Ocwen News

"Obama to Test Home Loan Do-Overs: Foreclosure Prevention Effort Starting Wednesday Relies on Modifying Loans Based on Borrowers’ Ability to Pay. Will This Effort Work Where Others Have Failed?"

by Tami Luhby

…Take Ocwen Financial Corp. The servicer boasts of a 19.4% redefault rate, less than half of the industry average. The West Palm Beach, Fla.-based firm says most of its borrowers remain current because of its customized approach to modifications…The company says it has prevented more than 90,000 foreclosures since the mortgage crisis began… Unlike most servicers, Ocwen has embraced principal reductions. Nearly 19% of its loan modifications include writing down the mortgage balance. This is an important step to achieving an affordable payment while still maximizing the payout for the mortgage investor, the company says.

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