Ocwen Financial Is in Trouble
VaCAP concerned about Ocwen financial deteriorating condition…
We have all been there; you are busy and you lose track of your accounts receivables. Suddenly, you have 45, 60 and 90 day past due invoices. VaCAP wants to remind you to pay attention not only to your receivables, but industry news to make informed decisions going forward.
Two days ago HousingWire reported Ocwen Financial is in trouble with the New York Stock Exchange. According to the article, Ocwen stock has been trading below $1.00 for more than 30 days in violation of the NYSE rules.
Ocwen runs afoul of NYSE after stock stays below $1. Nonbank’s shares haven’t been above $1 in a month. For the second time in five years, Ocwen Financial has found itself in violation of the New York Stock Exchange’s rules.
Back in 2015, NYSE threatened to delist Ocwen after the nonbank failed to file its annual report on time. And now, Ocwen is in more trouble with NYSE after the company’s stock fell below $1 and stayed there for a month.
NYSE rules stipulate that the average closing price of a company’s stock must be at least $1 per share over a consecutive 30 trading-day period…
VaCAP is not concerned about the NYSE rules, but is concerned the financial condition of Ocwen is deteriorating. Take a look at the 5 year trend of Ocwen. Look familiar? Is this reminiscent of the events that transpired with Clarocity on the TSX Exchange in Canada? See the HousingWire article here.
The current state of the profession and the housing market is in limbo due to the COVID-19 pandemic. Servicers are forced to grant forbearances on mortgages and many will have a liquidity problem and may not survive. Lenders such as JP Morgan Chase have tightened their requirements for a new mortgage and some nonbank companies will be impacted as well. Now more than ever, appraisers need to protect their businesses and pay attention to the market happenings.