Ocwen Loan Modification

Ocwen Loan Modification

Ocwen Financial, the mortgage servicing firm under regulatory scrutiny, disclosed on Tuesday that it planned to sell loan servicing rights for $25 billion in loans to another firm, Nationstar Mortgage.

The announcement follows a statement on Monday by the mortgage servicer that it faces potential delisting from the New York Stock Exchange. The reason, according to a separate statement, is that it has not filed its annual report to shareholders on time.

Ocwen said in its statement that it was continuing to examine whether its Home Loan Servicing Solutions business can “meet its obligations to fund new servicing advances.” Though it did not disclose what that meant, Ocwen cautioned that the situation could have a material negative impact on its finances.

Shares in Ocwen were down more than 3 percent in early trading on Tuesday, at $8.50.

In selling off the rights to service 142,000 mortgages, which are owned by Fannie Mae and Freddie Mac, Ocwen is continuing to scale back its business as it faces intense regulatory scrutiny. The firm has already paid a fine after New York State’s Department of Financial Services accused it of improper practices, and its chairman agreed to step down.

The firm is still under pressure from a California regulator, which pushed this year to suspend its license to operate in that state for 12 months.

The transaction on Tuesday involving servicing rights isn’t the first that Ocwen has announced so far this year. The firm previously sold nearly $10 billion in rights to Nationstar last month, $9.6 billion to Green Tree Loan Servicing and a reported $45 billion to JPMorgan Chase.

Ocwen’s chief executive, Ronald M. Faris, has said that the company intends to eventually get out of the business of servicing loans held by Fannie Mae and Freddie Mac.

Ocwen Loan Modification

Ocwen Loan Modification Help
A loan modification program offers a change in the rate and term of your existing home loan resulting in an affordable and sustainable monthly loan payment. The Ocwen loan modification program may include a reduction in the interest rate, a longer loan term, and most of the time, a reduction in the principle balance. www.loanmodexperts.com

ocwen loan modification help

ocwen loan modification help

A major U.S. mortgage servicing firm under investigation for issuing backdated letters to borrowers who sought loan modifications is also the subject of thousands of consumer complaints, government data show.
Ocwen Financial (OCN) has been targeted by 13,520 complaints filed with the Consumer Financial Protection Bureau since December 2011 for problems involving loan servicing, foreclosures and related issues, according to the regulator's data.
The complaint total ranked Ocwen third for mortgage-related grievances filed with the CFPB during the nearly three-year span. Only Bank of America (BAC), with 29,390 complaints, and Wells Fargo (WFC), with 17,574, had more, the data show.
Ocwen's complaint total topped those of two of its closest non-bank competitors in the mortgage servicing sector, Nationstar Mortgage (NSM) and Green Tree Servicing, a subsidiary of Walter Investment Management (WAC), according to the data.
Most of the complaints were closed, with explanations given to the borrowers.
Mortgage servicers handle the day-to-day financial tasks involved with managing housing loans, including processing payments.
The violations represent a second attack on Ocwen, whose shares plunged last week after a New York regulator's review found serious issues with its mortgage servicing practices. This included the backdating of potentially thousands of letters that denied borrowers mortgage modifications and left them no time to appeal, likely causing "significant harm" to some homeowners, according to the New York Department of Financial Services review.
Citing a March research report by investment bank Compass Point Research and Trading, Ocwen said the consumer complaint total could be misleading because some mortgage servicers deal with relatively higher numbers of delinquent borrowers. Ocwen handles a heavy volume of delinquent mortgage loans.
"The servicing of delinquent loans is much more difficult and the most likely source of servicing missteps," the Compass Point report said.
Ocwen also cited a Department of the Treasury report issued in September that said the company had met all compliance benchmarks for the federal Home Affordable Modification Program. Minor improvement may be needed in some cases, the report said.
The CFPB reported Tuesday that its examinations of mortgage servicers earlier this year found some had delayed finalizing permanent loan modifications for borrowers, resulting in "negative consequences" for at least some of the homeowners involved. The report did not identify specific companies.

