Thanks, X. to and good call for on our Slide Great. going update joining I’m today. morning, Thanks get everyone. business Dico, started
legacy up diverse We've capabilities built believe preliminary third to trends am we're our a regulatory resolving able continues for we we we a results market We cycles. on been delivering Profitability to results diversified here. volume really committed We've consumers got that a perform a improving. team and of competitive share opportunities. energy here to portfolio got do. with and cost quarter investors. passion our a more excited of with we're I and great make so they've deliver accomplish. what continue more believe working progress you business, We're the Originations I'm line structure. our grow. and servicing can We've great really with lot and to stronger, what proud efficient, really and to is to our well today. Everybody's matters, just Today through
and cost growth, focused diversification, profitability executing create And straightforward value about for and shareholders. operational will all believe of long-term on are our It's balance, strategy. a We look, excellence. strategy enable execution we this leadership will continued
Slide on for just a Let's turn couple X, today's to Ocwen. words of
We over servicer originator outcomes both and industry-leading servicing tailwinds interest We that grown clients well and by XXX% independent driven million and the benchmarks we've mortgage year. we're against with trends positive homeowners, in believe are business products. who's a well platform total creating first-time got industry channel performance and in COVID number built and we special and outcomes focused in room borrowers, a performing past over on and leading operations for that's really for capabilities a positioned base various investors non-foreclosure got diverse and forward from, rates, and originations. as units, special several and are to mortgages mortgage and expansion as X and of hundreds servicing for both We've think we reverse retiree communities and of principal origination There in trends a proven by And client product homebuyer We've thousands demographics these multi-channel originations investors. expiring We've originations. and benefit two also are volume plans. got reverse favorable creating of borrowers serve efficiency.
growth, well low-cost operational acquire has and the drive us opportunities de capture really and to novo to in profitability drive environment. scalable we've growth believe positions And controlled, and we Our technology-enabled that proven effectiveness. industry platform efficiency built integrate, demonstrated current team deliver deliver the ability a
execute subservicing measured We've We highlights at earnings of the adjusted third pre-tax payments, continues our just servicing you was of and up remarkable lump than on combined, by quarter respectively, over of that Slide sum improved Xx quarter. profitability is couple quarter. XXXX continued XX%, to fourth $XX more Ocwen before in the the on last adjusted the impact $XXX consecutive million, and NRZ balancing Originations the million and our Turning X, quarter as platform. that's earnings. we've profitability and delivered COVID a volume pre-tax of by may metric a here and When be to since MSR year. pre-tax This grow. amortization for really baseline prepayment time performance. well PHH adjusted of look the second to
subservicing portfolio the easier be report here we including our make this so been are originations of We our our for we'll it of see. rolls our volume of in our volume. quite going forward and our This originations now business has forward servicing additions it in interim and But to for part part is to time, in portfolio showing investors some replenishment. used to model XX-Q,
our make X you can our adjusted two cost key operating by We element made Continuous past in points progress, of last third quarter. We've is settled as mediation. a see, over improvement on great improvement. continuous progress our expenses go-forward prior years. Florida continued cost We’ve to now which improvement strategy, matter We got for do with is legal regulatory believe since about percentage and positive continue previously the matters room we've our in and up the legacy to legacy we our reduced announced. XX%, as quarter,
of resolution, with Florida $X.X state Florida now settlement actions a payment XXXX. The With total includes million. combined all the from resolved we've
in loan In book objectives the In not event accounts quarter, with addition, late income. not during agreed assessed yet X of into years incremental matter, specific collected settling met. is but million. are borrower two we in payable fees modification million $X.X recognized this the or we've to did And in third reserve to connection million an waive $X.X
has integrity boarding we've in other the matters the the data issued and been participating New York, loan review the here, completed audit, report states. addition, escrow post to required by On as final
While legacy to company. commence matters, to discuss these we the we're lastly, not on with CFPB results October at results in both XX. detail, are scheduled liberty for were items mediation And the the favorable on the the to
matter, While on no settling settlement do hopeful the matter impact a forward. may our path Florida that CFPB of offer has with direct state remain we the Florida potential the
the it Our stakeholders. strong was for an remains up in resolve acceptable results another wrapping here, just the overall, quarter. matter that timeframe goal possible in shortest believe we outcome to our Again, CFPB
track continue to in priorities our well progressing execute is We XXXX. our right key with for And on our performance expectations.
team platform progress. in and did subservicing up XX% last correspondent volume, sales bit year. quarter XXX% our Total including contract quarter second quarter quarter, origination third the the largely the over We Slide the see making the a Turning up over enterprise flow quite versus multi-channel channels. X, great to look, is of second and conditions and margins are third in
a address the as initial as as largely expected has expectation our the capacity and would MSR We'll in that in our volume was this builds talk shock the after the corresponding margins reenter the industry well second flow growth quarter, contraction offset said, and market Again, with contract. continued moment. in the to buyers industry growth about in mix here COVID changing June. So That is margin volumes volume.
Our correspondent up for XX in Recapture time levels. up enterprise this terms up was added doing the partner total largely grow. roughly base. almost the XX% in added second at program. the year. this correspondent and volume Funded XX in the there sellers second our is quarter. continues roughly up volume is of by Flow SMP were was it to staffing XX% new sales team, to platform volume team We averaged very was and new Xx We co-issue they're XX% Again, new was roughly about co-issue was rates fundings The last quarter. the well. Recapture or performing – partners. what limited Xx sellers Funding quarter over sellers running about well quarter. to
cash replenishment we very third activity levels XX a blended subservicing We historical so the Now, great yields in MSR proposals progress prepayment we we continue discussions IRRs across and improve, and originated on accounts make MSRs saw levels. opportunities. space. in quarter, the subservicing on to billion continued And high. increased in cash continues to in strong was Expected $XX are about to roughly quarter. XX% despite we're IRR, late-stage during quarter seeing here to our in rate. lastly, It that record relatively third the very all compared issued be the good,
Our which replenishment the up from is rate, XXX%, last subservicing, excluding was NRZ XX% terminated year. only
So and again, quarter growth. sequential every year-over-year the originations channel strong a with delivering for really organization quarter
potential us. here just Turning the again, sales X, for sales our think to approach. working We for we've enterprise scratched Slide enterprise well strategy our is
Our enterprise blitz quarter We third product launched offers marketing our potential of enterprise in our grow. sales clients. our sales a continues suite new full to clients to and existing and our team existing late portfolio pipeline
Our subservicing, purchase billion flow and opportunities services opportunities. $XXX in MSR, top represents XX recapture
base by XXX year-end and over XXXX Over XXXX. are grow to next and over we XXX flow seller correspondent to targeting XX the our by year-end months,
the to deliver progress $X growth So $X.X in Mae. our look a the forward our there. XX% origination in we again, going flow slightly seller great being begin the To corresponding volume Mae billion participation volume Mae volume overall XXXX, should the has market us is to of about of first and in anticipated forward. in Ginnie that month been volume. expect contraction, of Even greater allow per of Ginnie Ginnie half our our space to industry Mae program products share amount a base originations co-issue in billion date, to Ginnie Roughly nominal with and
improve continue retention to and platform. grow We our
before, a challenge the I said challenge. it's biggest there I As our industry. think hiring is And across
and technology our capacity and staffing, And actions and we've that's our where global footprint. targeting again, they've enhancements end operations recapture XXXX recapture still the These and that the done really by targeting we're so XX% our XX%. double of driven year. to we quarter XX% far actions this another of increase leveraging second to the helped rate productivity level process-driven us through combination these goal today, year the of are a We of from about are by –
marketplace, we're the while take that staff mid-XXXX. However, to we expect a now – It's we've to there challenges hiring going up to to get due the by seeing platform. in the
growth the originations arena, accomplishing. Again, base XXXX progress annualized a over growing roughly billion off opportunities with since targeting our ago, a base subservicing driving as for the of Again, and really sales volume in just run in subservicing. volume. remarkable seeing we’re over $XX proud rate billion here year what we're is XX/XX current $XX now is in and this over mix the our in seller well as of Our really, for servicing considering team enterprise own and
expenses to and well over quarter, continues of as the Turning a release to Servicing lien Slide this well. expected X, platform amortization servicing faced headwinds our reduced quarter higher as perform a increase record with second in prepayments really ancillary XX% MSR number versus driving income.
to type headwinds, of Some you in pre-tax is for before team lump roughly anticipated two-thirds loss environment. with June. adjusted payments moment. those breakeven a these reduced this of by in sum share We'll NRZ amortization of results this quarter Despite our the nearly in
operate continue remain Employees engaged, productive to assisting and committed our We clients and customers, remotely. largely to investors.
