A mainland mortgage lender will reduce loan balances of Hawaii borrowers by $24 million as part of an agreement with federal regulators and 49 states over foreclosure abuse, state Attorney General David Louie announced Friday.
The Consumer Financial Protection Bureau and state attorneys general negotiated the deal with Atlanta-based Ocwen Financial Corp., one of 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.
Under the settlement, Ocwen agreed to $2 billion in first-lien principal reduction and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans.
In Hawaii, Ocwen will provide troubled borrowers with an estimated $24 million in first lien principal reductions, and 403 borrowers will be eligible to receive a cash payment, Louie said in a news release. The payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000 per claimant, according to the announcement.
Borrowers are advised to contact Ocwen to obtain more information about principal reductions and whether they qualify under terms of the settlement, according to the announcement.
Consumers may call Ocwen toll-free at 1-800-337-6695, or email their questions to ConsumerRelief@Ocwen.com.