Ocwen to Buy Reverse Mortgage Solutions Assets for $ 12 Million

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Ocwen Financial is expanding its reverse mortgage business by acquiring operations, assets and employees of the Reverse Mortgage Solutions platform for $ 12.4 million.

RMS was last acquired for $ 762 million by Mortgage Assets Management (a subsidiary of Waterfall Asset Management) under Ditech bankruptcy auction in September 2019. Walter Asset Management is Ditech’s name before it emerged from the original bankruptcy filing. in February 2018 – acquired RMS for $ 120 million in September 2012

RMS has serviced about 35,000 reverse mortgages, or about $ 7.8 billion in outstanding principal as of March 31, 2021. These loans will now be serviced by Ocwen and its subsidiary PHH under a five-year agreement. In addition, PHH will take over the existing sub-service contracts that RMS has.

Ocwen also buys outstanding stakes in RMS’s REO Management Solutions business.

“This acquisition is expected to double our back-service / sub-service portfolio and provide us with a high quality back service platform, experienced people and customized reverse technology,” Glen Messina, President and CEO of Ocwen, said in a press release. “In addition to our current relationship with Waterfall on a range of reverse mortgage products, we are delighted and proud to expand our partnership with them through a long-term agreement to subsidize and support the growth of their assets and investment objectives in the reverse mortgage industry.”

The deal is expected to close in the third quarter, subject to regulatory approval.

Ocwen went into the reverse mortgage business in April 2013 when he bought what is now called Liberty Reverse Mortgage. from Genworth Financial for $ 22 million in cash. Liberty’s portfolio contains approximately 35,000 loans with an outstanding principal of $ 6.7 billion.



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