WEST PALM BEACH, Florida, June 18, 2021 (GLOBE NEWSWIRE) – Ocwen Finance Corporation (NYSE: OCN) (“Ocwen” or “Company”), a leading non-bank mortgage provider, announced today that a wholly-owned subsidiary property, PHH Mortgage Corporation (“PHH”), entered into an agreement with Reverse Mortgage Solutions, Inc. (“RMS”) and its parent company, Mortgage Assets Management, LLC (“MAM”), to acquire virtually all of the operations, assets and employees of the RMS reverse mortgage platform. MAM is a subsidiary of investment funds managed by Waterfall Asset Management LLC (Waterfall). The company will also acquire all remaining equity interests in RMS Real Estate Owned, REO Management Solutions, LLC (“REO”).
Under the terms of the agreement, contracts to subsidize the reverse residential mortgage loan currently serviced by RMS will be transferred to PHH. As of March 31, 2021, RMS had serviced about 35,000 reverse mortgages, representing about $ 7.8 billion in outstanding principal. As part of the deal, PHH expects to take over the vast majority of RMS reverse servicing, and REO and PHH employees will become a subcontractor under a five-year agreement to service RMS and MAM’s reverse mortgages.
The cumulative purchase price is estimated at approximately $ 12.4 million and will be subject to certain post-close adjustments. The deal is expected to close in the third quarter of 2021, subject to appropriate regulatory approvals and other normal closing conditions.
Glen A. Messina, President and CEO of Ocwen, said: “We are very pleased to announce the proposed acquisition of RMS reverse mortgage systems and REO platforms. This acquisition is expected to double our portfolio of return service / sub-service and provide us with a high quality return service platform, experienced people and customized reverse technology. In addition to our ongoing relationship with Waterfall across the full range of reverse mortgage products, we are delighted and proud to have expanded our partnership with them through a long term subsidy agreement and supported their asset growth and investment goals in the reverse mortgage industry. ”
Messina added, “Our Liberty reverse mortgage platform is one of the leading reverse mortgage lenders in the industry and we believe this deal complements our existing capabilities and further strengthens our leadership position. We look forward to the completion of this transaction, welcome the RMS team, customers and customers to the Ocwen / PHH family and continue our long-term partnership with Waterfall. “
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 may be identified by reference to a future period or by using forward-looking terminology and include statements concerning, among other things, the expected closure of the transaction and the Company’s expectations of the benefits to be achieved as a result of the transaction. 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, the ability of PHH to close the announced transaction using RMS, including the ability to obtain the necessary regulatory approvals and other the usual requirements. closing conditions by agreement with RMS and MAM; the Company’s ability to integrate the acquired mortgage servicing business and RMS and REO employees with the Company’s existing operations and to obtain the expected benefits of the transaction; the Company’s ability to close other recently announced acquisitions of Wholesale Mortgage Service Rights (“MSRs”), including the ability to obtain regulatory approvals, enter into final financial agreements, and comply with closure conditions and deadlines; the Company’s ability to meet new service targets until 2021; uncertainty surrounding the continued impact of the COVID-19 pandemic, including the response of the U.S. government, state governments, the Federal National Mortgage Association (Fannie Mae), the Federal Mortgage Corporation (Freddie Mac) and with Fannie Mae, GSE), State National the mortgage association (Ginnie Mae) and regulators; the possibility of continued disruptions related to COVID-19 in financial markets and in commercial activities in general, increasing unemployment and other financial difficulties faced by the Company’s borrowers; the adequacy of the Company’s financial resources, including its sources of liquidity and the ability to sell, finance and recover service advances, forward and reverse whole loans, as well as equity conversion mortgages and forward repurchases, and to repay, renew and expand borrowings, borrow additional amounts as appropriate, achieve its objectives in relation to MSR or other investments in assets and comply with its debt agreements, including the financial and other conditions contained therein; an increase in service costs due to an increase in the level of borrowers’ delinquencies or other factors; and other risks and uncertainties detailed in Ocwen’s reports and filings to the SEC, including its Form 10-K annual report for the year ended December 31, 2020, as well as current and quarterly reports from that dates. Forward-looking statements are valid only as of the date they are made and Ocwen disclaims any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
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