Short-lived bounce for Ocwen on rumor of settlement

|About: Ocwen Financial Corporation (OCN)|By:, SA News Editor

A deal between Ocwen Financial (OCN +0.9%) and the New York Dept. of Financial Services is near, reports Inside Mortgage Finance, with a source saying the Wells Fargo (WFC) matter "will come to a head shortly. That source also questions whether Ben Lawsky will charge Ocwen with anything at all.

To review: New York DFS chief Lawsky - amid an investigation into Ocwen's servicing practices - put a moratorium on Ocwen's purchasing any more packages of mortgage servicing rights, including a $2.7B deal with Wells Fargo.

Ocwen was up nearly 3% right after the rumor hit the wires, but has given back much of the gain.