Ocwen Monetary Pronounces Settlement With Reverse Mortgage
WEST PALM BEACH, Fla., June 18, 2021 (GLOBE NEWSWIRE) – Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and lender, today announced that its Die wholly owned subsidiary PHH Mortgage Corporation (“PHH”) has an agreement with Reverse Mortgage Solutions, Inc. (“RMS”) and its parent company Mortgage Assets Management, LLC (“MAM”) to acquire substantially all of the Operations’ assets and the RMS Reverse Mortgage Servicing Platform employee. MAM is a subsidiary of mutual funds managed by Waterfall Asset Management, LLC (“Waterfall”). The Company will also acquire all outstanding interests in RMS Real Estate Owned Business, REO Management Solutions, LLC (“REO”).
Under the terms of the agreement, the sub-servicing agreements for the reverse home mortgages currently under-managed by RMS would be transferred to PHH. As of March 31, 2021, RMS was servicing approximately 35,000 reverse mortgages, or approximately $ 7.8 billion in unpaid principal. As part of the transaction, PHH expects to take on the vast majority of the RMS reverse servicing and REO employees and PHH will become the subservicer under a five year reverse mortgage subservicing agreement owned by RMS and MAM.
The total purchase price is estimated at approximately $ 12.4 million and is subject to certain adjustments after closing. The transaction is expected to close in the third quarter of 2021, subject to appropriate regulatory approvals and other customary closing conditions.
Glen A. Messina, President and CEO of Ocwen, said, “We are very excited to announce the proposed acquisition of the RMS Reverse Mortgage Servicing and REO platforms. The acquisition is expected to double our reverse service / subservicing portfolio and provide us with a high quality reverse service platform, experienced staff and bespoke reverse technology. In addition to our current relationship with Waterfall across the reverse mortgage product line, we are pleased and honored to expand our partnership with you through the long-term subservicing agreement to support your asset growth and investment goals in the reverse mortgage industry. “
Messina added, “Our Liberty Reverse Mortgage platform is one of the leading reverse mortgage lenders in the industry and we believe this transaction will add to our existing capabilities and further cement our leadership position. We look forward to closing this transaction, welcoming the RMS team, clients and customers to the Ocwen / PHH family and continuing our long-term partnership with Waterfall. “
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 complete the announced transaction with RMS, including its ability to obtain required regulatory approvals and others customary closing conditions under the agreement with RMS and MAM; the company’s ability to integrate the acquired mortgage services business and RMS and REO employees into the company’s existing operations and to derive the anticipated benefits from the transaction; the Company’s ability to complete other recently announced bulk mortgage servicing (“MSR”) acquisitions, including the ability to obtain regulatory approvals, enter into definitive financing agreements and meet closing conditions; the company’s ability to meet its new service goals for 2021; 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 comply with 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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