In the Money

Fitch: Ocwen outlook remains negative despite PHH deal

Continuing regulatory overhang not overcome by pending acquisition
The outlook for Ocwen Financial is still negative despite its recently announced $360 million deal to acquire PHH thanks to Ocwen’s continuing regulatory overhang, Fitch Ratings said Friday in a note to clients. In the note, Fitch's analysts said that Ocwen’s outstanding issues with the CFPB and a number of state regulators outweigh any positives that may be gained in the PHH deal.
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Ocwen loses more than $100 million for 4th straight year

2017 loss of $128.5 million is $70.9 million improvement over 2016
Just as the company predicted one year ago, Ocwen Financial suffered another year deep in the red in 2017, posting its fourth straight yearly loss of more than $100 million. But, at least Ocwen’s net losses are trending in the right direction.
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Ocwen buying PHH for $360 million in cash

Deal comes after years of business hiccups for both companies
In a deal that seemingly comes out of nowhere, Ocwen Financial announced Tuesday afternoon that it is buying PHH Corp. for $360 million in cash. The deal comes after years of turmoil for both companies that led to significant shifts in each companies' business. Click the headline for the full details of the deal.
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Homebuilder M/I Homes buying Detroit builder Pinnacle Homes

M/I Homes expanding into Detroit
M/I Homes, a homebuilder with operations in Ohio, Indiana, Illinois, Minnesota, Florida, Texas, North Carolina, Virginia, and Maryland, is expanding into Michigan by acquiring Pinnacle Homes, a Detroit-based homebuilder. According to information provided by the companies, Pinnacle currently controls more than 1,000 home sites and delivered 214 homes in 2017 in the Detroit area.
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Former RE/MAX CEO David Liniger violated company policies by loaning millions to successor

Investigation also finds that Liniger was not compliant with work conduct policies
An internal investigation found that David Liniger, the founder and former CEO of RE/MAX, violated company policies by loaning millions of dollars to his eventual successor. Liniger and Contos confirmed the existence of a $2.375 million loan that Liniger provided to Adam Contos, who then used the money to purchase a residence at a below market interest rate.
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Crowdfunding lending platform Groundfloor turns to crowdfunding to raise money, for itself

Aims to raise $7 million by inviting public to buy shares in company
Groundfloor, a real estate lending platform that raises its loan funds via crowdfunding from the public, is turning to crowdfunding to raise money for something else – itself. But, the company is not going the Initial Public Offering route via the New York Stock Exchange or Nasdaq. Rather, Groundfloor is launching an online public offering, in which it’s seeking to raise more than $7 million from the public.
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Flagstar Bank to acquire Santander Bank's mortgage warehouse loan portfolio

The acquisition is expected to close in the first quarter of 2018
Flagstar Bank announced Tuesday it has signed a definitive agreement to purchase a mortgage warehouse loan portfolio from Santander Bank. As part of the transaction, Flagstar will bring on Santander's existing relationship managers, adding the employees to its warehouse business, the company explained in a release.
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