Ocwen Financial has agreed to refund Maine residents for pursuing foreclosures in an unlawful manner, as deemed by the state. The Maine Bureau of Consumer Protection found that Ocwen Loan Servicing initiated foreclosures on legally inaccurate paperwork.
"The loans in question were part of a portfolio of mortgage servicing rights that Ocwen purchased from Aegis Mortgage, which was mired in bankruptcy proceedings at the time. According to the consent agreement, the Power of Attorney over the loans that were in the Aegis portfolio ceased to exist when the entity was dissolved in November 2012," according to HousingWire.
"But in 2014, Ocwen filed foreclosure notices against a number of Maine borrowers on behalf of Aegis Lending and Aegis Funding as its 'Attorney in Fact,' when in reality Aegis Mortgage and all of its subsidiaries were already defunct, which also meant that any of its claims also ceased to exist."
The report claims that regulators did bring this to the attention of the company, however, Ocwen continued the filings in 2019 and claimed that it inadvertently done through company error.
"For its part, Ocwen said the settlement is not an admittance of wrongdoing, and insisted that the company had a sound legal basis for using Power of Attorney in the foreclosure actions," according to HW.
To learn more about this legal battle, click on the image above.