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Ocwen Is Ocdaed: Mortgage Servicer Crashes After California Seeks To Suspend Its Mortgage License
A little over a year ago, Ocwen was the darling of hedge funds everywhere, with such luminaries as Steve Eisman pitching it at the Ira Sohn 2013 idea conference. Since then things went downhill and fast for the mortgage servicer, which after being branded "the "Next Generation Subprime Lender" by Moodys earlier in 2014, become the primary target of the NY State regulator. However, while the company's troubles with the state of New York were not life ending, as one major settlement could put everything in the past, the latest development out of the state of California may have just killed Ocwen's (whose disingenuous name comes from spelling Newco backward) business model, after the LA Times reported the state was "seelomg to suspend the mortgage license of Ocwen Financial."
From LA Times:
The action is the latest against one of the nation's biggest mortgage servicers and raises the level of concern over continuing problems in billing and collecting monthly payments from borrowers, especially those having financial problems.
Investigations have cropped up nationwide into Ocwen and other nonbank servicing firms that have acquired mortgage billing portfolios from major banks, which previously faced state and federal probes.
Banks began shedding the business after many were snared in the nationwide fiasco over lost and mishandled foreclosure paperwork, robo-signed foreclosure documents and other abuses.
California's action accuses Ocwen of defying requests for information by the California Department of Business Oversight, which licenses nonbank mortgage lenders and providers of collection and foreclosure services.
Ocwen, which specializes in handling troubled home loans, is the largest mortgage servicer not affiliated with a bank and the nation's fourth-largest servicer overall.
Today California, tomorrow every other state.
So would such a historic license termination mean for the company? Nothing short of lights out in the biggest mortgage state: "Losing a California license would mean that Ocwen, based in Atlanta, would have to sell its rights to handle bill collection and foreclosures in the state, said Tom Dresslar, spokesman for the state agency."
As LA Times reminds us, CA is Ocwen's business source of business. "As of Sept. 30, the company serviced 378,132 home loans in California with unpaid principal of $95 billion. That amounts to 15% of Ocwen's total loans and 23% of the total balance due."
It also means that the stock, which was down 25% as of moments ago, still has some 75% downside to a company which the "smartest money in the room" could not stop fawning over as recently as the fall of 2013 when the stock was trading around $60/share and about which "brilliant" investor Steve Eisman said "once in awhile you come across a company that is completely and utterly mis-priced." Ironically, he was absolutely spot on. He just got the direction wrong.
As for Ocwen? Just call it Ocdaed.
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Oops.
"seelomg to suspend the mortgage license of Ocwen Financial."
See Lots of Oh My God!!! (?)
Took me a while to unscramble that mess: SEEKING, is the word they were going for, I think. L and O are the next two keys over from K and I.
We're gonna need a bigger shitgum.
All a shell game. Look at the progression:
Tihs si gnittih eht naf!
Keep your head down! Try not to talk!
tragic. Really.
There you guys go again, reacting to the headlines. That's why I read the stories. ;->
I'm sure their CEO and upper execs will still walk away with hundreds of millions and no one will go to jail.
Sub Prime Lender caught. What a shocker!
~"Sub Prime Lender caught. What a shocker!"~
Screw that, wake me when we get a jumper or another nailgun "accident".
Calling mortgage holders of last resort, Fannie and Freddie...taxpayers, get ready to grab your ankles again.
Let the lawsuits begin! Where is the SEC as Ocwen stock takes a plunge from which there is no return? Looking with no recent luck for famous people to indict for insider trading.
http://fortune.com/2015/01/13/2000-jobs-threatened-as-united-mulls-outso...
Solid eeonomy...
United?
Like anyone would notice the change in service level?
Remember TED? It's all about union busting.
Wake me up when they finally bust up the CWA. I'll heartily cheer the person that kills off that union.
Corporate CEOs will cheer that death, too. They'll be able to be bigger takers than they are already.
Also, morticians will cheer, too. More airplane deaths=more business for funeral homes.
What we need is to deregulate everything and eliminate all worker protections that have been fought for and won since the early 1900s. That way, America and the middle class will be prosperous once again!
Double-think. It's what's for breakfast.
Because only coddled union workers do good work.
Funny, I didn't extrapolate that in Tsar's comment.
Shitty union if so. I used to know some flight attendants and right seaters that were making less than $20k a year for 40+ hours a week. The right seaters also spent considerable coin for training too. There is simply no way to make a living wage as an airline employee now. They do it strictly because they enjoy it and it's better for them than a desk job or working retail. The corporate execs and banksters, like everywhere else, have hollowed out that industry.
It really is a damn shame, the shitty pay for a right seater, and as you mentioned they do it because they love doing it. It's similar to being a paramedic. I was for a few years, you can't even support yourself on that wage, let alone a family, and both involve precious human lives. I took flight lessons some years ago for my private pilots license, now there is a job that pays absolute shit for something that is very serious business.
