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Contact: Gail Schechter Interfaith Housing Center of the Northern Suburbs Phone 847-501-5762, x 406 Fax 847-501-5722 |
620 Lincoln Ave. Winnetka, IL 60093 Phone 847-501-5760 Fax 847-501-5722 |
Interfaith Housing Center of the Northern Suburbs |
Press Release
Interfaith Joins in Partnership to Preserve Homeownership
Ocwen Financial Signs Foreclosure Prevention Agreement
Winnetka, IL, March 8, 2005:
The Interfaith Housing Center of the Northern Suburbs and Ocwen Financial Corporation recently signed a precedent-setting agreement designed to help prevent home mortgage foreclosures involving this sub-prime lender. Interfaith is among ten organizations nationally who signed on to the agreement as an affiliate of the National Training and Information Center (NTIC). NTIC is a 33-year-old Chicago-based non-profit that serves as a resource center for grassroots and neighborhood groups.Ocwen is a multi-billion dollar financial services holding company, handling 320,000 home loans across the U.S. Many of these loans are in low- and moderate-income neighborhoods. As part of the partnership, Interfaith and Ocwen agreed to:
– Help borrowers resolve problems with their home loans.
– Assist servicing customers who, prior to becoming Ocwen customers, may have been impacted by questionable loan origination practices, such as loan steering, single-premium credit insurance, excessive points and fees, loans with balloon payments and other practices that are not in the best interest of borrowers.
– Meet semi-annually to discuss the progress of the agreement and make any necessary changes.
In addition, Ocwen will continue to properly maintain and resell vacant properties to responsible real estate companies, will institute an appeal process for problem loans, will upgrade its payment acceptance policy, and will grant appropriate customer service employees greater power to help consumers. Ocwen executives will also visit Interfaith and other participating NTIC affiliate organizations in coming months. The agreement was signed Feb. 25 at Ocwen corporate headquarters in West Palm Beach, Fla.
In 2004, Interfaith helped a 40-year Evanston resident who had been in her home for 23 years to avoid losing her home to an Ocwen foreclosure. Rita Askew had refinanced her mortgage in 1999 to pay some debts. Because of unscrupulous practices by the lender, Ms. Askew was confused about her payment amounts and ended up with payments that amounted to 80% of her income. Thanks to the intervention of Michele Rodriguez Taylor, then on the Interfaith staff, who immediately contacted the lender, Ms. Askew’s monthly mortgage payment was reduced by over 47% and the lender agreed to reduce her interest rate by nearly 4 points. Most importantly, the complainant and her family are able to stay in their home.
In addition to the Ocwen agreement, NTIC has similar agreements with CitiFinancial and Fairbanks. (Another agreement by an NTIC affiliate in Iowa, with Ameriquest, does not apply to Illinois). If you or anyone you know is having difficulty paying your mortgage with any of these lenders, call Interfaith at (847) 501-5760.