Ocwen Financial Corp.'s loan servicing subsidiary has reached a settlement with the Washington State Department of Financial Institutions' consumer services division over the servicer's practice of using unlicensed offshore companies.

As part of the agreement, Ocwen agreed to a $900,000 fine and to service residential mortgages in Washington only through licensed entities, according to a Thursday news release. Ocwen neither admitted nor denied wrongdoing in agreeing to the settlement.

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