NEW YORK (TheStreet) -- Shares of Ocwen Financial Corp. (OCN) are falling by 19.68% to $17.59 in mid-morning trading on Monday, as it announces that the founder and executive chairman of the mortgage company will resign in January as part of a legal settlement with the New York Department of Financial Services (DFS).
Ocwen has been accused of mishandling foreclosures and abusing delinquent borrowers, the Wall Street Journal reports.
As part of the agreement the company will pay a civil monetary penalty of $100 million to the DFS by the end of this month.
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Ocwen will also pay an additional $50 million in restitution to current and former New York borrowers who had foreclosure actions filed against them by Ocwen between January 2009 and December 19, 2014, Ocwen said in a statement.
Terms of the agreement also say the company's activities will be scrutinized by an outside monitor, who will lead the "oversight of Ocwen's operations, interactions with related parties, and certain corporate governance measures."
Ocwen will not be able to make any MSR acquisitions unless it meets specific benchmarks and DFS approval, the company said.
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: