It's a major decline for the Ocwen (OCN -5.6%) web of companies as NY Dept. of Financial Services chief Ben Lawsky comments on the potential conflicts of interest between Ocwen and Altisource Residential (RESI -8.4%), Altisource Portfolio Solutions (ASPS -15.5%), Altisource Asset Management (ASPS -15.5%), and Home Loan Servicing Solutions (HLSS -1.8%).
In a letter to Ocwen's general counsel, Lawsky says his office's review casts serious doubts on Ocwen's arms-length relationship with the companies. "This tangled web of conflicts could create incentives that harm borrowers and push homeowners unduly into foreclosure."
The news will not be helpful to those pining for a spinoff of Solutionstar from Nationstar Mortgage (NSM -2.3%).
Walter Investment (WAC -3.8%)