Financial firms needing outsourced services can now turn to Altisource. The company, spun off from Ocwen Financial in 2009, primarily provides business process outsourcing (BPO) services to mortgage providers, but it also offers collections services to credit card companies and sells foreclosed homes through AltisourceHomes.com. Its BPO services include loan processing, settlement services, property inspection, preservation services, insurance and claims processing, closing and title services, and call center services. Its REALSuite software manages loans for mortgage bankers and the financial services industry. Altisource relies on Ocwen, American Express, and Assurant for three-quarters of its revenue.
The company was spun off from Ocwen to expand its customer base, but Ocwen accounted for almost half of sales in 2009. Altisource will continue to be the main outsourcer for Ocwen's mortgage operations through 2017. Before the spinoff, Altisource was a subsidiary of Ocwen called Ocwen Solutions. By establishing its headquarters in Luxembourg, Altisource became a tax-free transaction. (Ocwen shareholders received one share of Altisource common stock for every three shares of Ocwen.) Both companies also share the same chairman, William Erbey, who owns 26% of Altisource and 18% of Ocwen.
Altisource made its first acquisition in 2010 with the purchase of The Mortgage Partnership of America, L.L.C. (MPA) for an undisclosed amount. MPA is the manager of the Lenders One Mortgage Cooperative, a national alliance of more than 155 mid-tier mortgage bankers that originated more than $75 billion in loans during 2009. With the acquisition, Altisource is realizing its goal to become a full service provider of mortgage services -- originating new loans instead of just handling paperwork for existing and defaulting ones.
As an outsourcing company, Altisource relies on India and Uruguay for its offshore operations. – less