Shares of Ocwen Financial Corp. OCN declined nearly 18% in the after-market trading, following the release of its first quarter 2016 results. Adjusted loss of 57 cents per share was wider than the Zacks Consensus Estimate of a loss of 48 cents.Ocwen Financial Corporation (OCN) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany A fall in servicing and sub-servicing fees pressured revenues, which remains a major concern. However, a reduction in operating expenses was a tailwind.Ocwen’s results were adversely impacted by several significant items. After including these, net loss was $111.2 million or 90 cents per share, as against net income of $34.4 million or 27 cents per share in the prior-year quarter.Performance in DetailTotal revenue slumped 35.2% year over year to $330.8 million. Lower servicing and sub-servicing fees and other revenues resulted in a reduction in revenues. Also, the figure lagged the Zacks Consensus Estimate of $354 million.Operating expenses fell 13.1% from the year-ago quarter to $328.7 million. All expense components, except professional services cost declined, reflecting the progress in ongoing cost improvement efforts.Net other expenses increased 16.8% year over year to $104.2 million, mainly due to lower net gains on sale of MSRs and interest income.As of Mar 31, 2016, Ocwen recorded a cash balance of $280.5 million, up from $257.3 million as of Dec 31, 2015. Total assets were $7.41 billion, up from $7.38 billion as of Dec 31, 2015.Our TakeOcwen’s initiatives to restructure its servicing portfolio and strengthen its balance sheet by reducing corporate debt are impressive. We believe the company will be able to suitably leverage the opportunities available for streamlining its servicing portfolios, going forward.However, we remain concerned about the impact of mounting compliance and monitoring expenses, apart from the endless regulatory probes into the company’s near-term financials.Currently, Ocwen carries a Zacks Rank #4 (Sell).Among other mortgage investment firms, Garrison Capital Inc. GARS is expected to report on May 3, while American Capital, Ltd. ACAS and Ares Capital Corporation ARCC will report on May 4.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OCWEN FINL CORP (OCN): Free Stock Analysis Report AMER CAP LTD (ACAS): Free Stock Analysis Report ARES CAP CP (ARCC): Free Stock Analysis Report GARRISON CAPITL (GARS): Free Stock Analysis Report To read this article on Zacks.com click here.