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.
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.
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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.