An attorney for Ocwen Financial Corp., the embattled mortgage-servicing company, today issued a letter rejecting efforts by a group of large investors seeking to remove the firm as servicer of $82 billion of residential mortgage-backed securities, the Wall Street Journal reported today. Richard Jacobsen, an attorney with Orrick Herrington & Sutcliffe LLP, said that the investors had made “baseless allegations,” and that their letter late last week had “an inflammatory tone, with misleading content.” Jacobsen’s letter didn’t address the specific claims in the investors’ letter, which was released late Friday. The investors, who hold 25 percent of the private-label mortgage securities, include asset managers Pacific Investment Management Co., Kore Capital LP, MetLife Inc. and BlackRock Inc. The investors said in their letter that they had conducted a lengthy investigation and alleged that Ocwen had improperly enriched itself, made imprudent loan modifications, and failed to maintain adequate records or account for all the funds it was handling for the investors.
