Ocwen Financial Corporation has completed its acquisition of PHH Corp, a deal worth about $360 million in cash, or $11 per diluted common share.
Upon the closing of the PHH merger, former PHH CEO Glen A. Messina became president and CEO of Ocwen and a member of Ocwen’s board of directors.
“The close of this acquisition marks a new chapter in our history, and creates a strong non-bank mortgage servicer, positioned for growth and better able to serve borrowers and loan investors,” said Phyllis Caldwell, chair of Ocwen’s board of directors. “We believe our increased size and scale will create both strategic and financial benefits, including accelerating our transition to an industry-leading servicing platform, reducing servicing, origination and overhead costs on a combined basis through the realization of $100 million in targeted cost synergies and improved economies of scale, and providing a foundation to enable Ocwen to resume new business and growth activities to offset portfolio runoff in the future. We are excited to officially welcome Glen Messina and the PHH employees to the Ocwen family.”
Ocwen spokesperson John Lovallo said that Ocwen’s increased size and scale following the merger created many benefits, including:
- Accelerating the transition to the Black Knight's LoanSphere servicing platform
- Increased efficiency in servicing
- Better customer service, operations, technology and risk management
- Reduced fixed costs through the reduction of redundant corporate overhead
The newly combined company services about 1.7 million loans with an unpaid principal balance of more than $296 million. In 2017, the combined company originated more than $3 billion in residential mortgages.
With the completion of the acquisition, PHH has become a wholly owned subsidiary of Ocwen and has been delisted from the New York Stock Exchange.