OCN - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Ocwen Financial Second Quarter 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this call may be recorded. I would now like to turn the conference over to Mr. ICR. from Swett Steve begin. may you Sir,

Steve Swett

been Good morning, second our us Ocwen’s review. presentation for quarter our available website for thank XXXX earnings you your have slide quarter and that earnings joining and call. are XXXX on for release and released Please second note

Speaking Dondzila. Officer Britti; on have Chief and Executive call, Chief we Accounting the Ocwen’s John Officer, Cathy

laws. made provisions and or reminder, comments terminology. today a securities statements the of forward-looking harbor safe presentation to our forward-looking be pursuant a by may the As contain to reference forward-looking statements identified These federal may use by of period future

statements Forward-looking nature are that to matters different by uncertain. their degrees, address

which magnified substantial Our business undergoing has such has been change, uncertainty.

statements not such should reliance on undue and should factors bear considering You these statements. place in mind such in

number may again. a the materially. differ assumptions, those suggested statements of results uncertainties by have from risks In actual cause that differed happen involve forward-looking statements this Forward-looking could to past, results actual and and

as whether Our statements and otherwise. update forward-looking forward-looking any events statements speak information, of or revise future obligation of the disclaim new any we or they a to result made, as are date only

measures liquidity to In others. income expense, operating our of our addition, and contain financial useful among these cash condition. flow adjusted to provide comments adjusted financial adjusted financial supplement liquidity normalized the such adjusted measures We before available as expense, references and income, presentation pre-tax discussions debt adjusted and non-GAAP pre-tax corporate operations, non-GAAP analysis from believe

viewed reported generally under business financial the way of provide an and financial these view to the States. certain measures in that accepted results non-GAAP Company’s not to instructive. our United for believe as is also principles alternate addition alternative Non-GAAP accounting in measures should be We aspects an

as and and Ocwen’s these the XXXX factors second Form please XX-K Forms XX-Q, Company’s as today’s presentation our in available of refer first on earnings XXXX elaboration with SEC, discussed, just including website. to which well are I release the an For filings quarter our

the John. call turn Now, over I to will

John Britti

Thanks, Steve. you and joining for today. morning thank Good us

comments First, about few a executive team. our

his thank him As colleague of We stewardship you know, as and him years. Ocwen Faris, President best. CEO for over after tenure XX wish Ron and the our concluded

said, As the will we Ocwen. and have an also PHH President Until close Messina that of CEO upon as Ocwen’s serve interim time, of will assume previously the I Glen transaction. role CEO basis the on of

already CFO. our strategies last name transformation the week, Financial Accounting we our announced as purposes focus has continue Officer serves until stronger a Officer, As The performance new financial release, Ocwen. of our drive Cathy Chief search Principal CFO have previously process on SEC and outlined reporting to Dondzila, remained last for the is earnings we our Since that underway.

to potential acquisition our of not Nevertheless, of may position performance many sufficient transformation day focus our closing and are matters; be move we for of very current providing things of While service, resolving will improve well process there areas to to These to in excess that excellent and four in regulatory the we the operation of realized particularly closing homeowners and near-term. us focus are helping our Company cash; day managing of these the forward. transaction that synergies we such as profitability. our steps and are been themselves enable key continue do areas, and efficiency necessary PHH four and to in have capturing complete areas legacy, PHH. business customer to success the We in investing these on us a to legal preparing growth of resume the and

helping over Modifications investors. performing all mortgage homeowners to important modification. first a an XX,XXX get take loan is better homeowners motto and fresh we we home outcomes is start sustainable in what to tradition remain loans quarter, the into loan we their while motto help that the is second a families helped Ocwen also providing the our In do. That of part area, to Regarding heart.

