Ocwen Financial looks to be on the rebound, according to its recently announced operating results for the second quarter of 2017, even though the company reported a loss.
The company recorded a net loss of $44.4 million, which amounts to $0.36 per share for three months prior to their June 30, 2017 end date. This figure is a step forward for Ocwen, who reported a net loss of $87.2 million for the three months prior to their June 30, 2016 end date. Total revenue amounted to #311.3 million, which is 16.6 percent lower to the second quarter of 2016. Ocwen attributes this loss to “the impact of portfolio run-off and lower HAMP fees due to the expiration of the program offset by mortgage lending growth.”
Cash flow figures were up for the first six months of the year compared to that same time period in 2016, at $280.7 million and $172 million, respectively. The second quarter accounted for $195.1 million of the total recorded $280.7 million.
During the second quarter Ocwen also completed 11,029 loan modifications—24 percent of those were HAMP modifications. Additionally, delinquencies were down from 11.2 percent as recorded at year end 2016 to 9.6 percent at second quarter end 2017. The company attributes this decrease in delinquencies to its efforts in loss mitigation.
On the other side of the industry, Ocwen originated forward mortgage loans with an unpaid principle balance (UPB) of $699.5 million; reverse mortgages totaled $275.4 million in UPB.
The company will host a conference call and webcast on Wednesday, August 2, 2017 at 8:30 a.m. EDT to further discuss the contents of this report. Interested parties can join at the company’s website under the “Shareholders” tab. The conference call will appear on the website about two hours after it concludes and will stay on the website for 30 days.