Ocwen to Sell $9.6 Billion Mortgage Servicing Portfolio to Walter Subsidiary

Ocwen Financial Corporation (NYSE: OCN) continues to rapidly unload mortgage servicing rights (MSRs), today announcing plans to sell a $9.6 billion to a subsidiary of Walter Investment Management Corp. (NYSE: WAC).

The company signed an agreement with Green Tree Loan Servicing LLC, a wholly owned Walter subsidiary, to sell the portfolio consisting of approximately 55,500 performing loans owned by Freddie Mac. 

Subject to a definitive agreement, as well as approvals by Freddie mac and the Federal Housing Finance Agency, Ocwen expects the transaction to close by April 30, and the loan servicing to transfer the following month in May.

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“We are pleased with the process we are making on executing our plan,” said Ocwen CEO Ron Faris in a written statement. “Over the next several months, we expect to generate proceeds of at least $650 million from sales and transfers of mortgage servicing rights. We are also committed to ensuring a smooth and accurate transfer of information to the buyers of these mortgage servicing rights.”

The deal with Green Tree is the latest in a series of MSR sales from Ocwen, who it was reported just yesterday sold a $45 billion portfolio of  277,000 Fannie Mae-owned loans to JPMorgan Chase & Co. (NYSE: JPM).

Last month, Ocwen—the parent company of Liberty Home Equity Solutions—sold a $9.8 billion portfolio to Nationstar Mortgage Holdings, Inc. (NYSE: NSM), which consisted of approximately 81,000 Freddie Mac-owned performing loans.

In an update to shareholders on March 2, the company stated that unloading MSRs over the next several months will “accelerate Ocwen’s strategy to reduce the size of its agency servicing portfolio.”

Written by Jason Oliva

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