In trading Tuesday, Impac’s common was selling for $9.15, which means the 500,000 shares could be worth $4.5 million.

“Sub debt is a good way to grow your business without it being dilutive to your company,” said Bill Dallas, CEO and founder of Skyline Lending.

Declining interest rates don't appear to have affected the servicing auction market much.

Sterne Agee estimates that such settlements could cost the nation’s fourth largest servicer $496 million.

Just because a notice of default is signaled, that doesn’t mean the trustee has to yank the servicing away from Ocwen.

Other investment bankers who work the MSR market said declining interest rates and the “Ocwen” effect are hurting values.

Thomas Gamache, national director of retail sales for Guaranteed Rate, has left the company and accepted a position with Citizens Financial Group...

Is Ocwen the seller of the MSRs?

The layoffs “were in various departments and locations, but the majority of them were in corporate (administrative) departments at our headquarters,” spokesman for the company told IMFnews.

The FHFA, so far, has declined to provide a budget figure to the general public.