its loan segment over quarter servicing achieved families Our of provided have remain XXXX, we home leader earnings. and this all to owners. in industry Since while pretax modifications eighth providing having consecutive we to positive XXX,XXX an sustainable modifications

our helping reverse In access addition lending specializes to refinances, business our terms senior their forward activity, access loan equity homes. homeowners homeowners, in lending in to modification helps better while

we their we’re over of the detail helped to our more our this servicing X,XXX convert over reverse second to that disclosures a settlements ability seniors our as better XX-K progress a continuing in equity negotiation, During remain front. These to cash. quarter result Meanwhile, legal refer matters. issues uncertainty With these of lending helped regulatory they believe and home to for legacy and grow legacy have progress court quarter, on regard and and families on as X,XXX into business matters, loan. ruling, our ongoing customers I focus for our into refinance a investors. you both hampered our make we create

deployment task cash. important the of Another excess been has

on with of to In In unpaid the million. months, capital will We exceed $XX deals on deploying discussed estimate earnings that XX last believe quarter’s own. of we call, principal have on general, about and these we’ve XX%. $XX As calls balance few returns own expect executed asset UPB attractive clean-up clean-up past we in that these calls. billion calls we’ve executed calls approximately continue calls we we

acquire. area debt necessary has been portfolio. a successful the Notwithstanding future investments three that in We have our many Black areas, in [ph] to with first developing a for move We might us for somewhat months more the MSP of plan implementation pending recent Transition our a lower financial and is to of operational into will than and de our also servicing PHH. novo deployed of this a less and have platform particular including emphasis quickly benefits, cash growth believe will costs. remain the on transaction importance integration Knight acquisition short MSP yielding helping service and risk medium-term condition reduce

help Ocwen we believe our in to utilize two best optimize performance. to addition, and it practices In efficient across more operations scale longer-term great achieve companies will

quickly which on our MSP are our In X attention paying more to As aim rate progress effort analysis investors. this million, million. expense. our Please for refer target third transaction that as for have Based analysis, of XXXX. realize us and of synergy our on to particular excellent by support raised is million we customers, platform. more than Ocwen keeping $XXX presentation plan while estimate PHH which detailed of Ocwen towards potential of on mortgage more to closing to $XX our provide customers commitment possible, release, close, higher are this been we loan months within and currently allow and XX customers noted than have in plans quarter as our target the impact investor morning, we we our to with to about and the our we run This the in our will refers potential encouraged detail synergies. minimizing previous and to synergies detailed are annualized run and to to developing reductions press on rate integration realize targeting the moving in service close The to teams be

service synergies concerns, impact minimize merger. one our the process in process. reason making While is change excellent to closing service to borrowers over customer on achievable. The will the we’re transfer we months, dedication following ensure to full results delays every in This transfer the the occur are anticipate the some inevitably throughout we realizing effort believe several of

turning balance our to other MSR me Before Funding lending areas. let sheet, and cover business our valuation. over Cathy, three our

balance Ocwen when a burden manageable to We liquidity. evaluate of maintain our sought funds Regarding cost has delever debt for and appropriate, options sheet. and sheet. always strong improving our continuously the balance

June term. chose particular further voluntarily During waters secured ultimately lean paid move oversupply the example, we mortgage term improve refinancing improving of market The large $XX just We slipped by We discussed million to remaining oversupply. million. on with our the the very debt $XXX debt. quarter, senior a experienced tested the In second opportunistically we Ocwen’s as at excess debt by The areas some object the not of loan term may down in to loan late-June, affected progress use approximately unsecured first term widening end forward. loan on believe that credit. of negatively prior of to and was I issuance sector of demand spread the for

for revamp million to renew off on we and optimize decide on In to may efforts other to our a view facility bolsters of term interest seek $XXX facility. better be we our financing now terms loan a than shareholders’ hold to months, We forms it costs our seeking loans financing. our coming much least closed in sheet mid-July the meantime, on of advance to opportunistic sheet. remain our or our best That refinancing balance and balance in in term refinance risk. such, overall As prior that would improve at

Turning to lending.

mortgage reverse have our our volume following obvious industry note, months is the lending been several and overall seen and you’ll is down As to the breakeven. both the to This across industry. in past business struggle industries. true anyone lending has sizable in performance forward to forward both decline a and quarter-to-quarter continues achieve profit It lending

weathered them to these have better we most. general are nonetheless we While immune than from believe trends, I far

volume a and have and the reverse both whole. forward as Our up held than margins in industry better

underlying a this function the is business. of of Some

relies our For example, our forward lending recapturing from servicing loans on business portfolio.

