July 27, 2016 3:13 AM ET

Thrifts and Mortgage Finance

Company Overview of Ocwen Loan Servicing, LLC

Company Overview

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

Suite 100

West Palm Beach, FL 33409

United States

Founded in 1988

Phone:

561-682-8000

Fax:

561-682-8154

Key Executives for Ocwen Loan Servicing, LLC

President and Chief Executive Officer
Age: 53
Compensation as of Fiscal Year 2016.

Ocwen Loan Servicing, LLC Key Developments

Jury Awards Vienna Man $2.6 Million in Case against Ocwen Loan Servicing

A federal jury in Beckley on May 23, 2016 awarded $2.6 million in punitive damages to a Vienna man who sued a mortgage loan company for refusing to investigate issues he raised about his credit report. Ocwen Loan Servicing LLC willfully violated the Fair Credit and Reporting Act, a jury found after a six-day trial. The act requires that any company that reports information is required to investigate all disputes. David Daugherty filed multiple disputes with Ocwen after receiving a credit report that showed he was behind on his mortgage payment. He had requested the report after being turned down for a loan, said one of his attorneys, Jed Robert Nolan, of Hamilton, Burgess, Young & Pollard. Ocwen argued that Daugherty had other negative accounts and, because of that, would have been denied the loan anyway. The company also claimed that it did conduct an investigation at Daugherty's request and that it was sufficient. Daugherty's attorneys argued that the company's investigation consisted of checking basic information about the customer, like their Social Security number. Daugherty and Equifax Information Services reached a confidential settlement agreement before the case went to trial. The six jurors also awarded Daugherty $6,000 in compensatory damages.

Ocwen Loan Servicing, LLC Enters into Amendment No. 5 to Senior Secured Term Loan Facility Agreement

On March 24, 2016, Ocwen Loan Servicing, LLC, as borrower, and Ocwen Financial Corporation and certain subsidiaries of the company, as guarantors, entered into Amendment No. 5 to Senior Secured Term Loan Facility Agreement with the lenders party thereto and Barclays Bank PLC, as administrative agent and collateral agent, pursuant to which certain amendments were made to the Senior Secured Term Loan Facility Agreement, dated as of February 15, 2013. Effective as of March 28, 2016, the Amendment will, among other things: permanently remove the consolidated total debt to consolidated tangible net worth ratio, corporate leverage ratio and interest coverage ratio financial covenants; maintain the loan-to-value ratio covenant at its current 40% level throughout the remaining term of the SSTL; limit the repurchase of the company's common stock or options to an amount not to exceed the sum of (i) $20 million plus (ii) an amount equal to (x) $20 million times (y) the aggregate amount of prepayments on the SSTL made after March 28, 2016 divided by $50 million limit the repurchase of the company's 6.625% Senior Notes due 2019 to an amount not to exceed the sum of (i) $30 million plus (ii) an amount equal to (x) $30 million times (y) the aggregate amount of prepayments on the SSTL made after March 28, 2016 divided by $50 million; require the Company to make a prepayment on the SSTL in an amount equal to $6.3 million (for a total of $19.0 million) on each of May 31, 2016, July 29, 2016 and September 30, 2016; provide for a fee payable to the consenting lenders equal to 1.0% of the aggregate amount of such consenting lenders' SSTL loans outstanding; and make certain clarifications, additions and cleanup items in the collateral value calculations.

Ocwen Loan Servicing, LLC Enters into Amendment Agreement to Senior Secured Term Loan Facility Agreement

On October 16, 2015, Ocwen Loan Servicing, LLC entered into Amendment No. 4 to Senior Secured Term Loan Facility Agreement and Amendment No. 2 to Pledge and Security Agreement with the lenders party thereto and Barclays Bank PLC, as administrative agent and collateral agent, pursuant to which certain amendments were made to (i) the Senior Secured Term Loan Facility Agreement, dated as of February 15, 2013 (as amended, restated, supplemented or otherwise modified, the “SSTL”) and (ii) the related Pledge and Security Agreement, dated as of February 15, 2013. Effective as of October 20, 2015, the Amendment will, among other things: remove, until the fiscal quarter ending June 30, 2017, the interest coverage ratio and corporate leverage ratio financial covenants; establish a process for designating foreign subsidiaries as subsidiary guarantors under the SSTL; increase the Company’s capacity to make certain permitted investments under the investment covenant; expand the Company’s ability to exclude certain assets from the collateral securing the SSTL, to the extent necessary to meet regulatory minimum net worth requirements; increase the applicable interest rate margin by 0.50%; require the Company to use 100% of the net cash proceeds from future asset sales permitted under the general asset sale basket to prepay the loans under the SSTL; provide for a fee, payable to the lenders on March 31, 2017, equal to 3.0% of the aggregate amount of SSTL loans outstanding as of such date; and make certain conforming modifications, as well as adjustments to certain definitions.

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