Ocwen Financial specializes in servicing mortgage loans usually deemed high risk by lenders, according to the company website. High-risk loans include approving customers with poor credit scores and little money for down payments or for jumbo mortgages where the loan amount exceeds $417,000.
Ocwen financial doesn't offer traditional mortgage loans. The company services mortgage loans from banks and lenders who provide the actual financing for customers, the company website states. Servicing a mortgage includes billing customers for their mortgage payments, sending late payment notices and helping customers to modify existing loans that are currently in default. Ocwen works with the government to help customers qualify for the Home Affordable Modification Program, also referred to as HAMP, as of May 2015.
HAMP loans modify current mortgages where borrowers are in default and currently owe more on the house than it's worth. Through a set of guidelines set forth by the U.S. government, Ocwen and other mortgage servicing companies determine whether or not borrowers can modify their current mortgages into new loans with lower interest rates and monthly payments. Borrowers who wish to modify their loans must show a financial hardship that threatens their ability to make timely payments, according to MakingHomeAffordable.gov.