Ocwen Financial Corporation
Nov 5, 2009

Ocwen Financial Corporation Announces Third Quarter Financial Results

WEST PALM BEACH, Fla., Nov. 5, 2009 -- As a result of a $50.6 million one-time tax expense arising from the separation of Ocwen Solutions, Ocwen Financial Corporation ("Ocwen" or the "Company") (NYSE:OCN) today reported a net loss of $42.0 million or $0.51 per share for the three months ended September 2009. This compares to net income of $15.0 million or $0.23 per share for the third quarter of 2008. Pretax income from continuing operations for the third quarter of 2009 was $23.5 million as compared to $23.4 million for the same period last year. Deferred tax assets offset $24.3 million of the one-time tax expense arising from the separation.

The net loss for the nine months ended September 2009 was $9.1 million or $0.13 per share. This compares to net income of $17.5 million or $0.28 per share for the same period in 2008. As with the three month reporting period, the net loss was solely due to the tax impact of the separation of Ocwen Solutions. Pretax income from continuing operations was $73.1 million for the nine months ended September 2009 as compared to $34.9 million for the nine months ended September 2008.

BUSINESS PERFORMANCE HIGHLIGHTS

 * Ocwen completed a stock offering on August 18, 2009 which enhanced
   liquidity by $275.0 million. Total liquidity was $408.9 million
   while excess advance financing capacity was $720.2 million.

 * Ocwen added $4.4 billion in unpaid principal balance (UPB) of loans
   serviced under a special servicing agreement in August 2009 and
   $9.7 billion UPB under a subservicing agreement entered into in
   October 2009.

 * Cumulative trial mortgage loan modification offers under the
   federal government's Home Affordable Modification Program (HAMP)
   grew to 10,537 during the quarter representing a 109% increase in
   new trial offers extended during the third quarter. As of September
   2009 there were 4,731 active HAMP trials. Lower trial modification
   offers during the second quarter yielded lower completed
   modifications in the third quarter.

 * Cost reduction efforts led to a 15% decline in operating costs as
   measured per dollar of UPB for the three months ended September
   2009 (8 basis points) as compared to September 2008 (9 basis
   points).

Chairman and CEO William Erbey stated, "We are pleased with the successful separation of Ocwen Solutions and our progress on other key strategic initiatives to enhance liquidity, increase revenue and maintain quality while reducing costs, but there is much work yet to be done to capitalize on the opportunities before us. We continue to pursue more than $50 billion of additional UPB in potential servicing transactions in various stages of development. In addition to growing our servicing portfolio, we are working hard to improve our loss mitigation performance. Even though we lead the industry in loss mitigation, there is room for improvement which will have a positive impact on our bottom line. We do not recognize revenue on delinquent loans until they become current, principally through modifications, or sold as REO. This revenue is deferred but not lost. We do, however, recognize all expenses. Therefore, there is a significant opportunity for further increases in revenue and reductions in the level of assets dedicated to the business by reducing the inventory of delinquent loans. In October, for the first time since the enactment of HAMP, delinquencies as a percentage of the portfolio declined."

Ocwen Asset Management

Ocwen Asset Management generated income from operations of $30.1 million in the third quarter of 2009, 33% lower than the third quarter of 2008. Income from continuing operations before taxes for the third quarter of 2009 declined 36.6% to $16 million from $25.2 million in the third quarter of 2008 reflecting the expected decline in loan modifications and lower servicing UPB, partially offset by lower operating expenses.

Servicing

Income from continuing operations before taxes for Servicing of $17.7 million declined 39.1%, an $11.3 million decrease from the third quarter of 2008. The two primary drivers of the decline are lower UPB and a decrease in revenues associated with loan modifications in connection with the implementation of the HAMP. Servicing realized operating expense savings of 23.5%, or $9.5 million, from reduced staffing levels, lower amortization and lower compensating interest expense compared to the third quarter of 2008.

Loans and Residuals

Losses from continuing operations before taxes for Loans and Residuals decreased to $0.1 million as compared to $0.5 million in the second quarter of 2008. This improvement was primarily due to lower unrealized losses associated with declines in the estimated market value of loans, real estate and residual securities.

Asset Management Vehicles

Asset Management Vehicles incurred a $1.6 million loss from continuing operations before taxes as compared to a $3.3 million loss from continuing operations in the third quarter of 2008 primarily due to lower unrealized losses on residual securities and lower realized and unrealized losses on real estate.

Ocwen Solutions

Our Ocwen Solutions line of business, consisting of the Mortgage Services, Financial Services and Technology Products segments, was separated as of August 10, 2009. For the six weeks of the third quarter for which Ocwen Solutions was included in our results, revenue was $24.0 million and pre-tax income was $3.2 million. Operating expenses included a one-time charge of $2.3 million for the closure of two locations. These partial quarter results of Ocwen Solutions may not be indicative of results for the full quarter and were ahead of the previous quarter's results for the same period excluding the one time charge previously mentioned. As a separate, publicly-traded company, Altisource Portfolio Solutions S.A. (Nasdaq:ASPS) will file a Form 10-Q with the Securities and Exchange Commission.

Corporate

Unrealized gains on auction rate securities were $7.3 million in the third quarter of 2009, compared to no gain or loss in the third quarter of 2008. Total consolidated assets declined 16.2% from December 31, 2008 to $1,875.1 million at September 30, 2009 primarily due to a decrease in total advances and a reduction in cash, deferred tax assets, net, and goodwill and intangibles, net from the separation of Ocwen Solutions. Total consolidated liabilities decreased 37.5% from December 31, 2008 to $1,017.6 million at September 30, 2009. This was primarily due to debt repayments and a decline in match funded and servicer liabilities.

Prior periods were adjusted to give effect to the required retrospective adoption of new accounting guidance which caused us to recognize additional non-cash interest expense related to the convertible notes outstanding.

Ocwen Financial Corporation is a leading provider of residential and commercial loan servicing, special servicing and asset management services. Ocwen is headquartered in West Palm Beach, Florida with offices in California, the District of Columbia, Florida, Georgia and New York and support operations in India and Uruguay. Utilizing proprietary technology and world-class training and processes, we provide solutions that make our clients' loans worth more. Additional information is available at www.Ocwen.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the securitization market and our plans to securitize loans and expectations as to the impact of rising interest rates and cost-effective resources in India. Forward-looking statements are not guarantees of future performance, and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially.

Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: general economic and market conditions, prevailing interest or currency exchange rates, governmental regulations and policies, international political and economic uncertainty, availability of adequate and timely sources of liquidity, federal income tax rates, real estate market conditions and trends and the outcome of ongoing litigation as well as other risks detailed in OCN's reports and filings with the Securities and Exchange Commission, including its periodic report on Form 10-K for the year ended December 31, 2008 and Forms 10-Q for the quarters ended March 31, 2009, June 30, 2009, and September 30, 2009. The forward-looking statements speak only as of the date they are made and should not be relied upon. OCN undertakes no obligation to update or revise the forward-looking statements.

 Residential Servicing Statistics (Dollars in thousands)
 -------------------------------------------------------

                          At or for the three months ended
            -----------------------------------------------------------
              Sept. 30,   June 30,    March 31,   Dec. 31,   Sept. 30,
                2009       2009         2009        2008        2008
            ----------- ----------- ----------- ----------- -----------
 Total
  unpaid
  principal
  balance
  of loans
  and REO
  serviced
  (1)       $40,293,698 $38,406,007 $40,789,135 $40,171,532 $41,754,368
 Non-per-
  forming
  loans and
  REO
  serviced
  as a % of
  total UPB
  (1)(2)        26.9%       27.4%       25.1%       24.3%       22.7%
 Prepayment
  speed
  (average
   CPR)           20%         22%         22%         25%         26%

 (1) Excluding REO serviced pursuant to our contract with the U.S.
     Department of Veterans  Affairs,  which we elected not to renew
     in July 2008. Transition of the remaining properties to the new
     service provider was completed in October.

 (2) Loans for which borrowers are making scheduled payments under
     forbearance or bankruptcy plans are considered performing loans.
     Non-performing loans exclude those serviced under special
     servicing agreements where we have no obligation to advance.



 Segment Results
 (Dollars in thousands)
                              Three months            Nine months
 ---------------------- ----------------------  ----------------------
 For the periods ended
 September 30,             2009        2008        2009        2008
 ---------------------- ----------  ----------  ----------  ----------
                                   (As adjusted)          (As adjusted)
 Ocwen Asset Management

  Servicing
   Revenue              $   62,118  $   86,058  $  199,539  $  264,985
   Operating expenses       30,749      40,218      97,922     124,893
                        ----------  ----------  ----------  ----------
    Income from
     operations             31,369      45,840     101,617     140,092
   Other expense, net      (13,688)    (16,816)    (43,236)    (57,777)
                        ----------  ----------  ----------  ----------
    Income from
     continuing
     operations before
     taxes                  17,681      29,024      58,381      82,315
                        ----------  ----------  ----------  ----------
  Loans and Residuals
   Revenue                      --          --          --          --
   Operating expenses          891         812       2,202       2,280
                        ----------  ----------  ----------  ----------
    Loss from
     operations               (891)       (812)     (2,202)     (2,280)
   Other income
    (expense), net             809         291      (4,861)     (7,342)
                        ----------  ----------  ----------  ----------
    Loss from
     continuing
     operations before
     taxes                     (82)       (521)     (7,063)     (9,622)
                        ----------  ----------  ----------  ----------
  Asset Management
   Revenue                     432         819       1,429       2,997
   Operating expenses          753         885       2,530       2,501
                        ----------  ----------  ----------  ----------
    Income (loss) from
     operations               (321)        (66)     (1,101)        496
   Other expense, net       (1,317)     (3,258)     (2,466)     (6,542)
                        ----------  ----------  ----------  ----------
     Loss from
      continuing
      operations before
      taxes                 (1,638)     (3,324)     (3,567)     (6,046)
                        ----------  ----------  ----------  ----------
 Income from continuing
  operations before
  income taxes              15,961      25,179      47,751      66,647
                        ----------  ----------  ----------  ----------

 Ocwen Solutions
  Mortgage Services
   Revenue                  11,869      12,331      54,052      43,580
   Operating expenses        8,131       9,674      37,039      34,137
                        ----------  ----------  ----------  ----------
    Income from
     operations              3,738       2,657      17,013       9,443
   Other income, net            81          49         802         646
                        ----------  ----------  ----------  ----------
    Income from
     continuing
     operations before
     taxes                   3,819       2,706      17,815      10,089
                        ----------  ----------  ----------  ----------
  Financial Services
   Revenue                   6,506      18,654      40,293      57,182
   Operating expenses        9,295      22,003      45,001      62,140
                        ----------  ----------  ----------  ----------
    Loss from
     operations             (2,789)     (3,349)     (4,708)     (4,958)
   Other expense, net         (146)       (467)     (1,261)     (1,429)
                        ----------  ----------  ----------  ----------
    Loss from
     continuing
     operations before
     taxes                  (2,935)     (3,816)     (5,969)     (6,387)
                        ----------  ----------  ----------  ----------
  Technology Products
   Revenue                   5,648      11,672      28,331      34,556
   Operating expenses        3,343       9,528      18,638      28,210
                        ----------  ----------  ----------  ----------
    Income from
     operations              2,305       2,144       9,693       6,356
   Other income
    (expense), net              26         (87)       (103)     (5,721)
                        ----------  ----------  ----------  ----------
    Income from
     continuing
     operations before
     taxes                   2,331       2,057       9,590         635
                        ----------  ----------  ----------  ----------
 Income from continuing
  operations before
  income taxes               3,215         947      21,436       4,337
                        ----------  ----------  ----------  ----------

