The agreement, which has a term of eight years, covers a non-agency MSR portfolio with an unpaid principal balance of about $110 billion which New Residential agreed to purchase from Ocwen Financial units in July and a separate non-agency MSR portfolio with $6 billion in unpaid principal balance which New Residential agreed to buy from PHH units in December 2016.
Pursuant to the deal, New Residential's licensed real estate brokerage subsidiary will refer the REOs to Altisource's licensed real estate brokerage units as the portfolios are transferred to New Residential. Each REO sold by Altisource will result in a referral commission for the New Residential unit.
Additionally, the companies agreed to enter negotiations for a separate agreement under which the MSR portfolio purchased from Ocwen would receive certain fee-based services exclusively from Altisource. The companies further agreed to cooperate in seeking other opportunities to broaden their relationship.
Cherry Hill, RoundPoint partner on $2 billion in mortgage servicing per month
Ocwen sells servicing rights to $110 billion in unpaid principal
New Residential Investment and Altisource Portfolio Solutions announced a cooperative brokerage agreement under which Altisource’s licensed real estate brokerage units will exclusively market and list real-estate-owned (REO) properties in mortgage loan portfolios for which New Residential holds, or will hold, mortgage servicing rights (MSR).