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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
WEST PALM BEACH DIVISION
CASE NO. 9:17-CV-80495 and CASE NO. 9:17-CV-80495
MARRA-MATTHEWMAN
OFFICE OF THE ATTORNEY GENERAL,
THE STATE OF FLORIDA, Department of
Legal Affairs,
and
OFFICE OF FINANCIAL REGULATION,
THE STATE OF FLORIDA, Division of
Consumer Finance,
Plaintiffs,
v.
OCWEN FINANCIAL CORPORATION,
OCWEN MORTGAGE SERVICING, INC.,
OCWEN LOAN SERVICING, LLC; and
PHH MORTGAGE CORPORATION,
Defendants.
[PROPOSED] FINAL CONSENT JUDGMENT
Plaintiffs, Office of the Attorney General, State of Florida, Department of Legal Affairs
(the “Attorney General”) and Office of Financial Regulation, State of Florida, Division of
Consumer Finance (“OFR”) (collectively, “the Florida Plaintiffs”) appearing through the
undersigned counsel, and Ocwen Financial Corporation, Ocwen Mortgage Servicing, Inc., Ocwen
Loan Servicing, LLC, and PHH Mortgage Corporation (collectively “Ocwen” or “Defendant”),
appearing through its attorneys, having stipulated to the entry of this Final Consent Judgment
(“Judgment”), and the Court having considered the matter and good cause appearing:
IT IS HEREBY ORDERED THAT:
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I. FINDINGS
1. The Florida Plaintiffs and Ocwen (each a “Party” and collectively the “Parties”) have
agreed to resolve the issues resulting from the Covered Conduct by entering into this Judgment.
2. This Court has jurisdiction over the subject matter of this lawsuit and over the Parties.
3. The terms of this Judgment shall be governed by the laws of the State of Florida.
4. Entry of this Judgment is in the public interest and reflects a negotiated Judgment among
the Parties.
5. This Judgment shall not be construed or used as a waiver or limitation of any defense
otherwise available to Ocwen in any other action, or of Ocwen’s right to defend itself from, or
make any arguments in, any private individual, regulatory, governmental, or class claims or suits
relating in any way to the subject matter or terms of this Judgment. This Judgment is made
without trial or adjudication of any issue of fact or law or finding of liability of any kind, and
shall not be considered an admission of liability or a determination of liability as to any
allegations made in the Florida Plaintiffs’ Complaints and the causes of action therein. Ocwen
enters into this Final Judgment for settlement purposes only and denies allegations of
wrongdoing and any liability for the purported claims asserted in the Florida Plaintiffs’
Complaints.
6. Nothing contained herein, nor any negotiations or transactions connected in any way with
this Judgment, shall be offered, received or admissible in evidence in any proceeding to prove
any liability or wrongdoing, or an admission on the part of Ocwen, by any individual or entity
not a party hereto. Notwithstanding the foregoing, the Attorney General may file an action to
enforce the terms of this Judgment.
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7. Nothing herein constitutes approval by the Florida Plaintiffs of Ocwen’s past or future
practices. Ocwen shall not make any representation to the contrary regarding this Judgment, or
use the name of the Office of the Florida Attorney General, State of Florida, Department of
Legal Affairs, or Office of Financial Regulation, State of Florida, Division of Consumer Finance,
or any of their current or former employees or representatives, in connection with its business
practices relating to servicing of single-family residential mortgages, or as an endorsement or
approval of Ocwen’s acts, practices or conduct of business.
8. No part of this Judgment shall create a private cause of action or confer any right to any
third party for violation of any federal or state statute.
II. DEFINITIONS
9. As used in this Judgment, the following words or terms shall have the following
meanings:
a. “Applicable Requirements” shall be defined as (i) applicable federal, state and local laws,
rules and regulations, (ii) the terms of the applicable mortgage loan documents, (iii)
section 201 of the Helping Families Save Their Homes Act of 2009, and (iv) the terms
and provisions of the Servicer Participation Agreement with the Department of the
Treasury, any servicing agreement, subservicing agreement under which Ocwen services
for others, special servicing agreement, mortgage or bond insurance policy or related
agreement or requirements to which Ocwen is a party and by which it or its servicing is
bound pertaining to the servicing or ownership of the mortgage loans, including without
limitation the requirements, binding directions, or investor guidelines of the applicable
investor (such as Fannie Mac or Freddie Mac), mortgage or bond insurer, or credit
enhancer.
