In the latest news to surface about Ocwen Financial committing servicing violations by backdating loan modification denial letters, Ocwen’s executive chairman said the company is setting aside $100 million to settle with Benjamin Lawsky, the superintendent of New York’s Department of Financial Services.
Executive Chairman Bill Erbey told analysts on an October 30 conference call that the $100 million was Ocwen’s “best estimate of the exposure,” after Lawsky identified 6,100 borrowers who received the backdated letters. Ocwen, which weakly tried to blame the letters on “the computer,” has known about the problem for over a year, when one of its own employees informed executives and an internal monitor about them.
The settlement, according to Michael Bourque, Ocwen’s executive vice president and CFO, could be even higher.
Ocwen is in a hurry to put the matter in its rearview mirror because it’s preventing the company from completing its purchase of $39 billion in mortgage servicing rights from Wells Fargo.
Read the original article in National Mortgage News.