An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Did you miss out on HousingWire Annual? We have you covered! Join us virtually on October 25 for a chance to see hand picked sessions from our in-person HousingWire Annual in Frisco. Register now for FREE!

How brokers can help today’s unique borrower

The average borrower has drastically changed throughout the years. More borrowers are self-employed, work remotely and have multiple streams of income. Learn about the tools to assist any borrower quickly and effectively.

Experts on how AI makes a difference in the mortgage process

Today’s HousingWire Daily features a roundtable discussion on “Humans versus really smart machines” and what the right mix looks like to gain efficiencies in the mortgage loan manufacturing process.


Massive MSR deal between Wells Fargo and Ocwen is officially dead

Deal was put on hold by NYDFS in February

The long-delayed $2.7 billion mortgage servicing rights deal between Ocwen Financial (OCN) and Wells Fargo (WFC) is now dead, the companies announced late Thursday.

According to a filing with the Securities and Exchange Commission from Ocwen, the two companies signed a mutual termination agreement on Thursday.

Ocwen’s SEC filing states that the company will receive its entire $25 million deposit back.

The deal has been in limbo since February, when the New York Department of Financial Services put an indefinite hold on the deal.

At the time, the NYDFS said that it was concerned about Ocwen’s ability to handle Wells Fargo’s portfolio of mortgage servicing rights in the deal, which was originally announced in January and which would have given Ocwen the right to service approximately $39 billion in mortgages.

Wells Fargo said in a brief release announcing the cancelation of the deal that parties have mutually decided to cancel the deal and that the cancellation of the transaction is not expected to be material to Wells Fargo’s consolidated financial results.

In the wake of the deal initially being placed on hold, Ocwen Executive Chairman William Erbey said that the NYDFS had effectively halted all MSR portfolio deals.

“Until we resolve – this relates to Ocwen – until we resolve New York State we’re not acquiring any new (MSR) portfolios at all. As a matter of fact the entire market – nothing is being put out for bid right now,” Erbey said in April. “The whole market has stopped until that gets resolved.”

NYDFS Superintendent Benjamin Lawsky has long been looking into Ocwen’s business dealings, including Ocwen’s close relationship with Altisource Residential (RESI), Altisource Asset Management Corp (AAMC), Altisource Portfolio (ASPS), and Home Loan Servicing Solutions (HLSS). Lawsky first sent a letter to Ocwen’s general counsel about the dealings between the affiliated companies in February.

Ocwen announced two weeks ago in its own earnings statement that it booked a $100 million charge for a potential settlement with the New York Department of Financial Services over allegations that it was backdating letters to borrowers.

And now, concerns from the NYDFS have killed Ocwen's $2.7 billion MSR deal.

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By

Latest Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

Oct 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please