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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.”