HW 30 stocks of nonbank mortgage servicers are down following the news that Ocwen Financial Corp. missed earnings expectations in the first quarter by $0.46.
- Ocwen Financial Corporation (OCN) is down 6.33% to 35.40
- Nationstar Mortgage Holdings (NSM) is down 3.76% to 31.52
- Walter Investment Management Corp (WAC) is down 3.72% to 25.63
Ocwen cited the added costs of regulator scrutiny as a factor in its $5.1 million loss on the $7.6 billion portion of the mortgage servicing rights portfolio, compared to a fourth quarter 2013 gain of $19.1 million. There was also an MSR impairment reversal of $2.4 million for the fourth quarter. Combined, these changes produced a $26.6 million change quarter over quarter.
Ocwen Chairman Bill Erbey noted that "increased compliance and operational risk management does not come without a cost, as you can see from our first quarter normalized earnings."
Both Nationstar and Walter will report first-quarter earnings on May 8.