified borrowers associated with foreclosed loans regarding cash payments. More information will be made available as the settlement programs are implemented.

For more information on the agreement visit www.IndianaConsumer.com or visitwww.CFPB.gov.

With all of the preparation that comes with decorating the house for Christmas, purchasing gifts and preparing food, it is easy to lose sight of what this season is truly about. To me, Christmas is about the blessings we have received throughout the year and sharing those blessings with others.

It is also about the hope of a new year. This Christmas, I want to highlight a local organization that is doing wonderful things to help those in need. Hope Central is a non-profit organization whose goal is to promote family education and health by offering a safe and stable place for the people of our community.

Hope Central has four divisions that meet all the basic needs of their clients: a food pantry, family resource center, diaper bank and clothing bank. Because it is Christmas, I want to give you a brief overview of each of these divisions as well as their current needs.

From August-October of this year, the Manna Market Food Pantry has assisted an average of 500 families and 1,900 individuals. Monday through Saturday, Hope Central picks up food at the local Wal-Mart to meet the physical needs of Boonville residents. Currently, they are seeking items such as pasta, cereal, paper towels, eggs, canned fruit, toilet paper and toothpaste.

While food is a short-term fix, they also provide for the long-term by offering free Life Development Classes through the family resource center. These classes are offered on a different subject each month and include things such as cooking, budgeting and fitness. They also offer pregnancy education, free prenatal vitamins and have teamed with Cribs for Kids so that no infant in Boonville must go without a safe place to sleep. Free Safe Sleep Kits are available to any family in need and include a pack-n-play, crib, sheet, sleep sack and pacifier.

Last but not least, the Grace Garments Clothing Bank offers a variety of free dress and casual clothing in all sizes. They are open on Mondays, Tuesdays and Thursdays. The clothing bank is currently in need of items such as maternity clothing, large size men’s clothing, plus size women’s clothing as well as infant and kids clothing.

As you can see, not only does Hope Central provide for the current needs to local families but they also go one step further by teaching the life skills necessary to lift individuals out of poverty. It is an all-encompassing operation which deals with the emotional, physical and spiritual needs of our community, and it is truly a blessing to have them in Boonville. If you are interested in learning more about giving back to Hope Central and would like to see a complete list of their needs, or are in need of assistance yourself, please visitwww.encounteringhopeministries.com/Home_Page.php.

Helping a local organization is just one of the many ways to give back. Many people have their own creative ways of helping others during the Christmas season. I have often heard of people paying for the meal of the person behind them in the drive-thru or covering the toll for the car behind them on the toll road.

One way that I choose to give back is with my time. Because my family is in the healthcare business, we are always on call. Each year, my daughter and I remain on call on Christmas Eve and Christmas Day so that the other employees can be with their families and not have to worry about being called away. I feel that this is the least I can do to thank them for all of the hard work they do throughout the year.

I hope this Christmas also finds you spending time with those you love, and I wish you a Christmas and New Year filled with love, laughter and good health!

 

 

The Board of Public Works had cancelled its meeting for December 26, 2013. The Board’s next meeting will be on Thursday, January 2, 2014 at 1:30 p.m. in Room 301, Civic Center Complex.

The Animal Care & Education Commission Board has cancelled its meeting on December 27, 2013. The Commimssion’s next meeting will be on Friday, January 10, 2014 at 12:00 p.m. in Room 301, Civic Center Complex.