Ocwen Plunges More Than 30% as Mortgage Servicer’s Expenses Grow

Ocwen Financial Corp. plunged in New York trading after the mortgage servicer reported higher-than-expected expenses while revamping its business following regulatory scrutiny.

The stock tumbled 28 percent to $8.43, closing at the lowest level since April 27 after paring a drop of as much as 32 percent. The shares had already fallen 75 percent over two years through Thursday, when Ocwen issued a quarterly earnings report after the markets closed. Compass Point Research & Trading LLC analysts said the results represented a loss of 12 cents a share after excluding certain items, trailing their earnings forecast of 18 cents a share, partly due to elevated servicing and interest expenses.