Saxon Mortgage Services Inc. says it has entered into a negotiated mortgage servicing rights sale agreement with Ocwen Loan Servicing LLC. The transaction complements Saxon's strategy to enter the subservicing market, according to Anthony Meola, CEO of the Irving, Texas-based Morgan Stanley subsidiary.
‘Saxon has proven its core competency of asset performance management in the distressed-servicing industry, and this sale marks an important milestone in our strategy toward becoming a premier subservicer by increasing our capacity for subservicing clients,’ says Meola.
The transfers to Ocwen will take place on April 16 and May 1, Saxon says. In an April 5 Securities and Exchange Commission filing, Ocwen, without naming Saxon as the seller, indicated it had agreed to buy residential mortgage servicing rights with respect to approximately 38,000 loans with an aggregate unpaid principal balance of approximately $6.9 billion.
A Saxon spokesperson has confirmed that the transaction is the same as the one noted in Ocwen's Form 8-K, adding that the loans are predominately subprime.