Beleaguered Ocwen fights back against debt default charges

Your thoughts? It could be worse…it could be Wells Fargo or one of its LSS derivatives that gets to take over.

Justice League

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.

Read on.

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2 thoughts on “Beleaguered Ocwen fights back against debt default charges

  1. It’s pretty bad for Ocwen, a fast growing non-bank servicer, to now be in default with hedge fund. I wouldn’t be surprised if Nationstar is on the list to follow Ocwen’s footsteps. This is what the regulators and government get for falling asleep on the wheel to allow the big banks to dump their crappy and toxic loans to the non-bank servicers in order for the big banks to clear up their portfolios. if the government feel that they have huge headaches over the big banks’ continued violations, then the non-banks’ continued violations are much worse.

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