IIRC the chick copilot of the prop plane that crashed on approach to Buffalo some years back was only making something like 13k a year, or something similarly ridiculously low.
long repos
Hahahahaha.
0 down
Servicers. Debt Collectors. Scumbags.
Ocwen just services the mortgages, correct? If so, my advice to anybody dealing with them is to save every communication and record every phone call, and then learn the FDCPA. You can really fuck scumbags up if you just know that shit. Unfortunately, probably less than 1 in 1000 is willing to make debt collectors toe the line.
Don't worry Wachovia will buy them. They seem to have a keen sense of timing when it comes to buying California mortgage companies...... oh wait.. never mind
That made me LOL doc.
Haha...Wachovia, the poster child of bad lending....oops, I mean Wells Fargo now.
Sad thing is, nobody even remembers what happened in 2008 anymore. Party on bitchez...
I think that everybody not in banking is just numb to the shit now. A lot don't want to believe it, so they won't, but this is not the same country that I grew up in.
Mid 80s Saving and Loan was bad but this is just Wholesale rape of a country by a corrupt industry.
The hucksters learned their lesson from the S&L debacle: not enough political 'donations' then. They have stepped up their game considerably since then and 'rented' a good percentage of DC politicians to cover their scams for them now.
"Don't worry Wachovia will buy them. They seem to have a keen sense of timing when it comes to buying California mortgage companies..."
I was thinking BofA...they've had such great success since acquiring CountryWide.
Beat me to it.
World Savings, I presume? Pick a payment scam...
World Savings > Wachovia > Wells Fargo
I was wondering what happened to Herb & Marion Sandler. Marion popped her clogs in 2012, but Herb's around. Here's his glowing wikipedia entry:
In 1963, the Sandlers created Golden West Financial Corporation, a savings and loan holding company, to acquire Golden West Savings and Loan Association, the predecessor to World Savings Bank. Since that time, Golden West grew into one of the largest thrifts in the U.S. with assets of approximately $125 billion, deposits of $60 billion, and 12,000 employees. Under the Sandlers' management, Golden West generated a 19 percent average annual compound growth in earnings per share over a 39 year period.
I really laughed at this bit:
The Sandlers helped found and are among the largest benefactors of the Center for Responsible Lending, a nonprofit, nonpartisan organization fighting predatory mortgage lending, payday loans, and other products that prey on consumers;[5] the Center for American Progress, a progressive think tank; ProPublica, an investigative reporting newsroom; and the American Asthma Foundation. In addition, the Sandlers or their foundation support organizations involved in medical research, the environment, human rights, and civil liberties.
I bet he hated payday loans, took too much of a cut out of his sharking...
So 2009.
They must have forgotten to send in their payment. Maybe the bill didn't come in the mail.
Thats OK plenty of oil rigs to repo.
So was this company, basically used by the banks to hide their MERS fraud and insulate them against further exposure?
I think that's the insinuation when it is noted that it is "newco" spelled backwards. I don't really know the history of the company though.
NewCo or Newco is a generic name for proposed corporate spin-off, startup, or subsidiary companies before they are assigned a final name, or to proposed merged companies to distinguish the to-be-formed combined entity with an existing company involved in the merger which may have the same (or a similar) name. In a handful of cases the new company may retain the name "Newco".
Well, my timing is impeccable. 5 1/2 years of no-rent-no-taxes bliss ending (maybe) as I've agreed to move out on May 1 and give the house back to Bank that shall remain nameless lest I violate their non-disparagement clause.
Just hoping that said bank will honor its commitment to me for $9K in "cash for keys."
Ocwen? Good riddance. Other banks, anywhere from 4 to 12 months before they start "reorganizing," "downsizing," and all other kinds of zinginess.
Crash the economy and the banks, and the housing market and I'll be a happy camper (and probably living in one).
Why agree to move out ??? Stay and continue fighting the criminals. Foreign AND Domestic.
I love watching two crooks do business with each other.
Damn where the hell do you live? 3-6 months of that shit and you are out the door here in Virginia.
I fought them, Nationstar/First Horizon Home Loans, for three years. Now THEY want to dismiss the case against me as I called them out on the forged note they used in the foreclosure complaint. I am going for treble damages. After three years of Pro Se defense I have hired an attorney to go for the throat.
See what happens when I don't have to work full time? I have time to really fuck with the banksters. We have made some great progress here in NM.
Banksters and their attorneys are not that smart. In fact I think I will just say they are idiot bullies who shrink back from any real fight.
Go for 20,000.00 at least on cash for keys.
Been following your story for a while. Just curious....why have you decided to bail?
