Ocwen [1] Financial released their operating results for Q4 and full year 2016 on Wednesday. In Q4 2016, Ocwen’s servicing segment recorded $43.3 million in pre-tax income, a gain over the previous quarter by $10.1 million. However, for 2016 as a whole, the servicing segment recorded a $6.5 million loss, while the company as a whole recorded a net loss of $10.4 million. Full year net loss equaled $199.6 million. Though the servicer recorded losses, 2016 saw gains for the company who saw a net loss of $246.7 million in 2015.
The losses can be partly attributed to the fact that at the end of Q4 2016, Ocwen had not yet payed various legal and settlement amounts, which total approximately $68 million. For Q4 2016, Ocwen posted a net loss of $10.2 million company-wide.
Overall, the servicer’s revenue was $1.4 billion for 2016. The company generated $475 million of cash flows from operating activities in 2016, ending the year with $257 million of cash.
Delinquencies on Ocwen’s books decreased from 11.4 percent to 11.2 percent between Q3 and Q4 2016. The company’s reverse mortgage portfolio was worth $101.1 million by the end of the year. The originated $4.2 billion in forward mortgage loans and $825.5 million in reverse mortgages.
“Not only did we deliver significantly improved financial performance versus the first half of the year, we continued our industry leadership in helping struggling families remain in their homes through responsible loan modifications,” said Ron Faris, President and CEO of Ocwen. “We also refinanced our corporate debt, improved our cost structure, and raised our servicer ratings and rankings. In addition, we continued to make progress towards resolving our major legacy legal and regulatory issues; but more progress is needed for us to complete our stabilization process.”
As DS News reported [2] on Friday, Ocwen recently reached a settlement with the State of California Department of Business Oversight that restores the company’s ability to acquire servicing rights in the state.
With the restriction in California lifted, Ocwen is partnering with NID Housing Counseling Agency and the NAACP to assist customers who are struggling to pay their mortgage at an event on February 25 in Los Angeles.
Jill Showell, SVP of Government and Community Relations at Ocwen said, “NID and the NAACP share our belief that homeownership is the foundation of strong communities, and we are proud to be working together to bring relief to struggling borrowers in the Los Angeles area.”
Customers will be able to meet with Ocwen Home Retention Agents and NID housing counselors to discuss loan modification options.