WEST PALM BEACH, Fla., March 14, 2006 (PRIMEZONE) -- The U.S. Department of Veterans Affairs (VA) has selected a subsidiary of Ocwen Financial Corporation (NYSE:OCN) to provide servicing of the commercial loans related to the construction and redevelopment of multifamily transitional housing for homeless veterans.
Specifically, Ocwen has been contracted to act as the agent for the VA in providing construction loan servicing, permanent performing loan servicing and, if necessary, special servicing of any defaulted loans.
The servicing project is a part of the VA's Loan Guarantee Program for Homeless Veterans Multifamily Transitional Housing, which provides low interest loans originated by the Federal Financing Bank, an arm of the U.S. Department of Treasury, with a 100% guarantee by the VA. Congress has authorized the VA to guarantee repayment of a maximum of 15 loans with an aggregate value of $100 million for construction, renovation of existing property and refinancing of existing loans, facility furnishing or working capital.
Ocwen is providing construction loan servicing for a Chicago facility, which is approximately 35% complete, and expects to begin servicing a second project in San Diego in June 2006.
This new initiative was designed to provide continued assistance for those veterans who have completed intensive treatment programs and in need of safe, decent, affordable housing with supportive services. Veterans in this program are likely to be employed or seeking work and moving toward self-sufficiency. The Loan Guaranty for Multifamily Transitional Housing for Homeless Veterans Program is VA's first attempt to engage community and faith-based organizations in offering housing to veterans in recovery who are actively engaged in returning to work.
Ocwen services approximately $14 billion of performing and nonperforming commercial mortgage loans for third parties worldwide. A highly rated servicer, Ocwen offers customized solutions to banks, investment banks, opportunity funds, insurance companies, lenders, mortgage bankers and government entities.
On the residential side, Ocwen currently administers the VA's Vendee Financing Program, a low-fee mortgage financing option for both veterans and non-veterans.
Ocwen Financial Corporation ("Ocwen") is a leading provider of servicing and origination processing solutions to the loan industry with headquarters in West Palm Beach, Florida, offices in Orlando, Florida and Chicago, Illinois and global operations in Canada, Germany, India and Taiwan. We make our clients' loans worth more by leveraging our superior processes, innovative technology and high-quality, cost-effective global human resources. Additional information is available at www.ocwen.com.