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» VISIT US ONLINE @ DSNEWS.COM 17 OCWEN AGREES TO SELL AGENCY MSR PORTFOLIO WORTH $45 BILLION Ocwen Financial signed a letter of intent to sell the mortgage servicing rights for $45 billion worth of agency performing loans, according to an announcement on Ocwen's website. e portfolio consists of about 277,000 performing loans owned by Fannie Mae. e approximate unpaid balance of the loans is $45 billion. According to the announcement, Ocwen expects the deal to close by the middle of the year. e transaction is subject to approval from Fannie Mae as well as the enterprise's conservator, the Federal Housing Finance Agency, and other customary conditions. e announcement came less than a week after Ocwen announced it was selling an MSR portfolio worth $9.8 billion in performing agency loans to Dallas-based Nationstar. at portfolio contained approximately 81,000 performing residential mortgage loans owned by Freddie Mac. ese two transactions together represent approximately $55 billion in unpaid principal balance for which Ocwen agreed to sell the MSRs. Both transactions are expected to be completed in the next six months. According to Ocwen's announcement, the Atlanta-based servicer expects the two transactions will generate approximately $550 million in proceeds and "accelerate Ocwen's strategy to reduce the size of its agency servicing portfolio." Ocwen did not name the buyer in the $45 billion transaction announced last month, though Ocwen President and CEO Ron Faris did say a week earlier that his company was looking forward to "exploring additional MSR transactions with Nationstar." Also announced last month, Ocwen entered into an amendment to its $1.3 billion Senior Secured Term Loan to remove certain restrictions on asset sales and permanently increase a financial covenant. To repay cash received from asset sales, Ocwen agreed to an accelerated repayment schedule. "We are pleased with the actions of our term loan investors. ey have been supportive of Ocwen and recognize the importance and benefit of executing on our strategy," Faris said. "Additionally, their willingness to enter into an amendment with Ocwen is an affirmation that the company is, and always has been, in compliance with all of its SSTL covenants." Ocwen's regulatory troubles over the last year have been well-documented. e Atlanta- based, nonbank, mortgage servicer agreed to a $150 settlement with the New York Department of Financial Services in December 2014. at settlement included the departure of Chairman Bill Erbey, who founded the company more than 30 years ago. "We are pleased to enter into an agreement to acquire this portfolio from Ocwen," said Jay Bray, CEO of Nationstar. "We look forward to expeditiously closing this portfolio and welcome the new customers to Nationstar." "is transaction represents the first step in the execution of our previously announced strategy to transfer certain types of nonstrategic servicing," Ocwen CEO Ron Faris said. "We look forward to exploring additional MSR transactions with Nationstar."

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