Ocwen Financial Agrees to $8,950,000 Settlement for Overcharging Borrowers

Ocwen Financial, now operating its business under the name Onity Group, has agreed to pay $8,950,000 to settle a class action lawsuit for alleged over-charging borrowers for certain property valuation expenses. These expenses include Broker Price Opinions (BPOs) and Hybrid Valuations (Hybrids), which allegedly contained undisclosed mark-ups. This settlement benefits individuals who had loans serviced by Ocwen and paid for these services between November 5, 2010, and September 29, 2017.

Who Benefits?

All residents of the United States who have or had a loan serviced by Ocwen and paid for one or more BPOs or Hybrids charged by Ocwen through Altisource during the specified period.

How much can I get?

Class members can receive $60 for each BPO fee and $70 for each Hybrid fee paid during the class period.

Important Dates

• Deadline to File a Claim: Claims must be submitted electronically or postmarked by September 29, 2025.
• Final Approval Hearing Date: September 5, 2024

Can I Claim an Award?

The Settlement Class consists of all residents of the United States who have or had a loan serviced by Ocwen and who paid for one or more BPOs or Hybrids charged by Ocwen through Altisource from November 5, 2010, through September 29, 2017. This includes individuals who paid these fees directly or had them assessed to their mortgage accounts.

Specifically, the Settlement Class includes:

• Nationwide Settlement Class: All U.S. residents who have or had a loan serviced by Ocwen and paid for one or more BPOs or Hybrids charged by Ocwen through Altisource during the class period.
• California Settlement Sub-Class: All California residents who have or had a loan serviced by Ocwen and had charges for one or more BPOs or Hybrids assessed to their mortgage account by Ocwen through Altisource during the class period.

Who is Excluded?

Excluded from the Settlement Class are Defendants’ officers, directors, and employees; Defendants’ affiliates and affiliates’ officers, directors, and employees; Defendants’ distributors and distributors’ officers, directors, and employees; Released Parties; judicial officers and their immediate family members and associated court staff assigned to this case; and all those otherwise in the Settlement Class who or which timely and properly exclude themselves from the Settlement Class.

What Awards Can Class Members Claim?

If approved, the Settlement will provide compensation and other valuable benefits to Settlement Class Members. These benefits include:

• A $60 reimbursement for each BPO fee that Settlement Class Members paid during the class period.
• A $70 reimbursement for each Hybrid fee that Settlement Class Members paid during the class period.
• Reversals and/or credits for any California “Assessed” Sub-Class Members who continue to have loans serviced by Ocwen, in the amount of $60 for each BPO and $70 for each Hybrid fee that was assessed to the Member during the class period but for which the Class Member has not paid.
• Defendants’ modification of disclosures to borrowers in valuation-related correspondence and reports, and in any applicable fee schedules, to identify, as applicable, the “reconciliation” service added by vendors to BPO and Hybrid products.

Which Property Valuation Services are Included?

The settlement addresses the alleged over-charging for property valuation services, specifically:

• Broker Price Opinions (BPOs)
• Hybrid Valuations (Hybrids)

Is Proof Required to Claim the Reward?

To submit a claim, you may need to provide documentation that identifies your specific home loan for which Ocwen provided services. If you received a Postcard or Email Notice and provide your Unique ID from that notice, you will not need to provide any documentation when you submit your claim. If you do not have a Unique ID, or if the Settlement Administrator is unable to verify the information in your claim, the Settlement Administrator may request supporting documentation.

How to Claim Your Award

To claim your award, you must submit a valid claim by visiting . The Claim Form asks for basic information and takes just a few minutes to complete.

If you would prefer to submit your Claim Form by mail, you can download and print the necessary forms from the Settlement Website or request a hardcopy form to be mailed to you by calling 1-888-995-0316 or emailing info@OcwenFeeSettlement.com. For faster claims processing, you may submit your claim online.

$8,950,000 Settlement Fund

The settlement amount is $8,950,000. This amount is intended to cover reimbursements for BPO and Hybrid fees paid by class members, as well as attorneys’ fees and other costs associated with the settlement.

Settlement Class Counsel will request reasonable attorneys’ fees, estimated to be $8,000,000, plus reasonable reimbursable litigation costs, estimated to be $950,000. If approved by the Court, the attorneys’ fees and costs will be paid by the Defendants.

Why is There a Class Action Settlement?

The lawsuit, David Weiner v. Ocwen Financial Corporation, et al., No. 2:14-cv-02597-DJC-DB, alleges that Ocwen over-charged borrowers for certain property valuation expenses, including BPOs and Hybrids, which allegedly contained undisclosed mark-ups. Ocwen denies Plaintiff’s allegations and all alleged wrongdoing associated with Plaintiff’s claims. The Court has not decided who is right or wrong. Instead, the Parties have agreed to the Settlement to avoid the costs, risk, and delays associated with continuing this complex and time-consuming litigation.

As of the date of publication, the next steps include the Final Approval Hearing scheduled for September 5, 2024, where the Court will consider whether to give final approval to the Settlement and grant Settlement Class Counsel’s request for attorneys’ fees and costs, as well as reimbursement for Settlement Administration Costs.