Ocwen Loan Servicing LLC is reported to be purchasing HomEq Servicing, the mortgage servicing business of Barclays Capital, for $1.3 billion. Barclays will provide Ocwen, a subsidiary of Ocwen Financial Corporation (OCN), with $1 billion in secured financing and may help Ocwen to raise funding from third parties. The sale is slated to be finalized in the third quarter of 2010 following regulatory approval.

Under terms of the deal, Ocwen will receive the mortgage servicing rights and the servicing platform of HomEq Servicing. Click to continue