most sensitive portfolio than is interest and equity and servicing rate portfolios. less servicing more Our sensitive credit

conditions drive the employment a to portfolio in appreciation compared stronger home result, loan a our as whole. As as activity and price industry more

believe We these of to goes our also management businesses. credit

performance by for with look ways market. to to continue We the improve evolving

We and year the remain we the challenging stay of process in these to are efforts Notwithstanding technology lending businesses. second changes investing marketing fully for efforts, ahead. will our half in expect

no the the increase impact end MSR basis-point We of XX in from valuations. end rates saw QX from Regarding of the QX. to benchmark essentially

prices flow servicing times various multiples, industry Secondary excess of the remain in assets for servicing cash conventional X near MSR trading of market for or record at sources. show annual

rise. Officer, details provide potential may Dondzila, it modestly see While dynamics results. over we it continue to turn Accounting on would that now in Cathy to more there upside improve quarter seems second much you that will I Chief valuations, valuations are will if who our demand our MSR rates even unlikely

Cathy Dondzila

Thank you, the compared and today prior brief results quarter My focused John. quarter. be second on comments our as to will

our previously million our As more presentation pre-tax quarter results, a recorded quarter. includes $XX of $X our the on available on the a of loss in investor is versus quarter pre-tax first in and profit second We million details noted, website.

large were decline a quarter. As in our in reminder, the a for versus dominated a value small increase our quarter of by the value first results MSR second

amendment transaction NRZ the the with connection first in quarter. gain in a recognized also We

we noted, million investor adjusted John significant for pre-tax to As see of loss was our in $X shown items, in the in slides XX values Adjusting and on near-term. various increases the don’t expect quarter. as second the XX presentation,

Our prior higher interest quarter, of the adjusted declined lower lending rates, wider was by poor investor in segment spreads, performance volumes. contributed primarily in and for due segment overall driven primarily margins by competition $XXX higher the mortgage decline $X due quarter revenue, performance. million Overall, an lending from to by revenue reverse million pre-tax to driven

of made remainder will at election MSRs an Regarding carry beginning we the owned you many value. the recall, the our to MSR, as at year, fair of of accounting

the makes sense. MSR no expenses. it of reflect the separately valuation is The election, now value and amortization result longer captured adjustment fair we this in a MSR As of in as impact mark-to-market amortization

We deck. have slide our XX in page information to the regards you MSR impact for on provided of additional valuation

straight plans pre-tax a John, servicing quarterly continued noted to pre-tax our our million. gain, $X effort for As costs its our of Notwithstanding profit recording and PHH, servicing develop manage integration substantial acquisition eighth segment by to of we performance. delivered

$XXX of was previous to expenses. revenue the servicing controllable higher in slightly quarter, see versus we million While continue improvement

decline quarter-over-quarter trend we change $X lending rates by continue in and competition spread, income quarter, result the second the of headcount we compared operation. execution however the reverse volumes example, segment, offset to expenses volumes quarter slightly. lower Changes lending for reverse valuation. in XX%, of rates, forward closings in million a industrial we than in had profitability, found pre-tax interest compression and in mortgage lowering the decline. second quarter. program. our higher under was drop continuing $X was and This quarter. million by reduced Due quarter, as HUD reverse prior efforts were During in in posted been program, residual in QX pushed driven positive improve pricing in our compared lending by only by the the volumes which margin for over volume and margin is down the down the XXX In industry, as MSR by higher in more wider controllable continuing we of efficiencies the to to the in by and first margin servicing reverse to higher prior to efficiency, however, increase see margins Overall, the were bolstered down lending investor rates industry funding challenged as prepayment the Much

