Ocwen Monetary filed a petition for writ of mandamus within the fifth U.S. Circuit Court docket of Appeals to dismiss a case involving representations in mortgage modifications.
The attraction follows the denial of an earlier movement to dismiss the lawsuit, Eichner et al. v. Ocwen Mortgage Servicing, in U.S. District Court docket final month.
At subject within the whistleblower case are alleged False Claims Act violations the mortgage servicer made within the context of the Division of the Treasury’s Residence Reasonably priced Modification Program.
Jean-Marc Eichner is a former worker who separated from the corporate previous to the pandemic. He and fellow plaintiff Brandon Loyd filed their unique claims underneath seal in July 2019, in line with courtroom paperwork.
Along with Ocwen, a number of monetary establishments that served as trustees for the securitized mortgages concerned face allegations within the Eichner litigation. Plaintiffs allege that the trustees have been “vicariously responsible for the actions of the Ocwen defendants.”
Ocwen Monetary and a number of other different mortgage-related entities have settled many servicing claims from the Nice Recession, when a wave of distressed loans overwhelmed the market following a housing crash.
Ocwen had sought to finish FCA claims from that interval with a $30 million multistate settlement, but it surely’s nonetheless litigating some points concerned with the Client Monetary Safety Bureau in Florida, its petition reveals. These points have been carved out of that settlement.
The mortgage firm’s new petition asks the appeals courtroom to dismiss the Eichner lawsuit provided that the prior Fisher v. Ocwen Mortgage Servicing case already launched the claims at subject.
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