Barclays to Sell Servicing Unit

Barclays Bank PLC said it will sell a mortgage servicing business it bought four years ago.

Barclays will sell HomEq Servicing to a unit of Ocwen Financial Corp. for about $1.3 billion, it said in a press release. The London bank will give Ocwen $1 billion in secured financing and may help the buyer with third-party financing. It paid Wachovia Corp. $469 million for the subprime servicing business in November 2006.

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