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Ocwen shares plunge as founder steps down

Ocwen Financial Corp. plunged as much as 31% after agreeing to a settlement that prevents it from acquiring mortgage-servicing rights until the company makes improvements to satisfy New York regulators. Executive Chairman William Erbey will step down from his roles at Ocwen and related companies under the accord announced Monday by New York's Department of Financial Services. Ocwen also agreed to provide $150 million in relief for borrowers and hire a monitor. Atlanta-based Ocwen closed down $5.89, almost 27%, at $16.01 after dropping as low as $15.04, the biggest intraday decline since its September 1996 initial public offering. The settlement is the culmination of a yearlong probe...

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