Ocwen Financial claims trustees are trying to force more foreclosures

By Kali Hays

New York, March 23 – Ocwen Financial Corp. sent a letter of rebuttal to trustees and master servicers for 119 residential mortgage-backed securities (RMBS) trusts regarding a notice of non-performance sent on Jan. 23 by Gibbs & Burns LLP, according to a Monday news release.

The non-performance notice was sent on behalf of some RMBS investors, including BlackRock Financial Management, Inc., Pacific Investment Management Co. LLC (Pimco), Kore Advisors, LP, Metropolitan Life Insurance Co. and Neuberger Berman Europe Ltd.

In its rebuttal, Ocwen said that the notice “is the latest in a long campaign” by the RMBS investors to force “more home foreclosures and fewer loan modifications.”

“These investors' pro-foreclosure, anti-modification agenda is driven by their desire to increase their own financial returns on their specific tranche-level holdings in RMBS trusts, at the expense of long-term gains to the trusts as whole, through sustainable modifications,” the release said

Ocwen went on to say that the investors’ claims are “substantially the same” as those “that were refuted during a failed attempt to prevent Ocwen from acquiring a competitor's servicing portfolio in 2013.”

An independent research report conducted by Morgan Staley’s RMBS strategy team said that “many aspects” of Ocwen’s loan modification methods are effective and “it doesn’t appear in investors’ best interest as services,” according to the release.

Based in Atlanta, Ga., Ocwen provides mortgage loans and loan modification services throughout the Unites States, India and the Philippines.

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