Ocwen Backdating Draws Attention of Attorneys

Ocwen Loan Modification Help
Ocwen Financial Corp.’s backdating of letters rejecting homeowner requests to modify mortgages has drawn the attention of at least three state attorneys general who were part of a $2.1 billion agreement to curb the company’s alleged abuse of borrowers just last year.
The backdating left some consumers with insufficient time to appeal the denials, according to a letter sent to the loan servicing company by Benjamin Lawsky, the head of New York’s Department of Financial Services.
Ocwen’s actions may have also breached its December accord with the federal Consumer Financial Protection Bureau and attorneys general from 49 states.
“We’re monitoring the issue and looking into other issues as well,” Illinois Attorney General Lisa Madigan’s spokeswoman, Natalie Bauer, said in a phone interview yesterday. Bauer declined to describe the other issues being looked at by Madigan, a Democrat.
Florida Attorney General Pam Bondi, a Republican, and Iowa’s Tom Miller, a Democrat, are also looking at a potential breach of the December settlement, spokesmen for those officials said.
The accord required Ocwen, the biggest non-bank mortgage servicing business in the U.S., to provide $2.1 billion in borrower relief, with $125 million of that to compensate people who lost their homes to foreclosure and the bulk of it in the form of loan principal forgiveness, according to a CFPB statement issued in December.

Independent Monitor

Ocwen also consented to the appointment of attorney Joseph A. Smith, a former North Carolina banking commissioner, as an independent monitor of its compliance.
Lawsky said Ocwen backdated thousands of loan modification denial notices starting in 2012 and continuing into this year, likely causing “significant harm” to borrowers left with no time to challenge those determinations.
“The existence and pervasiveness of these issues raise critical questions about Ocwen’s ability to perform its core function” of loan servicing, according to Lawsky’s letter, which was made public two days ago.
His letter was cited by Moody’s Investors Service yesterday in a decision to downgrade its quality assessment of an Ocwen unit servicing residential and subprime-residential loans.

Risks Cited

“Both assessments remain on review for further downgrade,” the ratings company said. Allegations raised in Lawsky’s letter “raise the risk of actions that restrict Ocwen’s activities, the levying of of monetary fines against Ocwen, or additional actions that negatively affect Ocwen’s servicing stability,” Moody’s said.
Ocwen closed at $19.51 today, down almost 26 percent from its close on Oct. 20.
Under a consent order signed by U.S. District Judge Rosemary M. Collyer in Washington in February, the CFPB could seek penalties for any violation of the agreement.
David Millar, a spokesman for Atlanta-based Ocwen, said Oct. 21 that the company deeply regrets the improperly-dated correspondence that resulted from “errors” in its systems.
Millar, who is affiliated with Sard Verbinnen & Co., declined to comment on the consent order.
Smith is due to file a compliance report by the end of this year.
Matthew Anderson, a spokesman for Lawsky, declined to comment on the matter. Sam Gilford, a Consumer Financial Protection Bureau spokesman, also declined to comment.
The case is Consumer Financial Protection Bureau v. Ocwen Financial Corp. (OCN), 13-cv-2025, U.S. District Court, District of Columbia (Washington).

Ocwen to hire independent firm to probe backdated foreclosure letters

Ocwen Loan Modification Help 

Ocwen Financial Corp said it was hiring an independent firm to investigate how the mortgage servicer had sent backdated letters to borrowers about loan modifications and foreclosures and the reason for the delay in fixing the issue.

