New York Regulator Poses Formidable Threat To Mortgage Servicers

Benjamin Lawsky, a relatively unknown New York State regulator, has put the fast-growing non-bank mortgage servicing industry’s business model in jeopardy. Look no further than Ocwen Financial for proof of a servicing segment that remains marred in uncertainty.

Ocwen is reeling following a dispute with Lawsky that killed a promising a $39 billion acquisition of Wells Fargo’s servicing rights. News of the cancelled deal in mid-November sent the company’s shares down as much as 67 percent from their 52-week high. The stock has recovered slightly, but is still off more than 50 percent from a December 2013 high of $58.07.

Now, investors are left wondering whether the servicer – likened to a shark – will be allowed to continue feeding on new mortgages.

Read on.

One response to “New York Regulator Poses Formidable Threat To Mortgage Servicers

  1. Reblogged this on Deadly Clear and commented:
    To understand Ocwen you have to comprehend all of Altisource’s software platforms… Along with Wells Fargo’s VendorScape and LPS Desktop – because they are all vertically and horizontally integrated… And ultimately connected to Fidelity National and American Title…yeah, get it yet? Look ’em up in the USPTO.Z

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