Ocwen

Ocwen to sell $9.6 billion mortgage servicing rights to Walter unit

(Reuters) – Ocwen Financial Corp (OCN.N) said it was selling residential mortgage servicing rights worth $9.6 billion to a subsidiary of Walter Investment Management Corp (WAC.N).

The deal is the latest in a series of steps by Ocwen to slim down its operations amid regulatory scrutiny over its business practices.

Ocwen, which delayed filing its full-year results, also said it was reviewing the ability of its affiliate, Home Loan Servicing Solutions Ltd (HLSS.O), to meet obligations to fund new servicing advances.

A failure by HLSS could hurt Ocwen’s financial condition, the company said in a filing.

The sale comes close on the heels of Ocwen’s deal to offload mortgage servicing rights on $45 billion of Fannie Mae (FNMA.OB) loans. Bloomberg reported on Tuesday that the buyer was JPMorgan Chase & Co (JPM.N).

Ocwen also sold servicing rights on loans worth $9.8 billion to Nationstar Mortgage Holdings Inc (NSM.N) in February.

The transaction with Green Tree is expected to close by April 30.

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