Ocwen to Unload $25 Billion Mortgage Servicing Portfolio to Nationstar

Ocwen Financial Corporation (NYSE: OCN) is continuing to wind down its mortgage servicing portfolio. The former servicing giant announced Tuesday its plans to sell a $25 billion portfolio of mortgage servicing rights (MSRs) to a an indirectly-held, wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. (NYSE: NSM).

The sale by Ocwen Loan Servicing, a subsidiary of Ocwen Financial Corporation, to Nationstar Mortgage LLC includes a portfolio of about 142,000 loans owned by Freddie Mac and Fannie Mae, with the total principal balance being about $25 billion.

The latest announcement follows Ocwen’s rapid succession of recent deals to unload its MSRs, and is the second recently announced deal with Nationstar. 

Last month, Ocwen—the parent company of reverse mortgage lender Liberty Home Equity Solutions—sold a $9.8 billion portfolio to Nationstar, which consisted of approximately 81,000 Freddie Mac-owned performing loans.

Earlier this month, Ocwen sold a $45 billion portfolio of 277,000 Fannie Mae-owned loans to JPMorgan Chase & Co. (NYSE: JPM). And last week, Ocwen announced its plans to sell a $9.6 billion portfolio of MSRs to a subsidiary of Walter Investment Management Corp. (NYSE: WAC).

Ocwen’s most recent deal with Nationstar, in addition to the one announced in February between Ocwen and Nationstar, “furthers our announced corporate strategy and demonstrates the strong working relationship we have developed with Nationstar,” says Ron Faris, Chief Executive Officer of Ocwen, in a statement.

The latest transaction builds upon Ocwen’s track record of portfolio acquisitions “while serving the needs of homeowners,” says Jay Bray, Chief Executive Officer of Nationstar, adding that the company looks forward to “expeditiously closing and boarding this portfolio.”

“We will continue to work cooperatively with Ocwen as they evaluate the sale of additional agency portfolios and look forward to continuing discussions with all counterparties,” Bray said.

Written by Cassandra Dowell

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