Michiganians in line for $21M in loan abuse deal

LANSING (AP) -- Attorney General Bill Schuette says Michigan residents are in line for more than $21 million in compensation from a finance company as part of a $2 billion settlement of foreclosure abuse complaints. Ocwen Financial Corp. will reduce struggling borrowers' loan balances by $2 billion in an agreement with federal regulators and 49 states (see "Mortgage manager in $2B deal over loan abuses" on today's Page Two). The Consumer Financial Protection Bureau and state attorneys general announced the deal last Thursday with the Atlanta-based company, among the largest U.S. mortgage servicers. The regulators say Ocwen pushed borrowers into foreclosure through illegal actions, such as failing to promptly and accurately credit mortgage payments. Schuette says Michigan residents should get $21 million in first lien principal reductions. He says at least 8,000 Michigan homeowners who went through foreclosure will be eligible to receive a cash payment. Published: Mon, Dec 23, 2013