Ocwen settles with Alabama, Minnesota regulators
Ocwen Financial Corp. is settling allegations by Alabama and Minnesota that it engaged in improper mortgage activities, bringing the total of states it has settled with to 17.
"We continue to work cooperatively with the remaining 14 state regulatory agencies and two state attorneys general to reach acceptable resolutions," said John Lovallo, a spokesperson for Ocwen, in an emailed statement.
As in previous settlements with other states, the settlements with Alabama and Minnesota restrict Ocwen's ability to purchase mortgage servicing rights for several months and require the company to switch to a new servicing system, according to an 8-K filing with the Securities and Exchange Commission.
Other states that have settled, withdrawn regulatory actions or allowed them to expire include Georgia, Idaho, Illinois, Maine, Michigan, Mississippi, Montana, Rhode Island, South Carolina, Wisconsin, Indiana, Nevada, Virginia, West Virginia and New Mexico.
Ocwen also recently engaged Chris Whalen, a consultant who has claimed the company has been unfairly targeted by regulators, as an advisor.
The company has neither confirmed nor denied liability in any of its settlements, or paid any fines or penalties, although Ocwen will incur costs related to the business measures it agreed to as part of the settlements.
The settlements do not end lawsuits several states and the Consumer Financial Protection Bureau filed against Ocwen in April. Also, a countersuit Ocwen has filed against the CFPB that challenges the bureau's constitutionality also continues to play out.
Prior to the April lawsuits, Ocwen had reached an agreement with New York State regulators.