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58 OCWEN REACHES SETTLEMENT IN HAMP, FHA SUITS Atlanta-based mortgage servicing firm Ocwen Financial disclosed that it has agreed to pay $30 million "in order to avoid the uncertain outcome of two trials" revolving around a pair of lawsuits that accused the company of falsely certifying its compliance with federal mortgage programs. e cases, known as the Fisher Cases because of whistleblower Michael Fisher, revolve around accusations stemming from 2012 that Ocwen lied to the Federal Housing Administration about its compliance with Home Affordable Modification Program, or HAMP, rules, as well as FHA insurance programs. According to Ocwen's filing with the Securities and Exchange Commission on June 22, those suits sought damages intended to triple the total HAMP and FHA payments made on Ocwen-serviced loans, or roughly $5,500 to $11,000 per alleged false claim. Ocwen's defense, according to the filing, was an assertion that it had "sound legal and factual defenses" to the allegations. Ocwen, however, announced that it would instead settle by paying $15 million to the Unted States (which made the HAMP and FHA payments on the Ocwen-serviced loans) and another $15 million for "private citizens' attorneys' fees costs." As part of the settlement, the company will not admit to any liability or wrongdoing for the alleged actions. According to the SEC filing, the Department of Justice agreed to seek final approval for the settlement. "We have accrued $30 million with respect to the settlement in principle because we believe this amount is both probable and reasonably estimable based on current information," Ocwen wrote in its SEC filing, adding, "ere can be no assurance that the settlement in principle will be finalized and approved by the United States and the Court." In the event the settlement in principle is not ultimately finalized and approved by the Department of Justice, the Fisher Cases would continue and "we would vigorously defend the allegations made against Ocwen," the company wrote. Ocwen spokesperson John Lovallo issued the following statement: "We are pleased to have reached an agreement in principle to resolve these two cases. Even though we have solid legal and factual defenses, we decided to settle to avoid prolonged and distracting litigation and the associated legal costs. Ocwen believes the proposed settlement is in the best interests of the company, its borrowers, employees and shareholders. We look forward to returning our full focus to what we do best— helping homeowners stay in their homes." ZOMBIE PROPERTY FIGHT REACHES NATIONAL LEVEL Following New York's lead, New Jersey wants federal legislation to take aim at "zombie" homes—vacant and abandoned properties— that plague the state's communities and drive down property values. With 4,000-plus zombie property foreclosures in 2015, New Jersey was the state with the most such filings last year. U.S. Senator Bob Menendez (D-New Jersey), the ranking member of the Senate's Subcommittee on Housing, Transportation, and Community Development, unveiled a plan recently that would help dethrone New Jersey from that dubious title by: » Requiring mortgage servicers to tell borrowers at the beginning of the foreclosure process they can remain in the home until state law requires them to leave; » Requiring the servicer to make clear to the borrower he or she remains responsible for the payment of any taxes, assessments, and other fees during the foreclosure process; » Requiring the servicer to make prompt notifications to both the borrower and the municipality where the property is located when it walks away from the foreclosure; » Prohibiting servicers from walking away from an initiated foreclosure unless the servicer releases the lien on the property and provides proper notice to the borrower and municipality on loans backed by Fannie Mae and Freddie Mac and insured by the Federal Housing Administration. » Requiring the Government Accountability Office and the Consumer Financial Protection Board to study and report on the prevalence and impact of abandoned foreclosures. "Zombie foreclosures threaten our communities and scare away new homebuyers and investors, which leads to neighborhood blight and plummeting values of surrounding properties," Menendez said. "is legislation stands up for New Jersey's struggling homeowners, and prevents the banks from turning their backs on borrowers, on their neighbors, and on the community at large." New York recently enacted similar legislation at the state level, when Governor Andrew Cuomo signed the bill, touted as a boon for the economic health and public safety of those communities in which these properties are located. It will also help those homeowners who are at risk of losing their homes due to foreclosure. Last month, Ohio enacted legislation at the state level to expedite the foreclosure process and reduce the amount of time that properties remain vacant. Five Star Institute President and CEO Ed Delgado has publicly called for solutions to the vacant and abandoned property issue that is sweeping the country, calling it an "epidemic" and a "community crisis of national proportions." Earlier this year, Delgado met with HUD Secretary Julián Castro to discuss the possibility of HUD issuing a mortgagee letter to address the vacant and abandoned properties issue. Foreclosure inventory is down 24.5 percent year- over-year according to CoreLogic. KNOW THIS

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