Ocwen’s financial pain is just beginning.
The embattled mortgage servicer expects a “record loss” for the fourth quarter and full year because of penalties and higher servicing costs, the company warned on Thursday.
Ocwen will add $50 million more in legal expenses — on top of the $100 million it set aside in the third quarter — for costs tied to a probe by the New York Department of Financial Services, CEO Ron Farris said in a letter to shareholders.
NEW YORK, Jan. 30, 2015 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Home Loan Servicing Solutions Ltd. (“HLSS” or the “Company”) (Nasdaq:HLSS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased HLSS securities between February 7, 2013 and January 23, 2015, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased HLSS securities during the Class Period, you have until March 30, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained atwww.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Home Loan Servicing Solutions, Ltd., through its subsidiaries, engages in the acquisition of mortgage servicing assets. Its mortgage servicing assets consists of servicing advances, mortgage servicing rights, rights to mortgage servicing rights, and other related assets.
The Complaint alleges that the Company made false and/or misleading statements and/or failed to disclose that: (i) the Company’s business was dependent on Ocwen Financial Corporation (“Ocwen”) and Ocwen conducting its business legally; (ii) the Company’s business faced material risks and uncertainties due to the systemic internal control weaknesses at Ocwen; (iii) Ocwen was under investigation for violating applicable federal and state regulations and laws, including among other things, the New York Department of Financial Services’ and the state of California’s investigation of Ocwen; (iv) the Company was in breach of provisions of its notes held by BlueMountain Capital Management, LLC; and (v) the Company faced material risks if it defaults on its notes. The suit claims that when the truth was revealed, it caused the price of the Company’s stock to drop, damaging investors.
Home Loan Servicing Solutions, Ltd. (HLSS) is joining with its associated company, Ocwen Financial (OCN), in the fight against investors who claimed that the companies breached their mortgage bond covenants, and is accusing the investors of attempting to profit on their stock holdings in HLSS as opposed to actually caring what happens with the mortgage bonds.
Last week, hedge fund BlueMountain Capital Management sent notices of default to Ocwen and Home Loan Servicing Solutions, saying that Ocwen’s regulatory troubles have caused an “irrefutable” default on notes the hedge fund holds in connection with the HLSS Servicer Advance Receivables Trust.
BlueMountatin Capital also stated in a letter addressed to Home Loan Servicing Solutions, Ocwen Loan Servicing, HLSS Servicer Advance Receivables Trust, and Deutsche Bank National Trust Company that Ocwen’s servicing issues caused a default on “certain residential mortgage-backed securities collateralized by loans serviced by Ocwen Loan Servicing” that BlueMountain Capital owns.
Thank you blogger Neidermeyer for sharing this info:
01.23.2015
HOUSTON, January 23, 2015 – Today, the Holders of 25% Voting Rights in 119 Residential Mortgage Backed Securities Trusts (RMBS) with an original balance of more than $82 billion issued a Notice of Non-Performance (Notice) to BNY Mellon, Citibank, Deutsche Bank, HSBC, US Bank, and Wells Fargo, as Trustees, Securities Administrators, and/or Master Servicers, regarding the material failures of Ocwen Financial Corporation (Ocwen) as Servicer and/or Master Servicer, to comply with its covenants and agreements under governing Pooling and Servicing Agreements (PSAs).
Based on a lengthy investigation and analysis by independent, highly qualified experts, the Holders’ Notice alleges Ocwen has failed to perform, in material respects, its contractual obligations as Servicer and/or Master Servicer under the applicable PSAs in the following ways:
As a result of the imprudent and improper servicing practices alleged in the Notice, the Holders further allege that their experts’ analyses demonstrate that Trusts serviced by Ocwen have performed materially worse than Trusts serviced by other servicers. The Holders further allege that these claimed defaults and deficiencies in Ocwen’s performance have materially affected the rights of the Holders and constitute an ongoing Event of Default under the applicable PSAs. The Holders intend to take further action to recover these losses and protect the Trusts’ assets and mortgages.
