Ocwen Financial (OCN) in Atlanta reported record levels of revenue in the second quarter after almost doubling the size of its mortgage servicing portfolio in the last 12 months.
The company said Thursday that its second-quarter revenue doubled from the same period last year, to $211 million, while servicing revenue and subservicing fees more than doubled, to $200 million.
As a result, Ocwen earned $44.8 million in the quarter, up almost 70% from a year earlier. Earnings per share of 32 cents met analysts' estimates, according to Thomson Reuters. For the first six months of the year, Ocwen earned $64.2 million, up 32% from the same period a year earlier.
Ocwen's shares were trading at $21.63 midday Thursday, up more than 12% from Wednesday's closing price. The mortgage servicer specializes in distressed and subprime loans.
Operating expenses climbed 103%, to $85.9 million, from a year earlier as the costs across several categories surged, including compensation and benefits, amortization of mortgage servicing rights and technology and communications.
In the second quarter, Ocwen closed on three deals for the mortgage servicing rights on portfolios totaling $42.2 billion of unpaid principal balance from JPMorgan Chase (JPM) and Saxon Mortgage Services, Aurora Bank and Bank of America (BAC). The company incurred $1.8 million in transaction-related expenses.
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