View Filing Data

481,081

256,346

123,907

Other income (expense)

8,329

8,876

10,859

Gain (loss) on trading securities

(223,455)

(132,770)

(85,923)

(7,968)

Loss on loans held for sale, net

(3,364)

(4,529)

(5,865)

Equity in earnings (losses) of unconsolidated entities

114

(746)

1,371

Other, net

(5,197)

(4,182)

2,773

Other expense, net

(223,573)

(133,351)

(84,753)

Income from continuing operations before income taxes

257,508

122,995

39,154

Income from continuing operations

76,585

44,672

5,545

180,923

78,323

33,609

Income from discontinued operations, net of income taxes

4,383

Net loss (income) attributable to non-controlling interests

180,923

78,323

37,992

(8)

Net income attributable to Ocwen stockholders

180,923

78,331

37,984

Preferred stock dividends

(145)

Net income attributable to Ocwen common stockholders

$ 180,778

$ 78,331

$ 37,984

Basic earnings per share

Income from continuing operations (in Dollars per share)

$ 1.35

$ 0.75

$ 0.34

Income from discontinued operations (in Dollars per share)

0.04

Net income attributable to Ocwen common stockholders (in Dollars per share)

1.35

0.75

0.38

Diluted earnings per share

Income from continuing operations (in Dollars per share)

1.31

0.71

0.32

Income from discontinued operations (in Dollars per share)

0.04

Net income attributable to Ocwen common stockholders (in Dollars per share)

$ 1.31

$ 0.71

$ 0.36

Weighted average common shares outstanding

Basic (in Shares)

133,912,643

104,507,055

100,273,121

Diluted (in Shares)

138,521,279

111,855,961

107,483,015

[1]

Depreciation and amortization expense are as follows: Servicing Lending Corporate Items and Other Business Segments Consolidated For the year ended December 31, 2012: Depreciation expense $1,469 $8 $4,243 $5,720 Amortization of MSRs 72,897 - - 72,897 Amortization of debt discount 3,259 - - 3,259 Amortization of debt issuance costs - SSTL 3,718 - - 3,718 For the year ended December 31, 2011: Depreciation expense $2,410 $- $1,750 $4,160 Amortization of MSRs 42,996 - - 42,996 Amortization of debt discount 8,853 - - 8,853 Amortization of debt issuance costs - SSTL 9,764 - - 9,764 For the year ended December 31, 2010: Depreciation expense $5,916 $- $1,596 $7,512 Amortization of MSRs 31,455 - - 31,455 Amortization of debt discount 5,217 - 172 5,389 Amortization of debt issuance costs - SSTL 2,086 - - 2,086

[2]

Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Other comprehensive income (loss), net of income taxes:

$ 180,923

$ 78,323

$ 37,992

Unrealized foreign currency translation gain (loss) arising during the year (1)

^[1]

(58)

^[1]

Change in deferred gain (loss) on cash flow hedges arising during the year (2)

^[2]

(5,303)

589

(9,335)

Reclassification adjustment for losses on cash flow hedges included in net income (3)

^[3]

6,753

890

Net change in deferred loss on cash flow hedges

1,450

1,479

(9,239)

Other (4)

^[4]

Total other comprehensive income (loss), net of income taxes

1,455

1,505

(9,277)

Comprehensive income

182,378

79,828

28,715

Comprehensive (income) loss attributable to non-controlling interests

(1)

Comprehensive income attributable to Ocwen stockholders

$ 182,378

$ 79,827

$ 28,721

[1]	Net of tax benefit (expense) of $(7) and $26 for 2011 and 2010, respectively.
[2]	Net of tax benefit (expense) of $3,012, $(340) and $5,251 for 2012, 2011 and 2010, respectively.
[3]	Net of tax expense of $3,798, $503 and $54 for 2012, 2011 and 2010, respectively.
[4]	Net of tax benefit of $3, $3 and $12 for 2012, 2011 and 2010, respectively.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income tax expense		$ (7)	$ 26
Income tax benefit	$ 3,012	(340)	5,251
Income tax expense	3,798	503	54
Income tax expense	$ 3	$ 3	$ 12

Amount of tax effect, net of reclassification adjustments, on the result from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32211-110900

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e640-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 31
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 23, 24, 25, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Tax effect of the income statement impact of the reclassification adjustment of accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges realized in net income. Also includes reclassification adjustments of an entity's share of an equity investee's deferred hedging gain (loss) realized in net income.

Significant Accounting Policies [Text Block]

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Stock [Member] OCN Stockholders [Member]	Additional Paid-in Capital [Member] OCN Stockholders [Member]	Retained Earnings [Member] OCN Stockholders [Member]	Accumulated Other Comprehensive Income (Loss) [Member] OCN Stockholders [Member]	Noncontrolling Interest [Member] OCN Stockholders [Member]	Total
Cumulative effect of adoption of ASC 810 (FASB Statement No. 167), net of tax			$ 2,274			$ 2,274
Balance at at Dec. 31, 2010	$ 1,007	$ 467,500	445,456	$ (9,392)	$ 246	904,817
Balance at (in Shares) at Dec. 31, 2010	100,726,947
Net income (loss)			78,331		(8)	78,323
Issuance of common stock	$ 288	354,157				354,445
Issuance of common stock (in Shares)	28,750,000
Exercise of common stock options	$ 4	1,269				1,273
Exercise of common stock options (in Shares)	410,977
Equity-based compensation		3,195				3,195
Equity-based compensation (in Shares)	11,364
Distribution to non-controlling interest holder					(247)	(247)
Other comprehensive income (loss)				1,496	$ 9	1,505
Balance at at Dec. 31, 2011	$ 1,299	826,121	523,787	(7,896)		$ 1,343,311
Balance at (in Shares) at Dec. 31, 2011	129,899,288					129,899,288
Net income (loss)			180,923			$ 180,923
Discount – Preferred stock beneficial conversion feature		8,688				8,688
Preferred stock dividend			(145)			(145)
Conversion of 3.25% Convertible Notes	$ 46	56,364				56,410
Conversion of 3.25% Convertible Notes (in Shares)	4,635,159
Exercise of common stock options	$ 11	6,276				6,287
Exercise of common stock options (in Shares)	1,082,944
Equity-based compensation		14,493				14,493
Equity-based compensation (in Shares)	20,541
Other comprehensive income (loss)				1,455		1,455
Balance at at Dec. 31, 2012	$ 1,356	$ 911,942	$ 704,565	$ (6,441)		$ 1,611,422
Balance at (in Shares) at Dec. 31, 2012	135,637,932					135,637,932

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Match funded advances
Fair value of assets acquired
Other Assets	$ (2,266,882,000)	$ (2,468,137,000)	$ (1,063,180,000)
Mortgage Servicing Rights [Member]
Fair value of assets acquired
Other Assets	(358,119,000)	(144,314,000)	(84,324,000)
Servicing Liabilities [Member]
Fair value of liabilities assumed
Other Liabilities		8,972,000	709,000
Checks Held for Escheat [Member]
Fair value of liabilities assumed
Other Liabilities	16,418,000	3,939,000	4,616,000
Cash Paid [Member]
Fair value of liabilities assumed
Business Acquisition, Cash Paid	(603,724,000)	(2,670,491,000)	(1,167,122,000)
Cash Paid Net [Member]
Fair value of liabilities assumed
Business Acquisition, Cash Paid	(524,213,000)	(2,646,700,000)	(1,167,122,000)
Net income	180,923,000	78,323,000	37,992,000
Amortization of mortgage servicing rights	72,897,000	42,996,000	31,455,000
Amortization of debt discount	3,259,000	8,853,000	5,389,000
Amortization of debt issuance costs – senior secured term loan	3,718,000	9,764,000	2,086,000
Depreciation	5,720,000	4,160,000	7,512,000
Write-off of investment in commercial real estate property			3,000,000
Provision for (reversal of) valuation allowance on mortgage servicing assets	88,000	(574,000)	(90,000)
Loss on trading securities			7,968,000
Loss on loans held for sale, net	3,364,000	4,529,000	5,865,000
Loss on deconsolidation of variable interest entities	3,167,000
Equity in losses (earnings) of unconsolidated entities	(114,000)	746,000	(1,371,000)
Realized and unrealized losses on derivative financial instruments	4,294,000	7,426,000	133,000
Loss (gain) on extinguishment of debt	2,167,000	(3,651,000)	(152,000)
Decrease (increase) in deferred tax assets, net	62,393,000	29,898,000	(7,764,000)
Net cash provided by trading activities			239,555,000
Net cash provided by loans held for sale activities	67,172,000	1,468,000	1,771,000
Decrease in advances and match funded advances	1,443,643,000	842,545,000	447,219,000
Decrease (increase) in receivables and other assets, net	(53,870,000)	(36,452,000)	(48,468,000)
Increase (decrease) in servicer liabilities	1,750,000	(1,196,000)	(36,180,000)
Increase (decrease) in other liabilities	(4,343,000)	(15,470,000)	24,637,000
Other, net	19,626,000	8,780,000	6,987,000
Net cash provided by operating activities	1,815,854,000	982,145,000	727,544,000
Cash Paid to Acquire Business	(524,213,000)	(2,646,700,000)	(1,167,122,000)
Investment in unconsolidated entities		(15,340,000)
Distributions of capital from unconsolidated entities	3,226,000	2,415,000	3,542,000
Purchase of mortgage servicing rights, net	(180,039,000)		(23,425,000)
Proceeds from sale of beneficial interest in consolidated variable interest entities	3,020,000
Acquisition of advances in connection with the purchase of mortgage servicing rights	(1,920,437,000)		(528,882,000)
Proceeds from sale of advance financing subsidiary and special purpose entity	76,334,000
Proceeds from sale of match funded advances	2,824,645,000
Additions to premises and equipment	(19,217,000)	(3,822,000)	(3,821,000)
Purchase of real estate	(6,501,000)
Proceeds from sales of real estate	1,701,000	1,678,000	2,434,000
Decrease in restricted cash – for securitization investors	103,000	52,000	1,028,000
Principal payments received on loans – restricted for securitization investors	3,230,000	5,250,000	5,616,000
Proceeds from sale of investments in affordable housing projects		929,000	6,036,000
Other	1,018,000	420,000	888,000
Net cash provided by (used in) investing activities	262,870,000	(2,655,118,000)	(1,703,706,000)
Proceeds from (repayment of) match funded liabilities	(1,665,330,000)	1,076,422,000	1,016,838,000
Repayment of secured borrowings – owed to securitization investors	(6,080,000)	(9,382,000)	(9,346,000)
Proceeds from lines of credit and other secured borrowings	204,784,000	563,500,000	448,316,000
Repayments of lines of credit and other secured borrowings	(822,137,000)	(281,768,000)	(263,442,000)
Payment of debt issuance costs – senior secured term loan	(1,052,000)	(13,147,000)	(10,689,000)
Proceeds from sale of mortgage servicing rights accounted for as a financing	320,381,000
Repayment of investment line			(156,968,000)
Redemption of 10.875% Capital Securities	(26,829,000)		(11,659,000)
Issuance of common stock		354,445,000
Exercise of common stock options	6,005,000	1,483,000	3,146,000
Other	(12,570,000)	(2,142,000)	(3,157,000)
Net cash (used in) provided by financing activities	(2,002,828,000)	1,689,411,000	1,013,039,000
Net increase in cash	75,896,000	16,438,000	36,877,000
Cash at beginning of year	144,234,000	127,796,000	90,919,000
Cash at end of year	220,130,000	144,234,000	127,796,000
Interest paid	219,825,000	128,947,000	88,354,000
Income tax payments, net	37,199,000	29,461,000	6,756,000
Conversion of 3.25% Convertible Notes to common stock	56,410,000
Cash	(79,511,000)	(23,791,000)
Loans held for sale	(558,721,000)	(20,633,000)
Other Assets	(62,371,000)	(4,888,000)	(7,957,000)
	(3,759,883,000)	(2,701,946,000)	(1,174,999,000)
Deferred tax assets	(47,346,000)
Premises and equipment	(16,803,000)	(3,386,000)	(6,728,000)
Goodwill	(300,843,000)	(57,430,000)	(12,810,000)
Debt service accounts	(69,287,000)
Match funded liabilities	1,997,459,000
Lines of credit and other secured borrowings	864,969,000
Accrued expenses and other liabilities	115,313,000	18,544,000	4,001,000
Total consideration	(765,724,000)	(2,670,491,000)	(1,165,673,000)
Issuance of preferred stock as consideration	162,000,000
Amount due from seller for purchase price adjustments			$ (1,449,000)
Business Acquisition, Cash Paid	22,000,000
Less cash acquired	$ 79,511,000	$ 23,791,000

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Ocwen Financial Corporation (NYSE: OCN) (Ocwen or OCN) is a financial services holding company which, through its subsidiaries, is engaged in the servicing and origination of mortgage loans. Ocwen is headquartered in Atlanta, Georgia with offices in Florida, Texas, New Jersey, United States Virgin Islands (USVI) and Washington, DC and support operations in India and Uruguay. Ocwen is a Florida corporation organized in February 1988. Ocwen Loan Servicing, LLC (OLS), a wholly-owned subsidiary, is licensed to service mortgage loans in all 50 states, the District of Columbia and two U.S. territories.

At December 31, 2012, Ocwen directly or indirectly owned all of the outstanding stock of its primary operating subsidiaries: OLS, Ocwen Financial Solutions Private Limited, Ocwen Mortgage Servicing, Inc. (OMS) and Homeward Residential Holdings, Inc. (Homeward). OMS is a corporation formed on February 27, 2012 under the laws of the USVI and is a wholly owned subsidiary of OCN. OMS has its principal place of business in St. Croix, USVI. As disclosed below, we acquired Homeward, a Delaware corporation, through a merger transaction which closed on December 27, 2012.

Ocwen also holds a 49% equity interest in Correspondent One S.A. (Correspondent One), an entity formed with Altisource Portfolio Solutions S.A. (Altisource) in March 2011, a 26% interest in Ocwen Structured Investments, LLC (OSI) and an approximate 25% interest in Ocwen Nonperforming Loans, LLC (ONL) and Ocwen REO, LLC (OREO). The assets of ONL and OREO were liquidated to cash, and the entities were subsequently dissolved in December 2012. As part of the Homeward Acquisition, we acquired a 69.79% equity interest in Powerlink Settlement Services, LP.

On December 27, 2012, Ocwen completed the merger by and among Ocwen, O&H Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Ocwen, Homeward and WL Ross & Co. LLC, a Delaware limited liability company as shareholder representative, pursuant to which O&H Acquisition Corp. merged with and into Homeward with Homeward continuing as the surviving corporation and becoming a wholly-owned subsidiary of Ocwen (the Homeward Acquisition). Homeward engages in the servicing of residential mortgage loans, the majority of which are nonprime, and also originates prime loans.

On September 1, 2011, Ocwen completed its acquisition (the Litton Acquisition) of (i) all the outstanding partnership interests of Litton Loan Servicing LP (Litton), a subsidiary of The Goldman Sachs Group, Inc. (Goldman Sachs) and a provider of servicing and subservicing of primarily non-prime residential mortgage loans and (ii) certain interest-only servicing securities previously owned by Goldman Sachs & Co., also a subsidiary of Goldman Sachs (collectively referred to as the Litton Loan Servicing Business).

On September 1, 2010, Ocwen, through OLS, completed its acquisition (the HomEq Acquisition) of the U.S. non-prime mortgage servicing business within Barclays Bank PLC known as “HomEq Servicing” including, but not limited to, the mortgage servicing rights and associated servicer advances of the business as well as the servicing platforms.

See Note 2 for additional information regarding the Homeward Acquisition, Litton Acquisition and HomEq Acquisition.

Principles of Consolidation

Our financial statements include the accounts of Ocwen, its majority-owned subsidiaries and any variable interest entity (VIE) where we have determined that Ocwen is the primary beneficiary. We apply the equity method of accounting to investments when the entity is not a VIE, and we are able to exercise significant influence, but not control, over the policies and procedures of the entity but own 50% or less of the voting securities. We account for our investments in OSI, ONL, OREO and Correspondent One using the equity method. We have eliminated intercompany accounts and transactions in consolidation.

Variable Interest Entities

We evaluate each special purpose entity (SPE) for classification as a VIE. When an SPE meets the definition of a VIE and we determine that Ocwen is the primary beneficiary, we include the SPE in our consolidated financial statements.

We have determined that the SPEs created in connection with the match funded financing facilities discussed below are VIEs of which we are the primary beneficiary. We also determined that we were the primary beneficiary for four residential mortgage loan securitization trusts.

Securitizations and Asset Backed Financing Arrangements

Ocwen or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. We have continuing involvement with the financial assets of five of the securitizations and nine of the asset-backed financing arrangements. We have aggregated these securitizations and asset-backed financing arrangements into two groups: (1) securitizations of residential mortgage loans and (2) financings of advances on loans serviced for others.

Securitizations of Residential Mortgage Loans. In prior years, we securitized residential mortgage loans using certain trusts. We accounted for these transactions as sales even though we continued to be involved with the trusts, typically by acting as the servicer or sub-servicer for the loans held by the trust and by retaining a beneficial ownership interest in the trust. The beneficial interests that we held consisted of both subordinate and residual securities that were either retained at the time of the securitization or subsequently acquired. We held beneficial interests in five of these trusts. We also acquired residual and subordinated interests in six additional trusts where we were not the transferor but were the servicer.

Effective January 1, 2010, as a result of our adoption of Accounting Standards Update (ASU) No. 2009-16 (Accounting Standards Codification (ASC) 860, Transfers and Servicing) and ASU 2009-17 (ASC 810, Consolidation), we included four of these eleven trusts in our consolidated financial statements because we determined that our involvement represented a variable interest and that we were the primary beneficiary of the trusts. We did not consolidate the remaining trusts because our involvement did not represent a variable interest. In December 2012, we sold the beneficial interests that we held in the four consolidated securitization trusts. We then deconsolidated the trusts and recognized a loss of $3,167. We also sold our retained interests in two of the unconsolidated trusts.

The beneficial interests that we hold in the five remaining unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2012, we had no other significant assets in our consolidated financial statements related to these trusts. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Ocwen. The general creditors of Ocwen have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the mortgage servicing rights (MSRs) that are related to the trusts and the advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 6 and Note 8 or additional information regarding Advances and Mortgage servicing rights.

Financings of Advances on Loans Serviced for Others. Match funded advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because the transfers do not qualify for sales accounting treatment or because Ocwen is the primary beneficiary of the SPE.

These SPEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of our advance facility agreements. We classify the transferred advances on our Consolidated Balance Sheet as Match funded advances and the related liabilities as Match funded liabilities. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Ocwen. OLS had previously guaranteed the payment of obligations under the securitization documents of one of the entities; however, in September 2012, the notes outstanding under this facility were repaid, and the facility was terminated. The assets and liabilities of the advance financing SPEs are comprised solely of Match funded advances, Debt service accounts, Match funded liabilities and amounts due to affiliates. Amounts due to affiliates are eliminated in consolidation.

See Note 7, Note 11 and Note 13 for additional information regarding Match funded advances, Debt service accounts and Match funded liabilities.

Reclassification

As disclosed above, following our sale of the retained beneficial interests in December 2012, we deconsolidated the four securitization trusts that we began including in our consolidated financial statements effective January 1, 2010. As a result, we have made the following reclassifications within the assets and liabilities sections of the Consolidated Balance Sheet at December 31, 2011:

	•	Reclassified Restricted cash – for securitization investors balance of $675 to Other assets;
	•	Reclassified Loans, net – restricted for securitization investors balance of $58,560 to Other assets; and

•

Reclassified Secured borrowings – owed to securitization investors balance of $53,323 to Other liabilities to conform to the December 31, 2012 presentation.

In addition, within the assets section of the Consolidated Balance Sheet at December 31, 2011, we:

	•	Reclassified Debt service accounts from Other assets to a separate line item; and
	•	Reclassified Loans held for sale, at lower of cost or fair value balance of $20,633 to Other assets.

Cash

Cash includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less.

Trading Securities

Trading securities includes other investments with original maturities of three months or less that we do not treat as cash equivalents.

We account for investments in auction rate, investment grade, residual and subordinate securities as trading securities at fair value. We report changes in fair value in gain (loss) on trading securities in the period of the change. We determine fair value based either on third party dealer quotations, where available, or on internal values determined using market based assumptions.

We recognize interest income on subordinate and residual securities through an “effective yield” method with changes in expected future cash flows reflected in the yield on a prospective basis. We adjust the prospective yield each time the estimates of expected future cash flows change or the actual cash flows differ from projections. We use the newly calculated yield in the accrual of interest income for subsequent reporting periods.

At December 31, 2012, our investment in trading securities was $0.

Loans Held for Sale

As part of the Homeward Acquisition, we acquired Homeward’s prime residential loan origination platform. These loans are originated or purchased and held until sold to secondary market investors. The loans are typically warehoused for a period after origination or purchase before they are sold into the secondary market, primarily to Government Sponsored Enterprises (GSEs). The servicing rights and servicing obligations of mortgage loans are generally retained upon sale into the secondary market. We elected to measure these loans at fair value on a recurring basis. At each reporting date, we measure the loans at fair value and report changes in fair value in earnings in the period in which the changes occur.

We account for all other residential mortgage loans that we do not intend to hold to maturity at the lower of cost or fair value computed on an aggregate basis. We account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in gain (loss) on loans held for sale, net, in the period in which the change occurs.

We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent greater than 89 days or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse interest accrued but not received. We return loans to accrual status only when we reinstate the loan and have no significant uncertainty as to collectibility.

Mortgage Servicing Rights

MSRs are an intangible asset representing the right to service a portfolio of mortgage loans. We generally obtain MSRs through asset purchases or business combination transactions. We also retain servicing rights on originated loans when they are sold in the secondary market.

An agreement between the various parties to a mortgage securitization transaction typically specifies the rights and obligations of the holder of the MSRs which include guidelines and procedures for servicing the loans. Two examples of these guidelines and procedures include remittance and reporting requirements. Assets serviced for others are not included on our balance sheet.

Custodial accounts, which hold funds representing collections of principal and interest we receive from borrowers (float balances), are held in escrow by an unaffiliated bank and excluded from our Consolidated Balance Sheet.

All newly acquired MSRs are initially measured at fair value. Subsequent to acquisition, we account for MSRs using the amortization method or the fair value measurement method, based on our strategy for managing the risks of the underlying portfolios. For certain of the servicing assets we acquired in the Homeward Acquisition, we manage the effects of interest rate risk with derivative financial instruments. We elected to account for this class of servicing assets using the fair value measurement method. We recognize a servicing liability for those agreements that are not expected to compensate us adequately for performing the servicing.

For servicing assets or liabilities that we account for using the amortization method, we amortize the balances in proportion to and over the period of estimated net servicing income (if servicing revenues exceed servicing costs) or net servicing loss (if servicing costs exceed servicing revenues). We assess servicing assets or liabilities for impairment or increased obligation based on fair value at each reporting date. We determine estimated net servicing income using the estimated future balance of the underlying mortgage loan portfolio, which, absent new purchases, declines over time from prepayments and scheduled loan amortization. We adjust amortization prospectively in response to changes in estimated projections of future cash flows. We perform an impairment analysis based on the difference between the carrying amount and estimated fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans and recognize any impairment through a valuation allowance. We adjust the valuation allowance to reflect subsequent changes in the measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum, however, is not recognized.

For servicing assets or liabilities that we account for at fair value on a recurring basis, we measure the balances at fair value at each reporting date and report changes in fair value in earnings in the period in which the changes occur.

Mortgage Servicing Fees and Advances

We earn fees for servicing mortgage loans. We collect servicing fees, generally expressed as a percent of unpaid principal balance (UPB) from the borrowers’ payments. We also include late fees, prepayment penalties, float earnings and other ancillary fees in servicing income. We recognize servicing fees as revenue when the fees are earned which is generally when the borrowers’ payments are collected or when loans are modified or liquidated through the sale of the underlying real estate collateral or otherwise.

