WEST PALM BEACH, Florida, May 24, 2021 (GLOBAL) – Ocwen Finance Corporation (NYSE: OCN) (“Ocwen” or “Company”), a leading non-bank mortgage provider, announced today that a 100% subsidiary of PHH Mortgage Corporation (“PHH”) has entered into an agreement with AmeriHome Mortgage Company, LLC (“AmeriHome”) for the wholesale purchase of Mortgage Service Rights (“MSR”) with a total outstanding principal. approximately $ 48 billion.
MSR’s core portfolio consists of approximately 178,000 mortgages sold or securitized by Freddie Mac and Fannie Mae. As of March 31, 2021, PHH has serviced approximately 1.1 million loans and this transaction is expected to increase its overall servicing portfolio by about 16%. The deal is expected to close at the end of the second quarter of 2021 subject to certain closing conditions, including regulatory approval and the completion of an agreement between PHH and Western Alliance Bank to finance the MSR acquisition. The loans underpinning the MSR portfolio are expected to be transferred to PHH in September 2021.
Glen A. Messina, President and CEO of Ocwen, said: “We are delighted to announce our MSR purchase agreement with AmeriHome. Overall, we have a very strong record of adding new services through our channels of origin, and this agreement marks a milestone in our growth target of adding up to $ 150 billion in new services in 2021. We believe that the completion of a wholesale MSR transaction will reflect the strength, quality and scalability of our service platform, and we look forward to welcoming our new customers to the Ocwen family. ”
During Ocwen’s first quarter 2021 P&L report, the Company reported that it entered into letters of intent for bulk MSR purchases with a total outstanding principal balance of approximately $ 68 billion, including an approximately $ 48 billion MSR bulk portfolio with AmeriHome.
About Ocwen Financial Corporation
Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage provider offering solutions through its flagship brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest service centers in the country, specializing in providing a variety of service and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders, providing education and loans to help clients meet their personal and financial needs. We are headquartered in West Palm Beach, Florida with offices in the US and the US Virgin Islands as well as India and the Philippines. We have been serving our clients since 1988. For more information visit our website (www.ocwen.com).
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Stock Exchange Act of 1934, as amended. These forward-looking statements can be identified by reference to a future period or by using forward-looking terminology. Forward-looking statements are commonly identified with words such as “expect,” “believe,” “anticipate,” “anticipate,” “intend,” “estimate,” “goal,” “strategy,” “plan,” “goal,” and “Project ”Or conditional verbs such as“ will ”,“ may ”,“ should ”,“ could ”or“ would ”, or negative meanings of these terms, although not all forward-looking statements contain these words. Forward-looking statements by their nature refer to matters that are more or less vague. Readers should keep these factors in mind when considering such claims and should not place undue reliance on such claims.
Forward-looking statements include a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those anticipated in the forward-looking statements and this could happen again. Important factors that could cause actual results to differ materially from those suggested in the forward-looking statements include, but is not limited to, PHH’s ability to close the announced agreement with AmeriHome, including the ability to obtain regulatory approvals, enter into final financial agreements. … , and fulfill other closing conditions, as well as the time for this; our ability to close other recently announced bulk acquisitions of MSR and the timeline for doing so; the impact of transactions on our operations, if completed; our ability to meet new service targets for 2021; uncertainty about the future impact of the COVID-19 pandemic, including the response of the US government, state governments, the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac and with Fannie Mae, GSE), State the national mortgage association (Ginnie Mae) and regulators, and the impact on borrowers and the economy in general; the sufficiency of our financial resources, including our sources of liquidity and the ability to sell, fund and recover service loans, forward and reverse whole loans, and repurchases and repayments of HECM loans and forward contracts, and repayment, renewal and renewal of loans, borrowing additional the amounts, when and when necessary, to meet our objectives for MSR or other investments in assets and to comply with our debt agreements, including the financial and other conditions contained therein; an increase in service costs due to an increase in the level of delinquencies of borrowers or other factors; our ability to collect expected tax refunds, including within the expected time frame; the future of our long-term relationship and remaining service agreements with New Residential Investment Corp. (NRZ); our ability to continue to improve our financial performance through cost restructuring and other actions; our ability to continue to expand our lending business and increase lending volumes in a competitive market and interest rate uncertainty; uncertainty related to claims, lawsuits, termination and abstinence orders and investigations filed by government agencies and private parties regarding our service, foreclosure, modification, origin and other practices, including uncertainty related to past, present or future investigations, litigation, termination and abstinence orders and settlements with government regulators, the Financial Consumer Protection Bureau (CFPB), the Attorneys General, the Securities and Exchange Commission (SEC) and the Department of Justice or the Department of Housing and Urban Development (HUD); adverse impact on our business as a result of regulatory investigations, litigation, termination and abstinence orders or settlements and related responses from key counterparties, including creditors, GSE and Jeannie Mae; our ability to comply with the terms of our settlements with regulators, as well as general regulatory requirements and associated costs; increased regulatory oversight and media attention; any adverse change in an existing trial or the start of a new trial; our ability to correctly interpret and comply with the financial and other requirements of regulators, GSE and Ginny Mae, as well as those set out in our debt and other agreements; our ability to comply with our service agreements, including our ability to comply with our agreements and requirements of GSE and Jeannie Mae, and maintain seller / service center status and other statuses with them; our ability to fund future proceeds on existing loans in our reverse mortgage portfolio; our service and credit ratings and other actions by various rating agencies, including the impact of a previous or future downgrade of our service and credit ratings; and other risks and uncertainties detailed in Ocwen’s reports and filings to the SEC, including our 10-K annual report for the year ended December 31, 2020, and current and quarterly reports from that date. Anyone looking to understand Okwen’s business should read our SEC filings. Our forward-looking statements are valid only as of the date they are made and we disclaim any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
FOR MORE INFORMATION CONTACTS