The banking subsidiary of CIT Group Inc. has agreed to settle claims by the servicing subsidiary of Ocwen Financial Corp. that it should have been reimbursed for servicing errors.
Back in June 2013, CIT Bank, N.A., sold mortgage servicing rights to Ocwen Loan Servicing LLC. The deal called for CIT to indemnify Ocwen for losses from servicing errors.
But Ocwen claims that
CIT Bank, formerly known as OneWest Bank FSB, failed to meet its contractual obligations to indemnify it for losses from servicing errors prior to the sale.
So in August 2016, Ocwen filed a demand for arbitration against CIT, according to a Form 8-K filing with the Securities and Exchange Commission on Friday.
On Nov. 22 of this year, the two firms agreed to settle the dispute for $29.9 million.
