World News: 11:30 GMT Friday 21st April 2017. [Ocwen Financial Corp. via Globe Newswire via SPi World News]
WEST PALM BEACH, Fla., April 21, 2017 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE:OCN) (Ocwen or the Company) today issued the following statement in response to receiving cease and desist orders from state mortgage regulators (State Regulators):
“As with the recent CFPB enforcement action, Ocwen strongly disputes the key allegations made in the State Regulators’ cease and desist orders that Ocwen’s mortgage loan servicing practices have caused substantial consumer harm. Ocwen will not sign unfair and unjust consent orders that make impractical demands that no other market participant could rationally accept, and which would harm consumers. Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the Company against unfounded claims while continuing to work with State Regulators to resolve any valid concerns.”
Below are the Company’s views on the main topics of the State Regulators’ filings of April 20, 2017:
Ocwen has provided State Regulators with an estimate of the expected expense of an individual loan escrow account review for approximately 2.5 million loans over a four-year period, which a third party estimated to be $1.5 billion, or approximately $600 per file. This review cost did not relate in any way to amounts in escrow accounts or to customer funds. The Company has also provided an alternative of a statistically sound sampling methodology recommended by an independent third party. This alternative is consistent with methods used in other regulatory settlements and with the Multi-State Mortgage Committee’s (MMC) examination manual practices. The Company has engaged the independent review firm to conduct this review.
Ocwen provides a variety of financial information to select individual states as well as the MMC, such as recurring liquidity reports, monthly results, and future financial and cash projections. Additionally, it completed a comprehensive business plan in December 2016, and provided a robust going concern analysis prepared in conjunction with the issuance of Ocwen’s annual report. Despite this remarkable transparency, the MMC continues to ask Ocwen how it would handle “contingent liabilities” such as a hypothetical settlement with CFPB and the escrow analysis described above.
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.
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 ().
FOR FURTHER INFORMATION CONTACT:
T: (203) 614-0141
T: (917) 612-8419
T: (202) 973 -1325
Globe Newswire: 11:30 GMT Friday 21st April 2017
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