Ocwen Sells Mortgage Servicing Rights

Per the WSJ:

Ocwen Financial Corp. said Monday that it has agreed to sell $9.8 billion in servicing rights to Nationstar Mortgage Holdings Inc. as the embattled mortgage-servicing company overhauls its business amid recent regulatory penalties.

Shares climbed 6.7% in premarket trading after gaining 57% this month.

The sale comes after years of regulatory scrutiny of Ocwen over alleged homeowner abuses. In December, Ocwen’s executive chairman resigned as part of a $150 million settlement with New York’s top financial regulator, which also included the appointment of an outside monitor.

In the wake of the settlement, Ocwen said it would withdraw from the business of servicing mortgages backed by the U.S. government and would instead focus just on so-called nonagency mortgages.

The portfolio of about 81,000 loans included in the sale are owned by Freddie Mac . The deal is expected to close by March 31, with loan servicing transferring in April.