CFPB Announces Billions in Relief to Homeowners
Following the Consumer Financial Protection Bureau's (CFPB) announcement of a settlement with Ocwen Financial Corporation, the nation's largest nonbank mortgage loan servicer, Congresswoman Maxine Waters (D-CA), top Democrat on the House Financial Services Committee, lauded the CFPB's efforts to return millions of dollars to adversely affected consumers and billions more to mitigate foreclosures. Waters also pointed out that the CFPB's authority to supervise nonbanks was included at the urging of Democratic members of the Financial Services Committee as part of the Dodd-Frank Wall Street Reform Act. CFPB entered into the settlement in partnership with state attorneys general.
She released the following statement:
"During the debate over the Dodd-Frank Wall Street Reform Act, Democrats worked hard to create the Consumer Financial Protection Bureau and pushed to give it the authority to supervise ‘nonbanks' that provide services to consumers. As a result, nonbank mortgage servicing companies like Ocwen are, for the first time, subject to rules that ensure the fair treatment of their customers. Today's announcement underscores the importance of this authority.
I'm pleased that the CFPB, in partnership with state attorneys general, is holding Ocwen accountable for consumer protection failures. Indeed, the list of transgressions against consumers is long, and includes actions such as robosigning, charging unauthorized fees, failing to provide accurate information and improperly denying loan modification requests, among many others. This settlement is a victory for those consumers who were adversely affected. It also sends a strong message to others in the industry, that consumers now have an advocate at the highest levels of government – with the power to fight for them."
The settlement will return $125 million to consumers who were subjected to these improper actions, and will require Ocwen to provide $2 billion in relief to its customers facing foreclosure through principal reduction.