Mortgage-servicing company Ocwen Financial Corp., which has
faced regulatory problems and other challenges for the past two
years, said its Houston facility will discontinue
residential-servicing operations.
The move will affect about 140 employees out of a companywide
workforce of about 3,200. The workers may apply for positions at
other Ocwen servicing sites.
Ocwen said the decision is intended to streamline its number of
call-center sites, eliminate redundancies and increase
effectiveness.
The company reached a December settlement with New York state
regulators over alleged improper servicing practices for distressed
borrowers.
Ocwen is trying to cut its risk exposure by selling servicing
rights for mortgages owned by government-supported Fannie Mae and
Freddie Mac.
Write to Josh Beckerman at josh.beckerman@wsj.com
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