Ocwen shareholders and in particular, small investors, experienced significant losses yesterday as the Ocwen (OCN) stock hit a new 52 week low of $30.16 before closing at $30.17. The stock registered a decline of 12.95% in a single day! Small investors and traders who had invested in the OCN stock, in part due to recommendations from various analysts, were severely impacted by the fall.
The Altisource Asset Management Company (AAMC) stock shed 12.39%, Altisource Portfolio (ASPS) lost 8.69% while Altisource Residential (RESI) ended the day 5.73% lower.
The results have been in line with our expectations. We had advised that Altisource (ASPS) are beneficiaries of sweetened deals handed out to them by OCN and AAMC and in return provide poor service to OCN, AAMC, RESI and their customers. So no surprises, then, that ASPS profited at OCN, AAMC and RESI's expense.
Ocwen's slide appears to have only just begun. With lower working capital and higher interest costs, OCN could soon find itself facing newer challenges.
William Erbey rued the fact that Ocwen were being made to adhere to regulatory requirements and advised that this had increased the costs. Ronald Faris made a case for greater CFPB involvement by presenting various statistics that according to him indicated that more homeowners were able to keep their homes since CFPB began monitoring OCN's activities.
In the meanwhile, we are demanding action against William Erbey, Ronald Faris and William Shepro, in addition to other Ocwen and Altisource officials for consciously formulating and engaging in business practices that have adversely impacted homeowners, investors, shareholders, employees and the Government.
If you would like to help, please write to regulatory authorities like the CFPB, Department of Financial Services (New York), your state's Attorney General's office and lawmakers requesting immediate action against these individuals.
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