Ocwen to Buy Rights to Service $78 Billion of Mortgages
Ocwen Financial Corp. (OCN), a provider of loan and asset-management services, agreed to buy contracts to handle payment collections on about $78 billion of mortgages from OneWest Bank FSB.
The servicing rights are being purchased for $2.53 billion, Ocwen said today in a U.S. Securities and Exchange Commission filing. The deal is likely to be completed by the end of the year, the West Palm Beach, Florida-based company said.
Ocwen is seeking to become one of the country’s largest mortgage servicers. Chief Executive Officer Ronald Faris is betting the company can profit as some banks leave the $9.6 trillion industry. OneWest is the successor to IndyMac Bancorp, which was seized by the Federal Deposit Insurance Corp. in 2008.
The filing was made after the close of regular U.S. trading. Ocwen rose 3.6 percent to $45.74 at the close in New York. Its shares have gained 32 percent this year.
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