During any period in which the borrower does not make payments, most of our servicing agreements require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing contract. Each servicing contract is associated with specific loans, identified as a pool.

When we make an advance on a loan under each servicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from investors, for foreclosed loans. Most of our servicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans, which are the subject of that servicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds.

We record a charge to earnings to the extent that we believe advances are uncollectible under the provisions of each servicing contract taking into consideration historical loss and delinquency experience, length of delinquency and the amount of the advance. However, we are generally only obligated to advance funds to the extent that we believe the advances are recoverable from expected proceeds from the loan. We assess collectibility using proprietary cash flow projection models which incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, time to a foreclosure sale, estimated costs of foreclosure action, future property tax payments and the value of the underlying property net of carrying costs, commissions and closing costs.

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired.

We test goodwill for impairment annually or sooner if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Effective with our adoption of ASU 2011-08 (ASC 350, Intangibles – Goodwill and Other): Testing Goodwill for Impairment in the fourth quarter of 2011, we have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not (defined as having a likelihood of more than 50 percent) less than the carrying value, a two-step quantitative test is required. Otherwise, no further testing is required. Factors that we consider in the qualitative assessment include general economic conditions, conditions of the industry and market in which we operate, regulatory developments, cost factors and our overall financial performance.

In the first step of the two-step quantitative assessment, we compare the fair value of the reporting unit with its net carrying value, including goodwill. If the net carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of impairment loss, if any. The second step requires allocation of the reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill.

In performing the quantitative two-step impairment analysis for goodwill, we use an approach based on the fair value of the assets and liabilities. We perform this analysis using projections of future income discounted at a market rate. The determination of market discount rates is subjective and could vary based on the nature of the underlying business, stage of development and revenue to date. The projections of future cash flows and assumptions concerning future operating performance and economic conditions may differ from actual results.

We perform our annual impairment test of goodwill as of August 31^st of each year. Based on our 2012 annual assessment, we determined that goodwill was not impaired.

Premises and Equipment

We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on the straight-line method as follows:

	Computer hardware and software	2 – 3 years
	Leasehold improvements	Term of the lease not to exceed useful life

	Furniture and fixtures	5 years
	Office equipment	5 years

Investment in Unconsolidated Entities

We account for our investments in unconsolidated entities using the equity method. These investments include both entities in which we hold a significant, but less than controlling, ownership interest and VIEs in which we are not deemed to be the primary beneficiary. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that any other-than-temporary decline in value may have occurred. We stop recording our share of investee losses if our share of losses reduces our investment to zero unless we have guaranteed the obligations of or are otherwise committed to provide further financial support to the investee. If the investee subsequently reports net income, we will only continue to record our share of the net income after our share of net income equals the share of net losses not recognized during the periods that the recording of losses was suspended.

Litigation

We monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish reserves for settlements, judgments on appeal and filed and/or threatened claims for which we believe it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize our legal costs associated with loss contingencies as they are incurred.

Derivative Financial Instruments

We recognize all derivatives on our consolidated balance sheet at fair value. On the date we enter into a derivative contract, we designate and document each derivative contract as one of the following at the time the contract is executed: (a) a hedge of a recognized asset or liability (fair value hedge); (b) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); (c) a hedge of a net investment in a foreign operation; or (d) a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, the documentation must include the risk management objective and strategy. We assess and document quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, we use statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. For a fair value hedge, we record changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations. For a cash flow hedge, to the extent that it is effective, we record changes in the estimated fair value of the derivative in other comprehensive income. We subsequently reclassify these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, we report changes in the fair values in current period Other income (expense), net.

If a derivative instrument in a cash flow hedge is terminated or the hedge designation is removed, we reclassify related amounts in accumulated other comprehensive income into earnings in the same period or periods during which the cash flows that were hedged affect earnings. In a period where we determine that it is probable that a hedged forecasted transaction will not occur, such as variable-rate interest payments on debt that has been repaid in advance, any related amounts in accumulated other comprehensive income are reclassified into earnings in that period.

The cash collateral held by counterparties to our derivative agreements is included in Other assets.

Match Funded Liabilities, Lines of Credit and Other Secured Borrowings

Match funded liabilities, lines of credit and other secured borrowings are collateralized by specific assets. Under the terms of these borrowing agreements, we are subject to various qualitative and quantitative covenants. Collectively, these covenants include:

	•	Specified net worth requirements
	•	Restrictions on future indebtedness
	•	Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain borrowing agreements

We believe that we are currently in compliance with these covenants.

Aggregate long-term borrowings by maturity date are set forth below:

	Expected Maturity Date at December 31, 2012 (1)
	2013		2014		2015		2016		2017		There- after		Total Balance		Fair Value
Match funded liabilities:
Fixed rate	$	1,348,999	$	299,278	$	—	$	—	$	—	$	—	$	1,648,277	$	1,648,810
Variable rate		495,592		388,876		—		—		—		—		884,468		884,468
Lines of credit and other borrowings (2)		774,508		—		18,466		—		—		—		792,974		797,799
	$	2,619,099	$	688,154	$	18,466	$	—	$	—	$	—	$	3,325,719	$	3,331,077

(1)	For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.
(2)	Excludes the liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability.

The interest rate for 1-Month LIBOR was 0.21% and 0.30%, respectively, at December 31, 2012 and 2011. See Note 13, Note 14 and Note 15 for additional information regarding the terms of our borrowings.

Foreign Currency Translation

Where the functional currency is not the U.S. dollar, we translate assets and liabilities of foreign entities into U.S. dollars at the current rate of exchange existing at the balance sheet date, while revenues and expenses are translated at average monthly exchange rates. We report the resulting translation adjustments as a component of accumulated other comprehensive income in stockholders’ equity. Where the functional currency of a foreign entity is the U.S. dollar, re-measurement adjustments of foreign-denominated amounts are included in the results of operations.

Income Taxes

We file consolidated federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return.

We account for income taxes using the asset and liability method which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense.

Basic and Diluted Earnings per Share

We calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of the outstanding options to purchase common stock using the treasury stock method. The computation of diluted earnings per share also includes the potential shares of converted common stock associated with our Series A Perpetual Convertible Preferred Stock and our Convertible Notes using the if-converted method.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly significant in the near or medium term relate to fair value measurements, the provision for potential losses that may arise from litigation proceedings, the amortization of MSRs and the valuation of loans held for sale, goodwill and deferred tax assets.

Stock-Based Compensation

We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. For stock option awards with a service condition, we recognize the cost of the awards as compensation expense ratably over the vesting period. For stock options awarded with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from a lattice (binomial) options pricing model. When options with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period.

Recent Accounting Pronouncements

ASU 2011-03 (ASC 860, Transfers and Servicing): Reconsideration of Effective Control for Repurchase Agreements. Repurchase agreements are accounted for as secured borrowings (and therefore not as sales) if the transferor has not surrendered control over the transferred assets. The amendments in this ASU remove from the assessment of effective control the criterion relating to the transferor’s ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. Consequently, the amendments in this update also eliminate the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. The effect of these amendments is to reduce the criteria that must be met in order for the transaction to be accounted for as a secured borrowing. The guidance shall be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Our adoption of the provisions in this ASU effective January 1, 2012 did not have a material impact on our consolidated financial statements. See Note 14 for our disclosure of repurchase agreements, which we account for as a secured borrowing.

ASU 2011-04 (ASC 820, Fair Value Measurement): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. Some of the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements. For example, the amendments specify that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. Other amendments prescribe certain additional disclosures about fair value measurements, including Level 3 fair value measurements and financial instruments not carried at fair value. See Note 4 for our fair value disclosures.

ASU 2011-05 (ASC 220, Comprehensive Income): Presentation of Comprehensive Income. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. This ASU also requires consecutive presentation of the statement of net income and other comprehensive income and requires that an entity present reclassification adjustments from other comprehensive income to net income by component on the face of both the statement in which net income is presented and the statement in which other comprehensive income is presented. The FASB subsequently issued ASU 2011-12: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, which defers indefinitely the provision regarding the presentation of reclassification adjustments. Our adoption of ASU 2011-05 effective January 1, 2012 did not have a material impact on our consolidated financial statements.

ASU 2011-11, (ASC 210, Balance Sheet): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU require an entity to disclose information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The disclosures relate to financial instruments and derivative instruments that are either (1) offset on the balance sheet under existing accounting guidance or (2) subject to an enforceable master netting arrangement or similar agreement. The FASB subsequently issued ASU 2013-01: Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify the scope of transactions that are subject to the disclosures about offsetting. ASU 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. Specifically, the amendments clarify that ASU 2011-11 applies to derivatives accounted for in accordance with ASC 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210 or ASC 815 or subject to an enforceable master netting arrangement or similar agreement. Our adoption of these standards on January 1, 2013 did not have a material impact on our consolidated financial statements, as the requirements relate to disclosures only. This new guidance shall be applied retrospectively for all comparative periods presented.

Note 2 BUSINESS ACQUISITIONS

12 Months Ended

Dec. 31, 2012

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 2

BUSINESS ACQUISITIONS

We completed the acquisitions of Homeward, Litton Loan Servicing Business and HomEq Servicing in order to expand our residential servicing business. We accounted for these transactions using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. In a business combination, the initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business.

The pro forma consolidated results presented below for each business acquisition are not indicative of what Ocwen’s consolidated net earnings would have been had we completed the acquisition on the dates indicated because of differences in servicing practices and cost structure between Ocwen and the acquiree. In addition, the pro forma consolidated results do not purport to project the future results of Ocwen combined nor do they reflect the expected realization of any cost savings associated with each acquisition.

The acquisition of Homeward was treated as a stock purchase for U.S. tax purposes. The acquisitions of Litton Loan Servicing Business and HomEq Servicing are treated as asset acquisitions for U.S. tax purposes. We expect the opening tax basis for the acquired assets and liabilities to be the fair value as shown in the purchase price allocation tables below. We expect the MSRs and goodwill to be treated as intangible assets acquired in connection with the purchase of a trade or business and as such, amortized over 15 years for tax purposes.

Homeward Acquisition

Ocwen completed the merger which resulted in the acquisition of Homeward on December 27, 2012. In the Homeward Acquisition, we acquired the MSRs and subservicing for approximately 421,000 residential mortgage loans with a UPB of approximately $77 billion. We also acquired Homeward’s loan origination platform and its diversified fee-based business that includes property valuation, REO management, title, closing and advisory services. We expect to sell the acquired diversified-based business to Altisource in March 2013.

As consideration, Ocwen paid an aggregate purchase price of $765,724. Of this amount, $603,724 was paid in cash and $162,000 was paid in Preferred Stock. $85,000 of the consideration has been placed into escrow for a period of 21 months following the closing date to fund any loss sharing payments and certain other indemnification payments that may become owed to Ocwen, as well as to fund certain expenses. See Note 18

for information related to the preferred stock.

Payment of the cash consideration was financed, in part, by a $100,000 incremental term loan from Barclays Bank PLC (Barclays) pursuant to the existing senior secured term loan (SSTL) facility we entered into on September 1, 2011 and $75,000 from Altisource, pursuant to a new senior unsecured loan agreement. See Note 14 for additional information regarding the terms of these agreements.

Following the acquisition, we paid $350,000 to terminate the senior credit facility and revolving line of credit that we assumed from Homeward.

Purchase Price Allocation

The following table summarizes the fair values of assets acquired and liabilities assumed as part of the Homeward Acquisition:

Cash	$	79,511
Loans held for sale (1)		558,721
Mortgage servicing rights (1)		358,119
Advances and match funded advances (1)		2,266,882
Deferred tax assets (1)		47,346
Premises and equipment (1)		16,803
Debt service accounts		69,287
Investment in unconsolidated entities (1)		5,485
Receivables and other assets (1)		56,886
Match funded liabilities		(1,997,459	)
Lines of credit and other secured borrowings		(864,969	)
Accrued bonuses		(35,201	)
Checks held for escheat (1)		(16,418	)
Other liabilities (1)		(80,112	)
Total identifiable net assets		464,881
Goodwill (1)		300,843
Total consideration	$	765,724

The estimated fair values of the assets acquired and liabilities assumed at the acquisition date, as set forth in the table above, includes some accounts that are based on preliminary fair value estimates. The following factors led to certain balances (denoted above) having preliminary fair value estimates:

	•	The proximity of the Homeward acquisition date (December 27, 2012) to our fiscal year end (December 31, 2012);

	•	The complex nature of certain acquired assets and liabilities prevented us from completing our valuations and reconciliations;

	•	We engaged a third party specialist to assist in valuing certain assets and liabilities and this work is not yet complete; and

	•	Underlying information such as UPB and other loan level details have not yet been boarded and reconciled onto our servicing platform and therefore we have not been able to fully validate and reconcile certain assets and liability balances correlated with UPB data.

Our purchase agreement with Homeward allows for us to fully assess the valuation of the assets and liabilities acquired during an evaluation period that extends beyond the date of these consolidated financial statements. Because the measurement period is still open we expect that certain fair value estimates will change once we receive all information necessary to make a final fair value assessment. We expect that the measurement period will extend until at least June 30, 2013. Any measurement period adjustments that we determine to be material will be applied retrospectively to the period of acquisition in our consolidated financial statements and, depending on the nature of the adjustments, other periods subsequent to the period of acquisition could also be affected.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of the Homeward that is included in our Consolidated Statement of Operations from the acquisition date of December 27, 2012 through December 31, 2012:

Revenues		$	5,881
Net income		$	44

Pro Forma Results of Operations

The following table presents supplemental pro forma information as if the acquisition of Homeward occurred on January 1, 2011. Pro forma adjustments include:

	•	conforming servicing revenues to the revenue recognition policy followed by Ocwen;
	•	conforming the accounting for MSRs to the valuation and amortization policies of Ocwen;

	•	reversing depreciation recognized by Homeward and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;
	•	adjusting interest expense to eliminate the pre-acquisition interest expense of Homeward and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2011 and
	•	reporting acquisition-related charges for professional services related to the acquisition as if they had been incurred in 2011 rather than 2012.

	2012		2011
	(Unaudited)		(Unaudited)

Revenues	$	1,362,927	$	1,085,914
Net income (loss)	$	254,051	$	163,647

Through December 31, 2012, we incurred approximately $990 of fees for professional services related to the Homeward Acquisition that are included in Operating expenses.

Litton Acquisition

Ocwen completed its acquisition of the Litton Loan Servicing Business on September 1, 2011. The Litton Acquisition included a servicing portfolio of approximately 245,000 primarily non-prime residential mortgage loans with approximately $38.6 billion in UPB and the servicing platform of the Litton Loan Servicing Business based in Houston, Texas and McDonough, Georgia.

The base purchase price for the Litton Acquisition was $247,154, which was paid in cash by Ocwen at closing. In addition and as part of the closing, Ocwen repaid Litton’s $2.4 billion outstanding debt on an existing servicing advance financing facility and entered into a new advance financing facility under which it borrowed $2.1 billion. On September 1, 2011, Ocwen and certain of its subsidiaries also entered into a $575,000 SSTL facility agreement to fund the base purchase price and the difference between the proceeds from the new advance financing facility and the amount repaid on Litton’s existing facility.

The base purchase price was increased by $214 as a result of post-closing adjustments specified in the purchase agreement for changes in Litton’s estimated closing date net worth, servicing portfolio UPB and advance balances, among others. There were no adjustments to the purchase price subsequent to December 31, 2011.

Purchase Price Allocation

In August 2012, we finalized the purchase price allocation and recognized the following measurement-period adjustments:

	December 31, 2011			Adjustments			Final
Cash	$	23,791		$	—		$	23,791
Advances		2,468,137			—			2,468,137
MSRs		144,314			—			144,314
Premises and equipment		3,386			—			3,386
Receivables		2,159			(941	)		1,218
Other assets		3,670			—			3,670
Servicing liabilities		(8,972	)		—			(8,972	)
Checks held for escheat		(6,145	)		2,206			(3,939	)
Accrued expenses		(25,471	)		6,927			(18,544	)
Total identifiable net assets		2,604,869			8,192			2,613,061
Goodwill		65,622			(8,192	)		57,430
Total consideration		2,670,491			—			2,670,491
Litton debt repaid to Goldman Sachs at closing		(2,423,123	)		—			(2,423,123	)
Base purchase price, as adjusted	$	247,368		$	—		$	247,368

The December 31, 2011 comparative balance sheet has been revised to reflect the above measurement period adjustments. These adjustments had no effect on earnings.

We estimated the fair value of the acquired advances, loans held for sale and MSRs and the assumed debt in a manner consistent with the methodology described in Note 4. Other assets and liabilities that are expected to have a short life were also valued at the face value of the specific assets and liabilities purchased, including receivables, prepaid expenses, accounts payable and accrued expenses.

Premises and equipment which consisted primarily of computer hardware and software were initially valued based on the “in-use” valuation premise, where the fair value of an asset is based on the highest and best use of the asset that would provide maximum value to market participants principally through its use with other assets as a group. The initial valuation presumed the continued operation of the Litton Loan Servicing Business platform as installed or otherwise configured for use. During the fourth quarter of 2011, we ceased operation of the Litton Loan Servicing Business platform and sold the computer hardware and software to Altisource for a cash purchase price of $418 which was significantly less than the initial valuation because the individual assets were no longer valued as part of a working platform. As a result, we reduced the provisional fair value assigned to these assets at the acquisition date to a value that reflected their subsequent sales price and increased the amount allocated to goodwill. In addition, certain of the acquired premises and equipment were no longer in use and were written down to their salvage value. For those assets that were to be abandoned after year end but before the end of their previously estimated useful life, we adjusted depreciation to reflect the shortened life.

Additionally, the purchase agreement provided that the severance plans of Litton and Goldman Sachs remain in effect for one year. We recognized severance expense of $10,119 during 2011 as steps taken to reorganize and streamline the operations of Litton obligated Ocwen to pay severance under those plans. Severance expense is included in Compensation and benefits in our Consolidated Statements of Operations.

In connection with the establishment of the match funded advance facility Ocwen funded a reserve in the initial amount of $42,535 which is held by the facility Indenture Trustee for the benefit of the note holders. Ocwen also paid an $11,500 arrangement fee in connection with the SSTL agreement. This fee along with the discount and certain other professional fees incurred in connection with the establishment of the facility are being amortized over the five-year life of the loan.

In connection with the Litton Acquisition, Ocwen, Goldman Sachs Bank USA, Litton and the New York State Banking Department have entered into an agreement (the NY Agreement) that sets forth certain loan servicing practices and operational requirements. No fines, penalties or other payments were assessed against Ocwen or Litton under the terms of the NY Agreement. We do not believe that our commitments under the NY Agreement will have a material impact on our financial statements.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of the Litton Loan Servicing Business that is included in our Consolidated Statement of Operations from the acquisition date of September 1, 2011 through December 31, 2011:

Revenues		$	62,750
Net loss (1)		$	(20,910	)

(1)

Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen’s platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.

Pro Forma Results of Operations

The following table presents supplemental pro forma information as if the acquisition of Litton occurred on January 1, 2010. Pro forma adjustments include:

	•	conforming revenues to the revenue recognition policy followed by Ocwen;
	•	conforming the accounting for MSRs to the valuation and amortization policy of Ocwen;
	•	reversing depreciation recognized by Litton and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;
	•	adjusting interest expense to eliminate the pre-acquisition interest expense of Litton and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2010; and
	•	reporting acquisition-related charges, including severance paid to Litton employees and fees for professional services related to the acquisition as if they had been incurred in 2010 rather than 2011.

	2011		2010 (1)
	(Unaudited)		(Unaudited)
Revenues	$	642,033	$	632,721
Net income (loss)	$	52,407	$	(169,886	)

(1)	In December 2010, Litton deemed goodwill to be wholly impaired and wrote off the balance of $154,065. Litton also recorded a provision for losses on servicing advances of $33,734 in 2010.

Through December 31, 2011, we incurred approximately $1,170 of fees for professional services related to the Litton Acquisition that are included in Operating expenses.

HomEq Acquisition

Ocwen completed the HomEq Acquisition on September 1, 2010. This transaction did not result in the transfer of ownership of any legal entities.

With the close of the HomEq Acquisition, OLS boarded 134,000 residential mortgage loans with an aggregate unpaid principal balance of $22.4 billion onto its servicing platform.

OLS paid an initial aggregate purchase price of $1.2 billion in cash upon completion of the HomEq Acquisition. Of this amount, $852,617 was funded by notes issued by a new $1.0 billion structured servicing advance financing facility, $150,000 was paid from funds held in escrow in accordance with the terms of the new $350,000 SSTL facility and $194,130 consisted of cash and funds borrowed pursuant to the SSTL facility. See Note 13 and Note 14 for additional details regarding the terms of the notes supporting these facilities. The initial purchase price was reduced by $29,625 pursuant to an initial true-up of advances as reflected in the table below. We recorded a receivable of $1,449 as of December 31, 2010 for amounts due to us for further true-up under adjustment mechanisms and repurchase rights as provided in the HomEq Agreement. We collected this receivable in 2011.

Purchase Price Allocation

The following table summarizes the final purchase price allocation:

Mortgage servicing rights	$	84,324
Advances		1,063,180
Receivables		7,957
Premises and equipment		6,728
Checks held for escheat		(4,616	)
Accrued bonus		(3,037	)
Servicing liabilities		(709	)
Other liabilities		(964	)
Total identifiable net assets		1,152,863
Goodwill		12,810
Total consideration	$	1,165,673

The valuation of premises and equipment was based on the in-use valuation premise where the highest and best use of the assets would provide maximum value to market participants principally through its use with other assets as a group. This valuation presumed the continued operation of the HomEq platform as installed or otherwise configured for use. The acquired premises and equipment consisted primarily of leasehold improvements. Subsequent to the acquisition, we vacated the leased premises in 2010 following termination of the former HomEq employees and recorded a charge of $5,840 to write off the leasehold improvements. We sold the equipment acquired from HomEq to Altisource for cash proceeds equal to the acquisition fair value of $888.

The asset purchase agreement provided for a 90-day true-up process for Advances and Mortgage servicing rights under limited circumstances. Payment for advances in the amount of $3,500 was held back in an escrow account under a four-year agreement during which Ocwen can seek reimbursement for existing and future uncollectible advances on certain pooling and servicing agreements under limited circumstances. Notwithstanding this holdback amount, the agreement provides for the reimbursement of uncollectible advances under all pooling and servicing agreements under limited circumstances.

Severance payments for all HomEq Servicing employees who entered an employment agreement with Ocwen were recorded as steps were taken that obligated Ocwen to pay severance for all such employees. Severance expense of $20,727 is included in Compensation and benefits in our Consolidated Statement of Operations.

In connection with the establishment of the match funded advance facility Ocwen paid Barclays a $10,110 securitization fee and funded a reserve in the initial amount of $14,342 held by the facility Indenture Trustee for the benefit of the note holders.

Ocwen has no material financial obligation for litigation related to the operations of HomEq prior to the closing.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of HomEq Servicing that are included in our Consolidated Statement of Operations from the acquisition date of September 1, 2010 through December 31, 2010:

Revenues		$	43,127
Net loss (1)		$	(26,953	)

(1)

Net loss includes non-recurring transaction-related expenses of $51,136, including (i) $32,954 of severance and other compensation related to HomEq employees who accepted employment with Ocwen, (ii) $7,794 of lease termination costs, (iii) $5,840 of depreciation resulting from the write off of leasehold improvements, (iv) $5,486 of amortization of the acquired MSRs and (v) $2,556 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the HomEq loans on Ocwen’s platform. We computed income taxes using a combined statutory rate of 37% for federal and state income taxes.

Pro Forma Results of Operations

The following table presents supplemental pro forma information as if the acquisition of HomEq Servicing occurred on January 1, 2009. Pro forma adjustments include:

	•	conforming revenues to the revenue recognition policy followed by Ocwen;
	•	reversing revenues for servicing portfolios not acquired by Ocwen;
	•	conforming the accounting for MSRs to the valuation and amortization policy of Ocwen;
	•	reversing depreciation recognized by HomEq and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;
	•	adjusting interest expense to eliminate the pre-acquisition interest expense of HomEq and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2010; and
	•	reporting acquisition-related charges, including severance paid to HomEq employees and fees for professional services related to the acquisition as if they had been incurred in 2009 rather than 2010.

	2010
	(Unaudited)
Revenues	$	458,548
Net income (loss)	$	42,786

Through December 31, 2010, we incurred approximately $3,977 of fees for professional services related to the HomEq Acquisition which are also included in Operating expenses.

Facility Closure Costs

During 2010, we incurred facility closure costs primarily consisting of severance, Worker Adjustment and Retraining Notification Act (WARN Act) compensation and lease termination costs for closure of the leased HomEq facilities. Following the acquisition, we terminated the former HomEq employees and vacated the leased facilities. During 2011 and 2012, we incurred similar costs related to the Litton Acquisition. The following table provides a reconciliation of the beginning and ending liability balances for these termination costs:

	Employee termination benefits (1)			Lease termination costs (2)			Total
Liability balance as at January 1, 2010	$	—		$	—		$	—
Additions charged to operations (3)		32,954			7,794			40,748
Payments		(31,622	)		—			(31,622	)
Liability balance as at December 31, 2010 (3)		1,332			7,794			9,126
Additions charged to operations (3)		33,127			—			33,127
Amortization of discount		—			99			99
Payments		(29,296	)		(2,606	)		(31,902	)
Liability balance as at December 31, 2011 (3)		5,163			5,287			10,450
Additions charged to operations (3)		2,869			5,030			7,899
Amortization of discount		—			176			176
Payments		(8,032	)		(5,602	)		(13,634	)
Liability balance as at December 31, 2012 (3)	$	—		$	4,891		$	4,891

(1)	Employee termination benefits include severance expense of $20,727 and $10,119 related to HomEq Servicing and Litton, respectively. The remaining liability for employee termination benefits related to the HomEq Acquisition was settled in 2011. We paid the liability for employee termination benefits related to the Litton Acquisition during 2012.
(2)	The lease agreements that we assumed for the HomEq facilities expire in 2017 and 2018. In December 2010, we exercised our option to terminate the HomEq lease agreements effective in 2013 and provided formal notice to the lessors. At that time, we recorded a charge of $7,794 to establish a reserve for the remaining lease payments discounted through the early termination date, including early termination penalties due in 2013. The balance at December 31, 2011 represented the remainder of the liability for the HomEq lease payments. In March 2012, we ceased using the Litton Georgia facility and recorded a charge of $4,779 to establish a liability for the remaining lease payments discounted through the lease expiration date in 2017. This lease does not contain an option for early termination, and we are actively attempting to sublease the space. In June 2012, we negotiated a buyout of the lease on the HomEq California facility for $2,900 which resulted in an additional expense of $251 as the payment exceeded the liability, net of unamortized discount.
(3)	All charges were recorded in the Servicing segment. Charges related to employee termination benefits and lease termination costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the Consolidated Statements of Operations. The liabilities are included in Other liabilities in the Consolidated Balance Sheet.

In addition to the HomEq facility closure costs described above, we recorded a depreciation charge of $5,840 in 2010 to write off the leasehold improvements related to the closed HomEq facilities.

Goodwill

The following table provides a reconciliation of the beginning and ending balances of goodwill for 2012:

	Homeward Acquisition		Litton Acquisition		HomEq Acquisition		Total
Balance at December 31, 2011	$	—	$	57,430	$	12,810	$	70,240
Homeward Acquisition		300,843		—		—		300,843
Balance at December 31, 2012	$	300,843	$	57,430	$	12,810	$	371,083

For Homeward, $102,374 of the goodwill portion of the purchase price allocation has been assigned to the Servicing segment, $121,458 has been assigned to the Lending segment and the remaining $77,011 has been assigned to the diversified fee-based business which is included in Corporate Items and Other. For Litton and HomEq, the entire balance of goodwill pertains to the Servicing segment. As disclosed above, we finalized the Litton purchase price allocation in August 2012 and recognized measurement-period adjustments which resulted in a reduction in goodwill of $8,192. The December 31, 2011 balance sheet was revised to reflect these adjustments. We have not recognized any impairment on the goodwill associated with these three business acquisitions.

Note 3 ASSET SALES AND FINANCING

12 Months Ended

Dec. 31, 2012

Asset Sales And Financing [Text Block]

NOTE 3

ASSET SALES AND FINANCING

On March 5, 2012, Ocwen completed its initial sale to Home Loan Servicing Solutions, Ltd. and its wholly owned subsidiary, HLSS Holdings, LLC (collectively referred to as HLSS), of the right to receive the servicing fees, excluding ancillary income, relating to certain mortgage servicing (Rights to MSRs) for approximately $15.2 billion of UPB and related servicing advances that we acquired in connection with the HomEq Acquisition. HLSS also acquired HomEq Servicer Advance Facility Transferor, LLC and HomEq Servicer Advance Receivables Trust 2010-ADV1 (together the Advance SPEs). As a result of the acquisition of the Advance SPEs, HLSS also assumed the related match funded liabilities under the structured servicing advance financing facility that we entered into as part of the HomEq Acquisition (the HomEq Servicing advance facility), with the exception of the Class D Term Note which Ocwen agreed to repay prior to closing. The final purchase price of $138,792 reflects post-closing adjustments that principally resulted from declines in match funded advances between February 28, 2012 and March 5, 2012. See Note 13 for additional information regarding the match funded liabilities assumed by HLSS.

Since the initial sale on March 5, 2012, Ocwen completed five additional sales to HLSS on May 1^st, August 1^st, September 13^th, September 28^th and December 26^th of Rights to MSRs for loans with approximately $67.5 billion of UPB together with the related servicing advances. The initial and flow transactions with HLSS are collectively referred to as the HLSS Transactions. In 2012, Ocwen received total proceeds of $3.1 billion from the flow transactions. On December 31, 2012, Ocwen recorded a receivable of $1,410 from HLSS for post-closing adjustments that resulted from an increase in match funded advances and a decline in MSRs through the closing date.

As part of the HLSS Transactions, Ocwen retains legal ownership of the MSRs and continues to service the related mortgage loans. However, Ocwen will service the loans for a reduced fee because HLSS has assumed the match funded liabilities as well as the obligation for future servicing advances related to the MSRs. Ocwen is obligated to transfer legal ownership of the MSRs to HLSS if and when the required third party consents are obtained. At that time, Ocwen would commence subservicing the MSRs under essentially the same terms and conditions pursuant to a subservicing agreement with HLSS which was executed on February 10, 2012.

The following table summarizes the sales price of the assets and liabilities acquired by HLSS in connection with the HLSS Transactions:

	Initial sale			Flow sales			Total
Sale of MSRs accounted for as a financing (1)	$	62,458		$	254,149		$	316,607

Sale of match funded advances (2)		—			2,827,227			2,827,227

Sale of Advance SPEs:
Match funded advances		413,374			—			413,374
Debt service account		14,786			—			14,786
Prepaid lender fees and debt issuance costs		5,422			—			5,422
Other prepaid expenses		1,928			—			1,928
Match funded liabilities		(358,335	)		—			(358,335	)
Accrued interest payable and other accrued expenses		(841	)		—			(841	)
Net assets of Advance SPEs (3)		76,334			—			76,334
Sales price, as adjusted		138,792			3,081,376			3,220,168
Amount due from HLSS for post-closing adjustments at December 31, 2012		—			(1,410	)		(1,410	)
Cash received	$	138,792		$	3,079,966		$	3,218,758

(1)	Reported in the Consolidated Statements of Cash Flows cash flows with financing activities as Proceeds from sale of mortgage servicing rights accounted for as a financing.

(2)	Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of match funded advances.
(3)	Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of advance financing subsidiary and special purpose entity.

Because Ocwen has retained legal title to the MSRs, the sales to HLSS of Rights to MSRs have been accounted for as financings. As a result, we have not derecognized the MSRs, and we have established a liability equal to the sales price. If and when the third party consents are obtained, legal title will transfer to HLSS, and we expect to record a sale with the gain deferred and derecognize the MSRs. Until such time, we continue to recognize the full amount of servicing revenue and amortization of the MSRs. The sales proceeds represent the estimated fair value of the MSRs. This excess amount will be realized over time as the MSRs amortize. Our investment in the Advance SPEs was sold at carrying value and accounted for as a sale. The consolidated assets and liabilities of the Advance SPEs were derecognized at the time of the sale.

We have determined that the HLSS Transactions do not constitute the disposal of a business. Therefore, there was no need to consider goodwill in determining the gain on the sale. Because the HLSS Transactions resulted in the sale of a portion of the assets within the Residential Servicing reporting unit which is an indicator that goodwill for the reporting unit should be tested for impairment, we updated our qualitative assessment of whether it was more likely than not that the fair value of the Residential Servicing reporting unit was less than its carrying amount. Our updated assessment indicated that goodwill was not impaired.

Ocwen also entered into an agreement with HLSS Management, LLC (HLSS Management), a wholly owned subsidiary of HLSS, for the provision of certain professional services to us and the provision by us of certain professional services to HLSS Management. See Note 27 for additional information regarding this agreement.

Note 4 FAIR VALUE

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Text Block]

NOTE 4

FAIR VALUE

Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs.

	Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
	Level 2:	Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
	Level 3:	Unobservable inputs for the asset or liability.

Where available, we utilize quoted market prices or observable inputs rather than unobservable inputs to determine fair value. We classify assets in their entirety based on the lowest level of input that is significant to the fair value measurement.

The carrying amounts and the estimated fair values of our financial instruments and our nonfinancial assets measured at fair value are as follows at December 31:

			2012						2011
	Level		Carrying Value			Fair Value			Carrying Value			Fair Value
Financial assets:
Loans held for sale, at fair value (1)		2	$	426,480		$	426,480		$	—		$	—
Loans held for sale, at lower of cost or fair value (2)		3		82,866			82,866			20,633			20,633
Advances and match funded advances(3)		3		3,233,707			3,233,707			3,733,502			3,733,502
Receivables, net (3)		3		167,459			167,459			83,202			83,202
Loans, net – restricted for securitization investors (3)		3		—			—			58,560			55,165

Financial liabilities:
Match funded liabilities (3)		3	$	2,532,745		$	2,533,278		$	2,558,951		$	2,569,131
Lines of credit and other secured borrowings (3)		3		1,096,679			1,101,504			540,369			550,860
Debt securities (3)		2		—			—			82,554			92,125
Secured borrowings – owed to securitization investors (3)		3		—			—			53,323			52,652

Derivative financial instruments (1):
IRLCs		2	$	5,781		$	5,781		$	—		$	—
Interest rate swaps		3		(10,836	)		(10,836	)		(14,491	)		(14,491	)
Forward MBS trades		1		(1,719	)		(1,719	)		—			—
U.S. Treasury futures		1		(1,258	)		(1,258	)		—			—
Interest rate caps		3		168			168			3,600			3,600
Nondeliverable FX forward contracts		3		—			—			(5,785	)		(5,785	)

Impaired stratum of MSRs (2)(4)		3	$	—		$	—		$	214		$	214
MSRs, at fair value (1)		3	$	85,213		$	85,213		$	214		$	214

(1)	Measured at fair value on a recurring basis.
(2)	Measured at fair value on a non-recurring basis.
(3)	Financial instruments disclosed, but not carried, at fair value.
(4)	The high-loan-to-value stratum is measured at fair value on a non-recurring basis and is classified as Level 3 because of the nature of the valuation inputs. The values are net of a valuation allowance of $2,378 and $2,290 at December 31, 2012 and 2011, respectively.

The following tables present a reconciliation of the changes in fair value of Level 3 assets that we measure at fair value on a recurring basis:

For the year ended December 31, 2012:	Derivative Financial Instruments			MSRS at Fair Value		Total

Beginning balance	$	(16,676	)	$	—	$	(16,676	)

Purchases, issuances, sales and settlements:
Purchases (1)		4,946			85,183		90,129
Issuances		—			—		—
Sales		(405	)		—		(405	)
Settlements		2,451			—		2,451
		6,992			85,183		92,175

Total realized and unrealized gains and (losses) (2):
Included in Other, net		7,331			30		7,361
Included in Other comprehensive income (loss)		(8,315	)		—		(8,315	)
		(984	)		30		(954	)

Transfers in and / or out of Level 3		—			—		—
Ending balance	$	(10,668	)	$	85,213	$	74,545

For the year ended December 31, 2011	Derivative Financial Instruments

Beginning balance	$	(15,351	)

Purchases, issuances, sales and settlements:
Purchases		3,688
Settlements		85
		3,773
Total realized and unrealized gains and (losses) (2):
Included in Other, net		(5,881	)
Included in Other comprehensive income (loss)		783
		(5,098	)

Transfers in and / or out of Level 3		—
Ending balance	$	(16,676	)

				Trading Securities
For the year ended December 31, 2010:	Derivative Financial Instruments			Auction Rate Securities			Subordinates and Residuals			Total

Beginning balance	$	(45	)	$	247,464		$	59		$	247,478

Purchases, issuances, sales and settlements:
Sales		—			(146,810	)		—			(146,810	)
Settlements		(738	)		(92,745	)		—			(93,483	)
		(738	)		(239,555	)		—			(240,293	)

Total realized and unrealized gains and (losses) (2):
Included in Gain (loss) on trading securities		—			(7,909	)		(59	)		(7,968	)
Included in Other, net		(133	)		—			—			(133	)
Included in Other comprehensive income (loss)		(14,435	)		—			—			(14,435	)
		(14,568	)		(7,909	)		(59	)		(22,536	)

Transfers in and / or out of Level 3		—			—			—			—
Ending balance	$	(15,351	)	$	—		$	—		$	(15,351	)

(1)	Includes $4,946 of derivatives and $82,275 of fair value MSRs acquired in connection with the Homeward Acquisition. Also includes $2,908 of MSRs retained on the sale of loans.
(2)	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively.

The methodologies that we use and key assumptions that we make to estimate the fair value of instruments and other assets and liabilities measured at fair value on a recurring or non-recurring basis are described below:

Derivative Financial Instruments

We use interest rate swaps to hedge against the effects of changes in interest rates on our borrowings under advance funding facilities. These derivatives are not exchange-traded and therefore quoted market prices or other observable inputs are not available. Fair value is based on information provided by third-party pricing sources. Third-party valuations are derived from proprietary models based on inputs that include yield curves and contractual terms such as fixed interest rates and payment dates. Although we have not adjusted the information obtained from the third-party pricing sources, we review this information to ensure that it provides a reasonable basis for estimating fair value. Our review is designed to identify information that appears stale, information that has changed significantly from the prior period and other indicators that the information may not be accurate. For interest rate contracts, significant increases or decreases in the unobservable portion of the yield curves in isolation will result in substantial changes in the fair value measurement.

In addition, we use interest rate caps to minimize future interest rate exposures on variable rate debt issued on servicing advance facilities from increases in one-month LIBOR interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk.

We enter into forward trades to provide an economic hedge against changes in fair value on loans held for sale which we carry at fair value. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. Forward contracts are actively traded in the market, thus they are classified within Level 1 of the valuation hierarchy.

Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator, or an agreement to extend credit to a mortgage applicant, or an agreement to sell a loan to investors, whereby the interest rate is set prior to funding. IRLCs are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. Fair value amounts of IRLCs are adjusted for expected “fallout” (locked pipeline loans not expected to close), using models that consider cumulative historical fallout rates and other factors.

We enter into derivative contracts including interest rate swaps, U.S. Treasury futures and forward contracts to hedge against the effects of changes in the value of the MSRs which we carry at fair value. The fair value of interest rate swaps is based upon projected short-term interest rates and volatility based on published market based sources. Because futures and forward contracts are actively traded in the market, they are classified within Level 1 of the valuation hierarchy.

See Note 19 for additional information regarding derivative financial instruments.

Loans Held for sale

Loans held for sale that we measure at fair value on a recurring basis are subject to changes in fair value due to fluctuations in interest rates from the closing date through the date of the sale of the loan into the secondary market. These loans are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conforming mortgage loans are typically sold.

For all other loans held for sale which we report at the lower of cost or fair value, current market illiquidity has reduced the availability of observable pricing data. When we enter into an agreement to sell a loan to an investor at a set price, the loan is valued at the commitment price. We base the fair value of uncommitted loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. The more significant assumptions used in the December 31, 2012 valuation of performing loans include: historical default rates of 5% to 10%; re-performance rates on defaulted loans of 25%; loss severity on defaulted loans of 20% to 50%; an average resolution timeline of 12 months; an average coupon rate of 7%; and a discount rate of 10%. Significant assumptions used in the December 31, 2012 valuation of nonperforming loans include: the current market value of the underlying collateral based on third party sources such as appraisals or broker price opinions; a resolution timeline of one to 84 months depending on the stage of delinquency, the state in which the property is located and the type of property; estimated foreclosure and disposition costs that are based on historical experience and considering that state in which the property is located and the type of property; and a discount rate of 15%.

Loans – Restricted for Securitization Investors

We based the fair value of Loans – restricted for securitization investors on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions included expected prepayment and delinquency rates and cumulative loss curves.

Mortgage Servicing Rights

Amortized Cost MSRs

We estimate the fair value of MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience, both of which we derive from our historical experience and available market data. Other assumptions used in our internal valuation are:

•	Cost of servicing	•	Interest rate used for computing float earnings
•	Discount rate	•	Compensating interest expense
•	Interest rate used for computing the cost of Servicing advances	•	Collection rate of other ancillary fees

The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, prepayment penalties, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We develop the discount rate internally, and we consider external market-based assumptions in determining the interest rate for the cost of financing advances, the interest rate for float earnings and the cost of servicing. The more significant assumptions used in the December 31, 2012 valuation include prepayment speeds ranging from 12.44% to 20.76% (depending on loan type) and delinquency rates ranging from 14.98% to 23.10% (depending on loan type). Other assumptions include an interest rate of 1-month LIBOR plus a range of 4% to 5.75% for computing the cost of financing advances, an interest rate of 1-month LIBOR for computing float earnings and a discount rate of approximately 20%.

We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans. The risk factors used to assign loans to strata include the credit score (FICO) of the borrower, the loan to value ratio and the default risk. Our strata include:

•	Subprime	•	Re-performing
•	ALT A	•	Special servicing
•	High-loan-to-value	•	Other

As disclosed above and in Note 1

we established a valuation allowance for impairment on the high-loan-to-value stratum of our MSRs because the estimated fair value was less than the carrying value. For all other strata, the fair value exceeded the carrying value at December 31, 2012.

Fair Value MSRs

MSRs carried at fair value are classified within Level 3 of the valuation hierarchy due to the use of significant unobservable inputs and the inactive market for such assets. Fair value of these MSRs is sensitive to changes in unobservable inputs, as a change in those inputs to a different amount might result in significantly higher or lower fair value measurement. Significant unobservable inputs include mortgage prepayment speeds, constant default rates, discount rates, servicing advances and delinquency rates.

We estimate the fair value of our MSRs carried at fair value by using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The key assumptions used in the valuation of these MSRs include:

	•	Mortgage prepayment speeds;
	•	Delinquency rates and
	•	Discount rates.

The primary assumptions used in the December 31, 2012 valuation include a 16.83% weighted average constant prepayment rate and a discount rate equal to 1-Month LIBOR plus a range of 9% to 10%.

The cash flow and prepayment assumptions used in our discounted cash flow models are based on empirical data drawn from the historical performance of our MSRs adjusted to reflect current market conditions, which we believe are consistent with assumptions used by market participants valuing similar MSRs. On a quarterly basis, the valuation of our MSRs is reviewed by a third party valuation expert.

Advances

We value advances that we make on loans that we service for others at their carrying amounts because they have no stated maturity, generally are realized within a relatively short period of time and do not bear interest.

Receivables

The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization.

Borrowings

The carrying value of match funded liabilities and secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other match funded or secured borrowings that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We estimate principal repayments of match funded liabilities during the amortization period based on our historical advance collection rates and taking into consideration any plans to refinance the notes. The more significant of the assumptions used in the December 31, 2012 valuation of the match funded liabilities bearing a fixed interest rate were discount rates of 2.23% – 5.92% and estimated repayments using an advance reduction curve that is based on historical experience. For the SSTL, we used a discount rate of 6.98% and the repayment schedule specified in the loan agreement.

Prior to the redemption of our debt securities in 2012, we based their fair value on quoted prices in markets with limited trading activity.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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Mortgage Loans on Real Estate, by Loan Disclosure [Text Block]

Note 5 LOANS HELD FOR RESALE,AT FAIR VALUE

12 Months Ended

Dec. 31, 2012

NOTE 5

LOANS HELD FOR SALE, AT FAIR VALUE

Loans held for sale, at fair value represent mortgage loans originated or purchased and held until sold to secondary market investors, such as GSEs or other third party investors. We acquired these loans as part of the Homeward Acquisition at an initial fair value of $558,721. The change in balance from the acquisition date to $426,480 at December 31, 2012 is primarily due to sales. See Note 2 for additional information regarding the purchase price allocation.

Note 6 ADVANCES

12 Months Ended

Dec. 31, 2012

Advance Payments by Borrowers for Taxes and Insurance Summary [Text Block]

NOTE 6

ADVANCES

Advances, representing payments made on behalf of borrowers or on foreclosed properties, as more fully described in Note 1—Mortgage Servicing Fees and Advances, consisted of the following at December 31:

	2012		2011
Servicing:
Principal and interest	$	83,617	$	30,462
Taxes and insurance		51,447		33,387
Foreclosures, bankruptcy and other		41,296		35,832
		176,360		99,681
Corporate Items and Other		8,103		3,910
	$	184,463	$	103,591

The balance outstanding at December 31, 2012 includes $56,903 of advances acquired in the Homeward Acquisition. See Note 2 for additional information.

Note 7 MATCH FUNDED ADVANCES

12 Months Ended

Dec. 31, 2012

Transfers Accounted For As Secured Borrowings Advances [Text Block]

NOTE 7

MATCH FUNDED ADVANCES

Match funded advances on residential loans we service for others, as more fully described in Note 1— Principles of Consolidation—Financings of Advances on Loans Serviced for Others, are comprised of the following at December 31:

	2012		2011
Principal and interest	$	1,577,808	$	1,679,536
Taxes and insurance		1,148,486		1,452,707
Foreclosures, bankruptcy, real estate and other		322,950		497,668
	$	3,049,244	$	3,629,911

The balance outstanding at December 31, 2012 includes $2.2 billion of advances acquired in the Homeward Acquisition. See Note 2 for additional information.

