Ocwen Financial Corp. is on the verge of closing on its acquisition of ailing PHH Mortgage Corp. Regulatory approval of the transaction specifies the type of servicing platform Ocwen can use.
A filing Friday with the Securities and Exchange Commission
indicated that all regulatory, governmental entity and contractual approvals needed to close the transaction have been obtained.
The deal for West Palm Beach, Florida-based Ocwen to acquire PHH was originally disclosed in February. Ocwen noted at the time that the increase in size and scale should create various strategic and financial benefits.
Today’s SEC filing indicated that
the transaction is expected to close within the next 10 days.
Prior to landing the deal with PHH, in September 2017 Ocwen revealed consent orders with 10 states requiring it to stop boarding loans on its REALServicing system and transfer existing servicing to a new system if it mergers with another firm.
In November, Ocwen announced it signed a long-term contract to utilize Black Knight Inc.’s LoanSphere MSP servicing system.
Ocwen said in today’s filing that as part of the New York Department of Financial Services’ approval of the acquisition, it must transfer New York loans being serviced on the old system to the Black Knight system. Any mortgage-servicing rights acquired after the acquisition must be boarded onto the Black Knight system.
In addition, Ocwen needs New York’s approval if it appoints anyone to serve on PHH’s board.
