Mortgage servicer Ocwen Financial surged as much as 46% on Monday after saying it will sell $425 million of assets to help boost the company's finances.
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Loan-servicing company Ocwen Financial explodes higher after unloading a bunch of assets (OCM)
Ocwen Financial surged as much as 46% on Monday after saying it will sell $425 million of assets to help boost the company's finances.
New Residential Corporation will purchase mortgage servicing rights from Ocwen in a transaction and start a new five-year subservicing agreement, the company said in a statement. In addition to the upfront cash payment, New Residential will also make an equity investment in Ocwen and become a 4.9% owner.
"We would expect the shares to do well both on earnings and on the Ocwen transaction," according to Keefe, Bruyette & Woods analyst Bose George.
It's welcome news for Ocwen, which lost more than half its market value last month after the
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