A pool of non-performing loans with an aggregate principal balance in excess of $100 million has been sold by Ocwen Loan Servicing LLC.
The residential loans involved in the secondary transaction collectively had an unpaid principal balance of around $121.2 million as of Feb. 1.
Ocwen’s sale comes at the same time that it is building up its mortgage servicing portfolio. Ocwen Financial Corp.-subsidiary O&H Acquisition Corp.’s recent purchase of Homeward Residential Holdings Inc. boosted its mortgage servicing rights by $77 billion in loans, while MSRs on another $127 billion in mortgages are expected to be acquired from Residential Capital LLC.
The buyer of the non-performing loans, Altisource Residential Corp., said in an announcement that it was the company’s first purchase of a non-performing loan pool.
The deal, which was executed pursuant to a master mortgage loan sale agreement, is part of a strategic plan, Altisource Chief Executive Officer Ashish Pandey said in the news release.
Altisource, which is based in the U.S. Virgin Islands, additionally said that it has preliminarily been awarded the winning bids on two non-performing mortgage pools from separate sellers. The aggregate unpaid principal balance on the pools is roughly $235 million.
If final agreements on the transactions are reached and due diligence is satisfactory, Altisource expects to close on the acquisitions by March 31.