Erbey complex update part 2: Lawsuit against Ocwen, BlueMountain goes after HLSS

1. BlueMountain owns HLSS debt.  It argues that the debt should get a 3% interest rate increase because there has been Events of Default under the terms of the debt.  Here is their press release.  Currently it has sent a letter to the trustee.  Presumably a lawsuit may follow unless the trustee address their claims.
2. RMBS investors are unhappy with Ocwen and the RMBS trustees because they don’t think Ocwen is doing a good job as the servicer.  (Press release.)

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The Altisource thesis revisited

Originally, my thesis for Altisource was that regulation wouldn’t be so bad because they would create long-term barriers to entry.  I was wrong.  I did not forsee:

1. The NY DFS blocking Ocwen from buying MSRs.
2. Bill Erbey being forced out of all of his companies.
3. The California DBO threatening to suspend Ocwen’s mortgage license.

What Ocwen and Altisource do

Erbey’s empire of publicly traded companies (OCN, ASPS, HLSS, AAMC, RESI) is a little confusing.  Here’s my understanding of what his companies do.