- Recorded Q4 Net Loss of $(10.4) million
- Generated $475 million of Cash Flows from Operating Activities in 2016
- Completed settlement that lifts California’s restrictions on acquiring new Mortgage Servicing Rights
(“MSRs”)
- Assisted almost 75,000 homeowners through loan modification programs in 2016, including over 42,000 HAMP
modifications, the most in the industry
- Automotive Capital Services grew outstanding receivables 14x in 2016
WEST PALM BEACH, Fla., Feb. 22, 2017 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation,
(NYSE:OCN) (“Ocwen” or the “Company”), a leading financial services holding company, today reported a net loss of
$(10.4) million, or $(0.08) per share, for the three months ended December 31, 2016 compared to a net loss of $(224.3) million, or
$(1.79) per share, for the three months ended December 31, 2015. Ocwen generated revenue of $323.9 million, down 10.6%
compared to the fourth quarter of the prior year, primarily driven by the impact of portfolio run-off. Cash Flows from
Operating Activities were $124.2 million for the three months ended December 31, 2016, compared to $(192.4) million during
the same period last year.
The full year net loss for 2016 was $(199.4) million, or $(1.61) per share, as compared to a loss of $(246.7)
million, or $(1.97) per share for 2015. Revenue for 2016 was $1.4 billion, a decline of $354 million, or 20.3%. The
Company generated $475 million of Cash Flows from Operating Activities in 2016 and ended the year with $257 million of cash.
At December 31, 2016, the Company had not yet paid various potential legal and regulatory settlement amounts expensed in 2016
totaling approximately $68 million.
“We are pleased with the progress the Company made in the second half of the year. Not only did we deliver
significantly improved financial performance versus the first half of the year, we continued our industry leadership in helping
struggling families remain in their homes through responsible loan modifications. We also refinanced our corporate debt,
improved our cost structure and raised our servicer ratings and rankings. In addition, we continued to make progress towards
resolving our major legacy legal and regulatory issues; but more progress is needed for us to complete our stabilization process,”
commented Ron Faris, President and CEO of Ocwen.
Fourth Quarter and Full Year 2016 Results
Pre-tax loss for the fourth quarter of 2016 was $(10.2) million. Pre-tax results for the quarter were impacted
by a number of significant items including but not limited to: $31.6 million of benefit from fair value changes related to GNMA and
GSE MSRs (excluding runoff), $(16.3) million of corporate debt refinance-related expenses, $(12.5) million in potential regulatory
settlement-related reserves, $(8.5) million of regulatory monitor costs and $0.6 million of other items. Excluding these
significant items, the Company had an adjusted pre-tax loss of $(5.1) million.
The Servicing segment recorded $43.3 million of pre-tax income, inclusive of the MSR fair value changes, which
was favorable compared to the prior quarter by $10.1 million. For the full year 2016, the Servicing business recorded a
$(6.5) million pre-tax loss, a decrease of only $22.4 million over 2015 as the business was successful in offsetting most of the
impact of lower revenue from UPB run-off and $(75.4) million lower agency MSR sales-related gains versus 2015 by improving its cost
structure in 2016 and successfully executing on the streamline HAMP modification program.
The Lending segment incurred a $(3.1) million pre-tax loss for the fourth quarter of 2016, $(6.7) million
unfavorable to the prior quarter, driven by a 10% decline in volumes and lower margins. For the full year 2016, the Lending
business earned $10 million of pre-tax income, a decrease of $24 million versus 2015 driven by lower margins due to significantly
lower HARP opportunities and increased expenses from investments in the business.
The Automotive Capital Services business continued to grow, increasing inventory finance gross receivables
outstanding by $12 million or 45% over the third quarter of 2016. Overall, the business increased the receivables outstanding
at year-end by $37 million or 14x in 2016. As of February 17, 2017, the business is operating in 35 markets with 68 active
auto dealerships and has approved credit facilities of $91 million with these dealerships.
Additional Business Highlights
- On February 17, 2017, Ocwen entered into a settlement agreement with the California Department of Business Oversight that,
among other things, terminated the engagement of their independent auditor and removed restrictions on our ability to acquire new
MSRs.
- In 2016, Ocwen completed 74,920 loan modifications with HAMP modifications accounting for 56.1% of the
total.
- Delinquencies decreased from 11.4% at September 30, 2016 to 11.2% at December 31, 2016, primarily driven by ongoing
consumer assistance efforts.
- The constant pre-payment rate (“CPR”) marginally increased from 15.0% in the third quarter of 2016 to 15.1% in the fourth
quarter of 2016. In the fourth quarter of 2016, prime CPR was 19.9%, and non-prime CPR was 12.1%.
- For the full year 2016, Ocwen originated forward and reverse mortgage loans with UPB of $4.2 billion and $825.5 million,
respectively.
- Our reverse mortgage portfolio ended the year with an estimated $101.1 million in undiscounted future gains from anticipated
future draws by borrowers on existing loans. Future draws on existing loans are estimated based on historical experience
and industry benchmarks. We do not incur any substantive underwriting, marketing or compensation costs in connection with future
draws, although we must maintain sufficient capital resources and available borrowing capacity to ensure that we are able to fund
them. Neither the anticipated future gains nor future funding liability are included in the Company’s financial
statements.
- Our CFPB consumer complaint levels continued to improve, declining by 34% for the three month period from August to October
of 2016 as compared to the same three month period in 2015.
- We launched a targeted California consumer assistance campaign with NeighborWorks® Sacramento to help our customers in
California who are struggling with their mortgage debt.
Webcast and Conference Call
Ocwen will host a webcast and conference call on Wednesday, February 22, 2017, at 5 p.m., Eastern Time, to
discuss its financial results for the fourth quarter of 2016. The conference call will be webcast live over the internet from
the Company’s website at www.Ocwen.com. To access the call, click on the “Shareholder Relations” section. A replay
of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain
available for approximately 30 days.
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding company which, through its subsidiaries, originates
and services loans. We are headquartered in West Palm Beach, Florida, with offices throughout the United States and in the U.S.
Virgin Islands as well as in India and the Philippines. We have been serving our customers since 1988. We may post
information that is important to investors on our website (www.Ocwen.com).
Forward Looking Statements
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 may
be identified by a reference to a future period or by use of forward-looking terminology.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Our
business has been undergoing substantial change which has magnified such uncertainties. Readers should bear these factors in mind
when considering such statements and should not place undue reliance on such 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 this 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 following: our servicer and credit ratings as well as other actions
from various rating agencies, including the impact of downgrades of our servicer and credit ratings; adverse effects on our
business as a result of regulatory investigations or settlements; reactions to the announcement of such investigations or
settlements by key counterparties; increased regulatory scrutiny and media attention; claims, litigation and investigations brought
by government agencies and private parties regarding our servicing, foreclosure, modification and other practices, including
uncertainty related to the past, present or future investigations and settlements with state regulators, the CFPB, State Attorneys
General, the SEC, Department of Justice or HUD and actions brought on under the False Claims Act by private parties on behalf of
the United States of America regarding incentive and other payments made by government entities; any adverse developments in
existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and
contractual compliance obligations; our ability to contain and reduce our operating costs, including our ability to successfully
execute on our cost improvement initiative; the adequacy of our financial resources, including our sources of liquidity and ability
to sell, fund and recover advances, repay borrowings and comply with debt covenants contained in them; volatility in our stock
price; the characteristics of our servicing portfolio, including prepayment speeds along with delinquency and advance rates; our
ability to successfully modify delinquent loans, manage foreclosures and sell foreclosed properties; uncertainty related to
legislation, regulations, regulatory agency actions, government programs and policies, industry initiatives and evolving best
servicing practices; as well as other risks detailed in Ocwen’s reports and filings with the Securities and Exchange Commission
(SEC), including its annual report on Form 10-K for the year ended December 31, 2016. Anyone wishing to understand Ocwen’s
business should review its SEC filings. Ocwen’s forward-looking statements speak only as of the date they are made and, we
disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, such as our reference to adjusted pre-tax loss. We believe
these non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition. We believe
these non-GAAP financial measures provide an alternative way to view certain aspects of our business that is instructive. Non-GAAP
financial measures should be viewed in addition to, and not as an alternative for, Ocwen's reported results under accounting
principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar
titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Further
information may be found on Ocwen's website.
