Ocwen Financial: Wells Fargo Deal Resolution Will Mean Significant Upside
- Hold on MSR deal has irrationally suppressed the share price despite continued strong organic growth.
- Surge in home prices over the last two years could potentially create another flood of foreclosures.
- Home price increases have created large gains on the held portfolio which could be liquidated for large gains.
- OASIS securitization program lowers cost of capital adding to competitive advantage.
- Use of burgeoning free cash flow likely to propel share buyback program.