In a bid to expand its operational roots, Atlanta-based Ocwen Financial Corp. (OCN) completed the acquisition of Sacramento-based Liberty Home Equity Solutions from Genworth Financial Inc. (GNW). The deal was sealed for $22 million.
Va.-based Genworth acquired Liberty from Sacramento-based Hanson McClain Inc. in Jul 2007. Genworth had paid a total amount of $50 million to complete this buyout.
In 2012, Liberty was the 3rd largest lender in reverse mortgage in the U.S. It provides reverse mortgage to its clients both directly and through various other means that include correspondence as well as wholesale channels. Further, it provides post- retirement security to elders.
With this acquisition, Ocwen will have access to greater market opportunities that will enhance the company’s long-term growth potential. Subsequently, Ocwen will be well poised to help seniors by furnishing them with home equity retirement income solutions that includes Federal Housing Administration (:FHA) and proprietary products.
Over the past couple of years, Ocwen has entered into several significant acquisition deals to expand its mortgage servicing businesses. In Oct 2012, Ocwen entered into a definitive agreement to acquire Homeward Residential Holdings Inc. – an integrated mortgage firm with prime lending and mortgage servicing operations – from WL Ross & Co. LLC.
In 2012, Ocwen acquired Saxon Mortgage Services Inc. from Morgan Stanley (MS) for $59.3 million. Ocwen had also purchased Litton Loan Servicing from The Goldman Sachs Group, Inc. (GS) for $263.7 million in 2011.
Ocwen’s acquisition spree is anticipated to cater well for the company as it will boost its mortgage service operations.
Ocwen currently carries a Zacks Rank #2 (Buy).
More From Zacks.com