Why Ocwen Investors Are Losing Money: 77% loss over 5 years

Jan 21, 2020

The reason is simple. Ocwen has no real business case for its existence except to act as the shill for investment banks on Wall Street. And those investment banks have a track record of throwing other companies under the bus when the inquiry over securitization and illegal foreclosure gets too hot.

The securities brokerage firms that started schemes claiming securitization of residential mortgage debt need companies like Ocwen to act as intermediaries and create the illusion of ownership, agency and authority — but Ocwen is only going to be one of those companies as long as it is convenient to have Ocwen in that position.

So the free market has downgraded the perceived value of Ocwen 77% over the last 5 years. How much would you pay for an unprofitable company that has a dubious business plan useful only temporarily to third parties who will get rid of this wife in exchange for a younger model?

Ocwen is holding on for now because it knows where many skeletons are hidden. But as soon as the investment banks decide on a strategy for securing that knowledge, Ocwen will be history.

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