Ocwen sells another $25B of residential MSRs

CEO Ronald Faris is continuing to shrink the troubled company after experiencing a mountain of regulatory issues.

Ocwen Financial Corp. has reached another agreement with Nationstar Mortgage  to sell a servicing portfolio on $25 billion of loans, as CEO Ronald Faris shrinks the company amid a mountain of regulatory issues. The portfolio includes 142,000 performing loans owned by Freddie Mac.

In February, Ocwen agreed to sell $9.8 billion worth of mortgage servicing rights to Nationstar.

Subject to a definitive agreement, approvals by Freddie Mac and FHFA and other conditions, Ocwen and Nationstar expect the transaction to close before mid-year.

"This transaction, on top of the one announced in February between Ocwen and Nationstar, furthers our announced corporate strategy and demonstrates the strong working relationship we have developed with Nationstar," Faris said.

"This transaction builds upon our strong track record of portfolio acquisitions while serving the needs of homeowners, and we look forward to expeditiously closing and boarding this portfolio,"Jay Bray, CEO of Nationstar, added. "We will continue to work cooperatively with Ocwen as they evaluate the sale of additional agency portfolios and look forward to continuing discussions with all counterparties."