Ocwen Financial (OCN) Stock: News Pending Halt | Follow The Story With Us


Ocwen Financial Corp (NYSE: OCN) was off to an incredibly strong day in the market this morning after a strategic business deal was announced. Then, the stock was halted just minutes ago with news pending. As is normally the case, our partners at Trade Ideas were the first to alert us to both the early gains and the halt. OCN was halted at 9:33 while trading at $2.81 per share after a gain of $0.52 per share (22.98%) thus far today.

OCN Gains On Strategic Business Deal

As mentioned above, Ocwen Financial was off to a strong start this morning. The gains came after New Residential Investment CEO Michael Nierenberg said that he was thrilled to announce that the company has agreed on a strategic business deal with OCN.

According to the agreement as it stands, New Residential has agreed to pay OCN $425 million for mortgage servicing rights where New Residential owns the excess. In a statement, Nierenberg had the following to offer with regard to the deal:

That $425 million will be funded as the PSAs are transferred into NRZ’s name. We expect that process to take, hopefully, a short period of time, but we have work to do with the rating agencies, trustees and others to effectuate this transfer into our name that process will begin immediately. We’ve agreed to hire Ocwen as a sub-servicer to a multiyear contract of approximately 5 years and then we’re going to pay Ocwen a subservicing fee associated with that contract. Part of the deal, NRZ will purchase 4.9% of Ocwen’s common equity, which is about 6.1 million shares for $13.9 million that’s as of Friday night’s close…”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on OCN. In particular, we’re interested in following the halt to see exactly what news is still pending. We’re also interested in watching as the deal mentioned above turns to revenue. We’ll continue to follow the story closely and bring the news to you as it breaks!

Update: OCN reopens higher and looks to be continuing upward. The stock is currently (11:30) trading at $3.06 per share after a gain of $0.77 per share, or 33.62%. No new news was released leading up to or following the reopen.

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