Ocwen Financial (OCN) has purchased the commercial servicing rights portfolio of Aurora Bank.
The portfolio includes roughly 3,300 loans and has a principal balance of roughly $1.8 billion, Ocwen said Tuesday. The financial terms of the deal were not disclosed.
Ocwen, which specializes in distressed and subprime loans, has been on a shopping spree, picking up businesses in areas where its big bank competitors are struggling. The Atlanta servicer has previously bought servicing businesses from Goldman Sachs (GS), Barclays Bank PLC and Morgan Stanley (MS).
Aurora Bank is the former residential lending unit of Lehman Brothers and survived the company’s 2008 bankruptcy. Both the bank and its Colorado-based servicing division, Aurora Loan Services, have been on the selling block per orders from the bankruptcy trustee. It recently agreed to sell $63 billion of mortgage servicing rights to Nationstar Mortgage and an affiliated investment company. Also, Aurora is paying New York Community Bancorp (NYCB) $24 million to assume its $2.3 billion of deposits.
Ocwen now services more than 5,250 small balance commercial loans with an unpaid principal balance of roughly $2.4 billion.