As lending challenging. we businesses, ways continue for John to stated, our to look remain but conditions improve

assets quarter servicing recoveries million quarter, available operating a million. improvements quarter of was on book $XXX the favorably current to quickly first questions. during We the The driven be we can advanced including foregone Operator, our of as of call XXXX. and summary, near-term. $XXX delinquency in the with And activities net compared liquidity and generation into $XX by had ended strength financial our remarks. corporate in our representing make operationally. open our second balance on completes prepared flow the second you. for about continue which to to from the That provides the $XX liquidity pledged please In adequate corporate peers. primarily advanced During credit Thank cash outstanding portfolio facilities cash was higher We balance to converted progress available sheet that the that compares cash We $XXX to with million, we and million, liquidity cash view position and available fund the total sheet and one-time million debt to line with of cash. quarter. warehouse debt $XXX million equity ratio, choose

Operator

Thank Capital of come question first United you. [Operator John Devaney line from with Instructions] the And will Markets. our

Your now line open. is

JohnDevaney

of of kind And tell John, there. it forward. that is? a the questions $XXX acquisition. Could that from NRZ pro to announced relates understand I funds what one you million? to bit of PHH have analyze the forma, I I’m the million combination to Hey $XX liquidity. that number little trying PHH owes Is going previously us

JohnBritti

So, -- MSRs. yes, they to were some acquire up is set there

million. basis, million $XX think, in think it’s to I’ll I get it is effect the of roughly net look the But -- the I $XX form on to closer a out numbers. have have I’ll give to the net that’s -- mostly to advances. roughly exact impact,

JohnDevaney

transfer expecting -- when Yes. what terms what’s And to or the that that of NRZ, clothing transaction, the more of Is are then, those less? as over receipt funds? those and rights

JohnBritti

update close that’s I So, But, I can the a -- to I is What any between deal give give outstanding I there that. can’t can’t it to specifics two. -- you is don’t close. say you on when likely or more or expected on details actually

JohnDevaney

deals. has another of and these Okay. do And it some to sort invest to question, in and then, the got I’ve then with Ocwen’s decision statement calling of

said Company I’m invested strategy. the almost now you’ve cash. favor in of extremely of the You’ve $XXX million

think I that on point is things and And to billion residuals Ocwen rights I and your believe extraordinary out $XX also both of controlled value Ocwen. this there the especially for the by are partner would could call NRZ. of that One be what

tremendously. I near think future companies that as both and residuals rights the as term well have would the benefit harvested value could that into the call in

very decided encouraged Ocwen I’m this has so, And to to that deploy see strategy.

flows loss efforts am in risk competency written serviced bunch by ability on the that I private up to protect $X, own brought back on purpose are just been tell all $XX label I years That or whatever stay of my at and for at I those of I going effectively deals. on thousands bonds in the very core $X, a there. of HAMP the surprise XX still off universe the I sort out programs, was is out $X, But, the agency off. quarter, doubt And doing bonds. And In proven modified flows just book government it best $X that any private have delivered participated get it’s like portfolio. bonds the mitigation over my close cash to knew they borrowers. And in me against I’m Let are mean, written for whole to is cash services that income bonds I’m and off that Ocwen. Ocwen’s of in nice of on, as you subprime would I mentioned, XX a that Ocwen’s fourth Ocwen’s securitizations securities. that you written sold I the XX% and be interest was of label. private a label believer million

out X% the there slipped lending property means have becomes X% that go residual deals was and the to to where or seasoned up up. if turned at bonds for cover funding it’s income the the deals that could grabs was in and of for X% those very at owner, of of losses So, rate was that the back it some the income the actually borrower

