Ocwen Enters Into Regulatory Agreement

Subprime servicing specialist Ocwen Federal Bank, FSB, has entered into a supervisory agreement with its regulator, promising to end certain billing practices and to expedite the handling of consumer complaints.The Office of Thrift Supervision has been monitoring the W. Palm Beach, Fla., thrift for several years due to consumer complaints that continue to dog the company. OTS did not levy any fines against the federally chartered thrift. But the regulator is demanding quick action to implement a "best practices" approach to servicing that is outlined in the supervisory agreement. Ocwen chairman and chief executive William Erbey said Ocwen is committed to excellence in customer service. "We are grateful for the insights gained in our on-going dialogue with OTS and consumer interest organizations, and will continue to strive for ways to better serve our clients." Despite the supervisory agreement, Fitch Ratings said it is not changing Ocwen's credit rating or its servicer rating.