Ocwen Financial Corporation (NYSE:OCN) (Ocwen or the Company) today
issued the following statement in response to the legal action
filed by the Consumer Financial Protection Bureau (CFPB) related to
allegations concerning the Company’s mortgage servicing business:
“Ocwen strongly disputes the CFPB’s claim that Ocwen’s mortgage
loan servicing practices have caused substantial consumer harm. In
fact, just the opposite is true. Ocwen believes its mortgage loan
servicing practices have and continue to result in substantial
benefits to consumers above and beyond other mortgage servicers.
The substantive allegations in today’s suit are inaccurate and
unfounded. Indeed, the Company is unaware of the CFPB conducting
any detailed review of Ocwen’s loan servicing files. Rather, the
CFPB suit is primarily based on the CFPB’s flawed review of data
and its self-serving conclusion about isolated instances where
Ocwen self-identified ways we can do better.
Ocwen fully cooperated with the CFPB’s inquiries, and sought to
find a fair and reasonable solution to the extent the CFPB
identified legitimate concerns. Indeed, Ocwen continued to work
with the CFPB until the suit was filed. Under these circumstances,
Ocwen has a responsibility to its customers, shareholders, and
employees to vigorously defend the Company against these unfounded
claims.
Ocwen is recognized as the industry leader in responsible home
retention through foreclosure prevention. A homeowner whose loan is
serviced by Ocwen has a much better chance of avoiding foreclosure
than if their loan is serviced by any other large mortgage
servicer. This has been confirmed by independent third-party
studies, which find that Ocwen has a superior record helping
borrowers bring their payments current, stay current, and repay
their mortgage.
Since January 1, 2008, Ocwen has granted over 735,000 loan
modifications, including approximately 75,000 in 2016, and Ocwen is
responsible for 20% of all modifications under the U.S. Department
of the Treasury Home Affordable Modification Program, the federal
government’s leading modification program. Ocwen also has provided
billions of dollars in principal forgiveness to homeowners at risk
of foreclosure. In addition, Ocwen has worked closely with its
Community Advisory Council, a diverse group of national, regional,
and local non-profit housing counseling, community development, and
civil rights organizations, to maximize Ocwen’s positive impact in
communities across the country.
Ocwen is proud of its corporate-wide commitment to a culture of
integrity, transparency, compliance, and service. The Company
continues to invest substantial resources to achieve and maintain
its position as a leader in the industry. For example, Ocwen has
increased compliance spending significantly since 2013, and added
more than 350 team members in the risk, audit, and compliance areas
focused on meeting our responsibilities.
The claims filed by the CFPB, however, completely ignore all of
this. The alleged penalties and relief the CFPB seeks, if awarded,
would likely harm the very consumers whom the CFPB is sworn to
protect because they would needlessly divert money and time which
would be better spent on helping our customers better afford and
remain in their homes. This unreasonable action is an
unfortunate example of overreaching by the CFPB. Many of the
issues raised in today’s suit, including those related to the
Company’s foreclosure policies and the effectiveness of its
servicing system, were addressed by the National Mortgage
Settlement (NMS), which the CFPB and Ocwen signed in December 2013.
In addition, Ocwen believes the CFPB’s allegations concern only a
small percentage of Ocwen’s 1.3 million customers, and Ocwen has
repeatedly assured the CFPB that it will remediate, and in many
instances already has remediated, any legal harm experienced by
these customers. Given these facts, today’s suit can only be
viewed as a politically-motivated attempt by the CFPB to grab
headlines in reaction to the change of administration and recent
scrutiny of the CFPB’s activities.
Ocwen fully supports government regulation that promotes
principles designed to protect the best interests of our customers
and promote consistent best practices across the marketplace. Ocwen
believes this suit does not advance any of those principles.”
Separately, we have just received various orders from state
mortgage regulators, and are in the process of reviewing them in
detail. We will respond promptly to all of the matters raised
after a full review. We believe we are properly licensed in all of
the states where we conduct business.
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;
claims, 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 government 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, 2016 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:
Stephen Swett
T: (203) 614-0141
E: shareholderrelations@ocwen.com
Media:
John Lovallo
T: (917) 612-8419
E: jlovallo@levick.com
Dan Rene
T: (202) 973 -1325
E:drene@levick.com
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