Altisource Portfolio Solutions is buying sections of Ocwen Financial Corporation’s (OCN) non-core assets.
The primary acquisitions are related to the purchases of Homeward Residential and the Residential Capital mortgage servicing rights. Currently, there is only a non-binding letter of intent between the parties ().
However, the assets include Power Default Services, Power REO Management Services and Power Valuation Services.
Altisource is also buying the mortgage asset recovery special services division of Stratus Asset Management Group.
“By selling these non-core assets, Ocwen is able to achieve a greater projected return on the Homeward and ResCap servicing acquisitions and to continue to focus primarily on growing our core residential and commercial servicing businesses,” said Ronald Faris, CEO of Ocwen.
“Having an outlet for disposition of peripheral mortgage-related assets significantly enhances Ocwen’s competitive positioning for future servicing platform acquisitions that include non-core operations,” he added.
Altisource and Ocwen will execute a five-year extension until 2025 of certain existing services agreements.
In exchange, Ocwen will not develop similar fee-based services that would directly or indirectly compete with the services provided by Altisource to the Homeward Residential Holdings and Residential Capital servicing portfolios, according to a statement.