- 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%)
at Investor's Business Daily (Mon, 12:22PM)