Ocwen Monetary Broadcasts Closing With Reverse Mortgage Options to Purchase Reverse Mortgage Servicing and REO Platforms
WEST PALM BEACH, Fla., October 4, 2021 (GLOBE NEWSWIRE) – Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and lender, announced today that its wholly owned Subsidiary PHH Mortgage Corporation (“PHH”) has previously announced a transaction with Reverse Mortgage Solutions, Inc. (“RMS”) and its parent company Mortgage Assets Management, LLC (“MAM”) to acquire substantially all of RMS Reverse Mortgage Servicing Platform and all outstanding holdings in RMS Real Estate Owned Business, REO Management Solutions, LLC (“REO”). MAM is a subsidiary of mutual funds managed by Waterfall Asset Management, LLC (“Waterfall”).
Simultaneously with the closing of the transaction, PHH Subservicer became owned by RMS and MAM under a five-year subservicing agreement for reverse mortgages and took over around 350 reverse servicing and REO employees. In addition, certain sub-servicing agreements with third parties were transferred from RMS to PHH. As a result, PHH has become a sub-servicer for approximately 57,000 reverse mortgages, or approximately $ 14.3 billion in unpaid principal (“UPB”) that were transferred to PHH’s reverse service platform at the same time as the deal. In addition, PHH expects to start servicing its own portfolio of approximately 34,000 reverse mortgages, or a UPB of approximately 6.7 billion, in the fourth quarter of 2021.
The total purchase price at closing was approximately $ 12.4 million, subject to certain restrictions and adjustments.
Glen A. Messina, President and CEO of Ocwen, said, “We are very excited to close this transaction, which triples our total property and subserviced reverse portfolio and provides additional growth opportunities through a five year subservicing contract. The acquisition offers us a high-quality reverse service platform, experienced employees and tailor-made reverse technology and supports our strategy of building an internal reverse service platform. We believe this transaction will allow us to significantly expand our reverse servicing portfolio and position ourselves as the only mortgage company producing, securitizing and serving reverse mortgage clients and customers directly. “
The story goes on
Messina added, “We are excited to officially welcome a highly talented group of employees to our company and we look forward to our expanded partnership with Waterfall to continue to support their growth goals in the reverse mortgage industry.”
About Ocwen Financial Corporation
Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage service provider and provider offering solutions through its main brands PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest service providers in the country focused on delivering a wide variety of servicing and loan programs. Liberty is one of the nation’s largest reverse mortgage lender dedicated to education and offers loans to help customers meet their personal and financial needs. Headquartered in West Palm Beach, Florida, with offices in the United States and the US Virgin Islands, and offices in India and the Philippines, we’ve served customers since 1988. For more information, visit our website (www.ocwen .com) .
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by reference to a future period or by the use of forward-looking terminology and include, among other things, statements about the expected completion of the Transaction and the Company’s expectations of the benefit to be obtained as a result of the Transaction. Forward-looking statements are typically identified by words such as “expect”, “believe”, “anticipate”, “anticipate”, “intend”, “estimate”, “target”, “strategy”, “plan”, “aim” and. marked “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words. By their very nature, forward-looking statements relate to facts that are uncertain to varying degrees. Readers should consider these factors in considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from forward-looking statements and this is a repeatable occurrence. Important factors that could cause actual results to differ materially from those proposed in the forward-looking statements include, but are not limited to, PHH’s ability to obtain the necessary approvals from the counterparty to operate its own reverse serving portfolio begin, and when to do so; the company’s ability to integrate the acquired mortgage services business and employees of RMS and REO into the company’s existing operations and to derive the anticipated benefits from the transaction, including with regard to future growth; the Company’s ability to complete other bulk mortgage servicing (“MSR”) acquisitions, including the ability to obtain regulatory approvals, enter into final funding agreements and meet closing conditions, and when to do so; Uncertainty about the ongoing impact of the COVID-19 pandemic, including the response from the US government, state governments, the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac and along with Fannie Mae, the GSEs), the Government National Mortgage Association (Ginnie Mae) and regulators; the potential for persistent disruption related to COVID-19 in financial markets and business in general, increased unemployment, and other financial hardships faced by the company’s borrowers; the adequacy of the company’s financial resources, including its sources of liquidity and its ability to sell, fund and collect service advances, advance and withdraw entire loans, and convert and repay, renew and borrow mortgage and term loan purchases and returns Borrow additional amounts as needed, meet its MSR or other investment objectives, and meet its debt agreements, including financial and other obligations therein; increased service costs due to increased borrower defaults or other factors; and other risks and uncertainties identified in Ocwen’s reports and filings with the Securities and Exchange Commission, including his Annual Report on Form 10-K for the year ended December 31, 2020 and the most recent and quarterly reports since that date. Forward-looking statements speak only as of the date they are made, and Ocwen disclaims any obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.
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