More than 3,400 North Carolinians who might be eligible for payments from a national mortgage settlement with Ocwen Financial Corp. should start receiving claim forms this week, Attorney General Roy Cooper’s office said Tuesday.
As part of the settlement reached with the Consumer Financial Protection Bureau and attorneys general from 49 states and the District of Columbia, Ocwen has agreed to pay $125 million to refund approximately 184,000 U.S. borrowers.
According to Cooper’s office, affected borrowers will likely receive refunds of $679 to $1,235 apiece. Payment amounts will depend on how many people submit claims by a deadline of Sept. 15, the office said.
Payment checks are expected to be mailed to borrowers in late 2014 or early 2015.
“Foreclosures can be devastating to individual families, their neighborhoods and communities,” Cooper said in a statement. “With this settlement, people who lost their homes to foreclosures done wrong can get some money back.”
Claims packages will be sent to North Carolina borrowers who lost their home to foreclosure between Jan. 1, 2009, and Dec. 31, 2012, and whose loans were serviced by Ocwen, Litton Loan Servicing and Homeward Residential Holdings, formerly known as American Home Mortgage Servicing, Cooper’s office said.
Approximately $2 billion of the national settlement is expected to be used to help borrowers avoid losing their homes to foreclosure by reducing the principal on their loans. North Carolina is receiving $26 million of the settlement for that purpose.
In addition to the Ocwen deal, North Carolina has participated in other settlements over mortgage practices.