Ocwen Financial Adopts Hope Now Alliance's Guidelines for Distressed Homeowners

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.