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This settlement is closed!
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A settlement has been reached in a class action lawsuit alleging Ocwen Loan Servicing LLC improperly reported interest payments to the Internal Revenue Service for borrowers who had Option ARM mortgages or other negatively mortgages that were serviced by Ocwen in 2013.
Plaintiffs George Camberis and Claudia Camberis filed the Ocwen class action lawsuit, claiming that Ocwen failed to report borrowers’ negative amortization payments to the IRS on tax form 1098 for the 2013 tax year. They allege that as a result of Ocwen’s failure to report these payments, they overpaid their taxes because they were unable to make a mortgage interest deduction.
Form 1098 is the tax form filed with the IRS by loan servicing companies. This form indicates the amount of mortgage interest the loan servicing company received from the borrower during the tax year.
A negative amortization loan, also known as an Option ARM loan, is a loan that lets a borrower pay some or all of the interest owed each month. When the borrower makes the minimum payment on the loan, the unpaid interest gets added to the amount borrowed, causing the loan balance to increase. If a borrower pays more than the interest on the loan than what was accrued during the month, the borrower has made a payment of negative amortization.
Ocwen denies that it did anything wrong and maintains that the IRS does not require negative amortization payments to be reported. However, Ocwen has agreed to settle the class action lawsuit to avoid the cost and risk of further litigation.
Who’s Eligible
Class Members of the Ocwen mortgage interest payment settlement include: “All persons with Negative Amortization Loans serviced by Ocwen who made payments of Negative Amortization during 2013 that were not reported to the IRS on Form 1098 for Tax Year 2013.”
Potential Award
$35 for each qualifying loan. Class Members will also receive an amended 2013 Form 1098.
Proof of Purchase
N/A
Claim Form Deadline
N/A. Class Members who do not exclude themselves from the Ocwen class action settlement will automatically receive benefits if the settlement receives final approval. The deadline to exclude yourself from the Ocwen settlement is Oct. 2, 2015.
Case Name
Camberis v. Ocwen Loan Servicing LLC, Case No. 3:14-cv-02970-EMC, in the U.S. District Court for the Northern District of California
Final Hearing
11/9/2015
Settlement Website
Claims Administrator
Ocwen Loan Servicing
Claims Administrator
P.O. Box 40007
College Station, TX 77824-4007
1-866-478-8537
Class Counsel
David J. Vendler
MORRIS POLICH & PURDY LLP
Michael R. Brown
MICHAEL R. BROWN APC
Defense Counsel
Jeff E. Scott
Jennifer L. Gray
GREENBERG TRAURIG LLP
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