Ocwen Financial Corp. is paying a $2.5 million penalty and submitting to a review by an independent auditor to avoid losing its license to make and service mortgages in California.
The settlement announced late Friday by California's Department of Business Oversight stems from Ocwen's refusal to turn over records sought by state regulators as part of an examination of its lending practices.
Continue Reading Below
The standoff prompted California to initiate proceedings to suspend Ocwen's license, an action that now will be dropped as part of the agreement.
Ocwen won't be able to take on any new customers in California until state regulators are satisfied the Atlanta company will promptly respond to future demands for business records.
Ocwen didn't immediately respond to a Saturday request for comment about the settlement.