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b. “Covered Conduct” shall mean the practices, acts, or omissions of Ocwen, prior to the
Effective Date, set forth in the allegations, subject matter, and claims alleged in the
Florida Plaintiffs’ Complaints, including any facts related specifically thereto.
c. “Debt Forgiveness” shall be defined and calculated as set forth in Exhibit 1.
d. “Effective Date” shall mean the date this Judgment is entered by the Court.
e. “Florida Borrower” shall mean any borrower with a residential Florida property address
whose loan any Defendant services and/or subservices as of the Effective Date.
f. “Florida Plaintiffs’ Complaints” shall mean the Complaint of April 20, 2017 (Case No.
9:17-CV-80496, ECF No. 1), the Amended Complaint of June 14, 2017 (Case No. 9:17-
CV-80496, ECF No. 20), the Second Amended Complaint of July 11, 2018 (Case No.
9:17-CV-80496, ECF No. 88 and the Third Amended Complaint of November 1, 2019
(Case No. 9:17-CV-80495, ECF No. 506).
III. FINANCIAL TERMS
10. Monetary Payment: Under the terms of this Judgment, Ocwen is obligated to pay the
Florida Plaintiffs Five Million One Hundred Sixty Thousand Dollars ($5,160,000), for which let
execution issue forthwith, pursuant to the terms of Paragraphs 11 and 12, and will be obligated to
pay an additional One Million Dollars ($1,000,000) if it does not satisfy the terms proscribed by
Paragraphs 15 and 16. The Florida Plaintiffs have allocated the Monetary Payment as follows:
a. Relief to Florida Borrowers: Two Million One Hundred Fifty Thousand Dollars
($2,150,000) in consumer relief to address claims brought by the Florida Plaintiffs
regarding Ocwen’s alleged failure to timely make insurance payments out of
Florida Borrowers’ escrow accounts in violation of RESPA (Count I of the Third
Amended Complaint); and to address claims brought by the Attorney General
pursuant to the Florida Deceptive and Unfair Trade Practices Act, including certain
of Ocwen’s alleged failures related to Florida Borrowers’ escrow accounts and
Ocwen’s alleged excessive charges related to property preservation inspections
(Counts VI and VII of the Third Amended Complaint). Florida Borrowers’
eligibility to receive payments, and determination of the amount of any consumer
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payment, lies solely within the discretion and judgment of the Attorney General,
and such funds may be used for other purposes, or be placed in, or applied to, any
consumer protection enforcement or revolving fund, future consumer protection or
privacy enforcement or litigation, consumer education, or for others uses permitted
by state law, at the sole discretion of the Attorney General;
b. Civil Penalties: Two Million Dollars ($2,000,000) in civil penalties to address the
Florida Plaintiffs’ claims under all surviving counts (Counts I, II, III, IV, VI, VII
and VIII of the Third Amended Complaint); except that One Million Dollars
($1,000,000) of the civil penalties award shall be suspended (“Suspended Penalty
Amount”). Ocwen will only be obligated to pay the Suspended Penalty Amount
pursuant to the terms described in paragraphs 15 and 16 below;
c. Administrative Fines: Ten Thousand Dollars ($10,000) to resolve OFR’s
administrative claims under Chapter 494, Florida Statutes related to Ocwen’s (a)
alleged failure to timely make payments from escrow accounts, and (b) alleged
failure to timely file annual reports in the time period relevant to the Third
Amended Complaint; and
d. Attorneys’ Fees and Costs: Two Million Dollars ($2,000,000) in attorneys’ fees
and other costs of investigation and litigation.
11. Payment of Administrative Fine. No later than thirty (30) days after the Effective Date of
this Judgment, Ocwen shall pay to OFR an administrative fine in the amount of Ten Thousand
Dollars ($10,000). The fine is payable in one payment and shall be submitted in the form of a
wire transfer, money order, or cashier’s check made payable to: Department of Financial
Services and shall be sent to the attention of Agency Clerk, c/o Joaquin Alvarez, Post Office Box
8050, Tallahassee, Florida 32314-8050.
12. Payment of Consumer Relief, Attorneys’ Fees & Costs, and Civil Penalties. No later
than sixty (60) days after the Effective Date of this Judgment, Ocwen shall pay the sum of Five
Million One Hundred Fifty Thousand Dollars ($5,150,000) by check made out to the Legal
Affairs Revolving Trust Account or by wire as instructed by the Attorney General. Time is of
the essence in the performance of all terms and conditions of this Judgment, and, in the event
Ocwen fails to timely pay as set forth in the paragraph, interest computed in the statutory rate in
effect as of sixty-one (61) days after the Effective Date pursuant to Section 55.03, Florida
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Statutes, will immediately begin to accrue on any unpaid balance due and owing and will be
rendered immediately due and payable by all Defendants, jointly and severally, upon demand by
the Attorney General.
