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