Seeking Alpha

Ocwen and family stung again by NY regulator

  • 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."
  • Connecting the web
  • 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%)
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Comments (2)
  • dealraker
    , contributor
    Comments (813) | Send Message
     
    Ok, let's fine the bank, that's the shareholders, big time.

     

    And let's let those who have done the conflicts of interest go fine and criminal free. Actually let's give them a big raise in salary, benefits, and bonus.

     

    This is America. We reward the top 1%.......

     

    ......and only the top 1%.
    27 Feb 2014, 05:36 AM Reply Like
  • calripson
    , contributor
    Comment (1) | Send Message
     
    Complete nonsense - Mr. Lawsky is fishing for a political career. 49 state regulators and the feds signed off the agreement, but not Mr. Lawsky. Why not ? Well, New York is about to be hit by a wave of foreclosures (later than other states due to NY laws). Ben wants to be seen as "fighting for the little guy". Unfortunately, mortgage servicing, modifications, and foreclosures are all part of the capitalist system. Ocwen performs these service cheaper and better than anyone else. In fact, they were threatened with a lawsuit for trying to modify too many mortgages instead of foreclosing. But in fact, they follow the rules and their mandate. Maybe that's why the feds and 49 other states disagree with Mr. Lawsky.
    27 Feb 2014, 09:03 PM Reply Like
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