| |
Residential Servicing Statistics (Unaudited)
(Dollars in thousands)
|
| |
At or for the Three Months
Ended |
| |
December 31,
2016 |
September 30,
2016 |
June 30,
2016 |
March 31,
2016 |
December 31,
2015 |
| Total unpaid principal balance of loans and REO serviced |
$ |
209,092,130 |
|
$ |
216,892,002 |
|
$ |
229,276,001 |
|
$ |
237,081,036 |
|
$ |
250,966,112 |
|
| |
|
|
|
|
|
| Non-performing loans and REO serviced as a % of total UPB (1) |
11.2 |
% |
11.4 |
% |
11.9 |
% |
13.0 |
% |
|
13.7 |
% |
| |
|
|
|
|
|
| Prepayment speed (average CPR) (2), (3) |
15.1 |
% |
15.0 |
% |
14.2 |
% |
12.7 |
% |
|
13.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Performing loans include those loans that are less than 90 days past due and those loans for which borrowers are making
scheduled payments under loan modification, forbearance or bankruptcy plans. We consider all other loans to be non-performing.
(2) Average CPR for the prior three months. CPR measures prepayments as a percentage of the current outstanding loan balance
expressed as a compound annual rate.
(3) Average CPR for the three months ended December 31, 2016 includes 19.9% for prime loans and 12.1% for non-prime loans.
| |
|
|
|
|
|
|
|
Segment
Results (Unaudited)
(Dollars in thousands) |
|
|
|
|
|
|
|
| |
For the Three Months Ended
December 31, |
|
For the Twelve Months Ended
December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Servicing |
|
|
|
|
|
|
|
| Revenue |
$ |
295,432 |
|
|
$ |
344,268 |
|
|
$ |
1,247,159 |
|
|
$ |
1,613,537 |
|
| Expenses |
178,728 |
|
|
281,108 |
|
|
920,434 |
|
|
1,221,879 |
|
| Other expense, net |
(73,403 |
) |
|
(125,785 |
) |
|
(333,218 |
) |
|
(375,782 |
) |
| Income (loss) before income taxes |
43,301 |
|
|
(62,625 |
) |
|
(6,493 |
) |
|
15,876 |
|
| |
|
|
|
|
|
|
|
| Lending |
|
|
|
|
|
|
|
| Revenue |
23,108 |
|
|
18,003 |
|
|
112,363 |
|
|
124,724 |
|
| Expenses |
26,251 |
|
|
24,202 |
|
|
104,342 |
|
|
97,692 |
|
| Other income, net |
9 |
|
|
1,090 |
|
|
1,967 |
|
|
6,933 |
|
| Income (loss) before income taxes |
(3,134 |
) |
|
(5,109 |
) |
|
9,988 |
|
|
33,965 |
|
| |
|
|
|
|
|
|
|
| Corporate Items and Other |
|
|
|
|
|
|
|
| Revenue |
5,369 |
|
|
186 |
|
|
27,646 |
|
|
2,895 |
|
| Expenses |
32,927 |
|
|
54,538 |
|
|
198,483 |
|
|
158,671 |
|
| Other expense, net |
(22,811 |
) |
|
(7,186 |
) |
|
(39,019 |
) |
|
(23,926 |
) |
| Loss before income taxes |
(50,369 |
) |
|
(61,538 |
) |
|
(209,856 |
) |
|
(179,702 |
) |
| |
|
|
|
|
|
|
|
| Corporate Eliminations |
|
|
|
|
|
|
|
| Revenue |
(5 |
) |
|
— |
|
|
(5 |
) |
|
(58 |
) |
| Expenses |
(5 |
) |
|
— |
|
|
(5 |
) |
|
(58 |
) |
| Other income (expense), net |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Income (loss) before income taxes |
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
| Consolidated loss before income taxes |
$ |
(10,202 |
) |
|
$ |
(129,272 |
) |
|
$ |
(206,361 |
) |
|
$ |
(129,861 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OCWEN FINANCIAL CORPORATION AND
SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (Dollars in thousands, except per share
data) |
| (UNAUDITED) |
| |
| |
For the Three Months Ended
December 31, |
|
For the Twelve Months Ended
December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Revenue |
|
|
|
|
|
|
|
| Servicing and subservicing fees |
$ |
279,627 |
|
|
$ |
328,256 |
|
|
$ |
1,186,620 |
|
|
$ |
1,531,797 |
|
| Gain on loans held for sale, net |
21,317 |
|
|
18,035 |
|
|
90,391 |
|
|
134,969 |
|
| Other revenues |
22,960 |
|
|
16,166 |
|
|
110,152 |
|
|
74,332 |
|
| Total revenue |
323,904 |
|
|
362,457 |
|
|
1,387,163 |
|
|
1,741,098 |
|
| |
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
| Compensation and benefits |
93,727 |
|
|
101,456 |
|
|
381,340 |
|
|
415,055 |
|
| Amortization of mortgage servicing rights |
14,383 |
|
|
11,006 |
|
|
32,978 |
|
|
99,194 |
|
| Servicing and origination |
30,571 |
|
|
88,655 |
|
|
279,801 |
|
|
344,560 |
|
| Technology and communications |
24,814 |
|
|
36,965 |
|
|
110,333 |
|
|
154,758 |
|
| Professional services |
47,791 |
|
|
84,665 |
|
|
305,586 |
|
|
276,393 |
|
| Occupancy and equipment |
17,978 |
|
|
27,334 |
|
|
80,191 |
|
|
112,864 |
|
| Other |
8,637 |
|
|
9,767 |
|
|
33,025 |
|
|
75,360 |
|
| Total expenses |
237,901 |
|
|
359,848 |
|
|
1,223,254 |
|
|
1,478,184 |
|
| |
|
|
|
|
|
|
|
| Other income (expense) |
|
|
|
|
|
|
|
| Interest income |
4,595 |
|
|
2,014 |
|
|
19,083 |
|
|
18,320 |
|
| Interest expense |
(104,500 |
) |
|
(119,767 |
) |
|
(412,583 |
) |
|
(482,373 |
) |
| Gain on sale of mortgage servicing rights, net |
803 |
|
|
(14,037 |
) |
|
8,492 |
|
|
83,921 |
|
| Other, net |
2,897 |
|
|
(91 |
) |
|
14,738 |
|
|
(12,643 |
) |
| Total other expense, net |
(96,205 |
) |
|
(131,881 |
) |
|
(370,270 |
) |
|
(392,775 |
) |
| |
|
|
|
|
|
|
|
| Loss before income taxes |
(10,202 |
) |
|
(129,272 |
) |
|
(206,361 |
) |
|
(129,861 |
) |
| Income tax expense (benefit) |
228 |
|
|
94,985 |
|
|
(6,986 |
) |
|
116,851 |
|
| Net loss |
(10,430 |
) |
|
(224,257 |
) |
|
(199,375 |
) |
|
(246,712 |
) |
| Net income (loss) attributable to non-controlling interests |
(14 |
) |
|
16 |
|
|
(387 |
) |
|
(305 |
) |
| Net loss attributable to Ocwen stockholders |
(10,444 |
) |
|
(224,241 |
) |
|
(199,762 |
) |
|
(247,017 |
) |
| Preferred stock dividends |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Deemed dividends related to beneficial conversion feature of preferred stock |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Net loss attributable to Ocwen common
stockholders |
$ |
(10,444 |
) |
|
$ |
(224,241 |
) |
|
$ |
(199,762 |
) |
|
$ |
(247,017 |
) |
| |
|
|
|
|
|
|
|
| Loss per share attributable to Ocwen common stockholders |
|
|
|
|
|
|
|
| Basic |
$ |
(0.08 |
) |
|
$ |
(1.79 |
) |
|
$ |
(1.61 |
) |
|
$ |
(1.97 |
) |
| Diluted |
$ |
(0.08 |
) |
|
$ |
(1.79 |
) |
|
$ |
(1.61 |
) |
|
$ |
(1.97 |
) |
| |
|
|
|
|
|
|
|
| Weighted average common shares outstanding |
|
|
|
|
|
|
|
| Basic |
123,988,784 |
|
|
125,295,594 |
|
|
123,990,700 |
|
|
125,315,899 |
|
| Diluted |
123,988,784 |
|
|
125,295,594 |
|
|
123,990,700 |
|
|
125,315,899 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| OCWEN FINANCIAL CORPORATION AND
SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands, except share
data) |
| (UNAUDITED) |
| |
| |
December 31,
2016 |
|
December 31,
2015 |
| Assets |
|
|
|
| Cash |
$ |
256,549 |
|
|
$ |
257,272 |
|
| Mortgage servicing rights ($679,256 and $761,190 carried at fair
value) |
1,042,978 |
|
|
1,138,569 |
|
| Advances, net |
257,882 |
|
|
444,298 |
|
| Match funded advances (related to variable interest entities
(VIEs)) |
1,451,964 |
|
|
1,706,768 |
|
| Loans held for sale ($284,632 and $309,054 carried at fair
value) |
314,006 |
|
|
414,046 |
|
| Loans held for investment - Reverse mortgages, at fair value |
3,565,716 |
|
|
2,488,253 |
|
| Receivables, net |
265,720 |
|
|
286,981 |
|
| Deferred tax assets, net |
2,732 |
|
|
— |
|
| Premises and equipment, net |
62,744 |
|
|
57,626 |
|
| Other assets ($20,007 and $14,352 carried at fair value)(amounts
related to VIEs of $43,331 and $59,278) |
435,372 |
|
|
586,495 |
|
| Total assets |
$ |
7,655,663 |
|
|
$ |
7,380,308 |
|
| |
|
|
|
| Liabilities and Equity |
|
|
|
| Liabilities |
|
|
|
| Match funded liabilities (related to VIEs) |
$ |
1,280,997 |
|
|
$ |
1,584,049 |
|
| Financing liabilities ($3,911,488 and $2,933,066 carried at fair
value) |
4,012,812 |
|
|
3,089,255 |
|
| Other secured borrowings, net |
678,543 |
|
|
762,411 |
|
| Senior notes, net |
346,789 |
|
|
345,511 |
|
| Other liabilities ($1,550 and $0 carried at fair value) |
681,239 |
|
|
744,444 |
|
| Total liabilities |
7,000,380 |
|
|
6,525,670 |
|
| |
|
|
|
Equity
|
|
|
|
| Ocwen Financial Corporation (Ocwen) stockholders’ equity |
|
|
|
| Common stock, $.01 par value; 200,000,000 shares authorized;
123,988,160 and 124,774,516 shares issued and outstanding at December 31, 2016 and 2015, respectively |
1,240 |
|
|
1,248 |
|
| Additional paid-in capital |
527,001 |
|
|
526,148 |
|
| Retained earnings |
126,167 |
|
|
325,929 |
|
| Accumulated other comprehensive loss, net of income taxes |
(1,450 |
) |
|
(1,763 |
) |
| Total Ocwen stockholders’ equity |
652,958 |
|
|
851,562 |
|
| Non-controlling interest in subsidiaries |
2,325 |
|
|
3,076 |
|
| Total equity |
655,283 |
|
|
854,638 |
|
| Total liabilities and equity |
$ |
7,655,663 |
|
|
$ |
7,380,308 |
|
| |
|
|
|
|
|
|
|
| OCWEN FINANCIAL CORPORATION AND
SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (Dollars in thousands) |
| (UNAUDITED) |
| |
| |
For the Years Ended
December 31, |
| |
2016 |
|
2015 |
| Cash flows from operating activities |
|
|
|
| Net loss |
$ |
(199,375 |
) |
|
$ |
(246,712 |
) |
| Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
| Amortization of mortgage servicing rights |
32,978 |
|
|
99,194 |
|
| Loss on valuation of mortgage servicing rights, at fair value |
80,238 |
|
|
98,173 |
|
| Impairment of mortgage servicing rights |
10,813 |
|
|
17,341 |
|
| Gain on sale of mortgage servicing rights, net |
(8,492 |
) |
|
(83,921 |
) |
| Realized and unrealized losses on derivative financial
instruments |
1,724 |
|
|
8,419 |
|
| Provision for bad debts |
81,079 |
|
|
101,226 |
|
| Depreciation |
25,338 |
|
|
19,159 |
|
| Amortization of debt discount |
4,177 |
|
|
2,680 |
|
| Amortization of debt issuance costs |
25,662 |
|
|
22,664 |
|
| Provision for valuation allowance on deferred tax assets |
15,639 |
|
|
