WEST PALM BEACH, Fla., April 25, 2017 (GLOBE NEWSWIRE) — Ocwen Financial Corporation, (NYSE:OCN) (Ocwen or the Company), today announced the filing of two emergency motions requesting immediate court action restraining the cease and desist orders brought by the Illinois Department of Financial and Professional Regulation, Division of Banking and the Commissioner of Banks of the Massachusetts Division of Banks.
As discussed in today’s legal filings, Ocwen believes that the Illinois and Massachusetts orders will cause significant harm to the consumers in those states, including potentially those consumers with pending mortgage applications, and those seeking loan modifications. Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the Company. The allegations at issue do not arise out of a recent assessment of Ocwen’s business activities. Instead, they come from a 2015 multi-state examination of the Company’s mortgage servicing business by the Multi-State Mortgage Committee (MMC), which covered Ocwen’s activities from January 2013 to February 2015. The MMC concluded its examination well over a year ago, in December 2015.
Over the course of almost two years, Ocwen and the Company’s Board of Directors have been in regular communication with its state mortgage regulators, including those in Illinois and Massachusetts. During those communications, Ocwen shared information regarding the significant operational and programmatic enhancements that the Company has made. For example, as it relates to borrower escrow accounts, one of the primary areas of concern in the orders at issue, independent reviews have consistently confirmed Ocwen’s escrow practices are in line with common industry standards for timeliness and accuracy.