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John Devaney • 56 Comments
Apr. 7, 2015, 9:46 AM
- New Residential (NRZ +2.7%) initially knee-jerked lower last night and in the premarket following a sizable secondary offering used to finance its asset purchase of basically all of Home Loan Servicing Solutions (HLSS -4%). The stock, however, has now turned higher as investors focus on the improved pricing for NRZ - getting HLSS for $17.08 instead of $18.25.
- Ocwen Financial (OCN +10.3%) is surging as New Residential agrees to extend contracts allowing it to service HLSS's MSRs, and on a two-year agreement not to transfer servicing rights away from Ocwen. Altisource Portfolio Solutions (ASPS +17.6%), Altisource Asset Management (AAMC +9.8%).
- Previously: Quickie marriage for New Residential and Home Loan Servicing; Ocwen flys on NRZ partnership (April 6)
Apr. 6, 2015, 5:20 PM
- The two terminate late February's merger agreement in which New Residential (NYSE:NRZ) was going to purchase Home Loan Servicing Solutions (NASDAQ:HLSS) for $18.25 per share in cash, or roughly $1.3B, and instead enter an asset purchase agreement in which NRZ has paid $1.2B or $17.08 for all 71M shares of HLSS. Adjusting for cash and repayment of HLSS debt, the price works out to about $1B in cash and 28.3M newly issued shares of NRZ - roughly $1.4B.
- The deal had the approval of both boards and did not require a shareholder vote.
- In addition, New Residential agrees to a multiyear extension of the servicing contracts with Ocwen Financial (NYSE:OCN).
- Alongside, New Residential announces a 40M share secondary - 28.3M shares being sold by HLSS and another 11.7M shares by the company. The underwriter greenshoe is another 6M shares.
- NRZ -3.8% after hours to $14.79, Ocwen +9.2%
- HLSS closed today at $17.23.
Feb. 23, 2015, 9:43 AM
- Investors do the math on New Residential's (NRZ +4.6%) purchase of Home Loan Servicing Solutions (HLSS +8.8%), and decide the acquirer has made a nice deal for itself (the stock initially knee-jerked lower in premarket action).
- Via twitter, Tom Adams relays the thoughts of value investor Mangrove Partners. The Cliff's Notes: A great deal for New Residential, but potential trouble for Ocwen Financial (OCN -5.3%).
- NRZ's purchase of HLSS, says Mangrove, increases the chances Ocwen is terminated as servicer, costing it about $650M in earnings via fee income and cleanup costs. Basically, New Residential and its manager Fortress Investments (FIG +1.7%) could end up with Ocwen's servicing rights for free while buying Home Loan Servicing at book value.
- A dial-in conference call with the NRZ and HLSS management teams is set for 11 ET.
- Previously: New Residential scoops up Home Loan Servicing (Feb. 23)
- Nationstar Mortgage (NSM +9.8%), Walter Investment (WAC -4.2%), Altisource Portfolio Solutions (ASPS -0.9%)
Feb. 23, 2015, 7:32 AM
- There's finally a deal for one of the troubled Ocwen Financial family of businesses, with New Residential (NYSE:NRZ) agreeing to buy Home Loan Servicing (NASDAQ:HLSS) for $18.25 per share in cash - a total price of about $1.3B.
- The deal is expected to close in Q2.
- New Residential CEO Michael Nierenberg: "The acquisition will significantly add to the value of our book of mortgage servicing assets and expand our relationships with mortgage servicers to include both Nationstar Mortgage and Ocwen Financial."
- A steal? HLSS has trundled along between $20 and $25 per share for the last two years (while paying a sizable dividend). It fell to as low as about $10 earlier this year amid Ocwen's regulatory issues.
- HLSS +6%, NRZ -2.4% premarket
- Others: Ocwen (NYSE:OCN) +2.1%
Feb. 6, 2014, 12:17 PM
- Ocwen Financial (OCN -9.5%) sinks after WSJ reports New York financial services superintendent Ben Lawsky has halted indefinitely the $2.7B deal to purchase mortgage servicing rights from Wells Fargo (WFC +0.2%) due to concerns over Ocwen's ability to handle more loans.
- The deal, announced last month, would have given OCN the right to service ~$39B worth of loans.
- Other mortgages servicers are dropping too: NSM -3.9%, WAC -3.6%.
Apr. 3, 2013, 7:36 AM
Ocwen Financial (OCN) continues its bid to become a bigger player in reverse-mortgages, purchasing Liberty Home Equity Solutions for an undisclosed amount. "We believe this promising market offers enormous long-term growth potential, and this purchase positions Ocwen to capture that growth." (PR)| Apr. 3, 2013, 7:36 AM
Oct. 3, 2012, 1:20 PM"This is not particularly good news for Nationstar," says Wilbur Ross, talking his book after selling Homeward Residential to Ocwen (OCN +16%). "This is very much a scale business," he says, so those gathering assets the fastest should do best. Left unsaid is the deal likely leaves Nationstar as the winner for the Rescap servicing assets. After a brief dip, NSM +3.8%. | Oct. 3, 2012, 1:20 PM
Oct. 3, 2012, 9:23 AM
Ocwen Financial (OCN) cuts a deal to buy Wilbur Ross' mortgage servicing and origination firm, Homeward Residential Holdings, for $588M in cash and $162M in convertible preferred stock. Homeward has an unpaid portfolio balance (UPB) of more than $77B and a "growing" origination business of $10B annually. Shares +5.8% premarket. (PR)| Oct. 3, 2012, 9:23 AM
Oct. 1, 2012, 9:35 AMIBM is thinking of making a bid for ResCap's mortgage-servicing assets in partnership with Ocwen Financial (OCN) on Oct. 23, the NY Post reports. That could put Big Blue in competition with Berkshire Hathaway (BRK.A, BRK.B), believed to be partnering with a smaller firm. Some think Warren Buffett is only involved to get another bidder, Fortress Investment (FIG), to raise its offer, thereby allowing Berkshire to obtain more for its ResCap debt holdings. (previous) | Oct. 1, 2012, 9:35 AM | 4 Comments
Oct. 24, 2011, 4:38 PM
Morgan Stanley (MS) agrees to sell Saxon Mortgage, a mortgage servicer it bought in 2006, to Ocwen Financial (OCN) for the base purchase price of $59M plus an estimated $1.4B for servicing advance receivables outstanding. Ocwen beat out Fortress Investment Group’s Nationstar Mortgage in a bidding process.| Oct. 24, 2011, 4:38 PM
Sep. 1, 2011, 3:39 AM
Goldman Sachs (GS), its Litton Loan Servicing unit and Ocwen Financial (OCN) reportedly reach a deal with the Fed in which they pledge to end robo-signing among other things, although there's no word of any fines. The agreement will allow Ocwen's $264M buy of Litton to proceed.| Sep. 1, 2011, 3:39 AM | 1 Comment
May 20, 2011, 12:22 PM