Get breaking news alerts via email

Click here to manage your alerts
Mortgage companies ordered to pay for premature foreclosures
This is an archived article that was published on sltrib.com in 2013, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Three companies have reached a settlement with the federal government and various states over their use of robo signing in mortgages.

The three companies — Ocwen Financial Corp., Homeward Residential Inc. and Litton Home Servicing LP — used "robo-signing," among other things, to prematurely foreclose on people between 2009 and 2012, according to the Utah Department of Commerce. The companies consequently violated homeowners' rights and protections, the department reports.

"Robo-signing" is the practice of submitting foreclosure documents that were not properly reviewed or notarized.

A total of 183,985 foreclosures across the U.S. were affected by the misbehavior.

The government went after the companies, and Thursday announced that it had reached a $2.1 billion settlement. A total of 49 states, including Utah, are part of the settlement.

The settlement requires Ocwen, which acquired the two other companies, to pay $7.5 million to 1,428 troubled Utah borrowers.

The companies are also not immune to criminal prosecutions as a result of the settlement, and individual homeowners are still free to pursue their own action.

Joseph A. Smith Jr., monitor of the National Mortgage Settlement, will make sure Ocwen complies with the settlement.


Twitter: @jimmycdii

Article Tools

 Print Friendly
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.