Losses continue at Ocwen Financial

• Q2 pretax loss of $96.4M, down slightly from the Q1 loss. Included in the items are are $28.1M in monitor costs, a $15M reserve for future regulatory settlement, and an $11.4M mark against the MSR portfolio thanks to falling interest rates. There's also a $4.3M interest charge under the New Residential deal related to last year's S&P servicer downgrade - this is the last quarter for this charge.
• Backing all that bad stuff out, the company had pretax income of $2.5M for the quarter. Cash from operating activities of $31M.
• Q2 revenue of $373.1M was down 19.5% Y/Y, but marked the first Q/Q increase in revenue since Q1 of 2015.
• Lending segment posted a $7.5M pretax gain, with originations up 35% from Q1.
• Conference call at 5 ET
• Previously: Ocwen Financial EPS of -$0.71 (July 27)
• OCN -0.6% after hours