Ocwen spinoff fires 800 of its employees

by MPA22 Jan 2015
Ocwen Financial Corp's trouble has lead to its spinoff company, Altisource Portfolio Solutions, to let go hundreds of employees due to shrinking revenue at its biggest client. Altisource was spun out of mortgage servicer Ocwen in 2009, and still gets around 65% of its revenues from Ocwen.

According to a conference call with investors, Altisource said the layoffs are a response to significant declines in revenue at Ocwen. The Atlanta-based servicer is currently dealing with a mountain of regulatory issues

Altisource said it has created a plan for reducing its expenses that includes "eliminating non-revenue-generating businesses, reducing vendor fees and eliminating staff to reduce costs," Michelle Esterman, CFO at Altisource, said.

"We have a very specific plan for expense reductions, including the recent elimination of over 800 individual employee positions and hundreds of contractors across our geographical footprint," Esterman said. She added that if the plan had been complete at the beginning of the fourth quarter, expenses "would have been approximately $20 million lower."


  • by JP | 1/22/2015 1:01:00 PM

    Sounds like a good source of 800 some odd former employees who can help build a case against those crooks at OCWEN!

  • by Ken-Saw | 1/22/2015 3:11:16 PM

    Great, now they can give me back my money

  • by Ohwellian | 1/23/2015 11:18:18 AM

    Im sorry but i hope those people that worked there and helped these companies scam millions of not billions of dollars , now they have lost their jobs have mortgages with the servicer being ocwen , and that they go into foreclosure for the 120 bucks they couldn't afford


Should CFPB have more supervision over credit agencies?