JPMorgan Chase & Co. has finally been identified as the buyer of $45 billion in mortgage servicing rights (MSRs) from Ocwen Financial Corp., according to a Bloomberg report published this week.

On March 2, Ocwen said it had signed a letter of intent to sell the MSRs on a portfolio of 277,000 Fannie Mae loans, but it did not name the buyer. The transaction still requires approval from Fannie Mae and the Federal Housing Finance Agency, in addition to the fulfillment of other customary conditions.

In outing JPMorgan as the buyer on March 17, Bloomberg cited “a person familiar with the transaction” who requested anonymity. But pay no attention to that bank behind the curtain — although several media outlets have picked up the story, JPMorgan, Ocwen and Fannie Mae have all declined to comment on it.

JPMorgan, the nation’s second-largest mortgage servicer behind Wells Fargo & Co., purchased MSRs on $70 billion of mortgages from MetLife Inc. in 2012. That transaction, along with the Ocwen purchase, will bring JPMorgan’s MSR portfolio to nearly $1 trillion.

Ocwen said in its March 2 announcement that it expects to complete the transaction by midyear, after which it will hand off servicing rights to the buyer. The company is unloading servicing rights following a settlement with the New York Department of Financial Services in December that requires the company to improve its processes. Last month, Ocwen agreed to sell MSRs on $9.8 billion worth of Freddie Mac loans to Nationstar Mortgage Holdings Inc., a transaction that is expected to generate about $550 million over the next six months.

Ocwen shares rose 4.05 percent to a closing price of $8.99, while JPMorgan shares fell 0.11 percent to $61.54 on the day of Bloomberg’s report.

According to Zacks Equity Research, JPMorgan’s mortgage originations fell 53 percent year over year to $78 billion in 2014. JPMorgan’s third-party MSRs totaled $751.5 billion at the end of fiscal-year 2014, while the company earned $3.61 billion in servicing-related revenues.

“Hence, we believe that after the completion of the aforementioned deal, JPMorgan will be better positioned to earn more revenues from servicing loan portfolios,” the analyst said.

Email Amy Swinderman.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription