Home Loan Servicing Solutions (HLSS), a Grand Cayman-based company that was spun off of Ocwen in a Feb. 29 IPO, reported net income of $1.3 million for the first quarter.

This compares with a net loss of $27,000 for 1Q11 when HLSS was a development stage enterprise. The current results include 27 days of operations starting on March 5 and 64 days as a development-stage enterprise.

Besides the IPO, HLSS completed the acquisition of the right to receive servicing fees and associated servicing advances for $15.2 billion of unpaid principal balance on subprime and alt-A mortgage loans from Ocwen.

On May 1, HLSS purchased more rights to MSRs and advances from Ocwen totaling $2.9 billion in unpaid principal balance, bringing its portfolio to $17.8 billion.

"Results for HLSS' first partial quarter of operations were strong and fully in line with our expectations," said president John Van Vlack.

"By reinvesting its strong cash flow from operations to fund the first 'flow' transaction with Ocwen on May 1, HLSS was able to replenish and grow its servicing portfolio."

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