Ocwen Financial Corporation (NYSE:OCN) Q4 2022 Earnings Call Transcript

Eric Hagen: Yes. The difference, thanks. Yes. I’m just trying to tease apart the difference in ROE between MSR getting financed and MAV versus on your own balance sheet. And maybe you can talk about the liquidity to buy MSRs through MAV versus on your own balance sheet.

Glen Messina: Sure. So MAV definitely generates a high ROE for us because we commit less equity. So we’re a 15% owner of MAV. MAV, separate legal entity. We’re a minority owner, and MAV has access to a committed 250 million of additional capital provided by both us and Oaktree at that 85/15 split, 15 for us, 85 for Oaktree. And we think that’s more than adequate to support kind of MAVs near-term intentions. MAV financing is separate from ours but we’re very aware of their financing and so that kind of informs some of my earlier comments in terms of their ability to generate returns and obtain financing. They focus just on the GSEs currently. They don’t buy Ginnie Maes or PLS. But I would view them as a similar and still opportunistic buyer, but separate from Ocwen of course.

Eric Hagen: Got it. Thank you guys very much. I appreciate it.

Glen Messina: Thanks, Eric.

Operator: Thank you. There are no further questions at this time. I would now like to turn the floor back over to Glen Messina for closing comments.

Glen Messina: Thanks, Vernon. I’d like to thank our shareholders and key business partners for supporting our business. I’d also like to thank and recognize our board of directors and global business team for the hard work and commitment to our success. I look forward to updating everyone on our progress at our next quarter’s earnings call. Thank you.

Operator: This concludes today’s audio conference. You may disconnect your lines at this time. Thank you for participation and have a great day.