If CFPB targets Ocwen, other servicers are next: Motley Fool
HousingWire previously reported that the Consumer Financial Protection Bureau is putting the squeeze on loan servicer Ocwen, recommending the company contribute to a consumer relief fund for foreclosed borrowers.
The CFPB also is watching massive mortgage servicing transfers carefully.
Motley Fool followed up on the CFPB-Ocwen issue this week:
Ocwen is the largest of the mortgage servicers, so it's not surprising that they are being squeezed first. It is also not unexpected because these companies are servicing a large portion of existing mortgages.
Ocwen certainly has its plate full, but the other servicers are likely to be next. If Nationstar and Walter also opt out of the consumer relief pool, there may well be a whole lot of legal action going on very soon in the mortgage servicing industry.
With housing looking peppier than ever this year, these stocks are looking at some long-lasting gains.