IV. OTHER RELIEF TO FLORIDA BORROWERS
13. Ocwen shall provide relief to certain borrowers for which Ocwen is presently servicing
residential mortgage loans secured by property in the state of Florida (the “Florida Accounts”) as
follows:
14. Late Fee Waivers: For those Florida Accounts that Ocwen is presently servicing which
are in Foreclosure or Bankruptcy status, or which are more than 60 days delinquent as of the
Effective Date, Ocwen shall waive late fees previously assessed but not collected as of the
Effective Date. Ocwen represents that as of September 30, 2020, there are approximately 6,600
accounts subject to this provision, and estimates that the fees waived under this provision shall
amount to approximately Five Million Five Hundred Thousand Dollars ($5,500,000). Ocwen
will provide the Florida Plaintiffs with a list of the Florida Borrowers receiving relief under this
provision within thirty (30) days of the Effective Date. Ocwen will provide Florida Plaintiffs
with a notice of compliance with this term within sixty (60) days of Effective Date.
15. Loan Modification Program Solicited to Florida Accounts (the “Loan Modification
Program”): Ocwen shall solicit each Florida Account as of the Effective Date, with an offer in
writing to review the account for a loan modification pursuant to this Judgment (“the
Solicitation”), unless the account is otherwise not eligible because the Solicitation or
modification is prohibited by the Applicable Requirements, the loan’s investor, program
requirements, customer no-contact directives, or other similar reasons. Ocwen represents that as
of September 21, 2020, it is currently aware of approximately 3,400 Florida Accounts that may
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be eligible to receive a Solicitation to apply for a loan modification. Ocwen will provide the
Florida Plaintiffs with a preliminary list of the borrowers eligible to receive a Solicitation within
thirty (30) days of the Effective Date. Nothing herein shall preclude Ocwen, from soliciting
other eligible Florida Borrowers in addition to those identified in the preliminary list. Every
quarter, commencing the 90
th
day after Ocwen provides the Florida Plaintiffs with the
preliminary list of eligible borrowers, Ocwen will provide Florida Plaintiffs with a list of the
number of borrowers solicited and an accounting by borrower of the Calculation of Debt
Forgiveness Amount, as that term is described in Exhibit 1. At the end of the twenty-four (24)
month period commencing on the Effective Date, Ocwen will provide the Florida Plaintiffs with
a final list of borrowers who received a Solicitation pursuant to this paragraph, with an
accounting by borrower of the Calculation of Debt Forgiveness Amount, as that term is
described in Exhibit 1. The Solicitation to eligible borrowers shall be made in the form of notice
attached as Exhibit 2, and the notice will be sent within sixty (60) days of the Effective Date.
Except as required by a presiding court or by applicable investor guidelines, Ocwen shall not
refer to foreclosure or proceed to a foreclosure sale on any property secured by a mortgage loan
subject to this provision for sixty (60) days following the mailing of the Solicitation, in order to
provide the borrowers the opportunity to apply and be reviewed for the loan modification
programs identified in Exhibit 3 (or any similar programs that subsequently become available,
and excluding any that are retired as of the date the borrower applies) consistent with the
solicitation and review requirements specified in Exhibit 2. Participation in a COVID-19
forbearance will not, independently, render any Florida Borrower ineligible for the Loan
Modification Program described herein.
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16. Pursuant to the Loan Modification Program described in the immediately preceding
paragraph, and during the twenty-four (24)-month period commencing on the Effective Date,
Ocwen shall provide Debt Forgiveness to Florida Accounts totaling at least One Million Dollars
($1,000,000) through loan modifications on first lien and second lien residential mortgage loans
as defined and calculated in Exhibit 1. If the Florida Plaintiffs determine Ocwen failed to meet
its Debt Forgiveness obligation described in this paragraph, the Florida Plaintiffs will notify
Ocwen of the alleged failure, provide an opportunity to meet and confer within five (5) business
days regarding the alleged failure, and provide Ocwen thirty (30) days following the meet and
confer to cure the alleged failure (“Cure Period”) or comply under the original terms of this
Judgment. If Ocwen has not cured its alleged failure to comply with this paragraph within the
Cure Period, and the Parties cannot reach resolution as part of the meet and confer process,
Ocwen shall promptly issue a payment as directed by the Florida Plaintiffs in the amount of One
Million Dollars ($1,000,000).
17. Targeted Florida Borrower Outreach: Within six (6) months of the Effective Date, not
including any time period during which there is a state of emergency in effect in Florida that
materially impacts borrowers’ ability to attend an event, Ocwen (a) shall partner with one or
more non-profit organizations to participate in one loss mitigation outreach event in Florida (as
permitted by applicable state social distancing guidelines), with such outreach event to also
include information, and personnel qualified to answer questions about loss mitigation options
potentially available to Florida Borrowers after the expiration of COVID-19 forbearance plans,
and (b) shall partner with local housing counselors to implement a targeted loss mitigation
mailing campaign designed to benefit at-risk Florida borrowers. The Florida Plaintiffs agree that
any event allowing virtual participation by Florida Borrowers may discharge Ocwen’s
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obligations pursuant to this Paragraph. Ocwen shall provide the Florida Plaintiffs notice of its
compliance with this term within thirty (30) days of the outreach event.
18. Effect of this Judgment on the CFPB Lawsuit: The Parties acknowledge the pending
matter of Consumer Financial Protection Bureau v. Ocwen Financial Corporation, Inc. et al.,
Case No. 9:17-CV-80495-KAM, filed in the United States District Court for the Southern
District of Florida (the “CFPB Lawsuit”). The Parties agree that this Judgment does not bar,
impede, or impair any Florida Borrower’s qualification or entitlement to receive injunctive or
other similar relief through the CFPB Lawsuit, on par in substance and value with the relief
received by any other borrower, as the result of any resolution or judgment obtained in the CFPB
Lawsuit. In the event that Ocwen enters into any agreement with the Consumer Financial
Protection Bureau (“CFPB”) resolving claims asserted in the CFPB Lawsuit that provides for
relief to Florida Accounts different from or more favorable than those contained herein, Ocwen
agrees that Florida Borrowers shall not be precluded solely by virtue of this Judgment from
qualification for entitlement to relief available through resolution of the CFPB Lawsuit. In
furtherance of this agreement, Ocwen agrees that the Florida Plaintiffs shall have the right to
timely review and approve any material term offered by Ocwen as part of any resolution of the
CFPB Lawsuit that, based upon this Judgment, would provide for an offset of any relief or
otherwise reduce or diminish the recovery in the CFPB Lawsuit for Florida Borrowers. The
Florida Plaintiffs agree to review and respond to any such terms within one (1) business day of
being notified, or within one (1) hour of being notified during any mediation session between
Ocwen and the CFBP, and further agree that failure to respond within the timeframes set forth
herein shall be deemed approval of any such terms. If the Florida Plaintiffs disapprove of the
term, Ocwen agrees that it will not agree to the inclusion of the term, or anything similar thereto,
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in any resolution of the CFPB Lawsuit. Ocwen further agrees that it will not otherwise agree to
inclusion of any material term that would provide for an offset of any relief or otherwise reduce
or diminish the recovery in the CFPB Lawsuit for Florida Borrowers. The Florida Plaintiffs
agree they shall not withhold any approval unreasonably and must articulate the grounds for any
disapproval, including the expected specific impact on Florida Borrowers. Notwithstanding the
foregoing, Florida Plaintiffs acknowledge that resolution of the CFPB Lawsuit may place the
determination regarding the use of funds pursuant to the resolution, including but not limited to
the eligibility for or amount of any consumer payment, solely within the discretion and judgment
of the CFPB. Under such circumstances, the Florida plaintiffs agree that Ocwen shall not be
liable for any such determinations by the CFPB nor deemed to be in breach of this Judgment
based on such a determination by the CFPB.
19. To the extent necessary to facilitate the distribution of monetary or other relief to Florida
consumers described in this Judgment, and in response to reasonable requests made by the
Florida Plaintiffs, Ocwen shall cooperate with the Florida Plaintiffs in providing the borrower
name(s) and current or last known address of Florida Borrowers identified by the Florida
Plaintiffs by loan number and/or property address.
V. ESCROW REVIEW FOR FLORIDA ACCOUNTS
20. During the course of the matter, Ocwen disclosed that during the month of April 2017,
thirty (30) states (including the District of Columbia) issued Cease and Desist Orders based on
Ocwen’s alleged failure to comply with a 2016 Memorandum of Understanding. Ocwen has
now settled with 27 of these states, and the remaining three states either withdrew, dismissed, or
allowed their Cease and Desist Order to expire.
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21. Twenty-Six states (the “Participating States”) required a review of Ocwen’s practices,
including a statistical review by a selected independent third-party auditor, Protiviti Inc., of
escrowed loans in order to determine compliance with state and federal laws relating to escrow
accounts, lender-placed insurance, and private mortgage insurance (the “Escrow Review”). In
furtherance of this Judgment, Ocwen has agreed to the following:
22. Application of Escrow Review Remediation to Florida Accounts: To the extent that
errors identified in the Escrow Review require corrective measures, refunds, or other remediation
under the terms of the Escrow Review, such corrective measures, refunds, or other remediation
will also be applied to any Florida Accounts which are impacted by the same error(s) and are or
were serviced by Ocwen during the remediation period covered by the Escrow Review.
