In 2010, Ocwen ranked fourth in subprime mortgage servicing, at $56 billion in volume. That was behind American Home Servicing ($78 billion), Bank of America/Countrywide ($82 billion) and Chase Home Finance ($90 billion).
Ocwen claims its recent acquisition activity will catapult its volume to close to $100 billion per year.
During the quarter, Ocwen acquired Litton Loan Servicing from Goldman Sachs
Ocwen mortgage modifications totaled 16,825 during the second quarter, down 31% from the previous quarter. However, nonperforming loans and REO as a percentage of its serviced unpaid principal balance declined 50 basis points to 24.2%. Faris said had the firm not boarded the highly delinquent subservicing portfolio, the drop would have been a full percentage point.
“Upon closing the Litton acquisition, Ocwen will become the largest non-prime servicer,” said Ocwen Chairman William Erbey. “The company is well-positioned to take advantage of unique growth opportunities offered by continued consolidation of private-label servicing and increased demand for special servicing.”