Ocwen Financial through Ocwen Loan Servicing, LLC and Nationstar Mortgage LLC, an indirectly-held, wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. Collectively “Nationstar”) have agreed to the sale by Ocwen of residential mortgage servicing rights on a portfolio that has approximately 142,000 loans owned by Freddie Mac and Fannie Mae. This is through a total principal balance of approximately $25 billion. This acquisition is subject to a definitive agreement, approvals by Freddie Mac, Fannie Mae and FHFA and other customary conditions. The two companies have agreed to close the transaction before the middle of the year.
“This transaction, on top of the one announced in February between Ocwen and Nationstar, furthers our announced corporate strategy and demonstrates the strong working relationship we have developed with Nationstar,” said Ron Faris, Chief Executive Officer of Ocwen.
“This transaction builds upon our strong track record of portfolio acquisitions while serving the needs of homeowners, and we look forward to expeditiously closing and boarding this portfolio,” said Jay Bray, Chief Executive Officer of Nationstar. “We will continue to work cooperatively with Ocwen as they evaluate the sale of additional agency portfolios and look forward to continuing discussions with all counterparties.”
Ocwen will sell an additional $25 billion of servicing rights on agency loans to a subsidiary of Nationstar Mortgage Holdings Inc; this is the fourth deal of the mortgage company in just two months. These activities show the strength of Nationstar in portfolio acquisitions as well as the ability to provide the best option for companies. Nationstar has a strong record of acquisitions yet still it maintains its high level of relationship with homeowners and customers.
Ocwen’s shares fell 6 percent to $8.31 in premarket trading on Tuesday. The company has decreasing its operations since regulators questioned its servicing standards last year. Ocwen was able to sell about $90 billion of servicing rights since February. Ocwen representatives had said earlier this month that it will be raising around $550 million through the sales of its servicing rights on agency loans of about $55 billion. Ocwen and Nationstar also mentioned that they expect the transaction to close before the middle of the year. This is subject to approvals by government agencies. More information about this portfolio acquisition by Nationstar will be provided by representatives starting by the middle of the year.
Ocwen Financial Corporation is a provider of residential and commercial mortgage loan servicing, special servicing and asset management services. Ocwen main office is in Dunwoody, Georgia; Ocwen is licensed to service mortgage loans in all 50 states, the District of Columbia and two U.S. territories. Ocwen has been providing residential mortgage loans since 1988 and subprime mortgage loans since 1994.Ocwen market evolution: http://www.reuters.com/finance/stocks/overview?symbol=OCN.N
About Ron Faris
Mr. Ronald M. Faris, also known as Ron, has been the President of Ocwen Financial Corp. since March 2001 and its Chief Executive Officer since October 28, 2010. Mr. Faris serves as President and Chief Executive Officer at Ocwen Loan Servicing, LLC. He served as a Director at Ocwen Federal Bank FSB since March 2001. Mr. Faris holds a Bachelor of Science in Accounting from Pennsylvania State University.
About Nationstar Mortgage
Nationstar Mortgage is a leading residential mortgage services company that provides quality solutions to customers. Nationstar is headquartered in Dallas, Texas. It offers servicing, origination, and transaction-based real estate services. Nationstar is considered as one of the most prominent when it comes to mortgage servicers with a servicing portfolio in excess of $375 billion and over 2 million customers. In 2013, Nationstar acquired Greenlight Financial Services, a leading direct-to-consumer loan in television, radio and other media. Nationstar stock market evolution: http://finance.yahoo.com/q?s=NSM
About Jay Bray
Mr. Jay Bray has been Chief Executive Officer of Nationstar Mortgage Holdings Inc. since 2012. Mr. Bray serves as Executive Vice President and Chief Financial Officer of Nationstar Capital Corporation. He served as the President at Nationstar Mortgage Holdings Inc. from October 7, 2011 to February 27, 2012. He has managed the Asset Backed Securitization process for NationsCredit and EquiCredit originated products, at Bank of America. His responsibilities included developing and implementing a secondary execution strategy and profitability plan, managing investment banking relationships, secondary marketing operations, investor reporting and investor relations. Mr. Bray is also a leader in the portfolio acquisition pricing and modeling group, acquiring over $9 billion in non-conforming product in 1999 – ranked No. 1 in sub-prime acquisition by B&C Lending magazine. Mr. Bray serves as a Director of Nationstar Mortgage Holdings Inc. and Nationstar Capital Corporation. He holds a B.A.A. from Auburn University in 1988.