Massachusetts homeowners will receive $3 million in a settlement with the country’s fourth-biggest mortgage servicer, Attorney General Martha Coakley said Monday.
Coakley’s office said Ocwen Loan Servicing LLC, of Atlanta, unlawfully foreclosed on certain properties and failed to send notices to homeowners in default, as required by state law. A company owned by Ocwen, Litton Home Servicing LP, also initiated foreclosures on some properties though it did not hold the mortgages on them, Coakley alleged.
“This agreement provides for direct relief for affected borrowers and requires that Ocwen undertake efforts to repair problem titles in the Commonwealth,” Coakley said in a news release.
Her office did not say how many homeowners would get payments. The company will pay a $700,000 penalty to the state.
In December, Ocwen agreed to give homeowners in Massachusetts about $80 million in mortgage-principal reductions and cash as part of a national $2.1 billion settlement. That case involved loan servicing misconduct and illegal foreclosures.
Ocwen officials could not be reached for comment.