Mortgage Daily Logo

Ocwen to Acquire MSRs on Nearly $40 Billion in Loans

Mortgage News

As Ocwen Financial Corp. announced a planned acquisition of the servicing on a non-agency portfolio, a new report raises concerns about its rapid growth.

Ocwen disclosed Wednesday that it has reached an agreement for its servicing arm to buy mortgage servicing rights on 184,000 home loans.

The Atlanta-based company noted that the underlying loans in the portfolio are included in private-label mortgage-backed securities.

The aggregate principal balance on the mortgages is $39 billion.

The buyer in the transaction is Ocwen Loan Servicing LLC, while the seller is Wells Fargo Bank, N.A.

“The sale will be finalized as servicing is transferred, which Ocwen expects will occur during 2014,” Wednesday’s announcement said.

A statement from Wells Fargo & Co. indicated that the loans involved in the transaction account for around 2 percent of its total residential servicing portfolio as of the end of fourth quarter 2013.

Wells said that it didn’t originate the loans, which are serviced under the trade name, America’s Servicing Co.

Word of the sale came the same day that Moody’s Investors Service expressed concern about the rapid growth of Ocwen’s servicing portfolio.

Although Ocwen’s servicer quality metrics have remained stable — with collection and loan administration abilities showing no deterioration yet — continued growth could stress its servicing abilities.

“In 2013, Ocwen added almost 2.8 million loans to its servicing portfolio,” Moody’s Assistant Vice President and Analyst Gene Berman said in the report. “It could be a challenge for Ocwen to maintain servicing quality as it scales its operations so quickly.”

The ratings agency noted that a recent MSR acquisition from OneWest Bank, FSB, has pushed Ocwen’s servicing portfolio past $518 billion from just $55 billion in mid-2010.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam