MADISON, Wis. (WSAU) -- State and federal officials have reached a settlement of $2.1 billion with an Atlanta-based mortgage company.
The nationwide settlement is against Ocwen Loan Servicing, a company attorneys general across the country say engaged in the same sorts of practices that other major lending institutions were accused of in the housing crisis. According to federal prosecutors, Ocwen took part in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including “robo-signing.”
Assistant Attorney General Holly Pomraning says they have evidence against both Ocwen and the companies they bought out after the crisis. "They did investigate Ocwen and they did find some of these practices were going on, but we're also holding Ocwen accountable for the companies it acquired." The settlement money will both pay off parts of loans as well as compensate people who had their homes improperly foreclosed.
Pomraning says they'll be contacting people who can get loan reductions under the settlement. "Eligible borrowers will have to fill out a claim form and send it back to the payment administrator to get their piece of that settlement." Wisconsin is getting around $12 million out of the settlement, and 2,484 homeowners will be eligible for payments.
The final agreement will have to be approved at the U.S. District Court in Washington, D.C. It will take effect upon approval by the court.