HousingWire is reporting that New York’s top bank regulator has concerns about the business practices of Ocwen Financial Services, a nonbank that has recently become a lightning rod for regulator intervention.
According to the report:
New York State’s Department of Financial Services Benjamin Lawsky’s move comes just four days after Ocwen CEO Bill Erbey said that Lawsky’s indefinite hold on the $2.7 billion MSR deal between Ocwen and Wells Fargo has put a freeze on all MSR deals in the market. Erbey made the statement during the conference call for Home Loan Servicing Solutions first-quarter earnings. “Until we resolve – this relates to Ocwen – until we resolve New York State we’re not acquiring any new (MSR) portfolios at all. As a matter of fact the entire market – nothing is being put out for bid right now,” Erbey said. “The whole market has stopped until that gets resolved.”