An acquisition completed last week by Ocwen Financial Corp. makes the company the sixth-largest mortgage servicer in the country. Another acquisition expected to complete early next year will move the residential servicer up one more notch.
Ocwen-subsidiary O&H Acquisition Corp. completed its acquisition of Homeward Residential Holdings Inc. from WL Ross & Co. LLC on Dec. 27.
The deal was originally announced in October.
Ocwen spent around $766 million for the acquisition, including $604 million paid in cash and $162 million paid in the form of preferred stock.
An escrow account has been established for $85 of the proceeds to cover loss-sharing payments and certain other indemnification payments that may become owed to Ocwen. Representative expenses will also be pulled from the escrow account, which will be kept open for 21 months.
Completion of the transaction was disclosed in a FORM 8-K filing Friday with the Securities and Exchange Commission.
As of Sept. 30, Ocwen serviced $127.067 billion, according to earnings data. The Homeward acquisition was expected to increase the total by $77 billion.
The resulting total servicing portfolio of approximately $204.1 billion has made Ocwen the nation’s No. 6 residential servicer, just behind US Bancorp, which serviced $270.3 billion as of Sept. 30.
In addition, a joint bid by Ocwen Loan Servicing LLC and Walter Investment Management Corp. is expected to increase Ocwen’s servicing portfolio by another $126.6 billion and thrust the Atlanta-based company into the No. 5 position.