Cohane Rafferty Securities assisted Metropolitan Mortgage in the transaction.
Prior to the agreement, public shareholder reports show that Ocwen serviced a portfolio of loans estimated at about $125 million in California, Oregon and Washington--key markets for Metropolitan Mortgage, a diversified financial services company with an estimated $1.1 billion in assets and annual revenue that exceeds $150 million.
Once the deal closes, Ocwen would report a secondary market portfolio of about 280,000 mortgages valued at more than $20 billion. The announcement comes as the West Palm Beach financial services company last reported reduced net income of $2.2 million, or three cents a share, on reduced interest income of $184.8 million for the year ended Dec. 31, compared with net of $19.8 million, or 31 cents a share, on interest income of $253 million for the same period in 1999.
Shares in Ocwen closed up just two cents Wednesday at $9.10 on volume of 312,000 on the New York Stock Exchange, even though the Federal Open Market Committee reduced the federal funds rate by 50 basis points in early morning regulatory action.
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