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Here’s Why Ocwen Financial Corp Stock Is Trading Down Today

Ocwen disclosed that it had been threatened with possible delisting by NYSE due to failure of financial disclosures

• OCN

By: TROY KUHN

Published: Mar 24, 2015 at 12:33 pm EST

In a press release after the market closed on Monday, Ocwen Financial Corp (NYSE:OCN) announced that the New York Stock Exchange (NYSE) Regulation, Inc. sent a letter to the company on Wednesday. It clearly stated that the company was not in compliance with the standards required for continued listing in NYSE as it failed to file Annual Report on Form 10-K for the year ended December 31, 2014. The stock is trading down by 3.07% at $8.53 as of 8:57AM EDT.

Ocwen, being not able to meet its obligation, remains unclear about when it will be able to file the 10-K. The company said that it was unable to make disclosures on time because it focused on the analysis of Home Loan Servicing Solutions Ltd’s (NASDAQ:HLSS) ability to continue providing funds for new servicing advances.

HLSS is Ocwen’s affiliate that provides finance for the purchase of its mortgage-servicing rights. Ocwen believes the review and focus on HLSS was crucial, as it notified that the company might face substantial negative impacts on it financial position, if HLSS fails to finance new servicing advances.

The company stated: “The Company requires additional time to prepare information related to its ability to operate as a going concern.” Normally, the process of delisting a company by NYSE takes about six months or even more. This time-frame might prove to be an opportunity for Ocwen to clear all the queries in the auditors' minds and disclose its financial statements.

Ocwen's disclosure of receiving the deficiency letter clearly made significant impact on the trading price of its stock, as it went down about 5.11% in pre-market session. Since the start of the year, the stock has experienced 42.26% decline at average daily volume of 7 million shares.

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