A total of 680 employees at Saxon Mortgage Services will be laid off beginning in May, according to a filing with the Texas Workforce Commission last week.
Ocwen bought the Fort Worth, Texas-based firm from Morgan Stanley ($25.16 0.09%) in October to board $26.6 billion in new mortgage servicing rights.
Morgan Stanley will begin the layoffs May 28 and will continue through the rest of 2012 until the entire Dallas-Fort Worth operation is shut down, according to the notice.
Ocwen declined to comment. After buying Litton Loan Services and HomEq last year, Ocwen became the largest servicer of subprime mortgages in the country.
According to its year-end financial filing, Ocwen paid $34 million in severance and layoff expenses tied to the Litton acquisition and another $32.9 million for layoffs after the HomEq buy.
Of the 5,063 Ocwen employees as of Dec. 31, more than 840 worked in the U.S., not counting the Saxon office. More than 4,100 are employed in India with the rest in a Uruguay operation set up in 2008.
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