Home Loan Servicing Solutions Ltd. has announced that HLSS and HLSS Holdings LLC completed an acquisition from Ocwen Financial Corporation and its affiliates and subsidiaries of rights to receive servicing fees and related servicing advances for a servicing portfolio of sub-prime and Alt-A residential mortgage loans. This transaction resulted in the acquisition of Rights to MSRs with approximately $15.9 billion in unpaid principal balance of mortgage loans. The characteristics of these mortgage servicing assets are similar to those previously acquired from Ocwen, and we expect this transaction to be accretive to earnings.
Home Loan Servicing Solutions Ltd. is an internally-managed owner of non-agency mortgage servicing assets with historically stable valuations and cash flows. HLSS' assets are predominately mortgage servicing advances that, along with the related servicing rights, are over-collateralized 22 times by residential real estate. HLSS' objective is to generate stable, recurring fee-based earnings and dividends throughout the economic cycle.