Ocwen Financial Corp. (NYSE: OCN), the fourth-largest mortgage servicer in the U.S., has agreed to pay $3.7 million to end a Massachusetts mortgage lawsuit claiming the company didn’t give homeowners required notices and illegally foreclosed on properties, Bloomberg News reports.
The deal gives homeowners $3 million of the settlement, with the balance going to the state, Attorney General Martha Coakley said in a statement Monday.
“This agreement provides for direct relief for affected borrowers and requires that Ocwen undertake efforts to repair problem titles in the Commonwealth,” Coakley said.
The Massachusetts settlement follows last year’s accord with regulators in which Ocwen agreed to provide $2.1 billion in relief to homeowners to settle claims over abuses in its handling of borrowers’ loans.
“Massachusetts claimed Ocwen broke state laws by failing to send notices to homeowners whose loans were in default and to execute and file public notices when mortgages were assigned to other parties,” Bloomberg says of last year’s settlement.
The company is also being investigated by New York Department of Financial Services Superintendent Benjamin Lawsky, who has expressed concern regarding potential “conflicts of interest” with other public companies Ocwen is affiliated with.
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Written by Emily Study