Ocwen Financial Corporation announced that its wholly owned subsidiary, PHH Mortgage Corporation, entered into an agreement with Reverse Mortgage Solutions Inc. (RMS) and his parent, Mortgage Assets Management LLC (MAM)to acquire virtually all operations, assets and employees of the RMS reverse mortgage service platform. MAM is a subsidiary of investment funds managed by LLC “Waterfall Asset Management”…
In addition, as part of the deal, PHH will acquire all of the remaining equity stakes in real estate owned RMS, REO Management Solutions LLC.
Under the terms of the agreement, contracts to subsidize reverse mortgage residential mortgages, currently subsidized by RMS, will be transferred to PHH. As of March 31, 2021, RMS had serviced about 35,000 reverse mortgages, or about $ 7.8 billion in outstanding principal. As part of the deal, PHH expects to take over the majority of RMS ‘reverse servicing and REO staff, and PHH will become a subcontractor under a five-year reverse mortgage servicing agreement owned by RMS and MAM.
“We are very pleased to announce the proposed acquisition of the RMS reverse mortgage and REO platforms,” said Glen A. Messina, President and CEO of Ocwen. “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 current relationship with Waterfall on a 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. ”
The cumulative purchase price is estimated at approximately US $ 12.4 million and may be adjusted after the close. The deal is expected to close in the third quarter of 2021, subject to appropriate regulatory approvals and other normal closing conditions.
Just last month, Ocwen again through its subsidiary PHH, agreed to acquire Mortgage Services Rights (MSR) LLC AmeriHome Mortgage Company Glen A. Messina with a total outstanding principal of approximately $ 48 billion.