Ocwen Financial comments on the conclusion of the mediation with
WEST PALM BEACH, Fla., January 06, 2021 (GLOBE NEWSWIRE) – Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage provider and originator, issued today ‘ hui the following statement in response to the mediator’s opinion that the Company’s court-ordered mediation with the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) has been terminated. The parties were unable to reach a settlement relating to the lawsuit brought by the CFPB in 2017 against the Company concerning certain asset maintenance activities.
“We are disappointed that settlement discussions with the CFPB have not resolved this issue, particularly since we resolved all state regulatory actions filed against Ocwen in April 2017, most recently through a settlement reached with the State of Florida in October 2020. We have engaged with the Office in good faith throughout the mediation and numerous related discussions and have taken all steps to attempt to reach a just and reasonable resolution. We remain firmly convinced that the CFPB’s allegations regarding Ocwen’s past service practices are unfounded and that the Bureau’s claims do not reflect the merits of this case. this pre-trial case, our summary judgment motion filed on June 5, 2020 supports our position on this case, and we will continue to defend ourselves vigorously ment in the future. “
The Company increased its legal and regulatory expenses related to the CFPB matter by $ 13.1 million in the fourth quarter of 2020 as a result of its efforts to resolve the matter at mediation.
About Ocwen Financial Corporation
Ocwen Financial Corporation (NYSE: OCN) is a leading provider and originator of non-bank mortgages providing solutions through its leading brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the nation’s largest service providers, focused on delivering a variety of loan and service programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and offering loans that help clients meet their personal and financial needs. Our head office is located in West Palm Beach, Florida with offices in the United States and the United States Virgin Islands and operations in India and the Philippines, and we have been serving our clients since 1988. For more information, please visit our website (www.ocwen.com).
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 reference to a future period or by the use of forward-looking terminology. Forward-looking statements are generally identified by words such as “expect”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “objective”, “strategy”, “Plan” “objective” and “plan” or conditional verbs such as “will”, “can”, “should”, “could” or “could” or the negative of these terms, although not all forward-looking statements contain not those words. Forward-looking statements, by their nature, deal with matters that are, to varying degrees, uncertain. We are going through a period of volatile capital markets and experiencing significant changes in the mortgage lending and services ecosystem that have amplified these uncertainties. Readers should keep 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 may occur again. Important factors that could cause actual results to differ materially from those suggested by forward-looking statements include, but are not limited to, uncertainty about the future impacts of the COVID-19 pandemic, including with respect to the response of the US government. , state governments, Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac, and with Fannie Mae, GSE), Government National Mortgage Association (Ginnie Mae) and regulatory bodies, as well as the potential for continued disruption to financial markets and business activity in general, increased unemployment and other financial hardships facing our borrowers; impacts on our operations resulting from employee illness, social distancing measures and our shift to greater use of remote working arrangements; the adequacy of our financial resources, including our sources of liquidity and our ability to sell, fund and collect service advances, full term and reverse loans, and redemptions and forgings of term and term loans, as well as to repay, renew and extend loans, borrow additional amounts as needed, meet our MSR or other asset investment objectives and comply with our debt agreements, including financial and other commitments contained therein; increased service charges due to increased borrower default rates or other factors; our ability to collect withholding tax refunds, including on time; the future of our long-term relationship and remaining service agreements with New Residential Investment Corp. (NRZ), our ability to execute an orderly and timely transfer of responsibilities in connection with NRZ’s previously disclosed termination of the PMC Sub-Service Agreement, including our ability to address any concerns raised by regulators, lenders and other contractual counterparties in connection with such a transfer; our ability to timely adjust our cost structure and operations as the loan transfer process is completed in response to NRZ’s previously disclosed termination of the outsourcing agreement PMC; our ability to continue to improve our financial performance through cost reengineering efforts and other actions; our ability to continue to develop our origination business and increase our origination volumes in a competitive market and an uncertain interest rate environment; uncertainty related to claims, litigation, cease and desist orders and investigations by government agencies and private parties regarding our service, foreclosure, modification, origin and other practices, including 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), attorneys general of the State, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD) and actions brought under the False Claims Act regarding incentives and other payments made by government entities; adverse effects on our business as a result of regulatory investigations, litigation, cease and desist orders or settlements and related responses from major counterparties, including lenders, GSEs and Ginnie Mae; our ability and costs to comply with the terms of our regulations with regulators, as well as general regulatory requirements; increased regulatory oversight and media attention; any unfavorable development of existing legal proceedings or the opening of new legal proceedings; our ability to correctly interpret and comply with liquidity, equity, and other financial and other requirements of regulators, GSEs and Ginnie Mae, as well as those set forth in our debt and other agreements; our ability to comply with our service agreements, including our ability to meet our agreements with, and requirements of, GSE and Ginnie Mae and to maintain our vendor / repairer and other status with them; our ability to fund future drawdowns on existing loans in our reverse mortgage portfolio; our server and our credit ratings and other actions of various rating agencies, including the impact of past or future downgrades to our server and our credit ratings; as well as other risks and uncertainties detailed in Ocwen’s reports and filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2019 and its current and quarterly reports since that date. dated. Anyone who wants to understand Ocwen’s business should review his documents with the SEC. Our 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.
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