Otto Kumbar, formerly the CEO of Liberty Home Equity Solutions, has left its parent company.
Ocwen Financial Corporation (NYSE: OCN) on Monday announced Kumbar’s departure from the company, which eliminated his position of president, CEO, and director of Ocwen Mortgage Servicing Inc. “in connection with the company’s previously disclosed strategic assessment of its lending business.”
Kumbar will receive a severance payment of $1.25 million, according to a filing with the Securities and Exchange Commission.
“We are grateful to Mr. Kumbar for his contributions and service throughout his time with the company, and we wish him well in his future endeavors,” Ocwen spokesperson John Lovallo said in a statement provided to RMD.
John Kim will take over management of Ocwen Mortgage Servicing as its president.
“Michael Kent will remain president of Liberty Home Equity Solutions, Inc., and will continue to focus on growing Liberty’s retail and wholesale channels,” Lovallo said.
Kumbar had worked for Liberty since 2010, when it was still known as Genworth Financial Home Equity Access. Before his time at Liberty, he was Genworth Financial’s managing director for Latin America, CEO of Australia, and managing director for insurance in Europe.
The West Palm Beach, Fla.-based conglomerate signaled its intention to depart from the reverse mortgage business last fall, with CEO Ron Faris saying the company wouldn’t hesitate to ditch “underperforming business or product lines.”
“We are currently evaluating our long-term strategy there, including the potential sale of the reverse lending business, or some assets of the business,” Faris said on Ocwen’s third-quarter earnings call in November.
Ocwen has not yet scheduled its earnings release for the fourth quarter of 2017.
Kumbar’s departure from Liberty was effective February 9.
Written by Alex Spanko