On Thursday, Ocwen Financial Corporation announced operating results for Q3 2017.
The company recorded a net loss of $6.1 million, which amounts to $0.05 per share for three months prior to their September 30, 2017 end date. This figure is a step forward for Ocwen, who reported a net loss of $9.5 million for the three months prior to their September 30, 2016 end date. Additionally, the Q3 2017 net loss is a $38 million improvement over Q2 2017.
Total revenue amounted to $284.6 million, which is 20.8 percent lower compared to Q3 2016. Ocwen attributes this loss to “the impact of portfolio run-off and lower HAMP fees due to the expiration of the program.”
“We continued to make progress during the third quarter on a number of fronts,” commented Ron Faris, President and CEO of Ocwen. “We transferred the first tranche of mortgage servicing rights under our July agreements with New Residential Investment Corp., and we made progress settling some of our regulatory matters.”
Faris continued, “Our servicing business continues to perform well despite portfolio runoff and achieved its fifth consecutive quarterly pre-tax profit. We continue to focus on helping homeowners in need, including those recently impacted by the hurricanes through a variety of targeted programs. I would also note that our own offices, especially those in the United States Virgin Islands, sustained substantial damage, but we have been able to maintain operations with only minimal interruption.”
During Q3, Ocwen also completed 6,544 loan modifications—9 percent of those were HAMP modifications. Ocwen noted that the HAMP program ended in December 2016, but modifications in process at that time continue to close. Additionally, delinquencies were down from 11.2 percent at December 31, 2016 to 9.4 percent at September 30, 2017, primarily driven by loss mitigation efforts.
The company also originated forward and reverse mortgage loans with unpaid principal balance of $541.2 million and $227.8 million, respectively.
“Our reverse mortgage portfolio ended the quarter with an estimated $98.7 million in undiscounted future gains from forecasted future draws on existing loans,” the company’s release noted.
Earlier this week, Black Knight announced that Ocwen signed a definitive agreement to transition to Black Knight’s LoanSphere MSP loan servicing system.
John Lovallo, spokesperson for Ocwen, said this announcement demonstrates the company’s commitment and continued focus on its core mission of helping homeowners.
“Over a multi-year period, Ocwen undertook a detailed review of industry leading mortgage loan servicing systems,” Lovallo said. “Our decision to transition to the LoanSphere MSP loan servicing system is part of Ocwen’s corporate objectives of reducing costs, streamlining the technology product suite, and creating efficiencies within the organization.”