RISK SHARING: Suddenly mortgage companies are "trying to get creative" in financing servicing rights, says Tom Millon (left), the head of the Capital Markets Cooperative. The "synthetic nature" of Ocwen's deal, which shifts prepayment risk to investors, makes it "different," says Laurie Goodman, director of the Urban Institute's Housing Finance Policy Center.

Financing for Mortgage Servicing Makes a Comeback — with a Twist

Ocwen hopes to do more with a novel transaction structure that transfers the prepayment risk of mortgage servicing rights. Other companies are exploring ways to finance a notoriously hard-to-finance asset.

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