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VISIT US ONLINE @ DSNEWS.COM IN THE NEWS Ocwen Reports Record-Setting Revenue in Q3, Wins Bid for Portfolio After aggressively pursuing opportunities to grow, Ocwen Financial Corporation reported an increase earnings in the third quarter of 2012. The mortgage servicer reported net income of $51.4 million, or $0.37 per share, in Q 3 2012, a sharp increase from the same quarter a year ago when net income was $20.2 million, or $0.19 per share. Revenue soared even higher in Q 3, spiking 90 percent from last year to $232.7 million. Income from operations increased 146 percent to $139.9 million in Q 3 from $56.8 million the same quarter a year ago. Atlanta-based Ocwen says the figures for revenue and income from operations were record-setting numbers. The special servicer also reported delinquencies were reduced in Q 3 to 23.6 percent of its serviced portfolio compared to 24.5 percent in Q2. Just before Ocwen released its thirdquarter earnings November 1, the company experienced a busy month in October. On October 3, Ocwen announced it purchased Dallas-based Homeward Residential Holdings, Inc., for $750 million. Through the deal, Ocwen will acquire about $77 billion in unpaid principal balance (UPB) of mortgage servicing rights (MSRs) as well as Homeward's origination business. The deal is expected to close this month. In addition, Ocwen, along with Walter Investment Management Corp., won a bid to purchase the mortgage servicing and origination platform assets of Residential Capital, LLC (ResCap) for $3 billion. With the ResCap deal, Ocwen acquired about $126.6 billion of UPB in MSRs and $31 billion of UPB of subservicing. "With the closing of the ResCap and Homeward acquisitions, Ocwen will become the fifth largest mortgage servicer in the country," said Ron Faris, president and CEO of Ocwen. Faris added, "More importantly, the infrastructure, management, and staff from these acquisitions expand and enhance our capabilities in important areas such as Ginnie Mae and master servicing. Moreover, the Homeward origination platform will provide Ocwen with organic growth and improved ability to work with existing borrowers on refinancing opportunities." Ocwen issued a statement following news that it had won the bid to acquire ResCap's assets. "ResCap will continue to work with all parties involved to ensure the best possible outcomes for its creditors and other stakeholders in its Chapter 11 cases," the company said. Ocwen also entered into an agreement with Genworth Financial Corporation on October 26 to acquire Genworth Financial Home Equity Access, Inc., which Ocwen says will be renamed Liberty Home Equity Solutions, Inc. (Liberty). Liberty, a reverse mortgage lender, will be bought for a price tag of $22 million in cash. The Liberty deal is expected to close in the first quarter of 2013. THE LEADER IN DEFAULT SERVICING NEWS Equifax Enhances Services to Prepare for Use of E-Signatures The IRS will soon allow electronic signatures on Form 4506-T, Equifax has enhanced its proprietary verification services in anticipation of the change. Equifax is applying e-signature technology to improve its IRS tax transcript fulfillment service. Equifax explained Form 4506-T is important when applying for a loan or a mortgage modification since tax transcripts are required to validate income. Will e-signatures allowed on Form 4506-T, the application process should be faster and more efficient compared with the use of handwritten signatures. On behalf of its clients, Equifax stated it's prepared to start processing 4506-T forms with e-signatures when the IRS service goes live on January 7. The company also acted as a key participant in the IRS' Send My Transcript online application service pilot, which will allow taxpayers to request tax transcripts directly from the IRS online and have the transcripts delivered instantly to their lender, bypassing the need for a 4506-T form altogether. If the pilot is adopted, the program could make the process of verifying income even more efficient. Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. 105