It’s the fourth year in a row the company has posted a loss of more than $100m
For the fourth year in a row, Ocwen Financial has posted a loss of more than $100 million.
Ocwen reported a net loss of $128.5 million, or $1.01 per share. That’s still a $70.9 million improvement over 2016, when the company reported a full-year net loss of $199.4 million.
For the three months ending Dec. 31, the company reported a net loss of $45.3 million, or $0.34 per share. Ocwen generated revenue of $1.2 billion and cash flows from operating activities of $412 million for the full year of 2017, ending the year with $260 million in cash.
“2017 was another challenging year for Ocwen and our industry,” said Ron Faris, president and CEO of Ocwen. “However, we continued to make progress on a number of fronts, reducing our year-over-year loss by $70.9 million and helping over 45,000 struggling families retain their home through affordable loan modifications.”
The news of Ocwen’s 2017 loss came just a day after the company announced that it would be acquiring PHH – another money-losing mortgage company – for about $360 million in cash.
Ocwen’s tough 2017 was exacerbated by a string of enforcement actions taken against the company by dozens of states.
The company’s troubles began in April, when about 20 states simultaneously filed regulatory orders against it, citing servicing abuses. The orders effectively crippled Ocwen’s ability to do business in those states. In the same month, the company was sued by the Consumer Financial Protection Bureau, which alleged that it had “botched basic functions” in servicing loans.
In the succeeding weeks, more jurisdictions slapped regulatory orders on the company, eventually bringing the total up to 30 states and the District of Columbia.
Since then, however, Ocwen has settled all but a few of the complaints.
Related stories:
Ocwen to acquire PHH for $360 million
Ocwen settles servicing complaints with two more states
