Ocwen Financial has entered a settlement with the Maryland regulatory agency to resolve the action the state brought against the company related to alleged compliance deficiencies in its servicing and lending activities, according to a regulatory filing with the Securities and Exchange Commission.
Under the settlement, Ocwen agreed to remit $500,000 to the Maryland regulator and to provide approximately $273,500 in remediation to certain borrowers, in the form of cash payments or credits to borrower accounts.
In case the company fails to comply with certain requirements under the settlement, it agreed to pay an additional amount of up to about $1.5 million. The settlement also includes certain injunctive relief terms, including completion of an independent management assessment and enterprise risk assessment and other reporting requirements. Ocwen further agreed to be prohibited from repurchasing shares of Ocwen stock until Dec. 7, with certain exceptions.
The terms of the Maryland settlement also include terms that are similar to the agreements with other jurisdictions Ocwen previously disclosed. Those agreements included common provisions such as a freeze on acquisitions of new residential mortgage servicing rights for a specified period of time and a transition from its current proprietary servicing system, REALServicing, to an alternate system. However, terms related to an escrow review will not be required in connection with Maryland borrowers.
As of Feb. 26, Ocwen has reached resolutions with 29 jurisdictions. The company said it continues to seek resolutions with the remaining two regulatory agencies and two state attorneys general.
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