Hundreds of thousands of borrowers facing foreclosure may have been harmed after they received letters from Ocwen with cure dates that had passed months earlier, New York Financial Services said on Tuesday.
The company denied them loan modifications in letters that they received more than 30 days after they were mailed, cutting off an opportunity to appeal, according to an Oct. 21 letter from the New York Financial Services to Ocwen.
Ocwen's Chief Executive Ron Faris wrote a letter to homeowners on Friday apologizing for the improperly dated letters, as well as to clarify what happened, explain the actions the company had taken to address the issue, "and to commit to ensuring that no borrower suffers as a result of our mistakes".
"Historically such letters were dated when the decision was made to create the letter versus when the letter was actually created," Faris wrote in the letter.
"In most instances, the gap between these dates was three days or less. In certain instances, however, there was a significant gap between the date on the face of the letter and the date it was actually generated."
The company, one of the largest U.S. mortgage servicers, was continuing to investigate all letters to check if any of them had been "inadvertently misdated", the letter said.
Atlanta-based Ocwen on Tuesday had blamed the improperly dated letters on software errors and that it had resolved the errors identified as of that date.
The company's statement on Tuesday had said 283 New York borrowers received letters with incorrect dates. Ocwen amended the statement later that day to say it was aware of borrowers in New York beyond the 283 who received letters with incorrect dates but did not know yet know how many.
Faris' letter on Friday did not mention how many borrowers had received such letters, but he added Ocwen believed its backup checks and controls had prevented any borrower from a foreclosure due to the improperly dated letters.
He said Ocwen would work with its advisory council, made up of 15 nationally recognized community advocates and housing counselors, on "making things right for any borrowers who may have been affected in any way by this error".
Up to Friday's close of $19.27, Ocwen shares had fallen nearly 27 percent.

Ocwen Financial accused of denying loan modifications to borrowers

Ocwen Loan Modification Help 

 

MORTGAGES

Regulators loosen down payment rules

Buying a home may have gotten a little easier this week. The government is loosening some financial rules, hoping to inject more life into the country’s still-recovering housing market.
Banks and borrowers stand to benefit from new rules unveiled Tuesday by six federal agencies. While banks will see relaxed guidelines for packaging and selling mortgage securities, fewer borrowers likely will need to make hefty down payments.
The board of the Federal Deposit Insurance Corp. voted 4-1 to adopt the new rules, and two other agencies approved them as well. The Federal Reserve has scheduled a vote for Wednesday, and two other agencies are expected to adopt the rules soon.
The regulators have dropped a key requirement: a 20 percent down payment from the borrower if a bank didn’t hold at least 5 percent of the mortgage securities tied to those loans on its books. The long-delayed final rules include the less stringent condition that borrowers not carry excessive debt relative to their income.
The rules for the multitrillion-dollar market for mortgage securities will take effect in a year. For other kinds of securities such as those bundling together auto loans or commercial loans, which don’t allow banks an exemption from the 5 percent rule, the effective date is in two years.

Why Trust on Us!!!!

Ocwen Loan Modification Help

Why Us ?

We are a team of professionals who have worked in the past as a loan officer and underwriters and have detail knowledge of the tricks used in the trade of Mortgage industry and servicing companies.
Our team of professionals is well equipped and qualified to understand your situation to work with you and update you on each and every step while your application is on the way for approval. Since we started 3 years back we have already helped over 4000 people to get a successful loan modification from Ocwen alone.
You may have come across lot of people or articles over the internet which says that the Debt to income ratio is the key in getting you qualified for a loan modification, however the fact stays far from this information, there are various factor involved in a loan modification approval or denial other then Debt to Income Ratio (DTI), there are crucial calculations like LTV (loan to Value Ratio), Net to Present value test, and stringent investor guidelines that needs to be followed. They also charge you an upfront fee only for presenting your application to Ocwen and do not guarantee a loan modification.
In order to qualify for an OCWEN loan modification, you must be able to prove to the bank that your specific financial situation meets their strict guidelines for approval. This can be confusing and tricky-especially because they will not tell you what they are looking for on your application! In fact, the vast majority of applications are denied simply because the borrower did not understand how to complete the financial worksheet correctly or able to really prove to Ocwen that they are facing financial difficulty.
So if you have a loan with Ocwen and you are willing to get a loan modification that will get your payments and interest rate down on your mortgage, this is the time, if you have been already denied once do not try your luck the second time without a professional help as this may cost you your house. Even if you have been denied more than 2 times you can still contact us, as we can still get you a loan modification.