 Corporate Items and
  Other
   Revenue                     319          12         681         154
   Operating expenses        3,555       2,225      11,367      14,206
                        ----------  ----------  ----------  ----------
    Loss from
     operations             (3,236)     (2,213)    (10,686)    (14,052)
   Other income
    (expense), net           7,518        (503)     14,566     (21,993)
                        ----------  ----------  ----------  ----------
    Income (loss) from
     continuing
     operations before
     taxes                   4,282      (2,716)      3,880     (36,045)
                        ----------  ----------  ----------  ----------

 Corporate Eliminations
  Revenue                   (3,540)     (8,285)    (17,204)    (22,727)
  Operating expenses        (3,344)     (7,887)    (16,410)    (21,568)
                        ----------  ----------  ----------  ----------
   Loss from
    operations                (196)       (398)       (794)     (1,159)
  Other income, net            196         398         794       1,159
                        ----------  ----------  ----------  ----------
   Income from
    continuing
    operations before
    taxes                       --          --          --          --
                        ----------  ----------  ----------  ----------
 Consolidated income
  from continuing
  operations before
  income taxes          $   23,458  $   23,410  $   73,067  $   34,939
                        ==========  ==========  ==========  ==========


              OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (Dollars in thousands, except share data)


                              Three months            Nine months
                        ----------------------  ----------------------
 For the periods ended
 September 30,             2009        2008        2009        2008
 ---------------------  ----------  ----------  ----------  ----------
                                   (As Adjusted)          (As Adjusted)
 Revenue
  Servicing and
   subservicing fees    $   57,534  $   91,298  $  201,832  $  290,200
  Process management
   fees                     23,735      27,453      97,513      81,794
  Other revenues             2,083       2,510       7,776       8,743
                        ----------  ----------  ----------  ----------
   Total revenue            83,352     121,261     307,121     380,737
                        ----------  ----------  ----------  ----------

 Operating expenses
  Compensation and
   benefits                 18,959      33,727      74,758      96,567
  Amortization of
   servicing rights          7,159      12,106      25,743      40,712
  Servicing and
   origination               7,804      11,540      36,277      37,589
  Technology and
   communications            4,206       6,022      13,495      17,713
  Professional services      6,378       5,973      21,772      27,058
  Occupancy and
   equipment                 4,192       5,131      15,056      17,471
  Other operating
   expenses                  4,675       2,959      11,188       9,689
                        ----------  ----------  ----------  ----------
   Total operating
    expenses                53,373      77,458     198,289     246,799
                        ----------  ----------  ----------  ----------

 Income from operations     29,979      43,803     108,832     133,938
                        ----------  ----------  ----------  ----------
 Other income (expense)
  Interest income            1,992       3,448       6,411      11,492
  Interest expense         (16,145)    (19,334)    (50,108)    (66,513)
  Gain (loss) on
   trading securities        8,291        (621)     13,346     (22,366)
  Gain (loss) on debt
   redemption                1,600          --       2,134         (86)
  Loss on loans held
   for resale, net          (1,242)       (674)     (8,783)    (11,112)
  Equity in losses of
   unconsolidated
   entities                 (1,059)     (2,928)     (1,608)    (10,628)
  Other, net                    42        (284)      2,843         214
                        ----------  ----------  ----------  ----------
   Other expense, net       (6,521)    (20,393)    (35,765)    (98,999)
                        ----------  ----------  ----------  ----------

 Income from continuing
  operations before
  income taxes              23,458      23,410      73,067      34,939
 Income tax expense         65,294       8,330      82,803      11,693
                        ----------  ----------  ----------  ----------
   Income (loss) from
    continuing
    operations             (41,836)     15,080      (9,736)     23,246
 Income (loss) from
  discontinued
  operations, net of
  income taxes                (231)       (186)        633      (5,572)