23. Reporting of Escrow Audit to the Florida Plaintiffs: Ocwen will provide the Florida
Plaintiffs with Florida-specific reporting of servicing errors identified through the Escrow
Review and the remediation taken on all Florida Accounts, including all restitution paid. This
reporting shall be similar to the reporting required by the Participating States included in the
Escrow Review.
VI. CONSUMER COMPLAINT AND INFORMATION REQUEST HANDLING
24. Beginning thirty (30) days after the Effective Date, Ocwen shall maintain a quarterly
written report for two (2) years listing all complaints (including complaints received via email,
phone, or written complaints) concerning Florida Accounts received from Florida Borrowers
directly or from the Attorney General, OFR or the CFPB after the Judgment is entered. This
quarterly report shall be sortable by issue and by Ocwen’s complaint resolution, which will
include any remediation completed by Ocwen following the complaint review. All Parties agree
that, upon written request of either the Attorney General or OFR, and subject to the CFPB’s
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written consent to include complaints it sent to Ocwen, Ocwen shall provide a copy of any
complaint identified on the quarterly report and a copy of a borrower’s complete loan file for
review, including the payment history, correspondence between Ocwen and the borrower, a
transaction log, and Ocwen’s response to the complaint.
25. In addition to the written report, the Florida Plaintiffs require that Ocwen implement an
enhanced complaint review and resolution process (the “Borrower Complaint Resolution Plan”)
to ensure that borrower complaints are expedited and resolved timely and accurately. Ocwen
shall submit a Borrower Complaint Resolution Plan to Florida within ten (10) business days after
the Effective Date for review and determination of adequacy for the intended purpose. The
purpose of the Borrower Complaint Resolution Plan is to ensure that Ocwen thoroughly
documents, evaluates, and investigates borrower complaints and remediates any harm associated
with the complaint. The Borrower Complaint Resolution Plan shall be implemented within thirty
(30) days of the Florida Plaintiffs’ approval of such Plan, shall remain in effect for two (2) years
after implementation, and shall include the following:
a. Ocwen shall activate a dedicated, toll free hotline staffed by customer service
representatives in Florida for Florida Borrowers to raise questions or concerns
regarding their accounts; such hotline will be maintained with staff sufficient to
handle calls within the hours of 9 am EST and 5 pm EST;
b. Upon Ocwen’s receipt of an unresolved complaint concerning a Florida Account
regarding specific activity on the account, where the borrower states the borrower
has previously complained of the same or similar behavior by Ocwen, Ocwen shall,
regardless of the method in which Ocwen received the complaint (via email, phone,
or a written complaint), escalate the Florida Borrower’s complaint to an escalation
relationship manager who has authority to address and resolve the complaint and
approve remediation payments;
c. For all written complaints received from Florida Borrowers, Ocwen shall respond
in writing, by acknowledging the complaint and informing the borrower of
Ocwen’s review process applicable to all borrower complaints, within an expedited
timeframe of no more than 5 business days;
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d. Ocwen shall provide additional training to its frontline staff to process complaint
intake, to escalate all first-time complaints to the corresponding departments within
Ocwen for analysis and remediation, and to provide Florida Borrowers with a
thorough written response to resolve each borrower’s complaint; and
e. Ocwen shall designate a point of contact for complaints escalated by the Attorney
General and shall conduct monthly calls as directed by the Attorney General to
discuss complaint statuses.
f. Ocwen shall designate a point of contact for complaints escalated by OFR.
VII. RELEASE
26. By entry of this Judgment, the Florida Plaintiffs release and forever discharge Ocwen and
any of its divisions, subsidiaries, affiliates or parent entities, and any of their officers, directors,
agents, servants, or employees from all civil liability, administrative claims, causes of action,
damages, restitution, fines, costs, attorney’s fees, remedies and/or penalties that the Florida
Plaintiffs asserted or could have asserted, whether known or unknown, related to the Covered
Conduct as of the Effective Date.
VIII. DOCUMENTATION AND REPORTING
27. Ocwen shall create and maintain, for a period of two (2) years, records sufficient to
demonstrate Ocwen’s compliance with obligations under the Judgment. Upon receipt of written
notice from the Florida Plaintiffs asking that Ocwen provide a compliance report regarding
Ocwen’s obligations under this Judgment, Ocwen shall, within a reasonable period of time not to
exceed sixty (60) days, provide a report to the Florida Plaintiffs. The Florida Plaintiffs may not
request the report pursuant to this paragraph more than twice, unless the report shows that Ocwen
is not in compliance. Should the report demonstrate that Ocwen is not in compliance with the
obligations under the Judgment, Ocwen shall submit a remediation plan to the Florida Plaintiffs
demonstrating Ocwen’s plan to comply with the Judgment. The Florida Plaintiffs will provide its
objection or non-objection to any remediation plan within thirty (30) days of receipt of the
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remediation plan. The right of the Florida Plaintiffs to object or not object to a remediation plan is
in addition to any other lawful means of enforcement under this Judgment, and any nonobjection
under this paragraph shall not waive the right of the Florida Plaintiffs to obtain relief for violations
of this Judgment in court.
