Ocwen and related slump as Lawsky pens a letter


It's more declines for the "Ocwen complex" as New York DFS boss Ben Lawsky sends a letter to Ocwen Financial (OCN -2.8%) about a "troubling transaction" with Altisource Portfolio Solutions (ASPS -9.6%) involving force-place insurance.

"This complex arrangement appears designed to funnel as much as $65M in fees annually from already-distressed homeowners to Altisource for minimal work."

Altisource Asset Management (AAMC -6.9%), Altisource Residential (RESI -5.2%), Home Loan Servicing Solutions (HLSS -0.3%)

Not part of the Ocwen group, but also worth watching: Nationstar Mortgage (NSM -2.3%) and Walter investment (WAC -2.9%).

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Comments (16)
  • Swing and a Miss
    , contributor
    Comments (51) | Send Message
     
    Ouch!

     

    To anyone reading this post--please, please, please read the actual letter (to which Seeking Alpha links) from Mr. Lawsky to Ocwen's General Counsel.

     

    (In this letter to Ocwen's General Counsel from Benjamin Lawsky, Ocwen's role seems to be played by the character "Lucy," while Altisource Portfolio Solutions' role seems to be played by the character, "Ethel.") It's almost painful to read--but I'm on the edge of my seat waiting to find out if Ocwen (NYSE:OCN) and Altisource (NASDAQ:ASPS) can get their acts together before Ricky and Fred get home.

     

    Now, in the spirit of timeliness, let me provide to Mr. Lawsky the likely boilerplate, computer-generated, algorithmic response that will initially be sent in answer to the logical and well-researched questions posed by the Superintendent of New York's Financial Services Division:

     

    Dear Mr. Lawsky,

     

    First, we object to your use of the term, "struggling families" and insist that, in alternate, you refer to them as "deadbeat homeowners."

     

    Second, we object to your questions on the grounds that they are:

     

    a) Unlikely to lead to the Discovery of Admissible Evidence.

     

    b) Beyond the scope of Discovery.

     

    c) Trade secrets.

     

    d) In violation of Attorney-Client privilege.

     

    e) Require us to aid and abet in implicating ourselves in the blatant and massive fraud in which are now and always have been engaged.

     

    f) You're being, like, super unfair.

     

    We do apologize, however, for not having contributed heavily to (whatever) campaign that caused you to be promoted to this position, but please understand that we were unaware at the time that a position of "Superintendent of the Financial Services Division for the State of New York" would be created since the last election cycle. (Could we, perhaps interest you in a Rolex watch for the time-being, and give you our word that we will support any future endeavors or aspirations you may have through our newly formed "Benjamin Lawsky for Ruler of all the Universe Super PAC?")

     

    On a side-note, we would also like to remind you, as Mr. Erbey has done in several of his relatively few public interviews, that he and Mrs. Erbey have no children of their own and that they plan to donate all of their "leftover" money to charity, anyway. Although Mr. Erbey generally prefers to support charitable causes relating to education, perhaps Mr. Erbey could, instead, donate his "leftover swag" to shelters for the homeless.

     

    On a final note, we would like to remind you that we bought much of our recent crap from OneWest who had bought it for pennies on the dollar from the FDIC when it was acting as Receiver for IndyMac Bank. Dude. What were you expecting?

     

    Best regards,

     

    Ocwen & Friends
    4 Aug 2014, 04:09 PM Reply Like
  • 8688051
    , contributor
    Comments (95) | Send Message
     
    Absolutely couldn't agree more. Lawsky has no clue what he is doing to New York in the long term. A foreclosure takes 5 years, the lender has to take out a force placed insurance policy to protect their collateral AND they have to jump through a million hoops to treat a defaulting homeowner fairly not to mention the massive punitive damages that are lurking from 'legal aide' attorneys who think the deadbeat homeowner has somehow been wronged.

     

    The net result of this is that the cost of a mortgage in NY state is going to go through the roof!! Assuming there is ANY bank crazy enough to lend there.

     

    I reiterate that I am massively long Ocwen -- yes the last 5 trading sessions have been a nightmare...but this is a massive SUPER scalable company that banks can slam mortgage or other debt into for cheap servicing. Just wait until the rest of the world catches up to the US and utilizes them for debt servicing.
    4 Aug 2014, 08:09 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    How one-sided, gullible, and uninformed you both are. Ocwen, Nationstar, and Walter Investment Group practice under the guise of servicing "troubled" mortgage loans - this is how they have been getting away with stealing millions of dollars from innocent people. Yes, many of the mortgages they service have fallen delinquent from time-to-time, and the economy has hit hard for everyone, including the BIG BANKS, whom, if you remember got THEIR bailout. Why, then, should homeowners not be granted the same. Instead, banks sold all the MSR to nonbank entities to do their dirty work because [they] are not under the same regulations as banks (clever!).

     

    These nonbank entities (Green Tree Servicing, Everhome, Everbank and others), impliment systematic tactics in order to precipitate defaults. They are taking advantage of the economic meltdown that they helped create, and then feed the media BS about how many "deadbeats" as you call them, are defaulting on their mortgages, so much so, that they need to sell off the overwhelming lot to Debt Collectors. Another reality check, punk...not all the loans that were sold to nonbank entities are "troubled," many (more than you'd like to realize) are in Good Standing, yet these shadowbankers try to get them to default through intentional account miscalculation, forced-place H/O insurance when the H/O already has one in place. Being that you are so uninformed maybe you need to read this http://bit.ly/1qUOZAc, then when you are done with that, Google Foreclosure Mills, Systematic Defaults, Green Tree Servicing - I'm sure you can think of a few yourself.

