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Major Servicer Launches New Loan Mod Product to Assist Underwater Mortgage Holders

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Ocwen Financial Corporation has launched a new loan modification program designed to help distressed homeowners who owe more than their houses are worth and, at the same time, mitigate the likelihood of "rewarding" borrower delinquency. Ocwen's Shared Appreciation Modification (SAM) program reduces delinquent customers' principal owed, but also compels them to share some of the appreciation with the mortgage's owner, not the servicer, if the house increases in value by the time they sell or refinance it. Ocwen launched the SAM program on a pilot basis last year.Click to continue