Servicing, Staffing and Closings Down at Ocwen

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MORTGAGE EXPERT
5 · 05 · 14

Ocwen Financial Corp. was not immune to the drop in first-quarter mortgage production that swept the industry. Although its U.S. employment has been reduced, offshore staffing was stable.

In its quarterly earnings report, Ocwen said that originations and purchases totaled $1.417 billion during the three months ended March 31.

Business dropped from $2.118 billion during the previous period and $2.463 billion in the same period last year.

The latest quarter included $0.163 billion in reverse mortgages.

Correspondent acquisitions accounted for $0.356 billion of first-quarter business, while wholesale originations were $0.229 billion and direct production was $0.339 billion.

The primary residential loan servicing portfolio finished March at $391.701 billion, decreasing from $397.547 billion as of Dec. 31, 2013. As of the same date in 2013, the portfolio was $272.252 billion.

The March 31, 2014, servicing portfolio included $170.8 billion in loans serviced by Home Loan Servicing Solutions Ltd.

Ocwen had another $57.869 billion sub-servicing portfolio at the end of March 2014.

Delinquency of at least 60 days on transferred residential loans serviced by Ocwen was 2.9 percent, worsening from 2.6 percent at the end of last year.

Ocwen said that it purchased $0.549 billion in severely delinquent FHA-insured loans under a non-obligatory repurchase arrangement on Ginnie Mae securities. The loans were immediately moved to HLSS Mortgage Master Trust.

Reverse mortgage holdings were expanded to $0.923 billion from $0.618 billion three months earlier.

Prior to income taxes, the Atlanta-based company earned $89 million, improving from $51 million earned in the first-quarter 2013.

Average U.S. employment was reduced to 2,744 people during the first quarter compared to an average of 3,322 for the 12 months ended Dec. 31, 2013. The average was 3,323 during the first-quarter 2013.

But despite the domestic job cuts, offshore headcount slipped to an averaged of 4,767 from 4,873 last year and 4,792 in the first-quarter 2013.

Ocwen disclosed the receipt of a letter from the staff of the Securities and Exchange Commission indicating an investigation is being conducted “relating to Ocwen and making a request for voluntary production of documents and information relating to the April 22, 2014, surrender of certain options to purchase our common stock by Mr. Erbey, our executive chairman, including the 2007 equity incentive plan and the related option grant and surrender documents.”

The company said it intends to cooperate with the request.

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