Ocwen Plans Layoffs at HomEq

A few days ago Ocwen Financial officially closed on its $1.3 billion purchase of HomEq Servicing, North Highlands, Calif. The purchase adds $26 billion of servicing rights to Ocwen's base of subprime receivables. (Figures courtesy of National Mortgage News and the Quarterly Data Report.) The seller was Barclays Capital. But like many M&A deals, this one will result in layoffs. According to local press reports, Ocwen is closing HomEq's servicing site in Raleigh, N.C., with 242 employees losing their jobs.  Almost 900 servicing-related jobs will disappear from HomEq facilities in California. Ocwen, like some mortgage servicers, has moved a portion of its call centers overseas – to India. Sources told NMN recently that Fannie Mae and Freddie Mac have avoided giving large contracts to specialty servicers that use a large number of overseas workers, but that policy has been relaxed in recent months…