Ocwen Financial's Stock Tumbles After Deficiency Letter From NYSE Was Received

Shares of Ocwen Financial Corp. tumbled 10% in premarket trade Tuesday, as its announcement of plans to sell a portfolio of mortgage servicing rights with a principal balance of $25 billion failed to offset a warning from the New York Stock Exchange it was not in compliance with continued listing standards. The financial services company said late Monday that it received a deficiency letter from the NYSE on March 18 because of its failure to file its annual report on Form 10-K with the Securities and Exchange Commission in a timely fashion. The company had requested additional time file its annual report, but was unable to file it by the expected date of March 17, as it continues to analyze Home Loan Servicing Solutions' ability to continue to meet its obligations. "At this time, the company is unable to provide an expected date on which it plans to file its Form 10-K," Ocwen said in a statement. Separately, on Tuesday, Ocwen said its Ocwen Financial Loan Servicing subsidiary and Nationstar Mortgage, a wholly-owned subsidiary of Nationstar Mortgage HOldings , agreed in principle on the sale of the portfolio of mortgage servicing rights. The portfolio consists of 142,000 loans owned by Freddie Mac and Fannie Mae .