Ocwen Financial Corp. shares climbed Thursday after the company said it agreed to pay $30 million to resolve lawsuits that claimed it didn't properly include disclosures for loans it was servicing.

The stock rose 10%, or 16 cents, to $1.73. It is still down 84% over the past 12 months.

The lawsuits, which were brought by Michael Fisher and the U.S. Justice Department, alleged that Ocwen didn't make required disclosures in connection with the Home Affordable Modification Program, a government program introduced after the housing crisis to help struggling homeowners avoid foreclosure.

Under the preliminary settlement, Ocwen will pay $15 million to the U.S. and $15 million to Mr. Fisher, for attorneys' fees and costs.

Ocwen hasn't admitted liability or wrongdoing, and the settlement hasn't received final approval.

The Justice Department didn't immediately return a request for comment.

"Right now I wouldn't want to make any more comments until that process is concluded," Samuel Boyd, a lawyer for Mr. Fisher, said. "There is no final settlement until the Department of Justice concludes its process."

In the wake of regulatory problems, the West Palm Beach, Fla., company has pared down its mortgage-servicing rights and shifted its focus to mortgages not owned by government agencies, selling off assets and reducing its workforce in recent years.

Earlier this year, Ocwen paid $2 million to settle with the Securities and Exchange Commission over charges that it used flawed methodology to value mortgages and lacked proper accounting controls.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 23, 2016 12:55 ET (16:55 GMT)

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