Ocwen Financial Corporation (OCW) bought Genworth Financial Home Equity Access from Genworth Financial Corporation for $22 million.
Genworth Financial Home Equity Access “is a leading originator in the reverse mortgage sector, and has retail, wholesale and correspondent operations,” according to a filing with the Securities and Exchange Commission.
The reverse mortgage originator will be renamed “Liberty Home Equity Solutions” as part of the transaction.
Genworth Financial (GNW)earned $24 million in Q312, or seven cents a share. A year earlier, the company reported a net loss of $16 million, or three cents a share.
The news is good for Genworth, which faced a downgrade threat from Moody’s Investors Service last month. Genworth says the spin-off or run-off of its private mortgage insurance unit would not be necessary despite the looming downgrade.
Ocwen is on a buying spree.
Last week, Ocwen won the battle to acquire mortgage servicing rights from Residential Capital LLC, a subsidiary of Ally Financial, along with Walter Investment.
The purchase price is $3 billion.
