Ocwen closes HomEq buy, more than 1,000 job cuts possible
Ocwen Financial Corp. closed the acquisition of mortgage servicing firm HomEq Servicing, ending the firm's time in the marketplace and sending more than 1,000 people home jobless by November. In May, Barclays Capital agreed to sell HomEq to Ocwen Loan Servicing for about $1.3 billion. The deal combines the top two converters of mortgage modifications, from temporary to permanent, under the Home Affordable Modification Program (HAMP), into one firm. Ocwen did not say the layoffs were directly correlated to the acquisition, but it does "regret the loss of HomEq jobs" and is "grateful to those employees for their service and commitment to that firm," the company said. HomEq has two offices, one in Sacramento and one in Raleigh, N.C. The Sacramento Bee reported that HomEq employee layoffs in California will come in two waves. According to a Worker Adjustment and Retraining Notice issued by Ocwen, 452 employees will be laid off Oct. 31 and another 453 will be let go Nov. 19. The HomEq office in North Carolina plans to terminate 242 jobs Oct. 31. The newspaper said Sacramento County received the WARN notice from Ocwen Wednesday that said the financial services company plans to outsource about 1,200 jobs to Uruguay and India. Customers of HomEq will now have their loans serviced by Ocwen. Write to Christine Ricciardi.