UNDATED (WSAU-Wheeler News) More Wisconsinites who had their homes foreclosed upon during the Great Recession will get compensated for abusive lending practices. Ocwen Financial of Atlanta reached a two-point-one billion dollar settlement yesterday in lawsuits filed by Wisconsin, 48 other states, and other entities. Attorney General J-B Van Hollen and the state Financial Institutions' department said homeowners in the Badger State would share in over $13-million. Once a federal judge approves the settlement, an administrator will notify those eligible for compensation.
Ocwen specializes in high-risk mortgage loans. The firm is expected to provide 12-million in mortgage principal reductions -- and almost 2,500 customers are expected to get over $1,000 each by filing valid claims.
The lawsuit accused Ocwen, Homeward Residential, and Litton Home Servicing of carrying out unauthorized and premature foreclosures, filing deceptive legal documents, and violating homeowners' legal protections. Payments will go to customers of those three firms who had foreclosures between 2009-and-'11. Van Hollen said Wisconsin is making another mortgage server accountable for unfair practices, while making them treat people fairly in the future. Five other lenders reached a similar settlement last year. State officials say it has provided over $51-billion of relief to distressed homeowners.