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Ocwen Financial Corporation (OCN)

  • Fri, Feb. 27, 9:15 AM
  • Fri, Feb. 27, 8:29 AM
    • "The increased cost of maintaining the relationship with HLSS, combined with operational changes required by regulators, will have a material adverse impact on Ocwen's (NYSE:OCN) servicing margins over the long-term," says analyst Kevin Barker after further review of New Residential's purchase of Home Loan Servicing Solutions. He downgrades to Sell from Neutral, with price target cut to $7 from $7.50.
    • Despite New Residential management's protests otherwise, Barker believes the risk of having servicing pulled on private label trusts or transferred by NRZ is high. "If this were to occur, it would have a serious adverse impact on the sustainability of OCN's business model."
    • "Finally, the revelation from Gibbs & Bruns that they believe OCN's servicing practices caused $26B of damages to the RMBS trusts that the company serviced from 2008 to 2013 creates an enormous litigation and operational risk."
    • Shares -6.3% premarket
  • Mon, Feb. 23, 11:43 AM
    • Ocwen Financial (OCN +7.2%) had tumbled early following the announcement of New Residential's (NRZ +7%) agreement to purchase Home Loan Servicing Solutions (HLSS +9.4%), on the idea NRZ would terminate Ocwen as servicer for the mortgages, thus costing the company a major chunk of money.
    • On a conference call to discuss the deal, New Residential management - pressed on the issue by callers - concedes it has the right to terminate Ocwen, but says it doesn't contemplate doing so.
    • Off of trading halt, Ocwen is now firmly in the green on the session.
    • Previously: New Residential up sharply following HLSS purchase; trouble for Ocwen (Feb. 23)
    • Previously: Ocwen Financial surges, halted for volatility (Feb. 23)
  • Mon, Feb. 23, 11:20 AM
    • Down about 10% earlier following its sale of $9.8B in MSRs to Nationstar Mortgage and the sale of Home Loan Servicing to New Residential, Ocwen Financial (OCN -1.1%) has retaken nearly all of that loss in the last couple of minutes, and is currently halted for volatility after hitting its circuit breaker.
    • Previously: Nationstar soars on Ocwen portfolio purchase (Feb. 23)
  • Mon, Feb. 23, 10:05 AM
    • Nationstar Mortgage (NSM +10%) is either making a savvy move or about to purchase a load of trouble from Ocwen Financial (OCN -9.8%). For now, investors vote "very savvy." The two have agreed to a sale by Ocwen of MSRs on about 81K mortgages with a UPB of roughly $9.8B.
    • The deal is expected to close by the end of the quarter, with the loan servicing to transfer in April.
    • "This transaction represents the first step in the execution of our previously-announced strategy to transfer certain types of non-strategic servicing," says Ocwen CEO Ronald Faris, who looks forward to more MSR deals with Nationstar.
    • The deal is announced the same day as New Residential's purchase of Home Loan Servicing Solutions.
    • Source: Press Release
    • Previously: New Residential up sharply following HLSS purchase; trouble for Ocwen (Feb. 23)
  • Mon, Feb. 23, 9:43 AM
    • Investors do the math on New Residential's (NRZ +4.6%) purchase of Home Loan Servicing Solutions (HLSS +8.8%), and decide the acquirer has made a nice deal for itself (the stock initially knee-jerked lower in premarket action).
    • Via twitter, Tom Adams relays the thoughts of value investor Mangrove Partners. The Cliff's Notes: A great deal for New Residential, but potential trouble for Ocwen Financial (OCN -5.3%).
    • NRZ's purchase of HLSS, says Mangrove, increases the chances Ocwen is terminated as servicer, costing it about $650M in earnings via fee income and cleanup costs. Basically, New Residential and its manager Fortress Investments (FIG +1.7%) could end up with Ocwen's servicing rights for free while buying Home Loan Servicing at book value.
    • A dial-in conference call with the NRZ and HLSS management teams is set for 11 ET.
    • Previously: New Residential scoops up Home Loan Servicing (Feb. 23)
    • Nationstar Mortgage (NSM +9.8%), Walter Investment (WAC -4.2%), Altisource Portfolio Solutions (ASPS -0.9%)
  • Mon, Feb. 23, 7:32 AM
    • There's finally a deal for one of the troubled Ocwen Financial family of businesses, with New Residential (NYSE:NRZ) agreeing to buy Home Loan Servicing (NASDAQ:HLSS) for $18.25 per share in cash - a total price of about $1.3B.
    • The deal is expected to close in Q2.
    • New Residential CEO Michael Nierenberg: "The acquisition will significantly add to the value of our book of mortgage servicing assets and expand our relationships with mortgage servicers to include both Nationstar Mortgage and Ocwen Financial."
    • A steal? HLSS has trundled along between $20 and $25 per share for the last two years (while paying a sizable dividend). It fell to as low as about $10 earlier this year amid Ocwen's regulatory issues.
    • Source: Press release
    • HLSS +6%, NRZ -2.4% premarket
    • Others: Ocwen (NYSE:OCN+2.1%
  • Wed, Feb. 18, 9:31 AM
    • Home Loan Servicing (NASDAQ:HLSS) and Deutsche Bank National Trust reach agreement over claims made by BlueMountain Capital Management, a supposed owner of notes issued by the HSART Trust.
    • The two note no other owner of notes has come informed the trustee that it agrees with BlueMountain's claims. For now, Deutsche has no intention of starting judicial proceedings to obtain guidance on the merits of BlueMountain's allegations.
    • "The agreement provides an opportunity for the parties to conclusively dispel BlueMountain Capital Management, LLC's false accusations of a default under the HSART Indenture," says Ocwen Financial (NYSE:OCN), commenting on the news.
    • HLSS +2.5%, OCN +0.9%
    • Previously: Ocwen family tumbles as hedge fund goes short (Jan. 23)
  • Tue, Feb. 17, 3:49 PM
    • The gains over the past few sessions are little more than a blip on the nasty longer-term charts, but they represent sizable moves. Ocwen (OCN +3.3%) is higher by about 50% from its late-January low, as is Walter Investment (WAC +13.3%).
    • Slightly more subdued is Home Loan Servicing (HLSS +2.2%) - up about 33% from late January.
    • Other names of interest: Nationstar Mortgage (NSM), Altisource Portfolio (ASPS +4.7%), Altisource Asset Management (AAMC +4.3%).
    • Previously: Barron's: Walter Investment shares set for potential double (Feb. 13)
  • Thu, Feb. 5, 10:55 AM
    • A letter to stakeholders from Ocwen Financial (OCN +14.2%) chief Ron Faris played down the chances of any material fines or settlements from current regulatory investigations.
    • Previously: Ocwen Financial +3.8% after update (Feb. 5)
    • In addition to the previously reported items, Ocwen expects in Q2 or earlier to begin closing deals selling portions of its GSE MSRs. The company anticipates sales of $5B-$20B of UPB per month through year-end. "We have received strong interest from many eligible buyers." The sales should cut leverage, should result in net gains, and will significantly cut exposure to changes in interest rates and prepayment speeds.
    • Altisource Portfolio (ASPS +10%), Altisource Asset Management (AAMC +8.6%), Home Loan Servicing (HLSS +4.1%).
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  • Thu, Feb. 5, 7:43 AM
    • "Based on our current engagement with state regulators, we are not aware of nor do we anticipate any material fines, penalties or settlements, although we do expect to resolve two open legacy matters for a total of less than $1 million," says CEO Ron Faris.
    • The company expects to take another $50M charge in Q4 related to the NY settlement, in addition to the $100M already reserved. The company will also take another $64M charge for uncollectable receivables and other servicing expenses. The company now anticipates a loss for Q4 and for 2014.
    • Liquidity: "We believe that we are currently in good standing with all of our outstanding debt agreements, including our Senior Secured Term Loan."
    • Repurchases: "We do not currently expect to restart our buy-back of stock."
    • Full letter
    • OCN +3.8% premarket
  • Mon, Feb. 2, 10:32 AM
    • The FHFA's proposed minimum financial requirements for nonbank servicers are likely not as strict as had been feared - they would have to hold a net worth of at least 6% of total assets, and liquid assets of about 0.04% of the loans they service for the GSEs (maybe more depending on the level of delinquent loans).
    • The proposal follows a July report in which the FHFA inspector general raised concerns about the rapid growth of these players. It is now open for public comment, and the FHFA expects new rules to go into effect before year-end.
    • Walter Investment (WAC +18.3%) - likely the most leveraged of the group - is leading the bunch higher. Nationstar Mortgage (NSM +6.7%), Ocwen Financial (OCN +6.2%).
  • Mon, Jan. 26, 12:46 PM
  • Mon, Jan. 26, 10:08 AM
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Company Description
Ocwen Financial Corp is a financial services holding company. The Company through its subsidiaries provides residential and commercial mortgage loan servicing, special servicing and asset management services.
Sector: Financial
Industry: Savings & Loans
Country: United States