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» VISIT US ONLINE @ DSNEWS.COM 59 LENDER/SERVICER PROFILE Ocwen Loan Servicing, LLC MEGA-SERVICER Sources: Ocwen.mortgagebanksite.com (1/24/2013), Fitch Ratings (12/17/2013), Moody's Investor's Service (1/16/2013), Standard & Poor's (1/21/2014; 12/30/2013) Take a look inside the numbers S T A T E S S E R V I C E D * KEY TECHNOLOGY Loan servicing system: Alan King & Co.'s SBO 2000 SWOT STATEMENT (Strength, Weakness, Opportunity, Threat): According to Standard & Poor's most recent servicer evaluation, Ocwen's strengths include the fact that it has "maintained GMAC Residential Fund- ing's very experienced line management and infrastructure, [made] significant enhancements in the primary servicer scorecards, [and] continues to adjust servicer oversight to manage servicer issues, such as increased modifications and other loss-mitigation alternatives." However, the ratings agency found weaknesses in Ocwen's senior manage- ment, which it found "new to master-ser- vicing responsibilities and to overseeing its owner primary servicing operation." KNOW THIS According to a press statement, Ocwen Loan Servicing's parent company, Ocwen Financial, reported a net income of $67 million ($0.44) at the end of Q3 2013. This is an increase from Q3 2012, which saw a net income of $51.4 million ($0.37 per share). COMPANY VITALS Headquarters: Atlanta, Georgia Phone: 800.766.4622 Online: Ocwen.mortgagebanksite.com Ocwen Loan Servicing, LLC, is an Atlanta-based master servicer that was created from the absorption of GMAC Residential Funding Co. by parent company Ocwen Financial Corp (OCN). OCN was established in 1988 and went public in 1996. In addition to its Atlanta headquarters, Standard & Poor's reports that OCN has servicing centers in West Palm Beach, Florida (537 staff); Fort Washington, Pennsylvania (433); Waterloo, Iowa (790); Dallas, Texas (711); Houston, Texas (198); and Orlando, Florida (26). In addition, OCN has offshore captive servicing centers in Bangalore, Mumbai, and Pune, India (nearly 5,000 staff). Ocwen prides itself on being a servicer of high-risk loans, and the company has stated on its site that it has achieved pre-foreclosure resolution rates of 70 percent or more. COMPANY'S LATEST January 22, 2014 Wells Fargo to Sell $39B MSR Portfolio to Ocwen Ocwen's servicing segment is set to acquire mortgage servicing rights (MSRs) on a $39 billion portfolio from Wells Fargo, the two companies an- nounced January 22. According to the dual releases, the portfolio consists of approximately 184,000 loans and accounted for about 2 percent of Wells Fargo's total residential servicing portfolio as of the end of 2013. The companies expect the transaction to close by the end of this year. Financial details were not disclosed. The loans underlying the MSRs in the portfolio are primarily in private label securities, the companies said, and they were not originated by Wells Fargo. —DSNews.com December 20, 2013 Ocwen Financial Corp. Reaches $2.1 Billion Mortgage- Servicing Settlement Mortgage servicer Ocwen Financial Corp. (OCN -1.46%) reached a $2.1 billion settlement to resolve allegations it had far-reaching problems with its loan-processing operations and mistreated homeowners facing foreclosure . . . The company "violated federal consumer financial laws at every stage of the mortgage servicing process," said CFPB director Richard Cordray. "Ocwen made troubled borrowers even more vulnerable to foreclosure." Ocwen did not admit to the allegations but said the pact "is in alignment with the same ultimate goals that we share with the regulators—to prevent foreclosures and help struggling families keep their homes." Ocwen agreed to pay $125 million to 185,000 borrowers who lost their homes between 2009 and 2012. Half of the payment will be funded by former owners of mortgage-servicing portfolios Ocwen acquired. The company will also reduce mortgage principal balances for outstanding loans by at least $2 billion over three years. —Wall Street Journal KEY PERSONNEL William C. Erbey Executive Chairman Ronald M. Faris President and CEO John V. Britti EVP and CFO Richard L. Cooperstein CFO, Ocwen Mortgage Servicing Staffing » Servicing staff (as of December 31, 2012): 47 » Staff experience (averages): » Senior managers: 20 years' industry experience, 12 years' tenure » Middle managers: 27 years' industry experience, 13 years' tenure » Total annualized turnover: 0 percent for managers and 2 percent for staff » Servicing sites: Master servicing location in Burbank, CA SERVICING SUMMARY* Residential Servicing Statistics At or for the three months ended » Performing loans include those loans that are less than 90 days past due and those loans for which borrowers are making scheduled payments under loan modification, forbearance, or bankruptcy plans. All other loans are considered non-performing. » Constant prepayment rate for the prior three months. » Includes average CPR of 18% for prime loans and 13.1 for non- prime loans. *Source: Ocwen 10/31/13 press statement MSRs » In August and September 2013, OneWest transferred MSRs for approximately $30 billion of UPB related to Freddie Mac and Fannie Mae loans. California, Florida, Texas, Pennsylvania, Iowa