Ocwen Financial Corp (OCN) Reports Q3 2023 Earnings, Net Income of $8 Million
Ocwen Financial Corp (NYSE:OCN) reports Q3 2023 net income of $8 million, with earnings per share of $1.10.
Total servicing UPB of $296 billion and total subservicing UPB of $167 billion, up 2% and 6% respectively compared to Q2 2023.
Adjusted pre-tax income of $10 million, driven by servicing segment.
Repurchased $14 million in PHH senior secured notes below par.
On November 7, 2023, Ocwen Financial Corp (NYSE:OCN) released its third quarter 2023 earnings report. The company reported a GAAP net income of $8 million and an adjusted pre-tax income of $10 million. The company's total servicing unpaid principal balance (UPB) stood at $296 billion, while the total subservicing UPB was $167 billion, marking a 2% and 6% increase respectively compared to Q2 2023.
Company Performance and Highlights
Glen A. Messina, Chair, President, and CEO of Ocwen Financial Corp (NYSE:OCN), expressed satisfaction with the company's performance this quarter. He stated,
The strength of our balanced business has enabled us to operate profitably in the current industry environment and perform in line with our return on equity guidance."
He further added that the company's diversified servicing platform continues to drive strong earnings results.
Ocwen Financial Corp (NYSE:OCN) added $15 billion from subservicing additions and Mortgage Servicing Rights (MSR) capital partner sales in Q3 2023, an increase of nearly $5 billion from Q2 2023. The portfolio with MSR capital partners stood at $89 billion, up 12% compared to Q2 2023. The company also maintained a mix of higher-margin products while increasing the volume of these products to $3 billion of owned MSR originations compared to $2 billion in Q2 2023.
Financial Tables Summary
The company's book value per share was $58 as of September 30, 2023, up 3% compared to June 30, 2023. Ocwen Financial Corp (NYSE:OCN) also managed to control enterprise costs with an annualized cost reduction of $137 million compared to Q2 2023. The company repurchased $14 million in PHH senior secured notes below par.
Looking Ahead
Ocwen Financial Corp (NYSE:OCN) continues to focus on sustaining financial performance, increasing return on equity, and capitalizing on market-cycle opportunities to deliver shareholder value. The company has also renewed its subservicing relationship with Rithm and extended the investment period for its MSR Asset Vehicle with Oaktree.
Explore the complete 8-K earnings release (here) from Ocwen Financial Corp for further details.
This article first appeared on GuruFocus.
