WEST PALM BEACH, Fla., Feb. 25, 2022 (GLOBE NEWSWIRE) — Ocwen Financial Corporation (NYSE: OCN), a leading non-bank mortgage servicer and originator, today announced its full year and fourth quarter 2021 results and provided an update on the Company’s key business priorities.
The Company reported adjusted pre-tax income of $10 million for the fourth quarter, the ninth consecutive quarter of adjusted pre-tax income. Results were consistent with the third quarter of 2021, excluding call right gains and the impact of costs relating to the RMS asset acquisition on the reverse servicing business (see “Note Regarding Non-GAAP Financial Measures” below).
Glen A. Messina, President and CEO of Ocwen, said, “We achieved full-year net income of $18 million, consistent with our financial expectations, closing out a strong year for the Company. We delivered record growth in 2021 with $152 billion in total servicing additions and achieved at least double-digit growth across all originations channels. Our total servicing UPB grew to approximately $268 billion and our performance continues to exceed industry benchmarks in several key operating areas, demonstrating the strength and quality of our servicing platform. With the completion of the RMS platform acquisition, we believe we are uniquely positioned in reverse mortgage and are targeting at least 60% growth in our reverse servicing portfolio in the first half of this year.”
“We believe the many actions taken in 2021 have further strengthened and balanced our business model. We remain focused on prudent growth by expanding our client base, products, services and addressable markets; delivering a superior value proposition through best-in-class operating performance; providing a service experience that consistently delivers on our commitments; and enhancing our competitiveness through scale and low cost. We believe these strategic priorities position us well for the current market environment,” said Messina.
Full Year and Fourth Quarter 2021 Operating and Business Highlights
- Correspondent channel volume up 172% (full YoY)
- Consumer direct volume up 93% (full YoY)
- Reverse originations volume up 62% (full YoY)
- Increased total servicing portfolio to $268 billion, up 42% (YoY); prime servicing comprised 68% of total servicing UPB
- Recognized as the top performer among top tier servicing group through Freddie Mac’s Servicer Honors and Rewards Program (SHARP)™
- Achieved Fannie Mae’s Servicer Total Achievement and Rewards (STAR)™ performer recognition in all three STAR performer categories
- RMS reverse servicing platform acquisition completed in October
- Subservicing sales pipeline grew to $300 billion as of December 31, 2021
- Funded, with other member, $131 million, net of distributions, of $250 million total capital contribution commitment in MSR Asset Vehicle, LLC (“MAV”)
- Continued to exceed industry benchmarks for certain call center performance metrics, as reported by the Mortgage Bankers Association (“MBA”)
- Ending liquidity of $193 million at December 31, 2021
- Book value per share of $52 at December 31, 2021
About Ocwen Financial Corporation
Ocwen Financial Corporation (NYSE: OCN) is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices in the United States and the U.S. Virgin Islands and operations in India and the Philippines and have been serving our customers since 1988. For additional information, please visit our website (www.ocwen.com).
