Friday, March 5, 2021
Home #ForeclosurepediaNation Ocwen Downgrade: Reflective Of The Fraud Ongoing At Altisource

Ocwen Downgrade: Reflective Of The Fraud Ongoing At Altisource

HousingWire did a piece today on Ocwen‘s new Chief Operating Officer (CEO), Ron Faris. As most folks know, Fitch downgraded Ocwen to a level 4 out of 5. Ben Lane, a writer for HousingWire, is a guy I have a love – hate relationship with. Today, I feel he hit the mark. Take a read through why I make that judgment,

To date, including the recent announcement from Fitch, our servicer ratings have fallen below the minimum criteria set forth in 482 PLS agreements,” Faris said. “This represents approximately $34.6 billion in UPB serviced by Ocwen, or 8.7% of our total servicing portfolio.”

That’s one way to look at it. On the other hand, the 482 PLS agreements where Ocwen’s servicer ratings are now below the minimum means that Ocwen does not meet the minimum servicer ratings requirement in nearly 70% of the private-label securities it services (since 695 have that criteria).

What everyone appears to be avoiding are several salient points. First, Ocwen is not simply in the servicing arena. They have a relationship with both Altisource and Hubzu to move their assets in a cradle-to-grave perspective. Well over sixty percent of all of Ocwen’s mortgage field servicing is performed by Altisource based upon a recent Altisource  Securities and Exchange Commission (SEC) 10 K Filing.

During 2012, Ocwen’s residential loan servicing portfolio grew from $102.2 billion in UPB to $203.7 billion in UPB. The 2012 growth is primarily from Ocwen’s acquisition of Homeward Residential in the fourth quarter and the acquisition of mortgage servicing rights and related assets from Saxon Mortgage Services, Inc. and from JP Morgan Chase portfolios in the second quarter of 2012. Additionally, in October 2012, Ocwen and Walter Investment Management Corporation presented the highest bid in the auction of ResCap’s servicing portfolio. We expect Ocwen to close the ResCap transaction in the first quarter of 2013.  Excluding the approximately $120 billion of Ally Bank subservicing and master servicing, the ResCap transaction will increase Ocwen’s servicing portfolio UPB by approximately $203.7 billion. With these servicing platform acquisitions, Ocwen is now positioned as the fifth largest mortgage servicer in the United States. As the structured shift of servicing to non-banks continues, we expect Ocwen to continue to grow.  Ocwen’s highly scalable platform and low cost operating structure positions it to be very competitive as additional mortgage servicing portfolios become available.In connection with Ocwen’s acquisition of Homeward Residential and the anticipated acquisition of the ResCap servicing platform, we intend to acquire the fee based businesses associated with these servicing portfolios from Ocwen at a price that we believe will provide an unlevered pre-tax return of approximately 20%. The fee based business acquisitions are strategically valuable as they will help us maintain our business model with Ocwen, expand our footprint and provide us significant revenue and earnings growth.

Graphic From Morningstar.com
Graphic From Morningstar.com Showing 30% Drop In Value

Altisource’s volatility in stock pricing is not simply attributed to their woes with Ocwen. Leon Cooperman and others whom are both vocal and enormous Altisource stockholders, understand that something is rotten to the core in the Axis of Evil with Ocwen – Altisource – Hubzu. For more than a year now, Foreclosurepedia has documented the ongoing fraud being committed by Altisource Prime Vendors upon the innocent men and women of Labor. In fact, Foreclosurepedia possesses stacks of emails between Foreclosurepedia’s Editor-in-Chief Paul Williams and then Altisource Associate General Counsel Robert Bridges which chronicle Altisource’s refusal to address the combined millions of dollars of fraud perpetrated by Berghorst Enterprises, Buczek Enterprises and Annette Rogers — the Rogers fiasco is nearly One Hundred Thousand Dollars alone owed to one Member of Labor in Central Florida.

It was on a conference call with Luxembourg-headquartered mortgage finance company Altisource Portfolio Solution’s CEO, Bill Shepro [that Leon Cooperman asked the following:]

“…And having a sense of humor, what I’m trying to figure out to be honest with you and this is addressed to Bill for obvious reasons — whether your testicles are bigger than your brains or your brains are bigger than your testicles,” he said.

Altisource, a Member of the National Association of Mortgage Field Services (NAMFS) additionally appears hellbent in continuing in a pattern and practice of allowing both the Prime Vendor fraud to continue, but also to allow its good name to be tarnished. In further emails between Foreclosurepedia’s Editor-in-Chief Paul Williams and Altisource’s then Associate General Counsel Robert Bridges, it was established that Altisource knew that forged documents at worst — or lies at best — bearing the Altisource name had been used to obtain Membership in NAMFS by Jay Goscinski, Michigan Realty Solutions. In fact, Eric Miller whom is the NAMFS Executive Director, was aware of this along with the fact that Goscinski had supplied fraudulent mold documents to Altisource. Even worse, Goscinski whom had a documented track record of refusing to pay Members of Labor after Altisource paid Goscinski, has now embroiled Altisource in a half million dollar fiasco of fraud throughout the Midwest in another fraudulent Ponzi Scheme using Labor without ever paying for it.

The reality is that unless and until Altisource addresses the very fraud it is tacitly allowing to occur by its Prime Vendors; the fraud of paying Prime Vendors without performing Due Diligence upon samesaid, its trainwreck towards financial insolvency is guaranteed. In the case of Heather Berghorst, the now disgraced and former NAMFS Secretary, Altisource not only hired her with a previous bankruptcy; not only fired her as Berghorst Enterprises and then rehired her as Heritage Home Solutions, but then oversaw her demise into her second bankruptcy all the while refusing to pay Members of Labor for their Services Rendered. Ditto for Adam and Amanda Buckzek whom oversaw over a million dollars never paid to Members of Labor much of which was attributed to Altisource work and is documented partially on Property Baggage.

I have reached out multiple times to Pat McTaggart, Altisource’s HMFIC over Labor, in an attempt to bring Members of Labor whom were defrauded by McTaggart’s very own Prime Vendors to the table. Altisource could have brought the very Members of Labor onboard whom were doing the work anyway. To date, McTaggart has engaged in what I consider to be a racist attack against Caucasian Members of Labor in her complete and total refusal to even entertain a direct relationship between Labor and Altisource. McTaggart is the epitome of that which I hate — reverse racism sanctioned at the highest corporate levels.

In closing, this is the first of several installments which I am hopeful Altisource shareholders will both read and reach out to me about. I will gladly provide shareholders with the plethora of email communications between Altisource’s then Associate General Counsel and myself; I will provide documentation of the Three Mile Island’s which Altisource has created throughout the United States in the form of toxic dumps and opening up liability to the nth degree for Altisource; and lay out a roadmap of the free, willing and overt actions taken to sweep under the rug the potential for hundreds of millions of dollars of liens against assets Altisource is appointed over. Or, Pat McTaggart can drop her I hate White People attitude I believe she has and which will haunt her throughout her job career when she moves to the next job and get down to the business of Labor.

Paul Williamshttps://foreclosurepedia.org
Linux addict buried deep in the mountains of East Tennessee.

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