Ocwen puts hold on deal with Wells Fargo
ATLANTA (AP) — Ocwen Financial Corp. said Thursday that it will delay a deal with Wells Fargo & Co. due to regulatory concerns.
The Atlanta-based financial services company said that, at the request of the New York Department of Financial Services, it has put an indefinite hold on its purchase of the servicing rights for 184,000 Wells Fargo Bank loans with a total principal balance of $39 billion. The loans represent about 2 percent of Wells Fargo's total residential servicing portfolio at the end of the fourth quarter.
The two companies originally announced the deal last month.
Ocwen said that it will continue to work closely with the department to resolve its concerns about its servicing portfolio growth.
The New York Department of Financial Services did not immediately respond to a request for comment.
Ocwen is a financial services holding company that handles the servicing and origination of mortgage loans through its subsidiaries.
Its stock fell $1.74, a 4 percent drop, to $41.46 by late afternoon amid a broader market uptick. It had dropped to as low as $37.25 earlier in the day.