March 24, 2015 / 12:40 PM / 5 years ago

UPDATE 1-Ocwen to sell additional $25 bln of loan servicing rights to Nationstar

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March 24 (Reuters) - Ocwen Financial Corp said it would sell an additional $25 billion of servicing rights on agency loans to a subsidiary of Nationstar Mortgage Holdings Inc , its fourth such deal in two months.

Ocwen’s shares fell 6 percent to $8.31 in premarket trading on Tuesday.

The company has been slimming down its operations since regulators questioned its servicing standards last year. Ocwen has sold about $90 billion of servicing rights since February.

The portfolio being sold to Nationstar comprises about 142,000 performing loans owned by government-controlled mortgage finance firms Freddie Mac and Fannie Mae.

Ocwen sold $9.8 billion of servicing rights to Nationstar Mortgage last month.

Ocwen had said earlier this month that it was looking to raise around $550 million by selling servicing rights on agency loans of about $55 billion.

Separately, Ocwen said late on Monday that the New York Stock Exchange had threatened to delist its stock as the company had delayed filing its annual report.

Ocwen agreed in December to replace its chairman and pay New York $150 million after the state accused the company of backdating letters to borrowers and funneling work to affiliates, possibly leading to improper foreclosures.

The company acknowledged that it did not deal with distressed homeowners properly, and may have saddled them with excessive charges while failing to maintain adequate systems for servicing billions of dollars in mortgages.

Investors, including BlackRock Inc and Metlife Inc , have also accused Ocwen of poor mortgage servicing practices. The company rejected the allegations on Monday.

Ocwen and Nationstar said they expect the transaction to close before the middle of the year, subject to approvals by government agencies. (Reporting by Neha Dimri in Bengaluru; Editing by Simon Jennings)

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