NEW YORK (TheStreet) -- Shares of Ocwen Financial (OCN) closed up 4.92% to $23.04 on Tuesday after Bloomberg reported Benjamin Lawsky, New York's top financial regulator who has accused the mortgage services company of backdating letters to its borrowers, would probably leave his position in 2015 to take a job in the private sector.
Governor Andrew Cuomo appointed Lawsky as New York's Superintendent of Financial Services in 2011. It's not clear who Cuomo would name as a successor if Lawsky were to step down, Bloomberg reports. It's also unclear how the successor would approach Ocwen and if he or she would be more or less strict with the company.
News broke in October that Lawsky, is investigating if Ocwen's mortgage servicing procedures are unfair to homeowners, particularly those in dire financial straits.
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Lawsky's wrote a letter last month to state that Ocwen ignored the backdating even after an Ocwen employee found and reported it. Lawsky claimed Ocwen had not rectified the issue nearly one year after the employee discovered it. Ocwen could avoid making mortgage modifications by backdating its correspondence with homeowners.
Ocwen said in a statement that it regretted the mistake and added that 283 borrowers in New York had received letters with incorrect dates.
Separately, TheStreet Ratings team rates OCWEN FINANCIAL CORP as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: