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Ocwen Shares Plunge After New York’s Lawsky Bars New Rights

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Ocwen Financial Corp. plunged as much as 31 percent, the most ever, after agreeing to a settlement that prevents it from acquiring mortgage-servicing rights until the company makes improvements to satisfy New York regulators.

Executive Chairman William Erbey will step down from his roles at Ocwen and related companies under the accord announced today by New York’s Department of Financial Services. Ocwen also agreed to provide $150 million in relief for borrowers and hire a monitor.