Ocwen $1.2M Foreclosure Fees Class Action Settlement

Individuals who had an Ocwen-serviced mortgage and whom the company charged certain fees during a foreclosure case in Florida may be eligible to receive between $14.14 and $329.14 from a class action settlement.

Ocwen Financial Corp. agreed to pay $1.2 million to resolve a class action lawsuit alleging it charged improper fees to borrowers in foreclosure cases. The lawsuit claimed Ocwen sought to collect fees for services not performed, service of process fees for unknown tenants or spouses and a nonexistent property registration fee in West Palm Beach.

Who are the class members?

The settlement class includes Florida borrowers with Ocwen mortgage accounts whom the company assessed specific charges during foreclosure proceedings. There are three distinct groups of class members each defined by the type of fee Ocwen charged:

• Property maintenance class: Borrowers whom Ocwen charged a West Palm Beach property registration fee that they did not owe the city. This class includes 147 members.
• Service of process class: Borrowers whom Ocwen charged service of process fees for unknown tenant(s) and/or a spouse. This class includes 11,837 members.
• Attorneys’ fee class: Borrowers whom Ocwen charged attorneys’ fees for services that were not performed. This class includes 27,855 members.

A borrower can be a member of one, two or all three classes, depending on which fees Ocwen assessed to their account. The number of members in each class is as follows:

How much can class members get?

The settlement fund is allocated as follows:

• Property maintenance class: $250 per member
• Service of process class: $65 per member
• Attorneys’ fee class: $14.14 per member

If a borrower qualifies for more than one class, they will receive the sum of the applicable awards.

If a borrower is a defendant in an active foreclosure case and a class member, the settlement administrator will apply the settlement payment as a reduction to their current debt rather than as a direct payment.

No action needed to receive compensation

Class members do not need to file a claim to receive compensation. The settlement administrator already has the information necessary to identify and will automatically pay eligible class members based on class membership records.

Settlement fund breakdown

The settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: $1,990,000
• Service award to class representative: $10,000
• Payments to eligible class members: $1,200,000

Important dates

• Final approval hearing: Feb. 19, 2026

When is the L’Italien v. Ocwen payout date?

The settlement administrator will distribute payments to class members after the court resolves any appeals and grants final approval and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Ocwen charged improper and illegitimate fees to borrowers in foreclosure, including fees for services not performed and charges not owed to the city of West Palm Beach. The plaintiffs claimed these practices violated the Florida Consumer Collection Practices Act and the Florida Unfair and Deceptive Trade Practices Act and breached mortgage contracts.

Ocwen denied the allegations but agreed to settle to avoid the uncertainty and expense of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