“We believe this transaction enables us to significantly grow our reverse servicing portfolio”
Ocwen Financial has concluded its acquisition of Reverse Mortgage Solutions’ reverse mortgage servicing and REO management platforms.
Ocwen’s subsidiary, PHH Mortgage, has successfully purchased all of the RMS reverse mortgage servicing platform and all outstanding equity interests in the RMS Real Estate Owned business, REO Management Solutions, from Mortgage Assets Management (MAM). The purchase price at closing was around $12.4 million.
Glen Messina, president and CEO of Ocwen, said the transaction triples the firm’s total owned and subserviced reverse portfolio and enables additional growth opportunities through a five-year subservicing agreement.
“The acquisition provides us with a high-quality reverse servicing platform, experienced people and customized reverse technology and supports our strategy to build an in-house reverse servicing platform,” she said. “We believe this transaction enables us to significantly grow our reverse servicing portfolio and positions us as the only mortgage company that originates, securitizes, and directly services reverse mortgage customers and clients.”
Additionally, the deal brings 350 employees into its fold and approximately 57,000 third-party subserving agreements ($14.3 billion in unpaid principal balance) transferred to PHH’s reverse servicing platform. PHH expects to start servicing its owned portfolio of approximately 34,000 reverse mortgages, or a UPB of roughly $6.7 billion, in the fourth quarter.
“We are excited to officially welcome a highly talented group of employees to our company, and we look forward to our expanded partnership with Waterfall to continue supporting their growth objectives in the reverse mortgage industry,” Messina said.