If your mortgage company is Ocwen Financial Corporation, there is a good chance that you have a risky "subprime" mortgage. According to a Feb. 27, 2014 New York Times article, Ocwen services one out of every four subprime mortgages in the United States.
A mortgage servicer is a company to which borrowers pay their mortgage payments and that performs other services in connection with mortgages. Many homeowners confuse their servicer with their lender, which could be the same but often isn't. Most mortgages are owned by institutional investors such as Fannie Mae, FHA, and private investors through securitized trusts.
According to the article, Ocwen has been criticized for sloppy paperwork, erroneous fees and inadequate customer support. Lord knows many of our clients have been frustrated by calling Ocwen for help and being greeted by a customer service rep in Mumbai, India that they can barely understand.
But the article also quotes Bruce Marks of NACA as saying that Ocwen provides them with more principal reduction loan modifications than any other servicer.
The gist of the article is that Ocwen is growing very fast, buying up more and more mortgage servicing rights ("MSR's"), and they are not subject to the same regulatory control as if they were a bank, like Wells Fargo and Bank of America, who also service mortgages.
Quite a few of our clients in our Houston bankruptcy law office have disputes with Ocwen, and we regularly bring court actions against them in U.S. Bankruptcy Court in Houston and Galveston. In our experience, among other complaints, Ocwen often doesn't file Proofs of Claim in the chapter 13 cases, and they won't prepare the Reaffirmation Agreements in chapter 7 cases.