In its latest Q4 report released today, Ocwen Financial Corporation reported a fiscal improvement of $57.2 million, despite a net loss of $70.8 million for 2018 it’s up from a net loss of $128.0 million for 2017.
In a statement about the latest report, Glen Messina, CEO Ocwen, said, “We made solid progress in the quarter as we work to realize the scale and cost savings benefits of combining Ocwen and PHH and position the company for future profitability. We are focused on executing our key business initiatives in order to address our most critical near-term business challenges, improve our financial performance, and establish a stronger foundation for the future. We continue with our disciplined and prudent approach to our integration efforts and are encouraged by the overall progress we are making.”
The company completed 39,545 loan modifications in 2018 which included 17 percent or $200 million in debt forgiveness. Primarily driven by acquisition of the lower delinquency PHH portfolio and ongoing consumer assistance efforts, delinquencies decreased from 7.8 percent in September 2018, to 4.9 percent in December. The constant prepayment rate decreased from 13.7 percent in the third quarter of 2018 to 12.9 percent in the fourth quarter of 2018. The company also reported that the prime CPR in Q4 2018 was 14.8 percent, and the non-prime CPR was 11.8 percent. For the full year 2018, the company originated forward and reverse mortgage loans with an unpaid principal balance of $0.9 billion and $0.6 billion, respectively, with a mortgage portfolio estimated at $68.1 million in discounted future gains from future draws on existing loans.
The company is also optimistically looking ahead, with new leadership roles announced- just a few months after Messina took the reigns. Ocwen announced that June C. Campbell will officially take over as the new CFO on March 4, 2019, in addition, Joseph J. Samarias will assume the role of EVP and General Counsel, effective April 1, 2019.
Campbell joins Ocwen from GE Capital, where she held multiple senior management positions in Finance, Capital Markets and Operations during her more than 20-year career at the company. Messina stated, “I look forward to her being an integral member of our management team to help drive long-term success for Ocwen.” Samarias who has been with the company since 2013 and currently serves as SVP and Deputy General Counsel of Litigation and Government Affairs, and Chief Ethics Officer.