Aurora Pays $5.3M To End Calif. Mortgage Modification Suit

Law360, New York (May 16, 2014, 2:27 PM ET) -- Fallen subprime lending titan Aurora Loan Services LLC will pay $5.3 million to resolve a class action alleging it used deceptive mortgage forbearance agreements to extract unearned payments from distressed California borrowers, according to settlement papers filed Thursday.

The settlement fund will compensate more than 15,000 mortgagors in California who entered into so-called workout agreements for curing their loan defaults and were later foreclosed on. The $5.3 million payment includes the plaintiffs' attorneys' fees and will be distributed to class members on a pro rata basis,...
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