Banking & Finance, Law, and Real Estate

Homeowners in line for $21M after loan-abuse settlement

December 20, 2013
| By AP |
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LANSING — Attorney General Bill Schuette said Michigan residents are in line for more than $21 million in compensation from a finance company as part of a $2-billion settlement of foreclosure abuse complaints.

Atlanta-based Ocwen Financial Corp. will reduce struggling borrowers' loan balances by $2 billion, in an agreement with federal regulators and 49 states.

The Consumer Financial Protection Bureau and state attorney generals announced the deal Thursday with the company, among the largest U.S. mortgage servicers.

The regulators said Ocwen pushed borrowers into foreclosure through illegal actions, such as failing to promptly and accurately credit mortgage payments.

Schuette said Michigan residents should get $21 million in first lien principal reductions.

He said at least 8,000 Michigan homeowners who went through foreclosure will be eligible to receive a cash payment.

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