MeKcuF
Dedrater = Retarded
sklof = folks
Dedrater Sklof tm it's my new language
NoVa
sklof emos d'newco eW
Twas a shit show from the very start. Subprime servicing, hahahaha.
Woe to you if you had your mortgage servicing rights sold to Ocwen, Green Tree, or NationStar. Escrow account mismanagement, refusal to return escrow balances, claims of missed payments when payments are made; these were the norm for clients I've dealt with who had their paper sold to these entities. Trying to refinance or payoff a loan owned by these bottom feeders is a pain in the ass to put it lightly.
Really. People invested in a company where they couldn't even be bothered to give it a name? What kind of retard would do that?
Fools and their money are soon parted.
Thomas Tusser in Five Hundreth Pointes of Good Husbandrie, 1573:
It is typically used for shelf corporations that can be bought ready to go Newco 1, 2, 3 etc. But the schmuckery comes in based on the fact that they must have changed the name later to Ocwen like that is supposed to be some witty joke. Now anyone can name their company whatever they want, but would you want your mortgage servicer to be one run by a bunch of smartass schmucks? They should have called it AssFuck Inc.
Sort of like Lender Processing Services, LPS, changing their name to "Black Knight". They do have a sense of humor. Why did they change their name? Oh yeah, they got caught forging over one million documents used in foreclosure cases. They were to remidiate the records in each state and in NM they found.....NONE to remidiate. Amazingly good luck for New Mexicans that out of one million forged docs filed none were in NM. The company who over saw the audit? Why Treliant, of course...another bankster company. What a joke.
http://www.justice.gov/search/all/LPS You do know this site tracks, right? Just sayin'.
AND a hearty "fuck you" to Nationstar Mortgage, LLC who is trying hard to follow Ocwen...ALL THE WAY DOWN. FIG? Fuck FIG too.
Good show on MK!
Dude, 70% or so of all litigation at the NM District Court level (above metro/muni level - i.e. NOT small claims) is one form or another of debt collection. Most of those cases are filed by a very small minority of the attorneys in the state. I have a list of all of the civil cases here for 2011, and it's ugly. NM doesn't track which law firms file which cases, and it was a painstaking process for me to compile a good proxy list. It doesn't name law firms explicitly, but it does name attorneys. The debt collection firms and foreclosure firms are nothing but lawsuit mills. No review, just print, file and go after people. Some of the judges have gotten pissed off, but a lot of the times, if they follow the rules, there's not much that they can do. Suing broke people means suing people who cannot afford an attorney, most people are incapable of handling a case pro se, and either default or agree to a stipulated judgment, so while the case gets filed with the court, it never really even comes in front of the judge.
Seelomg?
Ocwen. Corrupt to the core as the system they are trying to enforce is corrupted by the fact that the loans never whet into the trust. Greed on Wall Street is letting me keep my home...for FREE!
Yeah, call me mooch, deadbeat, etc. I do pay my taxes and insurance. My counter suit is going to really hurt them. I will give up the house, for 200k, and sign a non-disclosure. Yes, they have to show they "won" but for 200k I will go! I know two people that I have been helping on this same issue and they both settled for over 200k and gave up their houses. So...the banks can say they won, the real issue is not disclosed (oh, but it is if you look!!) and so it goes.
Ask yourself why the banks settle. Because once you punch these idiot bullies in the mouth their plans go sideways. Quoting Mike T.
Insiders are selling Nationstar and FIG. Wonder why?
Exactly. In open court, their methods, records and even the law firms that they hire can be scrutinized. Unless they have you dead to rights, they don't want that. Not on a foreclosure, but a TBTF wanted nothing to do with me when I filed a response to their complaint and started firing off discovery requests.
Nope, not a mooch or deadbeat. Someone has to cause them some pain (even on a small scale) and I congratulate you for doing your part.
Banksters with unclean hands shouldn't get free houses and yet the judges overwhelmingly side with the dirty-handed banksters. Two-tier 'just-us' system alive, well and metastasizing.
Steve Eisman? Yet another member of the Satanic Tribe is involved. I'm sure no one is surprised knowing how utterly evil and degenerate that tribe is!
Deflation is taking its toll on the housing market once again. The devastation this time around will be far greater than what happened in 2006-07. California is the canary in the coal mine...
http://www.globaldeflationnews.com/inflation-vs-deflation-part-3how-the-...
Lucky for 378,132 CA homeowners who can stop paying mortgages immediately.
It's like it never happened!
Fuck Ocwen
With a rusty tetanus-infested dildo.
...held by Bruce Jenner
Plus Ebola.
what happens when a company runs out of "bribe" money in CA
Angelo to the rescue!
He hasn't been barred from the industry yet.
If Ocwen can't answer the requests for info, then it's because they don't have the documents. What can they sell? Who'd buy, knowing they don't have the right docs?