X% of I’m pool. many claim was the a in a these trend maybe was million because sold actual $X extra still created were Now, get off, the I written X% collateral effective that $XX rate what was it -- is bonds. X% money. mitigation where pointing situation I so these were of interesting, efforts And they against million liabilities the the bonds loss bonds. collateral honestly having I ever drove at And giving, new had $XX XX And for the happened that only greater Ocwen different excess lot the at that and thought below only bonds, rate. million I but a actually couldn’t spread of sold them this any spread example deals by impacted they of and loss loss. That the of and income, had Ocwen deals And for

over rights the of has $XX spend collateral is deals currently Ocwen current $X that’s one get bond John, a no are to of million to million call the like directory market and of million of collateral that million that million, or $XX I’ve say my questions $XX is, $XX So, a that Because million? residuals in understanding off. million written $XXX how these has call right, works, in invested where deals, researched been recently that you did say, have bonds ever $XXX and there you price

call to deals. those residual owns So, somebody right the and

And so, million? is could which smart, it are did $XX guys And you million the say you I amount again $XX spend portfolio. knowing of that than collateral which whole probably a to greater get inside

JohnBritti

John, your of those our the bond. to view the is with we for thanks of discussion actions point your agree first manage them homeowners investors. in of good do take good both the all, for performance We that and for

say greater would value Ocwen cut calls, think do which the inference of we had what guess, I a in And what we I call we think do how Regarding could than to a this, you that get details ways, we to into I highlighted. as think value pay. holder won’t the is which some of we is your variety I is about think, but of I accurate. much,

the say, yes, would yes. version the question So, short -- to be I your would answer

JohnDevaney

Are or marking are value market, the carrying cost? that the you you a of collateral,

JohnBritti

we we of some components what of can’t it marking sources source the up account the are of other in income think do on immediately. we don’t. the In all depends into the away; value. of we cases, take value, Because GAAP cases, rules, It of end right

a it’s mix. So,

JohnDevaney

doing NOL? the very enormous you I’ve NOL Also, amount great. and might interesting efforts that that preserve to done work PHH the on from could on that recently and is you’re comment you all There Okay, the buying And transaction inheriting at WMIH be about with Nationstar. deal. KKR thing of you that think an

on the paid in received commissions basically that Nationstar that XXst trigger, I and the serving related they of which said that made to that’s fine. dozens called RESPA kickbacks, CFPB and ten now bought of have January KKR have -- the force-placed say fact most the CFPB, them servicers think, pulled firms allowable, has they insurance, the because mortgage in ruling And the bam! and settlements was

keys getting whole mean, Then, implications that the they’re receiving that relationships refinancing the is can’t that that that millions $X.X was Nationstar to CFPB the any commissions and clients ecosystem has any the announced think pay dollars, excellent industry, servicing and to the and showing voters of Nationstar the relationships. using valuable why having million industry all now RESPA million job of anything. been the in the merger those relationships to anything, or agency were the saving done originators in just that partner, lending, pay, relationships listen, card years, to this for has has Ocwen insurance these areas the has X looking therefore ruling money, loans. CFPB Nationstar to these wide so relationships. And into million the from an do loan credit voters I the businesses, kickbacks of mortgage and because combined other going government are have into mainly of just expanding origination said, I estate Ocwen, originators. X this gone XX really [ph] has this, any all has the advertising for a the you on they’re Nationstar Nationstar holds into and these because after fees originators lot are real loan started

of a there. all lot for got credibility they’ve helping out those homeowners So,

onto that with that Now, billion that X something the of them right it’s the DC that The with ruled said, has from $XXX analyst Nationstar expected based go that and control yes. The is an Jay of the Nationstar from Jay value go court XX put to by if Jaffray had this our a the coming NOL. asset Bray think marketplace actually would harvest then Kevin now say merge call NOL; billion of merger point sheet. made up that RESPA XXX NOL to vehicle trigger banc value book the of on that value are KKR’s that was ruling by commissions on decide by But a pull balance the book on XX, discussion trigger Kevin to And XX. Barker and was to of the okay yes, this and I million. quickly Nationstar to like who to got isn’t Piper the en profitable the

this the went XX-K that’s So, right statement allowable been mean, on I saying Financial. just extra I accounts and have to unsolicited It’s include And the And it. year some issuance just a think million the based putting you $XXX to that they we got aside, think large from are the positive encouraged Nationstar as a that’s into looking Ocwen I been value believe at or that marketplace, NOL hired their the said able And them through inquiries to $XXX think by sheet. see at But to Nationstar. the trigger I’ve that that in get referring to by merger the the been part now merger now, industry. X-K the NOL board, expect very it’s look company ruling. I in that an might do the earning to RESPA balance label debt like old [ph] had their I now deals, their -- company on they is to I the different now, now positive a an Ditech in to announced that I’m from saw it’s and consolidation in that million on is coming large Nationstar with driven very value. a an company buy and for acquisition But, presentation and be they the think, merged

You to reported million some of that Ocwen it’s NOLs adjustments Financial you has. made based -- that and approximately XXX

thought or those that million now are whatever. worth $XXX You

in on haircuts You tax made reform, to based said XX-K the that.

asset trying ruling, some that they asset to significant this believe this the But, the it that why to Ocwen, well. about that as the is also work big and NOL to what going ever $X.XX, flip out could players done, on might to use of amount I if in say figure it, the there it So NOL and -- to I ruling out, when I I’ve safe RESPA know thinking again. that said be be an it might and fact worth triggering light able Ocwen positive. use can of to may it XX-K, invest But, private if you again, green your in in equity area be who’s flash John,

there preserve that. I mean, some So, you can’t how it. adjustments losses to much I value think But, NOL to financials try out. they’ve numbers do it are that? need you comment I’ve taking be present PHH reading been I the mean, big and figure got don’t PHH? of on on and might And to of you steps to

JohnBritti

steps to of any can effects to optimize merger tax we think, I that say taking the merger. are try of we John, our -- So,

as noted, thing pick focus. to we to larger have primary the base, And NOLs, Obviously, that might we think right result the up it’s well to that I of I speak estimate is think and over. try return that’s important we might a merger. the certainly the come premature merger anything as scale our much publicly up to take of and this NOLs customer ones and in are as to value to advantage of a now both order the today -- profitability, you most picking

so use help and potentially makes to customer and us close that on. to scale that base do provide base that get And to that leverage customer services our hopeful -- them profitability. that to some the use value-added to can think we opportunities I with So, there are

think and to we been what added want of kind other opportunities be the bit So, to I customers. services our focus think the But, because and butter opportunities to of something Certainly, is industry more to have really past value our hesitant right -- do. that bread first. business, provide will getting at on also we looking publicly that some we in there a I there that is

JohnDevaney

question the private that And from there I competing for news then, advances And against they I you’ve Freddie Freddie I servicing sector. said that other had Mac, know now Mac that worked entered the saw think that is release and in the help and before, Mac market to the with it that have say discussed that funding certain come that terms improved this in statement it the advanced and in it’s to some or that liquidity you Freddie of downturn agency could interest liquidity. own Ocwen have not firms their from whether in provide the of facility? of Can area lending

JohnBritti

that getting gruesome plunge have participant that say and we Fannie it’s Fannie MSRs on others not Freddie for in potentially or I financing. publicly in Mac an big at and often for supporting advances financing plunge to if their May the Without Mac say remains ourselves, that of know, it’s impossible to a influence financing all advances difficult the matter as a advances. ability to into detail, not is would Freddie opportunity I think and the you facility. are industry times it that if they’ve And and Fannie Freddie for publicly advances. can including Mac Freddie the in interested I about So, a talked pilot

it’s of bit produce the to the I think and was probably more where industry helpful little participants market ultimately that a it as very developed kind would extent one-offs. be we would think I offered participation if opposed broadly to broadly is their to be beneficial program So, for didn’t concerned a that

JohnDevaney

reverse those mortgage the think well the from $X.XX invested in that or the had Company that, an add reverse more tails. not on could little had mortgage adjustment. funds response that put rate that quarter were mortgage book something that a Martini tail GAAP deck as had the discount balance about question at you’d reverse had Omega now slide I there’s to currently -- that confirm put discussed, about Yes. reflected business, Sam Ron, And deals assets last as in calling Ocwen’s as like that -- purchasing sheet. to value It’s the you in a you then, maybe Ocwen said And on would

actually listening could say, be assets, increase Ron of almost sell was couple that that us these give call. anybody’s hey, think I Ocwen’s had wants number just a things to GAAP XX%, So, there Sam trying an out a if and then, And that there’s to confirm book. to a at dollars of

in missed the actually said you on that invested reverse slide tails. I’d So, last it deck that mortgage --

that could seems discount another mortgage other tail can did and marketplace to purchase from rate need risk-free the gave at? what to It debt from wanted cash? people -- buy investment a of like buy those that reverse it’s you kind liquidity cash? And just confirm So, you in you participant that

