News Column


August 18, 2014

The following Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as other portions of this Form 10-Q, may contain certain statements that constitute forward-looking statements within the meaning of the federal securities laws. You can identify forward-looking statements by terminology such as "may," "will," "should," "could", "intend," "consider," "expect," "plan," "anticipate," "believe," "estimate," "predict" or "continue" or the negative of such terms or other comparable terminology. Such statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from expected results. You should not place any undue reliance on any forward-looking statement and should consider all uncertainties and risks discussed in this report, including those under "Forward-Looking Statements" and Item 1A, Risk Factors, as well as those provided in any subsequent SEC filings. Management's Discussion and Analysis of Financial Condition and Results of Operations has been revised to give effect to the restatement of our unaudited Consolidated Financial Statements for the three months ended March 31, 2014 and 2013 to correct an accounting error in connection with the application of the interest method to certain financing liabilities. For additional information, see Note 1A - Restatement and Revision of Previously Issued Consolidated Financial Statements to our unaudited Consolidated Financial Statements and "Explanatory Note" preceding Part I.


Ocwen Financial Corporation is a financial services holding company which, through its subsidiaries, is one of the largest mortgage companies in the United States. We are the fourth largest mortgage servicer in the United States and are a leader in the servicing industry in helping keep borrowers in their homes through foreclosure prevention. Ocwen has completed more than 480,000 loan modifications since January 2008 (through March 31, 2014) and is an industry leader in completing sustainable loan modifications as evidenced by the number of completed modifications that remain less than 90 days delinquent. Through our Homeward and Liberty lending operations, we purchased or originated 6,235 and 1,673 forward and reverse mortgage loans with a UPB of $1.1 billion and $163.2 million, respectively, during the first quarter of 2014. We added 28,972 mortgage loans with a UPB of $4.5 billion onto our servicing platforms (boarded) during the first quarter 2014. Our success in completing sustainable loan modifications, among other servicing practices, has enabled us to consistently reduce deliquencies in our servicing portfolio, improving outcomes for investors and borrowers. In addition to financial incentives we receive in connection with certain modifications, we collect delinquent service fees and accelerate the recovery of servicing advances, lowering our financing costs and improving our liquidity. Our forward origination platform provides an effective means of replacing run-off in our serviced portfolio as well as improving our portfolio retention. We have been successful in executing transactions that align with our 'capital light' strategy through the sale of servicing with retention of subservicing and financing transactions that mitigate our prepayment risk. We expect to continue to execute innovative transactions which mitigate market risk and enhance our capital and liquidity position.



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Source: Edgar Glimpses

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