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Just days after announcing that it is selling part of its mortgage-servicing business, Ocwen Financial (OCN) agreed to buy the mortgage-lending unit of New York investment bank Gleacher
February 15 -
Ocwen Financial (OCN) is selling off parts of a company it recently purchased and another it expects to buy soon.
February 12
A big gain in servicing fees propelled Ocwen Financial (OCN) in the fourth quarter.
Earnings at the Atlanta mortgage servicer rose to $65.1 million, compared with $9.7 million a year earlier.
Servicing revenue at Ocwen rose 53%, to a record $225.9 million, year over year. Its operating expenses increased 9.5% from a year earlier, to $99 million.
Ocwen has added to its servicing portfolio over the past two months. In December, the company bought Homeward, another mortgage servicer, for roughly $766 million. Ocwen also recently completed a $2.1 billion purchase of servicing rights from Residential Capital, a former unit of Ally Financial.
"With the closing of Homeward and ResCap, Ocwen's servicing portfolio will have increased by 270% to almost $470 billion, excluding master servicing," Ron Faris, Ocwen's chief executive, said in a news release. "The 50%-plus growth rate in revenue and earnings we have produced over the past two years should accelerate in the coming years as a result of these transactions."
