For 25 years, Ocwen and the companies it has “acquired” through mergers or acquisitions have been falsely allowing third parties to use its name to pose as lenders and servicers.
They have always been parties to Purchase and Assumption Agreements (both titled as such and using other titles) in which the complete ownership and control of any closing and servicing of any transaction with homeowners is vested in those third parties.
In short, the business of Ocwen has limited to collecting royalties for use of its name — the same MO as national banks who pose as trustees of nonexistent trusts implying nonexistent trust accounts with nonexisting unpaid loan accounts.
Ocwen has also allowed the hiring of robowitnesses to testify in court in sworn testimony — asserting that Ocwen (now PHH) is a servicer who receives, deposits, and distributes payments from homeowners to creditors. This has always been false.
Such witnesses, with full knowledge of Ocwen management, testify that reports offered in court are a compilation of data produced from Ocwen’s business of collecting and distributing money. This is also false. The financial technology (FINTECH) companies that perform all such work are not subject to any control or direction from Ocwen, nor are they working indirectly on Ocwen’s behalf.
In short, virtually all activities attributed to Ocwen are false. Legally they could not be the foundation for any admissible evidence in a court of law nor the foundation for any statement or notice (e.g., a notice of default) that FINTECH companies mail under the letterhead of Ocwen.
Ocwen and related companies appear in the chain of paper in hundreds of thousands of transactions that are falsely labeled as “mortgage loans.”
In my opinion, the facts recited above are all true and have never been contested by anyone. They have also served as the foundation for thousands of successful homeowners who won cases against the actors seeking foreclosure. In short, they are indisputably true.
Without Ocwen’s role in foreclosures claiming trillions of dollars due, there would have been no such foreclosures. While counterintuitive, the reason is simple. If the foreclosure actors used the name of any other party, who was actually involved in the money trail, they would have lost each foreclosure attempt, because there is no unpaid loan account on the books and records of any FINTECH company or any creditor named in the false statements, notes and claims filed by lawyers representing foreclosure mills.
Thus, the potential liability for Ocwen, related companies, and even management is in the trillions. I posed this question to several well-placed people, who confirmed what I was saying was true. But they also said that Ocwen could employ the same strategies that saved these fake foreclosures in the 50-state settlement and other settlements and receive only minor fines.
However, if homeowners start contesting foreclosures regularly and they send the time, money, and energy to win them, this calculation could change. It would be out in the open that there is no “there” there.
Foreclosures cannot be successfully prosecuted without the existence of an unpaid loan account — which is the sole source of claiming injury. Financial injury is a condition precedent to filing any lawsuit or other action seeking foreclosure.
The potential liability for Ocwen is enormous. And while it is true that Ocwen is protected by indemnification agreements with the largest financial institutions in the world, it is equally likely that said institutions will throw Ocwen under the bus claiming that Ocwen was the source of the fraud and that, therefore, the indemnification can not be enforced.
This would leave Ocwen, a thinly capitalized company floating on assistance and “fees” from the thousands of securitization schemes supported by the use of Ocwen as a front for those schemes, in an untenable position. It would be bankrupt without a sufficient asset base and no further income from the role-playing.
Of course, that is my opinion and not direction on how to invest.
Filed under: foreclosure |
Why have you blocked my comment, Neil?