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Subprime Bubble Pop 2.0? Department Of Financial Services Slams America's Largest Subprime Servicer
Once upon a time, in the distant 2005 and 2006, the world just couldn't get enough of such subprime mortgage superstars as New Century Financial. In fact, some may have forgotten, but none other than David Einhorn was a director of New Century until March 2007, when suddenly everything fell apart and a few weeks later the company was bankrupt. The subprime collapse that followed, which contrary to Ben Bernanke's promises was "not contained", is what according to most catalyzed the plunge of the US economy into the greatest depression since 1929, led to the default of Lehman Brothers and nearly ended the financial system.
Fast forward to 2014, when the US has a new subprime servicing superstar, which just like in 2006, also happens to be a hedge fund darling. The company: Ocwen Financial (a name which originated when some drunk banker or executive spelled Newco in reverse) which currently is responsible for servicing over $106 billion in subprime mortgages. A darling so prominent among the hedge fund community, it was one of the most beloved hedge fund hotel stocks in late 2012 and 2013, and judging by its current list of holders, still has a plethora of who-is-who hedge and mutual fund holders.
Well, in what may be a resounding echo of March 2006, moments ago the New York Superintendent of Financial Services said that Ocwen had engaged in abuses that could potentially harm hundreds of thousands of borrowers. As AP reports, the state regulator issued a letter Tuesday to Ocwen Financial Corp., documenting the same kinds of suspicious actions that worsened the housing crisis and the Great Recession.
Ocwen inappropriately backdated foreclosure warnings and letters that denied mortgage loan modifications, making it nearly impossible for borrowers to appeal the company's decision, according to the letter from Benjamin Lawsky, New York's Superintendent of Financial Services.
The letter refrains from saying whether the backdating was intentional or the result of poor oversight by Ocwen. The company managed $106 billion worth of subprime mortgages at the start of 2014, according to Inside Mortgage Finance.
Here is the full letter:
Moments ago Ocwen replied. Its explantion - nothing is criminal here, it was a glitch, see?
- OCWEN ADDRESSES LETTER FROM NY DEPARTMENT OF FINL SERVICES
- OCWEN INADVERTENTLY SENT IMPROPERLY DATED LETTERS
- OCWEN CITES SOFTWARE ERRORS IN CORRESPONDENCE SYSTEMS
See: "software errors", i.e., glitches. So you must acquit
The full laughable statement:
Ocwen Financial Corporation (NYSE:OCN), the nation's largest independent mortgage servicer, today made the following statement in response to a letter it received from the New York Department of Financial Services ("DFS") related to erroneously dated borrower correspondence, and subsequent media coverage of the DFS's letter.
"Ocwen regrets that, due to software errors in our correspondence systems, we inadvertently sent improperly dated letters to some borrowers. As always, our goal is to avoid foreclosure. In the case of the 283 borrowers in New York who received letters with incorrect dates, 281 are currently borrowers with us. We are continuing to review the rest of the cases. We believe that we have resolved the letter dating issues that have been identified to date, and we continue our investigation as to whether there are additional letter dating issues that need to be resolved. We are working with and fully cooperating with DFS and the Monitor to address their concerns."
So will the US Superintendent of Financial Services, Benjamin Lawski, let this too be swept under the rug or will he inevitably fold, and pretend that nothing has happened, instead chosing to believe the company that it has now "fixed the glitch."
For now OCN's investors are not too happy and OCN was down some 15% after being unhalted. Down, that is, at least until the BTFD crew - completely oblivious of the fundamental reality - comes in, and bids the stock back into the green again. Because in the New Normal, the fraud is not in just one stock: it is the entire market.
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Linda Green coming out of retirement?
Not really surprising since these fuckers are all shady
"You gonna get serviced."
Aaaaaand, we're back
At what point will the whole SEC be taken out back and shot?
Haa vol!
They are all filthy animals. Exterminate.
Yep. Exterminate with fire.
All your doomsday crap and the markets are bullish!! WTF I sold my GILD at $95 and its at $105. You basturds! I knew i should have followed my instincts. Zero H is right 1% of the time.
Sounds to me like you're the retard who doesn't know how to trade. Maybe you should read the Hedge's conflict and full disclosure policy. Here, I'll even provide the link:
http://www.zerohedge.com/node/13972
I especially like this statement:
"You should assume that at all times we are so totally just talking our book it would shock and awe you like the unexpected, early-morning arrival of a cluster of BGM-109C Tomahawks (were you a believer in the importance of "optics" that is)."
Can I interest you in some Dr Koop share certificates?
Sorry, I'm long Pets.com bro
Why don't you go back to Motley Fool? I hear they're an investors best friend!
Jeebus. Anybody who has been reading ZH long enough should have known
The Tylers have been pretty clear that this game is going to go on until the music stops.
You really need to submit your request to refunds@zerohedge.com
Wait a minute. Shady deals? Didn't just a few days ago the Dept of Housing and Urban Development and Associated Free Shit just demand that quality standards for borrowers be relaxed to the point of NINJA?
And they're saying there's some funny shit a goin' on?
I'm confused
I got a hunch that whatever section of the brain is that links the left and right hemispheres is severed so that the right hand really doesn't know what the left hand is doing.
huh
Still can't solve the revenue side though.
Looks like it'll have to come from State and local Governments again.
(Or a bail-in. www.bankofengland.co.uk/publications/Documents/news/2012/nr156.pdf)
Right, just a few days ago we were reading about banks were being pressured to give home loans to back alley winos....now there's some shady lax lending concerns? WTF?
The first tenticle doesn't know what the 8723rd is doing.
US Citizen, Press TV reporter dead in car crash near Syria 2 days after Turkey calls her a spy
http://wtfrly.com/2014/10/20/us-citizen-press-tv-reporter-dead-in-car-cr...
Some shitty inconsequential fine in the works. Next.
"Just give the clown bitch some of the loot."
NFI, the favorite of dog food and chilli pepper eaters everywhere.
Looks like current/former employee whistleblower cites 2 incidents where compliance ignored the issue. So, one must assume it was purposely done.
Oh well, slap on the wrist fine. Move along, nothing to see here. But then again...public company and that SEC Whistleblower program....
One can hope for more.
and like I did in 2007 the borrower will get fucked again. beware of the scam the tbtf banks want to steal your home and everything else is smoke and mirrors unbelievable
Say NO to HELOC!
My buddy racked up over a 100k in HELOC debt because of medical bills.
This is a tough game.
My house and my PMs are not touchable. These are things my kid might benefit from one day if I am lucky. Yeah, he probably get a house that is worth shit and PMs that are worth shit as well. Hey, but he will have some shit.
Software errors.... LOl. Next thing you know they will be blaming the weather.
1,2,10,50 times is an oversite/error/system clitch. Thousands is not a glitch.
YOU BE THE JUDGE:
Fat piece of shit.
http://www.forbes.com/sites/calebmelby/2013/09/16/meet-the-20-newcomers-...
No wonder he is a Wall Street darling:
1. He offloads their shitty loan porfolios for pennies on the dollar.
2. He uses behavioral finance and datamining to smoke his borrowers.
3. He is based in St Croix so he can avail himself of the tax benefits of domiciling in an economic development zone.
4. However, his employees are all based in call centers located in the Phillipines and India.
5. He ran GE Capital's mortgage business.
6. He looks like he would make a better stand up comic than a CEO.
Like an ad for weight watchers, before and waaaay before...
Love to meet his tailor.
He is rolling in the dough.
Roast over open flame until done. Feed to dogs.
Linda Green Robo-signing on ZH from 1/7/13.
Hey Tylers, how about a higher resolution image so we can make T-shirts?
http://www.zerohedge.com/news/2013-01-07/banks-put-linda-green-behind-th...
It's just like Groundhog Day 2008. Fannie. Freddie. Bring back Barney Frank !!!
When it was brought to our attention, we told the person to go fuck himself.
I'm trying to refi a mortgage right now. Holy shit what a pain. They wanted to use my trusts as collateral. The fucking home is collateral. Eat my balls.
Careful, there! I'm sure that last part is somewhere in the fine print.
I'm only wondering who will receive the fine payola....JPM? GS?
Honey, have you seen the nail gun?
