We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ocwen Well Poised For Growth, Regulatory Probes Persist
Read MoreHide Full Article
On Aug 29, 2016, we issued an updated research report on Ocwen Financial Corporation (OCN - Free Report) . Despite of heightened regulatory concerns and the adverse impact of elevated compliance and monitoring expenses on the company’s financials, initiatives to diversify its revenue sources and various cost reduction techniques will enhance its creditability and profitability in the long run.
Ocwen had been tremendously expanding over the past few years through acquisition of firms along with Mortgage Servicing Rights (MSRs) worth billions of dollars. Though in 2015, sale of MSRs due to increased regulatory probes on the company, regarding its capability to service them, had an adverse impact on revenues. Nonetheless, the company is expected to gradually deflect the adverse impacts of MSR sales, thereby leading to growth in top line.
Additionally, Ocwen is striving hard to restructure this portfolio and improve its balance sheet position. Further, the company has significantly lowered its corporate debt through the sale proceeds of its MSR portfolios.
However, persistent regulatory probes remain a matter of concern for the company. These issues adversely impact the company’s stock, which has been witnessing a prolonged downward movement. Though Ocwen has started to address these issues, it would take time to regain the investors’ confidence.
Further, higher compliance, monitoring and legal expenses will continue to weigh on the bottom line despite the company’s efforts to lower its annual expenses in 2016. Moreover, due to the increased focus on the Lending segment and initiatives to boost top-line growth, overall expenses are expected to remain elevated.
Over the past 30 days, the Zacks Consensus Estimate for loss per share to be incurred by Ocwen has widened 0.8% and 14.3% to $2.38 and $1.36 for 2016 and 2017, respectively.
Currently, Ocwen carries a Zacks Rank #3 (Hold).
Other Stocks That Warrant a Look
Some better-ranked Mortgage and Real Estate service providers include Walker & Dunlop, Inc. (WD - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Lendingtree Inc. (TREE - Free Report) and Essent Group Ltd. (ESNT - Free Report) , both holding a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ocwen Well Poised For Growth, Regulatory Probes Persist
On Aug 29, 2016, we issued an updated research report on Ocwen Financial Corporation (OCN - Free Report) . Despite of heightened regulatory concerns and the adverse impact of elevated compliance and monitoring expenses on the company’s financials, initiatives to diversify its revenue sources and various cost reduction techniques will enhance its creditability and profitability in the long run.
Ocwen had been tremendously expanding over the past few years through acquisition of firms along with Mortgage Servicing Rights (MSRs) worth billions of dollars. Though in 2015, sale of MSRs due to increased regulatory probes on the company, regarding its capability to service them, had an adverse impact on revenues. Nonetheless, the company is expected to gradually deflect the adverse impacts of MSR sales, thereby leading to growth in top line.
Additionally, Ocwen is striving hard to restructure this portfolio and improve its balance sheet position. Further, the company has significantly lowered its corporate debt through the sale proceeds of its MSR portfolios.
However, persistent regulatory probes remain a matter of concern for the company. These issues adversely impact the company’s stock, which has been witnessing a prolonged downward movement. Though Ocwen has started to address these issues, it would take time to regain the investors’ confidence.
Further, higher compliance, monitoring and legal expenses will continue to weigh on the bottom line despite the company’s efforts to lower its annual expenses in 2016. Moreover, due to the increased focus on the Lending segment and initiatives to boost top-line growth, overall expenses are expected to remain elevated.
Over the past 30 days, the Zacks Consensus Estimate for loss per share to be incurred by Ocwen has widened 0.8% and 14.3% to $2.38 and $1.36 for 2016 and 2017, respectively.
Currently, Ocwen carries a Zacks Rank #3 (Hold).
Other Stocks That Warrant a Look
Some better-ranked Mortgage and Real Estate service providers include Walker & Dunlop, Inc. (WD - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Lendingtree Inc. (TREE - Free Report) and Essent Group Ltd. (ESNT - Free Report) , both holding a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>