Ocwen Financial Delivers Strong Originations Results in July and August
Continued momentum in operating and financial performance
“Our team continues to generate strong progress on our growth and profitability initiatives. We increased quarter-to-date originations volume in August by 62% over the same period last quarter and by 16X over the same period last year. This is a testament to the dedication of our team, the benefits of our multi-channel approach and the breadth of our product offering,” said
The Company’s originations platform comprised of both forward and reverse mortgages achieved an annualized run-rate volume of
The Company grew its correspondent seller base by 23% from
To support the Company’s growth strategy, Ocwen has increased its originations headcount by approximately 40% since
“In addition to the great progress we are making in growing originations, we are executing well on our key business priorities, and our results through the third quarter to date demonstrate continued positive momentum in our operating and financial performance,” said Messina. “Our profitability trajectory continues to improve, and we continue to drive productivity and operational effectiveness to maintain a low-cost, well-controlled infrastructure to maximize profitability. We also have sufficient liquidity and access to capital to support our growth and fulfill our role as a large-scale mortgage servicer. Our Servicing team is doing a tremendous job supporting our customers, especially those who have been impacted by the pandemic, and our employees globally are performing at high level while working remotely. I am very pleased with how well our teams are responding to the current environment and delivering on our mission of creating positive outcomes for homeowners, communities and investors.”
Additional business highlights include:
- Both GAAP income and adjusted pre-tax income were positive in July and August and continue to trend favorably compared to second quarter 2020.
- Previously identified balance sheet optimization actions and total company liquidity position remain on track.
$51.4 millionof the estimated $65 millionfederal net tax refunds in August, resulting from modifications to the tax rules as part of the CARES Act. The Company expects to receive the remaining balance in 2020, once its 2019 tax returns are filed and pending IRSprocessing.
- Favorable trends in servicing advance levels compared to base case levels with August balance of
$855 million, an improvement from the $901 millionreported at the end of the second quarter 2020.
- Favorable trends in percentage of loans on forbearance in owned MSR portfolio with August percentage of loans on forbearance of 7.9%, down 100 basis points from
- Completed 24 virtual borrower outreach events nationally in partnership with the
NAACPto help customers who have been negatively impacted by COVID-19.
$470 millionof 2019 Ocwen Master Advance Receivables Trust(“OMART”) term notes with new $475 million, two-year term notes at improved terms and rates.
- CreditWatch with negative implications removed by S&P, citing better-than-expected financial performance through the second quarter 2020.
- Notified by the
New York Stock Exchange(“NYSE”) on September 1, 2020that the Company has regained compliance with the NYSE’s continued listing standard rules.
The Company expects to provide its next business update and release preliminary third quarter 2020 results in October.
This press 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. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. We are in the midst of a period of capital markets volatility and experiencing significant changes within the mortgage lending and servicing ecosystem which have magnified such uncertainties. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, uncertainty relating to the future impacts of the COVID-19 pandemic, including with respect to the response of the
Note Regarding Non-GAAP Financial Measures
This press release contains references to non-GAAP financial measures such as adjusted pre-tax income (loss), which adjusts GAAP pre-tax income (loss) for certain income statement items we categorize as “Income Statement Notables” and “Expense Notables.” For additional information relating to the Company’s calculation of adjusted pre-tax income and other information about the Company’s use of non-GAAP financial measures, please refer to the Company’s press release issued on
Note Regarding Financial Performance Estimates
This press release contains statements relating to our preliminary third quarter financial performance to date. These statements are based on currently available information and reflect our current estimates and assessments, including about matters that are beyond our control. We are operating in a fluid and evolving environment and actual outcomes may differ materially from our current estimates and assessments. The Company has not finished its September or third quarter financial closing procedures. There can be no assurance that actual results will not differ from our current estimates and assessments, including as a result of third quarter financial closing procedures, and any such differences could be material.
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Source: Ocwen Financial Corp.
Source: PHH Mortgage