Ocwen Financial Corporation voluntarily refunds prepayment penalties to mortgage borrowers. The company acts on behave of lenders to collect mortgage payments from homeowners. In Maryland, prepayment penalty charges are illegal if the lending company is chartered in Maryland. This is the one ethical state that actually advocates protecting consumers from unscrupulous mortgage contracts.
Please read all mortgage loan contracts very carefully. If there is a prepayment penalty clause, simply renegotiate or find a more reasonable lender because it is ludicrous for lenders to lock you in an endless debt cycle.
Ocwen knew it was wrong, and did the right thing before charges were brought up by the State of Maryland.
http://www.bizjournals.com/baltimore/stories/2009/07/06/daily36.html
