Saxon Sells Subprime Servicing Rights to Ocwen
Saxon Mortgage Services is transferring the mortgage servicing rights of approximately 38,000 predominately subprime loans, with an aggregate unpaid principal balance of about $6.9bn, over to Ocwen Loan Servicing later this month. A lender can enter into a partnership with a subservicing firm that will allow it to maintain servicing rights on loans they originate. According to Saxon, the transaction with Ocwen compliments a strategy to enter the subservicing market. “Saxon has proven its core competency of asset performance management in the distressed servicing industry, and this sale marks an important milestone in our strategy toward becoming a premier subservicer by increasing our capacity for subservicing clients,” said Saxon CEO Anthony Meola. Both Saxon, a subsidiary of Morgan Stanley (MS), and Ocwen are considered top performers in the Home Affordable Modification Program (HAMP). Saxon put 41% of its 70,269 HAMP-eligible loans into three-month trial or permanent modifications, the fourth most of any participating servicer through February. Of the 16,148 three-month trials Ocwen started through February, it pulled through more than 57% of them into permanent status. Write to Jon Prior. Disclosure: the author holds no relevant investment positions.