One of the top performing Home Affordable Modification Program servicers will acquire another top HAMP performer.
Ocwen Loan Servicing LLC has reached an agreement to acquire HomEq Servicing from Barclays Bank PLC, according to an announcement today.
The $1.3 billion transaction is all cash, though the amount subject to adjustment based on the unpaid principal balance of the servicing portfolio as well as the value of other assets at the close.
In order to get the deal done, Barclays agreed to finance $1.0 billion of the acquisition and help Ocwen raise additional capital.
The companies expect to close the transaction by Sep. 30.
HomeEq’s servicing portfolio finished March at around $28 billion, while West Palm Beach, Fla.-based Ocwen serviced around $49 billion as of Feb. 28.
As of April, both HomeEq and Ocwen had converted to permanent modifications 83 percent of their HAMP-eligible borrowers who had successfully completed three trial HAMP payments — more than any other servicers.
