Fans of Ocwen (OCN +0.4%) and the web of companies/legal structures around it (not to mention competitors like NSM and WAC) won't want to miss this great profile from Dan Freed of the man behind them, Bill Erbey. A penny-pincher and workaholic, Erbey has made a fortune for himself and his investors by helping clean up the mess left by the financial crisis and housing bust.
Ocwen's the loan servicer, but if you lose your home to foreclosure, it may get referred to Altisource Portfolio Solutions (ASPS) to be listed on a Web site called Hubzu.com which sold 25K homes in 2012 and generated $53M in revenue. Other foreclosed homes may instead get converted to rentals and leased out by Altisource Portfolio Solutions (RESI).
Managing RESI's assets is Altisource Asset Management (AAMC) - with just 5 employees and owning a title insurer and a reinsurer. Its stock is up nearly 4000% (not a typo) since it was spun out of ASPS in December.
Then there's Home Loan Servicing Solutions (HLSS) which buys some MSRs from Ocwen. It's existence, says Erbey, allows Ocwen to fund itself more cheaply. It had trouble garnering investors ahead of its IPO because even the most sophisticated of them couldn't quite figure out what was going on.