September 23, 2023

error page

Business is my step

Ocwen Money Accelerates Expansion Trajectory With Strategic Relationship With Oaktree and New Servicing Contracts

8 min read

The MarketWatch Information Division was not included in the development of this articles.

WEST PALM Seaside, Fla., Dec 22, 2020 (World NEWSWIRE by using COMTEX) —
Enters into definitive arrangement with Oaktree to start MSR investment decision auto anticipated to include approximately $50 to $60 billion of subservicing

WEST PALM Beach, Fla., Dec. 22, 2020 (World NEWSWIRE) — Ocwen Monetary Corporation (NYSE: OCN) (“Ocwen” or the “Firm”), a main non-bank property finance loan servicer and originator, right now announced substantial developments on the Company’s progress ideas that are predicted to deliver close to $80 to $100 billion of new servicing UPB in the mixture.

Ocwen has entered into a definitive arrangement with cash managed by Oaktree Capital Administration, L.P. (collectively, “Oaktree”) to sort a strategic romance that will acquire and keep mortgage loan servicing rights (“MSRs”) through a licensed entity, or MSR asset automobile (“MAV”). The newly-formed firm is anticipated to make investments up to $250 million of equity capital into the MAV to purchase Fannie Mae and Freddie Mac MSRs. The parties will dedicate to fund the investment decision on a professional rata foundation of 15% for Ocwen and 85% for Oaktree.

PHH Mortgage loan Company, a wholly-owned subsidiary of Ocwen, will subservice the financial loans acquired by the MAV, execute portfolio recapture services and give certain other administrative solutions. Over time, the Enterprise thinks that the MAV could include close to $50 to $60 billion of subservicing UPB for Ocwen.

The transaction is expected to shut in the very first 50 percent of 2021, issue to a variety of closing conditions, which include regulatory and other approvals.

At the closing of the transaction, Oaktree may exercising an choice to order up to 4.9% of the Firm’s excellent popular inventory at a price for every share of $23.15. In addition, the Enterprise will situation Oaktree warrants to obtain an additional 3% of the Firm’s frequent inventory at an training rate of $24.31.

The Corporation also introduced that it has been awarded numerous contracts to provide subservicing, portfolio recapture and MSR transaction solutions with a projected subservicing volume of $16 to $24 billion. Ocwen expects to commence boarding loans in the initially quarter of 2021. Also, the Corporation signed a few bulk MSR buy agreements totaling approximately $16 billion, which are predicted to shut by December 31, 2020 and transfer in the very first quarter of 2021.

The Company originated somewhere around $10 billion of volume for the very first two months of the fourth quarter, exceeding its volume ranges for the comparable period in the third quarter by 32%. The Enterprise also additional 23 new correspondent sellers and MSR co-challenge consumers during the first two months of the fourth quarter.

Glen A. Messina, President and CEO of Ocwen, stated, “We are extremely delighted to announce our new strategic relationship with Oaktree, a main world-wide investment business, and the proposed transaction to start an MSR expenditure motor vehicle. This transaction will support our subservicing and portfolio recapture expansion aims, push greater scale and give entry to development cash in purchase to obtain MSRs in a price tag and danger effective way. We seem forward to functioning with Oaktree to start MAV and comprehend its growth likely.”

Messina ongoing, “The sector has welcomed our enterprise profits product and the crew has finished a great career advertising our total portfolio of servicing choices. Our recent signings are a testament to the team’s challenging work, power of our service offerings and new client-concentrated technology. We are excited to welcome our new clientele to the Ocwen spouse and children and to enable them improve their enterprise.”

About Ocwen Economic Corporation

Ocwen Economical Corporation (NYSE: OCN) is a main non-bank home finance loan servicer and originator supplying methods through its main models, PHH Home finance loan and Liberty Reverse Mortgage. PHH Property finance loan is one particular of the biggest servicers in the country, targeted on providing a range of servicing and lending courses. Liberty is just one of the nation’s greatest reverse mortgage loan companies dedicated to education and learning and giving loans that assistance customers meet their private and fiscal wants. We are headquartered in West Palm Seashore, Florida, with workplaces in the United States and the U.S. Virgin Islands and operations in India and the Philippines, and have been serving our prospects since 1988. For extra information and facts, remember to pay a visit to our internet site (

Forward-On the lookout Statements

This press launch consists of ahead-on the lookout statements within the which means of Portion 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Exchange Act of 1934, as amended. These forward-on the lookout statements might be identified by a reference to a long run period or by the use of ahead-hunting terminology. Ahead-hunting statements are commonly discovered by words these as “expect”, “feel”, “foresee”, “foresee”, “intend”, “estimate”, “intention”, “tactic”, “approach” “target” and “venture” or conditional verbs these types of as “will”, “might”, “should”, “could” or “would” or the detrimental of these phrases, even though not all forward-wanting statements contain these text. Ahead-on the lookout statements by their mother nature deal with issues that are, to various levels, unsure. We are in the midst of a period of time of money marketplaces volatility and dealing with substantial improvements in the mortgage lending and servicing ecosystem which have magnified these types of uncertainties. Visitors should really bear these elements in mind when taking into consideration these statements and must not location undue reliance on these statements.

Forward-seeking statements include a selection of assumptions, pitfalls and uncertainties that could result in genuine results to differ materially. In the earlier, actual success have differed from all those advised by ahead seeking statements and this might materialize once more. Vital factors that could lead to true benefits to vary materially from people advised by the ahead-looking statements contain, but are not minimal to, the capacity to receive regulatory approvals and the pleasure of the closing situations under the MAV transaction arrangement and the predicted timing for closing the relevant transactions, uncertainty relating to the long term impacts of the COVID-19 pandemic, such as with regard to the response of the U.S. govt, state governments, the Federal Nationwide Mortgage Affiliation (Fannie Mae), the Federal Household Mortgage Mortgage loan Company (Freddie Mac, and together with Fannie Mae, the GSEs), the Federal government Countrywide Home loan Affiliation (Ginnie Mae) and regulators, as perfectly as the possible for ongoing disruption in the economical marketplaces and in professional action usually, elevated unemployment, and other money challenges going through our borrowers impacts on our functions resulting from staff health issues, social distancing measures and our change to bigger utilization of remote get the job done arrangements the adequacy of our money sources, including our resources of liquidity and capacity to market, fund and get better servicing advances, ahead and reverse entire financial loans, and HECM and ahead loan buyouts and put backs, as perfectly as repay, renew and increase borrowings, borrow added quantities as and when required, meet up with our MSR or other asset financial commitment goals and comply with our debt agreements, which includes the monetary and other covenants contained in them greater servicing expenditures primarily based on elevated borrower delinquency levels or other variables our capacity to obtain predicted tax refunds, which includes on the timeframe envisioned the future of our extensive-expression romance and remaining servicing agreements with New Residential Expenditure Corp. (NRZ), our capacity to execute an orderly and timely transfer of obligations in relationship with the beforehand disclosed termination by NRZ of the PMC subservicing agreement, like our potential to answer to any issues elevated by regulators, loan companies and other contractual counterparties in connection with these kinds of transfer our ability to well timed alter our cost construction and operations as the mortgage transfer method is being done in response to the earlier disclosed termination by NRZ of the PMC subservicing agreement our ability to continue to strengthen our economic overall performance through price tag re-engineering attempts and other actions our means to carry on to develop our origination organization and maximize our origination volumes in a competitive market and unsure fascination charge atmosphere uncertainty related to claims, litigation, cease and desist orders and investigations brought by governing administration agencies and private functions pertaining to our servicing, foreclosures, modification, origination and other procedures, such as uncertainty relevant to previous, existing or upcoming investigations, litigation, cease and desist orders and settlements with point out regulators, the Client Monetary Defense Bureau (CFPB), State Lawyers Common, the Securities and Trade Commission (SEC), the Section of Justice or the Office of Housing and City Development (HUD) and steps introduced less than the Fake Promises Act with regards to incentive and other payments manufactured by governmental entities adverse outcomes on our company as a final result of regulatory investigations, litigation, cease and desist orders or settlements and connected responses by crucial counterparties, like lenders, the GSEs and Ginnie Mae our skill to comply with the conditions of our settlements with regulatory businesses, as very well as standard regulatory prerequisites, and the expenditures of doing so enhanced regulatory scrutiny and media attention any adverse developments in present authorized proceedings or the initiation of new legal proceedings our capacity to interpret appropriately and comply with liquidity, net well worth and other monetary and other requirements of regulators, the GSEs and Ginnie Mae, as properly as those established forth in our financial debt and other agreements our capability to comply with our servicing agreements, such as our ability to comply with our agreements with, and the requirements of, the GSEs and Ginnie Mae and retain our seller/servicer and other statuses with them our capability to fund long run attracts on existing loans in our reverse mortgage portfolio our servicer and credit scores as very well as other steps from numerous score companies, together with the impact of prior or future downgrades of our servicer and credit score scores as perfectly as other dangers and uncertainties in depth in Ocwen’s studies and filings with the SEC, which include its once-a-year report on Sort 10-K for the yr finished December 31, 2019 and its current and quarterly reports considering the fact that this kind of date. Any person wishing to realize Ocwen’s business enterprise should really evaluation its SEC filings. Our ahead-wanting statements discuss only as of the day they are built and, we disclaim any obligation to update or revise ahead-on the lookout statements whether or not as a consequence of new information and facts, upcoming functions or normally.

FOR Further more Details Get hold of:


Is there a dilemma with this push release? Speak to the resource provider Comtex at [email protected]. You can also speak to MarketWatch Purchaser Service through our Customer Middle.

(C) Copyright 2020 GlobeNewswire, Inc. All legal rights reserved.

The MarketWatch News Division was not involved in the creation of this material. © All rights reserved. | Newsphere by AF themes.