Thrifts and Mortgage Finance
Company Overview of Ocwen Loan Servicing, LLC
Ocwen Loan Servicing, LLC offers and services residential mortgage loans. Its loan servicing includes customer service, collections, investor accounting, escrow, loss mitigation, foreclosure, and property disposition. The company services mortgage backed securitized and unsecuritized loans and securities. The company was founded in 1988 and is based in West Palm Beach, Florida. Ocwen Loan Servicing, LLC operates as a subsidiary of Ocwen Financial Corp.
1661 Worthington Road
West Palm Beach, FL 33409
Founded in 1988
Key Executives for Ocwen Loan Servicing, LLC
President and Chief Executive Officer
Compensation as of Fiscal Year 2016.
Ocwen Loan Servicing, LLC Key Developments
District of Columbia Department of Insurance, Securities and Banking Joins State Regulators by Issuing a Cease-and-Desist Order to Ocwen Loan Servicing, LLC
Apr 20 17
On April 20, 2017, the District of Columbia Department of Insurance, Securities and Banking (DISB) joined more than 20 State Mortgage Regulators that issued regulatory orders or charges to Ocwen Loan Servicing, LLC to address violations of state and federal laws including the mishandling of consumer escrow accounts, unlicensed activity, and a deficient financial condition. Mortgage escrow accounts hold borrower funds that the mortgage company is entrusted to disburse to pay real estate taxes and hazard insurance. The majority of the orders prohibit the acquisition of new mortgage servicing rights and the origination of new mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Some orders also require Ocwen to cease any ongoing unlicensed activity. The orders are the culmination of several years of examinations and monitoring that revealed the company is mismanaging consumer mortgage escrow accounts. The company also has operated unlicensed mortgage servicing facilities in certain states, but not in the District of Columbia, in apparent violation of state licensing statutes over a period of several years.
Ocwen Loan Servicing, LLC Extends Corporate Debt Maturities to December 2020 and December 2022
Dec 6 16
Ocwen Financial Corporation (Ocwen or the company) announced the completion of the settlement of the previously announced Exchange Offer by its Ocwen Loan Servicing, LLC (OLS) pursuant to which OLS issued $346.9 million aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2022 (the “New Second Lien Notes”) in exchange for $346.9 million aggregate principal amount (or 99.1%) of Ocwen’s 6.625% Senior Notes due 2019 (the “Existing Notes”) that had been tendered in the Exchange Offer. The Exchange Offer was purely a debt-for-debt exchange offer and none of OLS, Ocwen or any of their subsidiaries received any cash proceeds from the transaction. Ocwen also announced that concurrently with the closing of the Exchange Offer, OLS entered into a new Senior Secured Term Loan Facility (the “SSTL”), with an initial interest rate of 6.0%. The SSTL provides for a $335 million term loan credit facility with a maturity date of December 5, 2020, and is refinancing the prior senior secured term loan that had a maturity date of February 15, 2018 and an interest rate of 5.5%. The SSTL refinancing was predominantly a debt-for-debt refinancing and, after allowing for payment of expenses on both transactions and original issue discount on the SSTL refinancing, none of OLS, Ocwen or any of their subsidiaries received net cash proceeds from these transactions.
Ocwen Loan Servicing, LLC Extends the Expiration Date of Exchange Offer from November 30, 2016, to December 2, 2016
Nov 30 16
Ocwen Financial Corporation announced that Ocwen Loan Servicing, LLC extended the expiration date of its previously announced Exchange Offer from November 30, 2016, to December 2, 2016 (such date and time, as the same may be further extended, the "Expiration Date"). On November 30, 2016, $346.9 million aggregate principal amount (or 99.1%) of Ocwen's 6.625% Senior Notes due 2019 (the "Existing Notes") had been tendered in the Exchange Offer. On November 1, 2016, OLS commenced an offer to exchange (the "Exchange Offer") all outstanding Existing Notes held by eligible holders for up to $350 million aggregate principal amount of newly issued 8.375% Senior Secured Second Lien Notes due 2022 of OLS (the "New Second Lien Notes") upon the terms and subject to the conditions set forth in the offering memorandum dated November 1, 2016 and the related letter of transmittal. The Exchange Offer is purely a debt-for-debt exchange offer and none of OLS, Ocwen or any of their subsidiaries will receive any cash proceeds from the transaction. Upon the terms and subject to the conditions set forth in the Offering Materials, eligible holders who had validly tendered and did not validly withdraw their Existing Notes on or prior to November 15, 2016, and whose tenders are accepted for exchange, will receive, the Total Exchange Consideration which consists of $950 principal amount of New Second Lien Notes for each $1,000 principal amount of Existing Notes tendered (the "Exchange Consideration"), plus an early tender premium equal to $50 principal amount of New Second Lien Notes for each $1,000 principal amount of Existing Notes tendered (the "Early Tender Premium"). Eligible holders who validly tender or have validly tendered their Existing Notes after the Early Tender Date and on or prior to the Expiration Date, and whose tenders are accepted for exchange, will only be eligible to receive the Exchange Consideration and not the Early Tender Premium. Withdrawal rights for the Exchange Offer expired on November 15, 2016. The settlement date for the Exchange Offer is expected to occur within three business days of the Expiration Date subject to the satisfaction or waiver of the conditions to the Exchange Offer. Eligible holders of Existing Notes accepted for exchange in the Exchange Offer will also receive a cash payment equal to the accrued and unpaid interest in respect of such Existing Notes from November 15, 2016 (the most recent interest payment date for the Existing Notes prior to the settlement date) to, but not including, the settlement date.
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