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Tag Archives: Ocwen

Ocwen Financial Offers New Loan Modification Program

Ocwen Financial Corporation has enacted a unique loan modification program designed to help underwater homeowners and investors without rewarding loan delinquency. The company's Shared Appreciation Modification (SAM) reduces a delinquent borrower's principal to 95 percent of the home's current market value but requires the homeowner to later share 25 percent of the home's appreciation with the investor when the home is eventually sold or refinanced.

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Treasury Puts Performance of 10 Largest HAMP Servicers on Display

The U.S. Treasury has released its regular monthly report card on the Home Affordable Modification Program (HAMP). New this time is an assessment of how the 10 largest HAMP servicers are performing. Four servicers have been designated as needing ""substantial"" improvement: Bank of America, JPMorgan Chase, Ocwen Loan Servicing, and Wells Fargo. Treasury says it will withhold financial incentives from three of these companies until they make identified improvements.

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Ocwen Launches Turnkey Operation for Distressed Mortgage Buyers

Specialty servicer Ocwen Financial Corporation recently launched a new product to help buyers of non-performing loan portfolios or residuals of private-label securities get more value from their loans. A turnkey product, PlatformPlus allows distressed asset investors to set up their own specialty servicing operations using Ocwen's expertise and management.

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Goldman Sachs Sells Litton Servicing Arm to Ocwen

Goldman Sachs has agreed to sell its residential mortgage servicing subsidiary to Ocwen Financial Corp. Ocwen will pay $263.7 million in cash to acquire Litton Loan Servicing. In addition to the cash purchase price, Ocwen will lay out another $337 million to take care of some of Litton's outstanding debt. The deal will result in Ocwen's acquisition of a servicing portfolio of approximately $41.2 billion in unpaid principal balance of primarily non-prime residential mortgage loans.

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Federal Trade Commission Requests Loan Servicing Records from Ocwen

The Federal Trade Commission (FTC) has requested documents and information from Ocwen Financial related to its loan servicing activities as part of a civil investigation, the company said in its annual regulatory filing with the Securities and Exchange Commission. The Florida-based specialty loan servicer, which focuses on bringing highly distressed loans back to performing status, is the latest mark in a number of investigations by government agencies targeting the mortgage servicing industry.

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Moody’s Takes a Closer Look at the Dynamics of Mortgage Re-Defaults

Moody's Investors Service studied two million loans backing residential mortgage-backed securities (RMBS) pools and found that a loan that is modified and then reported as current is three times as likely to default over the ensuing twelve months as a current loan that has not been modified. The agency's also put the practices of eight major servicers under the microscope. It found that six-month re-default rates vary considerably, from 20 percent for Citi and Litton to 33 percent for Bank of America.

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Bank of America Gets Low Marks for Delinquency Resolution

The time mortgage loan servicers take to resolve delinquent loans through modification or foreclosure varies widely. According to an analysis by Moody's Investors Service, Bank of America has demonstrated the weakest performance measured both by its speed in resolving the status of delinquent loans and by its proportion of delinquent loans that have yet to be resolved. The ratings agency found that GMAC Mortgage, on the other hand, has generally performed better than its peers.

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Court Affirms Ohio AG’s Case Against Loan Servicer HomEq

Ohio Attorney General Richard Cordray's lawsuit against Barclays Capital Real Estate, dba HomEq Servicing, just took a legal step forward with a recent decision by a state court. This week, a Montgomery County judge overruled the defendant's motion to dismiss, clearing the way for Cordray's case to move forward, and the attorney general says, setting the stage for servicers to be held legally responsible for their actions in the aftermath of the foreclosure crisis.

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Ocwen Pays Less Than Expected for HomEq

Ocwen Financial Corp. paid $1.196 billion for HomEq Servicing, 7.4 percent less than the Florida-based company had initially estimated. Ocwen says 134,000 home loans were transferred from HomEq and immediately boarded onto Ocwen's system on September 1. The reason for the reduction in the purchase price is that the unpaid principal balance of the boarded loans was $5.6 billion less than previously anticipated. Ocwen called it a ""normal runoff.""

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Ocwen Completes HomEq Acquisition, Closes Two Facilities

Ocwen Financial Services closed its purchase of HomEq Servicing last week. The $1.3 billion deal with HomEq parent Barclays Bank was initially announced in May. The transaction aligns two of the foremost names in the business of servicing distressed mortgages. As part of an organizational restructuring, Ocwen says it will close down two HomEq offices in California and North Carolina, and lay off more than 1,000 HomEq staff members.

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