Bill Erbey's Grand Designs

He sets up his companies at locations like Luxembourg, US Virgin Islands and Bermuda so they can save on taxes. He sets up companies like Altisource whose fortune depends on others' misfortune. Ocwen and Altisource Chairman, William Erbey, represents everything that is bad about our society today.

At a time when his country was struggling to deal with a recession that was brought about by a subprime mortgage crisis, Erbey found ways to contribute as little as possible to the government. Not only did he set up his companies at tax havens, he, in fact designed lines of businesses that seek to profit from his countrymen's misfortunes. Erbey champions a society that's driven by greed.

Twenty-six of the most powerful American corporations – such as Boeing, General Electric, and Verizon – paid no federal income tax from 2008 to 2012, according to a new report, conducted by public advocacy group Citizens for Tax Justice (CTJ), detailing how Fortune 500 companies exploit tax breaks and loopholes.

According to Cahir O'Doherty, " Everything connects: the bonanza being enjoyed by America’s super-rich is directly related to the drop in their tax rates - and as they prosper the public purse empties, so the nation faces devastating budget squeezes and the slashing of vital public services for the middle class and the poor.

Of course money doesn't grow on trees, but nor does it trickle down from rich men's pockets. But paying taxes is an obligation of citizenship, or it once was. If the rich want to escape their obligations to this nation or take their money abroad the better to hide it they should also lose their right to call themselves American citizens."

Bill Erbey's companies, Ocwen Financial Corporation (OCN) and Altisource Portfolio Solutions (ASPS), first induce default and push borrowers towards foreclosure then sell these foreclosed homes through their website HUBZU.com to earn Buyer's Premium, Listing Commissions, Title and Escrow Fees, Property Preservation Fees, Web Technology Fees, Closing Coordination Fees and more! In what is a direct conflict of interest between Ocwen's investors and Altisource, Altisource execute real estate purchase contracts on behalf of Ocwen paying themselves Title insurance and related search fees (to Premium Title, an Altisource company), Property Preservation Fees, Closing Coordination Fees etc.

Altisource Residential (RESI) intend to acquire single family residential homes, renovate them and rent them out. Only they don't buy any properties. They buy non-performing loans. Altisource Asset Management Company (AAMC) acquires and manages nonperforming loans on behalf of Altisource Residential (RESI). A majority of these will end up being foreclosed so they can be rented out or sold through HUBZU.com for a profit! Add to that the fees they will earn... more money! They clearly have vested interests in foreclosing homes!

Real estate agents are losing their inventory to Altisource who also function as a listing agency through their unit Real Home Servicing and Solutions. Title insurance revenues are being driven to NewSource, a company which has no employees! AAMC own 100% of shares with voting rights of NewSource and RESI own 100% of non-voting right shares. NewSource pay Altisource (ASPS) a performance fee of 90% of the net income after paying out a preferred dividend of 12% to RESI.

People have been pushed into defaulting by Ocwen who put unauthorized insurance fees and other charges depleting ordinary, unsuspecting people's escrow balance and making their monthly mortgage repayments unaffordable. Ocwen are notorious for not applying payments on time and then asking for late fees.  According to the data made available by the Departments of Treasury and Housing and Urban Development, Ocwen approved 23% of the modifications they processed under HAMP since the program's inception. Compare this with Bank of America's 44%, CitiMortgage's 43% and Wells Fargo's 35%. So they are not exactly pushing loan mods, neither are they pushing short sales. They are just looking to foreclose so Altisource can profit! Borrowers are being subjected to a nightmare.

How will we heal the wounds of the people who have suffered at the hands of Bill Erbey and his companies?

(The author, Saurabh Singh, is a student of the Buddhist monk Thich Nhat Hanh. He is a Foreclosure Prevention Activist and a vegan. He is also a member of People for Ethical Treatment of Animals(India), Consumer Advocates in American Real Estate, UNITES Professionals and supports various charitable causes and crowdfunding.)