Ocwen Discloses Scuttled MSR Deal, Cuts New LOC with Barclays email@example.com
Ocwen Financial during the second quarter scuttled a transaction to buy $19.5 billion in mortgage servicing rights due to declining interest rates, according a new 8-K filing with the Securities and Exchange Commission.
The publicly traded nonbank said the rate drop “triggered a pricing renegotiation under the transaction terms. As a result of the renegotiation, the company and the MSR seller did not agree to new pricing terms…” The seller was not identified.
The company also disclosed that its subsidiary PHH Mortgage entered into a committed financing facility – secured by “certain” Fannie Mae and Freddie Mac MSRs – with Barclays Bank.
In connection with the line of credit, PHH entered into a repurchase agreement with the bank whereby it can borrow up to $300 million.
“The company has executed on its previously-disclosed plans to re-enter the forward lending correspondent channel and continues to pursue a number of diversified replenishment and growth options, including MSR flow purchase arrangements and driving improved recapture rates within our existing servicing portfolio,” Ocwen said.