economic

Richfield’s Economic Development Authority Authorizes Second Round Of Coronavirus Small Business Forgivable Loans

September 30, 2020

Since the outbreak of the COVID-19 pandemic, 1.4 million small businesses have either closed of suspended operations according to a study by Oxxford Information Technology Ltd. It is expected that as many as four million small businesses could be forced to shut down permanently by the end of the year, or about 13 percent of the country’s small businesses.

Richfield’s Economic Development Authority (EDA) is doing everything it can to provide financial assistance to the city’s small businesses as they try and weather the global health crisis. The authority has authorized a second round of small business forgivable loans.

“Businesses of all shapes and sizes are seeing a drastic reduction in income during the COVID-19 pandemic,” explained Richfield Chamber of Commerce Chairman Greg Worthen. “Richfield was one of the first cities in Minnesota willing to help its small businesses through this crisis in the form of a forgivable loan program. The program shows we are a business-friendly community.”

Due to the ongoing nature of the pandemic and its impact on revenue, some Richfield business owners have reached out to the authority to express their concerns about their business’s long-term financial viability.

At the authority’s September 21 meeting, the group dedicated another $118,000 for small business forgivable loans. The EDA Executive Director John Stark estimates that this will provide financial assistance for between 25 and 30 businesses.

“I applaud Richfield’s small businesses for finding new and creative ways of operating during the pandemic,” said Stark. “However, in these uncertain financial times, they still need help.”

Details of the Small Business Assistance Forgivable Loan Program include:

  • $2,500 for the first employee and $500 for each additional employee up to $7,500
  • Available to for-profit businesses that have operated in Richfield for at least one year
  • Applicants must be registered with
Continue Reading

How one mortgage servicing company is prioritizing home retention during economic uncertainty

Nearly two years ago, Ocwen acquired PHH Corporation, and Glen Messina became the president and CEO of the newly combined companies. Today, Ocwen Financial Corporation is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. HousingWire spoke with Messina on the progress that’s been made in reshaping the mortgage servicer and originator, its evolving business model and its progress in turning around the company.

HousingWire: How does the Ocwen of today compare to the companies that merged two years ago?

headshot

Glen Messina: The Ocwen of today is a different organization, and I believe we are stronger, more efficient and more diversified. We’ve transformed the business to be both a lender and servicer, and our originations business is growing at a very fast clip to keep up with demand.

In servicing, we are one of the largest and most experienced special servicers, managing more than 1.3 million borrowers, thousands of investors and more than 100 subservicing clients. At the end of Q2, we serviced more than $206 billion in UPB.

On the originations side, we’ve built a scalable, multi-channel lending platform that has grown volume by 16X in just the past year. In August, we originated more than $2.5 billion in loans and flow MSRs, which puts us at an annual run-rate of $30 billion.

One thing that hasn’t changed is our commitment to our customers – helping homeowners is one of our guiding principles and our mission is focused on creating positive outcomes for homeowners, communities and investors.

Financially, we are in the final stages of arguably the most significant turnaround in the mortgage industry – our profitability is improving, our originations business is rapidly growing and our strong subservicing and special servicing capabilities position us very well to continue

Continue Reading