California Attorney General Kamala D. Harris announced Thursday a $2.1 billion multistate and federal settlement with Ocwen Financial Corporation and Ocwen Loan Servicing over alleged mortgage servicing misconduct.
That means California homeowners with Ocwen-held mortgages could receive up to $268 million in principal loan reductions or nearly $23 million in cash payments under the settlement.
Fresno County homeowners are estimated to receive up to $7.2 million.
“This settlement will help homeowners who’ve been misled while trying to modify their Ocwen mortgages,” Harris said.
Ocwen was accused of failing to promptly credit mortgage payments, miscalculating interest rates and charging borrowers improper fees.
The company holds nearly 390,000 loans in California, 12% of which are underwater meaning mortgage holders owe more than the loan.
For more information about the settlement, email ConsumerRelief@Ocwen.com or call (800) 337-6695.