Benzinga | Apr 21, 2021 04:26PM EDT

Ocwen Financial Announces Agreements With Texas Capital Bank to Acquire Correspondent Lending Business and $14B in Bulk Mortgage Servicing Rights

Ocwen Financial Corporation (NYSE:OCN) ("Ocwen" or the "Company"), a leading non-bank mortgage servicer and originator, today announced multiple agreements with Texas Capital Bank that are expected to significantly grow the Company's Correspondent Lending business and its mortgage servicing portfolio.

Ocwen has agreed to acquire Texas Capital Bank's Correspondent Lending business, which originated approximately $2.4 billion of volume in the fourth quarter of 2020. On a combined basis, for the fourth quarter of 2020, the companies originated approximately $5 billion in correspondent volume. Under the terms of the agreement, Ocwen's subsidiary, PHH Mortgage, will gain approximately 200 new correspondent sellers, and the Company will assume the majority of Texas Capital Bank's Correspondent personnel. The transaction is expected to close in the second quarter of 2021.

The Company has also entered into an agreement with Texas Capital Bank to purchase, in bulk, mortgage servicing rights ("MSRs") attributable to a mortgage loan portfolio approximating $14 billion. The agreement is expected to close in the second quarter of 2021, subject to customary closing conditions, with approximately 60,000 loans expected to transfer to the PHH Mortgage servicing platform in the third quarter of 2021. Ocwen announced in the fourth quarter of 2020 that it had entered into a subservicing agreement with an expected volume of $13 billion in UPB. This previously announced subservicing agreement was restructured as 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 MSRs are major steps toward achieving our goal of adding at least $100 billion in new servicing 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 will accelerate our growth plans. We are excited to welcome their experienced team to the Ocwen/PHH family and for the opportunity to bring our industry-leading capabilities and service to existing Texas Capital Bank correspondent clients and customers."