Ocwen Returns To Profitability

Ocwen Financial Corp. reported net income in the second quarter of 2003 of $4.1 million, or $0.06 per share, compared to a net loss of $40 million, or $0.75 cents per share, in the second quarter of last year.

Ocwen's chairman and CEO, William Erbey, said the company's return to profitability "is a significant milestone in our strategy of transitioning Ocwen to a fee-based business and reducing non-core assets."

Ocwen's residential loan servicing business reported pretax earnings of $8.4 million, net of an impairment charge of $400,000 in the second quarter. That compares to $8.1 million in the second quarter of last year.

During the first six months of this year, Ocwen's servicing business reported pretax income of $17.6 million, up 13% from the same period last year.

As of June 30, Ocwen serviced 340,000 loans with an aggregate unpaid principal balance of $33.7 billion, a dollar volume increase of 10% from the end of last year.

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