Ocwen (OCN) was a $60 stock a little over two years ago. Ocwen is a bellwether stock for the mortgage segment. It also tells you what is happening in the private national field service firms. You had better believe that they are also hurting … very badly … many are upside down.
The major national Mortgage Order Mills (MOMs) are firing staff and leasing out vacant office space. Staff know that they are on the short list for pink slips … so they are filling flash drives with data and talking to False Claims Actattorneys. The Government wants to pay staff big bucks to report fraud. The MOMs are cutting fees and increasing discount rates. Tasking continues to dry up. Fraud in up trending. Many of the firms are crooked … and the Government covers it up … read www.foreclosurepedia.org. No one wants to touch the $2-$3 mortgage drive-by inspections or pay the 35% discounts on property preservation tasks. If you love to cut grass for $15 … call me as I have an acre of grass you can cut … pay comes at 60 days.
Expect some summer shocks this summer in the mortgage segment.