Ocwen Financial Corporation, through its subsidiaries, operates as a financial services holding company. The company engages in servicing and originating mortgage loans in the United States (U.S.). Segments The company operates in two segments, Servicing and Lending. Servicing This segment primarily comprises the company’s core residential mortgage servicing business. The company’s servicing clients include major financial institutions in the U.S., including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (each, an Agency or, collectively, the GSEs), the Government National Mortgage Association (Ginnie Mae) and non-agency residential mortgage-backed securities trusts. The company services a small portfolio of commercial loans. Servicing involves the collection and remittance of principal and interest payments received from borrowers; the administration of mortgage escrow accounts; the collection of insurance claims; the management of loans that are delinquent or in foreclosure or bankruptcy, including making servicing advances, evaluating loans for modification and other loss mitigation activities, and if necessary, foreclosure referrals; and the sale of the underlying mortgaged property following foreclosure (real estate owned) on behalf of investors or other servicers. Master servicing involves the collection of payments from servicers and the distribution of funds to investors in mortgage and asset-backed securities and whole loan packages. Lending This segment originates and purchases conventional (conforming to the underwriting standards of the GSEs, collectively agency loans) and government-insured (insured by the Federal Housing Authority or Department of Veterans Affairs (VA)) forward mortgage loans through the correspondent, wholesale and retail lending channels of its Homeward Residential, Inc. (Homeward) operations. After origination, the company generally packages and sells the loans in the secondary mortgage market, through GSE and Ginnie Mae guaranteed securitizations and whole loan transactions. The company typically retains the associated MSRs, providing the Servicing business with a source of new MSRs to replenish its servicing portfolio and partially offset the impact of amortization and prepayments. The company’s forward and reverse correspondent lending channels purchase mortgage loans that have been originated by a network of approved third party lenders. The company originates loans through a network of approved brokers. It originates forward and reverse mortgage loans directly with borrowers through its retail lending business. Its retail lending business utilizes its significant portfolio of borrowers being serviced to originate refinanced loans. The company provides customary origination representations and warranties to investors in connection with its loan sales and securitization activities. The company receives customary origination representations and warranties from its network of approved originators in connection with loans it purchases through its correspondent lending channel. The company recognizes the fair value of the liability for its representations and warranties at the time of sale. Its lending business provides it the opportunity to expand into new markets and offers new products, prime loans that exceed the GSE limits (jumbo loans) or non-agency loans, as market and investor demand develops in that product segment. New Lines of Business Automotive Capital Services (ACS) In 2015, the company launched its ACS business on a pilot basis in two markets in Florida. ACS makes short-term inventory-secured loans to independent used car dealers to finance their inventory. Loans are typically outstanding for 30 to 60 days and structured as lines of credit on which the dealerships could draw to finance inventory purchases. The company anticipates that ACS could provide meaningful growth and income diversification in future periods. Liberty Rental Finance Through Homeward, Liberty Rental Finance has entered the rental property finance market. The business would provide mortgage loans to investors interested in purchasing foreclosed properties or refinancing existing rental properties for the purpose of improving financing terms. Regulation The company’s business is subject to extensive regulation by federal, state and local governmental authorities, including the Consumer Financial Protection Bureau, the Department of Housing and Urban Development, the U.S. Securities and Exchange Commission, and various state agencies that license, audit and conduct examinations of the company’s mortgage servicing, origination and collection activities. The government sponsored entities and their conservator, the Federal Housing Finance Authority, Ginnie Mae, the U.S. Treasury Department, various investors, non-Agency securitization trustees and others also subject the company to periodic reviews and audits. The company must comply with various federal, state and local consumer protection laws, including among others, the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act, the Truth in Lending Act, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Equal Credit Opportunity Act, the Wall Street Reform and Consumer Protection Act and state foreclosure laws. History Ocwen Financial Corporation, a Florida corporation, was founded in 1988.
ocwen financial corp (OCN:New York)
1661 Worthington Road
West Palm Beach, FL 33409
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