Ocwen Financial (OCN) - 2024 Q4 - Annual Results

Financial Performance - Full-year 2024 net income attributable to common stockholders reached $33 million, the highest since 2013, with diluted EPS of $4.13 and ROE of 8%[5] - Reported net income for FY'24 was $34 million, a significant improvement from a net loss of $64 million in FY'23[19] - Adjusted pre-tax income for FY'24 increased to $90 million, compared to $49 million in FY'23[21] - Total revenue for FY'24 was $976 million, down from $1,066.7 million in FY'23, primarily due to a decrease in servicing and subservicing fees[23] - Adjusted return on equity (ROE) for FY'24 was 20%, up from 10% in FY'23[21] Servicing and Originations - Total servicing additions for 2024 amounted to $86 billion, including $47 billion in subservicing additions[5] - Funded recapture volume for full-year 2024 increased 2.5 times compared to 2023, with fourth quarter 2024 up 4.2 times over fourth quarter 2023[9] - Originations volume for 2024 was $30 billion, a 33% increase compared to 2023, with fourth quarter volume at $10 billion, up 72% year-over-year[9] - Total servicing UPB reached $302 billion at December 31, 2024, an increase of $13 billion from the previous year[9] Assets and Liabilities - Total assets increased to $16,435.4 million in FY'24, compared to $12,513.7 million in FY'23[22] - Corporate debt was reduced by $145 million, resulting in a debt-to-equity ratio of 2.96 to 1[5] - Cash and cash equivalents decreased to $184.8 million in FY'24 from $201.6 million in FY'23[22] Operational Metrics - Adjusted pre-tax income for 2024 was $90 million, resulting in an adjusted ROE of 20%[5] - Operating expenses for FY'24 totaled $436.5 million, an increase from $412.1 million in FY'23[23] - Mortgage servicing rights (MSRs) at fair value rose to $2,466.3 million in FY'24, up from $2,272.2 million in FY'23[22] Recognition and Outlook - The company achieved HUD Tier 1 servicer rating for the fourth consecutive year and was recognized by the 2024 Freddie Mac SHARP program for subservicing[9] - The 2025 outlook includes increased adjusted ROE guidance to 16% - 18%[4] - The company reported a gain on the sale of MAV canopy amounting to $14 million[19] - The company experienced significant legal and regulatory settlement expenses of $8 million in FY'24, compared to a gain of $21 million in FY'23[19] Shareholder Value - Book value per share improved by $4 year-over-year to $56 as of December 31, 2024[5]