WEST PALM BEACH, Fla., Sept. 9, 2003 (PRIMEZONE) -- Ocwen Financial Corporation (NYSE:OCN), a residential mortgage loan servicer, and The Department of Veterans Affairs (VA) announced today that Ocwen Federal Bank FSB, a subsidiary of Ocwen, has been awarded the contract for the management, marketing and sales of all VA Real Estate Owned (REO) properties located throughout the United States and its territories. The contract period is for 11 months with four one-year extensions at the VA's option. During the contract Ocwen will manage approximately 12,000 properties per year. Ocwen's expected revenue will range from $95 million to $125 million over the life of the contract.
"We are excited to be given the opportunity to assist with the management, marketing and sales of the VA's residential properties. With this new servicing partnership, Ocwen will now be one of the largest servicers of REO properties in the United States. Ocwen looks forward to an ongoing partnership with the VA," said Michael K. Short, Vice President of Business Development and Investor Relations for Ocwen Financial Corporation. "We believe the VA will benefit from Ocwen's REO experience and our proven technology."
"We, too, look forward to this new partnership with Ocwen," said Keith Pedigo, Director for the Department of Veterans Affairs Loan Guaranty Service. "Our goal in contracting out the management of VA acquired properties is to ensure that we make the most effective use of taxpayers' money."
"As a result of Ocwen's substantial investment in servicing technology, we are able to manage mortgage loans and residential properties in a very efficient manner," said Ronald M. Faris, President of Ocwen Federal Bank FSB. "Our primary goals for this important partnership are to:
-- Obtain the highest possible return in the shortest amount of
time on each VA asset we manage,
-- Promote Small, Small Disadvantaged, Women-owned and
Veteran-owned businesses through subcontractors as part
of the contract, and
-- Promote equal housing opportunities for all people," said
Mr. Faris.
Ocwen Financial Corporation is a financial services company headquartered in West Palm Beach, Florida. The Company's primary business is the servicing and special servicing of nonconforming, subperforming and nonperforming residential and commercial mortgage loans. Ocwen also specializes in the development of related loan servicing technology and software for the mortgage and real estate industries. Additional information about Ocwen Financial Corporation is available at www.ocwen.com.