Onity Group Inc. · NYSE:ONIT
Onity — Ocwen Financial — Investor Presentation (December 2018)
14 slides from Onity's investor presentation, Dec 6, 2018
Slide 1: Investor Presentation December 6-7, 2018
OCWEN Investor Presentation December 6-7, 2018 ©2018 Ocwen Financial Corporation. All rights reserved.
Slide 2: Forward-Looking Statement
guise, OCWEN FORWARD-LOOKING STATEMENT: Our presentation contains certain forward-looking statements as defined under the federal securities laws, such as our statements relating to our expectations and strategies for our business, statements relating to our expectations of the results of our acquis
Slide 3: Key Updates since Q3'18 earnings call
Key Updates since Q3’18 earnings call Update annual confirmed synergy run rate cost savings target to $145 million, up from $100 million most recently communicated v oy Additional insight into synergy analysis staging and reasonableness of $200 million cost re-engineering target v Timing of growth i
Slide 4: Investment Highlights
Investment Highlights OCWEN 9t Largest Mortgage Servicer” with a strong track record of success as a leader in foreclosure prevention for at-risk and underserved consumers Core competencies in loss mitigation favor slowing economy, increasing consumer debt levels, GNMA and non-agency products Acquis
Slide 5: Deep and Focused Management Team
Deep and Focused Management Team OCWEN + Glen A. Messina, President & Chief Executive Officer > Joined Ocwen immediately following the closing of the acquisition of PHH Corporation > Most recently served as President and CEO of PHH, having previously held roles as CEO and CFO for various GE business
Slide 6: Leader in Mortgage Servicing
Leader in Mortgage Servicing OCWEN + 20+ years in loss mitigation innovation; completed approximately 800,000 loan modifications + Proven success in curing delinquent MSR portfolios acquired at the height of the mortgage crisis + Global platform and operations * Service 1.7 million loans with $287 b
Slide 7: Our near term goal is returning to profitability in the shortest time frame possible
Our near term goal is returning to profitability in the shortest time frame possible while executing a robust and prudent integration process OCWEN Phase 1 Initiatives e Execute the integration to create value e Re-engineer our cost structure e Establish funding for growth e Replenish portfolio runo
Slide 8: Management is focused on identifying and confirming incremental cost improvement opportunities
Management is focused on identifying and confirming incremental cost improvement opportunities OCGWEN Initial views represented outside-in Identified Opportunities Cost estimates for anticipated redundancies 7 a and areas with more predictable (Date Announced) Re-engineering Target efficiency improv
Slide 9: PHH acquisition represents a catalyst for cost re-engineering
PHH acquisition represents a catalyst for cost re-engineering to be realized 12-18 months from acquisition date OCGWEN Cost re-engineering target based on retaining only marginal cost of PHH servicing and originations © © + PHH Servicing = 586,609 loans x $93 cost per loan = $55 million $896 + PHH O
Slide 10: PHH acquisition enables return to growth
PHH acquisition enables return to growth... pursuing multiple avenues to replenish portfolio and grow OCGWEN $ UPB in Billions Targeting $35 billion in UPB $400 additions to replenish portfolio runoff + Resuming portfolio acquisition activities in Q1719 + Re-entering correspondent lending; targeting
Slide 11: Non-agency product pilot indicates potential increase in recapture rates
Non-agency product pilot indicates potential increase in recapture rates OCWEN - An estimated 40% of total recapture applications with intent to close do not 100% Non-agency Opportunity qualify for agency products prcscccesss- 1 1 30% 8% 1 - Anon-agency product pilot conducted in i =i I Q3'18 indica
Slide 12: Robust and prudent integration process on track
Robust and prudent integration process on track... expect to complete servicing systems conversion 9-12 months from closing ocwen Structured and rigorous integration High level Timeline and milestone plan oversight process + Integration managed through 17 individual work streams. teams filly staffed
Slide 13: Update on estimated bargain purchase gain
Update on estimated bargain purchase gain OCWEN We estimate that we will recognize a Bargain purchase gain, net of tax, of approximately $76 million in connection with the acquisition. ") The gain results from the fair value of net assets exceeding the purchase price we paid. The purchase price we n
Slide 14: Q2 2018 Adjusted Expenses Annualized Summary
Q2 2018 Adjusted Expenses Annualized Summary OCWEN ($ in millions) Expense Overview Q2 2018 ocn pun | OCN* PHH Expenses 206 7a) |277 I Deduction of MSR FV Change 3) - (33) Iil__ Expenses Excluding MSR FV Change (I+) 173 7i| 244 ‘Adjustments Restructuring Costs 6) (2) (7) Legal and Regulatory Fees (2
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