Nearly $600 Million Q4 Loss at Ocwen

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MORTGAGE EXPERT
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Preliminary financial data indicate that Ocwen Financial Corp. suffered a nearly $600 million loss during the final three months of 2014.

The Atlanta-based company
requested in early March an extension to file its 2014 Form 10-K with the Securities and Exchange Commission.

But Ocwen, which has been unloading mortgage servicing rights at a breakneck pace, missed the extended deadline.

On Tuesday, the mortgage servicer released preliminary financial data for the fourth quarter.

Ocwen said its total servicing portfolio, including real estate owned, was $398.728 billion as of Dec. 31, 2014.

As of three months earlier, $411.280 billion was serviced, while that total was $464.651 billion one year earlier.

Although the latest report didn’t indicate how much of the servicing portfolio was sub-servicing, the sub-servicing portion as of Sept. 30, 2014, was previously reported at $50.360 billion.

According to the report, net income was a whopping $598 million loss.

A year earlier, Ocwen earned a $135 million profit.

Fourth-quarter 2014 net income pushed full-year income to a $546 million loss, swinging from a $310 million profit in 2013.

“During 2014, Ocwen incurred a total of $728.1 million in preliminary normalized expenses,” the report stated. “Normalization items in 2014 include $420.2 million of goodwill impairment, $186.1 million of legal and settlement expenses primarily related to the settlement with the New York Department of Financial Services, $72.3 million for MSR-related fair value changes and $49.5 million of transition and other items.”

Ocwen noted that last year’s preliminary normalized results were impacted by $127 million in servicer expenses and uncollectible advances, $39.4 million in regulatory monitoring costs and a charge to record and a roughly $77 million valuation allowance against the remaining deferred tax asset.

Ocwen President and Chief Executive Officer Ron Faris said in the report that he is encouraged by progress made so far this year, with a 2015 profit expected.

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Mortgage Daily Staff

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