     

    It is people like you that have brought this country to shame. Because to you it's not about what is important for all, but for what you can gain from it.
    4 Aug 2014, 09:58 PM Reply Like
  • nasdaqwoody
    , contributor
    Comments (191) | Send Message
     
    GTV999 welcome to Seeking Alpha. What a well constructed, lucid comment you have posted. Nicely done.

     

    But why is it that I don't feel that you are here looking for investment ideas?
    4 Aug 2014, 10:39 PM Reply Like
  • 8688051
    , contributor
    Comments (95) | Send Message
     
    That is the most ridiculous comment I have ever seen written about the foreclosure crisis this year. The only thing I have to say to you is that the RE-DEFAULT rate on loan modifications written @ 2% (PLEASE NOTE THAT'S 2%) Is over 50%.

     

    Once a deadbeat always a deadbeat. Also, whenever a forced place policy is written that servicer is REQUIRED to give the homeowner ample time to produce evidence of coverage.

     

    What else do you have to say Punk!
    4 Aug 2014, 11:31 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    Thank you nasdaqwoody. Before I place my hard erned money into a stock, I research the hell out of it. And how dismayed I was to realize how..."mischeivous" the realestate market has become. It is one thing if these were unfortunate circumstances at no ones hand. But you can't ignore all the media surrounding manufactured defaults, forced-placed insurance, account miscalculations, etc.
    If people stopped buying fur coats, no animals would be slaughtered to supply the demand. At the moment, I am not willing to risk it.
    4 Aug 2014, 11:42 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    8688051, You can't be that stupid. Pitty.
    4 Aug 2014, 11:48 PM Reply Like
  • 8688051
    , contributor
    Comments (95) | Send Message
     
    GTV999;

     

    Ok.. So your source based on the link you provided is for a website called mortgage servicing fraud . org (I applaud the feeble effort at picking a non-biased 3rd party source).

     

    My source for all the deadbeats that Ocwen has to clean up after with respect to A 50% REDFAULT RATE on loan modification issued under HAMP is the US TREASURY. Please reference the chart about halfway down entitled "Cummulative Re-Default Rate' --- http://1.usa.gov/1uhdVj1

     

    I will admit that Ocwen profits from cleaning up these deadbeats messes and that is why I am massively long this stock. If it is a Ponzi scheme, as you stated that it was, can you please tell me what your short interest is in Ocwen.
    5 Aug 2014, 12:09 AM Reply Like
  • Swing and a Miss
    , contributor
    Comments (51) | Send Message
     
    Ahhh......the double-edged sword that is my style of sardonic writing!

     

    Pssstttt.....@GTV999. I'm with you. I just have an obnoxious way of showing it. Sorry.

     

    Pssstttt......@8688051. Ummmm.....sorry for the misunderstanding; I actually appreciate greatly what Mr. Lawsky is doing,and I'm very impressed with Mr. Lawsky and his staff. I even had an actual conversation with a member of his staff last week--and was blown away by how human, unguarded, and helpful he was.

     

    Every state's laws have evolved in very different ways since the meltdown in 2008. I live in GA, and it's sorta been a veritable "land grab" down here. Once the mortgage servicers and their vendors have a homeowner in its grip--it's almost impossible to break free.

     

    I take what Mr. Lawsky is saying as, "If you're a mortgage servicing criminal, stay out of New York." On the other hand, I take the message that the state of Georgia is sending to these some folks as, "Come on down here to Georgia, ya'll--fraudulent/illegal foreclosure is totally legal here in Georgia!"

     

    Being caught up in a foreclosure down here in Georgia is like being Alice as she's falling through the looking glass or being Ingrid Bergman in the 1944 classic movie "Gaslight."

     

    http://bit.ly/1v66jE6)

     

    If there are any New Yorkers who don't approve of what Ben Lawsky is doing for the state of New York--could ya'll please send him down here to Georgia and let him help us to fix our state?

     

    Please?
    5 Aug 2014, 08:26 AM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    "...Ocwen profits from cleaning up these deadbeats messes" - Motive for implimenting tactics to precipitate defaults, don't you think??

     

    I see you have tied Ocwens anchor around your foot. ;)
    5 Aug 2014, 10:53 AM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    For you punks who don't research before buying stock. Does the word ponzi mean anything?
    http://bit.ly/1qUR0MQ
    #Nationstar Faces Challenges as Wall Street Turns Skeptical on #Nonbank #MSRs http://bit.ly/1qUR2UZ #stocks #loans #investments #mortgage
    4 Aug 2014, 10:50 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    One example of a nonbank servicer: Green Tree Servicing, Subsidiary of Walter Investment Group - There are over 1750 complaints. Some are from homeowners who did fall on hard times, but many others (you can tell by reading their stories) are being led into default.

     

    8688051, makes sure to read all 1750+, then do your mathematical averages and see just how many of the "deadbeats" you invest in are actually deadbeats.
    http://bit.ly/1uhde9p
    5 Aug 2014, 12:04 AM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    @8688051 Get your head out of Ocwens A$$ and do some research. Know that where you put your money is not built on fraud.
    http://bit.ly/1vvPoLt#
    10 Aug 2014, 10:22 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    @8688051 http://lat.ms/1C5mH89

     

    Can you still breath?
    22 Sep 2014, 01:17 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    http://lat.ms/1tbDB3u

     

    http://bit.ly/1tbDzbQ)

     

    http://bit.ly/1tbDzbU
    22 Oct 2014, 09:50 AM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    @8688051 Are you still LONG (suffering) for Ocwen?

     

    Firm (OCWEN) Accused Of Illegal Practices That Push Families Into Foreclosure
    http://n.pr/1t4H8fd
    19 Nov 2014, 09:18 AM Reply Like
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