Despite its legal troubles, Ocwen Financial Corp. continues to see support. On Monday, Altisource Portfolio Solutions S. A. issued a press release regarding the recent news that Ocwen Financial Corp. is working on a possible transaction with New York City-based New Residential Investment Corp.
If the deal goes through, New Residential is to convert some of its existing rights to mortgage servicing rights (“MSRs”) to fully-owned MSRs.
This agreement would be a win-win for Altisource since it provides various fee-based services on an exclusive basis to Ocwen and has invested substantial resources into providing these services. Altisource is a services provider for the mortgage and real estate industries.
The Altisource press release states that it views the efforts between New Residential and Ocwen as a positive development that may help reduce uncertainty.
Altisource’s support may seem to go against the grain of what’s played out in the headlines over the past month or so.
Just last month, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Ocwen, alleging years of widespread errors, shortcuts, etc., that caused borrowers money and/or their homes. The lawsuit also alleges that Ocwen illegally foreclosed on struggling borrowers, ignored consumer complaints and sold off servicing rights loans without fully disclosing the mistakes it made in borrowers' records.
In a prepared statement monday, Lauren Saunders, associate director of the National Consumer Law Center (NCLC), said it’s important for regulators to keep financial providers accountable for how they conduct business.
The NCLC sent out a press release highlighting last month’s news that the Texas Department of Savings and Mortgages followed the CFPB’s lawsuit with a cease-and-desist order against the entity’s West Palm Beach, Fla. subsidiary Ocwen Loan Servicing, LLC, joining 24 other states.
Ocwen was ordered to immediately cease acquiring or originating new residential mortgages, or mortgage servicing rights, until the company can prove that consumer funds are being collected appropriately, properly calculated and disbursed accurately and timely.
“People have no choice of the mortgage servicer that handles their loan, and yet the servicer’s misconduct can cause families to lose their homes. That is why vigilance by the CFPB and state regulators is so important to send a message to financial service providers that misconduct will not go unpunished,” she said.
The NCLC hopes today’s press release continues to keep the actions of Ocwen in the forefront.