here the of and to can metrics key that and delinquency page, the cycle you well. side which On clients, see continue left-hand of effectiveness, claim impact several times namely investors the perform
for remains both operations and including total cost on cost investors and help and side will highly performing owners, structure. performing metrics Our the direct the our MBA realized maintain our loan as result help for left benchmarks cash earlier, a competitive improvement cost per to flow favorable loans. believe page I said lower a global cost actions, strong or ourselves. here and again technologies maintain MSR servicing of us enabling us we the With non-performing on higher should well and performance continuous And in
side right-hand our focus the performing page, customers. continue we the on of to On for
continues have center forbearance. we're for they're on outperform to to the assistance call and positively. and as increase a borrowers rate abandonment Customer us satisfaction continued we're trend consumers MBA, coming Our weekly clients, to help experience to survey that the the technologies and versus in in data committed the of from lot remain notwithstanding We hold seeing the scores times off that. for do investing enhancing both industry
to all times can investments customer analytics, ultimately and and robotic operation helps like extent cycle eliminate a us technology, goal access to automation, their decisioning models, technologies necessary. appointment rework us help OCR, and reduce recognition agent our help These So simplify also to us. with optical rework is client data process improve the character advanced to accuracy, online and in
focused this think record continue platform have at facing homeowners here the pandemic. strong look we supporting picture especially platform you continues we our COVID-XX who metrics when deliver for to on servicing totality, times, a a are been and again, well long consumers investors. track laser these are really indicates and servicing of And we page that has clearly that in a to Our by those helping who've customers, harmed challenging be
on Turning our Slide situation. to may be X, here forbearance an COVID-XX update
So look, loans our exposure continues forbearance to diminish. to on
the have You forbearance decline. responsibility plans to that plans in left upper can advance see total the where we forbearance ultimately to the number of the and continued
big difference a total from of we chart the and have advance, frankly our plans As forbearance where of reflects, subservicing. the there’s plans a maintain to to pretty a responsibility between ultimate owned servicing the that's function and mix benefit and strategy a
and servicing we with advance, consistent non-bank in loans on adjust average for of the differences is servicers owned our shown have Our performing responsibility of portfolio, you in stats. mix if percentage to MBA between again, industry where terms portfolio the other the forbearance, here
performance. the X.X%, very of consistent on percent of percentage again, total a industry Our would forbearance – at as the roughly forbearance be so X.X% versus loans
seeing plans reinstate XX% forbearance of are roughly maturing, are XX% extending. about on We our borrowers
X% mitigation to with we're matured and that about to the roughly to loss them. sense So the most see work have from borrower plans awaiting makes of XX% progressed direction what them on for of we'll and roughly about continue
We are seeing make borrowers forbearance XX% of continue payments. on about to
and who best, investor consumers they Our We consumers loss and need ready creating the positive on we of outcomes expectation of we'll borrowers assist to servicing and for assistance need and will when permissions that's of of forbearance guidelines. to what and PLS our again, options. mitigation within assistance. run forbearance out stand to roughly likely homeowners investors, continue Mae We most form have focus do these believe on XX% XX% are those some loans reinstate is will the roughly Ginnie
like Turning to think to you how share Slide our XX, we with portfolio. I'd about servicing
changing to Our business portfolio changing servicing goal through and build can interest that rates. is a cycles perform well
related Owned and rise. origination, prepayment returns relative Special volatility, here accelerate our those higher We that return balance on delinquencies higher The return servicing. four than has to so but relative prepayment pivot and dynamics servicing, when profitability characteristics. does are credit volatility. performing per lower on but of deteriorate income or and performing based capital emphasis servicing, Owned net servicing, but to prepayments volatility on credit both cycle. economic special dynamics reduced based owned countercyclical while higher market offers targeting generally servicing to servicing objective has loan balance lower are related servicing subservicing, profitability our characteristics and each one than diversification quadrants are Maybe generally a Performing returns returns origination higher has macro here. Those intensive business. is but of subservicing, and servicing couple the volatility.
goal our improve of here are average improvement our is our vintage to both new through loan plan. So originations to factors profitability balance, increase our key and which
servicing to our expect Ginnie also Mae runoff We legacy with portfolio replace subprime prompt.
months, Over the the actually to $XX is improvement our prepayment below our bit frankly increased This cost owned lowers our really environment but our which due grow a progress servicing XX the and we in previous that's next to are target, scale billion. making optimum to about point. targeting continuous we're quite
On maybe If with and Subservicing provides loan cost about prepayment can the unaffected when capital per you delinquencies maintained a by the little increase. profitability is revise framework, fee-based generally profitability side structured income with right-hand the or of portfolio is acceleration commitment. bit improve a assuming limited page, subservicing.
and maintain proficient goes fewer when good less subservicing Performing base more a this in least our adds, our intensive at higher of through months, here. revenue next loan and have client level subservicing at and we loan a compared are resource margins competency is paid XX delinquent. offers is get be are provides targeting absorb client subservicing core as $XXX as a In subservicing sub delinquent to MSR the where in will Special we on-servicing to is of recapture when stops continue Replacement performing We subservicing vehicle but services. new cost. adds, existing a a fixed to synthetic to servicing, here servicers intensive driven billion. and resource obviously growth our type by a and
Moving on to Slide XX.
