Ocwen
By Esther Cho | 04/17/2012
Based on a metric devised by Moody’s Analytics, GMAC, SLS, and American Home performed better compared to other subprime servicers in terms of cash collected relative to losses on delinquent loans. This was mainly due to shorter liquidation timelines that resulted in lower loss severities on liquidated or foreclosed properties, according to an article in Moody's ResiLandscape. GMAC's high metric is due primarily to shorter liquidation timelines and because the servicer maximizes cash flow on modified loans by keeping the re-default rates in line with the industry average even though it offers relatively low levels of relief in terms of principal and interest.
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By Carrie Bay | 03/02/2012
Treasury says servicers participating in the Home Affordable Modification Program (HAMP) are getting better at evaluating homeowners for eligibility. Its latest performance assessment found no company in need of "substantial improvement." OneWest Bank and Select Portfolio Servicing performed at the highest level, needing only minor improvement. As part of the $25 billion settlement announced last month, Treasury has agreed to release incentives previously withheld from Bank of America and JPMorgan Chase.
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By Krista Franks Brock | 01/23/2012
As robo-signing reviews reach completion, servicers are beginning to work through some of their foreclosure backlogs, according to a third-quarter report from Moody's Investors Service. At the same time, the ratings agency found that loan modifications are on the decline. Servicers are now turning to loss mitigation alternatives such as short sales and deeds in lieu, Moody's says. The agency is also forecasting longer timelines this year to move properties from foreclosure sale to REO liquidation.
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By Carrie Bay | 12/07/2011
The U.S. Treasury said Wednesday that it will continue to withhold incentives from JPMorgan Chase and Bank of America for modifications, short sales, and deeds-in-lieu completed through government programs. JPMorgan is the only servicer participating in Treasury's Making Home Affordable program that was determined to need "substantial improvement" in complying with program guidelines during the third quarter. Bank of America moved up a notch on the assessment scorecard to needing only "moderate improvement."
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By Carrie Bay | 11/14/2011
Ocwen Financial continues to make moves to expand its portfolio. The special servicer disclosed in a filing with the Securities and Exchange Commission that it has agreed to purchase $15 billion in mortgage servicing rights from JPMorgan Chase. It's the latest in a string of transactions bolstering Ocwen's portfolio, and the company's not stopping there. Ocwen says a new venture will allow it to compete for the servicing rights of newly originated FHA loans. It is also looking to expand into reverse mortgages and home equity lines of credit.
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By Carrie Bay | 11/01/2011
Mortgage servicing practices have a considerable impact on the performance of a portfolio, and according to Moody's Investors Service, risk composition is diverging based on how individual servicers are dealing with borrowers. The ratings agency has begun publishing comparative performance metrics on the largest servicers of private residential mortgage-backed securities (RMBS). Its analysts have identified three whose "strong servicing practices" have improved delinquency trends: GMAC, Ocwen, and Wells Fargo.
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By Carrie Bay | 10/24/2011
Morgan Stanley has announced the sale of Saxon Mortgage Services to Ocwen Financial Corporation. Ocwen has agreed to acquire Saxon for the base purchase price of $59.3 million. The deal also includes an estimated $1.4 billion for servicing advance receivables outstanding. The transaction is expected to close in the first quarter of 2012. This marks Ocwen's third major acquisition over the past year.
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By Krista Franks | 10/17/2011
Amid a challenging environment for servicers, CitiMortgage, GMAC, and Ocwen have outperformed major competitors with regards to loss mitigation and foreclosure timelines, according to a recent report from Moody's Investors Service. The company's Servicer Dashboard rates major servicers on their performance from June 2010 to June 2011. Moody's notes that Bank of America's and Chase's performance assessments were affected by large servicing acquisitions and foreclosure moratoria.
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By Carrie Bay | 09/01/2011
Treasury has released the results of its second-quarter assessment of servicers participating in the Making Home Affordable program. Officials say they will continue to withhold program incentives owed to Bank of America and JPMorgan Chase. The two were determined to need "substantial improvement" in key areas including borrower evaluations. BofA and JPMorgan received the same score last quarter, as did Wells Fargo, but Wells has now elevated its grade to needing "moderate improvement."
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By Krista Franks | 09/01/2011
The New York Department of Financial Services is including several stipulations with its approval of Goldman Sachs' sale of its Litton Loan Servicing unit to special servicer Ocwen Financial.
Goldman Sachs has agreed to principal reductions of $53 million on Litton mortgages. In addition, the agreement forged between Goldman and New York's banking superintendent addresses the illegal practice of robo-signing and includes rules to ensure only the note-holder pursues foreclosure actions.
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