If you have ever had a mortgage serviced by Ocwen Financial Corp or Litton Loan Servicing, you may be eligible for a refund. A significant legal settlement has been reached regarding Broker Price Opinion (BPO) fees that were charged to borrowers. This settlement aims to resolve claims that these fees were marked up or handled inappropriately during the servicing of home loans.
Understanding your rights in a class action settlement can be confusing, but it is essential for ensuring you receive the compensation you are owed. This guide will walk you through the details of the Ocwen fee settlement, explain who is eligible to participate, and provide clear instructions on how to file your claim or check your status.
What Is the Ocwen BPO Fee Settlement?
The settlement stems from a long-running lawsuit involving Ocwen Financial Corp. and its subsidiaries. The core of the dispute involves Broker Price Opinions, which are valuations of a property performed by a real estate broker rather than a full appraisal. Plaintiffs alleged that Ocwen charged borrowers more for these valuations than the actual cost of the service.
While Ocwen has denied any wrongdoing, they have agreed to a settlement to avoid the continued costs and uncertainties of litigation. This agreement provides a multi-million dollar fund to reimburse affected borrowers for a portion of the fees they paid. For most individuals, the refund amounts typically range between $60 and $70 per eligible fee, though the exact amount depends on the total number of valid claims filed.
Who Is Eligible for a Refund?
Not everyone with an Ocwen-serviced loan is part of this settlement. Eligibility is specifically tied to the timing of the fees and the entities involved in servicing the loan. You are likely a member of the settlement class if you meet the following criteria:
- Your mortgage was serviced by Ocwen Financial Corp., PHH Mortgage Corporation, or Litton Loan Servicing.
- You were charged one or more Broker Price Opinion fees during a specific window of time (often spanning back a decade or more).
- You actually paid the fee in question, rather than it just being assessed but later waived.
Most eligible borrowers should have received a notice in the mail. This notice usually contains a Unique ID and a PIN, which are necessary to access the online filing portal quickly. If you did not receive a notice but believe you are eligible, you can still submit a claim for review by the settlement administrator.
How to Submit Your Claim
Filing a claim is a straightforward process that can be completed online or through the mail. To ensure your submission is processed correctly, follow these steps carefully:
1. Locate Your Notice
Check your mail for a formal class action notice. This document is the key to a fast filing process. It contains the login credentials needed to access your specific account details on the settlement website.
2. Visit the Official Settlement Portal
Access the dedicated settlement website. Once there, look for the “Submit a Claim” section. You will be prompted to enter your Unique ID and PIN. This will automatically populate your information, making the process much faster.
3. Provide Updated Information
If you have moved since your mortgage was active, ensure you provide your current mailing address. This is critical because settlement checks are often sent via physical mail. You may also have the option to select an electronic payment method, such as Zelle or PayPal.
4. Review and Sign
Before submitting, review all the information for accuracy. You will be asked to sign the claim form electronically, certifying under penalty of perjury that the information is true and that you are the rightful claimant.
Important Deadlines to Track
In any class action settlement, timing is everything. Missing a deadline can result in the permanent loss of your right to claim a refund or to object to the settlement terms. Keep the following dates in mind:
- Claim Filing Deadline: This is the last day you can submit your form to be eligible for payment. Forms submitted after this date are generally rejected.
- Exclusion Deadline: If you wish to sue Ocwen individually for these same issues, you must “opt out” or exclude yourself by this date. If you do nothing, you stay in the class and give up your right to sue separately.
- Objection Deadline: If you disagree with the terms of the settlement, you must file a formal objection by this date for the court to consider your concerns.
- Final Approval Hearing: This is the date the court decides whether to officially approve the settlement. Payments are typically not distributed until after this hearing and after any potential appeals are resolved.
Checking Your Claim Status
After you have submitted your claim, you may want to check on its progress. The settlement administrator typically provides a status check tool on the official website. By entering your claim number or your Unique ID, you can see if your claim has been received, if it is under review, or if it has been approved for payment.
Be patient during this process. Class action settlements involving thousands of people can take months or even over a year to reach the distribution phase. The administrator must verify every claim to ensure there is no fraud and that the fund is distributed fairly among all eligible participants.
Avoiding Scams and Fraud
Whenever a large settlement is announced, scammers often try to take advantage of the situation. It is important to protect your personal information and your money. Keep these safety tips in mind:
- Never pay to file a claim: Filing for a class action settlement is always free. If a website asks for a processing fee or a “cut” of your refund upfront, it is a scam.
- Use the official website: Only provide information through the official portal established by the court-appointed administrator. Avoid clicking links in unsolicited emails that look suspicious.
- Protect your Social Security Number: In most cases, the settlement administrator already has the necessary tax information or will only ask for it in specific, secure circumstances. Be wary of any site that asks for your full SSN immediately upon entry.
Conclusion
The Ocwen BPO fee settlement is a significant opportunity for borrowers to recover costs associated with disputed valuation fees. By taking a few minutes to locate your notice and file a claim, you can ensure that you receive your portion of the settlement fund. Remember to keep a copy of your confirmation number and stay informed about the final approval hearing date.
If you found this guide helpful, consider exploring our other articles on managing mortgage issues and understanding your rights as a consumer. Staying informed is the best way to protect your financial well-being and ensure you never miss out on the benefits you are entitled to receive.