Ocwen Financial Corp.'s Stock Surges 20% After Settlement

Ocwen Financial Corp.'s stock was surging about 20% in morning trade Monday, after the company agreed to pay $2.5 million in a settlement with California's Department of Business Oversight, according to an announcement late Friday. The DBO said with the settlement, it will no longer seek a suspension. Ocwen, a mortgage loan servicing company, also agreed to hire an auditor to analyse its mortgage-servicing practices. The settlement comes after Ocwen failed to provide loan information used to assess compliance with the state to the DBO for more than a year. The terms of the settlement also prohibit Ocwen from taking on any new California customers until the DBO allows it.