Magazine article Mortgage Banking

Ocwen Financial to Spin off Ocwen Solutions

Magazine article Mortgage Banking

Ocwen Financial to Spin off Ocwen Solutions

Article excerpt

Ocwen Financial Corporation, West Palm Beach, Florida, formally announced in December plans to spin off its knowledge-based business process outsourcing operation, Ocwen Solutions, to Ocwen Financial shareholders.

Once the transaction is completed, Ocwen Solutions will be a separate publicly traded company, according to William Erbey, Ocwen Financial chairman and chief executive officer.

"As an independent company, Ocwen Solutions will be better-positioned to pursue business opportunities with other servicers," said Erbey. "The separation will allow potential investors to choose between the contrasting business models of servicing and business process outsourcing as each is valued differently by the equity markets."

Ocwen Solutions, which serves the mortgage and consumer finance industries through three business segments--mortgage services, technology products and financial services--operates an "asset-light" business model and had less than $24 million in tangible assets as of Sept. 30, 2008, but generated approximately $163 million of trailing 12 months revenue, according to Ocwen Solutions President William Shepro.

"Ocwen Solutions will deploy the strengths that have made Ocwen Financial such an effective subprime mortgage servicer. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.