New York's superintendent of financial services Benjamin M. Lawsky hasn't signed off on two deals that would create the largest processor of subprime mortgages, reports the Wall Street Journal. The plan for Ocwen Financial Corp (OCN) to buy Homeward Residential Holdings Inc. and the mortgage-servicing unit of Residential Capital LLC needs Lawsky's approval for the deals to close. Ocwen has said it expects to close by early next year. Lawsky is demanding that Ocwen bring on a monitor of his choice who would oversee the company's mortgage operations for two years and recommend changes in business practices.
- the Wall Street Journal