Industry NewsMortgage

Embattled Ocwen reports nearly $600M loss for 4Q

Mortgage servicer saddled with $150M settlement with New York regulators

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Still saddled with a $150 million total regulatory settlement announced late last year, Ocwen Financial Corp. has announced a preliminary loss of $598.4 million for the fourth quarter of 2014. That’s a loss of $4.77 per share, compared with net income of $134.3 million, or 95 cents per share, in the same period of 2013. The nation’s largest nonbank mortgage servicer has been struggling under the weight of a hefty settlement it reached in December with the New York Department of Financial Services over the way it handled foreclosures and failed to appropriately respond to borrower requests for loan information, and for performing core servicing functions on inadequate systems. Under the terms of the settlement, Ocwen agreed to pay a $100 million civil money penalty and $50 million in restitution to current and former New York borrowers who had foreclosure actions filed against them between 2009 and 2014. CEO William C. Erbey stepped down in January, ending a 30-year career. ...