Ocwen: Wells Fargo MSR deal on indefinite hold
Company promotes chief financial officer
Ocwen Financial Services’ (OCN) $2.7 billion mortgage-servicing rights transaction with Wells Fargo (WFC) remains on an indefinite hold, Ronald Faris, president and CEO of Ocwen, said during the first-quarter earnings conference call.
Wells Fargo’s portfolio of residential mortgage servicing rights holds roughly 184,000 loans linked to the transaction. The portfolio represents approximately 2% of the banks total residential servicing portfolio.
However, Faris noted that the company continues to invest in its compliance and risk management systems.
Meanwhile, the company announced during the conference call that John Britti, current executive vice president and chief financial officer, will be promoted to chief investment officer.
Thursday morning Ocwen Financial Services reported net income of $75.8 million, or $0.54 per share, for the first quarter of 2014 compared to net income of $45.1 million, or $0.31 per share, for the first quarter of 2013.
The nonbank generated revenue of $551.3 million, up 36% from the first quarter of 2013. Income from operations grew by 24% to $202.1 million for the first quarter of 2014 as compared to $163.6 million for the first quarter of 2013.
However, Ocwen significantly fell short on earnings estimates, missing earning per share by 46 cents and revenue by $17.58 million.