Ocwen Financial Corp. reported a preliminary $598.4 million loss
in its fourth quarter on a heavy write-down, though the embattled
mortgage-servicing company said it expects to return to
profitability in 2015.
Ocwen has delayed filing its annual report, and as a result has
been threatened with a possible delisting by the New York Stock
Exchange.
Ocwen said Tuesday's results are preliminary and could change.
It said it doesn't have an estimate for when its 2014 financial
statements will be finalized.
Still, the company said Tuesday that it is making progress,
generating cash through asset sales and improving its risk and
compliance systems. The company said it expects to meet all of its
financial and servicing obligations this year.
"We are optimistic that the investments we have made and are
making in these areas reduce significantly the substantial risks
associated with noncompliance with laws and regulations, and
improves our service to homeowners which will ultimately result in
better overall returns to our shareholders," said Ocwen Chief
Executive Ron Faris in a news release.
Ocwen's shares gained 4.9% in premarket trading.
The results come as the embattled mortgage-servicing company
faces a series of challenges. The company agreed in December to pay
$150 million, and William Erbey, its executive chairman, agreed to
step down after New York state's Department of Financial Services
alleged Ocwen had engaged in improper servicing practices for
distressed-mortgage borrowers and had questionable dealings with
affiliated companies.
Since then, Ocwen has said it would sell off its servicing
rights for mortgages owned by the government-supported entities
Fannie Mae and Freddie Mac, and focus on so-called nonagency
mortgages.
For the quarter ended Dec. 31, Ocwen reported a loss of $598.4
million, or $4.77 a share, compared with a profit of $134.3
million, or 95 cents a share, a year earlier.
The quarter's result included a write-down of $420.2 million and
$113.9 million in professional-service charges.
Total revenue fell 11.3% to $$493.3 million.
Analysts had projected a 35-cent profit and $498.4 million in
revenue, according to Thomson Reuters.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
Access Investor Kit for Ocwen Financial Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US6757463095
Subscribe to WSJ: http://online.wsj.com?mod=djnwires