Ocwen to Sell $9.8B Servicing Portfolio to Nationstar

Ocwen Financial has tentatively agreed to sell a mortgage-servicing portfolio on $9.8 billion of loans to Nationstar Mortgage Holdings, and Ocwen hinted that more deals may be in the offing.

The agreement is expected to be completed by March 31, Atlanta-based Ocwen said Monday in a news release that did not disclose terms.

The sale involves servicing rights tied to about 81,000 performing loans owned by Freddie Mac, the release said. A definitive agreement still has to be reached, and approvals are needed from Freddie and the Federal Housing Finance Agency.

"This transaction represents the first step in the execution of our previously-announced strategy to transfer certain types of nonstrategic servicing," Ocwen Chief Executive Ronald M. Faris said. "We look forward to exploring additional MSR transactions with Nationstar."

It has been a rough several months for Ocwen. It agreed in December to pay New York regulators $150 million to settle allegations that it backdated thousands of foreclosure letters to homeowners. William Erbey, Ocwen's founder and executive chairman, stepped down after 30 years with the company as part of the New York settlement.

In January it agreed to pay $2.5 million to California regulators for failing to provide documents showing it was in compliance with state mortgage lending laws.