Ocwen Begins MHA Modifications

me loan servicer Ocwen Financial Corp. says it has begun executing loan modifications under the U.S. Treasury Department's Home Affordable Modification (HAM) program. The company's decision to move forward with HAM mods was made even though form servicing contracts, which the Treasury mentions in its guidelines, have not yet been provided, according to a press statement. West Palm Beach, Fla.-based Ocwen, which increased staffing by over 65% since the foreclosure crisis hit, [u][link=http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.3335]joins Bank of America[/link][/u] as one of the few major servicers to have announced their active participation in the Making Home Affordable (MHA) plan. Bank of America recently began refinancing mortgages through the MHA program, and the company says it plans to begin offering trial mods in the next two weeks. Ocwen has invested more than $100 million in default management technology in the past decade, which the company says allowed it to quickly adapt its servicing practices to the MHA guidelines. The program guidelines are "very similar" to the company's customized modification approach, according to CEO William C. Erbey. In a letter to President Obama, Erbey wrote that Ocwen shares the administration's view that loan modifications are "the key for a lasting solution to the daunting foreclosure crisis." SOURCE

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