IX. GENERAL PROVISIONS
28. Ocwen admits to the jurisdiction of the Court and consents to the entry of this Judgment
and to the rights of the Florida Plaintiffs to enforce the terms and conditions of this Judgment.
Notwithstanding the foregoing, the Florida Plaintiffs will provide Ocwen with an opportunity to
meet and confer to discuss and attempt to resolve any allegations that Ocwen has violated this
Judgment seven (7) calendar days before taking any action to enforce the Judgment. However,
this Consent Judgment shall in no way preclude the Attorney General from bringing an action
without notice under exigent circumstances that require immediate action to protect the health,
safety, and welfare of the public.
29. If any portion of the Judgment is held to be invalid, unenforceable, or void for any reason
whatsoever, then such portion will be severed from the remainder and will not affect the validity
and enforceability of the remaining portions of the Judgment.
30. Nothing herein shall prevent the parties from petitioning the Court for a modification of
this Judgment in the event that amendments or changes in federal or state law, future changes in
accreditation or other standards, or unforeseen events create a conflict with the mandated
provisions of this Judgment.
31. Any failure of the Florida Plaintiffs or Ocwen to exercise their rights under this Judgment
shall not constitute a waiver of its rights.
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32. No part of this Judgment shall be construed as a waiver or release of any private rights,
causes of action or remedies of any person against Ocwen. Nothing herein shall be construed to
limit or bar any other governmental entity from pursuing other available remedies against Ocwen
for violation of laws.
33. Nothing in this Judgment shall be construed to waive or limit any claim of sovereign
immunity the State of Florida may have in any action or proceeding.
34. Any failure by any Party to this Judgment to insist upon the strict performance by any other
Party of any of the provisions of this Judgment shall not be deemed a waiver of any of the
provisions of this Judgment, and such Party, notwithstanding such failure, shall have the right
thereafter to insist upon the specific performance of any and all of the provisions of the Judgment.
35. Ocwen shall notify its officers and directors and use reasonable efforts to notify its
employees, agents, and contractors responsible for carrying out and effecting the terms of this
Judgment of the obligations, duties, and responsibilities imposed on Ocwen by this Judgment.
36. Ocwen agrees that it shall not effect any change in the form of doing business or the
organizational identity of Ocwen for the purposes of avoiding the terms and conditions set forth in
this Judgment. In the event that Ocwen is sold, assigned, consolidated with, merged with, or
transferred to a third-party within three (3) years from the Effective Date, a copy of this Judgment
shall be provided by Ocwen to said purchaser, assignee, or transferee.
37. This Judgment is continuing in nature and shall be binding on any and all successors or
assigns of Defendant.
38. This Judgment is intended to be for the benefit of the Parties and does not create any other
third-party rights.
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39. The Florida Plaintiffs and Ocwen waive all rights to seek appellate review, rehearing, or
otherwise to challenge or contest the validity of this Judgment. Ocwen further waives and releases
any and all claims it may have against the Florida Plaintiffs, its employees, representatives or
agents with respect to this action.
40. This Judgment is governed by the laws of the State of Florida.
41. The Parties jointly participated in the negotiation of the terms articulated in this Judgment,
and all Parties consulted counsel or had the ability to do so. No provision of this Judgment shall
be construed for or against another Party on the grounds that one Party or another was more heavily
involved in the preparation of the Judgment or had control over the provisions included herein.
42. This Judgment is the final, complete, and exclusive statement of the Parties’ agreement on
the matters contained in this Judgment, and it supersedes all previous negotiations and agreements.
Other than any representation expressly stated in this Judgment, the Parties have not made any
representations or warranties to each other, and neither Party’s decision to enter into this Judgment
is based upon any statements by the other Party outside of those in this Judgment.
43. This Judgment may not be amended except by written consent of the Parties.
44. The undersigned counsel represents and warrants that they are fully authorized to execute
this Judgment on behalf of the State of Florida.
45. The undersigned counsel represents and warrants that they are fully authorized to execute
this Judgment on behalf of Ocwen.
46. This Judgment may be executed in counterparts, each of which constitutes an original and
all of which constitute one and the same Judgment.
47. All Parties acknowledge that this Judgment is not confidential or protected from public
disclosure.
