Ocwen Financial Corporation

OCWEN FINANCIAL CORPORATION ANNOUNCES
ITS 1998 FOURTH QUARTER RESULTS WILL BE BELOW ANALYSTS’ ESTIMATES

West Palm Beach, FL – (January 14, 1999) Ocwen Financial Corporation (NYSE: OCN) announced today that its operating results for the 1998 fourth quarter and year ended December 31, 1998 will be below analysts’ estimates. The Company anticipates that its fourth quarter net earnings, prior to impairment charges on its securities available for sale (an investment portfolio including subordinate and residual mortgage-backed securities), losses on its investment in Ocwen Asset Investment Corp., as well as expenses related to the anticipated curtailment of its domestic subprime operations, will range between $19.5 million, or $0.32 per diluted share, to $24.5 million, or $0.40 per diluted share. For the nine months ended September 30, 1998, Ocwen reported net income of $9.4 million, or $0.15 per diluted share. For the nine months ended September 30, 1998, Ocwen had reported net earnings prior to impairment charges of $88.1 million, or $1.44 per diluted share.

The Company currently estimates that pre-tax impairment charges for the 1998 fourth quarter on its securities available for sale (an investment portfolio comprised of subordinate and residual mortgage-backed securities), losses on its investment in Ocwen Asset Investment Corp., as well as expenses related to the anticipated curtailment of its domestic subprime operations, could be as large as $50.0 million.

The Company expects to announce its 1998 fourth quarter results from operations the week of January 25, 1999 and will hold an analysts’ conference call at that time to discuss its results and ongoing operations.

Ocwen Financial Corporation is a $3.4 billion financial institution headquartered in West Palm Beach, Florida. The Company’s primary businesses are the acquisition, servicing, and resolution of subperforming and nonperforming residential and commercial mortgage loans. Additional information about Ocwen Financial Corporation is available at www.ocwen.com – OCN.

Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements may be identified by reference to a future period(s) or by the use of forward-looking terminology such as "anticipate," "estimate," "expect," "will," or future or conditional verb tenses. Actual results could differ materially from those indicated in such statements due to risks, uncertainties and changes with respect to a variety of factors, including, but not limited to, economic environments, government fiscal and monetary policies, interest or currency exchange rates, laws and regulations affecting financial institutions, real estate and foreign ownership, competitive products, pricing and conditions, credit, prepayment, basis, default, subordination and asset/liability risks, loan servicing effectiveness, allowances for loan losses, investment opportunities meeting OCN’s investment requirements, software integration, development, licensing and compliance, financial markets (including discount loan, mortgage and securitization markets), deteriorating asset values, availability of adequate and timely sources of liquidity, ability to repay or refinance indebtedness at maturity, other factors generally understood to affect the real estate and mortgage markets and securities investments, and other risks detailed from time to time in OCN’s reports and filings with the Securities and Exchange Commission, including its Registration Statements on Forms S-1 and S-3 and periodic reports on Forms 10-Q, 8-K and 10-K. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

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