Ocwen Financial continues to have a ravenous appetite for mortgage servicing rights (MSR), having closed on $42.2 billion of product in the second quarter while lining up a $2.4 billion deal that will close in September.
It is also a candidate to buy part of Residential Capital Corp.’s MSRs, and recently inked an agreement to buy $300 million of receivables from another seller.
Over the past year Ocwen has agreed to purchase large MSR portfolios from JPMorgan Chase, Litton Loan Servicing and Saxon Mortgage.
The deals were announced as part of the firm’s second-quarter results. During the period, the Atlanta-based specialty servicer reported a $44.8 million profit in the second quarter, a 70% improvement form the same period a year ago.
Ocwen also has been off-loading certain MSRs to its affiliate, Home Loan Servicing Solutions.
According to a press statement, the company has benefitted from declining delinquencies and loan modifications.
The firm also noted that, potentially, it stands to make even more money in the form of what it calls “uncollected and unrecognized” servicing fees tied to delinquent borrowers. At June 30 those uncollected charges totaled $303 million, almost triple the year-ago number.