Ocwen Files Amendment No. 1 to 2016 Annual Report on Form 10-K to Amend Note 26 – Contingencies
May 16 2017 - 6:30AM
Ocwen Financial Corporation (NYSE:OCN) (Ocwen, the Company, we, us
or our) yesterday filed Amendment No. 1 (Amendment) to the
Company’s Annual Report on Form 10-K for the year ended December
31, 2016 (Original Form 10-K) to restate our previously issued
consolidated financial statements for the year ended December 31,
2016. The Amendment is related to a confidential memorandum
of understanding (MOU) with the Multistate Mortgage Committee
(MMC), which was confidential under various state laws until made
public by certain state regulators on April 20, 2017, and to
certain actions undertaken by state regulators on April 20, 2017
and subsequently.
The Amendment did not result in any changes to
the Company’s consolidated financial statements and related
footnote disclosure, other than the changes to the disclosure in
Note 26 – Contingencies. Except as described above, the
Amendment does not amend, update or change any other items or
disclosures in the Original Form 10-K and does not reflect any
information or events subsequent to the initial filing date of the
Original Form 10-K.
In addition, in connection with the Amendment,
management re-evaluated the effectiveness of the Company’s
disclosure controls and procedures and internal control over
financial reporting as of December 31, 2016. Management has
concluded that the Company’s disclosure controls and procedures and
internal controls over financial reporting were not effective as of
December 31, 2016 solely due to a material weakness that resulted
in the failure to provide disclosure of the MOU. The Company is
evaluating the necessary changes to its controls to remediate this
weakness and expects to provide an update in its June 30, 2017 Form
10-Q.
Yesterday, Ocwen also filed its Quarterly Report on Form 10-Q
for the fiscal quarter ended March 31, 2017.
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: adverse impacts on the Company as a result of it filing
an amended 2016 Annual Report on Form 10-K with the Securities and
Exchange Commission (SEC) or a Form 12b-25 in connection with its
first quarter 2017 Quarterly Report on Form 10-Q, including adverse
impacts due to reactions to such events by lenders, rating
agencies, vendors or other counterparties, regulators or others;
uncertainty related to claims, litigation, cease and desist orders
and investigations brought by government agencies and private
parties regarding our servicing, foreclosure, modification,
origination and other practices, including uncertainty related to
past, present or future investigations, litigation, cease and
desist orders and settlements with state regulators, the Consumer
Financial Protection Bureau (CFPB), State Attorneys General, the
SEC, the Department of Justice or the Department of Housing and
Urban Development (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; adverse effects on our business as a result of regulatory
investigations, litigation, cease and desist orders or settlements;
reactions to the announcement of such investigations, litigation,
cease and desist orders or settlements by key counterparties,
including lenders and others; increased regulatory scrutiny and
media attention; 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; our
servicer and credit ratings as well as other actions from various
rating agencies, including the impact of prior or future downgrades
of our servicer and credit ratings; 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 SEC, including its amended 2016 Annual
Report on Form 10-K/A 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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