Ocwen Financial expands its reverse mortgage servicing business by acquiring the operations, assets, and people of the Reverse Mortgage Solutions platform for $ 12.4 million.
RMS was last bought by Mortgage Assets Management (a subsidiary of Waterfall Asset Management) for $ 762 million in Ditech's bankruptcy auction in September 2019. Walter Asset Management – Ditech's name before it emerged from his first bankruptcy filing in February 2018 – bought RMS for $ 120 million in September 2012.
RMS was servicing approximately 35,000 reverse mortgages, or approximately $ 7.8 billion in unpaid principal, as of March 31, 2021. These loans will now be serviced by Ocwen and its PHH subsidiary under a five-year agreement. In addition, PHH will take over the existing sub-servicing contracts from RMS.
Ocwen is also acquiring the outstanding stakes in RMS & # 39; s real estate business REO Management Solutions.
"The acquisition is expected to double our reverse service / subservicing portfolio and provide us with a high quality reverse service platform, experienced people and bespoke reverse technology," said Glen Messina, President and CEO of Ocwen, in a press release . "In addition to our current relationship with Waterfall across the reverse mortgage product line, we are pleased and honored to expand our partnership with you through the long-term subservicing agreement to support your asset growth and investment goals in the reverse mortgage industry."
The transaction is expected to close in the third quarter, subject to regulatory approvals.
Ocwen entered the reverse mortgage business in April 2013 when it bought Liberty Reverse Mortgage from Genworth Financial for $ 22 million in cash. Liberty has a portfolio of approximately 35,000 loans with an unpaid principal of $ 6.7 billion.