Ocwen Financial's settlement with New York regulators could have a negative impact on the cash flows of mortgage bonds heavily exposed to loans serviced by Ocwen in that state, according to Moody's Investors Service.

Ocwen last week reached a $150 million settlement with the New York Department of Financial Services. In addition to the $100 million civil penalty to the DFS, Ocwen will pay $50 million to current and former New York borrowers whose loans it serviced.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.