UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): SEPTEMBER 17, 1998
OCWEN ASSET INVESTMENT CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
VIRGINIA 001-14043 65-0736120
(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION FILE NUMBER) IDENTIFICATION NO.)
OF INCORPORATION)
THE FORUM, SUITE 1000
1675 PALM BEACH LAKES BOULEVARD, WEST PALM BEACH, FLORIDA 33401
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
(561) 682-8000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
N/A
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS
The news release of Ocwen Asset Investment Corp., dated September 17, 1998,
responding to the New York Stock Exchange and investor inquiries regarding its
common stock price, is attached and filed herewith as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable
(c) Exhibits
(99) News release of Ocwen Asset Investment Corp. dated September
17, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
OCWEN ASSET INVESTMENT CORP.
(Registrant)
By: /s/ William C. Erbey
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William C. Erbey
Chairman and Chief Executive Officer
Date: September 17, 1998
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<PAGE>
INDEX TO EXHIBIT
EXHIBIT NO. DESCRIPTION PAGE
99 News release of Ocwen Asset Investment Corp. dated 5
September 17, 1998.
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OCWEN ASSET INVESTMENT CORP.
1675 PALM BEACH LAKES BOULEVARD
WEST PALM BEACH, FL 33401
NYSE SYMBOL: OAC
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NEWS RELEASE: IMMEDIATE SEPTEMBER 17, 1998
OCWEN ASSET INVESTMENT CORP. RESPONDS TO NYSE AND INVESTOR INQUIRIES
WEST PALM BEACH, FL -- Ocwen Asset Investment Corp.'s (NYSE: OAC) common stock
price closed yesterday, September 16, 1998, at $6.125, down $1.6875 for the day.
OAC announced that it had received a request from the New York Stock Exchange
(the "NYSE") to issue a public statement indicating whether there were any
corporate developments which may explain yesterday's market activity. OAC also
received investor inquiries in response to yesterday's market activity, many of
which focused on OAC's portfolio of residual securities.
In response to those inquiries, OAC pointed out that in recent weeks, the stock
prices of many entities that hold residual securities have been negatively
affected, and OAC provided the following information:
o OAC's $415 million portfolio of securities available for sale
includes approximately $268 million of unrated residential
subprime residuals.
o In the unlikely event of prepayment of an ENTIRE pool of
mortgages underlying any particular OAC residual, OAC would
receive all of the related overcollateralization reserves and
prepayment penalties.
o Of the $268 million, $122 million represents seasoned
residuals (i.e., securitized between 1994 and 1997) and $146
million represents unseasoned residuals (i.e., securitized in
1998).
o With respect to the seasoned residuals, overcollateralization
reserves are funded at approximately $116 million.
o With respect to the unseasoned residuals, (i)
overcollateralization reserves are funded at approximately $16
million, (ii) 85% of the underlying loans are adjustable,
(iii) the weighted average coupon of the underlying loans is
9.8%, and (iv) 73% of the underlying loans have prepayment
penalties.
o Yesterday's closing price for OAC's common stock of $6.125 per
share represents a market value of $116 million, which is a
discount of $158 million to the $274 million in shareholder's
equity at June 30, 1998.
OAC will continue to closely monitor the situation with respect to its portfolio
of residual securities. In addition, OAC anticipates announcing its regular
quarterly dividend early next week.
OAC, a hybrid mortgage real estate investment trust (or REIT) headquartered in
West Palm Beach, Florida, invests in distressed commercial real estate,
subordinate commercial mortgage-backed securities and subordinate and residual
interests in residential mortgage-backed securities.
CERTAIN STATEMENTS CONTAINED HEREIN MAY NOT BE BASED ON HISTORICAL FACTS AND MAY
BE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES ACT OF
1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS MAY BE IDENTIFIED BY
REFERENCE TO A FUTURE PERIOD(S) OR BY THE USE OF FORWARD-LOOKING TERMINOLOGY
SUCH AS "EXPECT," "MAY," "WILL," FUTURE OR CONDITIONAL VERB TENSES, SIMILAR
TERMS, VARIATIONS ON SUCH TERMS OR NEGATIVES OF SUCH TERMS. ACTUAL RESULTS COULD
DIFFER MATERIALLY FROM THOSE INDICATED IN SUCH STATEMENTS DUE TO A VARIETY OF
FACTORS, INCLUDING, BUT NOT LIMITED TO, CHANGES IN ECONOMIC ENVIRONMENTS,
GOVERNMENT FISCAL AND MONETARY POLICIES, PREVAILING INTEREST OR CURRENCY
EXCHANGE RATES, CREDIT, PREPAYMENT, BASIS AND ASSET/LIABILITY RISKS, THE
FINANCIAL AND SECURITIES MARKETS, THE AVAILABILITY OF AND COSTS ASSOCIATED WITH
OBTAINING ADEQUATE AND TIMELY SOURCES OF LIQUIDITY, GOVERNMENT REGULATIONS
AFFECTING REAL ESTATE INVESTMENT TRUSTS, LOAN SERVICING EFFECTIVENESS, THE
COURSE OF NEGOTIATIONS AND THE ABILITY TO REACH AGREEMENT WITH RESPECT TO THE
MATERIAL TERMS OF ANY PARTICULAR TRANSACTION, SATISFACTORY DUE DILIGENCE
RESULTS, SATISFACTION OR FULFILLMENT OF AGREED UPON TERMS AND CONDITIONS OF
CLOSING OR PERFORMANCE, THE TIMING OF TRANSACTION CLOSINGS, ACQUISITIONS AND THE
INTEGRATION OF ACQUIRED BUSINESSES, SIZE AND NATURE OF THE SECONDARY MARKET FOR
MORTGAGE LOANS AND THE MARKET FOR SECURITIZATIONS, OTHER FACTORS GENERALLY
UNDERSTOOD TO AFFECT THE REAL ESTATE ACQUISITION, MORTGAGE AND LEASING MARKETS,
AND OTHER RISKS DETAILED FROM TIME TO TIME IN OAC'S REPORTS AND FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION, INCLUDING ITS REGISTRATION STATEMENT ON FORM
S-11 AND PERIODIC REPORTS ON FORMS 10-Q, 8-K AND 10-K.
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CONTACT CHRISTINE A. REICH (561) 682-8569
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