Ocwen settles decade-long suit over BPO, hybrid valuation fees

GettyImages 1070425794 1024x576

GettyImages 1070425794 1024x576

Loan servicing giant Ocwen has agreed to pay refunds to homeowners who were overcharged for default-related services, including broker price opinions and hybrid valuations. The settlement could amount to tens of millions of dollars. Ocwen denies the allegations but has agreed to the terms of the settlement.

If approved by the court, as many as 330,377 homeowners who made payments to Ocwen between 2010 and 2017 may be eligible for refunds. The deadline to submit a claim is September 29, 2025, and the deadline to request exclusion from the case is July 12, 2024.

The settlement requires Ocwen to disclose markups charged by vendors for BPOs and hybrid valuations. The settlement administrator will make efforts to locate and notify class members about the claims process.

Ocwen has faced legal issues in the past, including providing principal reductions and refunds to borrowers to settle allegations of violating consumer protection laws. The settlement aims to provide compensation to affected homeowners and ensure transparency in future transactions.

Loan servicing giant Ocwen has agreed to pay potentially tens of millions of dollars in refunds to homeowners who were overcharged for default-related services, such as broker price opinions and hybrid valuations. The complaint alleged that Ocwen charged undisclosed mark-ups on these services to generate revenue. Homeowners who made mortgage payments to Ocwen between 2010 and 2017 may be eligible for refunds of $60 per BPO and $70 per hybrid valuation. The settlement is still subject to court approval, and homeowners have until September 29, 2025, to submit a claim. The settlement also requires Ocwen to disclose markups charged by vendors in the future. The settlement administrator will notify eligible class members and facilitate the claims process. The legal issues arise from the aftermath of the Great Recession, with Ocwen previously settling allegations of violating consumer protection laws and putting homeowners at risk of foreclosure.

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