N.Y. regulator nixes Wells Fargo/Ocwen mortgage portfolio sale
Friday, February 07, 2014 11:15 AM
Wells Fargo & Co.'s plans to sell a small portion of its mortgage servicing portfolio to Ocwen Financial Corp. in a $2.7 billion deal came to a dramatic demise Thursday when New York's Department of Financial Services objected, the San Francisco Business Times reported. The regulator said Ocwen has enough trouble servicing mortgages it has picked up from Bank of America Corp., Goldman Sachs Group Inc. and other banks to be taking on $39 billion in Wells Fargo loans. Ocwen said Thursday that it agreed with the New York regulator to put an "indefinite hold" on its deal with Wells Fargo. Wells Fargo Chairman and CEO John Stumpf is joining other major banks in shedding some of their mortgage servicing portfolio in response to regulators requiring them to hold more capital.