Ocwen Financial's Stock Bounces After Deal To Sell $9.6 Billion Portfolio Announced

Ocwen Financial Corp.'s stock erased most of its earlier losses in midday trade Wednesday, after the mortgage-servicing company announced an agreement to sell a $9.6 billion portfolio of mortgage servicing rights to Walter Investment Management Corp. subsidiary Green Tree Loan Servicing. The portfolio consists of about 55,500 largely performing loans owned by Freddie Mac . The sale is expected to close by the end of April. The stock was down 0.4% after a trading halt was lifted. Prior to the halt, which was set before Ocwen announced the portfolio sale, the stock was down 4.6%. The stock has now lost 58% in the past three months, while the S&P 500 has gained 0.3%. Meanwhile, Walter Investment Management's stock surged 18%. Earlier Wednesday, Ocwen delayed the filing of its annual report, again, as it continues to review the ability of its Home Loan Servicing Solutions business to fund new servicing advances.