Ocwen Wins New Technology Patent for Innovative E-Commerce
Invoicing System
Technology -- Developed In-House -- is Key to Ocwen's Approach;
Data Systems are Used to Flag Risks, Modify Loans and
Prevent Foreclosures
WEST PALM BEACH, Fla., Sept. 23, 2008 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE:OCN), a leading subprime mortgage servicer, has received a patent for a sophisticated e-commerce invoicing system it uses to streamline the complex task of managing real-estate owned (REO) properties.
Ocwen was granted a patent on August 12, 2008 by the U.S. Patent and Trademark Office for its REALRemit(r) electronic invoice management system. The system manages the invoicing and expenses -- often issued by hundreds of third-party vendors -- that are generated when a foreclosed or vacated property is put up for sale. It allows Ocwen, and third-party licensees of REALRemit system, to manage expenses, track costs and generate the best possible outcome for mortgage lenders and investors. While designed for real-estate management, REALRemit system can be used in any complex e-commerce setting where the coordination of multiple vendors and cost items is required.
Ocwen Relies on Technology to Manage and Modify Loans and Prevent Foreclosures
Ocwen relies on technology -- largely developed in-house -- to manage its large and challenging subprime portfolio, which includes approximately 350,000 mortgages with an aggregate unpaid balance of $44 billion. Ocwen's proprietary software and expert systems allow Ocwen to identify and reach at-risk borrowers, structure highly customized payment plans and loan modifications and prevent foreclosures -- keeping homeowners in their homes and preserving income for lenders and investors.
REALRemit System Is Designed for REO Sales and Other High-Volume Transaction Environments
REALRemit System was developed by an Ocwen team led by the firm's Chairman, William C. Erbey. It has broad business-to-business applications and is one of many technology products the company offers to third parties through its knowledge-based business process outsourcing business line, Ocwen Solutions. According to Mr. Erbey, "Subprime servicing is a high-volume transaction processing business. We developed REALRemit system to more efficiently manage all of our intricate e-commerce activity with the many thousands of third party vendors in our distributed network. We believe it will add value and extend our leadership in that arena and in others."
REALRemit System Automates and Streamlines Complex REO Transactions
The REALRemit patent applies broadly to both a system and a method for expense tracking, electronic ordering, invoice presentment and payment. "The essence of the innovation is that it enables the user to receive and process third-party vendor invoices with automated controls, thereby eliminating manual work, cycle times and errors in the process," said Shekar Sivasubramanian, Ocwen's Chief Information Officer and President of Ocwen Solutions' Technology Products segment.
The patented technology, while it has many potential applications, was originally designed for the sale and management of real estate owned properties (REO). In that setting, REALRemit system creates a budget for the property, detailing expected costs associated with its management and eventual sale. A work order is created for each budgeted line item and provided to a vendor for completion. Upon verification that the invoiced price is within the approved work order price (or a pre-set price limit), the invoice is electronically presented and approved and payment is automatically effected through the ACH system.
REALRemit System is One of Many Ocwen-Developed Technologies
REALRemit system is one of several technologies comprising Ocwen's proprietary REAL suite of products, including REALTrans(r) Platform, a Web-based solution that automates and simplifies ordering, tracking and fulfilling real estate products and services, REALServicing(r) Loan Servicing Software, the only commercially available solution designed and developed by a mortgage servicer and the first enterprise-level loan servicing solution that spans the entire life cycle of the loan and REALSynergy(r) Loan Servicing Software, a highly automated, full-feature platform for servicing commercial and multifamily loans.
"I work with numerous banks and many different REO invoice management systems," said real estate broker Allison Roderick of Realty Executives in The Woodlands, TX. "I have found REALRemit system and REALTrans platform to be very user friendly. Not only do you get notifications on when work orders are submitted but also other updates on work orders such as late notices and cancellations. You can easily input numerous files such as photos for each invoice. For agents, the key to any invoice management system is one that is easy to use and Ocwen's technology fits that bill perfectly!"
Ocwen recently announced that delinquency rates in the portfolio of subprime mortgages it services have declined or remained flat -- in every category -- for the first time since the onset of the subprime crisis in 2007. Ocwen attributes this significant improvement -- distinct in the industry -- to the company's sophisticated approach to modifying loans. This approach relies heavily on proprietary, Ocwen-developed technology which recently was recognized by Mortgage Technology Magazine as among the "Top 50 Mortgage Technology Providers" for 2008.
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.