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OCN Ocwen Financial

Ocwen Financial Corporation is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation's largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. The Company is headquartered in West Palm Beach, Florida, with offices in the United States and the U.S. Virgin Islands and operations in India and the Philippines, and has been serving its customers since 1988.

Company profile

Ticker
OCN
Exchange
Website
CEO
Glen Messina
Employees
Incorporated
Location
Fiscal year end
SEC CIK
IRS number
650039856

OCN stock data

(
)

Calendar

4 May 21
27 Jul 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 336.43M 336.43M 336.43M 336.43M 336.43M 336.43M
Cash burn (monthly) 6.95M (positive/no burn) (positive/no burn) 558.33K 43.44M 3.36M
Cash used (since last report) 26.97M n/a n/a 2.17M 168.64M 13.04M
Cash remaining 309.46M n/a n/a 334.26M 167.79M 323.38M
Runway (months of cash) 44.6 n/a n/a 598.7 3.9 96.3

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
25 May 21 Soaries DeForest B. Jr. Common Stock Grant Aquire A No No 0 3,071 0 21,110
25 May 21 Jenne K Britell Common Stock Grant Aquire A No No 0 3,071 0 17,032
25 May 21 Jacques J Busquet Common Stock Grant Aquire A No No 0 3,071 0 21,862
25 May 21 Phyllis R Caldwell Common Stock Grant Aquire A No No 0 3,071 0 31,124
25 May 21 Bowers Alan J Common Stock Grant Aquire A No No 0 3,071 0 22,195

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

69.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 55 56 -1.8%
Opened positions 7 17 -58.8%
Closed positions 8 10 -20.0%
Increased positions 15 15
Reduced positions 20 14 +42.9%
13F shares
Current Prev Q Change
Total value 169.79M 148.94M +14.0%
Total shares 6.01M 5.12M +17.3%
Total puts 581.1K 638.53K -9.0%
Total calls 241K 349.48K -31.0%
Total put/call ratio 2.4 1.8 +32.0%
Largest owners
Shares Value Change
Deer Park Road Management 863.74K $24.97M 0.0%
Deer Park Road 863.74K $24.56M 0.0%
Oaktree 860.09K $22.88M NEW
Cooperman Leon G 742.66K $21.11M -15.5%
FIG Fortress Investment 386.95K $11M 0.0%
Vanguard 309.29K $8.79M +2.6%
Prescott Group Capital Management, L.L.C. 166.95K $4.75M +14.7%
Dimensional Fund Advisors 166.55K $4.74M +11.5%
Voss Capital 162.13K $4.61M NEW
D. E. Shaw & Co. 159.01K $4.52M -6.4%
Largest transactions
Shares Bought/sold Change
Oaktree 860.09K +860.09K NEW
Voss Capital 162.13K +162.13K NEW
Cooperman Leon G 742.66K -136.38K -15.5%
TCW 153.57K +87.2K +131.4%
Rock Creek 62.13K +62.13K NEW
MNGPF Man 0 -43.09K EXIT
Cooper Creek Partners Management 36.6K +36.6K NEW
Bridgeway Capital Management 147.23K +35.1K +31.3%
Renaissance Technologies 0 -32.01K EXIT
CQS (us) 150K -31.14K -17.2%

