Quick Win by the Algorithm

Ocwen (OCN)

On July 29^th, 2016, the I Know First algorithm gave a bullish signal of 48.06 for the ticker OCN with a predictability indicator of 0.26. In accordance with the algorithm’s prediction OCN experienced a Quick Win by the Algorithm of a 68.51% increase in stock price in only 14 days.

Ocwen Financial Corporation, a financial services holding company, engages in servicing and origination of mortgage loans in the United States. Its Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate.

I Know First has been following OCN closely since mid-January when the algorithm accurately predicted that the stock would increase. The algorithm was right and OCN increased of 68.51% from July 29^th to August 12^th.

This increase can be attributed to the fact that Ocwen changed the organizational reporting of the master servicing operations to the chief investment officer from the chief servicing officer of the primary servicer operations, as well as replacing two senior managers that left the company with an internal “industry-experienced” vice president to oversee the day-to-day master servicing operations. Ocwen has also strengthened its internal control environment and reduced the number and criticality of internal audit findings.

Ocwen also continues to invest in staff, training, and technology to further develop its operations. The company’s executive and senior management appears focused on the continued improvement of Ocwen’s internal controls environment and loan servicing performance.