Amazing, the non-bank mortgage servicer who push many default or struggling homeowners into foreclosure are themselves in default with a hedge fund.

Ocwen Financial isn’t taking it anymore.

The beleaguered mortgage servicer, which saw its founding Chairman Bill Erbey resign earlier this month amid a bevy of regulatory probes, is pushing back against claims that an affiliate company is in default on its debt because of its legal troubles.

On Friday, hedge fund BlueMountain Capital sent a letter to Ocwen saying that the affiliate, Home Loan Servicing Solutions, had breached agreements on $925 million of debt because of its “illicit and imprudent practices.”

The creditor claimed the Ocwen affiliate was in technical default and demanded an additional 3 percent in annual interest payments.

Read on.

Hedge fund managers are preparing getaways by buying airstrips and farms in remote areas, former hedge fund partner tells Davos during session on inequality.

With growing inequality and the civil unrest from Ferguson and the Occupy protests fresh in people’s mind, the world’s super rich are already preparing for the consequences. At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

Johnson, who heads the Institute of New Economic Thinking and was previously managing director at Soros, said societies can tolerate income inequality if the…

As another World Economic Forum comes to a climax, global leaders remain at odds over the role of financial regulation, and whether the industry has learned from the mistakes of the past.

In a CNBC hosted seminar on the last day of the Davos event, Katherine Garrett-Cox, the CEO of investment and savings business Alliance Trust told an audience that 2015 will be a definitive year for the industry and wanted leaders to “step right up to the plate up” and “stop talking about stuff and actually start doing stuff.”

She added: “There is so much more we can accomplish, but we can’t do that behind the bars of a prison cell.”

Garrett-Cox believes that finance hasn’t seen much of a culture change since the global financial crash of 2008, and said that the “bigger have got bigger” by virtue of some banks failing. Therefore, she argued there is an…

A complaint filed on January 20, 2015 in U.S. District Court for Nevada—Michael Harkey v. U.S. Bank et al. (Case No. 2:14-cv-00177-RFB-GWF)–really breaks down exactly what the scam of MERS is, and it does so with a level of clarity and certainty the likes of which I have rarely seen.  The document even gives the foreclosure fraud a more accurate name: “The MERS-LPS Racketeering Enterprise.”  While reading it, I thought, “This is too good not to share,” so here are a few selections, just from the section labeled “THE PARTIES AND THEIR RELATIONSHIPS TO EACH OTHER AND TO THE SUBJECT MATTER”, which begins on p. 3 and can be downloaded and viewed here (to save you a trip to PACER): Harkey v. US Bank

This section of the complaint begins with a recitation of the history of the different iterations of  and relationships between “MERS”, “MERSCORP”…

Let’s jump in the wayback machine regarding some of the big banks and their robosigning/alteration/forgery/paper terrorism/document-manufacturing for a second before we get into the deposition testimony from a “senior operation specialist” with JPMorgan Chase promised in the headline.

Remember Linda Tirelli’s uncovering of the Wells Fargo document-fixing manual?  LRM covered that here:

CONSPIRACY FACT, NOT THEORY: WELLS FARGO’S MANUAL

From that article:

“In a filing in New York’s Southern District in White Plains for a local homeowner in bankruptcy, attorney Linda Tirelli described a 150-page Wells Fargo Foreclosure Attorney Procedures Manual created November 9, 2011 and updated February 24, 2012. According to court papers, the Manual details ‘a procedure for processing [mortgage] notes without endorsements and obtaining endorsements and allonges.’”

And remember how Linda DeMartini of Countrywide/Bank of America testified in Kemp v. Countrywide that she had never seen a note with an endorsement on the bottom (despite the…

President Barack Obama pledged to veto any legislation that weakens new curbs on Wall Street as banks and the Republican-led Congress increasingly seek to roll back the Dodd-Frank financial-regulation law.

Obama included the message in his State of the Union speech Tuesday after the House approved a measure last week that would loosen some restrictions in the 2010 law. His remarks also come as Wall Street re-emerges as a force in Washington, having successfully attached one of its top legislative goals to a government spending bill that lawmakers approved at the end of last year.

“We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or re-fighting past battles on immigration when we’ve got a system to fix,” Obama said. “If a bill comes to my desk that tries to do any of these things, it…

William Erbey is getting $1.2 million in cash and medical coverage for his wife after he stepped down from Ocwen Financial Corp. (OCN), one of the largest mortgage servicers, as part of a deal with New York regulators.

Erbey, 65, will receive $725,000 as a severance payment, $475,000 in lieu of relocation benefits, and lifetime health insurance for himself and his spouse, Ocwen Financial said today in a regulatory filing. He’ll also get a $725,000 dividend from his preferred stake in Ocwen Mortgage Servicing before the firm repurchases the holding for $100.

Read on.