Ocwen Financial (OCN) Updates on Recent Credit Ratings Changes

Ocwen Financial (NYSE: OCN) reminds investors that we are the subject of mortgage servicer ratings or rankings (collectively, ratings) issued and revised from time to time by credit rating agencies including Moody’s Investors Services, Inc. (Moody’s), Morningstar, Inc. (Morningstar), Standard & Poor’s Rating Services (S&P) and Fitch Ratings Inc. (Fitch). Favorable ratings from these agencies are important to the conduct of our loan servicing and lending businesses.

The Company believes that it is likely that one or more of the rating agencies will take ratings action in the near term. The actions could be negative, positive or re-affirm an existing rating. There is no guarantee that any such actions will be taken.

The following table summarizes our key current ratings from these rating agencies:

(1) Residential non-prime servicer rating.

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, each of these rating agencies has downgraded our servicer rating within the last nine months. In addition to servicer ratings, each of the rating agencies will from time to time assign an outlook (or a ratings watch such as Moody’s review status) to a mortgage servicer’s rating status. A negative outlook is generally used to indicate that a rating “may be lowered.” Each of S&P and Morningstar has assigned us a negative outlook, while Moody’s has placed us on review for downgrade. Fitch has assigned us a stable outlook. Downgrades in our servicer ratings could affect the terms and availability of debt financing facilities that we may seek in the future, and could impair our ability to consummate future servicing transactions or adversely affect our dealings with lenders, other contractual counterparties and regulators, including our ability to maintain our status as an approved servicer by Fannie Mae and Freddie Mac. In addition, some of our servicing agreements require that we maintain specified servicer ratings. See Item 1A. Risk Factors - Risks Relating to Our Business in our Annual Report on Form 10-K for the year ended December 31, 2014 for further discussion of the adverse effects that a downgrade in our servicer ratings could have on our business, financing activities, financial condition or results of operations.

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