Skip to main content

Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Director of Events
Jun 18, 2021

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation entered into an agreement with Reverse Mortgage Solutions and its parent, Mortgage Assets Management, LLC to acquire substantially all of the operations, assets and employees of the RMS reverse mortgage servicing platform.

Under the terms of the agreement, subservicing contracts for the reverse residential mortgages currently subserviced by RMS would be assigned to PHH. As of March 31, 2021, RMS serviced approximately 35,000 reverse mortgages, or approximately $7.8 billion in unpaid principal balance, according to a press release. As part of the transaction, PHH expects to assume the vast majority of the RMS reverse servicing and REO employees and PHH will become the subservicer under a five-year subservicing agreement for reverse mortgages owned by RMS and MAM.

The aggregate purchase price is estimated to be approximately $12.4 million and will be subject to certain post-closing adjustments. The transaction is expected to close in the third quarter of 2021, following regulatory approvals and customary closing operations.

“The acquisition is expected to double our reverse servicing/subservicing portfolio and will provide us with a high-quality reverse servicing platform, experienced people and customized reverse technology,” said Glen A. Messina, president and CEO of Ocwen.

“Our Liberty Reverse Mortgage platform is one of the premier reverse mortgage lenders in the industry, and we believe this transaction complements our existing capabilities and further solidifies our leadership position.”

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Jun 18, 2021
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024
Guild Mortgage Reports Net Loss In 2023 Amid Acquisition Spree

San Diego-based lender reports net loss for 2023 despite aggressive growth strategy.

Mar 13, 2024
UWM to Cover Upfront Costs of Credit Pulls for Broker Partners

UWM's move comes amid rising credit report charges, providing relief to LOs.

Mar 13, 2024
loanDepot's Losses Mount, Despite Optimisim

Net losses for the fourth quarter totaled $59.8 million – a 43% jump from the third quarter “primarily due to revenues decreasing more than the decrease in expenses.”

Mar 13, 2024
HUD Secretary Steps Down

HUD Secretary Marcia Fudge to depart the Biden administration by the end of the month.

Mar 11, 2024