Altisource 2Q earnings fall 18%, revenue up 45% on gains in mortgage services
Altisource Portfolio Solutions (ASPS) said second-quarter income fell about 18% although revenue rose 45% from a year earlier. The company, which provides services and technology for real estate and mortgage portfolios, earned $13.4 million, or 52 cents a share, down from $16.3 million, or 62 cents a share, a year earlier. Revenue for the quarter increased to about $93.3 million from $71.3 million the prior year. Revenue for the mortgage services unit increased 53.5% to $64.5 million from $42.7 million a year ago. Altisource continues to reap benefits from growth of the Ocwen Financial servicing portfolio. Luxembourg-based Altisource was spun off from Ocwen in August 2009 and Ocwen remains Altisource's largest customer. Ocwen substantially expanded its residential loan portfolio in 2010 by acquiring HomEq Servicing from Barclays Bank. For the six months ended June 30, Altisource's service revenue rose 30% from a year earlier on higher sales of real estate owned properties due to seasonality and expansion of the title insurance business, according to the company. Altisource now expects modest growth in service revenue for the third quarter on seasonally strong REO sales and continued growth of the title insurance operations. Then the company expects "substantially greater growth" in service revenue during the fourth quarter assuming Ocwen closes its acquisition of the Litton Loan platform and more title insurance services. Write to Jason Philyaw.