Ocwen has been struggling with regulators for more than a year now, and it has been selling off significant bits of its agency-backed mortgage-servicing portfolio while retaining its portfolio of subprime and nonperforming loans. The company sold mortgage servicing rights to $45 billion in Fannie Mae-backed loans to JPMorgan Chase & Co. (NYSE: JPM) in May and in March announced the sale of nearly $35 billion in agency-backed loans to Nationstar Mortgage Holdings Inc. (NYSE: NSM).
As the company shrinks its portfolio, though, its profits come under pressure, and in late July Ocwen missed profit forecasts and the stock was hammered. About all it can do to bolster earnings is cut costs, and that’s where the layoffs begin. Ocwen chopped about 140 jobs in Houston earlier this summer.
The struggling company paid a $150 million fine in New York state in late December related to is performance in loan servicing and conflicts of interest with certain related parties. Another blow came earlier this spring when 119 holders of some $82 billion in residential mortgage-backed securities tried to have Ocwen removed as the services of the securities. Whether Ocwen can overcome its problems and find its niche in servicing non-agency loans remains the major issue facing the company.
Shares traded up about 2% at $7.00 shortly midday Thursday, in a 52-week range of $5.66 to $27.07.
ALSO READ: 8 Great Value Stocks With Solid Dividends Under 10 Times Earnings
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.