Collections: Ocwen Offers to Manage REO and Asset Recovery for Lenders.(Brief Article)

Ocwen Financial Corp. here, a leading servicer and subservicer of commercial and non-performing mortgage loans, this fall launched its Asset Recovery and REO Management Services groups, two specialized divisions within the company that will be made available to third parties.

William C. Erbey, chairman and chief executive officer, said, "These new offerings represent Ocwen's commitment to providing an array of products and services that meet the individual needs of each and every one of our clients."

He added, "We are essentially unbundling our core servicing processes to enable our customers to select those specific services that create the most value for them.They need servicers who are proven successful in providing quick resolution and a high value of return. We saw it as a natural transition for Ocwen to offer these services to third parties."

According to the company, the Asset Recovery Group services charged-off assets such as high loan- to-value mortgages, mortgage deficiencies and credit card debt. In offering its abilities to third parties, Ocwen will charge servicing fees according to the amount recovered.

John R. Van Cora, director of Business Development, said, "Ocwen is one of the few firms that is able to offer this type of service on a contingency fee basis....Institutions that were once able to sell charged-off assets for 10-to-15 cents on the ...