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Ocwen Pays Less Than Expected for HomEq

""Ocwen Financial Corp."":http://www.ocwen.com paid $1.196 billion for HomEq Servicing, 7.4 percent less than the $1.3 billion the Florida-based company had initially estimated.

The deal with HomEq's parent ""Barclays Bank"":http://www.barclays.co.uk/ was originally announced in May and ""closed two weeks ago"":http://dsnews.comarticles/ocwen-completes-homeq-acquisition-closes-two-facilities-2010-09-07.

[IMAGE] [COLUMN_BREAK]

Ocwen says 134,000 home loans were transferred from HomEq and immediately boarded onto Ocwen's system on September 1.

Ocwen said in a new filing with the ""Securities and Exchange Commission"":http://www.sec.gov (SEC) that the primary reason for the reduction in the purchase price for the HomEq acquisition is that the unpaid principal balance of the boarded loans was $22.4 billion, which is $5.6 billion less than previously anticipated.

The subprime servicer says this reduction is ""due to normal runoff in the securitization portfolio and a reduction in the whole loans transferred from HomEq Servicing.""

""For the reduced HomEq investment, the expected rate of return has improved somewhat,"" according to Ocwen.

As ""DSNews.com previously reported"":http://dsnews.comarticles/ocwen-completes-homeq-acquisition-closes-two-facilities-2010-09-07, Ocwen plans to close HomEq's two facilities in Raleigh, North Carolina, and North Highlands, California, and terminate 1,158 staff.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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