Home Loan Servicing Solutions, Ltd. Reports EPS of $0.44 and Net Income of $14.3 Million in the Fourth Quarter of 2012 and

Home Loan Servicing Solutions, Ltd. Reports EPS of $0.44 and Net Income of
$14.3 Million in the Fourth Quarter of 2012 and Declares Dividend of $0.13 Per
Ordinary Share for February and March 2013

GEORGE TOWN, Grand Cayman, Feb. 7, 2013 (GLOBE NEWSWIRE) -- Home Loan
Servicing Solutions, Ltd. ("HLSS" or the "Company") (Nasdaq:HLSS) today
reported net income of $14.3 million, or $0.44 per ordinary share, for the
fourth quarter of 2012.

Fourth quarter business performance highlights:

  *Earned $14.3 million, or $0.44 per ordinary share.
  *Declared October dividend of $0.11 per ordinary share and November and
    December dividends of $0.12 per ordinary share totaling $13.7 million for
    the quarter.
  *Completed in October the issuance of $250 million one-year and $450
    million three-year term notes secured by servicing advance receivables at
    a weighted average interest spread over LIBOR of 1.55%. The proceeds were
    used to repay $600 million in term notes and to reduce borrowing on
    variable funding notes with a weighted average interest spread of 2.93%.
  *Received gross proceeds of $480.7 million from the December 24 follow-on
    offering of 25,300,000 ordinary shares at $19.00 per share. Proceeds from
    the offering and two new variable funding notes with a total commitment of
    $1.6 billion were used to acquire non-agency mortgage servicing assets
    from Ocwen representing mortgages with an unpaid principle balance of
    $34.6 billion.
  *Earnings include a $0.03 per share benefit from lower than expected
    amortization resulting from the 13.3% annualized prepayment rate for the
    fourth quarter versus the benchmark rate of 15%. There was no change in
    servicing asset valuations during the fourth quarter.

Subsequent to the end of the fourth quarter of 2012:

  *On January 15, the Company's Board of Directors declared a monthly
    dividend of $0.12 per ordinary share for the month of January 2013.
  *On January 22, the underwriters exercised a portion of their
    over-allotment option from the December 24 offering of ordinary shares in
    the amount of 970,578 shares for which the Company received net proceeds
    of $17.6 million.
  *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%. The aggregate commitments on our variable
    funding notes were reduced from $2 billion to $1 billion.
  *On February 7, the Company's Board of Directors declared a monthly
    dividend of $0.13 per ordinary share for February and March 2013.

"Reflecting on our first year of operations, I believe that we have delivered
on our plan to provide our shareholders with earnings and dividends that are
particularly attractive given the stability and low risk of our assets which
the ABS markets are starting to reward," said Chairman William Erbey. "I am
pleased with the continued support of our equity and debt investors and look
forward to further growth in 2013."

"Our results in the fourth quarter exceeded our revised guidance as lower than
expected prepayments reduced amortization expense," said President John Van
Vlack. "We are pleased that the variations from our guidance in 2012 have all
been positive. Additionally, strong executions in the ABS term note market are
continuing to reduce our borrowing costs relative to our expectations."

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 (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.

Our income from operations as presented in our Management Reporting shown
below should be considered in addition to, and not as a substitute for, income
from operations determined in accordance with GAAP.

                                                             
For the three months ended     Condensed                        Management
December 31, 2012:             Consolidated      Adjustments    Reporting
                               Results (GAAP)                   (Non-GAAP)
Revenue                                                       
Servicing fee revenue         $ —               $60,599        $60,599
Interest income - notes        27,157            (27,157)       —
receivable – Rights to MSRs
Interest income – other       (173)             —              (173)
Related party revenue(1)      652               —              652
Total revenue                 27,636            33,442         61,078
                                                             
Operating expenses                                            
Compensation and benefits     1,069             —              1,069
Servicing expense             —                 27,080         27,080
Amortization of MSRs          —                 6,362          6,362
Related party expenses (2)    277               —              277
General and administrative     497               —              497
expenses
Total operating expenses      1,843             33,442         35,285
Income from operations         $25,793           $ —            $25,793
                                                             
(1) Revenue earned as part of our Professional Services Agreement with Ocwen.
(2) Expenses incurred as part of our Professional Services Agreement and
Administrative Agreement with Ocwen and Altisource, respectively.

                                                                  
HOME LOAN SERVICING SOLUTIONS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
(UNAUDITED)
                                                                  
                                                                  
                                       Three months       Twelve months
For the periods ended December 31,     2012       2011    2012       2011
Revenue                                                            
Interest income – notes receivable –    $27,157    $—     $54,699    $—
Rights to MSRs
Interest income – other                (173)      —       109        —
Total interest income                  26,984     —       54,808     —
Related party revenue                  652        —       2,316      —
Total revenue                          27,636     —       57,124     —
                                                                  
Operating expenses                                                 
Compensation and benefits              1,069      —       3,751      —
Related party expenses                 277        —       755        —
General and administrative expenses    497        191     1,644      273
Total operating expenses               1,843      191     6,150      273
Income (loss) from operations           25,793     (191)   50,974     (273)
                                                                  
Other expense                                                      
Interest expense                       11,550     —       24,057     —
Total other expense                    11,550     —       24,057     —
                                                                  
Income (loss) before income taxes      14,243     (191)   26,917     (273)
Income tax benefit/(expense)           103        —       (46)       —
Net income (loss)                       $14,346    $(191)  $26,871    $(273)
                                                                  
                                                                  
Earnings (loss) per share                                          
Basic                                  $0.44      $(9.55) $1.56      $(13.66)
Diluted                                $0.44      $(9.55) $1.56      $(13.66)
                                                                  
Weighted average ordinary shares                                   
outstanding
Basic                                  32,784,718 20,000  17,230,858 20,000
Diluted                                32,784,718 20,000  17,230,858 20,000
                                                                  
Dividends declared per share            $0.42      $0.00   $1.45      $0.00



HOME LOAN SERVICING SOLUTIONS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)

                                          December 31, 2012 December 31, 2011
Assets                                                      
Cash and cash equivalents                 $76,048         $283
Match funded advances                      3,098,198        —
Notes receivable – Rights to MSRs          303,705          —
Related party receivables                  28,271           —
Other assets                               79,091          2,860
Total assets                               $3,585,313      $3,143
                                                           
Liabilities and Equity                                      
Liabilities                                                 
Match funded liabilities                   $2,690,821      $—
Dividends payable                          6,706            —
Income taxes payable                       46               —
Related party payables                     2,874            1,487
Other liabilities                          4,233           1,647
Total liabilities                          2,704,680       3,134
                                                           
                                                           
Equity                                                      
Equity – Ordinary shares, $.01 par value;
200,000,000 and 5,000,000 shares
authorized; 55,884,718 and 20,000 shares   $559             $—
issued and outstanding at December 31,
2012 and December 31, 2011, respectively
Additional paid-in capital                 876,657          300
Retained earnings (accumulated deficit)    4,493            (291)
Accumulated other comprehensive income     (1,076)         —
(loss)
Total equity                               880,633         9
Total liabilities and equity               $3,585,313      $3,143

CONTACT: FOR FURTHER INFORMATION CONTACT:
         James E. Lauter
         Senior Vice President & Chief Financial Officer
         T: (561) 682-7561
         E: James.Lauter@hlss.com

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