Iowa joins settlement in mortgage services matter

DES MOINES, Iowa (AP) — Borrowers in Iowa are set to receive about $3.5 million as part of a multistate settlement with a Georgia-based mortgage services company over allegations of misconduct.

Attorney General Tom Miller says the money will be provided to borrowers associated with 864 foreclosed loans for mortgage principal reductions.

Miller says the payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000.

The Consumer Financial Protection Bureau and 49 state attorneys general announced the $2.1 billion deal Thursday with Ocwen Financial Corp. and its subsidiary, Ocwen Loan Servicing.

Regulators say Ocwen pushed borrowers into foreclosure through illegal actions, such as failing to promptly and accurately credit mortgage payments.

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