Market views Ocwen earnings as bellwether for servicing
What's going on in servicing? Quite a bit, analysts with Sterne Agee claim in a new report. But to gauge the real trajectory of the market, analysts eagerly await upcoming earnings from the nation's top servicers. Sterne Agee had this to say about Ocwen's (OCN) third-quarter earnings, which is slated for a Thursday release.
We are looking for Ocwen to report 3Q13 EPS of $1.14 vs consensus of $1.09. The one soft spot in our estimate is mortgage origination; we have been estimating that refinance/recapture activity will generate an estimated $1.1 billion in direct origination volume. This activity accounts for approximately $0.12 of our estimate.