By Josh Beckerman
Wells Fargo & Co. and Ocwen Financial Corp. have terminated
a transaction that called for Ocwen to buy residential-mortgage
servicing rights to $39 billion in loans from Wells Fargo.
The transaction was announced in January. In February, the
office of Benjamin Lawsky, the superintendent of New York's
Department of Financial Services, halted the transaction, and Ocwen
said the sale was placed on "indefinite hold."
Mr. Lawsky's office has raised questions about Ocwen's business
practices, mostly involving distressed homeowners or borrowers
facing foreclosure, on several occasions. In October, he said the
company backdated thousands of letters to borrowers that prevented
them from being able to promptly correct problem loans. Ocwen at
the time said it was investigating the issue and that "we apologize
to all borrowers who received misdated letters."
Wells Fargo said in a statement that the transaction is unlikely
to have a material effect on financial results. Ocwen said in a
filing that it will receive back its $25 million deposit.
Write to Josh Beckerman at josh.beckerman@wsj.com
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