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48. Nothing in this Judgment shall be construed as relieving Ocwen of its obligations to comply
with all state and federal laws, regulations, or rules, or granting Ocwen permission to engage in
any acts or practices prohibited by such laws, regulations, or rules.
49. Nothing herein shall be interpreted to prevent the Florida Plaintiffs from taking
enforcement action to address conduct of Defendant occurring after the Effective Date, or conduct
occurring before the Effective Date not released herein, that the Florida Plaintiffs believe to be in
violation of the law. The fact that such conduct was not expressly prohibited by the terms of this
Judgment shall not be a defense to any such enforcement action.
50. Any notices required to be sent to the Florida Plaintiffs or to Ocwen under this Judgment
shall be sent by certified mail, return-receipt requested, or other tracked mail delivery service. The
documents shall be sent to the following addresses:
For the Attorney General:
Sasha Funk Granai
Assistant Chief-Assistant Attorney General
Office of the Attorney General
Department of Legal Affairs
3507 East Frontage Road, Suite 325
Tampa, Florida 33607
(813) 287-7950 (telephone)
For OFR:
Gregory C. Oaks, Director
Division of Consumer Finance
Florida Office of Financial Regulation
200 East Gaines Street
Fletcher Building – 550G
Tallahassee, FL 32399-0376
Office: (850) 487-9687
Direct: (850) 410-9829
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For Ocwen:
Sabrina M. Rose-Smith
GOODWIN PROCTER LLP
1900 N Street, NW
Washington, DC 20036
(202) 346-4000 (telephone)
51. This court retains jurisdiction of the Judgment and the Parties for purpose of enforcing and
modifying the Judgment and for the purpose of granting such additional relief as may be necessary
and appropriate.
IT IS SO ORDERED, ADJUDGED AND DECREED this day of _______________, 2020.
____________________________________
United States District Judge
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______________________________________
Gregory C. Oaks, Director
Division of Consumer Finance
Florida Office of Financial Regulation
200 East Gaines Street
Fletcher Building – 550G
Tallahassee, FL 32399-0376
Office: (850) 487-9687
Direct: (850) 410-9829
FOR OCWEN FINANCIAL CORPORATION, OCWEN MORTGAGE SERVICING,
INC., OCWEN LOAN SERVICING, LLC, AND PHH MORTGAGE CORPORATION
____________________________________
Sabrina Rose-Smith
GOODWIN PROCTER, LLP
1900 N Street, NW
Washington, DC 20036
Tel.: 202-346-4185
srosesmith@goodwinlaw.com
APPROVED AS TO FORM FOR ENTRY:
FOR PLAINTIFFS OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA,
DEPARTMENT OF LEGAL AFFAIRS AND OFFICE OF FINANCIAL REGULATION,
STATE OF FLORIDA, DIVISION OF CONSUMER FINANCE
____________________________________
Sasha Funk Granai
Assistant Chief-Assistant Attorney General
Florida Bar No. 96648
Email: [email protected]
Office of the Attorney General
Department of Legal Affairs
3507 East Frontage Road, Suite 325
Tampa, Florida 33607
(813) 287-7950 (telephone)
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____________________________________
Victoria Butler
Director, Consumer Protection Division
Fla. Bar No.: 861250
Email: [email protected]
Office of the Attorney General
Department of Legal Affairs
3507 East Frontage Road, Suite 325
Tampa, Florida 33607
______________________________________
Patricia A. Conners
Chief Associate Deputy Attorney General
Fla. Bar No.: 361275
PL-01, The Capitol
Tallahassee, FL 32399
______________________________________
Gregory C. Oaks, Director
Division of Consumer Finance
Florida Office of Financial Regulation
200 East Gaines Street
Fletcher Building – 550G
Tallahassee, FL 32399-0376
Office: (850) 487-9687
Direct: (850) 410-9829
FOR OCWEN FINANCIAL CORPORATION, OCWEN MORTGAGE SERVICING,
INC., OCWEN LOAN SERVICING, LLC, AND PHH MORTGAGE CORPORATION
____________________________________
Sabrina Rose-Smith
GOODWIN PROCTER, LLP
1900 N Street, NW
Washington, DC 20036
Tel.: 202-346-4185
srosesmith@goodwinlaw.com
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EXHIBIT 1
A. Loan Modification Criteria
1. For first lien loan modifications, Ocwen shall receive credit towards its obligation
in paragraph 15 and 16 for every dollar of Debt Forgiveness if:
a. At the time the modification is offered, the borrower is at least 30 days
delinquent or otherwise qualifies as being at imminent risk of default due to
his or her financial situation;
b. The borrower’s pre-modification LTV (post-capitalization of any delinquent
charges) is greater than or equal to 80%;
c. The borrower’s post-modification LTV is no greater than 120%.
