Ocwen – Diving deeper into their background causes some concerns

Ocwen, save our home
Ocwen, save our home (Photo credit: JacobRuff)

Not exactly a good alternative in my opinion

In recent days I have been informed by mail that IndyMac Mortgage Services will transfer my loan to Owen Loan Servicing [AKA Ocwen Financial ] as of 9.1.13. Now in a previous post, after doing some quick rummaging around the  web for info on these guys, it appears that Ocwen is gobbling up a whole bunch of “troubled loans” from a wide variety of  “troubled” sources. In my humble opinion it appears that all the banks that were the engines behind the great implosion of the housing market are selling all their bad obligations off to these guys in return for big bags of “blood money” in order to sidestep any further downgrading of their operations. Basically and literally passing the buck!

08.15.13 Ocwen Financial (OCN) has shown such explosive growth that some industry observers have speculated it might have nowhere to go but down. Doubters figured the specialty mortgage servicer wouldn’t get enough new mortgages to service to offset those running off its books. But Ocwen insists it is anything but a “melting ice cube,” as Chairman William Erby told analysts Aug. 1 on the heels of a strong second-quarter report.

Read More At Investor’s Business Daily: HERE

Passing The Buck

Now, instead of a bunch of perpetrators paying the appropriate restitution for the massive mishandling scandals they have now passed all these “troubled loans” off to Ocwen and others. And,despite what the Ocwen Financial website says, it is my opinion that they are not exactly the knights in shining armor that they claim to be. And I am hard pressed to comprehend that a company that has grown from servicing $40 BILLION in 2009 to $500 BILLION at this time 2013 can get better at what they do! All I see is a nightmareish scramble to make it work And the same people that were victims of the initial disasterous financial events are now all in the hands of one big pile of bad loans in the hands of Ocwen and others like them. This hasn’t escaped scrutiny along the way. not exactly a stealthy group.

12.04.12 (Reuters) – New York’s top state bank regulator is yet to approve Ocwen Financial Corp’s recent agreements to buy two mortgage servicing firms as a result of concerns about what it says are unfair loan practices, the Wall Street Journal reported.

Read more HERE

Shoveling it all into a bigger pile

My primary concern at this time is that I am right in the middle of a loan modification trial period. And after a 8 month sojourn into pain trying to get to that point with IndyMac’s frickin wonderful system I am genuinely concerned that it will get mucked up during the transfer. IndyMac’s history with documentation is utterly deplorable both when they were a standalone are of the US and continuing through  their being acquired by One West Bank through financial hardship. Their documented history of misinformation and financial sandbagging, both of which I am a victim of, raises some major concerns for me and my situation.

And if you thought customer service was bad before …. well…

It don’t get no better than this. Really! It doesn’t!

7.22.13 Bank of America Corp (BAC) Just Can’t Seem to Grasp the Mortgage Business
The latest survey gauging customer satisfaction with mortgage servicers was released last week, and it delivered both good and not-so-good news. On the bright side, big banks like Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC) all did quite a bit better this year compared to last, and all came in well above the industry average. On the other hand, Bank of America Corp (NYSE:BAC) showed little change from its poor performance of last year, and dedicated mortgage servicing companies like Nationstar Mortgage Holdings Inc (NYSE:NSM) and Ocwen Financial Corp (NYSE:OCN) remain on the bottom of the customer-satisfaction heap.
Read more HERE

That is my concern at this time and I will keep up on all the details as they come together. Stay tuned

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Published by

bzerob

I am an aging American Navy veteran with some very pointed and acidic opinions. Feel free to heed the warning and read on.

6 thoughts on “Ocwen – Diving deeper into their background causes some concerns”

  1. You misunderstand how OCWEN works. Here you have this “servicer” buying up “loans”
    that are in default for years, and uncollectable. Ask yourself this: why on earth would anyone that was not drunk get involved with loans defaulted years ago? And the answer is: OCWEN is a bottom-feeding outfit, not a “servicer” as they claim, but a Hedge Fund based out of Stamford, Connecticut, run by someone named Cohen, whose business model is to “acquire” long-defaulted loans and attempt to glom the collateral. If you pay 6 cents on the dollar then even if you only get 50 cents for the house, you are still gaining a huge windfall. In short, thewe guys have zero incentive to “modify” your loan, and all incentive to foreclose the collateral.

    Why would anyone “sell” this outfit these defaulted loans? SDimple enough: the “Notes” all carried what was known as “credit-default swaps_,. a form of insurance with one peculiar twist: it was sold without subrogation rights. So the Note gets paid (on the 91st day, which is why they tell you not to make payments for three months), but the Note does not go to the insurer – there is no subrogation onto the Note. At this point, the Note is Paid, but the payment is not being credited to the account of the Note Obligor, who has no clue about any of this (and thus neither does the Judge). Well, an unstamped Note is far too tempting for pond-scum outfits. Next thing you know, the “Note” is Indorsed over to some other entity, and bingo! the homeowner becomes enmeshed in an impossible foreclosure suit. Meanwhile, the Note is Paid, so it should be stamped Paid and handed back to the Homeowner. does not quite seem to work out that way when you are dealing with Wall Street hedge funds disguised as “servicers.”

  2. One important distinction: Ocwen doesn’t just buy up ‘distressed’ loans – it’ll take on decent loans too, if the zip code, value-to-equity and other factors look good. I had a perfect payment record for the FIVE years with HSBC before Scott Anderson (a veep w/ HSBC just before walking across the street to join Ocwen…hmmm…) took mine and hundreds of other loans with him to Ocwen. – Had a reasonable balance after 2 small refi’s for home repairs (just under $73K – note that number, folks) and lo and behold, thanks to their ‘fees’ (inexplicable – their goofball ‘reps’ can’t explain them) and other mystery charges, the whole thing went up to over $100K – after just 6 years with this outfit! Yes, they finally took my house. Yes, I had an audit (value questionable) which purported to show that HSBC had fraudulent dealings w/ Goldman Sachs (remember them?) from the get-go…no, I couldn’t find competent legal counsel (at a price I could afford, anyway). Decided to leave them to their karma – which should be pretty wicked once it arrives…!

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