Maryland Governor Martin O’Malley and Ocwen Financial Launch Program to Lessen Foreclosures
Ocwen Financial Corp. has committed to work with Governor O’Malley and state agencies to modify mortgage loans and lessen the number of houses being foreclosed. Ocwen will use its proprietary software to identify borrowers at risk of foreclosure, arrange payment plans and keep borrowers in their homes while maintaining income for mortgage lenders and investors.
Ocwen will work with Maryland’s Foreclosure Prevention Assistance Network and with the Housing & Community Development Department’s Bridge to Hope Loan project.
Ocwen handles about 341,000 mortgages across the nation, with 85% of the loans subprime. About 7,072 of the loans were taken out in Maryland.
Ocwen has completed loan modifications for about 55,000 homeowners across the country and has increased the number of its home retention consultants by 65 percent. It says that its loan modifications have helped reduce the number of delinquent loans in the third quarter, helping reduce the risk of foreclosures nationwide.
According to Ocwen’s president Ronald Faris, foreclosure prevention programs are advantageous to all sides in these times of difficulties. He says that homeowners keep their homes, lenders and investors gain profits and neighborhoods remain healthy.
The features of the contract between the state and Ocwen include the following: Designation of Ocwen staff working with homeowners as Team Maryland Quick communication with homeowners about the status of their mortgage loans Streamlined loss mitigation process by state agencies involved Participation of Ocwen and state personnel in local events and outreach meetings held to help prevent foreclosures.
Among the community leaders and organizations that Ocwen have worked with are: Anne Balcer Norton of the Saint Ambrose Housing Aid Center’s Foreclosure Prevention unit, Robert Strupp of the Community Law Center, Lisa Rice of the National Fair Housing Alliance and George Goehl of the National Training & Information Center.