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. 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%.
Sep. 4, 2012, 10:45 AM
Mortgage servicing company Walter Investment Management (WAC +8.2%) continues a torrid run after agreeing to purchase Reverse Mortgage Solutions for $120M. About 20% of the purchase will be paid for with Walter's loftily-priced stock, and management expects the deal to be "significantly accretive" to both earnings and cash flow. (PR)| Sep. 4, 2012, 10:45 AM