As the largest subprime servicer Ocwen Financial Corp. ($44.91 -0.21%) grows, its primary asset manager Altisource ($100.72 0.57%) gains.
Altisource reported a net income of $25.2 million, or $1.02 a share, in the first quarter, up more than 70% from the $14.8 million in profits reported last year.
In 2009, Altisource spun off of Ocwen to become a publicly traded REO and title insurance company. Business ties remain, however, and as Ocwen continues to buy mortgage servicing rights. New revenue trickles down to Altisource for handling properties Ocwen foreclosed on.
Revenue at Altisource totaled $108.5 million, up 51%.
"The year-over-year growth in net income and service revenue is primarily from the increase in Ocwen's residential loan servicing portfolio," Altisource said in its release Thursday.
Altisource sold more than 6,000 REO properties through its Web-based portal during the quarter, but gave no comparative figures for the previous period.
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