Ocwen Financial Corportation (NYSE: OCN) said it is moving forward to close a deal to acquire Liberty Home Equity Solutions and sees growth potential through the new business channel, the company said in announcing earnings last week.
Ocwen said it expects to close its acquisition of Liberty Reverse Home Equity Solutions in the next 30 days, and is also exploring adjacent lending spaces.
As discussed in the company’s earnings call with shareholders, the acquisition of Liberty provides Ocwen with a number one originator in the reverse mortgage space.
“Where reverse mortgage lending is not large now, it has substantial growth potential in the future,” said Ocwen Chairman, Bill Erbey.
Ocwen reported net income of $62.5 million, or $0.47 per share, for the fourth quarter of 2012, a up 84% from 2011. The spike in earnings poses a record quarterly gain for the company.
Annual earnings were up more than 400% as earnings per share jumped from $.08 in 2011 to $0.47 in 2012.
The company has been busy on the acquisition landscape having purchased billions of dollars in mortgage servicing rights including the acquisition of mortgage servicing rights formerly owned by Residential Capital, LLC (ResCap), as well as acquiring the residential mortgage servicing and origination divisions of Homeward Residential, Inc.
“With the closing of Homeward and ResCap, Ocwen’s servicing portfolio will have increased by 270% to almost $470 billion, excluding master servicing,” said Ron Faris President and CEO. “The fifty-percent 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.”
Written by Jason Oliva