Failure to file 2014 financial statement is cited
Ocwen Financial Corp. disclosed late Monday after the market closed that it had been threatened with a possible delisting by the New York Stock Exchange for failing to file its 2014 annual financial statement on time, and that it wasn’t certain when it would file the required statements.
Ocwen said that the principal reason it had missed deadlines to make the disclosures was because it needed more time “to analyze and review” an affiliated company that finances the purchase of mortgage-servicing rights for Ocwen. The company is looking into whether the company, Home Loan Servicing Solutions Ltd., has the “ability to continue to meet its obligations to fund new servicing advances.”
Ocwen didn’t explain if the affiliate, HLSS, was facing financial or liquidity constraints, but it said “a failure by HLSS to fund new servicing advances could have a material negative impact on the Company’s financial condition.”
Ocwen didn’t disclose any further information on its own financial condition or HLSS.
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The Mortgage Foreclosure Litigation Clinic at Yale Law School, along with the Connecticut Fair Housing Center (CFHC), has filed an Amicus Brief with the Supreme Court of the United States in support of Respondents, David Caulkett and Edelmiro Toledo-Cardona, in Bank of America v. Caulkett. The case presents the question of whether wholly underwater second mortgages can be voided in bankruptcy as unsecured liens.
The question of second mortgages is especially pertinent in Connecticut. Hartford, Connecticut, holds the dubious distinction of being the “most underwater” city in the nation, with a negative equity rate of 56%*. Connecticut is also home to three other cities in the top one hundred towns with the highest negative equity in the country, including New Haven. The Supreme Court’s ruling in Caulkett has the potential to affect the many Connecticut residents with underwater second mortgages by providing a helpful alternative to foreclosure for resolving their mortgage troubles, according to the clinic.
The Mortgage Foreclosure Clinic provides legal assistance to individuals who cannot afford private counsel. The Clinic has been representing homeowners fighting foreclosure in Connecticut since 2008. The Clinic has also filed amici briefs with appellate courts in several states and its members have testified before the Connecticut legislature on foreclosure policy.
A crappy non bank selling mortgage servicing rights to another crappy non bank!
ATLANTA, March 24, 2015 (GLOBE NEWSWIRE) — Ocwen Financial Corporation (NYSE:OCN) announced today that its subsidiary, Ocwen Loan Servicing, LLC (“Ocwen”) and Nationstar Mortgage LLC, an indirectly-held, wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. (NYSE:NSM) (collectively “Nationstar”) have agreed in principle to the sale by Ocwen of residential mortgage servicing rights on a portfolio consisting of approximately 142,000 loans owned by Freddie Mac and Fannie Mae with a total principal balance of approximately $25 billion. Subject to a definitive agreement, approvals by Freddie Mac, Fannie Mae and FHFA and other customary conditions, Ocwen and Nationstar expect the transaction to close before mid-year.
“This transaction, on top of the one announced in February between Ocwen and Nationstar, furthers our announced corporate strategy and demonstrates the strong working relationship we have developed with Nationstar,” said Ron Faris, Chief Executive Officer of Ocwen.
“This transaction builds upon our strong track record of portfolio acquisitions while serving the needs of homeowners, and we look forward to expeditiously closing and boarding this portfolio,” said Jay Bray, Chief Executive Officer of Nationstar. “We will continue to work cooperatively with Ocwen as they evaluate the sale of additional agency portfolios and look forward to continuing discussions with all counterparties.”
Wells Fargo (WFC) is cutting about 1,000 jobs at its mortgage servicing office in Milwaukee and shuttering the servicing offices there.
The move comes as the largest mortgage lender and servicer bank saw sharp reductions in delinquencies and troubled mortgages.
The location will be closed by mid-summer, and some of the staff there will be relocated to other functions in the company.
This cut represents a small portion of the bank’s employee base, which is roughly 265,000 in total, according to its last SEC filing in December.
According to Wells Fargo’s latest earnings statement, the banking giant has a residential mortgage servicing portfolio of $1.8 trillion; with a ratio of MSRs to related loans serviced for others of 75 basis points in 2014’s fourth quarter, compared with 82 basis points in prior quarter