In an effort to repair its reputation, Ocwen has appointed a pastor and a charity executive to its board. Also, billionaire William Erbey is getting a cushy severance after he stepped down as executive chairman of the troubled company.
There's no denying that Ocwen Financial Corp. has had a horrible, no good, very bad year, and now, in an effort to repair its reputation, the company has appointed two new independent directors to its Board of Directors.
New Jersey pastor DeForest Blake Soaries, Jr. and Phyllis Caldwell, vice chair of the Community Preservation and Development Corp., will join the board of the troubled company.
"Both are highly accomplished individuals who share Ocwen's commitment to the highest standards of corporate governance, and they both care deeply about borrowers and communities impacted by the housing crisis," Ronald Faris, president and CEO of Ocwen. "Their backgrounds and skills are perfectly aligned with Ocwen's mission to be recognized as an industry leader in foreclosure prevention and community engagement."
Ocwen's chairman gets cushy severance
As part of a deal with New York regulators, billionaire William Erbey agreed to step down as executive chairman of Ocwen and other related companies, but he's not leaving empty-handed.
Erbey is getting $1.2 million in cash and lifetime medical coverage for he and his wife. Ocwen will pay Erbey $725,000 as a severance payment, $475,000 in lieu of relocation benefits, and the lifetime health insurance, according to Bloomberg. He’ll also receive a $725,000 dividend from his preferred stake in Ocwen Mortgage Servicing before the firm repurchases the holding for $100.
Erbey also agreed not to recruit the company’s staff or solicit its customers for two years. The deal with Ocwen calls for him to cooperate with some litigation and audit matters.
