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

The Goldman Sachs Group Inc. has announced that it has agreed to sell Litton Loan Servicing to Ocwen Financial Corporation for approximately $264 million. The sale price does not reflect certain assets that Goldman Sachs will retain. Goldman Sachs does not expect the sale to have any material impact on earnings in the second quarter due to the combination of the sales price and the impairment charge announced in the first quarter of 2011 primarily related to Litton.Click to continue

Prommis Solutions LLC, a provider of default processing services, has announced that it has appointed Ed Hill as senior vice president of trustee services. Hill brings to Prommis more than 25 years of mortgage servicing experience. In his new role, Hill will provide executive leadership for Prommis subsidiaries Cal-Western Reconveyance Corporation, Reliable Posting & Publication Company and Interface Inc. In addition to leading the strategic growth of these companies, Hill will interact directly with their leading clients to ensure the highest level of service and satisfaction.Click to continue

“Litton Loan Servicing has suspended foreclosure proceedings in certain cases while it completes a review of its procedures,” Donna Marie Jendritza, a spokeswoman for Litton, said in an e-mailed statement.