Ocwen Financial Intends to Sell $9.6 Billion Portfolio of Mortgage Servicing Rights to Green Tree
March 18 2015 - 11:34AM
Ocwen Financial Corporation (NYSE:OCN), announced
today that its subsidiary, Ocwen Loan Servicing, LLC ("Ocwen") and
Green Tree Loan Servicing LLC, an indirectly held, wholly owned,
subsidiary of Walter Investment Management Corp. (NYSE:WAC)
(collectively "Green Tree"), have signed an agreement in principle
for the sale by Ocwen of residential mortgage servicing rights on a
portfolio consisting of approximately 55,500 largely performing
loans owned by Freddie Mac with a total principal balance of
approximately $9.6 billion. Subject to a definitive agreement,
approvals by Freddie Mac and FHFA and other customary conditions,
the transaction is expected to close by April 30, 2015 and the loan
servicing to transfer in May 2015.
Ron Faris, Ocwen's CEO, said "We are pleased with the progress
we are making on executing our plan. Over the next several months,
we expect to generate proceeds of at least $650 million from sales
and transfers of mortgage servicing rights. We are also
committed to ensuring a smooth and accurate transfer of information
to the buyers of these mortgage servicing rights."
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding
company which, through its subsidiaries, is engaged in the
servicing and origination of mortgage loans. Ocwen is headquartered
in Atlanta, Georgia, with offices throughout the United States and
support operations in India and the Philippines. Utilizing
proprietary technology, global infrastructure and superior training
and processes, Ocwen provides solutions that help homeowners and
make our clients' loans worth more. Ocwen may post information that
is important to investors on its website (www.Ocwen.com).
About Walter Investment Management
Corporation
Walter Investment Management Corp. is diversified mortgage
banking firm focused primarily on the servicing and origination of
residential loans, including reverse loans. Based in Tampa,
Fla., the Company has over 6,700 employees and services a diverse
loan portfolio. For more information about Walter
Investment Management Corp., please visit the Company's website at
www.walterinvestment.com. The information on our website is
not a part of this release.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Forward-looking statements
and involve a number of assumptions, risks and uncertainties that
could cause actual results to differ materially.
Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, the following: adverse effects on
our business as a result of recent regulatory settlements;
reactions to the announcement of such settlements by key
counterparties; increased regulatory scrutiny and media attention,
due to rumors or otherwise; uncertainty related to claims,
litigation and investigations brought by government agencies and
private parties regarding our servicing, foreclosure, modification
and other practices; any adverse developments in existing legal
proceedings or the initiation of new legal proceedings; our ability
to effectively manage our regulatory and contractual compliance
obligations; the adequacy of our financial resources, including our
sources of liquidity and ability to fund and recover advances,
repay borrowings and comply with debt covenants; our servicer and
credit ratings as well as other actions from various rating
agencies, including the impact of recent downgrades of our servicer
ratings; volatility in our stock price; the characteristics of our
servicing portfolio, including prepayment speeds along with
delinquency and advance rates; our ability to contain and reduce
our operating costs; our ability to successfully modify delinquent
loans, manage foreclosures and sell foreclosed properties;
uncertainty related to legislation, regulations, regulatory agency
actions, government programs and policies, industry initiatives and
evolving best servicing practices; as well as other risks detailed
in Ocwen's reports and filings with the Securities and Exchange
Commission (SEC), including its annual report on Form 10-K/A for
the year ended December 31, 2013 (filed with the SEC on 08/18/14)
and its quarterly report on Form 10-Q for the quarter ended
September 30, 2014 (filed with the SEC on 10/31/14). Anyone wishing
to understand Ocwen's business should review its SEC filings.
Ocwen's forward-looking statements speak only as of the date they
are made and, except for our ongoing obligations under the U.S.
federal securities laws, we undertake no obligation to update or
revise forward-looking statements whether as a result of new
information, future events or otherwise.
CONTACT: Investors:
Stephen Swett
T: (203) 614-0141
E: shareholderrelations@ocwen.com
Media:
Sard Verbinnen & Co
Margaret Popper/David Millar
T: (212) 687-8080
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