Ocwen cleared of wrongdoing in multi-billion dollar mortgage bond fight

Early in 2015, a group of mortgage bond investors that reportedly includedBlackRockMetLife, and Pimco accused Ocwen Financial of violating its duties as a mortgage servicer by failing to properly collect payments on $82 billion of home loans and accused Ocwen of engaging in “imprudent and improper servicing practices.”

The investors, represented by the law firm of Gibbs & Bruns, went on to accuse Ocwen of costing them $26 billion, stating that if other mortgage servicers provided the services done by Ocwen for the residential mortgage-backed securities trusts in question, the investors would have received approximately $26 billion more in cash flows.

But now, after a yearlong independent investigation initiated by Wells Fargo, the deals’ master servicer, found no evidence of the litany of accusations made by Gibbs & Bruns on behalf of the investors, Ocwen is off the hook.

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