Amid ongoing troubles with Ocwen Financial Corporation (NYSE: OCN), the nonbank servicer now faces delisting from the New York Stock Exchange as a result of its failure to comply with continued listing standards.
Ocwen, the parent company of reverse mortgage lender Liberty Home Equity Solutions, recently received a deficiency letter from NYSE Regulation, Inc., indicating that the company’s failure to timely file its annual report for the fiscal year ended Dec. 31, 2014, has threatened its listing status.
Previously, Ocwen filed a form with the Securities and Exchange Commission (SEC) on March 3, stating that it would require additional time to complete its annual report, but that it would be filed on or before March 17. Later, the company delayed the release of its annual report again to March 23.
That day, Ocwen announced it had received the deficiency letter from NYSE Regulation due to its failure to timely file its annual report.
“At this time, the company is unable to provide an expected date on which it plans to file its Form 10-K [annual report],” Ocwen writes in a statement released Monday.
Ocwen said in its statement it will need additional time because it continues to analyze and review Home Loan Servicing Solution, Ltd.’s ability to continue to meet its obligations to fund new servicing advances.
The threat of delisting follows on the heels of the nonbank’s rapid unloading of its mortgage servicing rights (MSRs), having announced plans to sell a $9.6 billion portfolio to a subsidiary of Water Investment Management Corp. (NYSE: WAC) and reports of it selling a $45 billion portfolio of MSRs to JPMorgan Chase & Co. (NYSE: JPM).
The day after its receipt of the deficiency letter, Ocwen also announced its plans to sell a $25 billion portfolio of MSRs to an indirectly held, wholly owned subsidiary of Nationstar Mortgage Holdings Inc. (NYSE: NSM).
Written by Emily Study