Ocwen Rallies After Announcing Major MSR Sale To Nationstar

Ocwen stocks are up after announcing the sale of $9.8 billion in mortgage servicing rights, but some analysts worry about how this will affect Ocwen’s non-agency business

Ocwen has announced that it’s selling $9.8 billion in residential mortgage servicing rights to Nationstar Mortgage and that it expects the deal to close by the end of March, pushing its stock price up more than 4% in trading (Nationstar is up 7.8%). Despite the initial rally, some analysts worry that this could be the sign of a major shift that leaves Ocwen out in the cold.

Ocwen intends to get rid of its Agency portfolio

"This transaction represents the first step in the...