WEST PALM BEACH, Fla., June 25, 2008 (PRIME NEWSWIRE) -- Ocwen Financial Corp. (NYSE:OCN), a leading servicer of subprime mortgages, endorses and has adopted HOPE NOW Alliance's recently announced procedures and guidelines for preventing foreclosures and helping homeowners, according to Ronald Faris, Ocwen's president.
The Alliance's guidelines establish a streamlined timetable for working with distressed homeowners, as well as a common set of principles on foreclosure prevention alternatives, including loan modifications and forbearance and repayment plans. HOPE NOW is a government-initiated alliance between counselors, mortgage market participants and mortgage servicers with the mandate to create a unified, coordinated plan to reach and help as many homeowners as possible.
While Ocwen had been following nearly all of the procedures -- as a way of handling the subprime crisis and mitigating its impact on all constituents, including homeowners and investors, well before the Alliance set the guidelines -- the company actively supports the idea of an industry standard that assures homeowners are dealt with in a uniform and timely manner.
"The HOPE NOW guidelines will greatly aid in the prevention of foreclosures," said Mr. Faris. "We agree with HOPE NOW that a proactive effort to modify problem loans represents the best solution for everyone in this difficult environment. Not only does modification give distressed homeowners a much greater chance of staying in their homes, it benefits investors by getting delinquent loans re-performing and cash flowing again. Compared to the alternative -- foreclosure -- loan modification is better in virtually every case. Foreclosure means a big loss and is good for no one.
"We are committed to continuing to be our industry's leader in loss mitigation. It's both good business and the right thing to do -- for everyone involved," he added.
He pointed out that Ocwen has been taking steps to handle a spike in delinquencies since the beginning of the subprime crisis. The company increased its loss mitigation staff by 23% in 2007, and so far in 2008 it has increased staffing again by 50%. Ocwen has also forged alliances with a range of housing advocacy groups as part of its effort to reduce foreclosure, help customers stay in their homes and keep loans performing. In nearly eight out of 10 cases when a customer anticipates trouble making payments or is delinquent, Ocwen is able to work with the homeowner on a solution that lets him or her keep the house and avoid foreclosure.
About Ocwen
Ocwen Financial Corporation is a leading business process outsourcing provider to the financial services industry, specializing in loan servicing, mortgage fulfillment and receivables management services. Ocwen is headquartered in West Palm Beach, Florida with offices in Arizona, California, Florida, Georgia, Illinois and New York, and global operations in Canada, Germany and India. Utilizing our global infrastructure, state of the art technology, world-class training and six sigma processes, we provide solutions that make our clients' loans worth more. Additional information is available at www.ocwen.com.
Forward-Looking Statements
This news release contains forward-looking statements regarding foreclosure prevention strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Important factors that could cause actual outcomes to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: general economic and market conditions, prevailing interest or currency exchange rates, governmental regulations and policies and international political and economic uncertainty, as well as other factors detailed in Company's reports and filings with the SEC, including its periodic reports on Form 10-K for the year ended December 31, 2007, Form 10-Q for the quarter ended March 31, 2008, and Form 8-K. The forward-looking statements speak only as of the date they are made and should not be relied upon. The Company undertakes no obligation to update or revise the forward-looking statements.