subprime mortgage loans shows decline in delinquencies

One of the nation’s leading subprime mortgage servicers reports that delinquencies on the subprime mortgages it handles flattened or declined this summer, in large measure due to its technology-enhanced loan modification program.

The finding represents a ray of hope in the subprime crisis and suggests a practical approach to keeping homeowners in their homes and protecting lenders’ and investors’ income.

According to Ocwen Financial Corp., a leading servicer of subprime mortgage loans, delinquency rates in every category (60, 90 and 90+ days) have either declined or remained flat over the last three months. This is the first sign of stability in Ocwen-serviced loans since the inception of the subprime crisis in 2007. Ocwen’s portfolio covers a significant portion of the subprime market - through its subsidiary, Ocwen Loan Servicing, LLC, the company services approximately 350,000 mortgages, about 85% of which are subprime.