Ocwen has posted a record revenue of $530 million in the second quarter of 2013, up 151 percent from 2012's Q2 earnings. Overall net income for Ocwen was approximately $76.7 million. In 2012, Ocwen earned $44.8 million in the second quarter. Income for the first half of 2013 (closing June 20, 2013), ending with $121.9 million. Revenue for the first half of 2013 was up overall, around 149 percent. Pretax earnings saw an increase that hovered around the 130 percent mark. "We are pleased with Ocwen's strong core earnings and cash flow which should continue to grow with the boarding of our new acquisitions," said Ocwen Chairman Bill Erbey. “Our current pipeline of potential new business opportunities on a probability-weighted basis exceeds $400 billion in unpaid principal balance (UPB). Moreover, regulatory and market trends, including greater prospects for GSE legislation and more private capital flowing into mortgage credit, provide excellent long-term prospects for Ocwen. We continue to build capacity in anticipation of further acquisitions to meet our obligations to our clients, borrowers, RMBS investors and shareholders." Some of the second-quarter highlights for 2013 include the acquisition of Liberty Home Equity Solutions, Inc. from Genworth Financial. Ocwen also obtained Fannie Mae and Freddie Mac mortgage servicing rights (MSRs) on loans with unpaid principal balance (UPB) of $87 billion from Ally Bank. Ocwen also completed 28,137 loan modifications, up 16 percent from the first quarter of 2013. HAMP modifications accounted for 39 percent of completed modifications. “We have established a reserve based on our best estimate of the net amount to be contributed by Ocwen to a consumer relief fund." said Ocwen President and CEO Ron Faris. “Ocwen's integration of the Homeward and ResCap servicing portfolios continues to meet or exceed expectations. The Homeward servicing portfolio transfer was completed in mid-April, and we expect that most of the transition-related expenses for Homeward have now been incurred. The first transfer of loans from the legacy ResCap platform to Ocwen's platform was completed on time in July. We expect to have all the non-prime loans, where most of the efficiency improvements are generated, transferred by early fall.” Ocwen generated a cash flow from operations of $475.1 million. After reducing this amount for the repayment of $179.6 million in related match funded debt, generated adjusted cash flow from operations of $295.5 million. "We believe that higher interest rates will have little negative impact on earnings, as we have only a modest component of income related to originations, and assets and debt are match funded. Higher employment and an improving housing market, on the other hand, should boost Ocwen's earnings,” said Erbey. “The majority of Ocwen's earnings come from our non-prime portfolio which produces higher earnings as employment and home price improvement result in lower delinquencies."