JohnBritti

Yes.

tails. future We in our that’s book. of an all, $XXX.X on So, think, gains first which we continue do our release, to noted press in undiscounted estimated effectively purchasing we what to -- reverse draws, as tail have future invest million referring purchase from as I I you’re in think

to But attractive the base. with. a in get are I tails best it think XX% any I to don’t single do yields our who of I is, enter we that think about through think relationships that want details type say XX% buy do in getting And and in in to the the way in think that We at it’s into there might correspondent reverse transactions say, any transactions them quarter. we effectively range. forward the could lending of notable -- equivalent about space. of we’re didn’t large correspondent from we kind I are don’t -- I would

JohnDevaney

your And then, of GAAP of book is the my to it merger, -- cost just end from the What value, by involves expected some the maybe I a the PHH question, I year? following you there last just saves X John, the at pickup discussed times $XX the has you’re $XXX think million XX something an $X.XX. points book that Ocwen that’s share, GAAP million, mean, that PHH and XX, know expressed buying of was a shares, at was transaction. I

is You’re picking cost there think to saying million wind you that going up. you’re saves up that of $XXX

the Although second, PHH street fourth and $XX million quarter. there I that or third some the think that of [ph] in of be cover XX thought firms losses could

his Ocwen’s a forma are these So, pro with GAAP still be is pickup you manager? to you to of what money if because pick to but is the it all you the $X.XX merge company if put costs book going GAAP the and pickup saves? Like, value, in lose expected that blender, value to up they

JohnBritti

what balance targeting usually estimates don’t say we’re detailed would there we sheet. million is forward guess, -- mentioned, are this, in We think that earnings $XXX I or I know. don’t provide of our -- we as our do you as saves,

think as to some that that get the of I expenditures haven’t point. we to also mentioned, publicly we estimated

which other severance So, targeting as XX about know, be period of we’re we training, it’ll months. transition, and we’ll during items some expenses take the incurring for

get to your some will that you you rate. going to think book well blender, need forward value. some there not about as think to of that a you be give as as probably our But, time I expenses, do estimate transition-related So, assume run I’m to

thing through. is work take particular purchase is a little accounting other a to of bit thing; it flow The could of that kind

you in today, don’t the based to even wanted I to know good a that on got, So, number. we position that numbers if provide we’re estimate I

JohnDevaney

I that said dealing help another insurance your certainly the Yes. that’s core And Great. all to the for really investors became effectively on market one competency, then, the and on best. Ocwen Freddie -- delinquencies that to And I that want loan number Well, best investor does use performing all have. holders benefited why Fannie, the please agencies with RMBS these those has expertise Ocwen keep your should the to the for up call guarantee which modifications. in Ginnie protect the lead reason outcome good as years with trying the work, is

up keep investors. jobs these So, the doing homeowners keep same protect doing good to the with work, helping everything and

one realize whole forward to that business thank to I’m value And with business course, you the start use for are of looking I’m partner investors sub-service over provide win future. core the and permission here these the to new leaf the in to And competency with opportunity a Ocwen the and with and agencies, you to much. and the of of think investors grow regulatory that very And the to going turning company and of the borrowers new likes regulators see homeowners. dealing to granted NRZ, I the long haul. being

John Britti

it. I you, appreciate Thank John.

Operator

does conclude concludes the This in today’s and today’s This session. you gentlemen, program. question-and-answer participating conference. thank you. Ladies for Thank

may disconnect. have You all day. Everyone, great a

Onity (ONIT) 26 Jul 182018 Q2 Earnings call transcript