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$2.7B Ocwen-Wells Fargo Deal Halted Indefinitely

Ocwen Financial Corporation announced Thursday that plans to purchase the mortgage servicing rights of a portfolio worth $39 billion from Wells Fargo Bank have been halted by the  New York Department of Financial Services (NY DFS).

The Wall Street Journal reports the deal was halted under allegations of abusive behavior towards homeowners, and the office of Benjamin Lawsky, superintendent of the New York regulator, has been investigating Ocwen since December 2012 over the alleged abuse, said a person familiar with the matter. The Atlanta-based business serves as a financial services holding company.

In the press release, Ocwen said it "will continue to work closely with the NY DFS to resolve its concerns about Ocwen's servicing portfolio growth."

The transaction has been halted indefinitely, and any timeline for the completion of the deal remains undecided.

The NY DFS declined to comment.

 

About Author: Colin Robins

Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News' sister site.
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