Tennessee residents who lost their homes to foreclosure with Ocwen Loan Servicing will receive a check this month for approximately $1,100 as a part of the National Ocwen Settlement. The payments will total $2.6 million for Tennessee.
The agreement with Ocwen settled state and national findings that Ocwen engaged in servicing abuses during the height of the housing crisis, resulting in unnecessary and illegal foreclosures.
Ocwen is one of the nation’s largest loan servicers.
Over 2,000 Tennesseans will receive payments through the settlement, covering those who lost their homes to foreclosure between Jan. 1, 2009 and Dec. 31, 2012. The settlement also covers loan servicers Ocwen recently acquired including Litton Loan Servicing LP, and Homeward Residential Holdings LLC (previously known as American Home Mortgage Servicing Inc. or AHMSI).
In December, 2013, 49 state attorneys general, the District of Columbia, state mortgage regulators and the Consumer Financial Protection Bureau announced its settlement with Ocwen. In addition to payments to foreclosed borrowers, the settlement includes immediate aid to struggling homeowners in the form of loan modifications and principal reductions. The settlement also features strict new servicing rules that require Ocwen to work promptly and fairly with homeowners at risk of foreclosure.
Former Ocwen borrowers who have questions about their payments should contact the settlement call center at 866 783-5382.
For information about the Keep My Tennessee Home program or for a list of free housing counselors in your area, please visit http://www.keepmytnhome.org/ or call toll-free at 855 890-8073.