As reported by the Philadelphia Business Journal, Ocwen Financial Corp. (OCN - Free Report) is contemplating the layoff of 54 employees by the end of 2016. The job cuts are expected in its Fort Washington Unit, per a notice filed with the Pennsylvania Department of Labor and Industry.
The company has been witnessing losses since the second-quarter of 2015. According to John Lovallo, the spokesman at Ocwen, the job cuts are required to “better align the company’s resources to drive future growth and restore profitability.”
However, in third-quarter 2016, Ocwen restored its profitability (after a year of losses) by delivering earnings of 8 cents per share.
The company’s strategy involves cutting jobs at various locations, with most of it in the Fort Washington region, which has 250 employees.
Per Lovallo, employees who will be affected will be permitted to apply for available positions within the company. However, the number of vacant positions in Fort Washington was not mentioned.
Notably, in Oct 2012, Ocwen purchased GMAC Mortgage from Residential Capital, a bankrupt mortgage company. Following this, it assumed responsibility for the Fort Washington unit. However, in 2013, it cut 800 jobs, of which 244 were in the Fort Washington facility.
Moreover, a few years ago, the company was fined $2.1 billion by the federal and state regulators for its misconduct related to loan servicing. Back then, Ocwen had agreed to comply with the servicing standards and entered into a consent judgment with the Consumer Financial Protection Bureau and 49 states to pay the fine.
Currently, Ocwen sports a Zacks Rank #1 (Strong Buy).
Some other stocks in the finance space worth a look include Carolina Financial Corporation (CARO - Free Report) , Essent Group Ltd. (ESNT - Free Report) and PennyMac Financial Services, Inc. (PFSI - Free Report) .
Carolina Financial has witnessed an upward earnings estimate revision of 12.9% over the past 30 days. Moreover, its share price is up 25.2% year to date. It sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Essent Group currently carries a Zacks Rank #2 (Buy). It witnessed an upward earnings estimate revision of nearly 3.1% over the past 30 days. Its share price is up 23.9% year to date.
PennyMac Financial also carries a Zacks Rank #2 and witnessed an upward earnings estimate revision of 2.4% over the past 30 days. Also, its shares have gained 16.2% year to date.
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