Ocwen reports Q2 EPS $1.95 with items, consensus 45c

Reports Q2 Book value per share of $57. Q2 net income of $15M includes $33M of unfavorable MSR fair value change due to rates and assumptions, net of hedging, partially offset by $28M in favorable adjustments to significant legal and regulatory settlement expenses. The Company also reported an adjusted pre-tax income of $23M. Glen A. Messina, Chair, President and CEO of Ocwen, said, “We delivered strong performance for the Q2 with material improvement in net income and adjusted pre-tax income quarter over quarter. Our results reflect the strength of our balanced business, expense discipline and prudent MSR management. Our accretive acquisition of reverse assets reflects our agility and broad expertise in the servicing sector. Our servicing segment continues to be the key driver of earnings, and we remain focused on growing capital-light subservicing and expanding higher-margin originations products. Additionally, I am pleased to report the CFPB did not appeal the district court’s May 2023 ruling in our favor, and as a result, that ruling is now final and we consider this long-running matter to be over. We look toward normalizing our relationship with the CFPB moving forward.”