Ocwen survives Wells Fargo vote on termination of servicing rights

Certificate holders fail to muster votes on 12 of 12 deals

Ocwen Financial’s (OCN) journey out of the woods continues, with the company surviving a vote by Wells Fargo (WFC) certificate holders to terminate Ocwen’s servicing rights on 12 deals.

All 12 deals failed to garner enough support to transfer servicing from Ocwen, though one came close to the majority vote needed.

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On March 13, 2015, Wells Fargo sent a Notice of Event of Default and Request for Direction requesting from the certificate holders of the trust direction on whether to terminate Ocwen as servicer. This was triggered when Ocwen’s servicer ratings were downgraded.

Certificate holders were given until May 12, 2015, to direct the master servicer to terminate Ocwen.

The master servicer completed tabulating the results from the solicitation of certificate holder direction and announced them.

“We are pleased with the outcome of the vote by Wells Fargo’s certificate holders,” Ocwen said in a statement. “Ocwen will continue to service pools for the benefit of the entire trust, and will continue with its industry leading modifications to result in sustainable loans benefitting the loan investors as a whole as well as borrowers and communities.”

This good news for the beleaguered Ocwen comes a few days after more good news, that the company is almost in the clear with the National Mortgage Settlement after more than a year of scrutiny due to problems with the servicer’s internal review group.  

But it also comes after the Street reacted badly to Ocwen’s second quarter earnings.

3d rendering of a row of luxury townhouses along a street

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