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Ocwen Loan Servicing Alleged to Violate Real Estate Settlement Laws

This class action alleges that Ocwen Loan Servicing failed to present to county recorders, in a timely manner, proof that mortgages have been satisfied.

The lawsuit encompasses two classes.

  • The first, for violations of Pennsylvania’s Mortgage Satisfaction Act, includes all persons who had mortgage loans serviced by Ocwen and secured by real estate in Pennsylvania who timely paid in full all amounts due and requested in writing that Ocwen record a satisfaction of mortgage with the county recorder’s office, but where Ocwen failed to do so within sixty days of receipt of the request.
  • The second, for violations of the federal Real Estate Settlement Procedures Act, includes all persons who had mortgage loans serviced by Ocwen and secured by real estate in Pennsylvania, who timely paid in full all amounts due on their mortgages and submitted to Ocwen a qualified written request (QWR) asking that Ocwen record a satisfaction of mortgage with the county recorder’s office, but where Ocwen failed to do so within sixty days of receipt of the QWR, and who suffered damages as a result.

According to the complaint, the lack of a proof of mortgage satisfaction can be a problem for owners who need to complete a sale or refinancing of a property. This is because title companies cannot provide a clear title report if the mortgages remain “open”.

Pennsylvania’s Mortgage Satisfaction Act (MSA) requires a mortgage servicer to file with the county recorder’s office a mortgage satisfaction piece acknowledging that the loan has been paid in full and the lien forever released. The law sets forth requirements for the satisfaction piece, including that the loan servicer record it within sixty days of the payment in full of the mortgage and receipt of the borrower’s first written request for the satisfaction piece.

The federal Real Estate Settlement Procedures Act (RESPA) sets forth requirements for mortgages including loan servicing. According to this law, the servicer of a federally related mortgage loan who receives a valid QWR must (a) acknowledge its receipt within twenty days, (b) conduct an investigation, (c) make any appropriate corrections to the borrower’s account by filing a satisfaction piece with the county recorder’s office within sixty days of the QWR’s receipt, and (d) notify the borrower that it has made such corrections.

The complaint for this class action describes the plaintiff’s attempt to get Ocwen to send such a satisfaction piece to her county recorder’s office after paying off her loan. The plaintiff needed this paper promptly, in order to show that she had paid off this second lien on her home so that she could refinance the first one. However, Ocwen did not respond to her request as required by the MSA or RESPA. In fact, it filed the satisfaction piece approximately 252 days after the plaintiff’s first request for the document, and 198 days after her third request for it. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Complaint Alleges Ocwen Loan Servicing Violates Real Estate Settlement Laws

May 15, 2014

The complaint for this class action alleges that Ocwen Loan Servicingfailed to present to county recorders, in a timely manner, proof that mortgages have been satisfied.

ocwen_mortgage_satisfaction_complaint.pdf

Case Event History

Complaint Alleges Ocwen Loan Servicing Violates Real Estate Settlement Laws

May 15, 2014

The complaint for this class action alleges that Ocwen Loan Servicingfailed to present to county recorders, in a timely manner, proof that mortgages have been satisfied.

ocwen_mortgage_satisfaction_complaint.pdf
Tags: Servicing Your Mortgage, Your Bank