Note 8 MORTGAGE SERVICING

12 Months Ended

Dec. 31, 2012

Transfers and Servicing of Financial Assets [Text Block]

NOTE 8

MORTGAGE SERVICING

The following table presents the components of servicing and subservicing fees for the years ended December 31:

	2012		2011		2010
Loan servicing and subservicing fees	$	581,067	$	341,438	$	226,284
Home Affordable Modification Program (HAMP) fees		76,764		42,025		32,363
Late charges		69,281		38,557		32,760
Loan collection fees		15,960		11,223		8,958
Float earnings		3,749		2,105		2,843
Other		57,604		23,527		18,491
	$	804,425	$	458,875	$	321,699

Mortgage Servicing Rights – Amortization Method

Servicing Assets. The following table summarizes the activity in the carrying value of residential servicing assets for the years ended December 31:

For the year ended December 31,	2012			2011			2010
Beginning balance	$	293,152		$	193,985		$	117,802
Purchases:
HomEq Acquisition		—			—			84,324
Litton Acquisition		—			144,314			—
Homeward Acquisition (1)		275,844			—			—
MSR asset acquisitions (2)		181,979			—			23,425
Servicing transfers and adjustments		(4	)		—			(29	)
Decrease in impairment valuation allowance		(88	)		574			90
Amortization (3)		(74,171	)		(45,721	)		(31,627	)
Ending balance	$	676,712		$	293,152		$	193,985

Fair value at end of year	$	743,830		$	340,015		$	237,407

(1)	See Note 2 for additional information regarding the acquisition of MSRs from Homeward.
(2)	MSR asset acquisitions for 2012 include:
	•	On April 2, 2012, we completed an acquisition from Saxon Mortgage Services, Inc. (Saxon) of an MSR portfolio of approximately $22.2 billion in UPB of residential mortgage loans, approximately $9.9 billion of which Ocwen had previously subserviced, and approximately $1.2 billion of associated servicing advances (the 2012 Saxon MSR Transaction). To finance the 2012 Saxon MSR Transaction, we utilized a combination of available cash and two new two-year servicing advance facilities. On April 2, 2012, we also completed an acquisition of MSRs from JPMorgan Chase Bank, N.A. (JPMCB) which includes servicing rights for non-prime loans with a UPB of approximately $8.1 billion (the JPMCB MSR Transaction) and $557,184 of servicing advances. Ocwen financed the purchase price through available cash and an existing servicing advance facility.
	•	On May 31, 2012, we completed the acquisition of MSRs from Aurora Bank FSB (Aurora) on a portfolio of small-balance commercial mortgage loans with a total UPB of $1.8 billion and $52,911 of servicing advances.
	•	On June 11, 2012, we purchased residential MSRs from Bank of America, N.A. (BANA) with respect to mortgage loans with a UPB of approximately $10.1 billion owned by Freddie Mac. We entered into a new servicing advance facility to finance a portion of the related servicing advances acquired in the transaction. At December 31, 2012, the acquired MSRs, which had a carrying value of $58,472, were pledged as collateral for the promissory note used to finance the purchase.
	•	On July 2 and 16, 2012, we closed on the acquisitions of MSR portfolios totaling approximately $316 million in UPB of residential mortgage loans owned by Fannie Mae and Freddie Mac.
	•	On September 4, 2012, we purchased an additional MSR portfolio of approximately $2.2 billion in UPB of residential mortgage loans owned by Fannie Mae. We boarded these loans on October 1, 2012.
(3)	In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations.

See Note 13 and Note 14 for additional information regarding the advance facilities and promissory note used to finance the advances and MSRs acquired in the transactions described above. As disclosed in Note 3, we sold certain Rights to MSRs during 2012 as part of the HLSS Transactions. The carrying value of the related MSRs which have not been derecognized at December 31, 2012 was $273,028.

The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2012, is projected as follows over the next five years:

2013	$	122,365
2014		100,316
2015		82,240
2016		67,421
2017		55,273

Valuation Allowance for Impairment. During 2008, we established a valuation allowance for impairment of $3,624 on the high-loan-to-value stratum of our mortgage servicing rights as the estimated fair value was less than the carrying value. Changes in the valuation allowance for impairment are reflected in Servicing and origination expenses in the Consolidated Statement of Operations. Net of the valuation allowance of $2,378 and $2,290, the carrying value of this stratum was $0 and $214 at December 31, 2012 and 2011, respectively. For all other strata, the fair value exceeded the carrying value.

Servicing Liabilities. Servicing liabilities are included in Other liabilities. See Note 16 for additional information.

Mortgage Servicing Rights—Fair Value Measurement Method

This portfolio comprises servicing rights for prime mortgage loans that were acquired by Homeward through asset or flow purchases or retained on loans originated and subsequently sold. We acquired these loans as part of the Homeward Acquisition at an initial fair value of $82,275. See Note 4

for a reconciliation of changes in the fair value from the acquisition date to $85,213 at December 31, 2012.

Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). The following table summarizes the estimated change in the fair value of the MSRs and related derivatives as of December 31, 2012 given hypothetical instantaneous parallel shifts in the yield curve:

	Adverse change in fair value
	10%			20%

Weighted average prepayment speeds	$	(6,374	)	$	(13,681	)

Discount rate (Option-adjusted spread)	$	(3,533	)	$	(6,448	)

The sensitivity analysis measures the potential impact on fair values based on hypothetical changes (increases and decreases) in interest rates.

Portfolio of Assets Serviced

The following table presents the composition of our servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents loans for which we own the MSRs while subservicing represents all other loans.

	Residential		Commercial		Total
UPB at December 31, 2010
Servicing	$	51,252,380	$	—	$	51,252,380
Subservicing		22,634,011		434,305		23,068,316
	$	73,886,391	$	434,305	$	74,320,696
UPB at December 31, 2011
Servicing	$	78,675,160	$	—	$	78,675,160
Subservicing		23,524,062		290,863		23,814,925
	$	102,199,222	$	290,863	$	102,490,085
UPB at December 31, 2012
Servicing (1)	$	175,762,161	$	—	$	175,762,161
Subservicing		27,903,555		401,031		28,304,586
	$	203,665,716	$	401,031	$	204,066,747

(1)	Includes UPB of $79,360,874 for which the Rights to MSRs have been sold to HLSS.

Residential assets serviced consist principally of mortgage loans, primarily subprime, but also include foreclosed real estate. Residential assets serviced also include small-balance commercial assets with a UPB of $2.1 billion and $586,080 at December 31, 2012 and 2011, respectively that are managed using the REALServicing™ application. Commercial assets subserviced consist of large-balance foreclosed real estate. Assets serviced for others are not included on our Consolidated Balance Sheet.

At December 31, 2012, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:

	Amount		Count
California	$	45,851,476		160,501
Florida		22,731,227		136,224
New York		17,276,718		67,725
Texas		9,151,031		99,935
Illinois		8,174,504		53,203
Other		100,480,760		702,368
	$	203,665,716		1,219,956

Float balances amounted to approximately $1.3 billion and $555,500 at December 31, 2012 and 2011, respectively.

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 9 RECEIVABLE

12 Months Ended

Dec. 31, 2012

NOTE 9

RECEIVABLES

Receivables consisted of the following at the dates indicated:

	Receivables		Allowance for Losses			Net
December 31, 2012
Servicing (1)	$	84,870	$	(1,647	)	$	83,223
Income taxes receivable		55,292		—			55,292
Affordable housing (2)		1,052		(713	)		339
Due from related parties (3)		12,361		—			12,361
Other		17,525		(1,281	)		16,244
	$	171,100	$	(3,641	)	$	167,459

December 31, 2011
Servicing (1)	$	53,061	$	(1,648	)	$	51,413
Income taxes receivable		21,518		—			21,518
Affordable housing (2)		5,568		(5,019	)		549
Due from related parties (3)		2,309		—			2,309
Derivatives, at fair value (4)		3,600		—			3,600
Other		4,134		(1,262	)		2,872
	$	90,190	$	(7,929	)	$	82,261

(1)	The balances at December 31, 2012 and 2011 arise from our Servicing business and primarily include reimbursable expenditures due from investors and amounts to be recovered from the custodial accounts of the trustees.
(2)	The balances at December 31, 2012 and 2011 primarily represent annual payments to be received through June 2014 for proceeds from sales of investments in affordable housing properties. None of these receivables is delinquent.
(3)	See Note 27 for additional information regarding transactions with Altisource and HLSS.
(4)	The balance represents the fair value of an interest rate cap that we sold in 2012. See Note 19 for additional information regarding our derivative financial instruments.

The balance of Receivables at December 31, 2012 includes $46,546 related to the Homeward Acquisition. See Note 2.

Receivable balances are evaluated individually. The change in the allowance for credit losses for 2012 and the balance of the related receivables at those dates were as follows (the disclosure requirements for the allowance for credit losses do not apply to mortgage banking activities, including the long-term servicing of loans, such as the activities of our Servicing segment):

	Affordable Housing			Other			Total
Allowance for credit losses balance at December 31, 2011	$	5,019		$	1,262		$	6,281
Charge offs		(4,306	)		(387	)		(4,693	)
Provision		—			456			456
Other		—			(50	)		(50	)
Allowance for credit losses balance at December 31, 2012	$	713		$	1,281		$	1,994

Receivables balance at December 31, 2012	$	1,052		$	17,525		$	18,577

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Property, Plant and Equipment Disclosure [Text Block]

Note 10 PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

Note 10

PREMISES AND EQUIPMENT

Our premises and equipment are summarized as follows at December 31:

	2012			2011
Computer hardware and software	$	36,905		$	15,208
Leasehold improvements		14,960			6,894
Furniture and fixtures		10,369			8,559
Office equipment and other		9,108			5,932
		71,342			36,593
Less accumulated depreciation and amortization		(33,806	)		(29,243	)
	$	37,536		$	7,350

In 2012, we acquired premises and equipment with an estimated fair value of $16,803 as part of the Homeward Acquisition, consisting primarily of computer hardware and software. See Note 2.

Depreciation and other amortization expense amounted to $5,720, $4,160 and $7,512 for 2012, 2011 and 2010, respectively. Depreciation for 2011 includes a charge of $1,967 to write-down certain furniture and fixtures acquired from Litton that we ceased to use during the fourth quarter. Depreciation expense for 2010 includes a charge of $5,840 to write off leasehold improvements related to HomEq facilities that we vacated following termination of the former HomEq employees.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

Debt Securities Convertible Notes [Member]

NOTE 11 DEBT SERVICE ACCOUNTS

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Text Block]

NOTE 15

DEBT SECURITIES

Debt securities consisted of the following at December 31:

	2012		2011
3.25% Contingent Convertible Senior Unsecured Notes due August 1, 2024	$	—	$	56,435
10.875% Capital Securities due August 1, 2027		—		26,119
	$	—	$	82,554

3.25% Convertible Notes. In July 2004, OCN issued $175,000 aggregate principal amount of 3.25% Convertible Notes (the Convertible Notes) due August 1, 2024. On February 27, 2012, we provided notice of redemption to all the holders of the Convertible Notes stating our election to redeem all of the outstanding notes on March 28, 2012. Of the $56,435 outstanding principal balance of the Convertible Notes, $56,410 was converted to 4,635,159 shares of common stock at a conversion rate of 82.1693 per $1,000 (in dollars) principal amount (representing a conversion price of $12.17 per share) with 11 fractional shares settled in cash. The remaining $25 principal balance of the Convertible Notes was redeemed at a cash price of 100% of principal outstanding, plus accrued and unpaid interest. The Convertible Notes were senior general unsecured obligations not guaranteed by any of our subsidiaries.

10.875% Capital Securities. In August 1997, Ocwen Capital Trust (OCT) issued $125,000 of 10.875% Capital Securities (the Capital Securities). OCT invested the proceeds from issuance of the Capital Securities in 10.875% Junior Subordinated Debentures issued by Ocwen. The Junior Subordinated Debentures, which represent the sole assets of OCT, had a maturity date of August 1, 2027. On August 31, 2012, Ocwen redeemed the Junior Subordinated Debentures at a price of 102.719% of the $26,119 outstanding principal, plus accrued and unpaid interest. The redemption of the Junior Subordinated Debentures resulted in the mandatory redemption of the Capital Securities in an amount equal to the amount of the related Junior Subordinated Debentures being redeemed and at a redemption price equal to the redemption price of the Junior Subordinated Debentures, plus accumulated and unpaid distributions thereon to the date of redemption. We recognized a loss of $653 on the redemption primarily representing the excess of the redemption price over the outstanding principal balance of the Capital Securities. We reported this loss in Other, net in our Consolidated Statement of Operations. The trust entity which issued the Capital Securities in August 1997 (Ocwen Capital Trust I) was dissolved and terminated following the redemption.

For financial reporting purposes, we treat OCT as a subsidiary and, accordingly, the accounts of OCT are included in our consolidated financial statements. We consolidate OCT because we own all of the beneficial ownership interests represented by common securities that were issued by OCT (Common Securities) and have repurchased 79% of the Capital Securities that were originally issued. We eliminate intercompany balances and transactions with OCT, including the balance of Junior Subordinated Debentures outstanding, in our consolidated financial statements.

Debt Disclosure [Text Block]

NOTE 11

DEBT SERVICE ACCOUNTS

Under our advance funding facilities, we are contractually required to remit collections on pledged advances to the trustee within two days of receipt. The collected funds are not applied to reduce the related match funded debt until the payment dates specified in the indenture. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest. These funds are held in interest earning accounts in the name of the SPE created in connection with the match funded financing facility. The balances at December 31, 2012 and 2011 were $88,748 and $115,867, respectively.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Other Assets Disclosure [Text Block]

Note 12 OTHER ASSETS

12 Months Ended

Dec. 31, 2012

NOTE 12

OTHER ASSETS

Other assets consisted of the following at December 31:

	2012		2011
Loans held for sale, at lower of cost or fair value (1)	$	82,866	$	20,633
Asset purchase price deposit (2)		57,000		—
Interest earning collateral deposits (3)		31,710		27,191
Investment in unconsolidated entities (4)		25,187		23,507
Prepaid income taxes (5)		23,112		—
Prepaid lender fees and debt issuance costs, net (6)		14,389		27,113
Derivatives, at fair value (7)		10,795		—
Real estate, net		6,205		3,368
Loans – restricted for securitization investors (8)		—		58,560
Prepaid expenses and other		21,414		13,078
	$	272,678	$	173,450

(1)	These loans primarily represent non-performing subprime single-family residential loans that we do not intend to hold to maturity. The balances at December 31, 2012 and 2011 are net of valuation allowances of $14,659 and $14,257, respectively. In December 2012, we acquired non-performing mortgage loans with an aggregate UPB of $124,341 for cash consideration of $65,356. We sold these loans to Altisource Residential, LP in February 2013 for an insignificant gain.
(2)	In connection with the entry into an agreement on November 2, 2012 to acquire MSRs and related servicing advances from Residential Capital, LLC , OLS made an earnest money cash deposit of $57,000. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 31 for additional information regarding this transaction.
(3)	These balances include $25,829 and $19,623 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2012 and 2011, respectively.

(4)	The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note 2.
(5)	See Note 22 for additional information.
(6)	These balances relate to match funded liabilities and other secured borrowings of the Servicing segment. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.
(7)	See Note 19 for additional information regarding derivatives.
(8)	Loans – restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1—Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011.

Note 13 MATCH FUNDED LIABILITIES

12 Months Ended

Dec. 31, 2012

Transfers Accounted For As Secured Borrowings Associated Liabilities [Text Block]

NOTE 13

MATCH FUNDED LIABILITIES

Match funded liabilities, as more fully described in Note 1—Principles of Consolidation – Financings of Advances on Loans Serviced for Others, are comprised of the following:

							Balance Outstanding
Borrowing Type	Interest Rate		Maturity (1)	Amortization Date (1)		Unused Borrowing Capacity (2)		December 31, 2012			December 31, 2011

2011-Servicer Advance Revolving Trust 1 (3)	2.23	%	May 2043	May 2013		—		325,000			—
2011-Servicer Advance Revolving Trust 1 (3)	3.37 – 5.92	%	May 2043	May 2013		—		525,000			—
2012-Servicing Advance Revolving Trust 2 (3)	3.27 – 6.90	%	Sep. 2043	Sept. 2013		—		250,000			—
2012-Servicing Advance Revolving Trust 3 (3)	2.98	%	Mar. 2043	Mar. 2013		—		248,999			—
2012-Servicing Advance Revolving Trust 3 (3)	3.72 – 7.04	%	Mar. 2044	Mar. 2014		—		299,278			—
Promissory Note (4)	3.3875	%	Sept. 2013	Sept. 2013		—		—			1,784,043
Advance Receivable Backed Note Series 2009-3 (5)	4.14	%	July 2023	July 2012		—		—			210,000
Advance Receivable Backed Note Series 2010-1 (6)	3.59	%	Sep. 2023	Feb. 2011		—		—			40,000
Total fixed rate						—		1,648,277			2,034,043
Variable Funding Note Series 2009-2 (7)	1-Month LIBOR (1ML) + 350 bps		Nov. 2023	Nov. 2012		—		—			—
Variable Funding Note Series 2009-1 (8)	Commercial paper (CP) rate + 200 bps or 1ML plus 325 bps		Dec. 2023	Dec. 2012		—		—			11,687
Advance Receivable Backed Notes (9)	1ML + 285 bps		Apr. 2015	Apr. 2014		444,984		205,016			—
Advance Receivable Backed Notes Series 2012-ADV1 (9)	CP rate + 225 or 335 bps		Dec. 2043	Dec. 2013		17,288		232,712			—
Advance Receivable Backed Notes Series 2012-ADV1 (10)	1ML + 250 bps		June 2016	June 2014		5,905		94,095			—
Advance Receivable Backed Note (11)	1ML + 300 bps		Dec. 2015	Dec. 2014		862		49,138			—
2011-Servicing Advance Revolving Trust 1 (3)	1ML + 300 bps		May 2043	May 2013		320,367		204,633			—
2012-Servicing Advance Revolving Trust 2 (3)	1ML + 315 bps		Sep. 2043	Sept. 2013		127,997		22,003			—
2012-Servicing Advance Revolving Trust 3 (3)	1ML + 300 bps – 675 bps		Mar. 2044	Mar. 2014		232,651		40,626			—
2012-Homeward Agency Advance Funding Trust 2012-1 (3)	1ML + 300 bps		Sept. 2013	Sept. 2013		8,906		16,094			—
2012-Homeward DSF Advance Revolving Trust 2012-1 (3)	1ML + 450 bps		Feb. 2013	Feb. 2013		1,849		20,151			—
Class A-1 Term Note (12)	CP rate + 350 bps		Aug. 2043	Aug. 2013		—		—			340,185
Class A-2 Variable Funding Note (12)	CP rate + 350 bps		Aug. 2043	Aug. 2013		—		—			—
Class B Term Note (12)	CP rate + 525 bps		Aug. 2043	Aug. 2013		—		—			15,850
Class C Term Note (12)	CP rate + 625 bps		Aug. 2043	Aug. 2013		—		—			15,056
Class D Term Note (12)	1ML + 750 bps		Aug. 2043	Aug. 2013		—		—			11,638
Advance Receivable Backed Notes (13)	1ML + 200 bps		Jan. 2014	July 2013		—		—			130,492
Total variable rate						1,160,809		884,468			524,908
					$	1,160,809	$	2,532,745		$	2,558,951

Weighted average interest rate								3.52	%		3.50	%

(1)

The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In two advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed.

(2)	Unused borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility.
(3)	Advance facility assumed in the Homeward Acquisition. The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1,700,000 bridge facility which has an amortization date of August 14, 2013.
(4)	This note was issued in connection with the financing of advances acquired in connection with the acquisition of Litton on September 1, 2011. Following the sale of advance collateral to HLSS in December 2012, the outstanding balance was repaid, the facility was terminated and the remaining collateral was transferred to other facilities.
(5)	On July 19, 2012, the borrowing under this note was transferred to the Series 2009-1 variable funding note.
(6)	The amortization period for this note ended in January 2012, at which time the remaining balance of $40,000 was repaid. The advances pledged to this note were transferred to the Series 2009-1 variable funding note and were re-pledged under that note.
(7)	The facility was terminated on September 28, 2012.
(8)	Effective March 12, 2012, the lender transferred this note from its commercial paper conduit and began charging interest based on 1-Month LIBOR. On September 28, 2012, the remaining balance was repaid, and the facility was terminated.
(9)	These notes were issued to finance the advances acquired in connection with the 2012 Saxon MSR Transaction.
(10)	These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs.
(11)	This note was issued to finance advances on the small balance commercial loan servicing portfolio that we acquired as part of the Litton Acquisition.
(12)	These notes were issued in connection with the financing of advances acquired as part of the HomEq Acquisition. The Class D Term Note was repaid in full on March 2, 2012. On March 5, 2012, HLSS assumed the remaining balances.
(13)	On September 13, 2012, the remaining balance was repaid, the facility was terminated and the remaining collateral was transferred to another facility.

Note 14 LINES OF CREDIT AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2012

Secured Debt Other [Text Block]

NOTE 14

LINES OF CREDIT AND OTHER BORROWINGS

Lines of credit and other secured borrowings are comprised of the following:

						Balance Outstanding
Borrowings	Collateral	Interest Rate	Maturity		Unused Borrowing Capacity		December 31, 2012			December 31, 2011

Servicing:
SSTL (1)	(1)	1ML + 550 bps with a LIBOR floor of 150 bps (1)	Sept. 2016	$	—	$	314,229			546,250
Senior unsecured term loan (2)		1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps	March, 2017		—		75,000			—
Financing liability – MSRs pledged (3)	MSRs (3)	(3)(3)			—		303,705			—
Financing liability – MSRs pledged (4)	MSRs (4)	(4)(4)			—		2,603			—
Promissory note (5)	MSRs	1ML + 350 bps	May 2017		—		18,466			—
					—		714,003			546,250

Lending:
Master repurchase agreement (6)	Loans held for sale (LHFS)	1ML + 175 bps	Jan. 2013		36,878		88,122			—
Participation agreement (7)	LHFS	N/A	Feb. 2013		—		58,938			—
Master repurchase agreement (8)	LHFS	1ML + 200 bps	Feb. 2013		116,005		133,995			—
Master repurchase agreement	LHFS	1ML + 200 bps	Jul. 2013		192,980		107,020			—
					345,863		388,075			—

Corporate Items and Other
Securities sold under an agreement to repurchase (9)	Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes	Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps	Monthly		—		2,833			4,610
					345,863		1,104,911			550,860
Discount (1)					—		(8,232	)		(10,491	)
				$	345,863	$	1,096,679		$	540,369

Weighted average interest rate (10)							4.49	%		6.96	%

(1)	On September 1, 2011, we entered into a new SSTL facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition. This initial loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan. Subsequently, in order to fund a portion of the Homeward Acquisition, we entered into a Joinder Agreement with the lender in December 2012 that allowed us to borrow an additional $100,000, net of an original issue discount of $1,000, under this facility on essentially the same terms and conditions as the initial borrowing. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $16,875 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016. In addition, Ocwen is required to use 25% of the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal. Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold. The borrowings are secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. In February 2013, we repaid this loan in full.
(2)	Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note 27 for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013.
(3)	As part of the HLSS Transactions completed in 2012, Ocwen transferred to HLSS certain Rights to MSRs. However, because Ocwen has not yet transferred legal title to the MSRs, the sales were accounted for as a financing with the proceeds from the sale of the MSRs recorded as a financing liability. The financing liability is being amortized using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. The liability has no contractual maturity but will be amortized over the estimated life of the pledged MSRs. The balance of the liability is reduced each month based on the change in the estimated fair value of the pledged MSRs. See Note 3 for additional information regarding the HLSS Transactions.
(4)	We sold MSRs for certain loans to an unrelated third party in December 2012; however, we are required to repurchase the MSRs for any loans that cannot be refinanced by the purchaser under the federal government’s Home Affordable Refinance Program (HARP). As a result, the sale is being accounted for as a financing. The financing liability is being amortized using the interest method with the servicing income that is remitted to the purchaser representing payments of principal and interest.

(5)	This note was issued to finance the acquisition of MSRs from BANA. Prepayments of the balance on this note may be required if the borrowing base, as defined, falls below the amount of the note outstanding.
(6)	On January 16, 2013, we extended the Master Repurchase Agreement maturity date to March 19, 2013.
(7)	Under this participation agreement, the lender provides financing on an uncommitted basis for $50,000 to $90,000 at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. However, the transaction does not qualify for sales accounting treatment as is, therefore, accounted for as a financing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. In February 2013, we extended the participation agreement maturity date to April 30, 2013.
(8)	On January 25, 2013, we extended the Master Repurchase Agreement maturity date to May 3, 2013.
(9)	In August 2010, we obtained financing under a repurchase agreement for the Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $26,180 at December 31, 2012. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral.
(10)	Excludes the two financing liabilities arising for the sales of Rights to MSRs and MSRs that were accounted for as a financing and the financing liability arising from the sale of mortgage loan participations accounted for as a financing.

