Investing in Ocwen Financial is Like Buying a Share in the Titanic

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At least the Titanic has historical and maybe even archaeological significance.

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Let’s be clear. The product being sold by OCWEN FINANCIAL SERVICES is its common stock — and probably its integrity (if it ever had any). In plain language, the wealth of its owners is entirely dependent upon the greater fool theory — i.e., that someone will come along to pay a higher price for the common stock despite the lack of any fundamental assets or earnings to support a price of even half the current market.

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Now to be fair and fully transparent I will say that that if appearances are sustained, owners of Ocwen common stock will be rewarded. My point it is that appearances are never sustained and that eventually reality always sets in. But I could be wrong. This is an opinion piece — maybe my information and opinions are wrong. I firmly believe I am right.

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This company was created by William Erbey.  “In 2014 he stepped down as board chairman as part of a settlement with the New York Department of Financial Services, and resigned from positions at several related companies, over what the New York regulator called “serious conflicts of interest.”^{[6][7][8] (Wikipedia)} Erbey chaired, and was the largest stakeholder for, four companies which had close business relationships with Ocwen; by directing default-related business to these companies, Erbey was able to profit by putting borrowers in default.^[10][6] In order to do so, Ocwen used backdated letters to borrowers to make it appear as if they had not replied in the required timeframe and violated over a thousand of its other legal obligations.^[6][10][11] As part of his resignation, Erbey received a lump-sum payment of $1.2 million dollars from Ocwen.^{[7]” Wikipedia [e.s.]}

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See also https://www.marketwatch.com/story/ny-regulator-announces-150-million-settlement-with-ocwen-financial-2014-12-22

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Note that the business of Ocwen is generally understood to be “Default-Related.” And that is why I am writing this article. The business of Ocwen is to pose as a creditor or an agent representing a creditor when in fact it is neither. Despite correspondence and notices posted under the name of Ocwen by unknown people who sign nothing, it actually does not receive nor disburse any money. The entire business model is devoted to steering consumers into default with false statements of authority and false reports that are not related to any data input by any Ocwen employee. They also like to lie about “audits” when “loans” are “boarded,” which seems to be something that never actually happens.

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What is Ocwen? Nobody actually says what Ocwen is or what Ocwen does. It often poses as creditor when it is in fact acting as an agent for third parties. In litigation, those third parties, when pushed, cannot supply any corroborative evidence that they own any debt, note or mortgage. So what is it worth being an agent for a nonentity? Not much apparently, and even less if you go by standard metrics.

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But it is not just that it really doesn’t perform any duties related to the receipt and disbursement of “borrower” payments. The reference to the Titanic is applicable because that ship was torn apart by an underwater jag in an iceberg. The iceberg, in this case, is the fact that Ocwen regularly commits numerous civil violations of statutes that might include criminal statutes. In a word, in my opinion, it could be shut down overnight. And that is what the investment banks on Wall Street set it up to do if there was blowback on the fabrication of false documents, payment histories, and other things that create or maintain the illusion that a loan account really exists.

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Just as they did with David Stern and other law firms who were responsible for fabricating false documentation for purposes of foreclosure, Ocwen will be blamed for “exceeding its authority without the knowledge or consent” of the REMIC trustees who act for the investment banks for whom Ocwen owes its very existence (see registrations and offerings underwritten by Wall Street investment banks) — and that is OK with Ocwen management.

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They know that when the time comes that Ocwen implodes, they will suffer the same fate as David Stern —- living offshore with his Yacht and around $70 million. Stripped of his bar license why would he care. He already made more money than he would have ever made doing something else. Somehow his back-office operation — i.e., the center of the fraud — was purchased by interests supported by Wall Street banks.

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Who cares if they lied? Who cares if there is a new multibillion-dollar fine? And who cares about the stockholders of Ocwen who got suckered into making an investment that may have served only to benefit the investment banks and Ocwen management.

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