873860--3/8/2010--OCWEN_FINANCIAL

related topics

{regulation, change, law}

{loan, real, estate}

{stock, price, share}

{stock, price, operating}

{loss, insurance, financial}

{operation, international, foreign}

{capital, credit, financial}

{provision, law, control}

{personnel, key, retain}

{system, service, information}

{financial, litigation, operation}

Risks Related to the Company Continued economic slowdown and/or continued deterioration of the housing market could increase delinquencies, defaults, foreclosures and advances. We may be unable to obtain sufficient capital to meet the financing requirements of our business. A significant increase in prepayment speeds or delinquencies could adversely affect our financial results. We may be unable to maintain the size of our servicing portfolio. We are subject to investment risks. We use estimates in determining the fair value of certain assets, such as MSRs, auction rate securities and residual securities. If our estimates prove to be incorrect, we may be required to write down the value of these assets which could adversely affect our earnings. A downgrade in our servicer ratings could have an adverse effect on our business, financial condition or results of operations. Governmental and legal proceedings and related costs could adversely affect our financial results. The expanding body of federal, state and local regulation and/or the licensing of loan servicing, collections or other aspects of our business may increase the cost of compliance and the risks of noncompliance. Future legislative changes and other actions and changes may adversely affect future incremental revenues. Our earnings may be inconsistent Our hedging strategies may not be successful in mitigating our risks associated with interest rate risk. We have significant operations in India that could be adversely affected by changes in the political or economic stability of India or by government policies in India or the U.S. Technology failures could damage our business operations and increase our costs. The loss of the services of our senior managers could have an adverse effect on us. Our directors and executive officers collectively own a large percentage of our common shares and could influence or control matters requiring shareholder approval. We are exposed to market risk, including, among other things, liquidity risk, prepayment risk and foreign currency exchange risk. The tax liability to Ocwen as a result of the Separation could be substantial. Risks Relating to Ownership of Our Common Shares Our common share price may experience substantial volatility which may affect your ability to sell our common shares at an advantageous price. There may be future sales or other dilution of our equity, which may adversely affect the market price of our common stock. Because of certain provisions of our organizational documents, takeovers may be more difficult possibly preventing you from obtaining an optimal share price. Risks Relating to the Separation of Altisource We could have conflicts with Altisource, and our Chief Executive Officer and Chairman of the Board, and other officers and directors, could have conflicts of interest due to their relationships with Ocwen and Altisource which may be resolved in a manner adverse to us. New prospective tax regulations, if held applicable to the Separation, could materially increase tax costs to Ocwen.

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873860--3/8/2010--OCWEN_FINANCIAL_CORP