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Ocwen fined $1 million for force-placed insurance issues

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Ocwen Financial will pay a fine of $1 million for running afoul of the terms of the National Mortgage Settlement by not properly refunding force-placed insurance premiums to certain borrowers during the first quarter of 2017.

The fine, which was first reported by Law 360, stems from Ocwen failing one of the National Mortgage Settlement’s servicing metrics related to force-placed insurance, which is applied to borrowers who cannot or do not provide evidence that they have homeowner’s insurance.

The metric in question, Metric 29, measures whether Ocwen terminated force-placed insurance and refunded premiums to affected borrowers in a timely manner. Specifically, Ocwen is required to terminate force-placed insurance policies and refund prorated premiums within 15 days of receiving evidence of the borrower’s existing insurance policy.

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