Ocwen Financial comments on the new financial eligibility

WEST PALM BEACH, Fla., Sept. 09, 2022 (GLOBE NEWSWIRE) — Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and originator, has issued the following statement in response to the minimum financial eligibility requirements for business sellers/repairers and Ginnie Mae issuers announced by the Federal Housing Finance Agency (“FHFA”) and Ginnie Mae (“GNMA”).

“We are currently in compliance with the new FHFA and GNMA liquidity and capital standards and expect to be in compliance when they come into effect in September 2023, with the exception of the capital ratio based on the GNMA risk. We are in discussions with the GNMA regarding their risk-based capital requirements, which will come into effect at the end of 2023. We are evaluating our alternatives, and the costs and benefits of complying with the requirements GNMA’s risk-based capital plan. Futures service and GNMA mounts do not represent a significant portion of our business activities, representing around 4% of our total UPB service as of June 30, 2022 and less than 10% of our year-to-date mount volume as of June 30, 2022. August 31, 2022 Alternatives we are evaluating include, but are not limited to, outside investor solutions, structural solutions or exit from the GNMA term and service in ownership. Regardless, we plan to continue to outsource GNMA Term Mortgages and originate, outsource and own GNMA Reverse Mortgages (or HECMs) as we do not believe that these activities will be affected by the new regulations. We intend to manage our business appropriately to comply with risk-based capital standards when these rules come into effect. We plan to continue to repurchase shares under our previously announced share buyback program. »

Earlier this year, Ocwen’s mortgage subsidiary, PHH Mortgage, was recognized for service excellence through Freddie Mac’s Gold Servicer Honors and Rewards (SHARP) program.SM award in Fannie Mae’s Entry Level Service and Servicer Total Achievement and Rewards (STAR) groupMT performer recognition for general maintenance, solution delivery, and time management, and earned HUD Level 1 service rating.

About Ocwen Financial Company

Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage servicer and originator providing solutions through its core brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the nation’s largest service providers, focused on providing a variety of service and loan programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. Our headquarters are located in West Palm Beach, Florida, with offices and operations in the United States, US Virgin Islands, India and the Philippines, and we have been serving our customers since 1988. For more information, please visit our website (www.ocwen .com).

Forward-looking statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by reference to a future period or by the use of forward-looking terminology. Forward-looking statements are generally identified by words such as “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”, “objective”, “strategy”, “plan”, “target” and “project” or conditional verbs such as “will”, “may”, “should”, “might” or “would” or the negative form of these terms, although all forward-looking statements do not contain those words, and include statements in this press release regarding our assessment of our future ability to comply with FHFA and GNMA financial eligibility requirements, the impact of those requirements on our business, and action plans we are considering in response to these new requirements. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Our business has undergone substantial changes and we are experiencing significant changes within the mortgage lending and servicing ecosystem, which have amplified these uncertainties. Readers should keep these factors in mind when reviewing these statements and should not place undue reliance on these statements.

Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward-looking statements and it may happen again. Important factors that could cause actual results to differ materially from those suggested by forward-looking statements include, but are not limited to, the potential for continued disruption in financial markets and general business activity due to international events, changes in monetary and fiscal policy and other sources of instability; the impacts of inflation, labor disruptions and other financial difficulties faced by our borrowers; uncertainty related to the continuing impacts of the COVID-19 pandemic, including the response of the U.S. government, state governments, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), Ginnie Mae and Regulators; our ability to improve our financial performance through cost and productivity improvements; the extent to which our MSR Asset Vehicle (MAV), other transactions and our business sale initiatives will generate additional sub-maintenance volume, increase market share in the sub-contract market and result in increased profitability; the timing and amount of the outward and return loan shipment currently planned; whether we will increase total investment commitments in MAV, and if so, when and on what terms; our ability to complete MSR acquisitions and other transactions, including the ability to obtain regulatory approvals; the amount, timing and long-term impact of additional share buybacks; our ability to continue to grow our reverse service business; our ability to retain customers and employees of acquired businesses and the extent to which acquisitions and our other strategic initiatives will contribute to the achievement of our growth objectives; the extent to which we will be able to execute purchase rights transactions and whether such transactions will generate the expected returns; the adequacy of our financial resources, including our sources of liquidity and our ability to sell, fund and collect service advances, term and cancel entire loans, and HECM and term loan redemptions and forgiveness, as well as only to repay, renew and extend borrowings, borrow additional amounts as needed, achieve our MSR or other asset investment goals and comply with our debt agreements, including financial and others they contain; increasing service charges based on increasing borrower default levels or other factors; the future of our long-term relationship with Rithm Capital Corp. ; the performance of our lending business in a competitive market and uncertain interest rate environment; our ability to execute identified business development and sales opportunities; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our service, foreclosure, modification, origin and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), state attorneys general, the Securities and Exchange Commission (SEC), the Department of Justice, or the Department of Housing and Urban Development (HUD); adverse effects on our business as a result of regulatory investigations, litigation, cease-and-desist orders or settlements and reactions from major counterparties, including lenders, GSEs and Ginnie Mae; our ability to meet the terms of our agreements with regulators and the associated costs; increased regulatory scrutiny and media attention; any unfavorable development of ongoing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to correctly interpret and comply with liquidity, net worth and other financial and other requirements of regulators, GSEs and Ginnie Mae, as well as those set forth in our indebtedness and other agreements; our ability to comply with our service agreements, including our ability to comply with GSE and Ginnie Mae requirements and maintain our seller/repairer and other status with them; our ability to fund future drawdowns on existing loans in our reverse mortgage portfolio; our service and credit ratings and other actions of various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and any current report or quarterly report filed with the SEC since that date.

Anyone wishing to understand Ocwen’s business should consult our filings with the SEC. Our forward-looking statements speak only as of the date they are made, and we disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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