The Notice was issued on behalf of Holders in the following Ocwen-serviced RMBS:
| ABFC 2004-OPT4 | DBALT 2007-RMP1 | MALT 2006-2 | RASC 2006-EMX3 |
| ABFC 2005-WMC1 | FFML 2004-FF3 | MSAC 2003-SD1 | RASC 2006-EMX4 |
| ABFC 2006-HE1 | FFML 2005-FF1 | MSAC 2004-HE4 | RASC 2006-EMX6 |
| ABSHE 2003-HE5 | FHLT 2006-A | MSAC 2006-HE1 | RASC 2006-KS5 |
| ABSHE 2004-HE3 | GSAA 2006-16 | MSAC 2006-HE2 | RASC 2006-KS6 |
| ACE 2002-HE1 | GSAA 2007-10 | MSAC 2007-HE4 | RASC 2006-KS8 |
| ACE 2004-FM2 | GSAA 2007-8 | MSAC 2007-HE5 | RASC 2007-KS1 |
| ACE 2004-OP1 | GSAMP 2003-NC1 | MSHEL 2007-2 | RASC 2007-KS3 |
| ACE 2005-SD3 | GSAMP 2004-OPT | MSM 2006-8AR | RAST 2005-A10 |
| ACE 2006-SD2 | GSAMP 2005-WMC1 | MSM 2006-9AR | RAST 2005-A13 |
| ACE 2006-SD3 | GSAMP 2006-HE6 | NHEL 2006-6 | RAST 2005-A16 |
| AHMA 2005-1 | GSAMP 2007-H1 | RAAC 2005-SP2 | RAST 2006-A15 |
| AHMA 2006-4 | GSAMP 2007-HS1 | RAAC 2007-SP1 | RAST 2006-A16 |
| AHMA 2007-4 | GSR 2005-AR7 | RAAC 2007-SP3 | RAST 2006-A2 |
| ARMT 2005-10 | GSR 2006-10F | RALI 2004-QS1 | RFMSI 2006-S2 |
| BAFC 2007-3 | GSR 2006-4F | RALI 2005-QA13 | RFMSI 2006-SA1 |
| BALTA 2005-4 | GSR 2007-2F | RALI 2005-QS1 | RFMSI 2007-SA4 |
| BSABS 2006-AC1 | HVMLT 2003-1 | RALI 2005-QS11 | SABR 2006-FR1 |
| CBASS 2001-CB4 | HVMLT 2005-16 | RALI 2006-QA7 | SABR 2006-FR2 |
| CBASS 2004-CB3 | HVMLT 2005-4 | RALI 2007-QA2 | SABR 2006-FR3 |
| CBASS 2004-CB4 | HVMLT 2005-7 | RAMP 2005-RS7 | SABR 2006-FR4 |
| CBASS 2004-CB7 | HVMLT 2006-3 | RAMP 2006-RS2 | SASC 2004-13 |
| CBASS 2005-CB1 | HVMLT 2006-SB1 | RAMP 2006-RS6 | SASC 2006-GEL3 |
| CBASS 2006-CB5 | MABS 2003-OPT2 | RAMP 2006-RZ2 | SASC 2007-TC1 |
| CBASS 2006-CB9 | MABS 2004-OPT1 | RAMP 2007-RS1 | SVHE 2005-3 |
| CBASS 2007-CB3 | MABS 2005-FRE1 | RASC 2001-KS1 | SVHE 2006-NLC1 |
| CMLTI 2007-SHL1 | MABS 2006-AM1 | RASC 2004-KS12 | TBW 2006-1 |
| DBALT 2005-1 | MABS 2006-AM3 | RASC 2005-AHL1 | TBW 2006-3 |
| DBALT 2005-AR2 | MABS 2006-FRE2 | RASC 2005-AHL3 | TMST 2007-3 |
| DBALT 2006-AR1 | MALT 2006-1 | RASC 2005-EMX3 |
###
Source: Gibbs & Bruns LLP
Amazing, the non-bank mortgage servicer who push many default or struggling homeowners into foreclosure are themselves in default with a hedge fund.
Ocwen Financial isn’t taking it anymore.
The beleaguered mortgage servicer, which saw its founding Chairman Bill Erbey resign earlier this month amid a bevy of regulatory probes, is pushing back against claims that an affiliate company is in default on its debt because of its legal troubles.
On Friday, hedge fund BlueMountain Capital sent a letter to Ocwen saying that the affiliate, Home Loan Servicing Solutions, had breached agreements on $925 million of debt because of its “illicit and imprudent practices.”
The creditor claimed the Ocwen affiliate was in technical default and demanded an additional 3 percent in annual interest payments.
Under the terms of the agreement, in addition to thepreviously disclosed $2.5 million fine Ocwen must pay California, Ocwen is also prohibited from acquiring any additional mortgage servicing rights for loans in California until the CDBO is “satisfied that (Ocwen-subsidiary)Ocwen Loan Servicing can satisfactorily respond to the requests for information and documentation made in the course of a regulatory exam.”
Perhaps most importantly though, the settlement only covers Ocwen’s failure to provide the documents to the CDBO, not what the documents contain.
“The consent order addresses and resolves the examination disputes between the CDBO and OLS, and does not involve any accusation or admission of wrongdoing with regard to OLS’s servicing practices,” Ocwen’s SEC filing states.
Now Ocwen blames mortgage bond investors of pushing homeowners into foreclosure?? lol
Ocwen Financial (OCN) is not taking one of its latest legal threats lying down.
The nonbank stands accused by mortgage bond investors of failing to properly collect payments on mortgage loans thereby breaching its bond covenants, but the company issued several statements Monday, in which the company strongly denies the charges and says it plans to “vigorously” defend itself against the claims.
The nonbank also says that the group of investors, whichreportedly includes BlackRock, MetLife, and Pimco, have a far different goal than it appears.
“Your letter obscures the ultimate objective of your investor clients: to stop servicers from modifying loans and force them to foreclose on and evict as many struggling homeowners as quickly as possible,” Ocwen said in the letter of response to claims that Ocwen failed to perform its contractual obligations as a servicer by failing to properly collect payments on $82 billion of home loans.
“While knee-jerk foreclosures may redound to the special economic interests of your clients, they are not in the best interests of the trusts as a whole, not consistent with industry practice, and therefore prohibited under the servicing agreements,” Ocwen added.
So disappointed that the California regulator settled with Ocwen!
JAN LYNN OWEN
Commissioner of Business Oversight
For Immediate Release Contact: Tom Dresslar
January 23, 2015 (916) 327-0309
Ocwen Agrees to $2.5 Million Settlement for
Failing to Provide Loan Information
Ocwen to also pay for auditor to ensure compliance with state laws
SACRAMENTO – The California Department of Business Oversight (DBO) announced a $2.5 million
settlement today with Ocwen Loan Servicing, LLC over the firm’s failure for more than a year to provide
loan information needed by the DBO to assess Ocwen’s compliance with state mortgage lending laws.
“The Department is committed to supporting a fair and secure financial services marketplace for all
California consumers,” said DBO Commissioner Jan Lynn Owen. “This settlement allows us to move
forward and ensure that Ocwen is meeting its obligations under the law.”
Under the consent order agreement, the DBO will select an independent, third-party auditor, paid for by
Ocwen, whose duties will include ensuring Ocwen provides the DBO all the information it has requested
from loan files. Ocwen also will pay $2.5 million in penalties and cover the DBO’s administrative costs
associated with the case.
The settlement also prohibits Ocwen from taking on any new California customers until the DBO determines
the firm can fully respond in a timely manner to future requests for information, and the DBO will drop its
effort to suspend Ocwen’s license to operate in California. Filed Oct. 3, 2014, the formal accusation grew out of Ocwen’s conduct during a routine regulatory examination and will now be withdrawn.
The third-party auditor will review the loan-file information. Based on the review, the auditor will submit a
report to the DBO on Ocwen’s compliance with the California Residential Mortgage Lending Act, the 2012
Homeowner Bill of Rights, and other state and federal laws and regulations.
Additionally, the auditor will submit a report to the Commissioner and Ocwen that assesses the firm’s loan
servicing procedures, processes and staffing levels. Ocwen will have to adopt an action plan to correct any
deficiencies identified by the auditor. The Commissioner must approve the action plan, and the auditor will
oversee its implementation by Ocwen.
The DBO retains the ability to pursue an enforcement action against Ocwen should the examination of the
loan files uncover substantive violations of laws designed to protect mortgage loan consumers.
Ocwen Financial (OCN) is about to have another massive battle to fight in what’s becoming an all-out assault on the beleaguered nonbank.
A press release, which does not name investors is availableon the website of law firm Gibbs & Bruns.
According to a Bloomberg report, some of the country’s biggest mortgage bond investors, including BlackRock,MetLife, and Pimco, will sue Ocwen, saying that the company failed to properly collect payments on $82 billion of home loans.
The group of investors sent a notice of non-performance to Ocwen and the trustees for 119 residential mortgage-backed securities trusts, stating that a lengthy investigation and analysis by “independent, highly qualified experts” determined that “Ocwen has failed to perform, in material respects, its contractual obligations as servicer and/or master servicer.”
The group of investors identifies several specific ways in which Ocwen failed as a servicer and broke its mortgage bond covenants, including:
William Erbey is getting $1.2 million in cash and medical coverage for his wife after he stepped down from Ocwen Financial Corp. (OCN), one of the largest mortgage servicers, as part of a deal with New York regulators.
Erbey, 65, will receive $725,000 as a severance payment, $475,000 in lieu of relocation benefits, and lifetime health insurance for himself and his spouse, Ocwen Financial said today in a regulatory filing. He’ll also get a $725,000 dividend from his preferred stake in Ocwen Mortgage Servicing before the firm repurchases the holding for $100.
justiceleague00
Justice League 