I have been surprised that there is very little in the media about this. Indy Mac is selling its servicing to Ocwen. IndyMac is the mortgage management division for OneWest, a bank headquartered in Pasadena, Calif. OneWest is the successor to IndyMac Bancorp, which was seized by the Federal Deposit Insurance Corp. in 2008. In my opinion, this will be a benefit to many home owners who are seeking Indy Mac loan modification or Indy Mac short sale.
OneWest Bank Group acquired of the banking operations of IndyMac in 2009. Last week, Ocwen Financial Corp. said it would buy mortgage servicing rights from OneWest Bank for $2.53 billion. The deal includes $78 million in loans.
Unfortunately sources indicated that employees in Austin, Texas (one of my favorite places in the world) twould lose some employees. Their offices in the 9th Street office would remain open but will shrink from around 300 employees down to 30 and that they believe the mortgage services will be outsourced overseas. GREAT, more servicing being transferred offshore. We all KNOW how fun that is!!!.
Other news sources are reporting that the company will also lay off 725 workers in Austin.
Overall, I would have to say that this is good news for many home owners that have Indy Mac loans and who are seeking loan modification of short sale of their home. Indy Mac and its successor, One West has been a bear to deal with and Ocwen is quite reasonable.
It appears that many experts in the financial markets have been surprised by this acquisition. However, it was the stated goal of One West investors and management that they did not intend long term ownership of former Indy Mac loans and assets. I wrote two years ago that George Soros made a sweet deal with the Obama administration when they agreed to acquire the toxic assets of Indy Mac. Indy mac was incentivized financially to foreclosure and we tax payers absorbed the losses (as opposed to Indy Mac/One West). Accordingly, the acquisition by Ocwen helps not only home owners but taxpayers as well!!! Yeah!!!
Paddy Deighan J.D. Ph.D
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