NY Requires Ocwen Reforms, $150M Homeowner Help

Markets Associated Press

New York financial regulators have reached a settlement with Ocwen Financial Corp. requiring the nation's largest subprime mortgage servicer to reform its practices and provide $150 million to help struggling New York homeowners.

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The consent order signed Friday also requires William Erbey to resign as chairman of four related companies: Altisource Portfolio Solutions, Altisource Residential Corp., Altisource Asset Management Corp. and Home Loan Servicing Solutions.

The settlement of the state Department of Financial Services investigation also requires an independent monitor on site for up to three years.

It calls for $50 million in direct restitution to former and current Ocwen homeowners in New York, while those who lost their homes to foreclosure will get $10,000 each.

Ocwen says it will promptly comply.