CEO Ronald Faris is shrinking the company after experiencing a 74% drop in shares since last February.
Ocwen Financial Corp. has reached an agreement with Nationstar Mortgage to sell a servicing portfolio on $9.8 billion of loans, as CEO Ronald Faris shrinks the company amid a mountain of regulatory issues. The portfolio includes 81,000 performing loans owned by Freddie Mac.
Subject to a definitive agreement, approvals by Freddie Mac and FHFA and other conditions, Ocwen and Nationstar expect the transaction to close by the end of March and the loan servicing to transfer in April 2015.
"This transaction represents the first step in the execution of our previously-announced strategy to transfer certain types of non-strategic servicing," said Faris. "We look forward to exploring additional MSR transactions with Nationstar."
Faris is seeking to rebound from a 74% share slide in the 12 months through Feb. 20 prompted by regulatory probes. Ocwen agreed in December to improve service as part of an agreement with the New York regulators.
Subject to a definitive agreement, approvals by Freddie Mac and FHFA and other conditions, Ocwen and Nationstar expect the transaction to close by the end of March and the loan servicing to transfer in April 2015.
"This transaction represents the first step in the execution of our previously-announced strategy to transfer certain types of non-strategic servicing," said Faris. "We look forward to exploring additional MSR transactions with Nationstar."
Faris is seeking to rebound from a 74% share slide in the 12 months through Feb. 20 prompted by regulatory probes. Ocwen agreed in December to improve service as part of an agreement with the New York regulators.
