Fitch said the downgrade was tied to Green Tree’s “aggressive portfolio growth,” noting that the nonbank grew its MSR portfolio by almost three-fold over the past two years.

Sources note that earlier in the year, the privately held Carrington was the winning bidder on a roughly $20 billion package of Ginnie MSRs sold by BofA.

But when the letter first came to light one little fact was not readily known: that Devaney was also an Ocwen shareholder.

But now comes the hard part for Ocwen: Unloading Fannie Mae and Freddie Mac receivables that have delinquencies.

"There was a deal, but it went by the boards," said one source close to the servicer.

Home Loan Servicing Solutions, which is slated for sale to New Residential Investment Corp., said it has received notice from the NASDAQ that it is no longer in compliance with the exchange's listing requirements, which means it could eventually be removed from the trading board.

In a letter sent Sunday to trustees of the MBS, Ocwen tried to rebut claims made in January by BlackRock, PIMCO, Metropolitan Life and others...

Urban Institute's Karan Kaul noted that some banks have opted to keep mortgages that are eligible for sale to the GSEs.

Ocwen actually received the highest marks possible across its performance review for 4Q, but Treasury said the servicer’s “moderate” improvement rating was due to a lack of progress in implementing previously identified improvements.

The mortgage servicing market grew for 226 consecutive quarters from March 1951 (when the Fed started quarterly calculations) to the first quarter of 2008, when it peaked at $11.321 trillion.