WEST PALM BEACH, Fla., Aug. 13 (dbusiness) -- Two
weeks after agreeing to pay over $95 million for Ocwen
Asset Investment, Ocwen Financial Corp. Friday
announced a deal that will help pay that staggering bill.
Ocwen Financial said it has struck a deal with Southern
Pacific Funding Corp. to service 17,660 subprime
residential mortgage loans, with an unpaid principal balance
of $1.3 billion. The loans were transferred to
Ocwen's new national servicing center in Orlando on Aug.
For those that care, OCN is making its REALTRANS
software available for investors and analysts to review
over the internet. I am doing a 1 and 1/2 hour demo of
it this friday with the Piper Jaffrey analyst. Two
other software products are on track to be released
later this fall. BancAmerica is reportedly a large new
client of OCN's and other large mortgage originators are
trying out the product. If OCN gets a little luckly,
this could be a very big product for the company. Call
the company and sign up for a review of REALTRANS.
I'd love to read what some of you think of the
kudos if you are correct opinionated one. I will,
however, wait for the announcement to celebrate.
Information on my end would lead me to believe you are
correct. Illiquidity of OAC assets, however, is a concern
as year end approaches. Could be more charges.
I spoke to an investment banker who's name will
go undisclosed and the word is that Bill Erbey has
confirmed that it is too late for other bidders to bid on
the UK operation. The buyer has been selected. I
think it is AFS but I am not positive. The gain should
be very substantial...maybe .70 cents per share.
More importantly, OCN will have gotten rid of the sub
prime origination business and all the residuals
associated with it. OCN is rapidly evolving into a pure
servicing company worth a high pe. It will take some time
obviously...OCN still has to acquire OAC and then slowly
liquidate the residuals and the real estate. The OTX
technology may or may not be worth a lot of money...we shall
see more of that by the fourth quarter. This stock
has a very good chance of going to $16/share within
18 months in my opinion.