NEW YORK CITY-Wells Fargo & Co.'s planned sale of mortgage servicing rights to Atlanta-based Ocwen Financial Corp. was halted by Benjamin M. Lawsky, head of New York State's Department of Financial Services, over concerns that Ocwen would struggle to property service the loans.
Ocwen, a licensed mortgage banker in New York State, has “agreed to put an indefinite hold” on the deal involving $39 billion in loans, according to Bloomberg News.
Ocwen announced in January it would acquire loan servicing from Wells Fargo on approximately 184,000 loans, or roughly 2% of the lender's residential-servicing portfolio.
“Ocwen will continue to work closely with the NY DFS to resolve its concerns about Ocwen's servicing portfolio growth,” the company stated. See story at Bloomberg News.
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