Ocwen Financial Corporation, (NYSE:OCN) (“Ocwen” or the “Company”),
a leading financial services holding company, announced today that
the Company helped approximately 75,000 homeowners avoid
foreclosure through responsible loan modification programs in 2016.
These modification programs include both the U.S. Department of the
Treasury Home Affordable Modification Program (HAMP), as well as
proprietary modifications for those homeowners who did not qualify
for a HAMP modification.
Ocwen leads all other servicers in HAMP modification activity,
and in 2016 granted approximately 42,000 loan modifications through
the HAMP program, many which included a reduction in principal.
Ocwen has also outperformed the industry under the new HAMP
Streamline Modification Program. In 2016, Ocwen completed over
14,500 streamlined modifications and expects that number to
increase as additional homeowners convert their trial plans into
permanent modifications.
Despite the expiration of HAMP at the end of 2016, Ocwen remains
committed to a business model that will continue to offer loan
modifications to its customers who are struggling to meet their
mortgage payment obligations. Ocwen will continue to work with
families impacted by financial hardship through community
engagement and innovative loan modification solutions.
“Ocwen is recognized as the industry leader in responsible home
retention through foreclosure prevention,” commented Ron Faris,
President and CEO of Ocwen. “There is no doubt that a homeowner
whose loan is serviced by Ocwen has a much better chance of
avoiding foreclosure than if their loan is serviced by any other
large mortgage servicer. This has been confirmed by independent
third-party studies, which consistently illustrate that Ocwen has a
superior record helping borrowers bring their payments current,
stay current, and repay their mortgage.”
Ocwen is especially well positioned to handle the challenges of
servicing non-conforming loans. The Company’s success is clearly
illustrated by its ability to consistently decrease delinquencies
on loan portfolios acquired from other financial institutions.
For example, in 2013 Ocwen acquired mortgage servicing rights
from two financial institutions. In one portfolio, the delinquency
rate improved from 21 percent at boarding to 12 percent as of
October 31, 2016. In a second portfolio, the delinquency rate
improved from 24 percent at boarding to 14 percent as of October
31, 2016. In addition, loan modifications for borrowers in
these portfolios included a significant number of principal
reductions, 38 percent and 47 percent respectively, which are
designed to benefit both homeowners and loan investors over the
long term.
Based on the latest U.S. Department of the Treasury Making Home
Affordable Performance Program Report, for the third quarter
2016, which was released on December 9, 2016, Ocwen has:
- Completed 20 percent of all HAMP modifications.
- Completed 53 percent more HAMP modifications than the next best
servicer.
- Granted 49 percent of all HAMP Principal Reduction
Modifications completed industrywide.
Since January 1, 2008, Ocwen has granted approximately 720,000
loan modifications, and has completed more principal reduction loan
modifications than the three largest servicers
combined.
The top 10 states where Ocwen granted loan modifications
are:
State |
2016 Modifications |
2008 – 2016 Modifications |
California |
8,706 |
91,340 |
Florida |
6,977 |
83,184 |
New York |
6,041 |
49,324 |
Texas |
5,364 |
47,245 |
New Jersey |
3,744 |
26,153 |
Pennsylvania |
3,629 |
30,776 |
Illinois |
3,450 |
36,082 |
Maryland |
3,194 |
25,932 |
Georgia |
2,660 |
27,911 |
Ohio |
2,648 |
25,310 |
Ocwen’s success in its servicing performance has been greatly
strengthened in recent years. The Company’s Board of Directors has
undergone important changes with the goal of strengthening
independent oversight and risk management. Today, the composition,
structure, experience and diversity of the Board, which consists of
eight members, seven of whom are independent directors, is as
strong as any comparable financial services company. Phyllis
Caldwell, an independent director who joined Ocwen’s Board in
January 2015, was appointed Chair in March 2016. Ms. Caldwell
previously served as Chief of the Homeownership Preservation Office
at the U.S. Department of the Treasury, where she was responsible
for oversight of U.S. housing market stabilization, economic
recovery and foreclosure prevention initiatives.
Ocwen’s management and Board have set the goal to achieve
“best-in-class” status in the mortgage servicing industry. The
Company supports government regulations designed to protect the
best interests of its customers while promoting best practices
across the marketplace. Ocwen has undertaken a major overhaul of
its risk and compliance management and infrastructure practices and
launched a multi-year service excellence initiative to achieve the
highest level of customer service.
“We remain focused on enhancing the borrower experience, further
strengthening our risk and compliance infrastructure, and
delivering strong loss mitigation results,” added Mr. Faris.
“Non-bank servicers, such as Ocwen, fill a much-needed role in the
mortgage industry that large banks generally cannot, and do not
want to provide. As a top servicer of non-conforming loans, the
Company’s focus and success with higher risk customers will
continue to add needed stability to the U.S. housing
market.”
About Ocwen Financial CorporationOcwen
Financial Corporation is a financial services holding company
which, through its subsidiaries, originates and services loans. We
are headquartered in West Palm Beach, Florida, with offices
throughout the United States and in the U.S. Virgin Islands and
operations in India and the Philippines. We have been serving our
customers since 1988. We may post information that is important to
investors on our website (www.Ocwen.com).
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements may be
identified by a reference to a future period or by the use of
forward-looking terminology.
Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Our
business has been undergoing substantial change which has magnified
such uncertainties. Readers should bear these factors in mind when
considering such statements and should not place undue reliance on
such statements. Forward-looking statements involve a number of
assumptions, risks and uncertainties that could cause actual
results to differ materially. In the past, actual results have
differed from those suggested by forward-looking statements and
this may happen again.
Important factors that could cause actual
results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, those
risks detailed in Ocwen’s reports and filings with the Securities
and Exchange Commission (SEC), including its annual report on Form
10-K for the year ended December 31, 2015 and its current and
quarterly reports since such date. Anyone wishing to understand
Ocwen’s business should review its SEC filings. Ocwen’s
forward-looking statements speak only as of the date they are made
and, we disclaim any obligation to update or revise forward-looking
statements whether as a result of new information, future events or
otherwise.
For Further Information Contact:
John Lovallo
Tel: 917-612-8419
Email: jlovallo@levick.com
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