Seeking Alpha

Erbey: Banks still looking to sell MSRs

  • "We're comfortable with the relationships we've got," Ocwen Financial (OCN +0.3%) Chairman Bill Erbey tells the WSJ. "We believe that it creates shareholder value by creating greater transparency as to the business roles of each of those entities."
  • Erbey's comments come as Ocwen's servicing practices along with its relationships with its web of spinoffs - ASPS, RESI, AAMC, HLSS - come under scrutiny from NY's top financial regulator, Ben Lawsky. Declining to comment directly about the probe, Erbey calls the businesses difficult to understand and by separating them, investors are able to more clearly see the business models.
  • On the question of whether Lawsky's exam will have banks scaling back the sale of servicing rights to companies like Ocwen, Erbey doesn't think so."Banks want to focus on their core business ... They don't consider highly delinquent loans to a customer base which is not core to them … something that they'd like to participate in."
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