$1.2M Ocwen Settlement Resolves Class Action Lawsuit Over ‘Illegitimate’ Charges on Florida Mortgages

New to ClassAction.org? Read our Newswire Disclaimer

Ocwen has agreed to a $1.2 million settlement to resolve a class action lawsuit that alleged the mortgage lender sought to collect in foreclosure cases improper and illegitimate charges on Florida homeowners’ mortgage accounts, in violation of state law.

Don’t miss out on class action settlement news like this. Sign up for ClassAction.org’s free weekly newsletter.

The Ocwen class action settlement received preliminary approval from the court on December 17, 2025. The deal covers all Florida residents whose mortgage contracts have been or are being serviced by Ocwen acting on behalf of HSBC Bank or other mortgage holders from February 15, 2014, until the present, whereby Ocwen attempted to collect money on mortgage account statements for:

• -Amounts for service of process for unknown tenant(s) or spouses(s) of the property, who may have been referred to by a “Jane Doe” or “John Doe” pseudonym;
• -Amounts for attorneys’ fees for legal services that were not performed, or for which there is no record that any such legal service was performed or how much time was involved in performing the purported service, such as the legal services alleged to have occurred after the filing of the complaint;
• -Amounts for property maintenance where neither Ocwen nor anyone on its behalf provided any maintenance on the subject property, or amounts for registration fees on properties located in West Palm Beach from 2014 to 2020 where the owner never vacated or abandoned the property; and
• -Amounts attributable to an attempt to collect mortgage payments not yet due.

The court-approved website for the Ocwen mortgage settlement can be found at OcwenFloridaSettlement.com.

According to the website, nearly 40,000 people are covered by the Ocwen class action settlement.

Importantly, the settlement website states that Ocwen settlement class members do not need to do anything to receive settlement benefits, which will be broken down by subclass.

Per the settlement site, members of the Property Maintenance Class with resolved loans, which are loans that have reached a final outcome or disposition, are eligible to receive a one-time cash payment of $250.

Class members in the Service of Process class with resolved loans are eligible to receive a one-time cash payment of $65, according to the settlement site.

Finally, the settlement site states that class members in the Attorneys’ Fees Class with resolved loans are eligible for a one-time cash payment of $14.14.

Settlement documents relay that the above class subcategories are not mutually exclusive, as class members may be entitled to receive benefits from all three categories, if applicable. Consumers who are unsure of whether they are included in the Ocwen counterclaim settlement class can refer to the class list on the settlement website or contact the settlement administrator with any questions.

In addition, the deal stipulates that class members with active mortgage loans as of October 21, 2025 will have the balance they owe reduced by the amount they are entitled to receive as their form of reimbursement. Benefits will also be issued to class members involved in active foreclosure cases, the agreement continues, where their current property debt will also be reduced by the amount they are entitled to through the settlement.

Class members will automatically receive their payout from the class action settlement via check to the address stored on file, the settlement agreement relays. Settlement checks must be cashed within 180 days of issuance before expiration.

The court will determine whether to grant final approval to the Ocwen settlement at a hearing on February 19, 2026. Compensation will be distributed to class members after final approval has been granted and any appeals have been resolved.

The Ocwen class action counterclaim alleged that the mortgage lender, in foreclosure cases, added illegitimate charges to consumers’ mortgage accounts in violation of the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act. According to the lawsuit, the improper charges included services of process fees for unknown tenants and/or a spouse, attorneys’ fees for services never performed, and a registration fee for West Palm Beach properties that was not owed to the city.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest current class action settlements.