Mortgage Daily Logo
mortgage news from industry experts

Losses Continue at Ocwen, Originations Down

At a time when most of the industry is seeing origination gains, Ocwen Financial Corp. had a decline. Losses continued, and staffing was diminished, but delinquency improved.

Ocwen’s second-quarter earnings report reflected more than $28 million in losses before income taxes during the three months that finished on June 30.

The West Palm Beach, Florida-based company cut its losses from one year previous, when they came in $42 million. Earnings, however, swung from a $5 million first-quarter 2018 profit.

“We are facing certain challenges and uncertainties that could have significant adverse effects on our business, financial condition, liquidity and results of operations,” the report stated. “The ability of management to appropriately address these challenges and uncertainties in a timely manner is critical to our ability to operate our business successfully.”

Residential loan originations totaled $0.370 billion, falling from $0.377 in the first quarter and plunging from $0.975 billion in the second-quarter 2017.

The decline in business contrasts that of the rest of the industry — which mostly has been reporting solid gains.

Full first-half volume amounted to $0.750 billion.

Second-quarter 2018 production consisted of $0.216 billion in forward mortgages, about the same as the previous quarter, and $0.154 billion in reverse mortgages, dropping 6 percent.

Refinance share during the entire first-six months of 2018 on the forward portion of originations was 100 percent.

The primary servicing portfolio ended the first half at $165.527 billion. Ocwen has reduced the portfolio from $171.596 billion the preceding period and $190.929 billion at the same point in 2017. Most recently, the total included $94.730 billion on loans where the mortgage-servicing rights have been sold to New Residential Investment Corp.

Another $1.600 billion was subserviced as of last month.

On Ocwen’s balance sheet were $5.144 billion in loans held for investment, up from $4.988 billion as of March 31 and $4.224 billion as of mid-2017.

Delinquency finished June 2018 at 8.3 percent, down from 9.0 percent three months earlier and 9.6 percent one year earlier.

Based on staffing data provided by Ocwen, Mortgage Daily estimates that U.S. headcount was approximately 1,600 people as of mid-2018. Ocwen cut its payroll from 1,854 the prior quarter and 2,400 a year prior.

An additional 4,500 employees were located in India as of last month, and 500 were in the Philippines.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts