The banking subsidiary of OneWest Bank Group LLC has reached an agreement to sell a substantial portion of its mortgage servicing portfolio.
OneWest Bank FSB was created from the remnants of IndyMac Bank FSB, which was closed by the Office of Thrift Supervision in July 2008.
Before its failure, IndyMac serviced $153 billion in home loans. OneWest’s servicing division, IndyMac Mortgage Services, had a servicing portfolio of $102 billion as of June 30, 2012.
OneWest’s servicing portfolio is about to shrink more as a result of a planned sale of mortgage servicing rights.
The buyer, Ocwen Financial Corp., disclosed the sale in a filing with the Securities and Exchange Commission.
Ocwen Loan Servicing LLC has reached an agreement to acquire MSRs from OneWest on $78 billion in residential loans. The total was as of April 30.
Ocwen will pay around $2.1 billion for the MSRs.
Ocwen already serviced $469 billion as of March 31, making it the fourth-largest U.S. servicer.
Aside from servicing advance receivables, the deal doesn’t involve any operations or other assets.
Ocwen plans to fund the transaction with cash on hand, cash generated through operations and credit.
The deal is subject to consents from investors and third parties and other customary conditions. A $50 million termination fee applies to both parties.
Ocwen expects to complete the transaction in stages throughout this second half of this year.
