Tag Archives: Ocwen

Ocwen Financial Corporation experienced a surge in net income for the first quarter, which more than doubled over a year, and reported record revenue. In Q1 2013, Ocwen's net income jumped to $45.1 million, or $0.31 per share, up from 19.3 million, or $0.14 per share, a year ago. Revenue for the Atlanta-based company also surged 147 percent year-over-year to $406.7 million in Q1 2013, while income from operations increased 108 percent to $163.1 million during the same time period. ""Ocwen's core earnings and cash-flow were strong in the first quarter, and we should see these trend higher as a percentage of revenue as we drive down costs and delinquencies on newly acquired business,"" said Bill Erbey, Ocwen's chairman.

Ocwen Financial Corporation announced the closing of its deal to acquire the country's largest reverse mortgage lender. The Atlanta-based financial services holding company announced in October it had entered into an agreement with Genworth Financial Corporation to purchase Liberty Home Equity Solutions, at the time known as Genworth Financial Home Equity Access. The purchase price was approximately $22 million. Ocwen CEO Ron Faris said the deal ""positions [Ocwen] well in a market with enormous future growth potential.""

Since the housing crisis, many large banks have sold off servicing portfolios to smaller, emerging companies. According to a recent study, these portfolios often begin to perform better after the transfers. Opera Solutions found faster liquidations and better long-term performance for modified loans after portfolios were sold. According to the study, two servicers stand out for acquiring the ""lion's share"" of servicing rights--Ocwen and Nationstar. At Ocwen, which acquired the most loans, the study detected higher levels of foreclosures and REO rates immediately following acquisitions. However, after a period of months, Ocwen's portfolios stabilized and improved.

Ally Bank, a subsidiary of Ally Financial, announced an agreement to sell mortgage servicing rights (MSRs) to Ocwen Financial Corporation for $585 million. The transaction includes MSRs with an unpaid principal balance of $85 billion and another $5 billion in agency MSRs created based on commitments made through the end of February. ""Ally continues to make significant progress in exiting its non-strategic mortgage activities. Going forward, the Bank's full focus and resources will be centered on its leading direct banking franchise and advancing its customer-centric deposit activities, as well as continuing to grow its key role in Ally's auto finance operation,"" said Barbara Yastine, president and CEO of Ally Bank.

Residential Capital, LLC (ResCap) announced it has completed the sale of its servicing platform assets to Ocwen Loan Servicing, LLC. Ocwen won an auction for ResCap's mortgage servicing and origination assets in a joint bid with Walter Investment Management Corp.

Altisource Portfolio Solutions announced it is purchasing certain fee-based businesses from Ocwen Financial for a combined purchase price of $218.6 million. According to a company release, Altisource entered into non-binding letters of intent with Ocwen to acquire certain fee-based businesses related to the servicer's recent purchase of Homeward Residential and the anticipated purchase of the mortgage servicing platform from Residential Capital.

A review of Ocwen's mortgage servicing practices has found indications of non-compliance with recent servicing reforms, New York's Department of Financial Services announced. The exam found that Ocwen sometimes failed to provide a single point of contact for borrowers, pursued foreclosure actions on borrowers seeking loan modifications, failed to conduct an independent review of loan mod denials, and failed to ensure that borrower and loan information was accurate and up to date. Following the examination, the department is now requiring that Ocwen hire an independent monitor to review its operations and identify and report on corrective actions.

Ocwen Loan Servicing, LLC and Walter Investment Management Corp. announced the U.S. Bankruptcy Court for the Southern District of New York approved their bid for Residential Capital, LLC (ResCap). In October, Ocwen and Walter Investment won a bid priced at $3 billion for ResCap’s mortgage servicing and originations businesses. The transaction is expected to close in the first quarter of 2013, according to the announcements.

Mortgage Daily released a list of the top 10 servicers based on portfolio size as of September 30. However, Mortgage Daily says spots 4-6 on the third quarter list could change due to recent acquisitions from Ocwen Financial Corporation, Nationstar Mortgage, and Walter Investment Management. For now, top servicers on the list were Wells Fargo, Bank of America, Chase, Citigroup, and U.S. Bank. Ocwen, which is not on the top 10 list, is expected to move into a top five position.

After aggressively pursuing opportunities to grow, Ocwen Financial Corporation (Ocwen) reported an increase earnings in the third quarter of 2012. The mortgage servicer reported a net income of $51.4 million in Q3 2012, a sharp increase from the same quarter a year ago when net income was a reported $20.2 million. Revenue soared even higher in Q3, spiking 90 percent from last year to $232.7 million.