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Ocwen, Walter receive approval to purchase Residential Capital businesses

Ocwen Loan Servicing and Walter Investment Management have received approval from the US Bankruptcy Court for the Southern District of New York to complete acquisition of the mortgage servicing and origination businesses from Residential Capital.

Both parties had entered into the asset purchase agreement on 2 November 2012.

Ocwen CEO Ron Faris said the approval will also help them towards completing our acquisition of ResCap’s private label and Freddie Mac servicing assets.

The businesses are expected to advance Ocwen’s strategic goals to expand servicing platform and portfolio.

Sale was originally agreed for a purchase price of $3bn, as recommended to the court by ResCap’s board and management and supported by the unsecured creditors’ committee.

Final purchase price is based on adjustment of the unpaid principal amounts of the related mortgage servicing assets and other customary adjustments.

Transaction is expected to close in the first quarter of 2013 and is subject to customary closing conditions including approval of Freddie Mac, Fannie Mae and various government agencies.

Ocwen is a provider of residential and commercial loan servicing, special servicing and asset management services.

Based in Tampa, Walter is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets.