Ocwen Federal FSB
Encyclopedia
Ocwen Financial Corporation is a provider of residential and commercial mortgage loan servicing, special servicing and asset management services. Ocwen is headquartered in Atlanta, Georgia
, with additional offices in West Palm Beach and Orlando, Florida
, and Washington, D.C.
It also has operations in Uruguay
and India
.
Following its acquisition of Litton Loan Servicing from Goldman Sachs
in September 2011, Ocwen became the largest subprime mortgage servicer in the U.S. On October 24, 2011, Morgan Stanley
announced the sale of Saxon Mortgage Services, Inc. to Ocwen. (The transaction is targeted to close in the first quarter of 2012.)
As of 2010, Ocwen's subprime servicing volume was $56 billion, ranking it fourth in subprime servicing behind American Home Servicing ($78 billion), Bank of America/Countrywide ($82 billion) and Chase Home Finance ($90 billion). In September 2010, Ocwen acquired the U.S. subprime servicing business of Barclays Bank PLC, known as HomEq servicing.
Ocwen is a participant in the U.S. Treasury Department's Making Home Affordable Program (HAMP), which is designed to use loan modifications to help homeowners facing foreclosure. Ocwen early on posted relative success in converting trial loan modifications to permanent ones, in part because it relied on verified income statements from borrowers rather than stated ones. Ocwen modifies principal owed in addition to interest rates in approximately 15% of loan modifications arranged for distressed homeowners. In August 2010, Ocwen enacted a Shared Appreciation Modification (SAM) program that reduces a qualified delinquent borrower's principal to 95% of the home's current market value, but requires the homeowner to later share 25% of the home's appreciation with the investors when the home is eventually sold or refinanced. In 2011, Ocwen reported that it had modified more than 200,000 troubled loans since the mortgage crisis began in the mid-2000s.
In 2009 Ocwen spun off Altisource, a service company specializing in Real Estate Owned
(REO) and related business activities. The two companies maintain a close relationship.
In July 2002, Kweku Hanson
, a Connecticut attorney, initiated a class-action suit against Ocwen Federal FSB of West Palm Beach, Florida, and he was represented in this by fellow attorney Paul Ngobeni
. The 123-page lawsuit in Hanson v. Ocwen Federal Bank outlines a six-year running battle over late charges and fees. He was joined in the suit by 57 individuals who claimed to have been injured by Ocwen. The lawsuit sought $1.5 billion in punitive and exemplary damages but was settled out of court for an undisclosed sum. In November 2011, Ocwen had several cases pending, e.g. Sealy Davis v. Ocwen Bank. In this, a former Ocwen Loan Manger, Ron Davis, testified that he was paid to make people fall behind, post payment late and more.
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, with additional offices in West Palm Beach and Orlando, Florida
Orlando, Florida
Orlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
, and Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
It also has operations in Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
Following its acquisition of Litton Loan Servicing from Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in September 2011, Ocwen became the largest subprime mortgage servicer in the U.S. On October 24, 2011, Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
announced the sale of Saxon Mortgage Services, Inc. to Ocwen. (The transaction is targeted to close in the first quarter of 2012.)
As of 2010, Ocwen's subprime servicing volume was $56 billion, ranking it fourth in subprime servicing behind American Home Servicing ($78 billion), Bank of America/Countrywide ($82 billion) and Chase Home Finance ($90 billion). In September 2010, Ocwen acquired the U.S. subprime servicing business of Barclays Bank PLC, known as HomEq servicing.
Ocwen is a participant in the U.S. Treasury Department's Making Home Affordable Program (HAMP), which is designed to use loan modifications to help homeowners facing foreclosure. Ocwen early on posted relative success in converting trial loan modifications to permanent ones, in part because it relied on verified income statements from borrowers rather than stated ones. Ocwen modifies principal owed in addition to interest rates in approximately 15% of loan modifications arranged for distressed homeowners. In August 2010, Ocwen enacted a Shared Appreciation Modification (SAM) program that reduces a qualified delinquent borrower's principal to 95% of the home's current market value, but requires the homeowner to later share 25% of the home's appreciation with the investors when the home is eventually sold or refinanced. In 2011, Ocwen reported that it had modified more than 200,000 troubled loans since the mortgage crisis began in the mid-2000s.
In 2009 Ocwen spun off Altisource, a service company specializing in Real Estate Owned
Real estate owned
Real estate owned or REO is a class of property owned by a lender typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding...
(REO) and related business activities. The two companies maintain a close relationship.
In July 2002, Kweku Hanson
Kweku Hanson
Kweku Joseph Hanson graduated with a AB from Bowdoin College, Brunswick, ME in 1985 and Doctor of Jurisprudence degree from University of Connecticut School of Law in 1988...
, a Connecticut attorney, initiated a class-action suit against Ocwen Federal FSB of West Palm Beach, Florida, and he was represented in this by fellow attorney Paul Ngobeni
Paul Ngobeni
Paul Mpande Ngobeni was born in Lydenburg, Mpumalanga, South Africa on September 1, 1960. He went to the United States on a scholarship in 1982 graduated with a BA from Hamilton College, New York and Doctor of Jurisprudence degree from New York University School of Law...
. The 123-page lawsuit in Hanson v. Ocwen Federal Bank outlines a six-year running battle over late charges and fees. He was joined in the suit by 57 individuals who claimed to have been injured by Ocwen. The lawsuit sought $1.5 billion in punitive and exemplary damages but was settled out of court for an undisclosed sum. In November 2011, Ocwen had several cases pending, e.g. Sealy Davis v. Ocwen Bank. In this, a former Ocwen Loan Manger, Ron Davis, testified that he was paid to make people fall behind, post payment late and more.