2. For second lien loan modifications, Ocwen shall receive credit towards its
obligation in paragraph 15 and 16 for every dollar of Debt Forgiveness if at the
time the modification is offered, the borrower is at least 30 days delinquent or
otherwise qualifies as being at imminent risk of default due to his or her financial
situation;
B. Calculation of Debt Forgiveness Amounts
1. Ocwen shall receive dollar-for-dollar credit for Debt Forgiveness through loan
modifications that meet the criteria described above. “Debt Forgiveness” shall be
defined as “Unpaid Principal Balance (“UPB”) Forgiven” plus “Eligible
Capitalized Amounts Forgiven.”
a. “Unpaid Principal Balance Forgiven” shall be calculated as the greater of
either (i) zero dollars ($0), or (ii) pre-modification UPB minus post-
modification UPB.
b. “Eligible Capitalized Amounts Forgiven” shall be calculated as the lesser of
either (i) delinquent interest, plus escrow advances, plus corporate advances,
but excluding late fees and convenience fees or (ii) Total Amount Forgiven.
c. “Total Amount Forgiven” shall be calculated as pre-modification total debt
minus post-modification UPB.
2. Ocwen shall receive credit for all loan modifications described herein which are
Contractually Current at the time the modification is completed in Ocwen’s
servicing system, which is denoted by the “modification completed” system
indicator. “Contractually Current” means less than 30 days delinquent and
contemplates that a borrower has successfully completed a trial modification
program and the modification has become permanent, demonstrating the
borrower’s ability to pay. For additional costs that may be incurred post
modification effective date, and all escrow advances assessed after the
modification date, those costs will still be owed by the borrower and, Ocwen shall
not be prevented from receiving credit for the modification.
3. Ocwen’s efforts to satisfy its obligation in Paragraphs 15 and 16 of the Judgment
is subject to, and shall be interpreted in accordance with, as applicable, the terms
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and provisions of the Servicer Participation Agreement with the U.S. Department
of the Treasury, any servicing agreement, subservicing agreement under which
Ocwen services for others, special servicing agreement, mortgage or bond
insurance policy or related agreement or requirements to which Ocwen is a party
and by which it or its servicing affiliates are bound pertaining to the servicing or
ownership of the mortgage loans, including without limitation the requirements,
binding directions, or investor guidelines of the applicable investor (such as
Fannie Mac or Freddie Mac), mortgage or bond insurer, or credit enhancer,
provided, however, that the inability of Ocwen to offer a type, form or feature of
borrower assistance by virtue of the Applicable Requirements shall not relieve
Ocwen of its obligations imposed by Paragraphs 15 and 16 of the Judgment, i.e.,
Ocwen must satisfy such obligations through the offer of other types, forms or
features of borrower assistance that are not limited by such Applicable
Requirements.
C. Borrower Eligibility and Other Questions
1. Ocwen shall be responsible for answering borrowers’ questions regarding the
Targeted Loan Modification Program described in Paragraphs 15 and 16 and this
Exhibit 1 of the Consent Judgment.
2. Ocwen shall provide training and scripts to its frontline staff to answer borrowers’
questions regarding eligibility, loan modification criteria, Debt Forgiveness, and
any other information pertaining to the Targeted Loan Modification Program
described in Paragraphs 15 and 16 and this Exhibit 1 of the Consent Judgment.
3. Any consumer complaints that arise from or relate to the Targeted Loan
Modification Program shall be included in the quarterly written report described
in Section VI of the Consent Judgment and shall be otherwise subject to the terms
of Section VI.
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EXHIBIT 2
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EXHIBIT 3
Below is a list of loan modification programs currently offered by Ocwen:
Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”)
Flex Modification
Federal National Mortgage Association (“FNMA” or “Fannie Mae”)
Flex Modification
Federal Housing Administration (“FHA”)
Disaster Modification (Disaster Relief Modification)
Disaster Stand-alone Partial Claim (Disaster Relief Modification)
Partial Claim Modification
FHA Home Affordable Modification Program
COVID-19 Owner-Occupant Loan Modification
COVID-19 Combination Partial Claim and Loan Modification
COVID-19 FHA-HAMP Combination Loan Modification and Partial Claim with
Reduced Documentation
COVID-19 Non-Occupant Loan Modification
Private Label Securities (“PLS”)
Helping Homeowners’ Modification
Streamline Modification
United States Department of Agriculture ("USDA")
Term Extension (Disaster Relief Modification)
Capitalization of Delinquency and Term Extension (Disaster Relief Modification)
Loan Modification
Veterans’ Affairs (“VA”)
VA Disaster Loan Modification (Disaster Relief Modification)
Standard Modification
VA Affordable Modification
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