Home Loan Servicing Solutions (HLSS) recorded a profit in the first quarter after completing its initial public offering of roughly 13.3 million shares, pulling in proceeds of $180.5 million.
The firm, which was founded last year to acquire the mortgage-servicing assets of Ocwen Financial Corp. (OCN), posted a profit of $1.3 million, or 31 cents a share, for the first quarter. That is up from a net loss of $27,000 in the first quarter of 2011 when the firm was just setting up shop.
Since then, HLSS finalized a deal to buy the right to receive servicing fees and associated servicing advances for $15.2 billion of unpaid principal balance related to subprime and Alt-A loans from Ocwen.
"Results for HLSS' first partial quarter of operations were strong and fully in line with our expectations," said Ocwen president John Van Vlack. "By reinvesting its strong cash flow from operations to fund the first "flow" transaction with Ocwen on May 1, 2012, HLSS was able to replenish and grow its servicing portfolio."