Ocwen Agrees to $2.1 Billion Settlement on Servicing Abuses

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Ocwen Financial Corp., the biggest non-bank in the mortgage-servicing industry, will provide $2.1 billion in relief for homeowners to resolve regulators’ claims over abuses in its handling of borrowers’ loans.

Under the agreement with the Consumer Financial Protection Bureau and 49 states, Ocwen will provide $2.1 billion for foreclosure compensation and “principal forgiveness modification programs” for people who are behind on payments or whose homes are worth less than they owe, the company said today in a regulatory filing. The Atlanta-based company will also follow specific guidelines on servicing mortgages and face independent monitoring of that work.