First my Saxon mortgage went away when the home sold, and now Saxon Mortgage might go away all together. Nobody will miss this unprofessional, unorganized, and poorly run unit of parent company Morgan Stanley. Here is the news report released on October 25th, 2011:
Oct. 25 (Bloomberg) — Morgan Stanley, the sixth-largest U.S. bank by assets, will sell its Saxon unit to Ocwen Financial Corp., exiting the mortgage-servicing business it bought before the housing market collapsed.
Ocwen agreed to pay a base price of $59.3 million plus about $1.4 billion for receivables outstanding, Morgan Stanley said yesterday in a statement. The deal is expected to close in 2012’s first quarter and isn’t likely to have a material impact on earnings, New York-based Morgan Stanley said.
My previous research pertaining to Ocwen shows the company is not much better, and while chosen as a Veterans Administration contractor Ocwen performed in such a manner that the government and the Veterans Administration should be ashamed of Ocwen and their decision to use the company.
In May, Saxon agreed to pay $2.35 million to resolve a lawsuit alleging it improperly foreclosed on 17 U.S. military- service members from 2006 to 2009. The foreclosures violated the Servicemembers Civil Relief Act, which was enacted to shield deployed military personnel from financial stress, according to the U.S. Justice Department.
For those of you that don’t recognize Saxon Mortgage as SCI Services, here is another article about the sale of Saxon to Ocwen:
Mortgage servicer Ocwen Financial Corp (OCN.N) posted strong quarterly profits and said it purchased SCI Services Inc from Saxon Capital Holdings, a unit of Morgan Stanley (MS.N).
Morgan Stanley bought Saxon in August 2006 for $706 million, before the sub-prime mortgage crisis left the business saddled with millions in losses.