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.
-
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
1h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
3h ago -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
3h ago -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
9h ago -
The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
10h ago -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24