Ocwen reduces principal on old Saxon mortgages

Billions in mortgages once handled by Saxon Mortgage Services received more principal write downs since Ocwen Financial Corp. ($26.24 -0.02%) took over the portfolio.

Ocwen, now the largest subprime servicer in the U.S., completed its October 2011 acquisition of Saxon from Morgan Stanley ($17.08 0.83%) in April 2012.

More than $22 billion in mortgages transferred through the deal.

Just 11% of all modifications done on these loans included a principal reduction as of May. But in the three months since, Ocwen wrote down principal on 56% of modifications on Saxon loans, according to Laurie Goodman, chief analyst at Amherst Securities.

Read on.

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