Ocwen Financial Corp's quarterly income from continuing operations beat market expectations, helped by higher revenue from process management fees and a fall in total operating expenses, and said it plans a $250 million stock offering.

Ocwen, which reduced its debt and increased cash on hand, also said it expects to participate in the Term Asset-Backed Securities Loan Facility program (TALF) beginning in September and anticipates replacing a $165 million amortizing note with a longer-term TALF note.

Income from continuing operations was 24 cents per share for the second quarter, ahead of analysts' average estimate of 22 cents a share.

Ocwen posted a net income of $17.8 million, or 26 cents per share, for the quarter, compared with a net loss of $2.7 million, or 4 cents a share, in the year-ago period.

However, total revenue for the subprime mortgage servicing company fell 17 percent to $109.1 million from a year ago, while total operating expenses fell 11 percent to $72.7 million.

Process management revenue rose 46 percent to $40 million.

The company said net proceeds from the common stock offering will be used for general corporate purposes, including acquisitions and working capital.

J.P. Morgan Securities Inc, Barclays Capital Inc and Wells Fargo Securities LLC, are acting as joint book-running managers for the offering.

Shares of the West Palm Beach, Florida-based company closed at $14.15 Monday on the New York Stock Exchange.

(Reporting by Brenton Cordeiro in Bangalore; Editing by Gopakumar Warrier)