Ocwen

Onity Group was founded as Ocwen Financial Corporation in 1988 by William Erbey. The company is headquartered in West Palm Beach, Florida, with additional offices in Mount Laurel, NJ, Rancho Cordova, California, and St. Croix, U.S. Virgin Islands. It also has support operations in the Philippines and India. On June 10, 2024, Ocwen rebranded as Onity Group. Onity's Slogan is "We Get It Done."

Controversies and litigation

In July 2002, Kweku Hanson, a Connecticut attorney, initiated a class-action suit against Ocwen Federal FSB of West Palm Beach, Florida, and he was represented in this by fellow attorney Paul Ngobeni. The lawsuit in Hanson v. Ocwen Federal Bank described a dispute over late charges and fees that the plaintiffs alleged continued for six years. He was joined in the suit by 57 individuals who claimed to have been injured by Ocwen. The lawsuit sought $1.5 billion in punitive and exemplary damages but was settled out of court for an undisclosed sum.

On December 19, 2013, California Attorney General Kamala D. Harris announced a $2.1 billion mortgage settlement with Ocwen Financial Corporation and Ocwen Loan Servicing over alleged mortgage servicing misconduct. California homeowners eligible to receive an estimated $268 million in first lien principal reductions and nearly $23 million in cash payments.

This agreement was with a total of 49 states, with $2 billion used to cover loan modifications and principal reductions for the people who lost their homes between January 1, 2009, and December 21, 2012, and those people whose loans were serviced by OCWEN. Richard Cordray, Director of the Consumer Financial Protection Bureau, criticized Ocwen's mortgage servicing practices in announcing the settlement, stating that the firm "took advantage" of loan borrowers.

Due to conflicts of interest, Erbey subsequently resigned from his role on the company's board. Ocwen paid Erbey $1.2 million in connection with his departure.