Ocwen MSR Sales Surpass $64 Billion

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With its latest deal to sell mortgage servicing rights, Ocwen Loan Servicing LLC has recently negotiated the sale of MSRs on more than $64 billion in agency loans.

Last month, the Atlanta-based firm announced an agreement to unload MSRs on 81,000 Freddie Mac loans with an aggregate principal balance of $9.8 billion.

The buyer in that transaction, which is expected to close by the end of this month subject to approval by Freddie and its regulator the Federal Housing Finance Agency, is Nationstar Mortgage LLC.

Then, on Tuesday, Bloomberg — citing a person familiar with the transaction — reported that Ocwen signed a letter of intent on March 2 to sell MSRs on 277,000 Fannie Mae loans for $45 billion to JPMorgan Chase & Co.

On Wednesday, Ocwen disclosed
that subsidiary Ocwen Loan Servicing LLC has signed an agreement to sell MSRs on more Freddie loans.

The buyer in that transaction is
Green Tree Loan Servicing LLC.

St. Paul, Minn.-based Green Tree
is an indirect subsidiary of Walter Investment Management Corp.

Ocwen said the transaction involves 55,000 “largely performing” Freddie loans with an aggregate principal balance of $9.6 billion.

Subject to a definitive agreement and the approval of Freddie and FHFA, the sale is expected to close by April 30, while the
servicing transfer is expected to take place in May.

“Over the next several months, we expect to generate proceeds of at least $650 million from sales and transfers of mortgage servicing rights,” Ocwen Chief Executive Officer Ron Faris said in today’s statement.

Also today, a filing with the Securities and Exchange Commission indicated that it won’t be able to file its 2014 Form 10-K by the March 17 date disclosed in an SEC earlier this month.

And while it now expects to make that filing by March 24,
Ocwen noted that the extended filing date is not assured.

“The company continues to analyze and review Home Loan Servicing Solutions LTD’s ability to continue to meet its obligations to fund new servicing advances,” the SEC filing stated. “A failure by HLSS to fund new serving advances could have a material negative impact on the company’s financial condition. Additionally, the company is clarifying for its auditor the appropriateness of adding back the $150 million New York Department of Financial Services charge as an extraordinary item for certain covenant calculations in one of its advance financing facilities.”

Mortgage Expert

Mortgage Daily Staff



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