Onity Group Inc. · NYSE:ONIT
Onity — Ocwen Financial — Investor Presentation (September 2014)
12 slides from Onity's investor presentation, Sep 9, 2014
Slide 1: Investor Presentation September 2014
Investor Presentation September, 2014 Ocwen Financial Corporation 1 ©2014 Ocwen Financial Corporation. All rights reserved.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS: Our presentation contains certain forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminol
Slide 3: Overview
Overview Low cost, scalable technology platform that helps keep families in their homes Ocwen is an attractive partner for banks looking to sell servicing oBanks held accountable for performance of successor servicers oThe only non-bank servicer subject to its own National Mortgage Settlement standa
Slide 4: Servicing recognition
Servicing recognition-a) Ocwen received 3-star ratings, the highest ratings possible, in all categories The report evaluates servicer performance in a range of categories related to processes and controls, including reaching out to investors who own mortgages, soliciting borrowers who may be eligibl
Slide 5: Recent Investor themes and questions
Recent Investor themes and questions What is the latest with NY DFS? What drove the financial restatement? Why did Moody’s downgrade your Servicer rating and place your Corporate rating on review for possible downgrade? What is the outlook for the cost structure? Did the value of our MSR’s change in
Slide 6: Recent Investor Themes and Questions: NY DFS and restatement
Recent Investor Themes and Questions What is the latest We don’t comment publicly on discussions or interactions with with NY DFS? regulators. We continue to cooperate fully. What drove the financial After releasing 2Q’14 earnings, it was determined that we could restatement? no longer use an accoun
Slide 7: Recent Investor Themes and Questions: Moody's and cost structure
Recent Investor Themes and Questions Why did Moody’s downgrade We believe both actions are principally driven by heightened your Servicer rating and regulatory scrutiny of Ocwen and uncertainty in the regulatory place your Corporate rating environment. on review for possible Not aware of any impact
Slide 8: Recent Investor Themes and Questions: MSR valuation and new initiatives
Recent Investor Themes and Questions How does the ‘Economic If you apply the ‘Economic Balance Sheet’ concept to the MSR Balance Sheet’ MSR valuation, the $4.6B becomes $2.4B. This is largely offset by the valuation relate to past value of the HLSS subservicing relationship of $1.3B-a). Additionally
Slide 9: Ocwen growth
Ocwen growth ($ in millions unless otherwise noted) Ocwen transformation means costs have risen as well 2Q’12 2Q’14 % Change Operating Expense Walk-a) Assets ($ in billions) $5.4 $8.4 56 % $26 $345 $44 $190 UPB ($ in billions) $128 $435 240 % Loan Count (# in millions) 0.8 2.7 238 % $84 - Agency (%)
Slide 10: Cost reduction opportunities
Cost reduction opportunities Area Current Status Opportunity Servicing Recent acquisitions added structure, Wind-down of Recap legacy technology Cost system & process complexity platform New regulations increased servicing Improved data management and quality complexity, data storage and retrieval i
Slide 11: 6/30/14 MSR values using various methodologies
6/30/14 MSR values using various methodologies ($ in millions) $4,585 $1,072 $3,513 $2,583 $1,017 $1,017 Incremental value $2,496 embedded in MSRs $2,002 $494 $494 $494 $2,002 $2,002 $2,002 $2,002 Book ValueFair Market ValueInternal ValuationValue with new assumptions Book ValueFair Market ValueInte
Slide 12: 6/30/14 MSR values (net of HLSS Rights to MSRs Sales) using various methodologies
6/30/14 MSR values (net of HLSS Rights to MSRs Sales) using various methodologies ($ in millions) $4,585 $4,490 o Cash received from Rights to $734 MSR sales $3,513 $1,314 o Value of HLSS subservicing relationship to Ocwen-a) $2,496 $2,442 $2,187 $2,002 $1,867 Rights to MSRs Sales $1,458 value to Oc
Ocwen Financial — Investor Presentation (September 2014) on 6ix