Onity Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2026
Onity Group sues New York regulators over servicing fee rules
Lawsuit filed
Onity Group filed a federal lawsuit seeking clarification of how New York's mortgage-servicing regulation applies to optional expedited payment fees. The article reports that Onity alleges state regulators are threatening enforcement, fee refunds and civil penalties; the suit seeks clarification rather than a determination that the fees are legal or illegal.
Stated objective. Clarify how the New York regulation applies to charging consumers for optional expedited payment services.
Source excerpt
Onity is not asking whether the fees are legal or illegal. New York's rule allows for the borrower to be charged an amount reasonably related to the optional service's cost. The company is looking for judicial clarification of this part of the rule.
In the complaint, Onity alleges NYAG and NYDFS are threatening it with an enforcement action seeking the refund of all of these fees collected since October 2019, which is nine months prior to the effective date of compliance, June 15, 2020.
The company filed in the U.S. District Court for the Northern District of New York looking for clarity on how a New York mortgage servicing regulation applies to charging consumers for allowing them , a press release said.to make payments by telephone
2021
Federal judge grants Ocwen summary judgment against CFPB
Ruling
A federal judge in Florida granted Ocwen summary judgment against the Consumer Financial Protection Bureau. The ruling held that claims concerning servicing activities before February 26, 2017, had already been covered by the 2014 agreement and could not be relitigated; a count concerning timely cancellation of private mortgage insurance remained active.
Company response
Denial — Ocwen
"Throughout this litigation we have remained steadfast in our belief that the CFPB's claims regarding Ocwen's past servicing practices were without merit," a company press release said.
Source excerpt
A federal judge in Florida granted Ocwen a summary judgment victory over the Consumer Financial Protection Bureau in the final remaining matter from a series of cases filed in 2017.
"Throughout this litigation we have remained steadfast in our belief that the CFPB's claims regarding Ocwen's past servicing practices were without merit," a company press release said.
The final count that is active involves allegations regarding the by Ocwen. Marra denied both parties’ request for summary judgement for this part of the lawsuit.timely cancellation of private mortgage insurance
2013
Multistate mortgage-servicing misconduct settlement
Ocwen and Ocwen Loan Servicing entered a settlement with 49 states over alleged mortgage-servicing misconduct. The agreement included loan modifications, principal reductions, and cash payments for eligible homeowners. The controversy also preceded William Erbey's resignation from the company's board.
2002
Hanson v. Ocwen Federal Bank fee litigation
A class-action lawsuit alleged that late charges and fees had continued improperly over a period of years. The case, which included dozens of plaintiffs and sought substantial punitive damages, was settled out of court for an undisclosed amount.