Ocwen announced PHH acquisition date

by Ryan Smith01 Oct 2018

Ocwen Financial has announced that it will close its $360 million acquisition of PHH Corp. Thursday.

Ocwen and PHH said Friday that they had received the required state and federal regulatory approvals to complete the acquisition.

The combined company would service 1.9 million loans with an unpaid principal balance of $338 billion, according to The Philadelphia Business Journal. It would originate more than $3 billion in residential mortgages annually.

Ocwen announced its intent to acquire PHH in February.

“PHH is a high-quality servicer with complementary capabilities and business lines to Ocwen, making it a great strategic match for us,” then-Ocwen CEO Ron Faris said at the time. Faris has since retired, making way for interim CEO Glenn Messina, former president of PHH.

PHH posted a loss of $202 million in 2016 and $217 million last year, according to The Philadelphia Business Journal. It also announced a plan to cut about 2,300 jobs and sell off business lines to focus on mortgage subservicing and portfolio retention. The company said it expects to break even this year and turn a profit in 2019.

Ocwen posted a loss of $128 million in 2017 – the fourth year in a row the company reported a loss of more than $100 million. The company has seen its share of regulatory troubles over the last two years, and was recently sued by New York state over “zombie foreclosures.” The state alleged that Ocwen failed to maintain foreclosed properties, as required by law.

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