Ocwen Loan Servicing, LLC., CIT Bank, N.A., formerly OneWest Bank, N.A., Ordered to Pay $50,000 to Bay Area Couple

Law Firm Newswire



Santa Cruz, CA (Law Firm Newswire) September 26, 2016 – A $50,000 money judgment was issued against Ocwen Loan Servicing, LLC., and CIT Bank, N.A., formerly known as OneWest Bank, N.A.

The judgment required the banks to pay a San Francisco Bay Area couple $50,000. The banks also agreed to remove mortgage delinquencies from the couples credit report regarding the Ocwen and OneWest Bank mortgage loan. The court judgment came after Alex and Maria Lopez had sued them for credit reporting violations.

In 2015, Alex and Maria sued Ocwen and OneWest for violations of the Fair Credit Reporting Act. The complaint alleges that in 2012 the United States Bankruptcy Court granted a Chapter 13 discharge to Alex and Maria Lopez. At the time the Lopez’s discharged and avoided a secondary mortgage lien on their personal residence. The secondary mortgage lien was owned and serviced by OneWest. A judgment from the bankruptcy court voiding the OneWest lien was filed with the county recorder’s office.

The lawsuit filed by the Lopez’s alleges that despite the discharge and judgment, OneWest reported the Lopez’s account with continuing delinquencies of 180 days, past due balances and current account balances in months and years post bankruptcy discharge. All false and inaccurate.

The lawsuit alleges that in 2014, OneWest transferred the discharged mortgage debt to Ocwen Loan Servicing LLC. Soon after Ocwen began contacting the Lopez’s threatening foreclosure and urging them to discuss foreclosure alternatives.

The lawsuit alleges that Ocwen demanded through a series of letters that they pay over $50,000 and failure to pay would result in Ocwen reporting to the credit reporting agencies late and missed payments. Later, the lawsuit alleges that Ocwen furnished false and inaccurate mortgage information to the credit reporting agencies even though the Lopez’s had no banking or credit relationship with Ocwen. The Lopez’s never owed Ocwen any money and Ocwen never had a valid security interest in the Lopez’s property. Additionally, the complaint alleges that OneWest and Ocwen reviewed the Lopez’s credit reports multiple times without their permission.

In response to the lawsuit in 2016, Ocwen and OneWest allowed a $50,000 court judgment to be taken against them. The court judgment prohibits them from engaging in any of the acts as alleged in the lawsuit by reporting the Lopez’s secondary mortgage loan with a positive balance, past due amounts or delinquencies in the credit history since the Bankruptcy Court has voided the lien on the loan or failing to mention the Lopez’s discharge from bankruptcy or otherwise engaging in conduct with respect to the Lopez’s that would violate the Fair Credit Reporting Act, 15 U.S.C. § 1681s-2(b) and 15 U.S.C. 1681b(f) or Civil Code § 1785.25(a).

The Law Office of Balam O. Letona, Inc., represented Alex and Maria Lopez in this matter in the United States District Court, the Northern District of California.