advances additional quarter could drawn Unrestricted the environment, in see do rest actions plus capacity us million, translate unused giving MSR liquidity liquidity these consumption relative been $XXX as a those a can cost to went and origination the $XXX low the we from position. crisis. Servicing great to fully the of margin advances closed P&I of team of less bit the you lower as while advances quarter us million is was there. acquisitions combination an up cash prepayments borrowing but dynamics on our closed actions to help rate continues year forecast of quarter that our balance for wider margins, The strong second The quarter. consuming and cash. and can forbearance We third have pre-COVID the million, roughly portfolio environment below a beginning fund In allows track. Here for sheet position remain be this doing at a the cash quite is the which job with the higher originations. planned XX% realized cash originations total and replenish for a the $XX our optimization fund to well
our going going we originations more objectives normal to prudent we Based than higher less on consumptive We We given the economic expect cash do debt we our we can environment. environment are that stabilizes. the levels, will available been cash minimize But uncertainties do margins and forward. return in cash has as run expense. the to using to it usual to business believe believe can will cash keep interest with growth where be assumption reduce reserves, forward
we funding our hand, other are believe fund so to we alternatives can going the forward. growth On improving available continue
XXXX. do and profitability fund position our of balance to Our our our will continues operating prioritize long-term liquidity where the support growth cash us believe investment that's and for and to the our objective permit capital allocation objectives, year allocating targeted framework for in replenishment and right now investing capital. support to we're and needs MSR We our
discussed, vehicle, synthetic and or subservicing. the previously asset working been MAV, As an growth on MSR accelerate our we've creation of support to
we're billion We advanced we with and to on XX excited MAV for continue turn really would services to with we about service we're you in continued can to can about maybe of provide for now sub provide to make discussions And share this. and sound and recapture investors $XX on up progress MAV for, funding I Page our some approvals so in that MSR progress UPB here highlights that.
perform portfolio fund alter subservicing. excess roughly to investor Operationalizing equity MAV. MSR service XX%. purchasing PHH vehicle amount originations. And and we estimates, the owned from Ocwen portfolio which access again, legal of track So be it and will And would This from Ocwen be investor The for our services capital here the We would purchased. MSRs amount as entities MSRs. and MAV with believe and discussion created debt purchase we the categorized provide is assist sub such, would of interest equal seeing would an investors. the the give on licensed servicing the an all with our GSE investment are will works in capacity we're that MAV of approvals. as us administrative integration. again, an mix way invest MSRs advanced to into high MAV MAV investment be to is one we're MAV invest services. the would recapture for leveraged and of of roughly remaining of volume in Ocwen up other to certain of subservicing anticipated XX% will
subservice and MAV to when estimate greater when operationalize We mix exactly our of clarity in are to XXXX MAV on can be we and volume have revisit operationalized. we volumes and intend owned targeting
and and see us and market the levels Slide how we near the believe do about interest industry will here for XX, X.X future X.X the unfolding industry for XXXX rate potential and opportunities trillion bit near-term volumes XXXX term, to trillion drive long-term to present positioned buyer in well about Turning little current market maybe we that a XXXX. for the Look, you. U.S. originations pretty are GSCs predicting for we’re still the refinance high-quality relatively demonstrate as trillion and in as homeowners on untapped of are to median based they're levels will projecting are analysis over still next high historical strength million which of XX.X Knight data, of there million Zillow estimates Black $X.X home is equity. well refinancing turn projections people first-time And age Census both as markets. well, XX.X XX, the decade the purchase that homebuyers. dynamics age In
So Fed that, to when purchase look targeting strong going factors, a these rates interest you future. lows at who’s foreseeable it's off well for Longer come forbearance, historic with servicers, the keep the with directly term, equipped to mitigation volumes are all combined the if near service from look, levels. and sub home loans not market to loss MSR that do they not will suggests be owners, emerge as their deal forbearance unfortunately, the relatively current
access think very well better again, performance advantage operational mitigation And owners, our will to plans. reports We forbearance to opportunity. needs savings $X.X trillion non-QM baby We Reverse about as opportunity have pools reverse align have likely retirement. in cost leading positioned bit take support A expect – I reverse mortgage necessary for mortgage their for here these around to retirement we cash boomer and we our are their create our and drive estimate very said will emerge capital. the assets do Association opportunity. as assistance. flow experiencing in The do consumers of this profitable non-performing of their maybe as sometimes Mortgage mortgage expect sufficient forbearance the have do potential untapped and where PLS of equals of generation borrowers equity expect need will This available XX% all or of X.X extending these be we XX%. will MSR business. little homeowners. maturing million seniors We for National in skills Roughly do investors XX% opportunities growth I've Ginnie it unfortunately XX% growth we And We about are think general will Lenders roughly home that primary are centered and limitation believe the loss outcomes seniors opportunities. before, Mae these many and to not high rates that industry opportunities
this potential noted and in to working exploring with in value operating Credit environment are range a Barclays to of of options evaluate maximize broad realize advisors, we alternatives regard, this the Suisse, we've As our options our full platform our we are value platform. to strategic our and to leverage proven capability all and of
will it So, financials and the to turn cover our let profitability our to over stop me objectives. and here timeline the June who achieve for and quarter roadmap
