CIT Pays $29.9MM to Settle Mortgage Servicing Rights Case
DEC 5, 2017 - 7:08 am
According to an 8-K filing, Ocwen Loan Servicing filed a demand for arbitration against CIT alleging that CIT failed to meet its contractual obligations to indemnify Ocwen for losses allegedly suffered from servicing errors attributable to the period prior to the June 2013 sale of mortgage servicing rights to Ocwen and CIT’s ownership of the business.
On November 22, 2017, CIT and Ocwen agreed to a settlement of $29.9 million to resolve the claims. CIT said it is adequately reserved for the settlement and the settlement will not have a material effect on CIT’s financial condition or results of operations.
According to a filing with the SEC, the settlement with CIT Bank is for “certain allegations under a 2013 transaction pursuant to which Ocwen acquired certain mortgage servicing rights and related servicing advance receivables from OneWest.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
Joe Nachbin’s passion for equipment finance was so strong, he remained dedicated to his work until two hours before he passed away in July 2022, according to his wife, Ruby Nachbin. Attorney and investment banker, Paul Bent, senior managing director... read more
Believing in the leadership motto, “Learn more, inspire more, do more,” Ricardo E. (Ricky) Rios, chief operating officer of Commercial Equipment Finance, also models his life after it. Following his passion for self-development, Rios has taken Commercial Equipment Finance to... read more