Ocwen Sets Aside 100 Million for Foreclosure Settlement Loss

But this only includes settlement of the New York claims:

From the Wall Street Journal article, full piece here:

Mortgage servicer Ocwen Financial Corp. swung to a loss in the third quarter, after it set aside $100 million as it seeks to settle the latest in a series of charges of weak internal controls by New York’s financial regulator.

Ocwen recorded a loss of $75.3 million, or 58 cents a share, compared with net income of $60.6 million, or 39 cents a share, in the year-earlier quarter.

Revenue declined 3%, to $513.7 million.

The company said it is engaged in settlement talks with the New York Department of Financial Services over its practices in handling distressed mortgage borrowers, a sign the company is moving closer to resolving regulatory issues that have crimped its growth.

The stock, which has fallen 58% this year, climbed 11% on Thursday, rising $2.35, to $23.16, in 4 p.m. trading.

“The fact that they’re negotiating with the regulator is a positive for the market,” said Bose George, an analyst with Keefe, Bruyette & Woods. “It could mean that they’re putting this behind them.”

He noted, though, that the company said the $100 million was a preliminary estimate, and it covered only resolution of charges from New York state. It doesn’t include the possibility of additional penalties from federal or other state regulators over Ocwen’s practices.

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