In September, 2019, Ditech Holdings — Ditech, the nonbank formerly known as Walter Investment Management — went through bankruptcy which, in part, forced the sale of Reverse Mortgage Solutions (RMS). And less than 24 hours latter after selling RMS to Mortgage Assets Management, Ditech Financial sold their forward mortgage business to New Residential Investment for $1.2 Billion. Several days ago, Ocwen announced its purchase of RMS in yet another lipstick on the pig deal. Others are asking, as we release the latest on the National Field Network (NFN) bankruptcy, whether or not the sale is even legal due to the asset purchases by NFN from RMS in Michigan.
Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that its wholly-owned subsidiary, PHH Mortgage Corporation (“PHH”), has entered into an agreement with Reverse Mortgage Solutions, Inc. (“RMS”) and its parent, Mortgage Assets Management, LLC (“MAM”), to acquire substantially all of the operations, assets and employees of the RMS reverse mortgage servicing platform. MAM is a subsidiary of investment funds managed by Waterfall Asset Management, LLC (“Waterfall”). The Company will also acquire all of the outstanding equity interests in the RMS Real Estate Owned business, REO Management Solutions, LLC (“REO”).
All told, it is a roughly $12.4 Million deal. Now, granted Foreclosurepedia has predicted most of the consolidations and bankruptcies which have occurred in the post-COVID environment, this one is of great interest. Four years ago, or so, SoftBank — we have plenty of articles about them — acquired Fortress Investment Group (FIG) for roughly $3.3 Billion. FIG manages New Residential as a publicly traded real estate investment trust (REIT). About the same time, New Residential went on a huge buying spree, pre-COVID, which included Shellpoint, Avenue 365, and eStreet. They went on to purchase almost all of CitiGroup’s Mortgage Servicing Rights (MSR) and gobbled up tens of thousands of others from banks like HomeStreet Bank. Additionally, they bought COVIUS and most importantly they snatched up Guardian Asset Management to create a one-stop-shop. Through other deals on the periphery, New Residential picked up pieces of both Chronos and Altisource. In fact, in 2017, Altisource announced a Cooperative Brokerage Agreement relating to approximately $116 Billion UPB of MSRs and Letter of Intent for Other Services.
The story of Altisource is the story of a company embroiled in dozens of scandals involving not paying Labor within the Mortgage Field Services Industry. In fact, in 2018 Altisource Residential decided to rebrand themselves — following along the lines of the Ameritrust – ResiPro rebranding — as Front Yard.
Debt was king and greed was good. This wasn’t the only rebranding that was underway by Altisource, though. Altisource Portfolio Solutions announced that Altisource Origination Services rebranded as Trelix after snapping up CastleLine. It is easier to simply view the below list obtained from here.
As the Foreclosurepedia Nation remembers, we exclusively broke the story on Ocwen kicking Altisource to the curb when New Residential advised Ocwen that they did not want Altisource servicing their assets vis-à-vis the New Residential MSRs which Ocwen held. All told, it was going to be a $58 Million loss for Altisource. It was also the first time that we learned about equating the default rates into dollar amounts for the Industry. Turning the tables, Altisource leveraged Ocwen into a new deal as seen in Altisource’s 8-K filing with the Securities and Exchange Commission (SEC) below.
The million dollar question is whether or not the Altisource work, which shifted to Guardian, be repatriated? Even more important, though, is whether or not people even realize whom they work for, today