Note 16 OTHER LIABILITIES

12 Months Ended

Dec. 31, 2012

Other Liabilities Disclosure [Text Block]

NOTE 16

OTHER LIABILITIES

Other liabilities were comprised of the following at December 31:

	2012		2011
Accrued expenses (1)	$	106,376	$	47,198
Due to related parties (2)		45,034		4,274
Checks held for escheat		33,225		22,481
Liability for selected tax items (3)		22,702		4,524
Derivatives, at fair value (4)		18,658		20,276
Payable to servicing and subservicing investors (5)		9,973		28,824
Servicing liabilities (6)		9,830		9,662
Accrued interest payable		5,410		4,140
Secured borrowings – owed to securitization investors (7)		—		53,323
Other		26,456		8,137
	$	277,664	$	202,839

(1)	Includes $63,406 of accrued expenses attributable to Homeward, including $38,093 of accruals related to loan repurchase obligations and reserves for indemnification for servicing errors and for compensatory fees for foreclosures that exceed investor timelines.
(2)	See Note 27 for additional information regarding transactions with Altisource and HLSS.
(3)	See Note 22 for information on the liability for selected tax items.
(4)	See Note 19 for additional information regarding derivatives.
(5)	The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.
(6)	Our acquisition of MSRs during the second quarter of 2012 included a servicing liability with a fair value of $1,441. During, 2012, 2011 and 2010, amortization of servicing liabilities exceeded the amount of charges we recognized to increase servicing liability obligations by $1,274, $2,725 and $172, respectively. Amortization of mortgage servicing rights is reported net of this amount in the Consolidated Statement of Operations.
(7)	Secured borrowings – owed to securitization investors consisted of certificates representing beneficial ownership interests in four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1—Securitizations of Residential Mortgage Loans.

The balance of Other liabilities at December 31, 2012 includes $107,291 related to the Homeward Acquisition. See Note 2.

Note 17 MEZZANINE EQUITY

12 Months Ended

Dec. 31, 2012

Mezzanine Equity

NOTE 17

MEZZANINE EQUITY

Preferred Stock

On December 27, 2012, Ocwen issued 162,000 shares of Series A Perpetual Convertible Preferred Stock, having a par value of $0.01 per share as part of the consideration paid in the Homeward Acquisition. The following is a summary of the voting powers, preferences and relative, participating, optional and other special rights of the Preferred Shares:

	•	Ranking. The Preferred Shares shall, with respect to the payment of dividends, redemption and distributions upon the liquidation, winding up or dissolution of Ocwen rank senior to all classes of common stock.
	•	Dividends. Holders of the Preferred Shares are entitled to receive mandatory and cumulative dividends payable quarterly at the rate per share equal to the greater of (i) 3.75% per annum multiplied by $1,000 per share and (ii) in the event Ocwen pays a regular quarterly dividend on its common stock in such quarter, the rate per share payable in respect of such quarterly dividend on an as-converted basis. If Ocwen declares a special dividend on common stock, then any dividend shall be payable to the holders of the shares of common stock and the holders of the Preferred Shares on a pari passu, as-converted basis. Any such dividend may be paid either in cash or in Preferred Shares.
	•	Conversion. Each Preferred Share, together with any accrued and unpaid dividends, may be converted to common stock at the option of the holder at a conversion price equal to $31.79.
	•	Redemption. Ocwen may redeem the Preferred Shares commencing on December 27, 2014. The shares of Series A Preferred Stock are redeemable, at Ocwen’s option, in whole, or, from time to time, in part, at any time beginning on the second anniversary of the issue date of the Preferred Shares, payable through the issuance of shares of Common Stock. The redemption amount is any accrued and unpaid dividends plus: 103% of the liquidation preference of $1,000 for each Preferred Share plus from the second anniversary of the issue date and prior to the third anniversary; 102% of the liquidation preference from the third anniversary and prior to the fourth anniversary; 101% of the liquidation preference from the fourth anniversary and prior to the fifth anniversary; and the liquidation preference from the fifth anniversary.

	•	Voting. The holders of Preferred Shares shall be entitled to vote on all matters submitted to the stockholders for a vote, voting together with the holders of the common stock as a single class, with each share of common stock entitled to one vote per share and each Preferred Share entitled to one vote for each share of common stock issuable upon conversion of the Preferred Share as of the record date for such vote or, if no record date is specified, as of the date of such vote.
	•	Protective Provisions. So long as the Preferred Shares are outstanding, Ocwen will not, without obtaining the approval of the holders of a majority of the Preferred Shares (i) issue any preferred stock other than the Preferred Shares, any senior securities or any parity securities in excess of $325 million; (ii) amend or alter the Articles of Designation or Articles of Incorporation in any manner that under the Florida Business Corporation Act requires the prior vote as a separate class of the holders of the Preferred Shares; (iii) amend or otherwise alter the Articles of Designation or the Articles of Incorporation in any manner that would adversely affect the rights, privileges or preferences of the Preferred Shares; (iv) pay any dividend in cash to the common stock in respect of any quarterly dividend unless the dividend payable in respect of such quarter on the Preferred Shares is also paid in cash to the same extent; or (v) waive compliance with any provision of the Articles of Designation or take any actions intended to circumvent the provisions of the Articles of Designation.
	•	Change of Control; Liquidation Event.

	1.	Change of Control. In the case of any change in control of Ocwen, then, upon consummation of such transaction, each holder of Preferred Shares shall be entitled to receive in respect of such share the greater of (i) the liquidation preference of $1,000 plus accrued and unpaid dividends thereon, whether or not declared, if any, or (ii) the amount such holder would receive if such holder converted such Preferred Shares into the kind and amount of securities, cash or other assets receivable upon the consummation of the change in control by a holder of the number of shares of Common Stock into which such Preferred Shares might have been converted immediately prior to such change in control;
	2.	Liquidation Event. Upon any liquidation event, each holder of Preferred Shares will be entitled to payment out of Ocwen’s assets available for distribution, before any distribution or payment out of such assets may be made to the holders of any junior securities, and subject to the rights of the holders of any senior securities or parity securities upon liquidation and the rights of Ocwen’s creditors, of an amount equal to the liquidation preference of $1,000 plus accrued and unpaid dividends thereon, whether or not declared. After payment in full of the liquidation preference plus accrued and unpaid dividends thereon to which holders of Preferred Shares are entitled, such holders will not be entitled to any further participation in any distribution of Ocwen’s assets.

The holders of the Preferred Shares also received registration rights for the Preferred Shares and the shares of common stock issuable upon conversion.

We evaluated the Preferred Shares under ASC 480, Distinguishing Liabilities from Equity, and determined that the Preferred Shares should be accounted for as equity because the Preferred Shares are convertible at any time at the option of the holder into common stock and redemption of the shares by Ocwen is settled through the issuance of common stock. We also determined that the conversion feature of the Preferred Shares does not require separation from the host contract because the preponderance of the characteristics of the Preferred Shares indicates that the Preferred Shares are more akin to equity than debt and, therefore, are an equity host. Since an equity conversion option and an equity host are clearly and closely related, no further separation analysis is required under ASC 815, Derivatives and Hedging.

We also determined that the change of control provisions could result in a redemption not solely under Ocwen’s control. Therefore, classification of the Preferred Shares as “mezzanine” equity in the Consolidated Balance Sheets was more appropriate than classification as part of Stockholders’ equity.

We also determined that the conversion option of the Preferred Shares represented a Beneficial Conversion Feature (BCF) under ASC 470, Debt, because the conversion price of $31.79 was lower than the common stock price at the issue date of $33.495, determined using the average of the high and low prices for that date. The Preferred Shares are convertible into 5,095,942 shares of common stock. Therefore, the intrinsic value of the BCF — the difference between the price of common stock on the issue date and the conversion price multiplied by the number of shares of common stock into which the Preferred Shares can be converted — was $8,688 which we accounted for as a discount on the Preferred Shares with an offsetting increase in additional paid in capital. Because the Preferred Shares are optionally redeemable by Ocwen, we are amortizing the BCF through the second anniversary of the issued date, at which time Ocwen can first redeem the Preferred Shares.

For the period December 27, 2012 through December 31, 2012, we amortized $60 of the BCF discount on the Preferred Shares as a deemed dividend with an offsetting reduction in retained earnings. At December 31, 2012, we accrued the mandatory and cumulative dividends payable of $85 for the period.

The carrying value of our Preferred Shares reflects the following:

Initial issuance price on December 31, 2012	$	162,000
Discount for beneficial conversion feature		(8,688	)
Accretion of discount		60
Carrying value at December 31, 2012	$	153,372

Note 18 EQUITY

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

NOTE 18

EQUITY

Common Stock

On May 9, 2000, we announced that our Board of Directors authorized the repurchase of up to 6,000,000 of our issued and outstanding shares of common stock. To date, we have repurchased 431,100 shares under this plan (all in 2004). We may still purchase a total of 5,568,900 shares under this plan.

On November 9, 2011, OCN completed the public offering of 28,750,000 shares of common stock at a per share price of $13.00, including 3,750,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $354,445 from the offering after deducting underwriting fees and other incremental costs directly related to the offering.

On March 28, 2012, we converted $56,410 of the outstanding principal balance of the Convertible Notes to 4,635,159 shares of common stock. See Note 15

for additional information regarding the conversion.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows at December 31:

	2012		2011
Unrealized losses on cash flow hedges	$	6,310	$	7,760
Other		131		136
	$	6,441	$	7,896

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2012

NOTE 19

DERIVATIVE FINANCIAL INSTRUMENTS

Because many of our current derivative agreements are not exchange-traded, we are exposed to credit loss in the event of nonperformance by the counterparty to the agreements. We control this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of our contracts does not represent our exposure to credit loss.

The following table summarizes the changes in our holdings of derivatives during the year ended December 31, 2012:

	IRLCs		U.S. Treasury Futures			Forward MBS Trades			Interest Rate Caps			Foreign Exchange Forwards			Interest Rate Swaps

Beginning notional balance	$	—	$	—		$	—		$	1,600,000		$	46,200		$	1,393,685
Homeward Acquisition		1,112,519		109,000			1,638,979			1,025,000			—			432,500
Other additions		—		—			—			—			—			—
Maturities		—		—			—			—			—			(330,230	)
Terminations		—		—			—			(1,600,000	)		(46,200	)		—
Ending notional balance	$	1,112,519	$	109,000		$	1,638,979		$	1,025,000		$	—		$	1,495,955

Fair value of derivative assets (liabilities) at:
December 31, 2012	$	5,781	$	(1,258	)	$	(1,719	)	$	168		$	—		$	(10,836	)
December 31, 2011	$	—	$	—		$	—		$	3,600		$	(5,785	)	$	(14,491	)

Maturity		2013		Mar. 2013			Jan. 2013 – Mar. 2013			Feb. 2015 – May 2016			—			Feb. 2013 – Mar. 2032

Foreign Currency Exchange Rate Risk Management

We periodically enter into foreign exchange forward contracts to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL. Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant.

Interest Rate Management

Match Funded Liabilities

We entered into interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. These interest rate swap agreements require us to pay a fixed rate and receive a variable interest rate based on one-month LIBOR. At the time that we entered into the agreements, these swaps were designated as hedges for accounting purposes. We also purchased interest rate caps to minimize future interest rate exposure from increases in one-month LIBOR interest rates, as required by the certain of our advance financing arrangements.

Loans Held for Sale, at Fair Value

The mortgage loans held for sale which we carry at fair value are subject to interest rate and price risk from the loan funding date until the date the loan is sold into the secondary market. Generally, the fair value of a loan will decline in value when interest rates increase and will rise in value when interest rates decrease. To mitigate this risk, we enter into forward trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market.

IRLCs represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant, whereby the interest rate is set prior to funding. The loan commitment binds us (subject to the loan approval process) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The borrower is not obligated to obtain the loan, thus we are subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs. Our interest rate exposure on these derivative loan commitments is hedged with freestanding derivatives such as forward contracts. We enter into forward contracts with respect to fixed rate loan commitments.

MSRs, at Fair Value

The MSRs which we measure at fair value are subject to substantial interest rate risk as the mortgage notes underlying the MSRs permit the borrowers to prepay the loans. Therefore, the value of these MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). Although the level of interest rates is a key driver of prepayment activity, there are other factors

that influence prepayments, including home prices, underwriting standards and product characteristics. The amount and composition of derivatives used, if any, will depend on the exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates.

We enter into economic hedges including interest rate swaps, U.S. Treasury futures and forward contracts to minimize the effects of loss in value of these MSRs associated with increased prepayment activity that generally results from declining interest rates. These interest rate swap agreements generally require us to pay a variable interest rate based on LIBOR and receive a fixed rate. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specific price, with delivery or settlement at a specified date. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of financial instruments at a specified price, with delivery and settlement at a specified date.

The following summarizes our use of derivatives at December 31, 2012 and the gains (losses) on those derivatives for the year then ended. The table also indicates whether or not each derivative was designated as a hedge for accounting purposes at December 31, 2012:

Purpose	Expiration Date		Notional Amount		Fair Value (1)			Gains / (Losses)			Financial Statement Caption
Hedge the effect of changes in interest rates on interest expense on borrowings
Interest rate swaps (pay fixed, receive variable)
Not designated as hedges:
Hedge the effects of a change in 1ML on borrowing under an advance funding facility (2)		2013	$	250,000	$	(2,699	)	$	3,605		Other, net
Hedge the effects of a change in the lender’s CP rate and 1ML on borrowing under an advance funding facility (3)		2013		321,659		(2,958	)		3,352		Other, net / AOCL
Total not designated as hedges				571,659		(5,657	)		6,957

Designated as hedges:
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (5)		2015		201,892		(7,746	)		(6,246	)	AOCL
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (6)		2015		289,904		(2,211	)		(1,859	)	AOCL
Total designated as hedges				491,796		(9,957	)		(8,105	)
Total swaps				1,063,455		(15,614	)		(1,148	)

Interest rate caps
Not designated as hedges:
Hedge the effects of changes in 1ML on advance funding facilities (7)		2014		—		—			(3,195	)	Other, net
Hedge the effects of changes in 1ML on advance funding facilities (4)		2015-2016		1,025,000		168			—		Other, net
Total caps				1,025,000		168			(3,195	)
Total hedges of debt				2,088,455		(15,446	)		(4,343	)

Hedge the effect of changes in interest rates on MSRs measured at fair value
Not designated as hedges:
Interest rate swaps (pay variable, receive fixed) (4)		2014-2032		432,500		4,778			—		Other, net
U.S. Treasury futures (4)		2013		109,000		(1,258	)		—		Other, net
Forward MBS trades (4)		2013		314,000		67			—		Other, net
Total hedges of MSRs				855,500		3,587			—

*Hedge the effect of changes in interest rates on the value of mortgage loans held for sale and IRLCs*
Not designated as hedges:
Forward MBS trades (4)		2013		1,324,979		(1,786	)		(1,226	)	Other, net

IRLCs		2013		1,112,519		5,781			153		Loss on loans held for sale, net
Total derivatives			$	5,381,453	$	(7,864	)	$	(5,416	)

(1)	Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.
(2)	We discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization was scheduled to continue until the related advance facility matures in July 2013. In September 2012, we repaid the advance facility and wrote-off the remaining $2,317 of unamortized deferred losses in AOCL.
(3)	The hedging relationship was terminated when the advance facility was assumed on March 5, 2012 by HLSS. At that time, we wrote-off the $5,958 of deferred losses in AOCL. See Note 3 and Note 13 for additional information regarding the match funded liabilities assumed by HLSS.
(4)	Acquired in connection with the Homeward Acquisition.
(5)	Monthly settlements on this forward-starting swap begin June 2013.
(6)	Projected net settlements on the swap for the next twelve months total approximately $3,748 of payments to the counterparties.
(7)	Sold in November 2012.

Included in AOCL at December 31, 2012 and December 31, 2011, respectively, were $9,878 and $12,114 of deferred unrealized losses, before taxes of $3,568 and $4,354, respectively, on the interest rate swaps that we designated as cash flow hedges. Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31:

	2012			2011			2010
Gains (losses) on non-hedging derivatives (1)(2)	$	6,256		$	(4,488	)	$	17
Ineffectiveness of cash flow hedges		41			(1,393	)		(150	)
Write-off of losses in AOCL for a discontinued hedge relationship (3)		(4,633	)		(1,545	)		—
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note 3)		(5,958	)		—			—
	$	(4,294	)	$	(7,426	)	$	(133	)

(1)	Includes a gain of $3,359 during 2012 from the termination of foreign exchange forward contracts. Also includes a loss of $1,514 on the sale of the interest rate cap in 2012.
(2)	Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011.
(3)	Includes the write off in 2012 of the remaining $2,317 of unamortized losses when the borrowing under the related advance financing facility was repaid in full, and the facility was terminated.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

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-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Interest Income [Text Block]

Note 20 INTEREST INCOME

12 Months Ended

Dec. 31, 2012

NOTE 20

INTEREST INCOME

The following table presents the components of interest income for each category of our interest-earning assets for the years ended December 31:

	2012		2011		2010
Interest earning cash	$	963	$	756	$	1,190
Loans held for sale		2,946		2,291		3,398
Loans, net - restricted for securitization investors		4,420		5,829		6,271
	$	8,329	$	8,876	$	10,859

Note 21 INTEREST EXPENSE

12 Months Ended

Dec. 31, 2012

Interest Expense [Text Block]

NOTE 21

INTEREST EXPENSE

The following table presents the components of interest expense for each category of our interest-bearing liabilities for the years ended December 31:

	2012		2011		2010
Match funded liabilities	$	122,292	$	93,051	$	61,656
Lines of credit and other borrowings (1)		96,220		32,985		17,553
Debt securities:
3.25% Convertible Notes		153		1,834		1,834
10.875% Capital Securities		1,894		2,840		2,954
Secured borrowings – owed to securitization investors		616		670		632
Escrow deposits and other		2,280		1,390		1,294
	$	223,455	$	132,770	$	85,923

(1)	Includes interest expense of $54,710 in 2012 on the financing liability arising from the sales of Rights to MSRs to HLSS that were accounted for as financings. See Note 3 and Note 14 for additional information regarding these sales and the financing liability.

Note 22 INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

NOTE 22

INCOME TAXES

For income tax purposes, the components of income from continuing operations before taxes were as follows for the years ended December 31:

	2012		2011		2010
Domestic	$	176,075	$	118,708	$	33,394
Foreign		81,433		4,287		5,760
	$	257,508	$	122,995	$	39,154

The components of income tax expense (benefit) on continuing operations were as follows for the years ended December 31:

	2012			2011			2010
Current:
Federal	$	10,621		$	13,894		$	8,836
State		(759	)		(195	)		1,049
Foreign		2,968			1,079			2,033
		12,830			14,778			11,918
Deferred:
Federal		62,704			29,440			(6,953	)
State		(431	)		368			(145	)
Foreign		1,482			86			725
Provision for valuation allowance on deferred tax assets		—			—			—
		63,755			29,894			(6,373	)
Total	$	76,585		$	44,672		$	5,545

Income tax expense differs from the amounts computed by applying the U.S. Federal corporate income tax rate of 35% as follows for the years ended December 31:

	2012			2011			2010
Expected income tax expense at statutory rate	$	90,127		$	43,049		$	13,704
Differences between expected and actual income tax expense:
State tax, after Federal tax benefit		(1,184	)		254			610
Tax effect of Altisource Separation		—			—			749
Provision for (reversal of) liability for selected tax items		5,558			1,611			(9,126	)
Permanent differences		15			61			878
Foreign tax differential		(17,816	)		(716	)		(197	)
Provision-to-return and other		—			—			(580	)
Other		(115	)		413			(493	)
Actual income tax expense	$	76,585		$	44,672		$	5,545

Net deferred tax assets were comprised of the following at December 31:

	2012		2011
Deferred tax assets:
Mortgage servicing rights amortization	$	—	$	32,654
Net operating loss carryforward		16,068		18,078
Net unrealized gains and losses on securities		2,702		11,828
Partnership losses		11,036		9,960
Bad debt and allowance for loan losses		6,551		8,020
Accrued other liabilities		2,925		5,122
Interest rate swaps		3,813		4,371
Tax residuals and deferred income on tax residuals		4,175		3,941
Stock-based compensation expense		3,127		2,874
Accrued incentive compensation		6,210		2,755
Foreign deferred assets		1,805		2,512
Accrued lease termination costs		1,887		1,910
Intangible asset amortization		2,070		1,641
Valuation allowance on real estate		386		884
Deferred income or loss on servicing advance receivables		78,832		—
Capital losses		665		—
Other		7,339		8,608
		149,591		115,158
Deferred tax liabilities:
Mortgage servicing rights amortization		56,265		—
Deferred income or loss on servicing advance receivables		—		7,030
Other		1,190		160
		57,455		7,190
Net deferred tax assets	$	92,136	$	107,968

We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that the deferred tax asset can be realized in future periods. Among the factors considered in this evaluation are estimates of future taxable income, future reversals of temporary differences, tax character and the impact of tax planning strategies that may be implemented, if warranted. As a result of this evaluation, we concluded that no valuation allowance was necessary at December 31, 2012 and 2011.

We recognized total interest and penalties of $(75), $1,257 and $182 in 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, accruals for interest and penalties were $1,561 and $1,636, respectively. As of December 31, 2012 and 2011, we had a total liability for selected tax items of $21,140 and $4,524, respectively, all of which if recognized would affect the effective tax rate.

Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2008 through the present and our India corporate tax returns for the years ended March 31, 2004 through the present. Our U.S. federal tax return for the years ended December 31, 2008 and 2009 are currently under examination. A reconciliation of the beginning and ending amount of the liability for selected tax items is as follows for the years ended December 31:

	2012			2011
Balance at January 1	$	4,524		$	2,913
Additions based on tax positions related to current year		17,396			—
Additions for tax positions of prior years		875			1,817
Reductions for tax positions of prior years		—			(206	)
Lapses in statutes of limitation		(93	)		—
Balance at December 31	$	22,702		$	4,524

At December 31, 2012, we had a net operating loss carryforward tax benefit of $45,909 that related to realized built-in losses from the acquisition of Ocwen Asset Investment Corporation in 1999. Utilization of these carryforwards is subject to an annual IRC section 382 limitation of $5,742. These carryforwards will expire beginning 2019 through 2024. We have a $1,725 capital loss carry forward. We have no remaining capital loss carryforwards or tax credit carryforwards related to low-income housing tax credits.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 23 DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

NOTE 23

DISCONTINUED OPERATIONS

On December 3, 2009, we finalized and consummated the transaction to dispose of our investment in Bankhaus Oswald Kruber GmbH & Co. KG (BOK), a German banking entity, for proceeds of $11,443 and recognized a pre-tax gain of $4,034 on the disposition. Management concluded that BOK met and continued to meet the definition of a discontinued operation through the date of disposition. Accordingly, the results of BOK are classified as discontinued in the accompanying consolidated financial statements. For segment reporting purposes, the operations of BOK are included in Corporate Items and Other. In 2010, we recorded an income tax benefit of $4,383 to recognize the effect of additional tax losses.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Earnings Per Share [Text Block]

Note 24 BASIC AND DILUTED EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

NOTE 24

BASIC AND DILUTED EARNINGS PER SHARE

Basic EPS excludes common stock equivalents and is calculated by dividing net income attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the year. We calculate diluted EPS by dividing net income attributable to OCN, as adjusted to add back preferred stock dividends and interest expense net of income tax on the Convertible Notes, by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options, restricted stock awards, the Preferred Shares and the Convertible Notes. The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31:

	2012		2011		2010
Basic EPS:
Net income attributable to Ocwen common stockholders	$	180,778	$	78,331	$	37,984

Weighted average shares of common stock		133,912,643		104,507,055		100,273,121

Basic EPS	$	1.35	$	0.75	$	0.38

Diluted EPS:
Net income attributable to Ocwen common stockholders	$	180,778	$	78,331	$	37,984
Preferred stock dividends (1)		—		—		—
Interest expense on Convertible Notes, net of income tax (2)		107		1,187		1,122
Adjusted net income attributable to Ocwen	$	181,885	$	79,518	$	39,106

Weighted average shares of common stock		133,912,643		104,507,055		100,273,121
Effect of dilutive elements:
Preferred Shares (1)		—		—		—
Convertible Notes (2)		1,008,891		4,637,224		4,637,224
Stock options		3,593,419		2,711,682		2,571,282
Common stock awards		6,326		—		1,388
Dilutive weighted average shares of common stock		138,521,279		111,855,961		107,483,015

Diluted EPS	$	1.31	$	0.71	$	0.36

Stock options excluded from the computation of diluted EPS:
Anti-dilutive(3)		143,125		27,031		20,000
Market-based(4)		1,535,000		468,750		1,615,000

(1)	The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. We assumed no conversion to common shares for 2012 because the effect was anti-dilutive.
(2)	Prior to the redemption of the Convertible Notes in March 2012, we also computed their effect on diluted EPS using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, were added back to net income. As disclosed in Note 15, we issued 4,635,159 shares of common stock upon conversion of $56,410 of the Convertible Notes.
(3)	These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock.
(4)	Shares that are issuable upon the achievement of certain performance criteria related to OCN’s stock price and an annualized rate of return to investors. See Note 25 for additional information regarding these market-condition options.

