Buoyed by gains from mortgage servicing revenue, Ocwen Financial Corp., Atlanta, reported net income of $26.4 million in the second quarter, up 65% from the $16 million it earned in the same quarter last year.
The company said in its earnings announcement Thursday that its revenue rose 39% year over year, to nearly $106 million, due largely to a 28% jump in the size of its mortgage-servicing portfolio, to $70.8 billion.
Revenues are likely to surge even higher in future quarters after the company completes its acquisition of Litton Loan Servicing Inc. from Goldman Sachs Group.
That deal, announced in June and expected to close Sept. 1, would boost its portfolio of MSRs to about $100 billion, making it the largest nonprime servicer in the U.S., according to figures compiled by National Mortgage News and the Quarterly Data Report.
In a statement, Ocwen president and CEO Ron Faris said Ocwen's "robust" cash flow would allow it to complete the Litton deal without issuing new equity.
In trading Thursday, Ocwen's shares closed down slightly — on a day when the Dow Jones Industrial Average lost 513 points or 4.3% of its value.
