TAMPA — Floridians hurt by mortgage and foreclosure abuses by Ocwen Financial Corp. will be eligible for $342 million in principal reduction as part of a nationwide settlement with the Atlanta-based firm.
Attorney General Pam Bondi, the federal Consumer Financial Protection Bureau and 48 other states and the District of Columbia announced the settlement Thursday afternoon. All told, the mortgage servicing firm has agreed to provide homeowners nationwide with first lien principal reductions of $2 billion, while also providing cash payments totaling $125 million to affected borrowers who were foreclosed upon between January 1, 2009 and Dec. 31, 2012, according to Bondi’s office.
Florida is expected to receive the largest share of the settlement. Current homeowners in Florida will be eligible for $342 million in first-lien principal reduction, while more than 26,000 foreclosed-upon homeowners will be eligible for the cash payments.
The settlement addresses alleged abuses by Ocwen and two companies acquired by Ocwen — Homeward Residential and Litton Home Servicing. The companies were accused of misconduct including premature and unauthorized foreclosures and the use of false and deceptive documents.