Bradley attorney Mike Pennington was quoted in Law360 on a $600,000 settlement that was approved in a class action claim against Ocwen Loan Servicing LLC for failing to apply certain mortgage payments to borrower accounts due to a software bug. Of the roughly 9,000 class members, no class member or government agency has objected to the deal and only one person has opted out of it. The court also received 823 claims for account adjustment relief because most of the borrowers never made mortgage payments higher than their monthly minimum, and therefore weren’t affected by the miscalculation.
Pennington, an attorney for Ocwen, explained in this particular situation, the error was not in effect for a long time, and there wasn’t a “high-dollar impact” of the error. It primarily impacted borrowers who had made large mortgage payments and still accrued interest on their accounts. However, if those borrowers filed a claim, they received 100 percent relief, which is “a very rare case,” he said.
The complete article, “Ocwen’s ‘Excellent’ Deal Over Mortgage Software Error OK’d,” appeared in Law360 on January 27, 2017. (login required)