http://www.palmbeachpost.com/news/business/mortgage-firm-ocwen-buys-chairmans-house-for-2-mil/nR96m/
In a generous perk for a billionaire businessman, mortgage firm Ocwen
Financial Corp. bought Chairman William Erbey’s Atlanta mansion for $2
million more than he paid at the peak of the housing market.
Ocwen
(NYSE: OCN) said in a regulatory filing last month that it paid $6.48
million for Erbey’s house in Atlanta so Erbey could move to St. Croix,
where Ocwen opened a subsidiary earlier this year. Ocwen collects loan
payments from subprime borrowers, some of whom accuse the company of
hardball tactics that push them into foreclosure.
“It is really
ironic that a company that is a subprime mortgage processor would give a
sweet deal to its executive chairman that its own customers couldn’t
get,” said Vineeta Anand, chief research analyst at the AFL-CIO’s Office
of Investment.
Erbey paid $4.39 million for the
10,452-square-foot house in May 2006, according to property records.
Since then, Atlanta home prices have plunged 31 percent, according to
the Standard & Poor’s/Case-Shiller index.
The Fulton County Board of Assessors values the home at $3.11 million. Zillow.com says it’s worth $3.36 million.
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