Ocwen to Shell Out $56 Million in Class-Action Settlement
July 20th, 2017 | by Alex Spanko
Ocwen Financial Corporation (NYSE: OCN) on Thursday announced that has reached a $56 million settlement over a federal class-action lawsuit, the latest in a line of issues for the troubled servicer.
The lawsuit stemmed from alleged problems with restatements in Ocwen’s 2013 and 2014 financial statements, as well as a 2014 consent decree from the New York State Department of Financial Services that prohibited the company from gaining additional mortgage servicing rights in the state.
The West Palm Beach, Fla.-based Ocwen originates and services reverse mortgages under its Liberty Home Equity Solutions subsidiary.
“While the company believes that it has sound legal and factual defenses, Ocwen agreed to this settlement in order to avoid the uncertain outcome of the trial and the additional expense and demands on the time of its senior management,” the company wrote in an 8-K filing.
The settlement includes $49 million in cash for the plaintiffs, along with an additional 2.5 million shares of Ocwen stock that the company pegged at about $7 million; under the terms of the agreement, the servicer can also elect to simply pay the additional amount in cash.
After insurance covers a portion of the outlay, Ocwen will end up taking a financial hit of $34 million to $36 million, which the company intends to record in the second quarter of 2017. Ocwen warned that that the decision isn’t final and remains subject to a judge’s approval.
“In the event the settlement in principle is not ultimately finalized and approved, the litigation would continue and we would vigorously defend the allegations made against Ocwen,” the company wrote.
Back in March, Ocwen made a major move to extract itself from the terms of the 2014 New York order, reaching a deal with the Empire State to remove a mandatory third-party monitor and create a potential pathway to begin acquiring servicing rights once more. The state had forced Ocwen to pay $150 million in fines stemming from record-keeping failures and improperly handled foreclosures as part of the consent order.
But Thursday’s settlement announcement still marks the most recent step in Ocwen’s ongoing regulatory woes, which remain ongoing on several fronts: The servicer must currently contend with a lawsuit from the Consumer Financial Protection Bureau and cease-and-desist orders from up to 30 states that bar Ocwen from gaining new mortgage servicing rights. Those orders generally did not affect Liberty’s operations, as RMD reported at the time.
Ocwen had attempted to shed the CFPB lawsuit by requesting an immediate ruling on the bureau’s constitutional authority, but in June a judge rejected that argument. Based on these challenges, Moody’s downgraded company’s outlook and projected more woes to come.
“The negative outlook reflects the expectation that Ocwen will continue to experience elevated legal and regulatory costs that negatively impact its profitability,” Moody’s wrote in its release announcing the downgrades.
Filed under: foreclosure | Tagged: Ocwen |
Nothing has changed. We offered a settlement though our attorney to Ocwens attorney for 160,000.00 in June and the note was 147,000.00 he did seem to see any problem with that. Then Ocwen came back wonting closer to 200,000.00 after two months of this. And as of Aug 11, there attorney, contacted our attorney. We needed to get closer to the 200,000.00 or we start foreclosure action again. This isn’t professional, FIRE THE EXECUTIVES responsible for all this, starting with Mr. Ronald M Farris. No knows what they are doing. It’s time for Ocwen to take responsibility for changing their corrupt corporate culture. We have been fight this for about 10yrs. But, with Ocwen 4yrs. We just wont out from under these people. My next move F/B.
Kind of off the subject first let me say that this whole shit shoveling business is killing me lost our family home of 70 sum yrs to indymac,one west,deutsche bank in 2012 on a deed of deceit from 2006 any aye just seen a commercial stating ” what is more American than owning a home? Nothing they could think of or sum shit idk guess we aren’t Americans ? Wtf that damn commercial just undid all the progress I had made in getting thru all this post traumatic foreclosure fraud stress syndrome that was taking my life from me !maybe I’m being a big crybaby ? Not but that F’in commercial just really messed with my well being ! This whole shit box of events that all these crooks are getting away with while I live in a house I pay too much rent probably will die homeless or sum shit but these banksters and so called servicers foreign banks. Fake trusts remix shit unscrupulous lawyers ppl who look at us as if we are scum because we lost our home it is almost too much if not for my wife and lust for life in general ,there would be hell too pay for these pieces of shite stealing our AMERICAN DREAM now nightmare thank you to Neil and all of those whom are trying too stand for freedom truth democracy Liberty and integrity and to those in my boat I love your lives keep the faith
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Owen Wilmington BSI r the seed of terrorist starter! Worse than that how is the system mingle an allow such corruption no morality not even to innocent vulnrable elderly client
In case anyone here cares: I have “absolute” proof of the counterfeiting and fraud and the judge keeps letting them have more and more time to counterfeit more documents, if they can? I have them every which way, paperwork is solid. Judges do not care…they are trying to assist them. If I wasn’t seeing it with my own eyes, I would never believe this. Every law pertaining to deeds, assignments, filing, discovery, evidence, etc…all broken and passed over, right with the judges assistance. Insanity and corrupt!
“Owen getting back on track”…to stealing more homes, with the help of Alti Source and Hubzu. All theives, debt collectors mostly, masquerading as owners, holders in due course, assignees, going back to the REMIC Trusts….they are so full of shit! They should be in jail under RICO Statutes, counterfeiting, fraud, perjury….a long laundry list of crimes. Al Capone had nothing on these guys.
Our house is foreclosed before the suit to enjoin foreclosure is dismissed. Is this foreclosure void?
Louise, ocwen is like a virus in a brothel fire.
Reblogged this on California freelance paralegal.
Ocwen needs to go under all together.