Falling behind in payments doesn’t have to mean a borrower is doomed to lose their home. Lenders and servicers are often willing to work with the borrower to find options that allow the borrower to remain in their home while they try to catch up and climb out of their financial hole. On Wednesday, Ocwen put a concrete figure to that broader truism, announcing that during 2017 the company had helped approximately 45,650 families avoid foreclosure and remain in their homes.
Ocwen said that, of these nearly 50,000 borrowers, some Ocwen worked with directly, while others sought mortgage modification assistance through various non-profit agencies. Ocwen reported forgiving approximately $857 million in mortgage debt during 2017. Beginning in 2008 and leading up to December 31, 2017, Ocwen granted approximately 765,200 loan modifications nationwide and forgave more than $18.5 billion in debt.
This type of borrower assistance is crucial given the makeup of Ocwen’s portfolio, which the company as being “comprised in large part of non-conventional mortgages that have higher than average delinquency rates.” As of December 31, 2017, the delinquency rate on Ocwen’s mortgage portfolio was approximately 9.3 percent.
“Ocwen leads the industry in offering innovative mortgage loan modifications, and is proud to help homeowners across the country find solutions that allow them to remain in their homes,” said Jay Williams, SVP, Servicing Financial Operations, at Ocwen. “Given the challenging nature of our portfolio, it is incumbent upon the company to design products and strategies that serve a diverse customer base. Our 2017 borrower assistance results show that we continue to make progress in our effort to be one of the nation’s leading mortgage servicers.”
Ocwen also revealed the states where it had completed the highest number of loan modifications, with California leading the pack. During 2017, Ocwen reported 5,450 loan modifications in the Golden State and $91.6 million in mortgage debt forgiven. Florida came in second, with 4,300 loan mods and $107.7 million in debt forgiveness, followed by New York (3,950 mods and $156.2 million forgiveness), Texas (3,050 mods and $12.6 million forgiveness), and New Jersey (2,325 mods and $113.2 forgiveness), respectively.
You can read further state-by-state breakdowns of Ocwen’s 2017 loan modification history by clicking here.