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Ocwen: CFPB suit unfounded; shares -52%

Published 04/20/2017, 03:32 PM
© Reuters.  Ocwen: CFPB suit unfounded; shares -52%
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  • "The substantive allegations in today’s suit are inaccurate and unfounded," says Ocwen Financial (OCN -52%), responding to today's CFPB charges. Ocwen is "unaware" of the CFPB conducting any detailed review of its loan servicing files.
  • "The CFPB suit is primarily based on the CFPB’s flawed review of data and its self-serving conclusion about isolated instances where Ocwen self-identified ways we can do better."
  • In between the lines of the Ocwen response: The head of the CFPB (if not the whole agency) has been targeted for firing by the Trump administration, and what better way to stay in business than to unleash a lawsuit against a fat target.
  • Maybe the bigger issue for Ocwen are cease and desist orders from regulators in more than 20 states. The company intends to respond later.
  • Previously: Ocwen now down 40% as investors debate endgame (April 20)
  • Now read: Fannie And Freddie Finally Wake Up


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