BOFFF!!! BOFFF!!! BOFFF-BOFFF-BOFFF-BOFFF...!!!
my mortgage servicer is american financial resources. the first thing they did was make it difficult to pay my hazard insurance by making the mailing address for the escrow account impossible to find. ironically, buffet is involved in the super expensive mortgage company provided insurance gambit and my homeowners policy is through geico. the other thing they do is post the mortgage payment made by autopay on the last day the payment is due before late charges apply so if there is a glitch in the payment there is no time to rectify it withput paying the late fee.
neither ploy is illegal but both are unethical and i bet they are worth millions in additional revenue. scumbags. these are people i would not normally associate with if they were human but they are corporate people so i have to tolerate their association.
Stop auto-paying and write a check. Problem solved duh.
the problem with the mail is the received date is whatever they decide it is. duh.
I surrendered my house in my bankruptcy petition which was approved by the court in October 2013 and Ocwen called my attorney a week later to see if I still wanted to surrender the home which I told them, yes. Ocwen hounded me for a year to pay the hazard insurance and nothing would stop the continuous letters for payment. They reported me to the credit bureau for failure to pay their outlandish charge.
It's not a bug, it's a feature.
Einhorn is Finkle...
Ocwen is New Century
What is so "Great" about the great recession, war, or other thing that is an unmitigated disaster, apocalyse, or evernt horizon?
Words, like size, matters.
It ain't Great, if it isn't a positive.
The note on my home, which I financed through my bank, USAA, was last year handed over to Ocwen. This article makes me feel so special. Maybe I can stop paying on my note and see if they'll catch me freeloading sometime in the next 10 years.
Just post date the checks like November 1, 2020. OCWEN will understand that mistakes happen
sarc/
Ocwen's should use the IRS's excuse. Laptop hard drives crashed and there was no back up.
Ocwen will be a stock to be in while the CB's of the world will purchase ABS's at mark-to-unicorn values.
Back-dating accidental? I mean if you type Octobeer 21, 2013 instead of October 21, 2014 then maybe...
ocwen= scumbags !!
Ocwen purchased the mortgage portfolio of Ally Financial when they went bankrupt. Never had such an incompetent and awful mortgage servicer in my life. 'Subprime' is an accurate description for how they treat their customers.
You know what you look like to me, with your good bag and your cheap shoes? You look like a rube. A well-scrubbed, hustling rube with a little taste. Good nutrition has given you some length of bone, but you're not more than one generation from poor white trash, are you, Agent Starling? And that accent you've tried so desperately to shed? Pure West Virginia. What's your father, dear? Is he a coal miner? Does he stink of the lamp? You know how quickly the boys found you … all those tedious sticky fumblings in the back seats of cars … while you could only dream of getting out … getting anywhere … getting all the way to the FBI.
When will there be news about crimnal charges being brought against these crooks?
I say NEVER....stories like this one are nonsense...just to make believe someone is out their protecting us...
Ocwen, drunk executive Newco backwards, you couldnt
make it up, could you ?
Time to start parking wood chippers under Wall St windows
Ocwen's a bunch of bastards. At least one of the "assets" on their portfolio doesn't actually exist.
Around 2005, a guy in Minneapolis let his house go to foreclosure. He walked away from a first mortgage and at least one, maybe two, second mortgages. In September of 2009, he was murdered in a botched pawn shop robbery here. The guy was described as a customer who happened to walk in during the robbery. Hey, we know he had money troubles.
In November of 2009, I bought the house. Since 2005/2006, it had changed hands at least 3 times. I bought it from a flipper, and paid extra to get the Gold-Plated title search/insurance.
In about 2011, I started getting letters from Ocwen, addressed to the deceased former owner (3 owners back). I ignored them. Then I got a couple ominous-sounding phone messages. One day I was by the phone when it rang, so I answered. The guy started into his spiel, so I asked him for whom he was looking. He wouldn't tell me. Then I asked him how he had gotten my number. He said it was attached to the file. I told him that couldn't possibly be true, because I had had the number by then for about 15 years, moving it with me twice, and I'd never done business with Ocwen. He hung up, but the letters continue to this day, addressed to the dead guy. I've been mailing them back without postage. I've even printed out the news story, with date, about the guy's murder and sent that to them a couple of times. Hasn't changed a thing; every couple months another "Past Due" notice arrives.
