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Barclays selling U.S. mortgage unit with Raleigh office

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A loan servicing company with an office in Raleigh is being sold for the fourth time in ten years.

London-based Barclays Bank has reached a deal to sell HomEq Servicing to Ocwen Financial Services for $1.3 billion.

HomEq has roughly 1,200 employees. About 200 are based in Raleigh, with the rest located at the company's main offices in North Highlands, a suburb of Sacramento, Calif.

HomEq services troubled loans for lenders and investors, taking calls from struggling homeowners and working with borrowers to modify their loans or lower interest rates on their mortgages.

West Palm Beach, Fla.-based Ocwen is one of the country's largest subprime loan servicing companies. It has offices in California, Washington D.C., Florida and Georgia as well as operations in India and Uruguay.

Ocwen officials did not immediately return a call seeking comment about whether the acquisition would affect operations at the Raleigh office.

HomEq was once known as the Money Store. First Union bank turned that loan servicing business into HomEq in 2000.

It became part of Wachovia in 2001 when Wachovia merged with First Union.

Wachovia sold HomEq to Barclays for $469 million in 2006.

Ocwen expects the deal to be completed by the third quarter.

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About the blogger

Business reporter David Bracken came to the N&O in 2004. He covers commercial and residential real estate. Contact David at 919-829-4548 or e-mail him.