A mainland mortgage lender will reduce loan balances of Hawaii borrowers by an estimated $24 million as part of an agreement with federal regulators and 49 states over foreclosure abuses, Hawaii 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.

Ocwen’s misconduct resulted in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including "robo-signing," according to a complaint filed in the U.S. District Court for the District of Columbia.

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. Ocwen also agreed to make cash payments to 403 Hawaii borrowers whose homes were foreclosed on between January 2009 and December 2012. The payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000 per claimant.

"What we found in the Ocwen case is similar to a lot of the problems we saw in our other mortgage servicer enforcement cases," Louie said. "This is part of our ongoing civil law enforcement effort to hold servicers, including Ocwen, accountable and ensure that they treat borrowers fairly."

In some cases, Ocwen will contact borrowers directly regarding principal reductions, according to the announcement. Borrowers also may contact Ocwen to obtain more information and inquire whether they qualify under terms of the settlement. Consumers may call Ocwen toll-free at 800-337-6695 or email their questions to ConsumerRelief@ Ocwen.com.

A settlement administrator will contact qualified borrowers associated with foreclosed loans regarding cash payments.