Ocwen to Pay Wisconsin Consumers in Foreclosure Settlement

Ocwen reached a nationwide settlement relating to mortgage abuses in the marketplace.  The details are outlined in the below article by Paul Gores of the Milwaukee Journal Sentinel.

“Wisconsin consumers will receive more than $13 million in reductions on mortgage principal and direct cash payments as the state’s share of a settlement with a mortgage servicer accused of misconduct and violating homeowners’ rights.

In all, Ocwen Financial Corp. of Atlanta and its subsidiary, Ocwen Loan Servicing, have agreed to a $2.1 billion state-federal settlement with Wisconsin, 48 additional states and other government entities, Wisconsin Attorney General J.B. Van Hollen and the state Department of Financial Institutions said Thursday.

The settlement addresses servicing misconduct by Ocwen and two companies later acquired by Ocwen — Homeward Residential Inc. and Litton Home Servicing LP, state officials said.

Ocwen specializes in servicing high-risk mortgage loans. According to the complaint, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits.

The settlement with the nation’s fourth-largest mortgage servicer is the result of a civil law enforcement investigation and initiative that includes state attorneys general, state mortgage regulators and the federal Consumer Financial Protection Bureau. Through a court order, the settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners and stops future fraud and abuse, state officials said.

“With this settlement, we are holding another mortgage servicer accountable for unfair practices and working to make sure Wisconsin consumers are treated fairly in the future,” Van Hollen said in a statement.

In Wisconsin under the settlement, Ocwen is expected to provide troubled borrowers with an estimated $12 million in first-lien principal reductions, and 2,484 loans will be eligible to receive a cash payment. The payment amount, which depends on the number of consumers who submit valid claims, is projected to exceed $1,000.

The National Mortgage Settlement, a three-year agreement announced 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 new servicing standards, state officials said. Wisconsin consumers have reaped more than $197 million in benefits, they said.

The final agreement with Ocwen, through a consent judgment, will be filed in U.S. District Court in Washington, D.C. It will take effect upon approval by the court.

Officials said Ocwen will contact borrowers regarding principal reduction eligibility, or borrowers may contact Ocwen to see whether they qualify under terms of the settlement at (800) 337-6695 or

A settlement administrator will contact qualified borrowers regarding cash payments. Eligible consumers include those foreclosed upon by Ocwen, Litton or Homeward from 2009 to 2011.

The state Office of Consumer Protection can be reached at (800) 998-0700 or (608) 266-1852 or online at”

Help with Chase Bank Mortgages

Wisconsin State Senator Lena Taylor’s office just put out a memo regarding Chase Bank Mortgages.  It says, “1f you are currently holding a home mortgage with Chase Bank and would like information on lowering mortgage payments regardless to if you are current or behind please contact my district office at (414) 342-7176 and we willContinue Reading

A New Wave of Foreclosures is on the Way!

While it may appear the housing market has settled a bit, foreclosures have just been on a break.. The ironic thing is the break was the mortgage companies signing the settlement with the Attorney Generals across the United States.  Check out this article from our friends at Contrary to some recent rosy predictions ofContinue Reading

Principal Paydown Plan – Foreclosure Prevention?

Last month foreclosures filings for Milwaukee County were up 34%.  Foreclosures continue to be a drag on the economy.   The National Association of Consumer Bankruptcy Attorneys is petitioning the Obama Administration to adopt a plan to paydown mortgage principal under the supervision of the Bankruptcy Courts.  You can help make this happen! Please actContinue Reading

Free Foreclosure Workshop in Dane County

Our friends at Greenpath are offering a free foreclosure workshop for people in and around Dane County.  Please see the information below. What:            Foreclosure Answer Clinic – a FREE walk-in legal clinic Who:              For homeowners who have received a Foreclosure Summons and Complaint When:           11:00 am – 1:00 pm, Thursday, April 7, 2011 Where:Continue Reading

Foreclosures Still on the Rise

U.S. home foreclosures jumped 12 percent last month, but the sharp divide between states  suggests the industry remains backlogged by investigations into the foreclosure process. According to a report from real estate data firm RealtyTrac, lenders foreclosed on 78,133 properties in January, up 12 percent from the month before, but down 11 percent from JanuaryContinue Reading

Can Bankruptcy Courts Limit Homeowner and Investor Losses?

As the Eastern District of Wisconsin Bankruptcy Court rolls out its version of Mortgage Modification Mediation.  The Senate Judiciary will hold a hearing tomorrow to evaluate the effectiveness of such programs.  Among those giving testimony will be Judge Robert Drain.  He heads the Loss Mitigation Program for the Southern District of New York. The SenateContinue Reading

Milwaukee Area Attorney Three Time SuperLawyer

Attorney Edward Harness recognized for the third year in a row by SuperLawyers Magazine. Attorney Edward W. Harness has been named by Wisconsin SuperLawyers magazine as one of the top attorneys in Wisconsin for third consecutive year. Only five percent of the lawyers in the state are named by SuperLawyers. The selections for SuperLawyers areContinue Reading

Strategic Default by Homeowners

Everyday I meet with homeowners that are underwater on their mortgages. When speaking with them I discuss strategic default as a strategy for dealing with their money problems. As I explain it is an economic decision not a morale decision. It turns out the Mortgage Bankers Association recently decided to walk away from the mortgageContinue Reading

Homeowner Questionnaire Shows Banks Violating Program Rules

Homeowners seeking mortgage modification under government programs report behavior by the banks that clearly violate the rules of  the programs.  The article below details those violations. HOMEOWNER QUESTIONNAIRE SHOWS BANKS VIOLATING GOVERNMENT PROGRAM RULES! by Paul Kiel and Olga Pierce ProPublica, Aug. 16, 9:02 a.m. Homeowners share their stories: ProPublica queried 373 homeowners from acrossContinue Reading

Switch to our mobile site