Ocwen Financial's Stock Tumbles After Announcing Settlement With NY DFS

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Shares of Ocwen Financial tumbled 13% in early trade Monday, after the mortgage services company said in a regulatory filing that it will pay a $100 million civil monetary penalty to the New York Department of Financial Services to settle allegations of improper conduct. In October, the company was accused of backdating correspondences with borrowers. Ocwen said it will also pay $50 million to current and former borrowers who had their homes foreclosed by Ocwen between January 2009 and Dec. 19, 2014. In addition, Executive Chairman William Erbey will step down as an officer and director of the company. Current board member Barry Wish will take on the role as non-executive chairman. The stock has now lost 65% this year, compared with a 12% gain in the S&P 500.

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