This morning, Ocwen Financial Corp (NYSE:OCN) announced that it would sell an additional $25 billion of servicing rights on loans to a subsidiary of Nationstar Mortgage Holdings Inc. (NYSE:NSM). For quite some time, the company has been trying to cut back costs, and also slim down its staff, since regulators probed its servicing standards. Ocwen has sold about $90 billion worth of its service rights since February, and it seems like they will keep selling off its services until the regulators loosen their pressure.
The portfolio collection being sold to Nationstar contains performing loans owned by Freddie Mac and Fannie Mae. Last month, Ocwen sold $9.8 billion of servicing rights to Nationstar Mortgage, in a deal that seemed to rejuvenate a company that was slowly dying down. Earlier this month, Ocwen said that it was looking to raise around $550 million by selling its rights to other loan agency’s for nearly $55 billion.
It seems like Ocwen can’t catch a break anywhere, on Monday the New York Stock Exchange threatened to delist the company due to its delaying of annual report fillings.
Ocwen and Nationstar said they expect the transaction to close before the middle of the year, subject to approvals by government agencies.