Ocwen Financial Corporation, a leading non-bank mortgage servicer and originator, announced that its wholly-owned subsidiary, PHH Mortgage Corporation (“PHH”), has completed the previously announced transaction with Reverse Mortgage Solutions, Inc. (“RMS”) and its parent, Mortgage Assets Management, LLC (“MAM”), to acquire substantially all of the RMS reverse mortgage servicing platform and all of the outstanding equity interests in the RMS Real Estate Owned business, REO Management Solutions, LLC (“REO”). MAM is a subsidiary of investment funds managed by Waterfall Asset Management, LLC (“Waterfall”).
Concurrent with the closing of the transaction, PHH became the subservicer under a five-year subservicing agreement for reverse mortgages owned by RMS and MAM and assumed approximately 350 reverse servicing and REO employees. In addition, certain third-party subservicing agreements were assigned from RMS to PHH. As a result, PHH became the subservicer for approximately 57,000 reverse mortgages, or approximately $14.3 billion in unpaid principal balance (“UPB”), which were transferred to PHH’s reverse servicing platform concurrent with the closing. Additionally, PHH expects to begin servicing its owned portfolio of approximately 34,000 reverse mortgages, or a UPB of approximately $6.7 billion, in the fourth quarter of 2021, subject to final approvals by counterparties and other customary approvals and conditions.
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The aggregate purchase price at closing was approximately $12.4 million, subject to certain holdbacks and adjustments.
Glen A. Messina, President and CEO of Ocwen, said, “We are very pleased to complete this transaction which triples our total owned and subserviced reverse portfolio and enables additional growth opportunities through a five-year subservicing agreement. The acquisition provides us with a high-quality reverse servicing platform, experienced people and customized reverse technology and supports our strategy to build an in-house reverse servicing platform. We believe this transaction enables us to significantly grow our reverse servicing portfolio and positions us as the only mortgage company that originates, securitizes and directly services reverse mortgage customers and clients.”
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Messina added, “We are excited to officially welcome a highly talented group of employees to our Company, and we look forward to our expanded partnership with Waterfall to continue supporting their growth objectives in the reverse mortgage industry.”
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