The groups, many of them non-profit neighborhood housing services, work with servicers and lenders to help keep people in their homes, and all cite Ocwen Financial as an industry leader in promoting principal reductions and loan modifications for strapped borrowers.
At the same time, Ocwen has been accused by BlackRock MetLife and PIMCO of neglecting its obligations as a servicer by failing to collect $82 billion in home loans, resulting in costing bond investors $26 billion. Ocwen said the charges are baseless, and accused the investors of having a pro-foreclosure, anti modification agenda.
In their letter to the federal agencies, the group, citing Ocwen’s Shared Appreciation Modification Program, says, “This pro-foreclosure campaign by certain investors contradicts the foundation of the 2012 National Mortgage Settlement negotiated by the U. S. Justice Department and Attorneys General in 49 states. The NMS specifically requires banks and other mortgage market participants to participate in meaningful engagement with community organizations and to develop foreclosure prevention programs, including principal reduction modifications.” ##
(Image credit: mortgageloanrealtor)
