Making the rounds today is a note reportedly from a very sizable fund manager accusing the state AGs of working in concert with major Wall Street holders of RMBS to destroy Ocwen Financial (OCN +0.4%) for the purposes of making more money on their mortgage holdings.
Ocwen is often engaged in the lengthy, difficult process of modifying mortgages in the hopes of keeping some in their homes. The big RMBS holders, however, make more money and faster when those mortgages are quickly foreclosed on.
Their goal, according to the note: Destroy Ocwen and get the servicing transferred to those who would do that bidding.
The note is signed "Ferdinand Pecora" - the attorney who spearheaded the cleanup of Wall Street following the 1929 crash.
This battle between the RMBS holders and Ocwen has been going on for several years ...
Previously: Buy-sider: Ocwen's servicing benefits bondholders too (April 23, 2015)
Previously: Ocwen responds to RMBS owners (Jan. 26, 2015)
Previously: Ocwen now a legal target (Feb. 11, 2014)
Now read: Emotional Sentiment »