Ocwen is known for shady business practices that have resulted in people spending thousands of dollars on unnecessary insurance policies, getting incorrect late marks on their credit, and even losing their homes. As a mortgage lender, Ocwen is the worst and now they may finally be facing the music.

Reichman v. Ocwen Loan Servicing, LLC et al. – Class Action Against Ocwen

A class action lawsuit was filed in Florida against Ocwen Loan Servicing, LLC, Experian and Trans Union for violating the Fair Credit Reporting Act and the Real Estate Settlement Procedures Act.

What is the FCRA and RESPA?

The Fair Credit Reporting Act (FCRA) is a law designed to make sure that creditors (like mortgage lenders) and the credit bureaus do not report any inaccurate information to your credit report. The law creates a way for you (consumers) to dispute false information and to have things taken off a credit report, either by disputing them or because the time for reporting them has run out.  So, if a creditor reports something falsely and refuse to fix it, they are violating the FCRA.

The Real Estate Settlement Procedures Act (RESPA) gives rules that mortgage lenders need to follow. This applies to things like the disclosures they are supposed to give you (consumers) before initiating and closing a loan. In other words – a mortgage lender can’t just do whatever they want. They have to tell you what they are going to do and get your approval as part of the loan initiation and closing. If a lender doesn’t disclose things properly they can be in violation.

Ocwen, Experian and Trans Union Violated the FCRA and RESPA

According to the plaintiff (the person who filed the lawsuit), Ocwen, Experian and Trans Union Violated the FCRA and RESPA. The violations include –

• Ocwen refusing and returning payments
• Ocwen claiming that the property didn’t have proper insurance
• Ocwen force-placing its own insurance on the property without the plaintiffs consent
• Ocwen returning payments and then reporting payments were delinquent to the credit bureaus
• Experian and Trans Union failed to investigate her claims

“According to the case, the plaintiff attempted to get in touch with Ocwen on numerous occasions but received “no specific answer as to why the current insurance from the condominium association was insufficient,” nor an answer concerning why her mortgage payments were no longer accepted. Even with attorney involvement, the plaintiff says, Ocwen remained silent.”

Ocwen reported her payments delinquent for nearly a year (even though she sent her payments in!).

Ocwen tried to foreclose on her home

This homeowner (the plaintiff) got a mortgage from Ocwen, made payments like she was supposed to and they still tried to foreclose on her.

Why?

Because they are dishonest. Plain and simple.

They claimed that she did not have the right insurance and used that to not accept her mortgage payments.

They also placed their own insurance on the property and forced her to pay for it – something Ocwen is notorious for. It’s a way that they make more money and it’s shady.

Ocwen deserves to be sued and you may be able to join the class action.

Has any of this happened to you? Did Ocwen try to take your home or threaten foreclosure? Did Ocwen refuse to take your payments or put forced insurance on your property?

If so, you may be able to sue. Visit ocwencomplaints.com

References https://www.classaction.org/news/ocwen-experian-trans-union-facing-class-action-over-alleged-forced-placed-insurance