WEST PALM BEACH, Fla., April 6, 2022 (GLOBE NEWSWIRE) — PH Mortgage (“PHH” or the “Company”), a subsidiary of Ocwen Financial Corporation (:OCN) and a leading non-bank mortgage servicer and originator, provided an update on the significant growth of its sub-service business in 2021.
During 2021, the company added $56 billion to the outstanding outsourcing (“UPB”) principal balance, including awards from six new business outsourcing customers, making it the most successful year in terms of customer acquisition and portfolio growth since the acquisition of PHH by Ocwen. in 2018. The new sub-service volume covers direct, reverse and low balance trade customers.
PHH’s under-maintenance business was able to capitalize on several industry and market trends over the past year. These include the dramatic swings in MSR values due to the COVID-19 pandemic, which prompted many originators to hold MSRs; record origination volumes that add pressure on internal service departments; and continuous reassessments of contractor performance.
In 2021, PHH added $152 billion to total UPB services, a 166% year-over-year increase, and ended the year servicing approximately 1.4 million loans with a total UPB of $268 billion. Going into 2022, PHH had customer commitments for direct and reverse outsourcing totaling approximately $35 billion in UPB, which are expected to be onboarded in the first half of this year.
“Last year was a banner year for success and volume for our outsourcing business,” said George Henley, executive vice president and chief growth officer. “We have secured contracts from mortgage banks, regional banks, private investors and MSR holders of various sizes. Our clients have recognized PHH as a superior alternative to other contractors in the market and entrusted us with the task of providing an immediate lift to their valued clients. According to Inside Mortgage Finance, the size of the total outsourcing market is approximately $3.8 trillion, and we believe PHH is well positioned with our scale and ability to fully participate in this growth.
According to a recent survey conducted by the Mortgage Bankers Association, PHH’s service operations outperformed the MBA average in several key areas of service excellence, including average speed of answering customer calls (7 to 8 times faster) and call abandonment rate (65% lower). PHH was also recently awarded Freddie Mac’s Gold Servicer Honors and Rewards Program (SHARP)SM price in the first level maintenance group and Fannie Mae’s Servicer Total Achievement and Awards (STARMT) Interpreter Recognition for General Maintenance, Solution Delivery, and Time Management, and earned HUD Tier 1 Repair Ranking.
Scott Anderson, Executive Vice President and Chief Services Officer, said, “Our best-in-class services platform is centered around our six Cs of performance: Competence, Customer Focus, customer base, technology capabilities, a quality banking risk and compliance model, and a strong value-based culture that underpins everything we do. We believe our service platform is among the best in the industry. Our performance and recent industry recognitions reflect the overall strength and quality of our team and capabilities. »
About Ocwen Financial Company
Ocwen Financial Corporation (:OCN) is a leading non-bank mortgage servicer and originator providing solutions through its core brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the nation’s largest service providers, focused on providing a variety of service and loan 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. Our headquarters are located in West Palm Beach, Florida, with offices in the United States and the US Virgin Islands and operations in India and the Philippines, and we have been serving our customers since 1988. For more information, please visit our website (www.ocwen.com).
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by reference to a future period or by the use of forward-looking terminology and include statements regarding, among other things, the expected closing of the transaction and the Company’s expectations regarding the benefits to be realized of the transaction. Forward-looking statements are generally identified by words such as “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”, “objective”, “strategy”, “plan”, “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative form of these terms, although all forward-looking statements do not contain these words. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Readers should keep these factors in mind when reviewing these statements and should not place undue reliance on these statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward-looking statements and it may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the extent to which PHH may increase its sub-service volume and market share in the sub-service market, and the time it may take PHH to do so; the timing and amount of the outward and return loan shipment currently planned; the extent and duration of future growth in the outsourcing market generally, including due to market changes and other factors beyond the Company’s control; the impact of future regulatory changes that may affect the Company and/or the servicing industry generally; the potential for continued disruption in financial markets and business activity generally due to COVID-19, international events and other sources of instability; increased unemployment and other financial difficulties faced by the Company’s borrowers; the adequacy of the Company’s financial resources, including its sources of liquidity and its ability to sell, fund and collect management advances, as well as to repay, renew and extend borrowings, borrow additional amounts as needed, achieve its MSR or other asset investment objectives and comply with its debt agreements, including the financial and other covenants contained therein; increasing service charges based on increasing borrower default levels or other factors; as well as other risks and uncertainties detailed in Ocwen’s reports and filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended December 31, 2021 and current and quarterly reports since that date. Forward-looking statements speak only as of the date on which they are made, and Ocwen disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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