Ocwen Financial Corp. will provide over $2 billion in relief to homeowners to settle regulators’ claims over mortgage-servicing abuses, the Atlanta-based company said Thursday in a regulatory filing.
Under the agreement with the Consumer Financial Protection Bureau and state regulators, Ocwen will spend the money on “principal forgiveness modification programs” for borrowers who are behind on payments or whose homes are worth less than they owe, according to the filing. The company will also follow specific guidelines on servicing mortgages and face independent monitoring of that work.
Mortgage-servicing banks including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. reached a similar agreement worth $25 billion, with 49 states last year.
Under its agreement, Ocwen will provide the $2 billion over three years, according to the filing. It will also pay $127 million into a “consumer relief fund” to be disbursed by an independent administrator.