Fitch reviews Ocwen

Fitch Ratings said it placed Ocwen Financial Corp.’s B- long-term issuer default rating, B short-term issuer default rating and CC/RR6 senior unsecured debt rating on Rating Watch Negative.

The agency also placed wholly owned primary operating subsidiary Ocwen Loan Servicing, LLC’s B- long-term issuer default rating, B-/RR4 senior secured term loan and CCC/RR5 senior secured notes on Rating Watch Negative.

Fitch said the Negative Rating Watch follows two separate regulatory actions filed by the Consumer Financial Protection Bureau (CFPB) and the Multi-State Mortgage Committee (MMC), on April 20, alleging material weaknesses in the company's servicing practices.

The agency views elevated regulatory scrutiny and compliance risk, coupled with the potential earnings pressure associated with any fines and compliance costs as key rating risks for Ocwen Financial.

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