The state of Michigan has reached a consent agreement with Ocwen Loan Servicing, LLC.
The agreement calls for Ocwen to correct mistakes it made in the escrow review process. They also have to pay restitution to any customers harmed by the company's failure to handle mortgage payments properly.
Ocwen is also required to hire a third party firm to audit escrow accounts in high-risk areas of the portfolio. The audit is to determine if problems still exist in the management of escrow accounts and to identify the cause of the issues.
Ocwen's practices first came to light in 2014, when the WZZM 13 Watchdog team documented problems in the company like lost documents and improper late fees.
The company reported that as of June 30, 2017 they serviced more than 42,000 mortgages in Michigan with a total principal over $3.8 billion.
The full consent agreement can be found here on the state of Michigan website.
►Make it easy to keep up to date with more stories like this. Download the WZZM 13 app now.