William Erbey
William Erbey | |
|---|---|
| Citizenship | American |
| Alma mater | Harvard Business School[1] |
| Occupation | American businessman |
William Erbey is an American businessman and the founder of Ocwen Financial Corporation.[2][3] Erbey made billions during the subprime mortgage crisis by positioning Ocwen to take advantage of larger banks leaving the market; however, he later lost much of his wealth amid allegations of frequent legal violations and conflicts of interest by the company.[4][5] In 2014, these conflicts of interest led to Erbey's resignation from Ocwen's board as part of a settlement with the New York Department of Financial Services.[6][7][8]
Ocwen Financial Corporation
[edit]Erbey was the founder of Ocwen Financial Corporation, a mortgage services company that made large amounts of money during the subprime mortgage crisis.[2][9] In 2014 he stepped down as board chairman as part of a settlement with the New York Department of Financial Services, and resigned from positions at several related companies, over what the New York regulator called "serious conflicts of interest."[6][7][8] Erbey chaired, and was the largest stakeholder for, four companies which had close business relationships with Ocwen; by directing default-related business to these companies, Erbey was able to profit by putting borrowers in default.[10][6] In order to do so, Ocwen used backdated letters to borrowers to make it appear as if they had not replied in the required timeframe and violated over a thousand of its other legal obligations.[6][10][11] As part of his resignation, Erbey received a lump-sum payment of $1.2 million dollars from Ocwen.[7]
Erbey has blamed what happened to his company on what he calls a "concerted smear campaign" by PIMCO and BlackRock, which he sued in 2017. PIMCO and BlackRock have been accused of a “wilful and wanton scheme . . . to cripple, if not outright destroy” Ocwen.[12]
References
[edit]- ^ "William Erbey overview on Forbes". Forbes.
- ^ a b Freed, Dan. "Bill Erbey Made $2.3B Off Your Underwater Mortgage". TheStreet.com.
- ^ Chen, Liyan. "The New Subprime Bet: How Bill Erbey Built A $2.8 Billion Fortune By Getting Inside Homeowners' Heads". Forbes.
- ^ Freed, Dan. "How Mortgage Pioneer Bill Erbey of Ocwen Lost His Empire". TheStreet. Retrieved 2020-07-08.
- ^ Gara, Antoine. "Bill Erbey Of Embattled Mortgage Giant Ocwen Loses Over $300M In Hours, No Longer Billionaire". Forbes. Retrieved 2020-07-08.
- ^ a b c d McCoy, Kevin. "Ocwen shares plunge as founder steps down". USA TODAY. Retrieved 2020-07-08.
- ^ a b c "How much will Ocwen pay William Erbey to leave?". 20 January 2015. Retrieved 2020-07-08.
- ^ a b Sterngold, Alan Zibel, James. "NY regulator announces $150 million settlement with Ocwen Financial". MarketWatch. Retrieved 2020-07-08.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Millionaire facing US investment fraud suit is Malta's newest citizen". MaltaToday.com.mt. Retrieved 2020-07-08.
- ^ a b Dayen, David (22 December 2014). "Finally, a Financial Executive Is Sacked for His Company's Misdeeds". The New Republic. ISSN 0028-6583. Retrieved 2020-07-08.
- ^ "Ocwen executive chairman to resign in New York settlement: WSJ". CNBC. 22 December 2014. Retrieved 2020-07-08.
- ^ "S Pimco and BlackRock accused of subprime 'profit gouging'". Financial Times. 6 August 2018. Retrieved 2020-07-08.