New Residential Investment Corp. (NYSE:NRZ; "New Residential") today announced that it has agreed with Ocwen Financial Corporation ("Ocwen") to transfer the subservicing of agency loans currently subserviced by PHH Mortgage Corporation ("PHH"), a subsidiary of Ocwen.
As part of this agreement, PHH will transfer the subservicing of approximately $41.8 billion unpaid principal balance ("UPB") of agency MSRs, representing approximately 310,000 loans, to NewRez LLC, a subsidiary of New Residential. Transfers are expected to occur during the second and third quarters of 2020.
Following the transfers, New Residential will continue to have a subservicing relationship with Ocwen related to the portfolio of non-agency loans currently subserviced by PHH. In addition, New Residential will continue to own 4.3% of Ocwen’s common shares outstanding and does not intend to sell such shares in connection with this announcement.
"Both New Residential and Ocwen have evolved tremendously since we first announced our agency subservicing agreement with PHH. We believe this transfer is in the best long-term interests of our company as we execute on our business strategy," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential.