Beleaguered Ocwen Financial (OCN) has been on a quest since December 2014 to get rid of its massive agency mortgage servicing rights holdings.
Last month the company said it is selling a $25 billion MSR portfolio to Nationstar Mortgage (NSM), just over a month after agreeing to sell another $9.8 billion portfolio of agency servicing to Nationstar.
That announcement is the latest in a string of agency MSR sales for Ocwen, which said in December that it plans to exit agency servicing entirely.
This year hasn’t been as bad for Ocwen as 2014, but the company has been facing a tough go of it. Back in 2014 the New York Department of Financial Services was all over Ocwen – freezing a number of MSR deals at the start of the year and ending the year forcing the subprime servicer to pay $150 million for actions that likely caused “significant harm” to certain mortgage clients. A bigger coup for the New York regulator: They took a scalp in the form of forcing former Chairman William Erbey to walk away from the company he founded.
It was a long time coming – the Consumer Financal Protection Bureau had Ocwen in its sights since at least 2012 for the sheer bulk of mortgage-related complaints that Ocwen generated.
Ocwen dragged its heels on its annual and fourth quarter filings for so long that word around the New York Stock Exchange is that plenty want the company delisted – a fatethat is befalling Ocwen affiliate Home Loan Servicing Solutions (HLSS) over at the NASDAQ.