Last month, HousingWire reported that Altisource Residential Corporation (RESI) agreed to separate mortgage servicing contracts with two vendorsFay Servicing and BSI Financial Services.

What wasn’t known at the time was just how much servicing Altisource would be transferring to Fay Serving and BSI Financial, but a recent filing with the Securities and Exchange Commission reveals the size of the contracts.

According to Altisource Residential’s quarterly SEC filing, the company has already transferred the mortgage servicing rights on $485 million in unpaid principal balance to Fay Servicing, making that transaction official on Feb. 28.

Additionally, Altisource expects to transfer the servicing rights on an additional $585 million of unpaid principal balance to BSI Financial Services in April.

Between the two deals, Altisource’s total servicing offload is $1.07 billion in unpaid principal balance.

The moves come on the heels of calls from Capstone Equities Capital Management for Altisource Residential to terminate its relationship with Altisource Asset Management Corporation (AAMC).

In a letter sent to Altisource Residential’s board of governors and provided to HousingWire, Capstone said that AAMC, which, according to the company's website, exists solely to provide “portfolio management and corporate governance services” to RESI, has the duty to prevent harm coming to RESI and has failed in that capacity.

Capstone said that harm has come to RESI because of the company’s relationship with Ocwen Financial (OCN), which is the “main servicer of RESI’s portfolio” of loans, and demands that RESI and AAMC terminate the servicing agreement with Ocwen.

Capstone said that the RESI board must consider alternative servicers for RESI’s portfolio. “Divorced from Ocwen’s inefficiencies, RESI could more effectively resolve or modify its non-performing loan portfolio,” Capstone said. “Ocwen has also limited RESI’s ability to issue future NPL securitizations, hence limiting the company’s ability to grow.”

Capstone noted the agreements with Fay Servicing and BSI Financial, as a potential positive step.

“If these servicing agreements are the initial steps to divorce from Ocwen, RESI must not permit Ocwen to remain in a master servicer role and siphon additional fees for no actual services provided,” Capstone said. “The board instead must terminate the servicing agreement for cause without making any further payment to Ocwen and exit the fundamentally conflicted relationship.”

Under the terms of the servicing agreements with Fay Servicing and BSI Financial, both vendors will “service and provide certain administration, management, modification and disposition services for residential mortgage loans and REO properties acquired by the company and its subsidiaries from time to time.”

According to the terms of the agreements, the servicing agreements will continue until both parties decide to cancel the deal. But Altisource can cancel either deal “upon certain events of default.”

Additionally, Altisource can terminate the deal with BSI Financial without cause with 60 days prior written notice. BSI Financial can cancel the deal without cause with 90 days prior written notice.

On the other hand, Fay Servicing’s agreement can be terminated only by mutual agreement, by Altisource “upon certain events of default,” or by Altisource, which has the authority to cancel the deal without cause with only 30 days notice.

Fay Servicing appears to have no power to cancel the deal independently of Altisource.