Ocwen CEO forecloses on massive number of homes through separate company

by MPA06 Nov 2014
Foreclosures rates are dropping across the country and apparently billionaire Bill Erbey didn't get the memo. According to a quarterly presentation, Erbey foreclosed on 1,022 houses last quarter through a company he is chairman of, Altisource Residential.

Erbey, chairman of mortgage servicer Ocwen, one of Altisource’s biggest clients, stands to win big from the foreclosures, according to the New York Post. The news appears to contradict a statement he said last week of Ocwen's goals, "We work very hard to keep borrowers in their homes."

Ocwen is currently being accused of denying struggling borrowers the chance to fix loan problems and avoid foreclosures. A recent investigation by the New York's Department of Financial Services found that Atlanta-based Ocwen Financial inappropriately backdated thousands of time-sensitive letters to mortgage borrowers and did not take action to fix the issue despite repeated notices of concern.

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  • by craig smith | 11/6/2014 3:09:45 PM

    Ocwen deserves all the attention they are receiving for their servicing performance. The staff is polite but unable to resolve the simplest of issues. The staff is unable to deviate from their script, it is as if you are talking to a computer. Ocwen nickels and dimes their delinquent customers ignoring past experience with the same individual and what the individual is telling servicing.

  • by CRBSBM | 11/6/2014 3:27:57 PM

    I totally agree. I have spent hundreds of hours on the phone with people who can't solve the simplest of issues. On top of that, there are many complicated mistakes in my paperwork which require that I try to get them resolved or walk away from 10's of 1000's of dollars in fees that have been tacked on to my mortgage.
    I have had some success in reporting my problems to the Consumer Financial Protection Bureau. Over the past couple of months I have submitted two complaints to them when I was getting nowhere with Ocwen Customer Service. Amazingly, both issues were resolved within a week with Ocwen doing what they should have done in the first place.

  • by Wm Matz | 11/6/2014 4:24:37 PM

    It is more than incompetence. Even when clients want to pay to reinstate, they are given conflicting information. This article may provide the reason: the Ocwen CEO wants to foreclose thru his other company and reap the profits. If the NY or other investigation can show that, the damages will be so large as to drive Ocwen out of business.


Should CFPB have more supervision over credit agencies?