Buoyed by gains in mortgage-servicing revenue, Ocwen Financial Corp. in Atlanta reported net income of $26.4 million in the second quarter, up 65% from the $16 million it earned in the same quarter last year.
The company said in its earnings announcement Thursday that its revenue rose 39% year over year, to nearly $106 million, due largely to a 28% jump in the size of its mortgage-servicing portfolio, to $70.8 billion.
Revenues are likely to surge even higher in future quarters after the company completes its acquisition of Litton Loan Servicing from Goldman Sachs. That deal, announced in June and expected to close Sept. 1, would boost the portfolio of unpaid principal balances to over $100 billion, Ocwen President and Chief Executive Officer Ron Faris said in a statement.
Faris also said that Ocwen's "robust" cash flow would allow it to complete the Litton deal without issuing new equity.
In midday trading Thursday, Ocwen's shares were up 2% from Wednesday's closing price, to $13.02.