Married Couple Blames Denied Mortgage, Lost Deposit on Ocwen’s ‘Inaccurate’ Credit Reporting

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Two California consumers have filed suit against Ocwen Loan Servicing, LLC; Ocwen Mortgage Servicing, Inc.; and Ocwen Financial Corporation claiming the loan servicing companies failed to report that a previous loan had been discharged in bankruptcy, which caused them to lose their deposit on a new home. The complaint explains that the plaintiffs – a married couple – owed money on a previous property and received a discharge of the debt after the husband filed for bankruptcy in 2009. In 2015, the case continues, they had been preliminarily approved for a loan on a new property when an adverse credit report suggested the wife still owed money on the discharged debt. The lawsuit argues that since the couple was married at the time the husband filed for bankruptcy, the debt should have been reported as discharged for both husband and wife. As a result of Ocwen’s inaccurate reporting, the case suggests, the plaintiffs were denied the loan and lost their $8,175.00 deposit.

The suit, originally filed in state court, has recently been removed to the District Court for the Northern District of California.