Ocwen Financial (OCN) is still under the gun – and investigation – but they’re still punching through the latest round.
The New York Department of Financial Services has put the kibosh on any bulk purchases of MSRs after it killed their deal with Wells Fargo (WFC), so the nonbank has turned its gaze to 1,705 delinquent Federal Housing Administration-insured loans with a principal balance of $253.1M from Ginnie Mae pools.
Ocwen is already the servicer on the portfolio.
Ocwen’s Ginne Mae buyout program got underway back in the first quarter of 2014.
"We expect to execute more such purchases in the next few months, as long as market conditions are favorable," says Ocwen CIO John Britti.
Meanwhile, in the Treasury Department’s 3Q14 Making Home Affordable Performance Report, which was released last week, Ocwen was listed as needing “moderate” improvement, the same assessment as Citi (C), NationStar (NSM), Select Portfolio Servicing, and Wells Fargo.
Notably, though, this assessment was made prior to Ocwen’s disclosure that it was backdating letters to homeowners.
The Treasury Department is now investigating the impact of these errors.
As analysts note, a review of Ocwen by Treasury is negative but the impact will be limited in scope.
Worst case scenario, Treasury reevaluates and puts Ocwen in the “needs substantial improvement” category, meaning the Treasury would withhold financial incentives until the servicer makes certain identified improvements.