Ocwen Financial – which will soon fall into the ‘megaservicer’ category – saw its stock drop 3% Thursday after reporting strong earnings. The reason for the fall: it missed the expectations of certain analysts. But rest assured: Ocwen’s share price might have a long way to run. Not only is it buying MSRs on the cheap (while commercial banks howl about excessive servicing regulations and Basel III) but it is rapidly gaining a reputation as a low coast servicer that doesn’t think twice about shipping U.S. (white collar) jobs overseas – a touchy issue for both mortgage bankers and politicians. However, it’s easier to ship servicing jobs to Bangalore than production employees. I doubt Ocwen will attempt to ship origination jobs to India as it focuses on growing its production arm. After all, loan officers must be licensed with the states, something that the company cannot avoid by using ‘virtual’ LOs in India.
Is Ocwens Stock a Screaming Buy? Hail India?
NOV 1, 2012 12:37pm ET
You must be registered to post a comment. Click here to register.
Already registered? Log in here
- Simplifile Integrates Collaboration, Post Closing Services with LendingQB
- Freedom Mortgage Wholesale Division Now Using Simplifile Collaboration Service
- Ellie Mae® Selects DataVerify® Risk Mitigation System for Its Total Quality Loan Program
- Four New Counties Adopt Simplifile as Wyoming Authorizes E-recording Statewide
- FIRST AMERICAN MORTGAGE SOLUTIONS INTEGRATES FRAUDGUARD WITH LOANLOGICS LOANHD PLATFORM