Morgan Stanley has announced the sale of Saxon Mortgage Services Inc., a provider of servicing and subservicing of residential mortgage loans, to Ocwen Financial Corp.
Ocwen has agreed to acquire Saxon for the base purchase price of $59.3 million, plus an estimated $1.4 billion for servicing advance receivables outstanding. The Saxon transaction includes the acquisition of $26.6 billion in unpaid principal balance of mortgage servicing rights as of June 30, of which Ocwen currently subservices $10.9 billion. The acquisition also includes approximately $12.9 billion of loans that Saxon subservices for Morgan Stanley and others.
The transaction is targeted to close in the first quarter of 2012.