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New Residential and Ocwen come to terms on MSR transfers; Ocwen up 10%

Published 07/24/2017, 07:16 AM
© Reuters.  New Residential and Ocwen come to terms on MSR transfers; Ocwen up 10%
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  • Under the deal, Ocwen (NYSE:OCN) will transfer to New Residential (NYSE:NRZ) about $110B UPB of MSRs. In exchange, New Residential will pay Ocwen restructuring fee payments of up to roughly $400M. Subject to approvals, the transfers could begin as soon as September and continue into next year.
  • Alongside, New Residential has agreed for Ocwen to subservice the transferred mortgages for five years.
  • Also alongside, New Residential will become a part owner of Ocwen, agreeing to pay $13.9M for a 4.9% stake.
  • Previously: Ocwen and New Residential confirm deal talks in press release (May 1)
  • Source: Press Release
  • Ocwen +10.3% premarket
  • Now read: New Residential: Despite Big Risks, 12.5% Yield Is Attractive


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