Why Ocwen Investors Are Losing Money: 77% loss over 5 years

see Ocwen Article on Yahoo Finance

The reason is simple. Ocwen has no real business case for its existence except to act as the shill for investment banks on Wall Street. And those investment banks have a track record of throwing other companies under the bus when the inquiry over securitization and illegal foreclosure gets too hot.

The securities brokerage firms that started schemes claiming securitization of residential mortgage debt need companies like Ocwen to act as intermediaries and create the illusion of ownership, agency and authority — but Ocwen is only going to be one of those companies as long as it is convenient to have Ocwen in that position.

So the free market has downgraded the perceived value of Ocwen 77% over the last 5 years. How much would you pay for an unprofitable company that has a dubious business plan useful only temporarily to third parties who will get rid of this wife in exchange for a younger model?

Ocwen is holding on for now because it knows where many skeletons are hidden. But as soon as the investment banks decide on a strategy for securing that knowledge, Ocwen will be history.

7 Responses

  1. Yes Poppy — but, PHH is only a sub-servicer hired by New Rez (New Residential Investment Corporation – a REIT). PHH has no authority. But, PHH, oddly remains a subsidiary of Ocwen. These “transfers” occurred while in litigation with CFPB and Florida AG — hmmm.

    Ian — even in NY – if any litigation – you will get nothing. Best for people to get information BEFORE there is any litigation. I am not sure how QWR under RESPA works — only from transfer of servicing date? Or from entire history of loan?. History of loan EXISTS. But RESPA very limited to servicing only. All a result of lobbying to our “kooks” in Congress – both sides. .

    Agree — NY settlement should be nationwide.

  2. Hey Ian, been dealing with them for 10 years. This may be a requirement, but they dance around it. They have no idea how they got my debt, evidenced by multiple correspondence from Ocwen. One document says “attorney in fact” acquired the debt from New century-while they were bankrupt, another says Weichart, another says GMAC, still another says they have it in their REO department…now PHH has it, with New Rez servicing. Moving and checking. Servicers’ are merely the conduit and creator of false paperwork.

  3. Under Ocwen’s settlement agreement w the state of NY, Ocwen must provide current and even former Ocwen borrowers with complete histories of their loans and how Ocwen came to service them.
    Wish this was a requirement here in PA-

  4. Ocwen has transferred most of their debt to PHH and NewRez servicing.

  5. Ocwen will NOT throw others under the bus. But they will be forced to.

    Securities investors. and brokerage houses are OUT of the business. Have been since shortly after the crisis. The entity who never got OUT is the U.S. Government. Collection rights were sold off during the bail out. Chase was first one to dispose of any connection. Bank of NY Mellon is trustee for GSE REMICs – who invested in whatever private label they want to tell you.

    Fixed rate loans were swapped out from GSEs to private label, and GSEs then invested in private label via GSE REMICs. (profit deals). GSEs continue to operate in this manner. None of it is regulated by government security agencies.

    Government overlooked one thing in their race to “bail out.” They overlooked that borrowers would discover the fraud. And the fraud would allow entities, including servicers, to benefit. The evidence is now overwhelming – and CANNOT be fixed with corrected records without massive economic destruction. . .

    Ocwen is dopey not to point a finger. They have prepared to handle, and transferred elsewhere. New Rez. A REIT. Cayman Islands. .

  6. Its the non judicial triustees and non profit legal aid as well. 2 coincidentally went down after I raised questions.

  7. These Criminals are Still 23% overvalued. Tick Tock. Tick Tock.

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