Huge Sale of Freddie MSRs

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MORTGAGE EXPERT
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A deal has been struck for the sale of mortgage servicing rights on nearly $10 billion in Freddie Mac loans.

An agreement has been reached for the sale of MSRs on 81,000 performing Freddie Mac loans with balances totaling around $9.8 billion.

The buyer in the transaction, which is expected to close by the end of next month, is Lewisville, Texas-based Nationstar Mortgage LLC.

On the other side of the deal is Ocwen Loan Servicing LLC.

Word of the transaction comes as Atlanta-based Ocwen finds itself under deep scrutiny by state regulators over its servicing practices.

Before a definitive agreement can be executed, approval is needed from Freddie and its regulator, the Federal Housing Finance Agency.

The servicing transaction is expected to take place in April.

Ocwen Chief Executive Officer Ronald M. Faris noted in Monday’s announcement that more MSR sales to Nationstar will be explored.

“This transaction represents the first step in the execution of our previously-announced strategy to transfer certain types of non-strategic servicing,” Faris stated.

As of Sept. 30, 2014, Nationstar serviced $378 billion, while Ocwen’s servicing portfolio stood at $362 billion.

Mortgage Expert

Mortgage Daily Staff

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