Fannie Mae (FNMA)

[Mikey Mike]

Ocwen Sale of $28 Billion in Ginnie Mae MSRs Falls Through

By Paul Muolo

[e-mail]

The troubled Ocwen Financial recently tried to sell a roughly $28 billion package of mortgage servicing rights tied to Ginnie Mae-backed loans, but the portfolio failed to trade, according to investment banking sources familiar with the transaction.

However, these same sources contend that Ocwen was successful in selling a smaller package of Ginnie MSRs. According to figures compiled by Inside Mortgage Finance, Ocwen’s MSR portfolio – after years of blockbuster growth – is now steadily shrinking on both a sequential and year-ago basis. The company declined to discuss anything regarding asset sales.

According to a report from Barclays, Ocwen services roughly $42 billion in Ginnie Mae securities. However, a September ranking from the Department of Housing and Urban Development has Ocwen servicing $26.7 billion in Ginnie MBS.   

A source noted that the $28 billion that failed to sell was originally sold to Ocwen by Residential Capital Corp., a nonbank once controlled by the U.S. Treasury. ResCap was once part of GMAC and Ally Financial.

Other areas of interest: Servicing, Secondary/MBS, Mergers & Acquisitions, Ginnie Mae/FHA