Fitch: U.S. Mortgage Loan Mods Double for Ocwen Post-Streamline HAMP

http://www.reuters.com/article/idUSFit973331

 

The following statement was released by the rating agency) NEW YORK, September 15 (Fitch)

Ocwen Loan Servicing’s (Ocwen) loan modification activity has roughly doubled beginning in July due to the implementation of the Streamline HAMP program, according to Fitch Ratings. Ocwen expects modification activity to remain elevated for several months as a result of the program.

Ocwen expects that the increased cash flow from the successful modifications will outweigh the costs of unsuccessful modifications. Unsuccessful modifications will have longer liquidation resolution timelines and likely higher loss severities than they would have had they not been included in the program.

Effective Jan. 1, 2016, the Streamline HAMP program targets borrowers who meet basic HAMP eligibility criteria and, among others, those who have not completed a HAMP application by the time their loan is 90 days delinquent. The recent spike in modifications is the result of converting borrowers to permanent modification status that were solicited for the Streamline HAMP program beginning in January and have now successfully completed the three-month trial period.

Historically, Ocwen’s loan modification activity has been higher than the industry average for subprime and Alt-A mortgage loans in private label securitizations. Additionally, other servicers have shown a more modest increase in modification activity related to the Streamline HAMP program.

The Streamline HAMP program is in accordance with Supplemental Directive 15-06 issued by the U.S. Department of the Treasury (Treasury) on July 1, 2015 Making Home Affordable Program – Streamlined Modification Process.

Supplemental Directive 15-06 does not apply to mortgage loans that are owned, securitized or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by the Veterans Administration, the Department of Agriculture’s Rural Housing Service or the Federal Housing Administration.

The guidance set forth in Supplemental Directive 15-06 went into effect Jan. 1, and allows participating servicers to offer eligible borrowers a modification that will: –Capitalize accrued interest and escrow advances; –Adjust the interest rate to a fixed amount determined according to a formula provided by the Treasury; –Extend and re-amortize the loan to a 480-month term; and –If necessary, forbear or forgive a portion of the principal balance to bring the post-modification mark-to-market LTV ratio to, or close to, 115%.

The maximum forbearance amount would be 30% of the principal balance including the capitalized amounts. Borrowers who have previously received a permanent HAMP modification may be eligible for a new Streamline HAMP modification.

The Streamline HAMP program includes both owner-occupied and rental properties. Similar to the HAMP Tier I and Tier II programs, eligible borrowers must submit an initial package on or before Dec. 31, 2016 to be evaluated for the Streamline HAMP program, and the effective date of the modification must be on or before Dec. 1, 2017. Fitch will continue to monitor the effectiveness of Ocwen and other servicers of challenged mortgage loans in both government and proprietary modification programs.

In February of this year, Fitch upgraded Ocwen’s U.S. residential mortgage servicer ratings to the ‘3-‘ level, and revised the Rating Outlook to Stable from Positive based on improved governance and operational controls, refocus on private label securities (PLS) servicing, and highly integrated technology environment.

The servicer ratings continue to reflect Ocwen’s high concentration of off-shore servicing operations. Contact: Primary Analyst Thomas Crowe Senior Director +1-212-908-0227 Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004 Secondary Analyst Roelof Slump Managing Director +1-212-908-0705 Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com.

Additional information is available at http://www.fitchratings.com.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM’. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

9 Responses

  1. Mike,

    How can I reach you?

  2. I believe this is about protecting govt pensions at whatever costs to borrower. These banks gambled away peoples retirement monies and lost and i feel this is why they are STEALING OUR homes and all those judges that are ruling against the borrower have been instructed to do so whether lawful or NOT!

  3. Hidc 4months after alleged default. 3 years after trust closed. Indorsement came on note for summary judgement 7 years after loan closed.

  4. So…..
    When are they going to Return our Titles?
    Trust Deeds, Bad Deeds, Wild Deeds
    & No liens.
    Just Clouded &, Encumbered …
    Some just outright Slandered!

  5. Did you pay the land taxes?
    None of that matters if you didn’

    P.S. … NO TRUSTS!!!
    But if they claim there is/was……. 😀

    HIDC, Instrument recieviec without notice of claim.

  6. Ocwen is a nightmare. They will pursue foreclosure at all costs. They will not modify in good faith at all. I’ve been foreclosed by them with fraudulent documents, dual tracked, hearsay, claiming they were servicer for deutsche while producing no power of attorney in discovery requests and an note payable to quicken. And a assignment of mortgage assigned by an employee of previous servicer. The appellate court still ruled in their favor even though the affidavit from ocwen servicer said the trust was owner. They found standing in ocwens affidavit business records even though there was nothing from Deutsche. Pure bias. The judges said it didn’t matter whether they were a holder or nonholder without commenting on their claim they were a holder in due course. They stayed away from talking about Aom even though we produced evidence of robo signed docs. They even found their figures to be right even though they were based on an amount higher than the note. I’m disgusted with the decision from the New Jersey judicial system. They couldn’t find one wrong material fact. The unindorsed note should have been enough.

  7. Supplemental Directive 15-06 does not apply to …?
    SUPPLEMENTAL DIRECTIVE 15-06 DOES NOT APPLY TO….?

    P.S.. . No they can’t read either.

  8. Wow, what a revalation! What idiots! Took way too long for this bank to figure out its better to work with customer than against them. Hey JP Morgan Chase, are u reading this you stupid morans or can u read?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: