ATLANTA, Feb. 27, 2015 (GLOBE NEWSWIRE) — Ocwen Financial Corporation (NYSE:OCN), a leading financial services holding company, today commented that on February 24, 2015 Ocwen received notice from a trustee that a majority of Certificateholders of two Trusts had voted to terminate Ocwen as Servicer following an event of default triggered when Ocwen’s servicer ratings were downgraded in October 2014. These two Pooling and Servicing Agreements (“PSAs”) represent $260 million of unpaid principal balance or 0.07% of Ocwen’s overall servicing portfolio and $0.8 million in MSR value.
These two PSAs were part of the 119 transactions referenced in our February 5, 2015 Form 8-K filing with the Securities and Exchange Commission. The Company believes the financial impact of these transfers will be immaterial to Ocwen’s overall financial condition.
“We regret the decision made by this particular group of investors who have been critical of Ocwen’s superior loan modification results, but are pleased that in the majority of the affected securities investors are keeping Ocwen as their servicer,” commented Ron Faris, President and CEO of Ocwen. “We were also gratified to see reports earlier this week by Morgan Stanley and reported by Bloomberg confirming Ocwen has been more effective at keeping borrowers in their homes, and it is unlikely that investors will replace Ocwen in the small percentage of cases where the servicer ratings have fallen below the minimum criteria set forth in certain PSAs.”