This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ocwen to Pay $2B In Mortgage Debt Collection Settlement

NEW YORK (TheStreet) -- Ocwen Financial (OCN), the nation's fourth-largest collector or "servicer" of mortgage debt, reached a settlement with regulators to pay more than $2 billion to mortgage borrowers over alleged "significant and systemic misconduct" in servicing their loans.

Shares of Ocwen were down 1.64% to $55.08 in mid-afternoon trading Thursday. Ocwen has been one of the fastest-growing financial companies in the wake of the subprime mortgage crisis as it has a reputation among investors and consumer advocates of doing a better job servicing mortgage loans. Its shares are up roughly sevenfold over the past five years. Ocwen is one of five publicly traded companies overseen by Bill Erbey, who has quintupled his fortune to more than $2 billion in just the past two years.

Regulators led by the Consumer Financial Protection Bureau and including authorities in 49 states and the District of Columbia accused Ocwen of a host of abuses, including pushing borrowers into foreclosure through servicing misconduct, deceiving consumers about foreclosure alternatives and improperly denied loan modifications and engaging in illegal foreclosure practices.

A statement from Ocwen said "the agreement...is in alignment with the same ultimate goals that we share with the regulators -- to prevent foreclosures and help struggling families keep their homes."

The settlement with Ocwen comes nearly two years after a $25 billion "National Mortgage Settlement" involving Bank of America (BAC), Wells Fargo (WFC), JPMorgan Chase (JPM) and Ally Financial (formerly GMAC) for similar issues. -- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,985.61 +78.99 0.47%
S&P 500 1,972.83 +9.12 0.46%
NASDAQ 4,419.0340 +27.5710 0.63%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs