SEC filing details Ocwen’s efforts to rid itself of California mortgage servicing restrictions
Ocwen Financial revealed Wednesday that it is attempting to rid itself of the business restrictions placed upon it by the California Department of Business Oversight, but a Thursday filing with the Securities and Exchange Commission details just how those negotiations are going and why Ocwen is trying to buy its way out of the settlement.
Ocwen reached a settlement agreement with the CDBO in early 2015, ending what the nonbank called a “frustrating skirmish” over the CDBO threatening to suspend Ocwen’s mortgage license because the company failed to turn over documentation showing that it complies with the state’s laws.
Under the terms of that settlement agreement, Ocwen was required to pay a fine of $2.5 million to the state of California. But more importantly for the company, which is built on mortgage servicing, the California settlement prohibited Ocwen from acquiring new mortgage servicing rights in the state of California without approval from the CDBO.
And perhaps most important of all, the CDBO settlement placed a monitor inside of Ocwen’s operations to ensure the company’s compliance with the settlement’s terms, at Ocwen’s expense.
Copy of Ocwen’s SEC 10-Q below…
(See Note 17 – Regulatory Requirements)