Multi-billion dollar servicing sale to see 1,000 jobs chopped

by Diana Aqra21 Jun 2013
A $78bn servicing sale will result in 1,000 jobs getting the axe, it has been claimed.
 
Following the sale of its servicing rights for US $78bn in mortgage loans to Ocwen, OneWest Bank and its mortgage management firm, IndyMac Mortgage Services, will be shedding nearly 1,000 jobs from Texas and Michigan locations, according to a local news services.
 
A report by the Statesmen Monday said that OneWest Bank would lay-off 725 workers in its Austin, Texas location, mostly call center employees. Meanwhile, a report by a local news service in West Michigan said it obtained an internal email saying Ocwen’s acquisition of mortgage servicing would result in roughly 200 job losses in the Texas Township, Michigan location. 
 
Ocwen’s SEC filing on June 13 indicated that it would not be acquiring the operations or other assets in the deal.  In total, Ocwen paid US 2.53bn of servicing rights and related servicing advance receivables. 
 
Ocwen grows to be one of the largest mortgage servicers in the US. In October 2012, it purchased Homeward Residential Holdings for US $750m, Litton Loan Servicing and Saxon Mortgage Services. 
 

Poll

Is TILA-RESPA a good or bad thing long term?