Ocwen Set to Lose Mortgage-Servicing Contracts After Default


 Ocwen Set to Lose Mortgage-Servicing Contracts After Default

(Bloomberg) — Ocwen Financial Corp., the mortgage servicer under attack for its handling of home loans, is being fired from overseeing debt backing two bond deals, according to notices sent to bondholders.

Wells Fargo & Co., the trustee for the transactions, said in letters dated Feb. 24 that a majority of investors had directed it to terminate Ocwen. The bank said that it had issued Atlanta-based Ocwen notices informing the servicer that it was doing so.

Downgrades of Ocwen’s servicing ratings last year triggered technical defaults in the bonds, prompting Wells Fargo to solicit instructions from investors on what to do next. They were also among deals where some bondholders had accused Ocwen of “imprudent and improper servicing practices.”

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4 Responses to “Ocwen Set to Lose Mortgage-Servicing Contracts After Default”
  1. talktotennessee says:

    You need a search engine on your fantastic website. I am always wondering if something has been written on different parties in this Wiley Whiplash-Little Nell business. OCWEN took over servicing from GMAC, same statements, nothing changed except the letterhead and the India based robocalls. BUT and this is big. The handler calling the shots is who we need to target. So is this Wells Fargo who has their fingers twirled around the puppet strings? Where does IMPAC fit into this saga. Anyone heard of them? News, blues and boos????

  2. Oh yes debt collectors selling bad debts to its co-debt collectors. No such investors involved here.

  3. Many more investors will terminate Ocwen with their improper handling of debt.

    • neidermeyer says:

      Shouldn’t investors expect Wells to proactively terminate , or at least poll the investors , about terminating all OCWEN involvement?

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