By Chelsey Dulaney
Ocwen Financial Corp. said Monday that it has regained
compliance with New York Stock Exchange standards after filing its
2014 annual report last week.
Shares gained 5.4% in premarket trading.
The company had delayed filing its 10-K over problems related to
the financial status of its Home Loan Servicing Solutions Ltd.
affiliate, which had put it in jeopardy of having its shares
delisted from the New York Stock Exchange. Ocwen said Monday that
it has received a letter from the NYSE saying it will be removed
from its late-filer list.
Separately, the company disclosed in a regulatory filing Monday
that it is negotiating with lenders to extend and refinance some of
its debt.
In its quarterly report filed with the Securities and Exchange
Commission, the embattled mortgage-servicing company said it
looking to renew, replace or extend debt arrangements that mature
or begin amortization this year. The company said it is also
considering selling and financing advance receivables.
The company warned if it is unable able to change the debt
arrangements, it could face a liquidity crunch.
"Due to the significant level of cash requirements related to
servicing advances, we may not have sufficient levels of liquidity
to fund the operations without our advance financing facilities,"
the company said in the filing.
The company had previously disclosed the information in its 10-K
report.
Ocwen has been plagued by regulatory problems and other
challenges for the past two years, including a December settlement
with New York state regulators over alleged improper servicing
practices for distressed borrowers.
The company is trying to cut its risk exposure by selling off
servicing rights for mortgages owned by government-supported Fannie
Mae and Freddie Mac.
Earlier this month, the company said it had avoided a "going
concern" opinion from its auditor that could have raised questions
about the company's ability to survive--a move that Ocwen said
indicates it is on the rebound.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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