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS

12 Months Ended

Dec. 31, 2012

Compensation and Employee Benefit Plans [Text Block]

NOTE 25

EMPLOYEE COMPENSATION AND BENEFIT PLANS

We maintain a defined contribution plan to provide post retirement benefits to our eligible employees. We also maintain additional compensation plans for certain employees. We designed these plans to facilitate a pay-for-performance policy, further align the interests of our officers and key employees with the interests of our shareholders and assist in attracting and retaining employees vital to our long-term success. These plans are summarized below.

Retirement Plan

We maintain a defined contribution 401(k) plan. We match 50% of each employee’s contributions, limited to 2% of the employee’s compensation. Our contributions to the 401(k) plan were $399, $238 and $233 for the years ended December 31, 2012, 2011 and 2010, respectively.

Annual Incentive Plan

The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan (the AIP) is our primary incentive compensation plan for executives and other key employees. Under the terms of the AIP, participants can earn cash and equity-based awards as determined by the Compensation Committee of the Board of Directors (the Committee). The awards are generally based on objective performance criteria established by the Committee which includes corporate profitability, growth in our core businesses, meeting budget objectives and achieving cost savings through Six Sigma initiatives. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. For the past six years, we have awarded annual incentive compensation entirely in cash. We recognized $7,192, $9,472 and $6,031 of compensation expense during 2012, 2011 and 2010, respectively, related to annual incentive compensation awarded in cash.

In 2007, the stockholders approved the 2007 Equity Incentive Plan (the 2007 Equity Plan) to replace the 1991 Non-Qualified Stock Option Plan. The 2007 Equity Plan authorizes the grant of stock options, restricted stock or other equity-based awards to employees. At December 31, 2012, there were 8,895,599 shares of common stock remaining available for future issuance under the 2007 Equity Plan. In 2008, 2009, 2011 and 2012, we awarded stock options to certain members of senior management under the 2007 Equity Plan. These awards had the following characteristics in common:

Type of Award	Percent of Options Awarded	Vesting Period
Service Condition:
Time-Based	25%	Ratably over four years (¼ on each of the four anniversaries of the grant date)
Market Condition:
Performance-Based	50	Over three years beginning with ¼ vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Extraordinary Performance-Based	25	Over three years beginning with ¼ vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Total award	100%

Stock options awarded prior to 2008 consist of service condition awards that generally vest ratably over a five–year period including the award year. The contractual term of all options granted is ten years from the grant date, except where employment terminates by reason of retirement, in which case the time-based options will terminate no later than three years after such retirement or the end of the option term, whichever is earlier. The terms of the market-based options do not include a retirement provision.

Stock option activity for the years ended December 31:

	2012					2011					2010
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Outstanding at beginning of year		7,894,728		$	5.48		8,084,953		$	5.03		9,278,581		$	4.97
Granted (1)		2,160,000			23.92		545,000			12.83		—			—
Exercised (2)(3)		(1,116,549	)		3.56		(735,225	)		6.01		(774,345	)		4.19
Forfeited		—			—		—			—		(419,283	)		5.21
Outstanding at end of year(4)(5)		8,938,179			9.93		7,894,728			5.48		8,084,953			5.03
Exercisable at end of year (4)(5)(6)		5,569,432			5.04		4,947,228			4.91		4,122,453			5.13

(1)	Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee’s approval. See Note 27 for additional information regarding Mr. Erbey’s stock and stock option holdings.
(2)	The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively.
(3)	In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options.
(4)	Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable.
(5)	At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively.
(6)	The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively.

Compensation expense related to options is measured based on the grant-date fair value of the options using an appropriate valuation model based on the vesting condition of the award. The fair value of the time-based options was determined using the Black-Scholes options pricing model, while a lattice (binomial) model was used to determine the fair value of the market-based options. Lattice (binomial) models incorporate ranges of assumptions for inputs.

The following assumptions were used to value the 2012 and 2011 stock option awards as of the grant dates:

	2012			2011
		Black-Scholes	Binomial		Black-Scholes		Binomial
Risk-free interest rate		1.20 – 1.60%	0.70% – 3.06%		1.57	%	0.35% – 2.74%
Expected stock price volatility (1)		40% – 42%	6.87% – 42%		41	%	30% – 41%
Expected dividend yield		—	—		—		—
Expected option life (in years) (2)		6.50	4.50 – 6.50		6.50		4.25 & 5.75
Contractual life (in years)		—	10		—		10
Fair value		$6.49 – $10.48	$3.41 – $8.87	$	5.51		$4.66 & $4.09

(1)

We estimate volatility based on the historical volatility of OCN’s common stock over the most recent period that corresponds with the estimated expected life of the option.

(2)

For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award.

The following table sets forth equity-based compensation related to stock options and stock awards and the related excess tax benefit for the years ended December 31:

	2012		2011		2010
Equity-based compensation expense:
Stock option awards	$	2,776	$	926	$	1,088
Stock awards		158		—		—
Excess tax benefit related to share-based awards		11,031		2,142		3,157

As of December 31, 2012, unrecognized compensation costs related to non-vested stock options amounted to $18,308, which will be recognized over a weighted-average remaining requisite service period of 2.68 years.

Note 26 BUSINESS SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

NOTE 26

BUSINESS SEGMENT REPORTING

Our business segments reflect the internal reporting that we use to evaluate operating performance of services and to assess the allocation of our resources. A brief description of our current business segments is as follows:

Servicing. Through this segment, we provide residential and commercial mortgage loan servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. In most cases, we provide these services either because we purchased the MSRs from the owner of the mortgage or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Subprime loans represent the largest category, or stratum of the residential loans that we service. Subprime loans represent residential loans that were made to borrowers who generally did not qualify under GSE guidelines (nonconforming loans) or have subsequently become delinquent. This segment is primarily comprised of our core residential servicing business.

Lending. In addition to acquiring Homeward’s residential servicing business, we also acquired its loan origination platform as part of the Homeward Acquisition which closed on December 27, 2012. The Lending segment is focused on originating and purchasing agency-conforming residential mortgage loans mainly through our correspondent lending business. In addition, in 2012, Homeward commenced a direct lending business to initially pursue refinancing opportunities from its existing portfolio, where permitted. The loans are typically sold shortly after origination into a liquid market on a servicing retained basis and are measured at fair value.

Corporate Items and Other. Corporate Items and Other includes items of revenue and expense that are not directly related to a business, business activities that are individually insignificant, interest income on short-term investments of cash, corporate debt and certain corporate expenses. Business activities that are not considered to be of continuing significance include subprime loans held for sale (at lower of cost or fair value), investments in unconsolidated entities and affordable housing investment activities. Corporate Items and Other also includes the diversified fee-based business that we acquired as part of the Homeward Acquisition on December 27, 2012 and expect to sell to Altisource in March 2013. Services provided by this business include property valuation, REO management, title and closing and advisory.

We allocate interest income and expense to each business segment for funds raised or for funding of investments made, including interest earned on cash balances and short-term investments and interest incurred on corporate debt. We also allocate expenses generated by corporate support services to each business segment.

Financial information for our segments is as follows:

	Servicing			Lending			Corporate Items and Other			Corporate Eliminations			Business Segments Consolidated
Results of Operations
For the year ended December 31, 2012
Revenue (1) (2)	$	840,648		$	141		$	5,122		$	(905	)	$	845,006
Operating expenses (1) (3)		344,333			409			19,667			(484	)		363,925
Income (loss) from operations		496,315			(268	)		(14,545	)		(421	)		481,081
Other income (expense):
Interest income		9			309			8,011			—			8,329
Interest expense		(221,948	)		(514	)		(993	)		—			(223,455	)
Other (1) (2)		(13	)		214			(9,069	)		421			(8,447	)
Other income (expense), net		(221,952	)		9			(2,051	)		421			(223,573	)
Income (loss) from continuing operations before income taxes	$	274,363		$	(259	)	$	(16,596	)	$	—		$	257,508
For the year ended December 31, 2011
Revenue (1) (2)	$	494,871		$	—		$	2,348		$	(1,289	)	$	495,930
Operating expenses (1) (3) (4)		231,238			—			8,971			(625	)		239,584
Income (loss) from operations		263,633			—			(6,623	)		(664	)		256,346
Other income (expense):
Interest income		110			—			8,766			—			8,876
Interest expense		(132,574	)		—			(196	)		—			(132,770	)
Other (1) (2)		4,711			—			(14,832	)		664			(9,457	)
Other income (expense), net		(127,753	)		—			(6,262	)		664			(133,351	)
Income (loss) from continuing operations before income taxes	$	135,880		$	—		$	(12,885	)	$	—		$	122,995

For the year ended December 31, 2010
Revenue (1) (2)	$	359,798		$	—		$	2,112		$	(1,529	)	$	360,381
Operating expenses (1) (3) (4)		200,108			—			37,130			(764	)		236,474
Income (loss) from operations		159,690			—			(35,018	)		(765	)		123,907
Other income (expense):
Interest income		207			—			10,652			—			10,859
Interest expense		(80,514	)		—			(5,409	)		—			(85,923	)
Other (1) (2) (5) (6)		(1,188	)		—			(9,266	)		765			(9,689	)
Other income (expense), net		(81,495	)		—			(4,023	)		765			(84,753	)
Income (loss) from continuing operations before income taxes	$	78,195		$	—		$	(39,041	)	$	—		$	39,154

	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
Total Assets
December 31, 2012	$	4,461,755	$	551,733	$	658,394	$	—	$	5,671,882

December 31, 2011	$	4,301,371	$	—	$	426,653	$	—	$	4,728,024

December 31, 2010	$	2,495,966	$	—	$	425,443	$	—	$	2,921,409

(1)	Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered.
(2)	Servicing has a contractual right to receive interest income on float balances. However, Corporate controls investment decisions associated with the float balances. Accordingly, Servicing receives revenues generated by those investments that are associated with float balances but are reported in Corporate Items and Other. Gains and losses associated with corporate investment decisions are recognized in Corporate Items and Other.
(3)	Depreciation and amortization expense are as follows:

	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
For the year ended December 31, 2012:
Depreciation expense	$	1,469	$	8	$	4,243	$	5,720
Amortization of MSRs		72,897		—		—		72,897
Amortization of debt discount		3,259		—		—		3,259
Amortization of debt issuance costs – SSTL		3,718		—		—		3,718

For the year ended December 31, 2011:
Depreciation expense	$	2,410	$	—	$	1,750	$	4,160
Amortization of MSRs		42,996		—		—		42,996
Amortization of debt discount		8,853		—		—		8,853
Amortization of debt issuance costs – SSTL		9,764		—		—		9,764

For the year ended December 31, 2010:
Depreciation expense	$	5,916	$	—	$	1,596	$	7,512
Amortization of MSRs		31,455		—		—		31,455
Amortization of debt discount		5,217		—		172		5,389
Amortization of debt issuance costs – SSTL		2,086		—		—		2,086

(4)	Operating expenses for 2011 and 2010 include non-recurring transaction-related expenses associated with the Litton and HomEq acquisitions of $50,340 and $52,603, respectively, recorded in the Servicing segment.
(5)	Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects.
(6)	Other income (expense) for 2010 includes losses on auction rate securities of $7,909 recorded in Corporate Items and Other.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Note 27 RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2012

NOTE 27

RELATED PARTY TRANSACTIONS

Relationship with Executive Chairman of the Board of Directors

Ocwen’s Executive Chairman of the Board of Directors, William C. Erbey, also serves as Chairman of the Board for both Altisource and HLSS. As a result, he has obligations to Ocwen as well as to Altisource and HLSS. Mr. Erbey currently owns approximately 13% of the common stock of Ocwen, approximately 23% of the common stock of Altisource and approximately 2% of the common stock of HLSS. At December 31, 2012, Mr. Erbey also held 4,684,177 options to purchase OCN common stock, of which 2,384,177 were exercisable. He also held 894,728 options to purchase Altisource (ASPS) common stock, including 844,728 which were exercisable.

Mr. Erbey has relocated to St. Croix, USVI to serve as Chairman and CEO of OMS. On August 21, 2012, the Ocwen Board of Directors approved Ocwen’s purchase of Mr. Erbey’s residence in Atlanta, Georgia, for his cost-basis in the home of $6,477. Ocwen also incurred approximately $24 of related transaction costs. The transaction is consistent with Ocwen’s standard senior executive relocation policy and practice. We have classified our investment in this property as real estate held for sale, a component of Other assets. We account for the excess of cost over fair value (less costs to sell) as a valuation allowance and include changes in the valuation allowance in Loss on loans held for sale, net.

Relationship with Altisource

For purposes of governing certain of the ongoing relationships between Ocwen and Altisource after the Separation, and to provide for an orderly transition to the status of two independent companies, we entered into certain agreements with Altisource. Under the Transition Services Agreement, the companies provide to each other services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, law, strategic planning, compliance and other areas. The Transition Services Agreement was amended on August 10, 2011, in order to extend the initial twenty-four month term for an additional twelve months, and it expired on August 10, 2012.

Under the Services Agreement, Altisource provides various business process outsourcing services, such as valuation services and property preservation and inspection services, among other things. Altisource also provides certain technology products and support services to Ocwen under the Technology Products Services Agreement and the Data Center and Disaster Recovery Services Agreement both of which had an initial term of eight years from the spin-off date. In addition, under the Data Access and Services Agreement entered into in the third quarter of 2011, Ocwen has agreed to make available to Altisource certain data from Ocwen’s servicing portfolio in exchange for a per asset fee.

On August 10, 2012, OMS entered into a Support Services Agreement with Altisource setting forth certain services OMS and Altisource will provide to each other which are similar to the services the parties provided to each other pursuant to the Transition Services Agreement. The Support Services Agreement has an initial term of five years. OMS also entered into a Services Agreement, a Technology Products Services Agreement and a Center and Disaster Recovery Services Agreement under which Altisource will provide services similar to those provided under the similarly titled agreements entered into in connection with the Separation. These agreements all have an initial term of eight years.

Certain services provided by Altisource under these contracts are charged to the borrower and/or loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales.

Our business is currently dependent on many of the services and products provided under these long-term contracts which are effective for up to eight years with renewal rights. We believe the rates charged under these agreements are market rates as they are materially consistent with one or more of the following: the fees charged by Altisource to other customers for comparable services and the rates Ocwen pays to or observes from other service providers.

In addition to the revenues and expenses we recorded associated with the agreements discussed above, during 2010 and 2011 we sold certain equipment to Altisource that we had acquired from HomEq and Litton. As disclosed in Note 2, these assets consisted primarily of computer hardware and software and furniture and fixtures and were sold for cash proceeds equal to the acquisition fair value, as adjusted. As a result, we recognized no gain or loss on these sales. Also, in 2010 we entered into an agreement to sublease from Altisource our principal executive office space in Atlanta, Georgia.

As disclosed in Note 1, Ocwen and Altisource each hold a 49% equity interest in Correspondent One, a company that facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2012, Ocwen had invested $13,432 in Correspondent One.

On December 27, 2012, we entered into a senior unsecured term loan facility agreement (the Unsecured Loan Agreement) with Altisource and borrowed $75 million. The proceeds of this loan were used to fund a portion of the Homeward Acquisition. Borrowings under the Unsecured Loan Agreement bear interest at a rate equal to the one-month Eurodollar Rate (1-Month LIBOR) plus 675 basis points with a Eurodollar Rate floor of 150 basis points.

The final maturity date for the Unsecured Loan Agreement is March 1, 2017, and it does not provide for any scheduled amortization. Borrowings under the Unsecured Loan Agreement must be repaid when the SSTL is paid in full. However, if the SSTL is not paid off before October 31, 2013, Altisource may require that we convert all or a portion of the outstanding principal and unpaid interest accrued on the Unsecured Loan into any of the following, at Altisource’s discretion (i) an investment in or of Homeward, (ii) property or assets of Homeward, (iii) equity interests of Homeward, or (iv) if Altisource and Ocwen agree, any other assets of Ocwen or its subsidiaries. Any such conversion will be based upon mutually agreeable terms and conditions, including without limitation, conversion price, as reasonably negotiated in good faith between Ocwen and Altisource. Unless Altisource otherwise agrees in writing, the conversion must take place on or prior to November 15, 2013. The Unsecured Loan Agreement contains provisions equivalent to those found in the SSTL with respect to covenants and events of default.

Relationship with HLSS

As disclosed in Note 3, Ocwen and HLSS Management entered into an agreement to provide to each other certain professional services including valuation analysis of potential MSR acquisitions, treasury management services and other similar services, legal, licensing and regulatory compliance support services, risk management services and other similar services.

The following table summarizes our transactions with related parties for the years ended December 31, and amounts receivable from or payable to related parties:

	2012		2011		2010
Revenues and Expenses:
Altisource:
Revenues	$	16,532	$	12,242	$	13,520
Expenses		28,987		23,226		20,082
HLSS:
Revenues	$	195	$	—	$	—
Expenses		2,432		—		—

	December 31, 2012			December 31, 2011
Net Receivable (Payable)
Altisource	$	(5,971	)	$	(1,965	)
HLSS		(25,524	)		—
	$	(31,495	)	$	(1,965	)

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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Regulatory Requirements [Text Block]

Note 28 REGULATORY REQUIREMENTS

12 Months Ended

Dec. 31, 2012

NOTE 28

REGULATORY REQUIREMENTS

Our business is subject to extensive regulation by federal, state and local governmental authorities, including the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the SEC and various state agencies that license, audit and conduct examinations of our mortgage originations, servicing and collection activities in a number of states. The CFPB asserts supervisory authority (including the authority to conduct examinations) over Ocwen and its affiliates, including Homeward. From time to time, we also receive requests from federal, state and local agencies for records, documents and information relating to our policies, procedures and practices regarding our loan origination, loan servicing and debt collection business activities. We incur significant ongoing costs to comply with new and existing laws and governmental regulation of our business.

We must comply with a number of federal, state and local consumer protection laws including, among others, the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, Homeowners Protection Act, the Federal Trade Commission Act and, more recently, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and state mortgage origination, mortgage servicing and foreclosure laws. These laws apply to loan origination, loan servicing, debt collection, use of credit reports, safeguarding of non−public personally identifiable information about our customers, foreclosure and claims handling, investment of and interest payments on escrow balances and escrow payment features, and mandate certain disclosures and notices to borrowers. These requirements can and do change as statutes and regulations are enacted, promulgated or amended.

On January 17, 2013, the CFPB issued a set of new rules under the Dodd-Frank Act that will require mortgage servicers and mortgage holders, as applicable, to (i) with respect to adjustable-rate mortgage transactions, provide notices to borrowers in advance of any adjustment to the initial interest rate the borrower’s mortgage loan and in advance of any later adjustments to the interest rate resulting in changes in the borrower’s monthly payment, (ii) provide enhanced disclosures to borrowers relating to mortgage servicing transfers, (iii) provide monthly mortgage statements to borrowers that explicitly breakdown break down outstanding principal, due date, amount due (principal, interest and escrow amounts), transaction activity in the last payment cycle and past payment history, (iv) establish a reasonable basis for requiring lender-placed, or “force-placed” insurance before charging a fee for it and provide advance notices and reminder notices to borrowers before purchasing force place insurance, (v) provide early outreach (by live contact and written notice) to delinquent borrowers regarding options to avoid foreclosure, (vi) provide that payments be credited to borrower accounts the day they are received, (vii) require borrower account records be kept current, (viii) provide increased accessibility to servicing staff during loss mitigation efforts, (ix) adopt and follow prescribed loss mitigation timelines for receipt, evaluation and denial or approval of loss mitigation or foreclosure avoidance options, and (x) investigate errors and respond to borrower notices of error within 30 days and timely respond to borrower requests for loan account information, among other things. The new rules are scheduled to go into effect on January 10, 2014 and could cause us to modify servicing processes and procedures and to incur additional costs in connection therewith. Certain of these requirements, if not met, could result in private causes of action under the applicable federal laws (for example, TILA or RESPA) or administrative or civil fines or penalties imposed by regulators with supervisory authority over Ocwen, such as the CFPB.

The CFPB has also promulgated an extensive array of final regulations under the Dodd-Frank Act governing mortgage loan originations. As with the mortgage servicing regulations, the CFPB finalized these regulations in January 2013 to become effective in January 2014. Compliance with these regulations likely will lead to increased costs and expenditures for compliance staff, systems and resources. The CFPB’s recent mortgage origination regulations include rules:

	•	Requiring the loan originator to determine, prior to consummation, the borrower’s reasonable ability to repay the loan. Legal liability for violations of this rule is limited if the lender follows certain procedures related to determination of the borrower’s repayment ability based on verified documentation. The rule provides a so-called “safe harbor” from liability for loans eligible for purchase by Fannie Mae or Freddie Mac or for insurance or guaranty under certain U.S. government lending programs.
	•	Expanding the coverage of, lowering the pricing thresholds with respect to and expanding limitations and prohibitions on high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA).
	•	Amending the Federal Reserve Board’s loan originator compensation and anti-steering regulation. This rule, inter alia, follows the Federal Reserve Board rule in prohibiting loan originator compensation based on a residential mortgage transaction’s terms. This rule also places restrictions on the payment of bonuses or other incentive compensation to individual loan originators employed by mortgage lenders.
	•	Implementing the Dodd-Frank Act’s concerning appraisals for higher-priced mortgage transactions and a rule requiring escrows for higher-priced mortgage transactions.

There are a number of foreign laws and regulations that are applicable to our operations in India and Uruguay, including acts that govern licensing, employment, safety, taxes, insurance, and the laws and regulations that govern the creation, continuation and the winding up of companies as well as the relationships between the shareholders, the company, the public and the government in both countries.

