Ocwen Enters Into Comprehensive Settlement With California Department of Business Oversight
February 17 2017 - 7:18PM
California lifts the acquisition ban on
mortgage servicing rights in California
Ocwen Financial Corporation (NYSE:OCN) (Ocwen or the Company) today
announced a comprehensive settlement and termination of the January
2015 Consent Order between Ocwen Loan Servicing, LLC and the State
of California Department of Business Oversight (DBO), without
admitting any wrongdoing.
Under this settlement, the DBO will lift its prior restriction
on Ocwen’s ability to acquire mortgage servicing rights associated
with California properties, and will terminate the engagement of
the independent auditor, which has been in place under the
prior Consent Order in California.
In addition, Ocwen has agreed to pay a cash settlement of $25
million to the DBO. As previously communicated, the Company has
reserved for this settlement as of September 30, 2016. Ocwen will
also provide an additional $198 million in debt forgiveness through
loan modifications to existing California borrowers over a three
year period, as permitted under various servicing agreements.
“Ocwen is pleased to have reached a comprehensive settlement
with the DBO related to matters the agency raised, and we will
quickly move forward to implement all terms associated with this
agreement,” commented Ron Faris, President and CEO of Ocwen. “The
settlement resolves claims between Ocwen and the DBO without the
Company admitting to any wrongdoing, and will allow us to focus on
our business going forward, while reducing a significant expense by
terminating the engagement of the independent auditor.”
Ocwen is recognized as the national leader in responsible home
retention through foreclosure prevention. Since January 1, 2008,
Ocwen has granted a total of more than 720,000 loan modifications,
many that included a principal reduction throughout the United
States.
“Since 2008, Ocwen has helped more than 91,000 California
homeowners avoid foreclosure through loan modification programs,”
added Mr. Faris. “A homeowner whose loan is serviced by Ocwen has a
much better chance of avoiding foreclosure than if their loan is
serviced by other large mortgage servicers. This has been confirmed
by numerous independent third-party studies, which consistently
find that Ocwen has a superior record helping borrowers bring their
payments current, stay current, and repay their mortgage.”
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding
company which, through its subsidiaries, originates and services
loans. We are headquartered in West Palm Beach, Florida, with
offices throughout the United States and in the U.S. Virgin Islands
and operations in India and the Philippines. We have been serving
our customers since 1988. We may post information that is important
to investors on our website (www.Ocwen.com).
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements may be identified by a
reference to a future period or by the use of forward-looking
terminology.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Our business has been
undergoing substantial change which has magnified such
uncertainties. Readers should bear these factors in mind when
considering such statements and should not place undue reliance on
such statements. Forward-looking statements involve a number of
assumptions, risks and uncertainties that could cause actual
results to differ materially. In the past, actual results have
differed from those suggested by forward-looking statements and
this may happen again.
Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, the following: our servicer and
credit ratings as well as other actions from various rating
agencies, including the impact of downgrades of our servicer and
credit ratings; adverse effects on our business as a result of
regulatory investigations or settlements; reactions to the
announcement of such investigations or settlements by key
counterparties; increased regulatory scrutiny and media
attention, uncertainty related to claims, due to rumors or
otherwise, litigation and investigations brought by government
agencies and private parties regarding our servicing, foreclosure,
modification and other practices, including uncertainty related to
past, present or future investigations and settlements with state
regulators, the CFPB, State Attorneys General, the SEC, Department
of Justice or HUD and actions brought under the False Claims Act by
private parties on behalf of the United States of America regarding
incentive and other payments made by governmental entities; any
adverse developments in existing legal proceedings or the
initiation of new legal proceedings; our ability to effectively
manage our regulatory and contractual compliance obligations; our
ability to contain and reduce our operating costs, including our
ability to successfully execute on our cost improvement initiative;
the adequacy of our financial resources, including our sources of
liquidity and ability to sell, fund and recover advances, repay
borrowings and comply with debt covenants, including the financial
and other covenants contained in them; volatility in our stock
price; the characteristics of our servicing portfolio, including
prepayment speeds along with delinquency and advance rates; our
ability to successfully modify delinquent loans, manage
foreclosures and sell foreclosed properties; uncertainty related to
legislation, regulations, regulatory agency actions, government
programs and policies, industry initiatives and evolving best
servicing practices; as well as other risks detailed in Ocwen's
reports and filings with the Securities and Exchange Commission
(SEC), including its annual report on Form 10-K for the year ended
December 31, 2015 and its current and quarterly reports since such
date. Anyone wishing to understand Ocwen's business should review
its SEC filings. Ocwen's forward-looking statements speak only as
of the date they are made and, we disclaim any obligation to update
or revise forward-looking statements whether as a result of new
information, future events or otherwise.
FOR FURTHER INFORMATION CONTACT:
Investors: |
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Media: |
Stephen
Swett |
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John
Lovallo |
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Dan
Rene |
T: (203)
614-0141 |
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T: (917)
612-8419 |
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T: (202)
973 -1325 |
E:
shareholderrelations@ocwen.com |
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E:
jlovallo@levick.com |
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E:drene@levick.com |
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