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Ocwen Smashes Revenue Records in Q3

After aggressively pursuing opportunities to grow, ""Ocwen Financial Corporation"":http://www.ocwen.com/ (Ocwen) reported an increase earnings in the third quarter of 2012.


The mortgage servicer reported a net income of $51.4 million, or $0.37 per share in Q3 2012, a sharp increase from the same quarter a year ago when net income was a reported $20.2 million, or $0.19 per share.

Revenue soared even higher in Q3, spiking 90 percent from last year to $232.7 million.

Income from operations increased 146 percent to $139.9 million in Q3 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 servicer also reported delinquencies were reduced in Q3 to 23.6 percent compared to 24.5 percent in Q2.

Just before Ocwen released its Q3 earnings November 1, the company experienced a busy month in October.

On October 3, 2012, Ocwen announced it ""will purchase"":http://www.dsnews.com/articles/ocwen-enters-agreement-to-buy-homeward-for-750m-2012-10-03 Dallas-based Homeward Residential Holdings, Inc. (Homeward) 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 in December.

In addition, Ocwen, along with Walter Investment Management Corp., ""won a bid"":http://www.dsnews.com/articles/ocwen-wins-bid-for-rescaps-mortgage-portfolio-2012-10-24 to purchase the mortgage servicing and origination platform assets of Residential Capital, LLC (ResCap) for $3 billion. The bid is subject to Bankruptcy Court approval November 19.

Through the bid, Ocwen will acquire 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 also entered into an agreement with Genworth Financial Corporation to acquire Genworth Financial Home Equity Access, Inc., which Ocwen says will be renamed Liberty Home Equity Solutions, Inc. (Liberty).

Liberty, a leading 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.

About Author: Esther Cho

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