Ocwen Financial Corporation (NYSE:OCN) reported a 71% increase in net income of $76.7 million in the second quarter ended June 30, 2013 along with a record revenue of $530 million.
Net income rose to $0.53 per share, up from last year’s $44.8 million, or $0.32 per share.
Revenue shot up 151% to a record $530 million, compared to $211.4 million in 2012’s second quarter, boosted in part by the April 2013 acquisition of Liberty Home Equity Solutions, Inc.
“We are pleased with Ocwen’s strong core earnings and cash flow which should continue to grow with the boarding of our new acquisitions,” commented Bill Erbey, Ocwen’s Chairman. “Ocwen’s recently announced acquisition of OneWest Bank’s $78 billion servicing portfolio combined with other large bank transfers points toward continued growth as banks strategically reposition their mortgage servicing operations.”
During the second quarter, Ocwen also completed the acquisition of Liberty from Genworth Financial, Inc. (NYSE:GNW) for approximately $22 million in cash.
Liberty is the reverse mortgage industry’s number one originator based on June 2013 data and generated $18.5 million of revenue and $4.3 million of pre-tax earnings in the quarter.
The majority of Ocwen’s earnings come from its non-prime portfolio, Erbey also noted, adding that it produces higher earnings as employment and home price improvement result in lower delinquencies.
Written by Alyssa Gerace