Altisource Q1 2021 Earnings Report
Key Takeaways
Altisource reported a decrease in service revenue by 58% compared to the first quarter of 2020, primarily due to COVID-19 pandemic related foreclosure and eviction moratoriums and borrower forbearance plans, and an MSR investor's instructions to Ocwen to transition field services, title and valuation referrals historically provided by Altisource to the MSR investor’s captive vendors. This decrease was partially offset by a 68% increase in revenue in our origination business.
Service revenue from our origination business grew by 68% in the first quarter of 2021.
Service revenue from customers other than Ocwen Financial Corporation, New Residential Investment Corp. and Front Yard Residential Corporation grew by 12% in the first quarter of 2021.
Entered into an agreement with Ocwen extending the term of the services agreements from August 2025 through August 2030.
Anticipate that 2021 cash operating costs (excluding outside fees and services) should be more than $20 million lower than the first quarter annualized costs
Altisource
Altisource
Forward Guidance
The company anticipates that demand for our default related business will begin to return in late 2021 and will stabilize in 2023. Following the stabilization, we believe our default business revenue could grow to between $243 million and $397 million based upon the 1.2% pre-pandemic delinquency rate and the 4.4% delinquency rate as of the end of 2020.