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.
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.