Mortgage-Bond Holders Say Ocwen’s Failures Trigger Default
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Ocwen Financial Corp. is under siege by mortgage-bond investors who are accusing the home-loan servicer of “imprudent and improper” practices that constitute a default.
Investors owning at least 25 percent of voting rights for 119 mortgage-backed securities deals with $82 billion of original balances sent a so-called notice of non-performance to trustees for the bonds, saying that the company has failed to meet its requirements as a loan servicer while shifting the costs of regulatory-probe settlements to them, according to a statement released by Kathy Patrick of Gibbs & Bruns LLP, which represents the bondholders.