97,069 |
|
| (Increase) decrease in deferred tax assets other than provision for
valuation allowance |
(11,119 |
) |
|
(28,136 |
) |
| Equity-based compensation expense |
5,181 |
|
|
7,291 |
|
| Net gain on valuation of mortgage loans held for investment and
HMBS-related borrowings |
(26,016 |
) |
|
(7,661 |
) |
| Gain on loans held for sale, net |
(65,649 |
) |
|
(103,112 |
) |
| Origination and purchase of loans held for sale |
(6,090,432 |
) |
|
(5,000,681 |
) |
| Proceeds from sale and collections of loans held for sale |
5,969,812 |
|
|
5,125,203 |
|
| Changes in assets and liabilities: |
|
|
|
| Decrease in advances and match funded advances |
452,435 |
|
|
531,313 |
|
| Decrease (increase) in receivables and other assets, net |
181,835 |
|
|
46,463 |
|
| Decrease in other liabilities |
(7,147 |
) |
|
(109,511 |
) |
| Other, net |
(4,020 |
) |
|
(14,882 |
) |
| Net cash provided by operating activities |
474,661 |
|
|
581,579 |
|
| |
|
|
|
| Cash flows from investing activities |
|
|
|
| Origination of loans held for investment - reverse mortgages |
(1,098,758 |
) |
|
(1,008,065 |
) |
| Principal payments received on loans held for investment - reverse
mortgages |
243,596 |
|
|
151,107 |
|
| Purchase of mortgage servicing rights |
(17,356 |
) |
|
(12,355 |
) |
| Proceeds from sale of mortgage servicing rights |
47,044 |
|
|
686,838 |
|
| Proceeds from sale of advances and match funded advances |
103,017 |
|
|
486,311 |
|
| Issuance of automotive dealer financing notes |
(100,722 |
) |
|
— |
|
| Collections of automotive dealer financing notes |
65,688 |
|
|
— |
|
| Additions to premises and equipment |
(33,518 |
) |
|
(37,487 |
) |
| Other |
(610 |
) |
|
14,021 |
|
| Net cash provided by (used in) investing activities |
(791,619 |
) |
|
280,370 |
|
| |
|
|
|
| |
|
|
|
| OCWEN FINANCIAL CORPORATION AND
SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS —
(continued) |
| (Dollars in thousands) |
| (UNAUDITED) |
| |
For the Years Ended
December 31, |
| |
2016 |
|
2015 |
| Cash flows from financing activities |
|
|
|
| Repayment of match funded liabilities, net |
(303,052 |
) |
|
(506,198 |
) |
| Proceeds from mortgage loan warehouse facilities and other secured
borrowings |
9,242,671 |
|
|
7,170,831 |
|
| Repayments of mortgage loan warehouse facilities and other secured
borrowings |
(9,693,108 |
) |
|
(8,402,758 |
) |
| Payment of debt issuance costs |
(11,136 |
) |
|
(23,480 |
) |
| Proceeds from sale of reverse mortgages (HECM loans) accounted for as
a financing (HMBS-related borrowings) |
1,086,795 |
|
|
1,024,361 |
|
| Repurchase of common stock |
(5,890 |
) |
|
(4,142 |
) |
| Other |
(45 |
) |
|
7,236 |
|
| Net cash provided by (used in) financing activities |
316,235 |
|
|
(734,150 |
) |
| |
|
|
|
| Net increase (decrease) in cash |
(723 |
) |
|
127,799 |
|
| Cash at beginning of year |
257,272 |
|
|
129,473 |
|
| Cash at end of year |
$ |
256,549 |
|
|
$ |
257,272 |
|
| |
|
|
|
FOR FURTHER INFORMATION CONTACT: Investors: Stephen Swett T: (203) 614-0141 E: shareholderrelations@ocwen.com Media: John Lovallo T: (917) 612-8419 E: jlovallo@levick.com Dan Rene T: (202) 973 -1325 E: drene@levick.com
