Ocwen Financial subsidiary PHH Mortgage Corp. announced Monday that it plans to purchase a $48 billion mortgage servicing rights portfolio from AmeriHome, a lender that
PHH plans to purchase MSRs outstanding as of the closing date for a total price of approximately $607 million, subject to adjustment for run-off, and will reimburse AmeriHome for outstanding servicing advances, according the company’s related 8-K filing with the Securities and Exchange Commission.
If the Ocwen subsidiary’s latest planned purchase of
The transaction goes a long way toward a goal Ocwen announced in its preliminary first-quarter earnings to amass MSRs with a total unpaid principal balance of up to $150 billion this year as part of efforts to build efficiencies of scale and its customer base. It’s also one of the largest servicing rights transactions seen since Citigroup sold
“We believe the execution of a bulk MSR transaction of this magnitude reflects the strength, quality and scalability of our servicing platform,” Ocwen President and CEO Glen Messina said in a press release.
The announcement Monday boosted Ocwen’s stock by 2.8% on the day to $34 per share.
Ocwen had said in its preliminary earnings that it had enough letters of intent to fulfill roughly half or $68 billion of its ideal MSR purchase goal. The AmeriHome deal is included in that amount.
Earlier this year, Ocwen announced that PHH would be buying a $14 billion MSR portfolio from
Large mortgage acquisitions can put more pressure on banks to sell servicing rights due to
“What we’re starting to see are those whose balance sheets have expanded beyond what they historically have ever had starting to peel back,” said Tom Piercy, managing director of Incenter Mortgage Advisors, in an interview.