Ocwen (OCN) buys reverse mortgage service platforms and REO
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Ocwen Financial CorporationOCN’s wholly owned subsidiary, PHH Mortgage Corporation, enters into the agreement with Reverse Mortgage Solutions, Inc. and its parent company Mortgage Assets Management, LLC.
Ocwen acquires the RMS reverse mortgage service platform along with the outstanding interests in RMS Real Estate Owned, REO Management Solutions, LLC.
Subject to certain holdbacks and adjustments, the purchase price was $ 12.4 million.
PHH Mortgage is now the sub-contractor under a five-year sub-service agreement for reverse mortgages held by Reverse Mortgage Solutions and Mortgage Asset Management, assuming approximately 350 reverse service and REO Management employees.
Certain outsourcing agreements with third parties were also assigned from Reverse Mortgage Solutions to PHH Mortgage. This led to PHH Mortgage becoming the sub-contractor for approximately 57,000 reverse mortgages or $ 14.3 billion of outstanding principal balance, which was transferred to PHH Mortgage’s reverse service platform upon closing. of the transaction.
Subject to final counterparty approvals and other customary approvals and conditions, PHH Mortgage expects to begin managing its portfolio of 34,000 reverse mortgages or an outstanding principal balance of $ 6.7 billion in the fourth quarter of 2021.
Ocwen President and CEO Glen A. Messina said: “We are very pleased to complete this transaction which triples our total reverse owned and outsourced portfolio and enables additional growth opportunities through a deal. five-year sub-service. The acquisition provides us with a high quality reverse service platform, experienced people and custom reverse reverse technology and supports our strategy of building an internal reverse service platform. We believe this transaction allows us to significantly expand our reverse mortgage portfolio and position us as the only mortgage company to originate, securitize and directly serve clients and clients of reverse mortgages. “
So far this year, shares of Ocwen are down 0.6% from its industry’s 39.3% decline.
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Currently Ocwen wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
In February of this year, Loan tree TREE announced a partnership with Westlake Technology Holdings to launch an indirect auto loan platform. The move was part of the company’s efforts to allow its consumers to shop and distinguish prequalified indirect car loan rates on its site, LendingTree.com.
Acquisitions by other finance companies
Currently, several finance companies, especially banks, are moving towards consolidation to avoid the increased costs of investing in technology and to counter rate cuts in an effort to remain competitive. For the sake of income diversification, National Bank of the Valley VLY has signed an agreement to acquire Bank Leumi USA, the US banking arm of Bank Leumi Le-Israel BM, for $ 1.15 billion.
In August, Seacoast Banking Corporation of Florida SBCF announced two separate merger agreements, one with Sabal Palm Bancorp, Inc. and the other with Business Bank of Florida, Corp.
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