Courtesy of Benzinga.
Mortgage servicer Ocwen Financial (NYSE: OCN) shares tanked Monday after a New York State regulator accused the company of improperly channeling much as $65 million in fees annually from distressed homeowners to a company affiliate, Altisource Portfolio Solutions S.A. (NASDAQ: ASPS).
But Keefe, Bruyette & Woods analyst Bose George said the "main negative for Ocwen is that its negotiations appear to be progressing very slowly" with Lawsky, who raised similar issues in April.
Related Link: Ocwen Financial Insurance Practices Put To Question By New York Department Of Financial Services
George believes the deals with Altisource were "at market rates" and changes to contracts "are unlikely to have a negative effect on Ocwen."
Ocwen closed Monday at $26.98, down 2.53 percent.
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