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Ocwen Financial's first-quarter profit fell 43%, and the Atlanta mortgage servicer said that its auditor is questioning its long-term viability.
Chief Executive Ron Faris told analysts that Ocwen's independent auditor has again delayed its 2014 financial results and has raised questions about the firm's ability to operate as a going concern because of liquidity problems and the strict regulatory environment. Its 2014 results are expected to be finalized by May 29.
Ocwen also said it will sell a significant portion of nonperforming loans backed by Fannie Mae and Freddie Mac at a loss of between $75 million to $90 million. Doing so will improve its operating margins and liquidity and reduce servicing advances that cannot be financed, Faris said. The company also expects to recover more than $150 million in servicing advances.
The auditor has an array of concerns, and no...