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Ocwen Wins VA Contract.(Ocwen Federal Savings Bank signs deal with the Department of Veterans Affairs )(Brief Article)
Ocwen Federal Savings Bank has tentatively won the bidding for a Department of Veterans Affairs' contract to take over the management and sale of VA-foreclosed houses.
However, the award of the contract is being challenged by a union representing VA employees who stand to lose their jobs if a private firm takes over the agency's REO operation. (REO stands for real estate-owned.)
Ocwen is based in West Palm Beach, Fla., and it specializes in servicing nonperforming loans and managing REO. The company could not be reached for comment.
The appeals process should be completed in a few weeks, according to Keith Pedigo, the director of VA's loan guaranty program.
"So probably around the last part of April we may know with certainty whether that (REO) function gets contracted out or stays in-house," he said.
The VA home loan program has a full-service operation for dealing with over 20,000 foreclosures a year.
This REO ...
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