Shares of Ocwen Financial Corp. surged on news that it won $850 million in subperforming loans in a U.S. Department of Housing and Urban Development auction.

Shares rose $1.50 to $32.50 Tuesday, after the West Palm Beach, Fla., thrift and a joint venture partner, BlackRock Capital Finance LP, won the right in competitive bidding with other recovery specialists to nurse the loans back to health.

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