A New York appellate court ruled in favor of Glenwall Hugh Richards, a homeowner, in a mortgage foreclosure case against Ocwen Loan Servicing, LLC. The court's decision, made on November 12, 2026, determined that Richards was entitled to have his mortgage canceled and to receive $15,000 in attorney fees. This ruling is significant as it reinforces the legal protections for homeowners against foreclosure actions that may be time-barred.

The case, Ocwen Loan Servicing, LLC v. Richards, was filed under docket number 2023-05543. It highlights the ongoing disputes in mortgage servicing and foreclosure practices, particularly in light of new legislation aimed at preventing foreclosure abuse.

Background

Ocwen Loan Servicing, LLC, a mortgage servicing company, initiated this foreclosure action against Glenwall Hugh Richards in November 2017. The dispute arose over a mortgage on a property located in New Rochelle, New York. Richards responded to the foreclosure action with an answer that included various affirmative defenses, notably the expiration of the statute of limitations, and he filed counterclaims to cancel the mortgage and seek attorney fees.

After a nonjury trial in January 2019, a referee concluded that the foreclosure action should be dismissed because it was time-barred, ruling in favor of Richards. The referee's report led to a June 2019 order from the Supreme Court, which granted Richards' motion to confirm the report and dismissed the foreclosure complaint. However, in September 2021, Ocwen sought to renew its opposition based on a legal precedent established in a separate case, Freedom Mortgage Corp. v. Engel.

The Ruling

The appellate court upheld the lower court's decision, which vacated an earlier order that had allowed Ocwen to renew its motion against Richards. The court ruled that Richards was entitled to judgment on his counterclaims, which included the cancellation of the mortgage and an award of attorney fees. The judges involved in this decision were Betsy Barros, Cheryl E. Chambers, Laurence L. Love, and James P. McCormack.

The court stated, "the Supreme Court properly, upon renewal, in effect, vacated the December 2021 order and the amended order and judgment, and thereupon, denied the plaintiff's prior motion for leave to renew."

This ruling effectively confirmed that the mortgage was canceled and that Richards was owed attorney fees. The court also dismissed Ocwen's appeal from an earlier order dated May 19, 2023, stating that the right of direct appeal had ended with the entry of the order and judgment.

Impact

This ruling has broader implications for homeowners facing foreclosure. It reaffirms the importance of statutory limitations in foreclosure actions and emphasizes that mortgage servicers must adhere to legal timelines. The decision also highlights the impact of the Foreclosure Abuse Prevention Act (FAPA), which was enacted to protect homeowners from aggressive foreclosure practices.

The court's ruling may encourage other homeowners in similar situations to assert their rights against foreclosure actions that may be outdated or improperly filed. It also signals to mortgage servicers that they must be vigilant in their practices to avoid legal challenges based on the statute of limitations.

What's Next

Details were not available in the court filing regarding whether Ocwen Loan Servicing plans to appeal this decision. However, the outcome of this case may influence similar pending cases related to mortgage foreclosure practices in New York.