Ocwen Money Accelerates Growth Trajectory With Strategic Relationship With Oaktree and New Servicing Contracts

WEST PALM Beach front, Fla., Dec. 22, 2020 (World NEWSWIRE) — Ocwen Money Company (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-financial institution property finance loan servicer and originator, nowadays declared considerable developments on the Company’s expansion programs that are envisioned to generate somewhere around $80 to $100 billion of new servicing UPB in the aggregate.

Ocwen has entered into a definitive arrangement with resources managed by Oaktree Capital Management, L.P. (collectively, “Oaktree”) to sort a strategic romantic relationship that will get and keep property finance loan servicing rights (“MSRs”) by a licensed entity, or MSR asset car or truck (“MAV”). The newly-formed firm is anticipated to commit up to $250 million of fairness funds into the MAV to receive Fannie Mae and Freddie Mac MSRs. The functions will dedicate to fund the financial investment on a professional rata basis of 15% for Ocwen and 85% for Oaktree.

PHH Mortgage loan Corporation, a wholly-owned subsidiary of Ocwen, will subservice the financial loans acquired as a result of the MAV, conduct portfolio recapture expert services and offer certain other administrative products and services. Around time, the Corporation thinks that the MAV could include about $50 to $60 billion of subservicing UPB for Ocwen.

The transaction is anticipated to close in the first half of 2021, matter to different closing ailments, together with regulatory and other approvals.

At the closing of the transaction, Oaktree may work out an option to purchase up to 4.9% of the Company’s fantastic popular stock at a price for each share of $23.15. In addition, the Company will situation Oaktree warrants to obtain an extra 3% of the Firm’s common stock at an physical exercise value of $24.31.

The Firm also introduced that it has been awarded multiple contracts to deliver subservicing, portfolio recapture and MSR transaction providers with a projected subservicing quantity of $16 to $24 billion. Ocwen expects to get started boarding loans in the very first quarter of 2021. Moreover, the Organization signed a few bulk MSR acquire agreements totaling close to $16 billion, which are predicted to shut by December 31, 2020 and transfer in the very first quarter of 2021.

The Organization originated roughly $10 billion of volume for the 1st two months of the fourth quarter, exceeding its volume degrees for the equivalent interval in the 3rd quarter by 32%. The Enterprise also included 23 new correspondent sellers and MSR co-difficulty consumers through the first two months of the fourth quarter.

Glen A. Messina, President and CEO of Ocwen, mentioned, “We are extremely delighted to announce our new strategic romance with Oaktree, a major world-wide financial investment business, and the proposed transaction to launch an MSR expense car. This transaction will assist our subservicing and portfolio recapture progress objectives, push greater scale and provide entry to advancement cash in get to obtain MSRs in a price and danger efficient method. We seem forward to doing work with Oaktree to launch MAV and understand its progress prospective.”

Messina continued, “The sector has welcomed our business profits design and the staff has carried out a huge work offering our comprehensive portfolio of servicing offerings. Our the latest signings are a testomony to the team’s challenging get the job done, power of our assistance choices and new client-concentrated technologies. We are psyched to welcome our new shoppers to the Ocwen relatives and to assistance them grow their organization.”

About Ocwen Economic Company

Ocwen Fiscal Company (NYSE: OCN) is a leading non-bank home loan servicer and originator giving answers by its key brand names, PHH House loan and Liberty Reverse Home finance loan. PHH Mortgage is a person of the major servicers in the nation, focused on offering a variety of servicing and lending plans. Liberty is a single of the nation’s largest reverse mortgage lenders committed to education and learning and offering loans that aid consumers meet up with their personal and economical needs. We are headquartered in West Palm Seaside, Florida, with workplaces in the United States and the U.S. Virgin Islands and functions in India and the Philippines, and have been serving our buyers given that 1988. For extra facts, you should go to our website (www.ocwen.com).

Ahead-Seeking Statements

This press release incorporates forward-searching statements inside the which means of Area 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Trade Act of 1934, as amended. These forward-wanting statements may perhaps be recognized by a reference to a upcoming period or by the use of forward-seeking terminology. Forward-hunting statements are usually recognized by words these types of as “expect”, “imagine”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “strategy” “concentrate on” and “project” or conditional verbs these types of as “will”, “could”, “really should”, “could” or “would” or the damaging of these terms, although not all ahead-searching statements contain these words and phrases. Ahead-hunting statements by their nature tackle issues that are, to various degrees, unsure. We are in the midst of a interval of cash markets volatility and experiencing substantial improvements within just the home loan lending and servicing ecosystem which have magnified these types of uncertainties. Visitors ought to bear these variables in thoughts when taking into consideration this sort of statements and need to not area undue reliance on this sort of statements.

