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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s