ATLANTA (AP) -- Ocwen Financial Corp. on Thursday said its net income jumped about 70 percent in the second quarter, as the mortgage loan servicing company's revenue doubled on stronger servicing and related fees.
The company's earnings were in line with Wall Street's expectations, but its revenue handily trumped analysts' forecasts. The results lifted shares by more than 11 percent, with trading heavy throughout the session.
Ocwen reported net income of $44.8 million, or 32 cents per share, for the three months ended June 30. That compares with net income of $26.4 million, or 25 cents per share, in the prior-year quarter.
Revenue grew to $211.4 million from $105.8 million a year earlier, as servicing and related fees doubled to $200.3 million.
Analysts, on average, called for earnings of 32 cents per share, on $187.7 million in revenue, according to FactSet.
Ocwen's revenue got a lift from its acquisition of mortgage servicing rights on $42.2 billion in loans.
The company has nearly doubled the size of its servicing portfolio over the past 12 months. More loans means Ocwen has a bigger pool of loans from which to collect servicing fees.
President and CEO Ron Faris said the company is beginning to see more opportunity to expand loan servicing.
Ocwen completed 21,943 loan modifications during the quarter, with just under 21 percent of the modifications completed under the government's Home Affordable Modification Program.
All told, the unpaid principal balance of loans and bank-owned homes serviced by Ocwen stood at $127.9 billion at the end of the quarter. That's nearly twice the $70.8 billion it owned a year earlier.
Of the quarter-end total, some 24.5 percent of the unpaid loan balance was non-performing, which typically refers to loans that are considered past due and in danger of default. That's down from 25.6 percent in the first quarter, but above the 24.2 percent of the prior-year quarter.
Ocwen shares added $2.22, or 11.5 percent, to close at $21.51. During the session, the stock traded as high as $21.94, a record high.
