Ocwen, SunTrust Making Progress On National Mortgage Settlement

Posted by Patrick Barnard on April 08, 2015 No Comments
Categories : Mortgage Servicing

Ocwen Financial, party to the national mortgage settlement, helped 21,257 borrowers obtain mortgage modifications during the fourth quarter of 2014, according to an update from Joseph A. Smith Jr., monitor for the settlement.

In addition, the national servicer granted or offered another 284,089 borrowers a trial plan.

Ocwen also distributed consumer relief totaling $1.9 billion, which, on average, represents about $91,093 per borrower, during the fourth quarter, according to Smith's update.

Although the company seems to be doing well in terms of meeting its obligations under the settlement, Smith says he continues to investigate Ocwen's compliance with certain aspects of the 2012 suit. Specifically, Smith says he and an independent professional firm are conducting an investigation into issues found with Ocwen's internal review group and letter dating practices.

‘I am encouraged by Ocwen's consumer relief progress, but I continue to investigate issues of potential non-compliance with the [settlement's] servicing standards,’ Smith says in a statement, adding that this was only Ocwen's second report on its progress. ‘My team and I take this matter seriously, and this investigation is ongoing. I will report my findings later this spring.’

Meanwhile, SunTrust, which is also a party to the settlement, provided relief to 6,139 borrowers in the fourth quarter.

Specifically, 49 borrowers received first lien modification forgiveness totaling approximately $6 million, which, on average, represents about $123,602 per borrower.

In addition, more than 3,000 borrowers received new loans from the bank. These borrowers are either first-time home buyers, live in hardest-hit areas or previously lost a home to foreclosure or short sale.

As of press time, Smith had not confirmed the numbers provided by the companies.

‘This is SunTrust's first report on its progress toward fulfilling its $500 million obligation under the national mortgage settlement,’ Smith says in a statement. ‘This data is gross and self-reported, and my team and I are in the process of crediting SunTrust's consumer relief progress.’

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