Shares of Ocwen Financial Corp. rocketed 41% in afternoon trade Friday, after the troubled financial services company announced a new proposed deal with New Residential Corp. that includes an upfront payment of $425 million to Ocwen and an equity stake. The stock was the biggest percentage gainer on the New York Stock Exchange. Volume spiked to over 22 million shares, or more than triple the full-day average. Ocwen said the new deal would convert New Residential's existing rights to mortgage service rights (MSRs) to fully-owned MSRs. In addition, New Residential would also make an equity investment in Ocwen and become a 4.9% owner. On April 20, the stock had lost more than half its value after North Carolina ruled the firm couldn't acquire new service rights. Despite Monday's rally, the stock has still tumbled 40% year to date, while the SPDR Financial Select Sector ETF has gained 2.0% and the S&P 500 has advanced 6.8%.
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