Ocwen Loan Servicing entered into a mortgage servicing rights purchase and sale agreement with OneWest Bank.
Ocwen (OCN) has agreed to purchase $78 billion in unpaid principal balance of MSRs and related servicing advance receivables, in each case, measured as of April 30, according to an 8-K filing.
No operations or other assets are being purchased in the transaction.
The aggregate purchase price will be $2.53 billion, with $46 million of the aggregate purchase price paid in respect of the MSRs and $2.1 billion to be paid in respect of the servicing advances.
Ocwen plans to finance the transaction primarily with a combination of cash on-hand, cash generated through operations and available credit.
Earlier this month, Home Loan Servicing Solutions, which purchases some mortgage business from sister company Ocwen, brought a mortgage servicer advance receiveable to the market.
The asset-backed securitization was collateralized by Ocwen serviced mortgages, comprised of former Homeward Residential Holdings paper.
The company has posted solid growth in the mortgage servicing sector this year and its first-quarter profits have the numbers to prove it.
Ocwen more than doubled its earnings as the firm boarded new MSRs and drove down costs on delinquencies by working through troubled loans using deeds-in-lieu of foreclosure and loan modifications among other solutions.
