Ocwen Financial Corp., which has been gobbling up billions of dollars of mortgage servicing rights the past two years, earned $19.3 million in the first quarter, a 13% decline from the year ago period.
The publicly traded nonbank blamed the weaker performance on $16 million worth of “transaction-related” expenses, hedging losses, and the cancellation of a term loan.
Over the past several months Ocwen has bought MSRs from JPMorgan Chase, Litton Loan Servicing and Saxon Mortgage. It is actively looking at other deals as well, sources told National Mortgage News.
A specialty servicer/subservicer that handles nonprime and highly delinquent loans, Ocwen has a hand in processing more than $100 billion of product.
It has been actively modifying loans and reported that it reduced its delinquencies in 1Q to 25.6% from 27.9% at the end of 2011.
Ocwen is headquartered in Atlanta, and employs more than 1,500 workers overseas in India and Uruguay. Its affiliated companies include Home Loan Servicing Solutions and Altisource Portfolio Solutions. Altisource controls LendersOne, a consortium of mortgage lenders.
