This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Home Loan Servicing Solutions, Ltd. Reports EPS Of $0.44 And Net Income Of $24.8 Million In The First Quarter Of 2013 And Declares Dividend Of $0.14 Per Ordinary Share For April, May And June 2013

Stocks in this article: HLSS

GEORGE TOWN, Grand Cayman, April 18, 2013 (GLOBE NEWSWIRE) -- Home Loan Servicing Solutions, Ltd. ("HLSS" or the "Company") (Nasdaq:HLSS) today reported net income of $24.8 million, or $0.44 per ordinary share, for the first quarter of 2013. Additionally, the Company's Board of Directors today declared a monthly dividend of $0.14 per ordinary share for the months of April, May and June 2013.

"Despite continued low mortgage interest rates and modest improvement in the housing market, the trend toward lower prepayment speeds for HLSS' portfolio, which started in the middle of last year, has continued in the first quarter of this year," said Chairman William Erbey. "Our outlook on prepayment speeds for this portfolio has become increasingly positive fueled in part by Ocwen's continued success in resolving delinquent loans. This was certainly a factor in the Board's decision to increase our dividend to $0.14 per share for the second quarter of 2013."

"First quarter results were in line with our expectations after accounting for the benefit from lower than expected prepayments and amortization and the timing of the first quarter flow purchase from Ocwen," said President John Van Vlack. "Stable prepayment rates and access to long-term financing in the ABS market give us even greater visibility into our future earnings."

First quarter business performance highlights include:

  • On January 22, completed the issuance of $650 million one-year, $350 million three-year and $150 million five-year term notes secured by servicing advance receivables at a weighted average interest spread over LIBOR of 0.94%. Total proceeds of $1.15 billion were used to reduce borrowings on variable funding notes with a weighted average interest rate of one-month LIBOR plus 2.32%. Concurrent with this issuance, the aggregate commitment on our variable funding notes was reduced from $2 billion to $1 billion.
  • On March 13, completed the flow acquisition of mortgage servicing assets related to non-agency mortgage loans with UPB of $15.9 billion from Ocwen Financial Corporation ("Ocwen") (NYSE:OCN) resulting in UPB of $92.5 billion as of March 31, 2013. Concurrent with this acquisition, the aggregate commitment on our variable funding notes was increased from $1.0 billion to $1.3 billion.
  • Earnings included a $0.03 per share benefit from lower than expected amortization resulting from the 12.7% annualized prepayment rate for the first quarter versus the benchmark rate of 15%. 
  • There was no change in servicing asset valuation during the quarter.

For more information on prior releases and SEC Filings, please refer to the "Shareholders" section of our website at www.hlss.com .

Home Loan Servicing Solutions, Ltd. ("HLSS") is an internally-managed owner of non-agency mortgage servicing assets with historically stable valuations and cash flows.  HLSS' assets are predominately mortgage servicing advances that, along with the related servicing rights, are over-collateralized 23 times by residential real estate. HLSS' objective is to generate stable, recurring fee-based earnings and dividends throughout the economic cycle. For more information, visit www.hlss.com .

This news 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. Forward-looking statements are not guarantees of future performance, and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: general economic and market conditions, prevailing interest rates, governmental regulations and policies, availability of adequate and timely sources of liquidity, our ability to maintain our PFIC status, real estate market conditions and other risks detailed in HLSS' reports and filings with the Securities and Exchange Commission. The forward looking statements speak only as of the date they are made and should not be relied upon. HLSS' undertakes no obligation to update or revise the forward-looking statements.

The following table presents our condensed consolidated results of operations in accordance with U.S. GAAP reconciled to our internally reported financial results. Accordingly, adjustments are made to reflect Servicing fee revenue, Servicing expense and Amortization expense on a gross rather than a net basis.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,562.92 +163.25 1.00%
S&P 500 1,929.85 +25.84 1.36%
NASDAQ 4,389.81 +73.7360 1.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs