Mortgage Daily Logo
mortgage news from industry experts

Huge Ocwen Loss as Originations, Servicing Off

Quarterly home lending slipped at Ocwen Financial Corp. but is likely way up for the current period. The company reported a huge loss, while servicing subsided.

Residential loan originations
during the period that began on Jan. 1 and ended on March 31 came to $0.979 billion.

Business dropped off compared to the final three months of last year, when $0.987 billion was funded.

The West Palm Beach, Florida-based firm detailed the data, as well as other operational and financial performance metrics, in its first-quarter 2016 earnings report.

Activity also declined from the first-three months of last year, a period that saw $1.112 billion in production.

First-quarter 2016 business included $0.788 billion in traditional mortgages and $0.191 billion in reverse mortgages.

The retail channel was responsible for $0.111 billion of the latest activity, while wholesale lending totaled $0.424 billion and correspondent acquisitions represented $0.444 billion.

Business during the current quarter is likely to rise based on the fair value of interest rate lock commitments, which soared to $13.5 million from $6.1 million.

The third-party mortgage servicing portfolio finished last month at roughly 1.5 million loans for $223.731 billion.

The portfolio was was down from the end of last year, when Ocwen serviced $230.133 billion, and the same point last year, when 2.1 million loans for $337.125 billion were serviced.

In addition, Ocwen sub-serviced $13.350 billion as of March 31, 2016.

On its balance sheet were $2.771 billion in reverse mortgages at fair value. The total escalated from $2.488 billion at the end of last year.

Ocwen reported a delinquency rate of 13.0 percent, falling from 13.7 percent as of Dec. 31, 2015.
The decline was “primarily driven by improved collections and loss mitigation efforts.”

Representation and warranty obligations have been slashed to $32 million as of the third-quarter 2016 from $119 million a year prior.

Ocwen suffered a $102 million loss before income taxes in the first-three months of this year, not as bad as the $129 million loss in the previous quarter.

Losses swung
from a $43 million first-quarter 2015 profit.

Average U.S. employment as of the first-quarter 2016 was 1,540. Staffing was down from an average of 2,174 last year.

Another 6,167 average employees were offshore, reduced from 6,972 in 2015.

In all, Ocwen said it has a total of approximately 10,500 employees.

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...

Newsletter

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

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION