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FLORIDA
Ocwen Reports Q1 2018 Earnings, Highlights Debt Forgiveness
Florida-based servicer Ocwen Financial Corporation released
the details of its earnings for Q1 2018, reporting a net income of
$2.6 million for the three months ended March 31, 2018. is is up
considerably over Ocwen's Q1 2017 net loss of $32.6 million—a gain of
$35.2 million.
According to Ocwen, the company "generated revenue of $260.3
million and Cash Flows from Operating Activities of $99.4 million
for the three months ended March 31, 2018." Ocwen reports ending
Q1 2018 with $285.7 million in cash.
Ocwen reported that pretax income for Q1 2018 totaled $5.0
million, a $35.5 million improvement over Q1 2017. Ocwen's servicing
segment recorded $20.5 million of pretax income for Q1, marking
the seventh consecutive profitable quarter for the business. Finally,
Ocwen's lending side recorded $8.8 million of pretax income for Q1
2018, a $7.7 million increase over Q1 2017.
"e first quarter of 2018 was an important one for Ocwen, and
we accomplished a great deal," said Ron Faris, President and CEO
of Ocwen. "In addition to starting out the year with a $2.6 million
profit, we received $280 million in cash from New Residential, we
announced an agreement to acquire PHH Corporation, and we
helped almost 11,600 struggling families remain in their homes
through loan modifications that included $59 million of debt
forgiveness."
Specifically, Ocwen reported 11,598 loan modifications during
Q1. Seventeen percent of these loan modifications included debt
forgiveness.
Ocwen also reported a decrease in loan delinquencies from 9.3
percent as of December 31, 2017, to 9.0 percent as of March 31, 2018.
Ocwen said this decrease was "primarily driven by loss mitigation
efforts."
"Just as importantly, we continued to make progress on the
regulatory front," Faris continued. "We began the process of
deploying our excess liquidity, we largely completed the liquidation of
Automotive Capital Services, and we saw our GAAP stockholders'
equity increase by $85 million to $630 million, or $4.73 per share during
the quarter. We are also making steady progress towards closing our
acquisition of PHH, which we expect to occur in the second half of
the year."
