NEW YORK (Reuters) - Major mortgage bond investors including BlackRock (N:BLK), MetLife (N:MET) and Pimco (DE:ALVG) on Friday took a first step toward suing Ocwen Financial Corp (N:OCN),
accusing it of having failed to properly collect payments on $82
billion of home loans, according to a person familiar with the matter
and to documents seen by Reuters.
The group sent a formal notice of non-performance to Ocwen and trustees for 119 residential mortgage-backed securities trusts, alleging improper loan modification practices, wrongfully recouped advances, and a failure to account for cash flows.
The notice said that Ocwen also steered work to affiliates such as Altisource Portfolio Solutions (O:ASPS) and Home Loan Servicing Solutions (O:HLSS) for allegedly unnecessary or overpriced mortgage servicing to the detriment of the trusts, investors and borrowers.
The investors said the trusts had losses of more than $1 billion because of Ocwen's failings.
Margaret Popper, a spokeswoman for Ocwen, had no immediate comment.
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The group sent a formal notice of non-performance to Ocwen and trustees for 119 residential mortgage-backed securities trusts, alleging improper loan modification practices, wrongfully recouped advances, and a failure to account for cash flows.
The notice said that Ocwen also steered work to affiliates such as Altisource Portfolio Solutions (O:ASPS) and Home Loan Servicing Solutions (O:HLSS) for allegedly unnecessary or overpriced mortgage servicing to the detriment of the trusts, investors and borrowers.
The investors said the trusts had losses of more than $1 billion because of Ocwen's failings.
Margaret Popper, a spokeswoman for Ocwen, had no immediate comment.
Read more Click here / www.trade4x.net
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