Ocwen: Industry Needs to Address Foreclosures

Servicers, community groups, investors, and investment banks should work together to help subprime borrowers who can't afford their current loans and can't find new financing, a major subprime servicer has told a congressional panel.Ocwen Financial Corp. vice president William Rinehart testified that the recent underwriting and product changes in the subprime market will be beneficial and will reduce early defaults on new loans. However, the changes dictated by investors and regulators will make it more difficult for existing subprime borrowers to "fix their current problems," he warned. "Ocwen and other servicers, [community groups], investors and investment banks must work together to help these homeowners already facing difficulties," Mr. Rinehart said. Ocwen, based in West Palm Beach, Fla., is the sixth-largest subprime servicer, according to NMN's Quarterly Data Report.