Note 29 COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

NOTE 29

COMMITMENTS AND CONTINGENCIES

Litigation Contingencies

In September 2006, the Bankruptcy Trustee in Chapter 7 proceedings involving American Business Financial Services, Inc. (ABFS) brought an action against multiple defendants, including Ocwen, in Bankruptcy Court. The action arises out of Debtor-in-Possession financing to ABFS by defendant Greenwich Capital Financial Products, Inc. and the subsequent purchases by Ocwen of MSRs and certain residual interests in mortgage-backed securities previously held by ABFS. The Trustee filed an amended complaint in March 2007 alleging various claims against Ocwen including turnover, fraudulent transfers, accounting, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, fraud, civil conspiracy and conversion. The Trustee seeks compensatory damages in excess of $100,000 and punitive damages jointly and severally against all defendants. In April 2008, Ocwen filed an answer denying all charges and a counterclaim for breach of contract, fraud, negligent misrepresentation and indemnification in connection with the MSR purchase transaction. On August 30, 2012, the Bankruptcy Court entered an order granting Ocwen’s motion for partial summary judgment and denying the Trustee’s motion for partial summary judgment. This order effectively rejects the bulk of the Trustee’s damage claims against Ocwen. In light of this order, the parties entered into a definitive written settlement agreement that provides for a final resolution and termination of this matter. This settlement, which is subject to the approval of the Bankruptcy Court, will not have a material effect on our financial condition, results of operations or cash flows.

We are subject to various other pending legal proceedings, including those subject to loss sharing and indemnification provisions of our various acquisitions. In our opinion, the resolution of those proceedings will not have a material effect on our financial condition, results of operations or cash flows.

Tax Matters

India tax authorities issued income tax assessment orders with respect to assessment years 2006 - 2007 and 2007 - 2008. The proposed adjustments would impose upon OFSPL additional tax and interest of INR 156,718 ($2,809), and penalties may be assessed. Ocwen and OFSPL intend to vigorously contest the assessments and do not believe they have violated any statutory provision or rule. OFSPL has submitted appeals in both cases to the India Income Tax Appellate Tribunal and petitioned for Competent Authority assistance under the Mutual Agreement Procedures of the U.S./India income tax treaty. OFSPL has furnished bank guarantees of INR 205,473 ($3,684) related to transfer pricing matters, paid INR 7,647 ($137) towards non-transfer pricing issues and obtained abeyance on the demand of INR 4,376 ($78) relating to non-transfer pricing matters. Due to uncertainties inherent in the appeals processes, Ocwen and OFSPL cannot currently estimate any additional exposure beyond the amount currently assessed and cannot predict when these tax matters will be resolved. Competent Authority relief should preserve Ocwen’s right to offset any potential increase in India tax against Ocwen’s U.S. taxes.

Regulatory Contingencies

We are subject to a number of pending federal and state regulatory investigations, examinations, inquiries, requests for information and/or other actions. In July 2010, OLS received two subpoenas from the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae in connection with ten private label mortgage securitization transactions where Freddie Mac and Fannie Mae have invested. The transactions include mortgage loans serviced but not originated by OLS or its affiliates. On November 24, 2010, OLS received a Civil Investigative Demand (CID) from the FTC requesting documents and information regarding various servicing activities. On June 6, 2012, the FTC notified OLS that it had referred this CID to the CFPB. On November 7, 2011, OLS received a CID from the Attorney General’s Office of the Commonwealth of Massachusetts requesting documents and information regarding certain foreclosures executed in Massachusetts. On January 18, 2012, OLS received a subpoena from the New York Department of Financial Services (NY DFS) requesting documents regarding OLS’ policies, procedures and practices regarding lender-placed or “force-placed” insurance which is required to be provided for borrowers who allow their hazard insurance policies to lapse. Separately, on December 5, 2012, we entered into a Consent Order with the NY DFS in which we agreed to the appointment of an independent Monitor to oversee our compliance with the Agreement on Servicing Practices. A process is underway with respect to the selection and appointment of a Monitor by the NY DFS, and we intend to continue to cooperate with respect thereto. On August 13, 2012, OLS received a request from the Multi-State Mortgage Committee of the Conference of State Bank Supervisors (MMC) to provide information and data relating to our loan servicing portfolio, including loan count and volume data, loan modifications, fees assessed, delinquencies, short sales, loan-to-value data and rating agency reports. The MMC, along with the CFPB, certain state Attorneys General and other agencies who were involved in the National Mortgage Settlement executed on February 9, 2012 by the five large banks, also requested that we indicate our position on behalf of OLS and Litton on the servicing standards and consumer relief provisions contained in that settlement.

We are cooperating with and providing requested information to each of the agencies involved in the foregoing actions. Specifically in response to the request from the MMC, CFPB, state Attorneys Generaland other agencies, we indicated our willingness to adopt the servicing standards set out in the National Mortgage Settlement with certain caveats. We further indicated our willingness to undertake various consumer assistance commitments in the form of loan modifications and other foreclosure avoidance alternatives. On February 26, 2013, the MMC, CFPB and state Attorneys General requested that we consider a proposal to contribute to a consumer relief fund that would provide cash payments to borrowers foreclosed upon by OLS and various entities we have acquired. We believe the maximum liability under this proposal would be approximately $135 million. We do not believe such a contribution from us is warranted under the circumstances and have so notified the requesting parties. It is reasonably possible that legal proceedings could ensue with regard to this matter and, if so, we will defend vigorously. At this time, the amounts, if any, that ultimately could be incurred with regard to this matter are not reasonably estimable.

On November 30, 2012, prior to our completion of the Homeward Acquisition, two CIDs were issued to Homeward Residential, Inc. (HRI) by the U.S. Department of Justice, Eastern District of Texas, as part of an investigation of whether HRI violated the False Claims Act in connection with its participation in the Home Affordable Mortgage Program (HAMP). We were advised by HRI that documents and information have been provided pursuant to these CIDs. The investigation remains open, and we intend to cooperate in the event there are further informational requests.

As part of the ResCap Acquisition, OLS will be required to service the ResCap loans in accordance with the requirements of the National Mortgage Settlement, although OLS is not responsible for any payment, penalty or financial obligation, including but not limited to providing Ally’s share of financial relief to borrowers under that settlement. The Office of Mortgage Settlement Oversight, which is responsible for monitoring compliance with obligations under the National Mortgage Settlement, issued a report on February 14, 2013 confirming that Ally/ResCap have completed its minimum consumer relief obligations.

One or more of the foregoing regulatory actions or similar actions in the future against Ocwen, OLS, Litton or Homeward could cause us to incur fines, penalties, settlement costs, damages, legal fees or other charges in material amounts, or undertake remedial actions pursuant to administrative orders or court-issued injunctions, any of which could adversely affect our financial results or incur additional significant costs related to our loan servicing operations.

In addition to these matters, Ocwen receives periodic inquires, both formal and informal in nature, from various state and federal agencies as part of those agencies’ oversight of the mortgage servicing sector. Such ongoing inquiries, including those into servicer foreclosure processes, could result in additional actions by state or federal governmental bodies, regulators or the courts that could result in an extension of foreclosure timelines, which may be applicable generally to the servicing industry or to us in particular. In addition, a number of our match funded advance facilities contain provisions that limit the eligibility of advances to be financed based on the length of time that advances are outstanding, and two of our match funded advance facilities have provisions that limit new borrowings if average foreclosure timelines extend beyond a certain time period, either of which, if such provisions applied, could adversely affect liquidity by reducing our average effective advance rate. Increases in the amount of advances and the length of time to recover advances, fines or increases in operating expenses, and decreases in the advance rate and availability of financing for advances would lead to increased borrowings, reduced cash and higher interest expense which could negatively impact our liquidity and profitability.

Loan Put-Back and Related Contingencies

Ocwen has been a party to loan sales and securitizations dating back to the 1990s. The majority of securities issued in these transactions have been retired and are not subject to put-back risk. There is one remaining securitization with an original UPB of approximately $200,000 where Ocwen provided representations and warranties and the loans were originated in the last decade. Ocwen performed due diligence on each of the loans included in this securitization. The outstanding UPB of this securitization was $41,240 at December 31, 2012, and the outstanding balance of the notes was $41,132. Ocwen is not aware of any inquiries or claims regarding loan put-backs for any transaction where we made representations and warranties. We do not expect loan put-backs, if any, in these transactions to result in any material change to our financial position, operating results or liquidity.

Homeward’s contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. Additionally, in one of the servicing contracts that Homeward acquired in 2008 from Freddie Mac involving non-prime mortgage loans, it assumed the origination representations and warranties even though it did not originate the loans. While the language in the purchase contracts vary, they contain provisions that require Homeward to indemnify purchasers of related loans or repurchase such loans if:

	•	representations and warranties concerning loan quality, contents of the loan file or loan
	•	underwriting circumstances are inaccurate;
	•	adequate mortgage insurance is not secured within a certain period after closing;
	•	a mortgage insurance provider denies coverage; or
	•	there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements.

We believe that, as a result of the current market environment, many purchasers of residential mortgage loans are particularly aware of the conditions under which originators must indemnify or repurchase loans and under which such purchasers would benefit from enforcing any indemnification rights and repurchase remedies they may have.

As our lending business grows, we expect that our exposure to indemnification risks and repurchase requests is likely to increase. If home values continue to decrease, our realized loan losses from loan repurchases and indemnifications may increase as well. As a result, our reserve for repurchases may increase beyond our current expectations. If we are required to indemnify or repurchase loans that we originate and sell, and where we have assumed this risk on loans that we service, as discussed above, in either case resulting in losses that exceed our related reserve, our business, financial condition and results of operations could be adversely affected.

In several recent court actions, mortgage loan sellers against whom repurchase claims have been asserted based on alleged breaches of representations and warranties are defending on various grounds including the expiration of statutes of limitation, lack of notice and opportunity to cure and vitiation of the obligation to repurchase as a result of foreclosure or charge off of the loan. Ocwen is not a party to any of the actions, but we are the servicer for certain securitizations involved in such actions. Should Ocwen be made a party to these or similar actions, we may need to defend allegations that we failed to service loans in accordance with applicable agreements and that such failures prejudiced the rights of repurchase claimants against loan sellers. We believe that any such allegations would be without merit and, if necessary, would vigorously defend against them. If, however, we were required to compensate claimants for losses related to seller breaches of representations and warranties in respect of loans we service, then our business, financial condition and results of operations could be adversely affected.

Lease Commitments

We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2018 exclusive of renewal option periods. Our annual aggregate minimum rental commitments under these leases are summarized as follows:

2013	$	13,521
2014		13,497
2015		13,351
2016		13,085
2017		6,235
Thereafter		4,400
Total minimum lease payments	$	64,089

We assumed the obligation for the lease agreements associated with HomEq Servicing, Litton and Homeward facilities. The rental commitments in the table above for operating leases include the remaining amounts due through the earlier of the lease expiration date or the early termination date. During 2012, we negotiated a buyout of one of the two HomEq leases and renewed one of the two Litton leases on a temporary basis. The Homeward facility leases expire on various dates through 2018.

In December 2010, we entered into an agreement with Altisource to sublease of 2,094 square feet of space as our principal executive office in Atlanta, Georgia. Under the terms of the agreement, Ocwen is responsible for monthly base rent of $3 plus a proportionate amount of maintenance costs and other shared services. The sublease is in effect through October 2014.

We converted rental commitments for our facilities outside the U.S. to U.S. dollars using exchange rates in effect at December 31, 2012. Rent expense for 2012, 2011and 2010 was $14,666, $5,578 and $12,315, respectively.

Genworth Acquisition

On October 26, 2012, Ocwen and Genworth Financial, Inc. (NYSE: GNW) entered into an agreement whereby Ocwen will acquire Genworth Financial Home Equity Access, Inc. for approximately $22 million in cash. The company, which will be renamed Liberty Home Equity Solutions, Inc., is the number one reverse mortgage originator based on September 2012 industry data with strong positions in both retail and wholesale originations. We expect the acquisition to close on April 1, 2013.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Quarterly Financial Information [Text Block]

Note 30 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 31, 2012

NOTE 30

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

	Quarters Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Revenue	$	236,375		$	232,700		$	211,385		$	164,546
Operating expenses (1)		99,097			92,793			85,908			86,127
Income from operations		137,278			139,907			125,477			78,419
Other expense		(60,799	)		(59,161	)		(55,313	)		(48,300	)
Income before income taxes		76,479			80,746			70,164			30,119
Income tax expense		11,138			29,346			25,331			10,770
Net income		65,341			51,400			44,833			19,349
Net loss (income) attributable to non-controlling interests		—			—			—			—
Net income attributable to Ocwen stockholders		65,341			51,400			44,833			19,349
Preferred stock dividends		(145	)		—			—			—
Net income attributable to Ocwen common stockholders	$	65,196		$	51,400		$	44,833		$	19,349

Earnings per share attributable to Ocwen common stockholders
Basic	$	0.48		$	0.38		$	0.33		$	0.15
Diluted	$	0.47		$	0.37		$	0.32		$	0.14

	Quarters Ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011
Revenue	$	156,625		$	122,462		$	105,837		$	111,006
Operating expenses (2)		90,481			65,650			42,254			41,199
Income from operations		66,144			56,812			63,583			69,807
Other expense		(47,625	)		(27,861	)		(22,547	)		(35,318	)
Income before income taxes		18,519			28,951			41,036			34,489
Income tax expense		8,864			8,730			14,653			12,425
Net income		9,655			20,221			26,383			22,064
Net loss (income) attributable to non-controlling interests		(4	)		7			(5	)		10

Net income attributable to Ocwen stockholders	$	9,651		$	20,228		$	26,378		$	22,074

Earnings per share attributable to Ocwen stockholders
Basic	$	0.08		$	0.20		$	0.26		$	0.22
Diluted	$	0.08		$	0.19		$	0.25		$	0.21

(1)	Operating expenses for 2012 include non-recurring costs of $1,270 that we incurred as a result of the Homeward Acquisition.
(2)	Operating expenses for 2011 include non-recurring costs of $50,340 that we incurred as a result of the Litton Acquisition, including $472, $18,746 and $31,122 in the second, third and fourth quarters, respectively. See Note 2 for additional information on the Litton Acquisition.

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

Subsequent Events [Text Block]

Note 31 SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2012

NOTE 31

SUBSEQUENT EVENTS

ResCap Acquisition

On February 15, 2013, we completed the acquisition of certain assets of Residential Capital, LLC (“ResCap”), an indirect subsidiary of Ally Financial, Inc., in connection with the proposed asset sale by ResCap and other entities pursuant to a plan under Chapter 11 of the Bankruptcy Code. We purchased MSRs to “private label”, Freddie Mac and Ginnie Mae loans with a UPB of approximately $107.3 billion and master servicing agreements with a UPB of approximately $42.1 billion. The acquisition included $1.5 billion of related servicing advance receivables and related elements of the servicing platform for the MSRs and advances. We also assumed the subservicing contracts for $25.9 billion of loans. The aggregate purchase price, net of assumed liabilities, was approximately $2.1 billion, subject to post-closing adjustments. In addition, until certain consents and court approvals are obtained, we will subservice MSRs to approximately $9 billion of private label loans previously serviced by the sellers. When such consents and approvals are obtained, we will purchase those MSRs as well.

To finance the ResCap acquisition, we deployed approximately $840 million of net additional capital from the proceeds of a new $1.3 billion SSTL facility and borrowed $1.25 billion pursuant to three servicing advance facilities.

Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2012

Loan Servicing and Subservicing Fees [Member]

Loans and Leases Receivable, Mortgage Banking Activities, Policy [Policy Text Block]

Servicing Fees and Advances

Nature of Operations [Text Block]

Organization

See Note 2 for additional information regarding the Homeward Acquisition, Litton Acquisition and HomEq Acquisition.

Consolidation, Policy [Policy Text Block]

of Consolidation

Variable Interest Entities

Securitizations and Asset Backed Financing Arrangements

See Note 7, Note 11 and Note 13 for additional information regarding Match funded advances, Debt service accounts and Match funded liabilities.

Reclassification, Policy [Policy Text Block]

Reclassification

	•	Reclassified Restricted cash – for securitization investors balance of $675 to Other assets;
	•	Reclassified Loans, net – restricted for securitization investors balance of $58,560 to Other assets; and

•

Reclassified Secured borrowings – owed to securitization investors balance of $53,323 to Other liabilities to conform to the December 31, 2012 presentation.

In addition, within the assets section of the Consolidated Balance Sheet at December 31, 2011, we:

	•	Reclassified Debt service accounts from Other assets to a separate line item; and
	•	Reclassified Loans held for sale, at lower of cost or fair value balance of $20,633 to Other assets.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

Cash includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less.

Marketable Securities, Trading Securities, Policy [Policy Text Block]

Securities

Trading securities includes other investments with original maturities of three months or less that we do not treat as cash equivalents.

At December 31, 2012, our investment in trading securities was $0.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Held for Sale

Loans and Leases Receivable, Mortgage Banking Activities, Policy [Policy Text Block]

Servicing Rights

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired.

We perform our annual impairment test of goodwill as of August 31^st of each year. Based on our 2012 annual assessment, we determined that goodwill was not impaired.

Property, Plant and Equipment, Policy [Policy Text Block]

and Equipment

We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on the straight-line method as follows:

	Computer hardware and software	2 – 3 years
	Leasehold improvements	Term of the lease not to exceed useful life

	Furniture and fixtures	5 years
	Office equipment	5 years

Investments, Unconsolidated Entities, Policy [Policy Text Block]

in Unconsolidated Entities

Commitments and Contingencies, Policy [Policy Text Block]

Litigation

Derivatives, Policy [Policy Text Block]

Financial Instruments

The cash collateral held by counterparties to our derivative agreements is included in Other assets.

Debt, Policy [Policy Text Block]

Funded Liabilities, Lines of Credit and Other Secured Borrowings

	•	Specified net worth requirements
	•	Restrictions on future indebtedness
	•	Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain borrowing agreements

We believe that we are currently in compliance with these covenants.

Aggregate long-term borrowings by maturity date are set forth below:

	Expected Maturity Date at December 31, 2012 (1)
	2013		2014		2015		2016		2017		There- after		Total Balance		Fair Value
Match funded liabilities:
Fixed rate	$	1,348,999	$	299,278	$	—	$	—	$	—	$	—	$	1,648,277	$	1,648,810
Variable rate		495,592		388,876		—		—		—		—		884,468		884,468
Lines of credit and other borrowings (2)		774,508		—		18,466		—		—		—		792,974		797,799
	$	2,619,099	$	688,154	$	18,466	$	—	$	—	$	—	$	3,325,719	$	3,331,077

(1)	For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.
(2)	Excludes the liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Currency Translation

Income Tax, Policy [Policy Text Block]

Income Taxes

Earnings Per Share, Policy [Policy Text Block]

and Diluted Earnings per Share

Use of Estimates, Policy [Policy Text Block]

of Estimates

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

New Accounting Pronouncement or Change in Accounting Principle, Description

Accounting Pronouncements ASU 2011-03 (ASC 860, Transfers and Servicing): Reconsideration of Effective Control for Repurchase Agreements . Repurchase agreements are accounted for as secured borrowings (and therefore not as sales) if the transferor has not surrendered control over the transferred assets. The amendments in this ASU remove from the assessment of effective control the criterion relating to the transferor's ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. Consequently, the amendments in this update also eliminate the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. The effect of these amendments is to reduce the criteria that must be met in order for the transaction to be accounted for as a secured borrowing. The guidance shall be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Our adoption of the provisions in this ASU effective January 1, 2012 did not have a material impact on our consolidated financial statements. See Note14 for our disclosure of repurchase agreements, which we account for as a secured borrowing. ASU 2011-04 (ASC 820, Fair Value Measurement): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs . The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. Some of the amendments clarify the FASB's intent about the application of existing fair value measurement requirements. For example, the amendments specify that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. Other amendments prescribe certain additional disclosures about fair value measurements, including Level 3 fair value measurements and financial instruments not carried at fair value. See Note4 for our fair value disclosures. ASU 2011-05 (ASC 220, Comprehensive Income): Presentation of Comprehensive Income . This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This ASU also requires consecutive presentation of the statement of net income and other comprehensive income and requires that an entity present reclassification adjustments from other comprehensive income to net income by component on the face of both the statement in which net income is presented and the statement in which other comprehensive income is presented. The FASB subsequently issued ASU 2011-12: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 , which defers indefinitely the provision regarding the presentation of reclassification adjustments. Our adoption of ASU 2011-05 effective January 1, 2012 did not have a material impact on our consolidated financial statements. ASU 2011-11, (ASC 210, Balance Sheet): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU require an entity to disclose information that will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The disclosures relate to financial instruments and derivative instruments that are either (1) offset on the balance sheet under existing accounting guidance or (2) subject to an enforceable master netting arrangement or similar agreement. The FASB subsequently issued ASU 2013-01 : Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify the scope of transactions that are subject to the disclosures about offsetting. ASU 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. Specifically, the amendments clarify that ASU 2011-11 applies to derivatives accounted for in accordance with ASC 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210 or ASC 815 or subject to an enforceable master netting arrangement or similar agreement . Our adoption of these standards on January 1, 2013 did not have a material impact on our consolidated financial statements, as the requirements relate to disclosures only. This new guidance shall be applied retrospectively for all comparative periods presented.

