Ocwen Financial Announces Agreement With Reverse Mortgage Solutions to Acquire Reverse Mortgage Servicing Platform
June 18 2021 - 6:45AM
Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”),
a leading non-bank mortgage servicer and originator, today
announced that its wholly-owned subsidiary, PHH Mortgage
Corporation (“PHH”), has entered into an agreement with Reverse
Mortgage Solutions, Inc. (“RMS”) and its parent, Mortgage Assets
Management, LLC (“MAM”), to acquire substantially all of the
operations, assets and employees of the RMS reverse mortgage
servicing platform. MAM is a subsidiary of investment funds managed
by Waterfall Asset Management, LLC (“Waterfall”). The Company will
also acquire all of the outstanding equity interests in the RMS
Real Estate Owned business, REO Management Solutions, LLC (“REO”).
Under the terms of the agreement, subservicing contracts for the
reverse residential mortgages currently subserviced by RMS would be
assigned to PHH. As of March 31, 2021, RMS serviced approximately
35,000 reverse mortgages, or approximately $7.8 billion in unpaid
principal balance. As part of the transaction, PHH expects to
assume the vast majority of the RMS reverse servicing and REO
employees and PHH will become the subservicer under a five-year
subservicing agreement for reverse mortgages owned by RMS and
MAM.
The aggregate purchase price is estimated to be approximately
$12.4 million and will be subject to certain post-closing
adjustments. 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
pleased to announce the proposed acquisition of the RMS reverse
mortgage servicing and REO platforms. The acquisition is expected
to double our reverse servicing/subservicing portfolio and will
provide us with a high-quality reverse servicing platform,
experienced people and customized reverse technology. In addition
to our current relationship with Waterfall across the reverse
mortgage product spectrum, we are excited and honored to broaden
our partnership with them through the long-term subservicing
agreement and to support their asset growth and investment
objectives in the reverse mortgage industry.”
Messina added, “Our Liberty Reverse Mortgage platform is one of
the premier reverse mortgage lenders in the industry, and we
believe this transaction complements our existing capabilities and
further solidifies 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 servicer and originator providing solutions through its
primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH
Mortgage is one of the largest servicers in the country, focused on
delivering a variety of servicing and lending programs. Liberty is
one of the nation’s largest reverse mortgage lenders dedicated to
education and providing loans that help customers meet their
personal and financial needs. We are headquartered in West Palm
Beach, Florida, with offices in the United States and the U.S.
Virgin Islands and operations in India and the Philippines, and
have been serving our customers since 1988. For additional
information, please visit our website (www.ocwen.com).
Forward-Looking Statements
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 a
reference to a future period or by the use of forward-looking
terminology and include statements regarding, among other things,
the expected closing of the transaction and the Company’s
expectations regarding the benefits to be achieved as a result of
the transaction. Forward-looking statements are typically
identified by words such as “expect”, “believe”, “foresee”,
“anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan”
“target” and “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.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Readers should bear these
factors in mind when 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 those
suggested by forward looking statements and this may happen again.
Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, PHH’s ability to close the
announced transaction with RMS, including the ability to obtain the
necessary regulatory approvals and satisfy other customary closing
conditions under the agreement with RMS and MAM; the Company’s
ability to integrate the acquired mortgage servicing business and
RMS and REO employees with the Company’s existing operations and to
achieve the expected benefits from the transaction; the Company’s
ability to close other recently announced bulk mortgage servicing
right (“MSR”) acquisitions, including the ability to obtain
regulatory approvals, enter into definitive financing arrangements,
and satisfy closing conditions, and the timing for doing so; the
Company’s ability to meet its 2021 new servicing targets;
uncertainty relating to the continuing impacts of the COVID-19
pandemic, including with respect to the response of the U.S.
government, state governments, the Federal National Mortgage
Association (Fannie Mae), the Federal Home Loan Mortgage
Corporation (Freddie Mac, and together with Fannie Mae, the GSEs),
the Government National Mortgage Association (Ginnie Mae) and
regulators; the potential for ongoing COVID-19 related disruption
in the financial markets and in commercial activity generally,
increased unemployment, and other financial difficulties facing the
Company’s borrowers; the adequacy of the Company’s financial
resources, including its sources of liquidity and ability to sell,
fund and recover servicing advances, forward and reverse whole
loans, and Home Equity Conversion Mortgage and forward loan buyouts
and put backs, as well as repay, renew and extend borrowings,
borrow additional amounts as and when required, meet its MSR or
other asset investment objectives and comply with its debt
agreements, including the financial and other covenants contained
in them; increased servicing costs based on increased borrower
delinquency levels or other factors; as well as other risks and
uncertainties detailed in Ocwen’s reports and filings with the
Securities and Exchange Commission, including its annual report on
Form 10-K for the year ended December 31, 2020 and current and
quarterly reports since such date. Forward-looking statements speak
only as of the date they are made and, Ocwen disclaims any
obligation to update or revise forward-looking statements whether
as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION CONTACT:
Investors: |
Media: |
June Campbell |
Dico Akseraylian |
T: (856) 917-3190 |
T: (856) 917-0066 |
E:
shareholderrelations@ocwen.com |
E: mediarelations@ocwen.com |
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