Ahead-searching statements contain a range of assumptions, risks and uncertainties that could induce real outcomes to differ materially. In the previous, true final results have differed from those people advised by forward looking statements and this may well transpire all over again. Significant variables that could lead to actual results to vary materially from these prompt by the forward-searching statements include, but are not constrained to, the capacity to obtain regulatory approvals and the fulfillment of the closing ailments below the MAV transaction agreement and the envisioned timing for closing the connected transactions, uncertainty relating to the foreseeable future impacts of the COVID-19 pandemic, which includes with regard to the response of the U.S. federal government, point out governments, the Federal Countrywide Home loan Affiliation (Fannie Mae), the Federal Residence Bank loan Property finance loan Company (Freddie Mac, and together with Fannie Mae, the GSEs), the Authorities Nationwide House loan Association (Ginnie Mae) and regulators, as effectively as the opportunity for ongoing disruption in the money markets and in commercial action generally, greater unemployment, and other economic problems facing our borrowers impacts on our operations resulting from employee sickness, social distancing actions and our change to higher utilization of remote operate arrangements the adequacy of our economic resources, such as our sources of liquidity and skill to promote, fund and recuperate servicing advances, forward and reverse whole financial loans, and HECM and forward loan buyouts and place backs, as very well as repay, renew and extend borrowings, borrow supplemental quantities as and when needed, fulfill our MSR or other asset expense targets and comply with our personal debt agreements, including the monetary and other covenants contained in them increased servicing fees dependent on increased borrower delinquency concentrations or other components our ability to accumulate expected tax refunds, which include on the timeframe expected the future of our long-phrase romantic relationship and remaining servicing agreements with New Household Expenditure Corp. (NRZ), our capability to execute an orderly and timely transfer of duties in connection with the formerly disclosed termination by NRZ of the PMC subservicing arrangement, including our capacity to reply to any considerations elevated by regulators, creditors and other contractual counterparties in link with these transfer our capability to well timed regulate our charge framework and functions as the bank loan transfer approach is remaining finished in response to the beforehand disclosed termination by NRZ of the PMC subservicing agreement our skill to carry on to boost our economic performance via charge re-engineering attempts and other actions our ability to continue to grow our origination enterprise and enhance our origination volumes in a aggressive marketplace and uncertain interest price environment uncertainty similar to promises, litigation, cease and desist orders and investigations brought by government businesses and non-public get-togethers regarding our servicing, foreclosures, modification, origination and other practices, such as uncertainty linked to previous, existing or future investigations, litigation, stop and desist orders and settlements with state regulators, the Buyer Fiscal Defense Bureau (CFPB), Point out Attorneys General, the Securities and Exchange Commission (SEC), the Division of Justice or the Department of Housing and City Development (HUD) and steps introduced beneath the Bogus Claims Act with regards to incentive and other payments made by governmental entities adverse effects on our enterprise as a outcome of regulatory investigations, litigation, cease and desist orders or settlements and associated responses by vital counterparties, which include creditors, the GSEs and Ginnie Mae our capability to comply with the phrases of our settlements with regulatory organizations, as well as general regulatory needs, and the prices of carrying out so elevated regulatory scrutiny and media focus any adverse developments in present legal proceedings or the initiation of new lawful proceedings our capability to interpret the right way and comply with liquidity, net truly worth and other monetary and other demands of regulators, the GSEs and Ginnie Mae, as very well as individuals set forth in our credit card debt and other agreements our capability to comply with our servicing agreements, including our potential to comply with our agreements with, and the requirements of, the GSEs and Ginnie Mae and manage our vendor/servicer and other statuses with them our ability to fund foreseeable future draws on present financial loans in our reverse mortgage portfolio our servicer and credit score rankings as effectively as other steps from numerous ranking companies, like the effects of prior or long term downgrades of our servicer and credit rating rankings as perfectly as other challenges and uncertainties thorough in Ocwen’s studies and filings with the SEC, together with its annual report on Form 10-K for the 12 months ended December 31, 2019 and its latest and quarterly reviews because these day. Any person wishing to comprehend Ocwen’s business need to assessment its SEC filings. Our forward-searching statements communicate only as of the day they are created and, we disclaim any obligation to update or revise ahead-looking statements regardless of whether as a outcome of new information, potential situations or normally.

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