Ocwen Loan Servicing, LLC and Walter Investment Management Corp. Receive U.S.
Bankruptcy Court Approval to Complete Purchase of Residential Capital, LLC
Mortgage Servicing and Origination Businesses
NEW YORK, Nov. 21, 2012 (GLOBE NEWSWIRE) -- Ocwen Loan Servicing, LLC, the
mortgage servicing arm of Ocwen Financial Corporation (NYSE:OCN), and its
joint bidding partner Walter Investment Management Corp. (NYSE MKT:WAC), today
received approval from the U.S. Bankruptcy Court for the Southern District of
New York to complete their purchase of the mortgage servicing and origination
businesses from Residential Capital, LLC ("ResCap") and certain of its
affiliates pursuant to the previously announced Asset Purchase Agreement dated
November 2, 2012.
Ron Faris, CEO of Ocwen said, "The approval of the Bankruptcy Court is an
important next step towards completing our acquisition of ResCap's private
label and Freddie Mac servicing assets which we believe will significantly
advance Ocwen's strategic goals to expand our servicing platform and
The sale to Ocwen and Walter for a purchase price of approximately $3 billion
was recommended to the court by ResCap's board and management and supported by
the unsecured creditors' committee. The transaction is expected to close in
the first quarter of 2013. The sale is subject to customary closing conditions
for a transaction of this nature, including the approval of Freddie Mac,
Fannie Mae and various government agencies. The final purchase price is
subject to adjustment based on the unpaid principal amounts of the related
mortgage servicing assets and other customary adjustments. Neither Ocwen nor
Walter anticipates the need to raise any additional equity capital to close
About Ocwen Financial Corporation
Ocwen Financial Corporation is a leading provider of residential and
commercial loan servicing, special servicing and asset management services.
Ocwen is headquartered in Atlanta, Georgia, with additional offices in West
Palm Beach and Orlando, Florida, Houston, Texas, St. Croix, the United States
Virgin Islands and Washington, DC, and support operations in India and
Uruguay. Utilizing our global infrastructure, proprietary technology,
world-class training and processes, we provide solutions that help homeowners
and make our clients' loans worth more.
About Walter Investment Management Corp.
Walter Investment Management Corp. is an asset manager, mortgage servicer and
mortgage portfolio owner specializing in less-than-prime, non-conforming and
other credit-challenged mortgage assets. Based in Tampa, Fla., the company
services a diverse loan portfolio.
CONTACT: John V. Britti
Executive Vice President & CFO
T: (561) 682-7535
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