Ocwen $1.2M Foreclosure Fees Class Action Settlement, Florida Borrowers Get $14-$329 Automatically—No Claim Form Required
Ocwen Financial Corp. agreed to a $1.2 million settlement for Florida borrowers who were charged improper foreclosure fees between specific periods. Nearly 40,000 class members qualify for automatic payments ranging from $14.14 to $329.14 depending on which fees Ocwen assessed. No claim form is required—the settlement administrator has all necessary information and will distribute payments automatically. Final approval hearing is February 19, 2026.
If Ocwen serviced your Florida mortgage and charged you foreclosure-related fees, you’re likely eligible for payment without taking any action.
What Is the Ocwen Foreclosure Fees Settlement About?
The lawsuit, L’italien v. Ocwen, alleges Ocwen Financial Corporation charged Florida borrowers improper and illegitimate fees during foreclosure proceedings in violation of state law. The complaint claims Ocwen sought to collect fees for:
Services Not Performed: Charging for property maintenance or inspections that were never completed.
Unknown Tenant or Spouse Service Fees: Billing for service of process on unknown tenants or spouses who may not exist.
Nonexistent Registration Fees: Charging a property registration fee in West Palm Beach that doesn’t actually exist.
Ocwen denies all allegations. The settlement includes no admission of wrongdoing or liability. The company agreed to settle to avoid continued litigation costs and uncertainty.
Who Qualifies for the Settlement?
The settlement divides eligible borrowers into three subclasses based on the types of fees Ocwen charged. You can be a member of one, two, or all three classes:
Property Maintenance Class: Borrowers who were charged property maintenance fees during foreclosure (approximately 1,700 members with resolved loans).
Service of Process Class: Borrowers charged fees for service of process on unknown tenants or spouses (approximately 13,000 members with resolved loans).
Attorneys’ Fees Class: Borrowers charged improper attorneys’ fees during foreclosure (approximately 29,000 members with resolved loans).
If you qualify for multiple classes, you’ll receive the sum of all applicable awards.
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How Much Will You Receive?
Payment amounts depend on which subclass(es) you belong to:
Property Maintenance Class: $250.00 per eligible borrower with resolved loans
Service of Process Class: $65.00 per eligible borrower with resolved loans
Attorneys’ Fees Class: $14.14 per eligible borrower with resolved loans
Maximum Total Payment: $329.14 if you qualify for all three classes ($250 + $65 + $14.14)
These payments apply to borrowers with “resolved loans”—loans that have reached a final outcome or disposition. If you’re currently in an active foreclosure case, your settlement payment will be applied as a credit reduction to your current debt rather than a direct cash payment.
No Claim Form Required
Unlike most class action settlements, Ocwen class members do not need to file a claim to receive compensation. The settlement administrator already has all necessary information from Ocwen’s records to identify eligible class members and calculate payments.
Payments will be distributed automatically via check to the address on file after the court grants final approval and any appeals are resolved. This automatic payment structure is similar to mechanisms used in the Walmart weighted groceries settlement where eligible customers received payments without filing claims.
Active Foreclosure Cases
If you’re currently a defendant in an active Florida foreclosure case and qualify as a class member, your settlement benefits work differently. Instead of receiving a direct cash payment, the settlement administrator will apply your payment amount as a reduction to your current mortgage debt.
Similarly, if you have an active mortgage loan serviced by Ocwen as of October 21, 2025, your settlement payment will reduce the balance you owe rather than being issued as a check.
Critical Settlement Dates
Preliminary Approval: December 17, 2025
Final Approval Hearing: February 19, 2026
Payment Distribution: After final approval and resolution of any appeals
Checks will be mailed to the address Ocwen has on file. Settlement checks must be cashed within 180 days of issuance or they become void.
Understanding RESPA and Foreclosure Fee Violations
The Real Estate Settlement Procedures Act (RESPA) regulates how mortgage servicers handle fees and charges. Section 6 of RESPA requires servicers to respond to borrower inquiries and disputes about fees within specific timeframes.
Florida consumer protection statutes also prohibit unfair and deceptive trade practices, including charging for services not performed or assessing nonexistent fees. The lawsuit alleges Ocwen’s fee practices violated these state consumer protection laws.
Similar foreclosure servicing issues have generated significant litigation. The T-Mobile hidden fees class action demonstrates how companies charging unauthorized fees face consumer protection consequences, even in different industries.
What to Do Next
Update Your Address: If you’ve moved since Ocwen serviced your loan, contact the settlement administrator immediately to update your mailing address.
Monitor Your Mail: Watch for settlement checks arriving after final approval.
Cash Checks Promptly: Settlement checks expire 180 days after issuance.
Contact Settlement Administrator with Questions:
L’italien v. Ocwen Class Administrator
P.O. Box 3518
Portland, OR 97208-3518
Phone: 1-888-913-6110
Email: [email protected]
Website: OcwenFloridaSettlement.com
Objection and Opt-Out Rights
While class members receive automatic payments without filing claims, you still have rights to object to the settlement or opt out if you prefer to pursue individual legal action.
If you believe the settlement isn’t fair or adequate, you can file a written objection with the court before the deadline specified in the settlement notice. Check OcwenFloridaSettlement.com for objection procedures and deadlines.
If you want to exclude yourself from the settlement and preserve your right to sue Ocwen individually, you must submit a written opt-out request by the deadline. Opting out means you receive no settlement payment but can pursue your own lawsuit.
Tax Implications
Settlement payments may be taxable income, though payments reimbursing improperly charged fees might not be taxable. The settlement administrator may issue IRS Form 1099 for payments meeting reporting thresholds.
Consult a tax professional about your specific situation, as settlement taxation depends on whether payments represent reimbursement of fees paid or compensation for damages.
What Happens to Unclaimed Funds
If settlement checks go uncashed or are undeliverable, those funds typically revert to a cy pres recipient (a nonprofit organization) or may be redistributed among class members who cashed their checks, depending on settlement terms.
Frequently Asked Questions
Do I need to do anything to receive payment?
No. This is an automatic payment settlement. The settlement administrator will mail checks to eligible class members without requiring claim forms.
What if Ocwen no longer services my loan?
You still qualify if Ocwen serviced your loan during the period when the improper fees were charged. Current servicing status doesn’t affect eligibility.
What if I lost my home to foreclosure?
You may still qualify for payment if Ocwen charged you the improper fees during foreclosure. “Resolved loans” include foreclosures that have been completed.
Can I still get payment if I’m in active foreclosure?
Yes, but the payment will be applied as a credit to reduce your current debt rather than issued as a direct check payment.
What if my address changed?
Contact the settlement administrator immediately at 1-888-913-6110 or [email protected] to update your address before payments are distributed.
How long do I have to cash my settlement check?
Settlement checks expire and become void 180 days (approximately 6 months) after issuance. Cash them promptly when received.
What if I never received a notice about this settlement?
You may still be eligible. Visit OcwenFloridaSettlement.com or contact the administrator at 1-888-913-6110 to verify your eligibility and ensure they have your current address.
Last Updated: January 19, 2026
Disclaimer: This article provides general information about the Ocwen Foreclosure Fees Class Action Settlement based on publicly available settlement information. It does not constitute legal advice. Settlement terms are subject to final court approval on February 19, 2026. For specific questions about your eligibility or settlement benefits, contact the settlement administrator at 1-888-913-6110.
Sources:
- L’italien v. Ocwen – Florida Class Action Settlement
- OcwenFloridaSettlement.com – Official Settlement Website
- Settlement Administrator Notice – Preliminary Approval December 17, 2025
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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