[2][3] Erbey made billions during the subprime mortgage crisis by positioning Ocwen to take advantage of larger banks leaving the market; however, he later lost much of his wealth amid allegations of frequent legal violations and conflicts of interest by the company.
[4][5] In 2014, these conflicts of interest led to Erbey's resignation from Ocwen's board as part of a settlement with the New York Department of Financial Services.
[10][6] In order to do so, Ocwen used backdated letters to borrowers to make it appear as if they had not replied in the required timeframe and violated over a thousand of its other legal obligations.
[6][10][11] As part of his resignation, Erbey received a lump-sum payment of $1.2 million dollars from Ocwen.
[7] Erbey has blamed what happened to his company on what he calls a "concerted smear campaign" by PIMCO and BlackRock, which he sued in 2017.