This is a disturbing data error by Ocwen as Master Servicer

Here is last Friday’s Commentary. With the long holiday weekend, we delayed distributing it as we assumed no one would be around to read it.

In our attempt to determine whether servicers are correctly passing through to the trust deferred debt collected at payoff or liquidation, we discovered this disturbing data error by Ocwen as master servicer (fka as RFC).

Good News: We believe Ocwen as master servicer is correctly passing through to investors the deferred debt that was collected at payoff or liquidation.

Bad News: Ocwen as master servicer is associating the recovery to the wrong loan but fortunately in the same pool. Therefore, we believe the cash flows are correct but your loan level data is not. We further believe that this affects every loan where any deferred debt was recovered. Therefore, any severity, modification or loss recovery analysis done with loan level data will be distorted. Investors will never know which loans had any recovered deferred debt.

As we have downloaded the data directly from Ocwen Vision, Ocwen’s master servicing website, we know it is an issue with them. In many instances, we have seen that Ocwen REALPortal (the servicer) has the deferred debt associated with the correct loan. Therefore, any data provider that depends on this loan level data from Ocwen Vision will have bad data. This includes CoreLogic, Bloomberg and Intex. We have attached a spreadsheet with actual data and examples so you can see the problem for yourself. This is the first time we have seen a servicer or master servicer mix up data between loans. It is frightening to think what other data issues exist with the Ocwen Vision data that we have yet to uncover. We will contact Ocwen in Glendale CA and provide them with our research.

Ocwen Loan Servicing, LLC, 801 N. Brand Blvd., Ste 650, Glendale, CA 91203, 818.260.1400,

www.vision.ocwen.com This is the old RFC Master Servicing website. It is not Ocwen REALPortal.