Ocwen Financial announced late Friday that it reached a $223 million settlement with the California Department of Business Oversight, ridding itself of the restrictions that hampered its mortgage business in California for more than two years.
The settlement includes a cash payment of $25 million. As part of the settlement, Ocwen is also required to provide an additional $198 million in debt forgiveness through loan modifications to existing California borrowers over a three-year period.
The terms of the new settlement are a far cry from Ocwen’s original California settlement.
In January 2015, Ocwen reached a settlement with the California Department of Business Oversight, which initially threatened to suspend Ocwen’s mortgage license because the company failed to turn over documentation showing that it complies with the state’s laws.