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Ocwen CFO Resigns—Here’s What’s Next for the Servicer

Michael BourqueOcwen Financial Corporation, a Florida-based financial services holding company, announced that EVP and CFO Michael Bourque has made the decision to resign to accept a position with another financial services company.

In a press statement, the company said that "Bourque’s resignation is not due to any disagreement with Ocwen relating to the company’s operations, policies, or practices." Bourque’s resignation is effective June 22, 2018. He will remain active and engaged in his role with the company through June 22.

“We would like to thank Michael for his financial leadership and his many contributions over the last four years,” said Ron Faris, President and CEO of Ocwen. “While at Ocwen, Michael has focused his efforts on ensuring the Company is in solid financial standing and is well positioned for future success. We respect Michael’s personal decision, and we wish him the best in his new position.”

The company reported that they have begun a search for qualified internal and external candidates to fill the CFO position.

Bourque's resignation comes only a few weeks after President and CEO Ron Faris announced his own impending resignation. Faris will remain President and CEO through June 30, 2018, and will remain a consultant to the company. Ocwen's Board of Directors appointed Glen A. Messina as President and CEO, effective concurrently with the closing of Ocwen’s previously announced acquisition of PHH Corporation. He will also be appointed as a member of Ocwen’s Board at that time. Messina will be based at Ocwen’s West Palm Beach, Florida, corporate headquarters. Ocwen announced its acquisition of PHH Corporation for $360 million in February 2018.

Earlier this month, the company released the details of its earnings for Q1 2018, reporting a net income of $2.6 million for the three months ended March 31, 2018. This is up considerably over Ocwen’s Q1 2017 net loss of $32.6 million—a gain of $35.2 million.

The company reported that pre-tax income for Q1 2018 totaled $5.0 million, a $35.5 million improvement over Q1 2017. The servicing segment recorded $20.5 million of pre-tax income for Q1, marking the seventh consecutive profitable quarter for the business. Finally, the company's lending side recorded $8.8 million of pre-tax income for Q1 2018, a $7.7 million increase over Q1 2017.

The company reported 11,598 loan modifications during Q1. Seventeen percent of these loan modifications included debt forgiveness, which totaled $59 million.

The company also reported a decrease in loan delinquencies from 9.3 percent as of December 31, 2017, to 9.0 percent as of March 31, 2018. It explained this decrease as “primarily driven by loss mitigation efforts.”

About Author: David Wharton

David Wharton, Editor-in-Chief at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 17 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at David.Wharton@thefivestar.com.

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