Ocwen Financial has handed one of its top mortgage execs his walking papers.
The company announced last year that it would move away from mortgage lending. In a Monday filing with the Securities and Exchange Commission, the company revealed that it has eliminated the position of executive vice president of lending – leaving that position’s Otto J. Kumbar, without a job. Kumbar’s last day with the company was Friday, according to the SEC filing.
Ocwen said that it eliminated Kumbar’s position as part of its “strategic assessment of its lending business.”
According to the company, Kumbar received a $1.25 million payment as part of his severance. Kumbar, for his part, signed a non-competition agreement that restricts him, for two years, from taking “any action that would diminish or impair the valuable relationships” between Ocwen and its customers, and from soliciting Ocwen employees to come work for him for the same period. He also agreed to transfer his 1,000 shares of Class M preferred stock in Ocwen Mortgages Servicing back to the company “without payment of any consideration.”
Ocwen has been extricating itself from mortgage origination for some time. In August, the company announced that it would exit the correspondent lending space. In October, Ocwen announced that it planned to exit its wholesale forward business – its largest origination channel, according to a HousingWire report. The same month, the company said it was considering selling its reverse lending business.
If it does, Ocwen’s only active mortgage businesses would be its retail forward lending business and mortgage servicing, HousingWire reported.
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