Non-bank mortgage lender and manager Ocwen Financial Corporation improved its performance in 2021, despite a deterioration in its results during the last three months of the year.
The company reported a profit of $18 million in 2021 on Friday. Ocwen posted a net loss of $40 million in 2020.
For the full year, the company’s services portfolio grew 42% to $268 billion. Meanwhile, origination volume grew 93% last year to $2.8 billion. Reverse origination, boosted by the acquisition of Reverse Mortgage Solutionsincreased from $942 million in 2020 to $1.5 billion in 2021.
Last year’s performance was in line with company expectations, according to Glen Messina, President and CEO. “We remain focused on cautious growth by expanding our customer base, products, services and addressable markets,” the executive said in a statement. He added that the company will continue to be competitive thanks to its scale and low costs.
The company posted a loss of $2 million in the fourth quarter, reversing a profit of $21.5 million in the previous three months, partly due to the acquisition of the RMS platform. In the fourth quarter of 2020, the company’s losses were higher, at $7 million.
In October, Ocwen Financial Corporation announced its subsidiary PHH Mortgage Corporation completed the acquisition of RMS. The transaction had a $15 million impact on expenses in the fourth quarter, bringing total operating expenses to $174 million in the period, a 21% year-over-year increase. other.
Despite the increased spending, Messina said the deal will bring returns, and soon.
“With the completion of the acquisition of the RMS platform, we believe we are in a unique position in reverse mortgage lending and aim to grow our reserve management portfolio by at least 60% in the first half of this year. this year,” he said.
Ocwen saw $43 billion in new service additions in the fourth quarter, including $32 billion in sub-services. The company said the acquisition of the RMS platform is expected to add $13 billion in outstanding principal balance in the first half of 2022.