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Ocwen Financial's earnings rise on lower loan defaults
August 2, 2012 / 12:05 PM / 5 years ago

Ocwen Financial's earnings rise on lower loan defaults

* Net income $44.8 mln vs $26.4 mln year ago

* EPS 32 cents vs 25 cents a year earlier

* Revenue doubles to $211.3 mln

Aug 2 (Reuters) - Ocwen Financial Corp’s second-quarter net income rose 70 percent as the loan servicer gained from servicing and subservicing fees and fewer people defaulted on loans.

For the quarter ended June 30, the mortgage and commercial loan servicer’s net income rose to $44.8 million, or 32 cents per share, from $26.4 million, or 25 cents per share, a year earlier.

Revenue doubled to $211.3 million.

Earnings per share was in line with the analysts’ estimates of 32 cents on revenue of $187.7 million, according to Thomson Reuters I/B/E/S.

Mortgage servicers like Ocwen collect mortgage payments from borrowers and foreclose on properties. They also make advances to mortgage owners when a loan goes bad to cover things like principal and interest payments.

The company also incurred a one time operating expense of $1.8 million in the quarter related to acquisition of mortgage servicing rights.

The Atlanta-based company’s shares closed at $19.29 on Wednesday on the New York Stock Exchange.

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