NEW YORK – Ocwen Financial said Thursday that it doesn't anticipate any material fines, penalties or settlements coming from pending state examinations into alleged misconduct.
Company shares rose more than 14 percent in afternoon trading.
Ocwen recently reached settlements with New York and California regulators. The states were part of a multistate examination of Ocwen in 2010-2011 that identified problems including wrongful foreclosures and poorly documented procedures involving so-called "robo-signing," inaccurate affidavits, missing paperwork and improperly maintained books and records.
Ocwen said in a regulatory filing Thursday that it is aware of 21 pending examinations in 15 states. The company said that based on its current engagement with regulators, it is not aware of or anticipating any material fines, penalties or settlements. Ocwen did say, however, that it does expect to resolve two open legacy matters for less than $1 million.
In December Ocwen reached a settlement with New York financial regulators requiring it to reform its practices and provide $150 million to help struggling New York homeowners. The consent order required founder William Erbey to resign as executive chairman of the corporation and chairman of four related companies. The settlement also required an independent monitor on site for up to three more years.
The company last month agreed to pay a $2.5 million penalty and submit to a review by an independent auditor to avoid losing its license to make and service mortgages in California.
Ocwen said in the filing Thursday that it had $249 million in cash as of Tuesday and expects to continue to have sufficient liquidity going forward. The Atlanta company also said that it believes it is currently in good standing on all outstanding debt agreements.
Shares of Ocwen Financial Corp. rose 94 cents to $7.55.
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