Ocwen Loan Servicing Fees Settlement

Borrowers who had an Ocwen-serviced loan and were charged for BPOs or hybrid valuations by Altisource between November 2010 and September 2017.

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A class action lawsuit against Ocwen Loan Servicing, also known as PHH Mortgage and Liberty Reverse Mortgage, has been settled to address claims of inflated fees for property valuations.

The lawsuit, filed by David Weiner on behalf of borrowers, alleged that Ocwen charged excessive fees for Broker Price Opinions (BPOs) and Hybrid Valuations by adding undisclosed markups. Ocwen denied any wrongdoing, but both parties agreed to a settlement to avoid the costs and delays of a lengthy court battle.

The settlement applies to borrowers who had their loans serviced by Ocwen between November 5, 2010, and September 29, 2017, and who were charged for one or more BPOs or hybrid valuations obtained through Altisource. Additionally, a separate subclass within the settlement applies to California residents who meet the same criteria but may not have paid the assessed fees.

This settlement offers relief to borrowers who may have been overcharged for property valuations by Ocwen and avoids a potentially lengthy and expensive court case. While the total settlement amount remains undisclosed, individual class members can expect to receive compensation.

Specifically, borrowers can receive $60 for each BPO fee they paid and $70 for each hybrid valuation fee. California subclass members who did not pay the fees may receive reversals or credits for the same amounts.

The settlement also includes a commitment from Ocwen to improve its disclosures regarding the fees associated with BPOs and hybrid valuations, providing consumers with clearer information in the future.

Borrowers who believe they are eligible for compensation should review the settlement details for claiming their portion of the settlement.