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Ocwen settling shareholder litigation, reaches agreement with Nebraska

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Ocwen settling shareholder litigation, reaches agreement with Nebraska

Ocwen Financial Corp. is close to settling a shareholder lawsuit and has reached an agreement with Nebraska to resolve allegations of deficiencies in its compliance with laws and regulations relating to its servicing and lending activities.

The company agreed in principle to pay $36 million to settle an "opt-out" securities fraud action over allegations related to its restated financial statements for 2013 and first quarter 2014, among other things. The deal has not been finalized and the parties are working on documenting a definitive settlement agreement. The company said that it consented to the settlement only to avoid a trial and additional expenses related to the litigation.

Ocwen also made progress in resolving regulatory actions taken against the company by several states. The agreement with Nebraska brings the total number of jurisdictions where it has reached a resolution to 23. The terms of the settlement are similar to prior agreements.

Additionally, CIT Bank NA formerly OneWest Bank FSB, is paying Ocwen $29.9 million relating to certain claims arising from indemnification obligations under a 2013 transaction pursuant to which Ocwen acquired certain mortgage servicing rights and related servicing advance receivables from OneWest.