WEST PALM BEACH, Fla., July 16, 2020 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE: OCN), a leading non-bank mortgage servicer and originator, today provided preliminary information regarding its second quarter 2020 results and progress on the Company’s key business priorities. A presentation with additional detail regarding today’s announcement is available on the Ocwen Financial Corporation website at www.ocwen.com (through a link on the Shareholder Relations page).

The Company reported a net income of $2.0 million and a pre-tax loss of $6.2 million for the three months ended June 30, 2020, compared to a net loss of $89.7 million and a pre-tax loss of $84.3 million for the three months ended June 30, 2019. Adjusted pre-tax income was $18 million for the quarter compared to a $27 million adjusted pre-tax loss in the prior year period (see “Note Regarding Non-GAAP Financial Measures” below).

Glen A. Messina, President and CEO of Ocwen, said, “Our turnaround and profitability trajectory have strong momentum and we are delivering on what we committed to do. We have established a profitable, multi-channel originations platform that is delivering remarkable growth, we have a competitive cost structure and our proven special servicing skills position us well to capitalize on current and emerging industry growth opportunities. Over the past 24 months we have improved our annualized pre-tax loss by $228 million and annualized adjusted pre-tax earnings run rate excluding amortization of NRZ lump-sum payments by more than $350 million.”

Mr. Messina continued, “Ocwen is one of the few remaining large-scale special servicers, and we believe we are one of the best servicers for non-performing loans, with decades of experience. We believe we are well positioned to assist homeowners and investors in the current environment and deliver growth, profitability and value for shareholders. I am incredibly proud of today’s Ocwen and our global team for their steadfast focus on our mission of creating positive outcomes for homeowners, communities and investors. We continue to explore all strategic options to leverage our proven operating capability in this environment to fully realize the value of our platform.”

The Company reported the following preliminary results for the second quarter 2020 (see “Note Regarding Non-GAAP Financial Measures” and “Note Regarding Financial Performance Estimates” below):

• Pre-tax loss was $6.2 million compared to pre-tax loss of $84.3 million for the second quarter 2019. Adjusted pre-tax income was $17.8 million, included $10.0 million of amortization of NRZ lump-sum payments; third consecutive quarter of positive adjusted pre-tax income. COVID-19 impact was immaterial during the quarter.

• Annualized pre-tax loss improved by $228 million compared to the combined annualized pre-tax loss of Ocwen and PHH Corporation for the second quarter 2018; annualized adjusted pre-tax earnings run rate excluding amortization of NRZ lump-sum payments improved by more than $350 million compared to the combined adjusted annualized earnings run rate of Ocwen and PHH Corporation for the second quarter 2018.

• Approximately $4.0 billion of servicing UPB originated through forward and reverse lending channels, up 75% from prior quarter; average daily lock volume of approximately $100 million in July to date.

• Approximately $314 million of unrestricted cash at June 30, 2020, up from $264 million at March 31, 2020; previously identified balance sheet optimization actions on track.

• Approximately 112,000 forbearance plans outstanding as of July 13, 2020, down from a peak of approximately 132,000 forbearance plans outstanding at the end of the second quarter. Servicer advance levels are approximately 17% below base case servicer advance levels as of June 30, 2020.

• Following receipt of shareholder advisory approval in May 2020, Ocwen’s Board of Directors has determined to move forward with a reverse stock split in a ratio of 1:25. The Company currently expects to make the reverse split effective in early August.

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).