Block & Leviton LLP Investigates Ocwen Financial Corporation After Announcement That New York Regulators Are Investigating Improper Backdating Of Loan Modification Letters

BOSTON, Oct. 21, 2014 /PRNewswire/ -- Shares in Ocwen Financial Corporation ("Ocwen" or the "Company") OCN have plunged approximately 20%—its largest intraday drop since October 2008—after New York's Department of Financial Services accused the company of improperly backdating potentially hundreds of thousands of loan modification letters to borrowers.

In the Company's most recent earning call, Ronald Faris, Ocwen's CEO stated that "Ocwen is and has been compliant with laws, regulations and HAMP guidelines for handling modification requests." Today's letter from the Superintendent of New York's Department of Financial Services suggests that statement was false. The letter states that "Ocwen has obligations under both New York and federal law … regarding how quickly it must communicate with borrowers … Ocwen is not meeting those obligations."

According to the letter, the Department's investigation "uncovered serious issues with Ocwen's systems and processes, including Ocwen's backdating of potentially hundreds of thousands of letters to borrowers, likely causing them significant harm." Moreover, "Ocwen did nothing to investigate or address the backdating issue" when an employee raised concerns and "alerted the company's Vice President of Compliance." Instead, "Ocwen ignored the problem for five months," "failed to launch an appropriate investigation," and "still has not resolved the issue today."

Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread the backdating problem is and whether any insiders at the Company personally profited from the alleged misstatements.

If you purchased Ocwen stock between November 1, 2013 and October 21, 2014 and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Joel Fleming of Block & Leviton LLP at (617) 398-5600 or at Joel@blockesq.com. Confidentiality for any whistleblowers or other persons with information relevant to the investigation is assured.

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws as well as whistleblowing employees who provide information about their employers' violations of law. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.

This notice may constitute attorney advertising. 

Contact:         
BLOCK & LEVITON LLP
Joel Fleming
(617) 398-5600
Joel@blockesq.com

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SOURCE Block & Leviton LLP