Mortgage servicer Ocwen Financial Corp. reports that it has completed its acquisition of PHH Corp. for approximately $360 million in cash.
As per the deal, which was announced in February, Glen A. Messina is now president and CEO of Ocwen and a member of the company’s board of directors.
The deal brings numerous operational efficiencies for Ocwen and accelerates its transition over to Black Knight’s MSP mortgage servicing platform.
Perhaps most importantly, the deal enables Ocwen to start taking on new business to offset its portfolio runoff.
As a result of the acquisition, Ocwen says it will be better positioned for growth – and better able to serve both borrowers and loan investors.
The newly combined company services approximately 1.7 million loans with an unpaid principal balance of over $296 billion.
In 2017, the combined company originated more than $3 billion of residential mortgage loans including reverse mortgages.
“The close of this acquisition marks a new chapter in our history, and creates a strong non-bank mortgage servicer, positioned for growth, and better able to serve borrowers and loan investors,” says Phyllis Caldwell, chairman of the board of directors at Ocwen. “We believe our increased size and scale will create both strategic and financial benefits including accelerating our transition to an industry leading servicing platform, reducing servicing, originating and overhead costs on a combined basis through the realization of $100 million in targeted cost synergies and improved economies of scale, and providing a foundation to enable Ocwen to resume new business and growth activities to offset portfolio runoff in the future.”
