Tuesday, October 25, 2011

Ocwen to Buy Saxon for $59.3 Million

Ocwen has agreed to acquire Saxon for the base purchase price of $59.3 million. The deal also includes an estimated $1.4 billion for servicing advance receivables outstanding.

The transaction is expected to close in the first quarter of 2012. According to Reuters, Morgan Stanley bought Saxon in August 2006 for $706 million.

This will mark Georgia-based Ocwen’s second major acquisition of a residential mortgage servicer in less than a year’s time. In both cases, Ocwen took the servicing businesses off the hands of investment banks.

In June, Ocwen agreed to purchase Litton Loan Servicing from Goldman Sachs.

Ocwen completed an earlier acquisition of HomEq Servicing, the U.S. mortgage servicing business of Barclays Bank, in September of 2010.

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