Ocwen Files Motions for Restraining Orders and Injunctions Against Illinois and Massachusetts Mortgage Regulators
April 25 2017 - 1:24PM
Plans to appeal or respond to each of the
remaining state mortgage regulator actions in the coming
days Continues to seek an acceptable
resolution to resolve all state concerns
Ocwen Financial Corporation, (NYSE:OCN) (Ocwen or the Company),
today announced the filing of two emergency motions requesting
immediate court action restraining the cease and desist orders
brought by the Illinois Department of Financial and Professional
Regulation, Division of Banking and the Commissioner of Banks of
the Massachusetts Division of Banks.
As discussed in today’s legal filings, Ocwen
believes that the Illinois and Massachusetts orders will cause
significant harm to the consumers in those states, including
potentially those consumers with pending mortgage applications, and
those seeking loan modifications. Under these circumstances, Ocwen
has a responsibility to its customers, shareholders, and employees
to vigorously defend the Company. The allegations at issue do not
arise out of a recent assessment of Ocwen’s business activities.
Instead, they come from a 2015 multi-state examination of the
Company’s mortgage servicing business by the Multi-State Mortgage
Committee (MMC), which covered Ocwen’s activities from January 2013
to February 2015. The MMC concluded its examination well over a
year ago, in December 2015.
Over the course of almost two years, Ocwen and the
Company's Board of Directors have been in regular communication
with its state mortgage regulators, including those in Illinois and
Massachusetts. During those communications, Ocwen shared
information regarding the significant operational and programmatic
enhancements that the Company has made. For example, as it relates
to borrower escrow accounts, one of the primary areas of concern in
the orders at issue, independent reviews have consistently
confirmed Ocwen's escrow practices are in line with common industry
standards for timeliness and accuracy.
Ocwen plans to appeal or respond to each of the
remaining state mortgage regulators actions in the coming days. In
the meantime, Ocwen remains committed to working with Illinois,
Massachusetts, and the other state regulators to resolve any valid
concerns, and has commenced those efforts. Ocwen’s ability to help
homeowners at risk of foreclosure remain in their home through
responsible loan modifications continues to positively impact
communities across the country. From January 1, 2008 through March
31, 2017 Ocwen has:
- Granted a total of more than 735,000 loan modifications
throughout the U.S. and provided $12 billion in principal
forgiveness.
- In Illinois, provided more than 36,800 loan modifications.
Approximately 35 percent of these modifications included principal
forgiveness totaling more than $746 million, or on average $58,300
per loan.
- In Massachusetts, provided more than 17,300 loan modifications.
Approximately 29 percent of these modifications included principal
forgiveness totaling more than $294 million or on average $57,600
per loan.
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, litigations, 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 any
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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