Ocwen weighs exit from reverse lending

by Francis Monfort26 Oct 2017
Ocwen Financial is considering a sale of its reverse mortgage business, Liberty Home Equity Solutions, or some of its assets, according to a federal filing made by the company.

The company disclosed that it is in the process of evaluating its long-term strategy with respect to its reverse lending activities, including the potential sale of Liberty Home Equity Solutions or some assets of the business. Ocwen has engaged Barclays Capital to advise it on its alternatives related to its reverse mortgage assets and business.

Although Ocwen thinks its reverse mortgage business has performed well, it said the move is part of initiatives to optimize cost structure and performance.

“Ocwen is continuing to explore strategic approaches to streamline its business and best leverage its competitive advantages. To that end, Ocwen is seeking to focus the company’s operations on mortgage servicing and its retail forward lending channel, primarily through retail lending recapture,” the company said in the filing.

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