Reported a Q2 2018 net loss of 30 million a 15 million improvement over Q2 2017 Generated 97 million of Cash Flows from Operating Activities during the quarter Helped over 10 700 struggling families remain in their homes through loan modifications Voluntarily paid-down 50 million of Corporate debt WEST PALM BEACH Fla July 26 2018 GLOBE NEWSWIRE -- Ocwen Financial Corporation OCN Ocwen or the Company a leading financial services holding company today announced operating results for the second quarter of 2018 Ocwen reported a GAAP net loss of 298 million or 022 per share for the three months ended June 30 2018 compared to a net loss of 444 million for the three months ended June 30 2017 a 147 million improvement Ocwen generated revenue of 2536 million and cash flows from operating activities of 972 million for the three months ended June 30 2018 and ended the quarter with 2284 million of cash In the second quarter of 2018 Ocwen has remained focused on four areas helping homeowners resolving legacy regulatory and legal matters investing excess cash and preparing for our merger with PHH commented John Britti Chief Executive Officer of Ocwen We have made progress in all four areas Ocwen completed 10 752 modifications to help homeowners stay in their homes while providing loan investors better outcomes than foreclosure Regarding legacy regulatory and legal matters we believe that as a result of court rulings settlements and ongoing negotiations we are continuing to make progress on this front We also continued the process of prudently deploying our excess cash in both short-term liquid and longer-term business investments Our primary emphasis however has been on developing our plans for integration upon closing of our merger with PHH We have made solid progress towards closing the transaction and we are currently targeting closing the acquisition in the third quarter of 2018 Our integration planning has progressed sufficiently for us to revise our annual synergy run-rate target up to 100 million over annualized Q2 2018 operating expenses for both companies combined Second Quarter 2018 Results Pre-tax loss for the second quarter of 2018 was 284 million a 132 million improvement from the second quarter of 2017 The Servicing segment recorded 21 million of pre-tax income for the second quarter of 2018 the eighth consecutive profitable quarter for the business The Lending segment recorded 14 million of pre-tax income for the second quarter of 2018 a 20 million increase over the second quarter of 2017 Our reverse mortgage lending business recorded 31 million of pre-tax income and our forward lending recapture business incurred a 17 million pre-tax loss The Corporate segment recorded a 319 million pre-tax loss for the second quarter of 2018 primarily driven by 134 million of corporate interest expense 74 million of ongoing strategic transaction and restructuring costs and 53 million of CFPB and state regulatory related legal fees and other expenses Additional Second Quarter 2018 Business Highlights Completed 10 752 modifications in the quarter to help struggling families stay in their homes 14 of which included debt forgiveness totaling 51 million Delinquencies decreased from 90 at March 31 2018 to 83 at June 30 2018 primarily driven by loss mitigation efforts and general economic conditions The constant pre-payment rate CPR increased from 129 in the first quarter of 2018 to 143 in the second quarter of 2018 In the second quarter of 2018 prime CPR was 170 and non-prime CPR was 129 In the second quarter of 2018 Ocwen originated forward and reverse mortgage loans with unpaid principal balances of 2164 million and 1536 million respectively Our reverse mortgage portfolio ended the quarter with an estimated 1067 million in undiscounted future gains from forecasted future draws on existing loans Neither the anticipated future gains nor the future funding liability are included in the Companys financial statements Invested 1552 million of excess cash to reduce borrowings on advances and warehouse lines and over 90 million in portfolio investments largely made up of seasoned residential loans acquired through executing RMBS call rights and targeted Ginnie Mae securitization loan buyouts Announced updated annual synergy run-rate savings target of 100 million over annualized Q2 2018 combined Ocwen and PHH operating expenses which we aim to achieve within about 18 months of close and is higher than our previous estimate of 50 million This synergy target does not include the impact of transition-related expenses such as technology and other integration costs and severance expense or net MSR valuation adjustments The closing is subject to regulatory approvals and other closing conditions Webcast and Conference Call Ocwen will host a webcast and conference call on Thursday July 26 2018 at 8 30 am Eastern Time to discuss its financial results for the second quarter of 2018 The conference call will be webcast live over the internet from the Companys website at wwwOcwencom click on the Shareholders 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 services and originates loans We are headquartered in West Palm Beach Florida with offices throughout the United States and in the US Virgin Islands and operations 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 wwwOcwencom 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 the use of forward-looking terminology Forward-looking statements are typically identified by words such as believe expect foresee forecast anticipate intend estimate goal strategy plan target and project or conditional verbs such as will may should could or would or the negative of these terms although not all forward-looking statements contain these words