I opened one of them, and it looks like Ocwen is trying to collect on the second mortgage(s).
So on Ocwen's books, they are still listing a debt of around $150,000 in this dead guy's name, as an asset to be collected some fine day. My completely untrained estimate of the value of that "asset" is exactly $0.00, carry it out to however many decimal places you prefer. Their portfolio may be $106,000,000,000, minus about $150,000 in the case of my house. How many other dead guys are they pretending to investors they can collect from? How exactly is that valued?
My ass.
this is sofa king suspicious. i can't believe the suspiciousness of this
Ocwen is the dumping ground for all the bad loans still on the books at Chase/JPM, BAC, Wells-Fargo and Citi.
Complete bunch of dirtbags is too nice a term for them.
Not dealing with Ocwen makes me happy to be dealing with lawyers representing BAC. At least they're almost legit.
I am keeping my fingers crossed until December 1 or thereabouts when I will have no mortgage, HELOC or CC debt. Working it all out now.
The best solution to dealing with the Ocwens, JPMs and BACs of the world is to NEVER, EVER DEAL WITH THEM EVER AGAIN.
Nail guns to all of them for Christmas, with instructions: Load, press against nearest shiny forehead (your own, dumbass), pull trigger and hold.
Ditto for Fortress Investment Group owners of Nationstar Mortgage, LLC who are trying to be the biggest assholes in America.
Now what people fail to understand is that these "servicers" are FUCKING CRIMINALS and that is why they do what they do. Stop trying to make sense of their actions....THEY ARE IN THE HOME STEALING BUSINESS...Peroid! NOW, does it make sense?
I am fucking up Nationstar the best I can. How? I know their foreclosure documents will be forged and fraudulent.
Some of the bullshit I see with Ocwen or Nationstar filings for foreclosure? Bogus Assignments, as in assigning to a closed trust, bogus note in complaint does not match the note submitted AFTER the foreclosure (forgery), missing assignments, bullshit unattached allonges, forged notes in that they are ink jetted including the so-called buyer signature. I look at the signature under a radio shack lighted microscope and the ink jet "splatter" is obvious.
So...almost all (I know this is hard to believe but it is true) foreclosures I look at these days, at the court house, are fraudulent in many ways.
Yes, have alerted the AG office but he is too busy running for Gov. I am waiting to hear back from them on the evidence I presented.
Ocwen, Nationstar? Did you know the SEC, DOJ, AGs are all looking at you now as INSIDERS ARE SQUEALING SO THEY CAN GET MILLIONS IN WHISTLEBLOWER FUNDS! I love it.
No wonder FIG and NSM are tanking...
I had a mortgage with New Century. They sold it to Ocwen and didn't notify me. I got a call from Ocwen one day saying I was three months past due. I said that they were not my mortgage company. They told me they were, that New Scamtury sold it to them. I told them that I had New Century and my payments have been clearing from my bank so New Cent was cashing them. Ocwen told me that I had two options (1) Get into a payment plan. So that was three payment I was in the rear was to be broken down over six months which brought my payment up to $1300, which I couldn't afford. Or,(2) foreclosure. So I took the payment plan which I could not afford and ended up defaulting. Now, I had to also fight New Cent for the money that I paid them for a mortgage they didn't service anymore to pay Ocwen which took months to get back and ended up being too late to save my house. So I tried to short sale the house. I fought Ocwen to short sell. I had a cash buyer. So once I found that Ocwen was stealing my home from me, I gave up and left a month before the auction. I used the money from New Cent to move with. Then I was at my house on the DAY before the auction loading up my trailer with the last bit of shit from my former house to take it to my nice little apt. A person calls me from Ocwen. Says they are ready to do the deal on the short sale. I fucking blew up on the bitch on the phone. I told her the investor with the cash bailed out and the auction is tomorrow. I asked her if she saw whether or not she could see that the auction was tomorrow? She said that the short sale dept and the foreclosure department are separate and do not communicate with each other. This will drop off my credit in February. If I was less naive then, I would have sued the fuck out of both companies. But I was in the very beginning of the meltdown, So I was just ahead of all the lawyers offering free service to sue the fuck out of the banks. I will rent for a long time since I don't trust banks for shit.