We recently obtained a jury verdict and judgment against Ocwen Loan Servicing, LLC (“Ocwen”) in the United States District Court for the Eastern District of California on behalf of our clients, Frank and Dora Cornejo (Case No: 1:15-cv-00993-JLT) on the claim that Ocwen foreclosed on their home in violation of Cal. Civ. Code §2923.6, which prohibits “dual tracking.” “Dual tracking” occurs when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure.

In post-judgment motions, Ocwen has asked that the Court overturn the jury verdict. In those motions, Ocwen has not only admitted that it has a practice of “dual pathing” but goes so far as to claim that this practice is both legal and is somehow designed to benefit the borrower. As stated at page 3 of its Reply Memorandum, filed January 25, 2017 [Docket Entry 127]: “During trial, Ocwen explained that it employs a dual path with its defaulted borrowers. After working with borrowers to find a winning solution, Ocwen pursues foreclosure on one path and pursues alternatives to foreclosure on the other path.” (Bold added).

We argued that Ocwen’s admitted practice of “dual pathing” was just another term for the prohibited practice of “dual tracking”.  Fortunately the jury agreed and awarded our clients both actual economic damages and treble statutory damages.

We are presently investigating other cases involving both Ocwen and other loan servicers.

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