JPMorgan to acquire $45B of troubled company’s servicing rights

The largest U.S. bank by assets will take over the right to handle $45 billion of home mortgages.

In early March, Ocwen Financial Corp. had said it was on track to sell the servicing rights for mortgages with a balance of $55 billion. The firm had previously announced that it had sold almost $10 billion of those rights to Nationstar, but it didn’t identify who was acquiring the other $45 billion.
Now, according to insiders, JPMorgan Chase, the second-largest servicer of U.S. mortgages, will acquire the other $45 billion.

The 277,000 underlying debts are performing loans owned by Fannie Mae, and Ocwen said it expects to complete the transaction by mid-year and hand off the servicing during the second half.

The price was undisclosed. However, Ocwen said previously that the sale of the $55 billion in servicing rights would result in about $550 million in proceeds.