PHH Mortgage Corporation (“PHH” or the “Company”), a subsidiary of
Ocwen Financial Corporation (NYSE: OCN) and a leading non-bank
mortgage servicer and originator, today announced key servicing
performance results of its subservicing relationship with Sierra
Pacific Mortgage Company (“Sierra Pacific”), a nationwide direct
lender.
In the third quarter of 2021, Sierra Pacific
selected PHH as its mortgage subservicer, following a rigorous
selection process, and transferred a portfolio of approximately
54,000 loans with a UPB of $15 billion to PHH in December of 2021.
Through the first six months following the transfer, Sierra Pacific
realized significant gains across the board, including:
- 75% reduction in customer complaint volume
- 70% reduction in the number of calls requiring customer service
escalation (average calls are being answered by PHH in less than 18
seconds)
- 18% decline in one-time payments and a 22% increase in
scheduled ACH payments
- 60% savings in Sierra Pacific’s servicing oversight costs, as
fewer resources are required to handle overflow complaints and
manage the PHH subservicing relationship
Additionally, PHH expects its deep experience in
special servicing and loss mitigation could reduce loss severity on
Sierra Pacific’s portfolio by as much as $2 million annually.1 This
level of cost savings is based on the Company’s strong operational
performance in managing defaulted loans versus Moody’s and MBA
benchmarks. PHH’s proven special servicing capabilities and track
record of helping distressed customers is creating opportunities to
support its clients through a difficult mortgage cycle and possible
recession.
Curtis Dair, Chief Financial Officer at Sierra
Pacific, said, “PHH has shown an unwavering commitment to providing
the highest levels of customer service. We have been very pleased
with their early results and their ability to meet our
expectations. Their dedication to their customers is exceptional,
and they have met the high standards that Sierra Pacific has for
its servicing partners.”
Scott Anderson, Executive Vice President and Chief
Servicing Officer at PHH, said, “What sets PHH’s subservicing
platform apart is our ability to really understand our clients’
business needs and pain points to then work together to provide a
solution that achieves their objectives. By delivering on our
commitments for valued partners like Sierra Pacific, we’ve been
able to not only offer improved servicing performance, but also
enhance their business in multiple areas. Mortgage originators are
realizing immediate cost savings and performance gains when
switching to the PHH servicing platform. We believe our ability to
deliver best-in-class servicing, recapture, and capital markets
performance is solidifying our position as the premier subservicer
in the industry.”
As of the fourth quarter of 2022, the Company has
added more than $110 billion of new subservicing UPB over the past
twenty-four months and is scheduled to onboard another $18 billion
of subservicing UPB in the first half of 2023. Earlier this year,
PHH was recognized for servicing excellence for the third
consecutive year through Freddie Mac’s Servicer Honors and Rewards
Program (SHARP)SM in the top-tier servicing group and for the
second consecutive year through Fannie Mae’s Servicer Total
Achievement and Rewards (STAR)TM performer recognition. The Company
also achieved HUD’s Tier 1 servicer ranking. No other servicer in
the U.S. has been more highly decorated with these top awards from
all three agencies over the past two years.
About Ocwen Financial
Corporation
Ocwen Financial Corporation (NYSE: OCN) is a
leading non-bank mortgage servicer and originator providing
solutions through its primary brands, PHH Mortgage and Liberty
Reverse Mortgage. PHH Mortgage is one of the largest servicers in
the country, focused on delivering a variety of servicing and
lending programs. Liberty is one of the nation’s largest reverse
mortgage lenders dedicated to education and providing loans that
help customers meet their personal and financial needs. We are
headquartered in West Palm Beach, Florida, with offices and
operations in the United States, the U.S. Virgin Islands, India and
the Philippines, and have been serving our customers since 1988.
For additional information, please visit our website
(www.ocwen.com).
About Sierra Pacific Mortgage
Sierra Pacific Mortgage Company, Inc. is a leading
national independent mortgage lending company based in Folsom,
California. Sierra Pacific serves the retail and wholesale mortgage
banking markets in 49 states through three regional fulfillment
centers. Our mission is to deliver consistent, competitive pricing
and to provide our customers the finest experience through
streamlined systems, the best industry tools, effective
communication, and superior customer service with every branch,
every day. To learn more, visit www.spmc.com or call (916)
932-1700.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements may be
identified by a reference to a future period or by the use of
forward-looking terminology. Forward-looking statements are
typically identified by words such as “expect”, “believe”,
“foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”,
“plan” “target” and “project” or conditional verbs such as “will”,
“may”, “should”, “could” or “would” or the negative of these terms,
although not all forward-looking statements contain these words,
and includes statements in this press release regarding the ability
of PHH to provide future cost savings and performance improvements
to Sierra Pacific and other PHH subservicing clients.
Forward-looking statements involve a number of
assumptions, risks and uncertainties that could cause actual
results to differ materially. In the past, actual results have
differed from those suggested by forward looking statements and
this may happen again. Important factors that could cause actual
results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, changes
in the business condition of Sierra Pacific, changes in market
conditions, the industry in which we operate, and our business, the
actions of governmental entities and regulators, developments in
our litigation matters, and other risks and uncertainties detailed
in our reports and filings with the SEC, including our annual
report on Form 10-K for the year ended December 31, 2022 and any
current report or quarterly report filed with the SEC since such
date. Anyone wishing to understand Ocwen’s business should review
our SEC filings. Our forward-looking statements speak only as of
the date they are made and, we disclaim any obligation to update or
revise forward-looking statements whether as a result of new
information, future events or otherwise.
For Further Information
Contact:
Dico Akseraylian, SVP, Corporate
Communications(856) 917-0066mediarelations@ocwen.com
____________________1 Estimated loss severity
calculation of Sierra Pacific’s subserviced portfolio represents
losses avoided when comparing PHH to other servicers and is derived
from an internal PHH model based on total UPB serviced, total loans
serviced, overall portfolio delinquency, loss severity percentage,
and other assumptions.
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