Ocwen CFO to resign ahead of PHH acquisition
Ocwen Financial Corp.'s Chief Financial Officer Michael Bourque has resigned, becoming the second top executive to leave the company after it agreed to acquire PHH Corp.
Bourque is taking a position at another financial services company but will remain at Ocwen until June 22, according to a press release.
"We would like to thank Michael for his financial leadership and his many contributions over the last four years," said Ocwen's current President and CEO Ron Faris in a press release. "While at Ocwen, Michael has focused his efforts on ensuring the company is in solid financial standing and is well positioned for future success. We respect Michael's personal decision, and we wish him the best in his new position."
Faris is leaving Ocwen as well; back in April the company announced he will leave around the time of the PHH acquisition. His replacement will be former PHH CEO Glen Messina, who had left that position in June 2017.
Bourque will receive a $125,000 payment along with an additional $50,000 in relocation costs from the U.S. Virgin Islands as part of his separation agreement, according to a Securities and Exchange Commission filing.
Ocwen will look for its next CFO from internal and external candidates, according to the press release.
The PHH acquisition was announced on Feb. 27. But two weeks prior, Ocwen fired Otto Kumbar, the executive vice president of lending and the president and CEO of Ocwen Mortgage Servicing.
Ocwen is expected to complete the PHH deal in the second half of this year. PHH cleared one hurdle in the first quarter by maintaining the minimum net worth requirement and having the available cash necessary under the terms of the agreement even after taking a $30 million net loss for the period. Ocwen recorded $2.6 million in net income for the first quarter.
In the same SEC filing, Ocwen announced on May 30 it will make a voluntary prepayment of $25 million on its senior secured term loan, leaving a balance of $244 million. The company previously prepaid $25 million of the loan on April 9, according to its first-quarter 10-Q filing. It is required to make quarterly payments of $4.2 million on the loan, the first of which it made on March 31.