Financial report summary

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Risks
  • The business in which we engage is complex and heavily regulated. If we fail to operate our business in compliance with both existing and future regulations, our business, reputation, financial condition or results of operations could be materially and adversely affected.
  • Governmental bodies have taken regulatory and legal actions against us in the past and may in the future impose regulatory fines or penalties or impose additional requirements or restrictions on our activities that could increase our operating expenses, reduce our revenues or otherwise adversely affect our business, financial condition, liquidity, results of operations, ability to grow and reputation.
  • State Licensing and State Attorneys General
  • Our regulatory settlements and public allegations regarding our business practices by regulators and other third parties may affect other regulators’, rating agencies’, and creditors’ perceptions, which could adversely impact our financial results and ongoing operations.
  • If regulators allege that we do not comply with the terms of our regulatory settlements, or if we enter into future regulatory settlements, it could significantly impact our ability to maintain and grow our servicing portfolio.
  • If we are unable to respond timely and effectively to routine or other regulatory examinations and borrower complaints, our business and financial conditions may be adversely affected.
  • Private legal proceedings and related costs alleging failures to comply with applicable laws or regulatory requirements could adversely affect our financial condition and results of operations.
  • Non-compliance with laws and regulations could lead to termination of servicing agreements or defaults under our debt agreements.
  • If new laws and regulations lengthen foreclosure times or introduce new regulatory requirements regarding foreclosure procedures, our operating costs and liquidity requirements could increase and we could be subject to regulatory action.
  • If we fail to comply with the TILA-RESPA Integrated Disclosure (TRID) rules, our business and operations could be materially and adversely affected and our plans to expand our lending business could be adversely impacted.
  • Failure to comply with the Home Mortgage Disclosure Act (HMDA) and related CFPB regulations could adversely impact our business.
  • As a participant in the now ended HAMP program, we are subject to review by SIGTARP, which could adversely affect our business, reputation, and financial condition.
  • There may be material changes to the laws, regulations, rules or practices applicable to reverse mortgage programs sponsored by HUD and FHA, and securitized by Ginnie Mae, which could materially and adversely affect us and the reverse mortgage industry as a whole.
  • Violations of predatory lending and/or servicing laws could negatively affect our business.
  • Failure to comply with FHA underwriting guidelines could adversely impact our business.
  • Failure to comply with United States and foreign laws and regulations applicable to our global operations could have an adverse effect on our business, financial position, results of operations or cash flows.
  • Failure to comply with the S.A.F.E. Act could adversely impact our business.
  • We may be unable to consummate our previously announced transactions with Oaktree.
  • Our strategic plan to return to profitability may not be successful.
  • If we are unable to obtain sufficient capital to meet the financing requirements of our business, or if we fail to comply with our debt agreements, our business, financing activities, financial condition and results of operations will be adversely affected.
  • We may be unable to obtain sufficient servicer advance financing necessary to meet the financing requirements of our business, which could adversely affect our liquidity position and result in a loss of servicing rights.
  • If we fail to satisfy minimum net worth and liquidity requirements established by regulators, GSEs, Ginnie Mae, lenders, or other counterparties, our business, financing activities, financial condition or results of operations could be materially and adversely affected.
  • We use estimates in measuring or determining the fair value of the majority of our assets and liabilities. If our estimates prove to be incorrect, we may be required to write down the value of these assets or write up the value of these liabilities, which could adversely affect our earnings.
  • We are exposed to liquidity, interest rate and foreign currency exchange risks.
  • Our hedging strategy may not be successful in partially mitigating our exposure to interest rate risk.
  • GSE and Ginnie Mae initiatives and other actions may affect our financial condition and results of operations.
  • An economic slowdown or a deterioration of the housing market could increase both interest expense on servicing advances and operating expenses and could cause a reduction in income from, and the value of, our servicing portfolio.
  • A significant increase in prepayment speeds could adversely affect our financial results.
  • If we do not comply with our obligations under our servicing agreements or if others allege non-compliance, our business and results of operations may be harmed.
  • GSEs or Ginnie Mae may curtail or terminate our ability to sell, service or securitize newly originated loans to them.
  • A significant reduction in, or the total loss of, our remaining NRZ-related servicing would significantly impact our business, liquidity, financial condition and results of operations.
  • If NRZ were to fail to comply with its servicing advance obligations under its agreements with us, it could materially and adversely affect us.
  • Technology or process failures or employee misconduct could damage our business operations or reputation, harm our relationships with key stakeholders and lead to regulatory sanctions or penalties.
  • We have undergone and continue to undergo significant change to our technology infrastructure and business processes. Failure to adequately update our systems and processes could harm our ability to run our business and adversely affect our results of operations.
  • Disagreements with vendors, service providers or other contractual counterparties could materially and adversely affect our business, financing activities, financial condition or results of operations.
  • Cybersecurity breaches or system failures may interrupt or delay our ability to provide services to our customers, expose our business and our customers to harm and otherwise adversely affect our operations.
  • Damage to our reputation could adversely impact our financial results and ongoing operations.
  • The industry in which we operate is highly competitive, and, to the extent we fail to meet these competitive challenges, it would have a material adverse effect on our business, financial position, results of operations or cash flows.
  • An inability to attract and retain qualified personnel could harm our business, financial condition and results of operations.
  • We have operations in India and the Philippines that could be adversely affected by changes in the political or economic stability of these countries or by government policies in India, the Philippines or the U.S.
  • Our operations are vulnerable to disruptions resulting from severe weather events.
  • Pursuit of business or asset acquisitions exposes us to financial, execution and operational risks that could adversely affect us.
  • Loan put-backs and related liabilities for breaches of representations and warranties regarding sold loans could adversely affect our business.
  • We originate and securitize reverse mortgages, which subjects us to risks that could have a material adverse effect on our business, reputation, liquidity, financial condition and results of operations.
  • If we are unable to fund our tail commitments or securitize our HECM loans (including tails), this could have a material adverse effect on our business, financial condition, liquidity and results of operations.
  • Our HMBS repurchase obligations may reduce our liquidity, and if we are unable to comply with such obligations, it could materially adversely affect our business, financial condition, and results of operations.
  • Liabilities relating to our past sales of Agency MSRs could adversely affect our business.
  • Reinsuring risk through our captive reinsurance entity could adversely impact our results of operation and financial condition.
  • A significant portion of our business is in the states of California, Florida, Texas, New York and Illinois, and our business may be significantly harmed by a slowdown in the economy or the occurrence of a natural disaster in those states.
  • We may incur litigation costs and related losses if the validity of a foreclosure action is challenged by a borrower or if a court overturns a foreclosure.
  • A failure to maintain minimum servicer ratings could have an adverse effect on our business, financing activities, financial condition or results of operations.
  • Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect interest rates, our business, and financial markets as a whole.
  • Failure to retain the tax benefits provided by the USVI would adversely affect our financial condition and results of operations.
  • We may be subject to increased United States federal income taxation.
  • Any “ownership change” as defined in Section 382 of the Internal Revenue Code could substantially limit our ability to utilize our net operating losses carryforwards and other deferred tax assets.
  • Our common stock price experiences substantial volatility and has dropped significantly on a number of occasions in recent periods, which may affect your ability to sell our common stock at an advantageous price.
  • We have several large shareholders, and such shareholders may vote their shares to influence matters requiring shareholder approval.
  • Our board of directors may authorize the issuance of additional securities that may cause dilution and may depress the price of our securities.
  • Future offerings of debt securities, which would be senior to our common stock in liquidation, or equity securities, which would dilute our existing stockholders’ interests and may be senior to our common stock in liquidation or for the purposes of distributions, may harm the market price of our securities.
  • Because of certain provisions in our organizational documents and regulatory restrictions, takeovers may be more difficult, possibly preventing you from obtaining an optimal share price. In addition, significant investments in our common stock may be restricted, which could impact demand for, and the trading price of, our common stock.
Content analysis
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Constraining
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