A settlement reached to resolve False Claims Act Allegations against Ocwen Financial Corp.
The allegations arose by two lawsuits claiming Ocwen Financial Corp. of falsely certifying that it was in compliance with Federal Housing Administration and Home Affordable Modification Program rules.
Under the preliminary settlement, Ocwen will pay $15 million to the United States and $15 million to cover the attorneys' fees and costs sustain by the private citizens who brought forth the case.
As part of the settlement, Ocwen stated that the company is not admitting to any liability or wrongdoing for the alleged actions.
Ocwen also stated that it planned the $30 million charge related to the settlement because the company believes "this amount is both probable and reasonably estimable based on current information."
Ocwen paid $2 million in a settlement with the Securities and Exchange Commission earlier this year, over charges that it used flawed methodology to value mortgages and lacked proper accounting controls.