                        ----------  ----------  ----------  ----------
   Net income (loss)       (42,067)     14,894      (9,103)     17,674
    Net loss (income)
     attributable to
     minority interest
     in subsidiaries            36          82          11        (143)
                        ----------  ----------  ----------  ----------
   Net income (loss)
    attributable to
    Ocwen Financial
    Corporation (OCN)   $  (42,031) $   14,976  $   (9,092) $   17,531
                        ==========  ==========  ==========  ==========

 Basic earnings per
  share
   Income (loss) from
    continuing
    operations
    attributable to OCN
    common shareholders $    (0.51) $     0.24  $    (0.14) $     0.37
   Income (loss) from
    discontinued
    operations
    attributable to
    OCN common
    shareholders                --          --        0.01       (0.09)
                        ----------  ----------  ----------  ----------
   Net income (loss)
    attributable to OCN
    common shareholders $    (0.51) $     0.24  $    (0.13) $     0.28
                        ==========  ==========  ==========  ==========

 Diluted earnings per
  share
   Income (loss) from
    continuing
    operations
    attributable to OCN
    common shareholders $    (0.51) $     0.23  $    (0.14) $     0.37
   Income (loss) from
    discontinued
    operations
    attributable to
    OCN common
    shareholders                --          --        0.01       (0.09)
                        ----------  ----------  ----------  ----------
   Net income (loss)
    attributable to OCN
    common shareholders $    (0.51) $     0.23  $    (0.13) $     0.28
                        ==========  ==========  ==========  ==========

 Weighted average
  common shares
  outstanding
   Basic                82,614,456  62,715,551  70,966,393  62,655,655
   Diluted              82,614,456  69,750,889  70,966,393  62,897,271


             OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED BALANCE SHEETS
              (Dollars in thousands, except share data)


                                                Sept. 30,     Dec. 31,
                                                  2009         2008
                                               ----------   ----------
                                                           (As Adjusted)
 Assets
  Cash                                         $  195,854   $  201,025
  Trading securities, at fair value
   Investment grade auction rate                  250,099      239,301
   Subordinates and residuals                       4,417        4,369
  Loans held for resale, at lower of cost or
   fair value                                      36,618       49,918
  Advances                                        131,360      102,085
  Match funded advances                           879,444    1,100,555
  Mortgage servicing rights                       124,989      139,500
  Receivables                                      33,135       42,798
  Deferred tax assets, net                        129,116      175,145
  Intangibles, including goodwill                      --       46,227
  Premises and equipment, net                       3,954       12,926
  Investments in unconsolidated entities           18,764       25,663
  Other assets                                     67,303       97,588
                                               ----------   ----------
    Total assets                               $1,875,053   $2,237,100
                                               ==========   ==========

 Liabilities and Equity
  Liabilities
   Match funded liabilities                    $  529,779   $  961,939
   Lines of credit and other secured
    borrowings                                     54,665      116,870
   Investment line                                167,168      200,719
   Servicer liabilities                            59,457      135,751
   Debt securities                                109,814      133,367
   Income taxes payable, net                       18,940           --
   Other liabilities                               77,770       78,813
                                               ----------   ----------
    Total liabilities                           1,017,593    1,627,459
                                               ----------   ----------
  Equity
   Ocwen Financial Corporation stockholders'
    equity Common stock, $.01 par value;
    200,000,000 shares authorized; 99,835,097
    and 62,716,530 shares issued and
    outstanding at September 30, 2009 and
    December 31, 2008, respectively                   998          627
   Additional paid-in capital                     458,822      201,831
   Retained earnings                              395,809      404,901
   Accumulated other comprehensive income,
    net of income taxes                             1,569        1,876
                                               ----------   ----------
   Total Ocwen Financial Corporation
    stockholders' equity                          857,198      609,235
     Minority interest in subsidiaries                262          406
                                               ----------   ----------
   Total equity                                   857,460      609,641
                                               ----------   ----------
      Total liabilities and equity             $1,875,053   $2,237,100
                                               ==========   ==========

CONTACT:  Ocwen Financial Corporation
          David J. Gunter, Executive Vice President & Chief Financial 
           Officer
          (561) 682-8367
          David.Gunter@Ocwen.com