In marriage of money-losing mortgage companies, Ocwen to buy PHH


In a marriage of struggling mortgage companies, Ocwen Financial of West Palm Beach said Tuesday that it will pay $360 million for PHH Corp. of Mount Laurel, New Jersey.

The companies share a common disdain for the federal Consumer Financial Protection Bureau: After the agency imposed hefty fines, both filed suits calling the regulatory body unconstitutional.

Related: Ocwen says CFPB suit should be thrown out because agency is unconstitutional

They also have red ink in common. PHH reported losses of $202 million in 2016 and $217 million in 2017. Ocwen lost $189 million in the first nine months of 2016 and $83 million in the first nine months of 2017.

“We are very pleased to announce the proposed acquisition of PHH, a leading non-bank servicer,” Ocwen Chief Executive Ron Faris said in a statement. “PHH is a high-quality servicer with complementary capabilities and business lines to Ocwen, making it a great strategic match for us.”

Ocwen said its bid represents a 35 percent discount to PHH’s Dec. 31 price.

PHH was facing federal regulatory action regarding alleged violations of the Real Estate Settlement Procedures Act. Ocwen, for its part was slapped by the CFPB for alleged incompetence.

“The Bureau alleges that Ocwen’s years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes,” the CFPB said. “Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance.”

The CFPB, created under President Barack Obama, has lost influence under President Donald Trump.


Reader Comments ...


Next Up in

New Medicare cards with big change en route to millions of Floridians
New Medicare cards with big change en route to millions of Floridians

New Medicare cards are on the way to millions of Floridians this week with a change reformers say is long overdue: There is no Social Security number on it, to reduce chances for fraud and ID theft. Just watch out for one twist. Beware of anyone calling or knocking on the door seeking personal information or a fee to provide the new card, officials...
Traffic, charter school and hotel plans stir Royal Palm Beach debate
Traffic, charter school and hotel plans stir Royal Palm Beach debate

A proposed development near one of Palm Beach County’s busiest intersections at Southern Boulevard and State Road 7 is winning an early round of green lights from the village council, but not without stirring up questions about traffic, a proposed charter school and the height of a proposed hotel. Developer Brian Tuttle said the goal is to provide...
Check out our new podcast: Inside Florida Politics
Check out our new podcast: Inside Florida Politics

Take a listen to our new podcast “Inside Florida Politics” Host George Bennett from the Palm Beach Post, Zac Anderson from the Sarasota Herald-Tribute and legendary state capitol embedded newsman John Kennedy discuss the upcoming Florida primary and the prospects of a "blue wave." But wait, there’s more! Check out some...
Pebb comes back from tragedy with Tesla dealer, Gander Mountain site
Pebb comes back from tragedy with Tesla dealer, Gander Mountain site

Tesla will open a new dealership and service center in West Palm Beach, thanks to a Palm Beach County real estate firm that’s bouncing back after a tragedy nearly three years ago. Earlier this week, Pebb Enterprises became the owner of the empty Gander Mountain store at Interstate 95 and Northlake Boulevard in Palm Beach Gardens...
Cool the room with a smart air conditioner
Cool the room with a smart air conditioner

Just in time for the real heat of the summer, GE Appliances has a new smart air conditioner that keeps you from breaking a sweat to control the flow of cooler air with voice assistants. You won’t even have to get out of bed to adjust the air during bedtime hours. With a simple command to your iPad, iPhone or Apple Watch to access Apple Home app...
More Stories