- by Jim Freer
A jury in Galveston, Texas, has awarded $11.5 million to a customer of
Ocwen Financial Corp. and its former Ocwen Federal Bank subsidiary,
after determining they committed fraud in servicing her home equity
loan.
The verdict against West Palm Beach-based Ocwen Financial (NYSE: OCN)
and Ocwen Federal was issued Tuesday in Texas's 212th District Court.
The jury ordered the Ocwen companies to pay Sealy Davis $10 million in
actual damages and about $1.5 million for mental anguish and economic
damages.
Ocwen Financial had $1.3 billion in assets on Sept. 30, according to its Securities and Exchange Commission filings.
The jury found the Ocwen companies made fraudulent, deceptive and
misleading representations to Davis after she missed a loan payment
while hospitalized in 2003.
Documents filed in the civil suit assert Ocwen began demanding
additional money to make up for the missed payment and then began
foreclosure proceedings on Davis's home in Texas City, Texas.
Davis retained the home after filing for Chapter 13 bankruptcy protection, court documents state. MORE
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