Ocwen Monetary To Purchase Reverse Mortgage Servicing Platform
Ocwen Financial Corporation’s wholly owned subsidiary, PHH Mortgage Corporation, has entered into an agreement with Reverse Mortgage Solutions and its parent company Mortgage Assets Management, LLC to acquire essentially all of the operations, assets and employees of the RMS Reverse Mortgage Servicing Platform.
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, according to a press release. 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, following regulatory approvals and customary closing operations.
“The acquisition is expected to double our reverse service / sub-service portfolio and provide us with a high quality reverse service platform, experienced people and bespoke reverse technology,” said Glen A. Messina, President and CEO of Ocwen.
“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.”