Servicing Off at Ocwen, U.S. Staffing Sinks

Mortgage News

Mortgage Daily Staff

                                                 August 18, 2014

Although originations edged up at Ocwen Financial Corp., the servicing portfolio shrank. U.S. staffing was down, though offshore employment soared.

Second-quarter mortgage originations were 6,378 loans for $1.164 billion. In addition, 1,460 reverse mortgages were funded for $0.145 billion.

Business was up from the first three months of the year, when production totaled 6,235 loans for $1.141 billion. First quarter reverse originations were 1,673 loans for $0.163 billion.

Quarterly business was also down from the second-quarter 2013, when Ocwen originated $1.593 billion in forward mortgages and $0.370 billion in reverse mortgages.

Correspondent acquisitions accounted for $0.671 billion of second-quarter 2014 total activity, while the wholesale channel generated $0.300 billion and $0.338 billion was originated through the direct channel.

First-half 2014 volume, including traditional and reverse mortgages, amounted to 15,746 loans for $2.613 billion.

Ocwen’s servicing portfolio was $379.571 billion as of June 30, 2014, less than the $391.701 billion serviced as of three months earlier but more than the $344.173 billion serviced 12 months earlier.

In addition, Ocwen reported a subservicing portfolio of $55.549 billion as of the most recent date.

Delinquency of at least 60 days on transferred residential loans serviced by Ocwen was 3.6 percent, worsening from 2.9 percent as of March 31.

Reverse mortgage assets have grown to $1.108 billion as of mid-year 2014 from $0.618 billion at the end of 2013.

As previously disclosed, the Atlanta-based company restated its financials for all of 2013 and the first-quarter 2014.

Income before taxes declined to $77 million from the first quarter’s $89 million.

Second-quarter 2013 income before income taxes was a restated $74 million.

Average U.S. employment was 2,519 in the second quarter, down from 2,744 in the prior three-month period and 3,560 in the year-earlier period.

Average offshore employment, however, soared to 6,603 from 4,767 in the first quarter and 4,669 in the second-quarter 2013.

Ocwen disclosed that it received a subpoena from the Securities and Exchange Commission on June 12 requesting documents tied to its dealings with affiliates Altisource, Home Loan Servicing Solutions, Ltd., Altisource Asset Management Corp. and Altisource Residential Corp. and the interest of Ocwen directors and executive officers in those companies. This month, the SEC staff informed Ocwen of plans to serve it with an additional subpoena in relation to the restatement of it financials.

Mortgage Daily Staff

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