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Under the terms of the deal, RMS will assign the subservicing contracts for the reverse mortgages it currently subservices to PHH. As of March 31, RMS serviced roughly 35,000 reverse mortgages, or approximately $7.8 billion in unpaid principal balance.
The transaction will also see PHH assume the vast majority of the RMS reverse servicing and REO employees. PHH will become the subservicer under the five-year agreement for reverse mortgages owned by RMS and MAM.
The acquisition is expected to close in the third quarter of 2021 and is still subject to certain post-closing adjustments, regulatory approvals, and other customary closing conditions.
“Our Liberty Reverse Mortgage platform is one of the premier reverse mortgage lenders in the industry, and we believe this transaction complements our existing capabilities and further solidifies our leadership position. We look forward to closing this transaction, welcoming the RMS team, clients and customers to the Ocwen/PHH family, and continuing our long-term partnership with Waterfall,” Messina said.