WEST PALM BEACH, Fla., April 21, 2021 (GLOBE NEWSWIRE) — Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and originator, has today announced several agreements with Texas Capital Bank that are expected to significantly expand the company’s correspondent lending business and mortgage servicing portfolio.
Ocwen has agreed to acquire Texas Capital Bank’s Correspondent Lending business, which generated approximately $2.4 billion in volume in the fourth quarter of 2020. On a combined basis, for the fourth quarter of 2020, the companies generated approximately 5 billions of dollars in correspondent volume. Under the terms of the agreement, Ocwen’s subsidiary, PHH Mortgage, will gain approximately 200 new correspondent salespeople, and the company will assume the majority of Texas Capital Bank’s correspondent staff. The transaction is expected to close in the second quarter of 2021.
The Company has also entered into an agreement with Texas Capital Bank for the bulk purchase of Mortgage Servicing Rights (“MSR”) attributable to a mortgage portfolio of approximately $14 billion. The deal is expected to close in the second quarter of 2021, subject to customary closing conditions, with approximately 60,000 loans expected to transition to the PHH mortgage servicing platform in the third quarter of 2021. Ocwen announced in the fourth quarter As of 2020 it had entered into a sub-service agreement with an expected volume of $13 billion in UPB. This previously announced sub-service agreement has been restructured as part of the $14 billion bulk MSR transaction announced today.
Glen A. Messina, President and CEO of Ocwen, said, “We are very pleased to announce our transactions with Texas Capital Bank. Our agreements to acquire their correspondent lending business and $14 billion in bulk MSR are major steps towards achieving our goal of adding at least $100 billion in new services in 2021. Their correspondent lending business has a proven track record in the market and high quality operations. The acquisition of this platform complements our rapidly growing business very well and we expect it to accelerate our growth plans. We are delighted to welcome their experienced team to the Ocwen/PHH family and have the opportunity to bring our industry-leading capabilities and services to existing Texas Capital Bank clients and correspondents.
Messina continued, “Texas Capital Bank is a key strategic partner for Ocwen and I would like to thank them for their collaboration and partnership in securing these two important agreements. We look forward to working with them to successfully conclude these transactions and continue to expand our relationship. »
About Ocwen Financial Company
Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage servicer and originator providing solutions through its core brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the nation’s largest service providers, focused on providing a variety of service and loan programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. Our headquarters are located in West Palm Beach, Florida, with offices in the United States and the US Virgin Islands and operations in India and the Philippines, and we have been serving our customers since 1988. For more information, please visit our website (www.ocwen.com).
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by reference to a future period or by the use of forward-looking terminology. Forward-looking statements are generally identified by words such as “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”, “objective”, “strategy”, “plan”, “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative form of these terms, although all forward-looking statements do not contain these words. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Readers should keep these factors in mind when reviewing these statements and should not place undue reliance on these statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward-looking statements and it may happen again. Important factors that could cause actual results to differ materially from those suggested by forward-looking statements include, but are not limited to, our ability to complete the transactions with Texas Capital Bank described above and the timing for doing so. ; the impact of transactions on our operations, if executed; our ability and timing to complete the MAV transaction; our ability to meet our new service targets for 2021; uncertainty about the future impacts of the COVID-19 pandemic, including the response of the U.S. government, state governments, the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation ( Freddie Mac, and with Fannie Mae, the GSEs), the Government National Mortgage Association (Ginnie Mae) and regulators, as well as the impacts on borrowers and the broader economy; the adequacy of our financial resources, including our sources of liquidity and our ability to sell, fund and collect service advances, term and cancel entire loans, and HECM and term loan redemptions and forgiveness, as well as only to repay, renew and extend borrowings, borrow additional amounts as needed, achieve our MSR or other asset investment goals and comply with our debt agreements, including financial and others they contain; increasing service charges based on increasing borrower default levels or other factors; our ability to collect prepaid tax refunds, including on time; the future of our long-term relationship and remaining service agreements with New Residential Investment Corp. (NRZ); our ability to continue to improve our financial performance through cost reengineering efforts and other actions; our ability to continue to grow our origination business and increase our origination volumes in a competitive market and uncertain interest rate environment; uncertainty related to claims, disputes, cease-and-desist orders, and investigations by government agencies and private parties regarding our services, entries, modifications, creations, and other practices, including uncertainty related to past, present investigations or future, litigation, cease-and-desist orders, and settlements with state regulators, the Consumer Financial Protection Bureau (CFPB), state attorneys general, the Securities and Exchange Commission (SEC), and the Department of Justice or the Department of Housing and Urban Development (HUD); adverse effects on our business as a result of regulatory investigations, litigation, cease-and-desist orders or settlements and related responses by key counterparties, including lenders, GSEs and Ginnie Mae; our ability to comply with the terms of our agreements with regulators, as well as general regulatory requirements, and the associated costs; increased regulatory scrutiny and media attention; any unfavorable development of ongoing legal proceedings or the initiation of new legal proceedings; our ability to correctly interpret and comply with financial and other requirements of regulators, GSEs and Ginnie Mae, as well as those set forth in our debt and other agreements; our ability to comply with our service agreements, including our ability to comply with our agreements and the requirements of the GSEs and Ginnie Mae and maintain our seller/repairer and other statuses with them; our ability to fund future drawdowns on existing loans in our reverse mortgage portfolio; our service and credit ratings and other actions of various rating agencies, including the impact of past or future downgrades to our service and credit ratings; as well as other risks and uncertainties detailed in Ocwen’s reports and filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and current and quarterly reports since that date. . Anyone wishing to understand Ocwen’s business should consult our filings with the SEC. Our forward-looking statements speak only as of the date they are made, and we disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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