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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.


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.