Ocwen Financial Corp (NYSE:OCN)

where and when is this company going to make money that is profit?

BlueMountains claim of a default is flimsy at best. No quantitative covenants were failed. The 'failure' is one that will be disputed and will ultimately just make $ for lawyers. Sending this advance securitization into default would cross default other advance series. Ocwen will not let this happen. Period. The lawsuits brought up by those big name investors is just a tool to get ocwen to service more aggressively-foreclose faster. First of all, it is extremely difficult to remove a servicer. second, there are not good options for who would service these loans. If ocwen was somehow removed, all those non agency bond holdings services by ocwen drop points overnight. That's because there will be an interruption in payments to their bonds while advances are recouped at the top of the waterfall (to pay the advance facilities). Nobody benefits from servicing interruptions, especially bond holders. These lawsuits essentially go nowhere. As far as the state lawsuits, they will have to pay off each one like CA. Then back to business as usual. Banks will not hold MSRs so guys like Ocwen have to stay in business. Will be worse for consumers if they get run out by states looking to cash in.