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Omega Advisors ups position in Altisource Portfolio Solutions

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Feb. 3 2015, Updated 12:05 p.m. ET

Omega Advisors’ 13G filings since October

Omega Advisors added to its position in Atlas Energy LP (ATLS) and Altisource Portfolio Solutions (ASPS). It disclosed stakes in Aspen Group (ASPU), Resource America, Inc. (REXI), and Arbor Realty Trust, Inc. (ABR). It trimmed positions in Chimera Investment Corporation (CIM), SandRidge Energy, Inc. (SD), and Harbinger Group (HRG).

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Omega Advisors and Altisource Portfolio Solutions

Omega Advisors further added to its position in Altisource Portfolio Solutions (ASPS) this month. The fund said it holds 2,257,451 shares via an amended 13G filing. The shares account for an 11.14% stake in Altisource Portfolio Solutions (ASPS). This is up from the  1,281,137 shares per the fund’s 13F for the third quarter that ended in September 2014.

Overview of Altisource Portfolio Solutions

Altisource Portfolio Solutions (ASPS) and its subsidiaries provide marketplace and transaction solutions for the real estate, mortgage, and consumer debt industries, offering both distribution and content. Since its separation from Ocwen Financial (OCN) in 2009, Altisource offers a suite of mortgage, real estate, and consumer debt services. It has the following three segments:

  • Mortgage Services. This segment is typically outsourced by loan servicers, originators, and investors in single family homes. Altisource provides these services mainly for loan portfolios that Ocwen and its subsidiaries service. Altisource also has longstanding relationships with commercial banks, insurance companies, and mortgage bankers.
  • Technology Services. This segment, in the form of IT infrastructure, is provided to Ocwen and its subsidiaries Home Loan Servicing Solutions (or HLSS), Altisource Residential Corporation (RESI), Altisource Asset Management Corporation (AAMC), and its other segments. Altisource’s REALSuite software platform provides software applications and technologies that manage the end-to-end life cycle for residential and commercial mortgage loan servicing of a distributed network of vendors. This also includes Equator, LLC’s software applications and Mortgage Builder Software.
  • Corporate Items and Eliminations. This segment includes costs related to corporate support functions. It also includes eliminations of transactions between the reporting segments.

Shares plunge on Ocwen’s regulatory issues

Altisource Portfolio Solutions (ASPS) lost most of its market value last year after the company and its affiliates, including real estate portal Hubzu, were named in an investigation of Ocwen Financial (OCN) by the New York Department of Financial Services (or DFS).

Ocwen was targeted for its practices in handling struggling mortgage borrowers and its dealings with its affiliated companies. William Erbey, Ocwen’s chairman who resigned last month, was also the chairman for Altisource, HLSS, AAMC, and RESI.

The next part of the series will highlight Omega Advisors’ Leon Cooperman’s latest moves in relation to Altisource.

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