Reverse mortgage servicing may be in the cards for Ocwen, according to several recent statements from the company indicating its interest in the market, including a growing presence as a purchaser and securitization vehicle for Federal Housing Administration loans in general.
While the company has yet to state that it is getting into the business, Ocwen said in its most recent quarterly SEC filing that is looking into becoming a reverse mortgage servicer.
“We also plan on evaluating new segments of the servicing industry such as reverse mortgages and home equity lines of credit and developing capabilities to service these segments,” according to the company’s 10-Q filing this week.
Standard & Poors also alluded to the company’s interest in reverse mortgages in a recent servicer evaluation, published in December 2011. Noting the company’s recent approval as a Ginnie Mae issuer, S&P said the company is actively looking into other products including Home Equity Conversion Mortgages.
“[Ocwen is] looking at possibly servicing other products, such as reverse mortgages, and hired an experienced reverse mortgage consultant to assist with questions regarding technology, policies, etc.,” the evaluation writes.
In its most recent filing, the company also says it is focused on acquiring more Federal Housing Administration loans. A new entity of the company, Correspondent One, purchases loans from mortgage bankers alliance Lenders One, and will soon begin acquiring FHA loans from the alliance as well. Through a co-issue agreement, Ocwen purchases servicing on newly originated loans. The originator sells the loans or issues a GNMA security and transfers servicing to Ocwen.
The company did not respond to an inquiry as to whether it plans to get into the HMBS issuing space as of press time.
Lenders One is active in the reverse mortgage space, and Ocwen is an approved GNMA HMBS issuer.
Written by Elizabeth Ecker