Ocwen to Sell $9.8 Billion Servicing Portfolio to NationstarSonali Basak
Ocwen Financial Corp. agreed to sell a servicing portfolio on $9.8 billion of loans to Nationstar Mortgage Holdings Inc. as Chief Executive Officer Ronald Faris shrinks the company amid rising consumer complaints.
Ocwen and Nationstar advanced in New York trading as Faris said he’ll weigh more transactions with his rival. The deal is expected to be completed by March 31, Atlanta-based Ocwen said Monday in a statement that didn’t disclose terms.
Faris is seeking to rebound from a 74 percent share slide in the 12 months through Feb. 20 prompted by regulatory probes. He agreed in December to improve service as part of an agreement with the New York financial watchdog.
“This transaction represents the first step” in a strategy to simplify operations, Faris said in the statement. “We look forward to exploring additional mortgage-servicing-rights transactions with Nationstar.”
Ocwen climbed 4.7 percent to $10:05 at 1:19 p.m. Nationstar jumped 11 percent to $31.06, erasing its loss for the past 12 months.
Nationstar has announced deals for more than $40 billion of servicing portfolios since the middle of last year, the company said in a January statement. Servicers collect payments from borrowers and pass them on to mortgage lenders or investors, minus fees, and handle foreclosures when borrowers don’t pay.
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