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Property and Equipment Useful Lives [Table Text Block]

	Computer hardware and software	2 – 3 years
	Leasehold improvements	Term of the lease not to exceed useful life

	Furniture and fixtures	5 years
	Office equipment	5 years

Schedule of Long-term Debt Instruments [Table Text Block]

	Expected Maturity Date at December 31, 2012 (1)
	2013		2014		2015		2016		2017		There- after		Total Balance		Fair Value
Match funded liabilities:
Fixed rate	$	1,348,999	$	299,278	$	—	$	—	$	—	$	—	$	1,648,277	$	1,648,810
Variable rate		495,592		388,876		—		—		—		—		884,468		884,468
Lines of credit and other borrowings (2)		774,508		—		18,466		—		—		—		792,974		797,799
	$	2,619,099	$	688,154	$	18,466	$	—	$	—	$	—	$	3,325,719	$	3,331,077

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

Note 2 BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Purchase Price Allocation [Table Text Block]

Cash	$	79,511
Loans held for sale (1)		558,721
Mortgage servicing rights (1)		358,119
Advances and match funded advances (1)		2,266,882
Deferred tax assets (1)		47,346
Premises and equipment (1)		16,803
Debt service accounts		69,287
Investment in unconsolidated entities (1)		5,485
Receivables and other assets (1)		56,886
Match funded liabilities		(1,997,459	)
Lines of credit and other secured borrowings		(864,969	)
Accrued bonuses		(35,201	)
Checks held for escheat (1)		(16,418	)
Other liabilities (1)		(80,112	)
Total identifiable net assets		464,881
Goodwill (1)		300,843
Total consideration	$	765,724

Revenues		$	5,881
Net income		$	44

Business Acquisition, Pro Forma Information [Table Text Block]

	2012		2011
	(Unaudited)		(Unaudited)

Revenues	$	1,362,927	$	1,085,914
Net income (loss)	$	254,051	$	163,647

Litton Acquisition [Member]

Schedule of Purchase Price Allocation [Table Text Block]

	December 31, 2011			Adjustments			Final
Cash	$	23,791		$	—		$	23,791
Advances		2,468,137			—			2,468,137
MSRs		144,314			—			144,314
Premises and equipment		3,386			—			3,386
Receivables		2,159			(941	)		1,218
Other assets		3,670			—			3,670
Servicing liabilities		(8,972	)		—			(8,972	)
Checks held for escheat		(6,145	)		2,206			(3,939	)
Accrued expenses		(25,471	)		6,927			(18,544	)
Total identifiable net assets		2,604,869			8,192			2,613,061
Goodwill		65,622			(8,192	)		57,430
Total consideration		2,670,491			—			2,670,491
Litton debt repaid to Goldman Sachs at closing		(2,423,123	)		—			(2,423,123	)
Base purchase price, as adjusted	$	247,368		$	—		$	247,368

Revenues		$	62,750
Net loss (1)		$	(20,910	)

Business Acquisition, Pro Forma Information [Table Text Block]

	2011		2010 (1)
	(Unaudited)		(Unaudited)
Revenues	$	642,033	$	632,721
Net income (loss)	$	52,407	$	(169,886	)

HomEq Acquisition [Member]

Schedule of Purchase Price Allocation [Table Text Block]

Mortgage servicing rights	$	84,324
Advances		1,063,180
Receivables		7,957
Premises and equipment		6,728
Checks held for escheat		(4,616	)
Accrued bonus		(3,037	)
Servicing liabilities		(709	)
Other liabilities		(964	)
Total identifiable net assets		1,152,863
Goodwill		12,810
Total consideration	$	1,165,673

Revenues		$	43,127
Net loss (1)		$	(26,953	)

Business Acquisition, Pro Forma Information [Table Text Block]

	2010
	(Unaudited)
Revenues	$	458,548
Net income (loss)	$	42,786

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

	Employee termination benefits (1)			Lease termination costs (2)			Total
Liability balance as at January 1, 2010	$	—		$	—		$	—
Additions charged to operations (3)		32,954			7,794			40,748
Payments		(31,622	)		—			(31,622	)
Liability balance as at December 31, 2010 (3)		1,332			7,794			9,126
Additions charged to operations (3)		33,127			—			33,127
Amortization of discount		—			99			99
Payments		(29,296	)		(2,606	)		(31,902	)
Liability balance as at December 31, 2011 (3)		5,163			5,287			10,450
Additions charged to operations (3)		2,869			5,030			7,899
Amortization of discount		—			176			176
Payments		(8,032	)		(5,602	)		(13,634	)
Liability balance as at December 31, 2012 (3)	$	—		$	4,891		$	4,891

Schedule of Goodwill [Table Text Block]

	Homeward Acquisition		Litton Acquisition		HomEq Acquisition		Total
Balance at December 31, 2011	$	—	$	57,430	$	12,810	$	70,240
Homeward Acquisition		300,843		—		—		300,843
Balance at December 31, 2012	$	300,843	$	57,430	$	12,810	$	371,083

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Note 3 ASSET SALES AND FINANCING (Tables)

12 Months Ended

Dec. 31, 2012

	Initial sale			Flow sales			Total
Sale of MSRs accounted for as a financing (1)	$	62,458		$	254,149		$	316,607

Sale of match funded advances (2)		—			2,827,227			2,827,227

Sale of Advance SPEs:
Match funded advances		413,374			—			413,374
Debt service account		14,786			—			14,786
Prepaid lender fees and debt issuance costs		5,422			—			5,422
Other prepaid expenses		1,928			—			1,928
Match funded liabilities		(358,335	)		—			(358,335	)
Accrued interest payable and other accrued expenses		(841	)		—			(841	)
Net assets of Advance SPEs (3)		76,334			—			76,334
Sales price, as adjusted		138,792			3,081,376			3,220,168
Amount due from HLSS for post-closing adjustments at December 31, 2012		—			(1,410	)		(1,410	)
Cash received	$	138,792		$	3,079,966		$	3,218,758

Note 4 FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

			2012						2011
	Level		Carrying Value			Fair Value			Carrying Value			Fair Value
Financial assets:
Loans held for sale, at fair value (1)		2	$	426,480		$	426,480		$	—		$	—
Loans held for sale, at lower of cost or fair value (2)		3		82,866			82,866			20,633			20,633
Advances and match funded advances(3)		3		3,233,707			3,233,707			3,733,502			3,733,502
Receivables, net (3)		3		167,459			167,459			83,202			83,202
Loans, net – restricted for securitization investors (3)		3		—			—			58,560			55,165

Financial liabilities:
Match funded liabilities (3)		3	$	2,532,745		$	2,533,278		$	2,558,951		$	2,569,131
Lines of credit and other secured borrowings (3)		3		1,096,679			1,101,504			540,369			550,860
Debt securities (3)		2		—			—			82,554			92,125
Secured borrowings – owed to securitization investors (3)		3		—			—			53,323			52,652

Derivative financial instruments (1):
IRLCs		2	$	5,781		$	5,781		$	—		$	—
Interest rate swaps		3		(10,836	)		(10,836	)		(14,491	)		(14,491	)
Forward MBS trades		1		(1,719	)		(1,719	)		—			—
U.S. Treasury futures		1		(1,258	)		(1,258	)		—			—
Interest rate caps		3		168			168			3,600			3,600
Nondeliverable FX forward contracts		3		—			—			(5,785	)		(5,785	)

Impaired stratum of MSRs (2)(4)		3	$	—		$	—		$	214		$	214
MSRs, at fair value (1)		3	$	85,213		$	85,213		$	214		$	214

For the year ended December 31, 2012:	Derivative Financial Instruments			MSRS at Fair Value		Total

Beginning balance	$	(16,676	)	$	—	$	(16,676	)

Purchases, issuances, sales and settlements:
Purchases (1)		4,946			85,183		90,129
Issuances		—			—		—
Sales		(405	)		—		(405	)
Settlements		2,451			—		2,451
		6,992			85,183		92,175

Total realized and unrealized gains and (losses) (2):
Included in Other, net		7,331			30		7,361
Included in Other comprehensive income (loss)		(8,315	)		—		(8,315	)
		(984	)		30		(954	)

Transfers in and / or out of Level 3		—			—		—
Ending balance	$	(10,668	)	$	85,213	$	74,545

For the year ended December 31, 2011	Derivative Financial Instruments

Beginning balance	$	(15,351	)

Purchases, issuances, sales and settlements:
Purchases		3,688
Settlements		85
		3,773
Total realized and unrealized gains and (losses) (2):
Included in Other, net		(5,881	)
Included in Other comprehensive income (loss)		783
		(5,098	)

Transfers in and / or out of Level 3		—
Ending balance	$	(16,676	)

				Trading Securities
For the year ended December 31, 2010:	Derivative Financial Instruments			Auction Rate Securities			Subordinates and Residuals			Total

Beginning balance	$	(45	)	$	247,464		$	59		$	247,478

Purchases, issuances, sales and settlements:
Sales		—			(146,810	)		—			(146,810	)
Settlements		(738	)		(92,745	)		—			(93,483	)
		(738	)		(239,555	)		—			(240,293	)

Total realized and unrealized gains and (losses) (2):
Included in Gain (loss) on trading securities		—			(7,909	)		(59	)		(7,968	)
Included in Other, net		(133	)		—			—			(133	)
Included in Other comprehensive income (loss)		(14,435	)		—			—			(14,435	)
		(14,568	)		(7,909	)		(59	)		(22,536	)

Transfers in and / or out of Level 3		—			—			—			—
Ending balance	$	(15,351	)	$	—		$	—		$	(15,351	)

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

Schedule Of Advance Payments By Financial Institution On Foreclosed Properties Summary [TableTextBlock]

Note 6 ADVANCES (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011
Servicing:
Principal and interest	$	83,617	$	30,462
Taxes and insurance		51,447		33,387
Foreclosures, bankruptcy and other		41,296		35,832
		176,360		99,681
Corporate Items and Other		8,103		3,910
	$	184,463	$	103,591

Note 7 MATCH FUNDED ADVANCES (Tables)

12 Months Ended

Dec. 31, 2012

Transfers Accounted for as Secured Borrowings, Classification, Assets

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Principal and interest </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,577,808 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,679,536 </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Taxes and insurance </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 1,148,486 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 1,452,707 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Foreclosures, bankruptcy, real estate and other </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 322,950 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 497,668 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,049,244 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,629,911 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table>

Note 8 MORTGAGE SERVICING (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011		2010
Loan servicing and subservicing fees	$	581,067	$	341,438	$	226,284
Home Affordable Modification Program (HAMP) fees		76,764		42,025		32,363
Late charges		69,281		38,557		32,760
Loan collection fees		15,960		11,223		8,958
Float earnings		3,749		2,105		2,843
Other		57,604		23,527		18,491
	$	804,425	$	458,875	$	321,699

Schedule of Servicing Assets at Amortized Value [Table Text Block]

For the year ended December 31,	2012			2011			2010
Beginning balance	$	293,152		$	193,985		$	117,802
Purchases:
HomEq Acquisition		—			—			84,324
Litton Acquisition		—			144,314			—
Homeward Acquisition (1)		275,844			—			—
MSR asset acquisitions (2)		181,979			—			23,425
Servicing transfers and adjustments		(4	)		—			(29	)
Decrease in impairment valuation allowance		(88	)		574			90
Amortization (3)		(74,171	)		(45,721	)		(31,627	)
Ending balance	$	676,712		$	293,152		$	193,985

Fair value at end of year	$	743,830		$	340,015		$	237,407

Schedule of Expected Amortization Expense [Table Text Block]

2013	$	122,365
2014		100,316
2015		82,240
2016		67,421
2017		55,273

Servicing Asset at Fair Value, Description of Other Changes in Fair Value

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center"> Adverse change in fair value </td> <td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 10% </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 20% </td> <td style="padding-bottom: 1pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; width: 60%"> </td> <td style="text-align: center; width: 3%"> </td> <td style="text-align: center; width: 1%"> </td> <td style="text-align: center; width: 15%"> </td> <td style="text-align: center; width: 1%"> </td> <td style="text-align: center; width: 3%"> </td> <td style="text-align: center; width: 1%"> </td> <td style="text-align: center; width: 15%"> </td> <td style="text-align: center; width: 1%"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Weighted average prepayment speeds </td> <td> </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,374 </td> <td style="text-align: left"> ) </td> <td> </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (13,681 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Discount rate (Option-adjusted spread) </td> <td> </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (3,533 </td> <td style="text-align: left"> ) </td> <td> </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,448 </td> <td style="text-align: left"> ) </td> </tr> </table>

	Residential		Commercial		Total
UPB at December 31, 2010
Servicing	$	51,252,380	$	—	$	51,252,380
Subservicing		22,634,011		434,305		23,068,316
	$	73,886,391	$	434,305	$	74,320,696
UPB at December 31, 2011
Servicing	$	78,675,160	$	—	$	78,675,160
Subservicing		23,524,062		290,863		23,814,925
	$	102,199,222	$	290,863	$	102,490,085
UPB at December 31, 2012
Servicing (1)	$	175,762,161	$	—	$	175,762,161
Subservicing		27,903,555		401,031		28,304,586
	$	203,665,716	$	401,031	$	204,066,747

Mortgage Loans on Real Estate, Geographic Location of Property

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amount </td> <td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Count </td> <td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding: 0 0 0 10pt"> California </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 45,851,476 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right"> 160,501 </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Florida </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 22,731,227 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 136,224 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> New York </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 17,276,718 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 67,725 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Texas </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 9,151,031 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 99,935 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Illinois </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 8,174,504 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 53,203 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 100,480,760 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 702,368 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 203,665,716 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,219,956 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table>

Tabular disclosure of the activity in the balance of servicing assets subsequently measured at amortized value (including a description of where changes in carrying value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (through purchases of servicing assets and servicing assets that result from transfers of financial assets), disposals, amortization, application of valuation allowances, other-than-temporary impairments, and other changes that affect the balance along with a description of those changes.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Note 9 RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2012

	Receivables		Allowance for Losses			Net
December 31, 2012
Servicing (1)	$	84,870	$	(1,647	)	$	83,223
Income taxes receivable		55,292		—			55,292
Affordable housing (2)		1,052		(713	)		339
Due from related parties (3)		12,361		—			12,361
Other		17,525		(1,281	)		16,244
	$	171,100	$	(3,641	)	$	167,459

December 31, 2011
Servicing (1)	$	53,061	$	(1,648	)	$	51,413
Income taxes receivable		21,518		—			21,518
Affordable housing (2)		5,568		(5,019	)		549
Due from related parties (3)		2,309		—			2,309
Derivatives, at fair value (4)		3,600		—			3,600
Other		4,134		(1,262	)		2,872
	$	90,190	$	(7,929	)	$	82,261

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Affordable Housing			Other			Total
Allowance for credit losses balance at December 31, 2011	$	5,019		$	1,262		$	6,281
Charge offs		(4,306	)		(387	)		(4,693	)
Provision		—			456			456
Other		—			(50	)		(50	)
Allowance for credit losses balance at December 31, 2012	$	713		$	1,281		$	1,994

Receivables balance at December 31, 2012	$	1,052		$	17,525		$	18,577

Note 10 PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Table Text Block]

	2012			2011
Computer hardware and software	$	36,905		$	15,208
Leasehold improvements		14,960			6,894
Furniture and fixtures		10,369			8,559
Office equipment and other		9,108			5,932
		71,342			36,593
Less accumulated depreciation and amortization		(33,806	)		(29,243	)
	$	37,536		$	7,350

Note 12 OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Other Assets [Table Text Block]

	2012		2011
Loans held for sale, at lower of cost or fair value (1)	$	82,866	$	20,633
Asset purchase price deposit (2)		57,000		—
Interest earning collateral deposits (3)		31,710		27,191
Investment in unconsolidated entities (4)		25,187		23,507
Prepaid income taxes (5)		23,112		—
Prepaid lender fees and debt issuance costs, net (6)		14,389		27,113
Derivatives, at fair value (7)		10,795		—
Real estate, net		6,205		3,368
Loans – restricted for securitization investors (8)		—		58,560
Prepaid expenses and other		21,414		13,078
	$	272,678	$	173,450

Note 13 MATCH FUNDED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Transfers Accounted for as Secured Borrowings, Classification, Associated Liabilities

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Balance Outstanding </td> <td style="text-align: center; padding-bottom: 1pt"> </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 10pt; text-indent: -10pt"> Borrowing Type </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Maturity (1) </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amortization Date (1) </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Unused Borrowing Capacity (2) </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> December 31, 2012 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> December 31, 2011 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 31%; text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right"> 2.23 </td> <td style="width: 1%"> % </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right"> May 2043 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right"> May 2013 </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right"> — </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right"> 325,000 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right"> — </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 3.37 – 5.92 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> May 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> May 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 525,000 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 3.27 – 6.90 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> Sep. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Sept. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 250,000 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 2.98 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> Mar. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Mar. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 248,999 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 3.72 – 7.04 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> Mar. 2044 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Mar. 2014 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 299,278 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Promissory Note (4) </td> <td> </td> <td> </td> <td style="text-align: right"> 3.3875 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> Sept. 2013 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Sept. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 1,784,043 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2009-3 (5) </td> <td> </td> <td> </td> <td style="text-align: right"> 4.14 </td> <td> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> July 2023 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> July 2012 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 210,000 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2010-1 (6) </td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="text-align: right; padding-bottom: 1pt"> 3.59 </td> <td style="padding-bottom: 1pt"> % </td> <td style="text-align: left"> </td> <td style="text-align: right"> Sep. 2023 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt"> Feb. 2011 </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> — </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> — </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 40,000 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total fixed rate </td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> — </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,648,277 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,034,043 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-2 (7) </td> <td> </td> <td> </td> <td style="text-align: right"> 1-Month LIBOR (1ML) + 350 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Nov. 2023 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Nov. 2012 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-1 (8) </td> <td> </td> <td> </td> <td style="text-align: right"> Commercial paper (CP) rate + 200 bps or 1ML plus 325 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Dec. 2023 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Dec. 2012 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 11,687 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (9) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 285 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Apr. 2015 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Apr. 2014 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 444,984 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 205,016 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (9) </td> <td> </td> <td> </td> <td style="text-align: right"> CP rate + 225 or 335 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Dec. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Dec. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 17,288 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 232,712 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (10) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 250 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> June 2016 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> June 2014 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 5,905 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 94,095 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note (11) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Dec. 2015 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Dec. 2014 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 862 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 49,138 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicing Advance Revolving Trust 1 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> May 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> May 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 320,367 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 204,633 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 315 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Sep. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Sept. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 127,997 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 22,003 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 300 bps – 675 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Mar. 2044 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Mar. 2014 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 232,651 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 40,626 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward Agency Advance Funding Trust 2012-1 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Sept. 2013 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Sept. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 8,906 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 16,094 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward DSF Advance Revolving Trust 2012-1 (3) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 450 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Feb. 2013 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Feb. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 1,849 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 20,151 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-1 Term Note (12) </td> <td> </td> <td> </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Aug. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Aug. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 340,185 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-2 Variable Funding Note (12) </td> <td> </td> <td> </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Aug. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Aug. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class B Term Note (12) </td> <td> </td> <td> </td> <td style="text-align: right"> CP rate + 525 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Aug. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Aug. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 15,850 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class C Term Note (12) </td> <td> </td> <td> </td> <td style="text-align: right"> CP rate + 625 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Aug. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Aug. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 15,056 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class D Term Note (12) </td> <td> </td> <td> </td> <td style="text-align: right"> 1ML + 750 bps </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Aug. 2043 </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> Aug. 2013 </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> — </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 11,638 </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (13) </td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="padding-bottom: 1pt; text-align: right"> 1ML + 200 bps </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> Jan. 2014 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt"> July 2013 </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> — </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> — </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 130,492 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total variable rate </td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: right"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 884,468 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 524,908 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,532,745 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,558,951 </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> Weighted average interest rate </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 3.52 </td> <td style="text-align: left"> % </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> 3.50 </td> <td style="text-align: left"> % </td> </tr> </table>

Note 14 LINES OF CREDIT AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Line of Credit Facilities [Table Text Block]

						Balance Outstanding
Borrowings	Collateral	Interest Rate	Maturity		Unused Borrowing Capacity		December 31, 2012			December 31, 2011

Servicing:
SSTL (1)	(1)	1ML + 550 bps with a LIBOR floor of 150 bps (1)	Sept. 2016	$	—	$	314,229			546,250
Senior unsecured term loan (2)		1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps	March, 2017		—		75,000			—
Financing liability – MSRs pledged (3)	MSRs (3)	(3)(3)			—		303,705			—
Financing liability – MSRs pledged (4)	MSRs (4)	(4)(4)			—		2,603			—
Promissory note (5)	MSRs	1ML + 350 bps	May 2017		—		18,466			—
					—		714,003			546,250

Lending:
Master repurchase agreement (6)	Loans held for sale (LHFS)	1ML + 175 bps	Jan. 2013		36,878		88,122			—
Participation agreement (7)	LHFS	N/A	Feb. 2013		—		58,938			—
Master repurchase agreement (8)	LHFS	1ML + 200 bps	Feb. 2013		116,005		133,995			—
Master repurchase agreement	LHFS	1ML + 200 bps	Jul. 2013		192,980		107,020			—
					345,863		388,075			—

Corporate Items and Other
Securities sold under an agreement to repurchase (9)	Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes	Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps	Monthly		—		2,833			4,610
					345,863		1,104,911			550,860
Discount (1)					—		(8,232	)		(10,491	)
				$	345,863	$	1,096,679		$	540,369

Weighted average interest rate (10)							4.49	%		6.96	%

Note 15 DEBT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Debt [Table Text Block]

	2012		2011
3.25% Contingent Convertible Senior Unsecured Notes due August 1, 2024	$	—	$	56,435
10.875% Capital Securities due August 1, 2027		—		26,119
	$	—	$	82,554

Note 16 OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Other Assets and Other Liabilities [Table Text Block]

	2012		2011
Accrued expenses (1)	$	106,376	$	47,198
Due to related parties (2)		45,034		4,274
Checks held for escheat		33,225		22,481
Liability for selected tax items (3)		22,702		4,524
Derivatives, at fair value (4)		18,658		20,276
Payable to servicing and subservicing investors (5)		9,973		28,824
Servicing liabilities (6)		9,830		9,662
Accrued interest payable		5,410		4,140
Secured borrowings – owed to securitization investors (7)		—		53,323
Other		26,456		8,137
	$	277,664	$	202,839

Note 17 MEZZANINE EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Preferred Units [Table Text Block]

Initial issuance price on December 31, 2012	$	162,000
Discount for beneficial conversion feature		(8,688	)
Accretion of discount		60
Carrying value at December 31, 2012	$	153,372

Tabular disclosure of preferred units of master limited partnerships that have priority over limited partner units in areas including liquidation, redemption, conversion, tax status of distribution or sharing in distributions. This schedule ordinarily includes a description of the preferred units that details various rights including redemption, conversion, liquidation, and sharing in distributions; capital contributed by preferred partners; number of preferred units authorized to be issued, issued, and outstanding; aggregate cumulative cash distributions made to the preferred partners; aggregate cumulative net income earned by the preferred partners; capital account balance of the preferred partners.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Note 18 EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011
Unrealized losses on cash flow hedges	$	6,310	$	7,760
Other		131		136
	$	6,441	$	7,896

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Derivative Instruments [Table Text Block]

	IRLCs		U.S. Treasury Futures			Forward MBS Trades			Interest Rate Caps			Foreign Exchange Forwards			Interest Rate Swaps

Beginning notional balance	$	—	$	—		$	—		$	1,600,000		$	46,200		$	1,393,685
Homeward Acquisition		1,112,519		109,000			1,638,979			1,025,000			—			432,500
Other additions		—		—			—			—			—			—
Maturities		—		—			—			—			—			(330,230	)
Terminations		—		—			—			(1,600,000	)		(46,200	)		—
Ending notional balance	$	1,112,519	$	109,000		$	1,638,979		$	1,025,000		$	—		$	1,495,955

Fair value of derivative assets (liabilities) at:
December 31, 2012	$	5,781	$	(1,258	)	$	(1,719	)	$	168		$	—		$	(10,836	)
December 31, 2011	$	—	$	—		$	—		$	3,600		$	(5,785	)	$	(14,491	)

Maturity		2013		Mar. 2013			Jan. 2013 – Mar. 2013			Feb. 2015 – May 2016			—			Feb. 2013 – Mar. 2032

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

Purpose	Expiration Date		Notional Amount		Fair Value (1)			Gains / (Losses)			Financial Statement Caption
Hedge the effect of changes in interest rates on interest expense on borrowings
Interest rate swaps (pay fixed, receive variable)
Not designated as hedges:
Hedge the effects of a change in 1ML on borrowing under an advance funding facility (2)		2013	$	250,000	$	(2,699	)	$	3,605		Other, net
Hedge the effects of a change in the lender’s CP rate and 1ML on borrowing under an advance funding facility (3)		2013		321,659		(2,958	)		3,352		Other, net / AOCL
Total not designated as hedges				571,659		(5,657	)		6,957

Designated as hedges:
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (5)		2015		201,892		(7,746	)		(6,246	)	AOCL
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (6)		2015		289,904		(2,211	)		(1,859	)	AOCL
Total designated as hedges				491,796		(9,957	)		(8,105	)
Total swaps				1,063,455		(15,614	)		(1,148	)

Interest rate caps
Not designated as hedges:
Hedge the effects of changes in 1ML on advance funding facilities (7)		2014		—		—			(3,195	)	Other, net
Hedge the effects of changes in 1ML on advance funding facilities (4)		2015-2016		1,025,000		168			—		Other, net
Total caps				1,025,000		168			(3,195	)
Total hedges of debt				2,088,455		(15,446	)		(4,343	)

Hedge the effect of changes in interest rates on MSRs measured at fair value
Not designated as hedges:
Interest rate swaps (pay variable, receive fixed) (4)		2014-2032		432,500		4,778			—		Other, net
U.S. Treasury futures (4)		2013		109,000		(1,258	)		—		Other, net
Forward MBS trades (4)		2013		314,000		67			—		Other, net
Total hedges of MSRs				855,500		3,587			—

*Hedge the effect of changes in interest rates on the value of mortgage loans held for sale and IRLCs*
Not designated as hedges:
Forward MBS trades (4)		2013		1,324,979		(1,786	)		(1,226	)	Other, net

IRLCs		2013		1,112,519		5,781			153		Loss on loans held for sale, net
Total derivatives			$	5,381,453	$	(7,864	)	$	(5,416	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

	2012			2011			2010
Gains (losses) on non-hedging derivatives (1)(2)	$	6,256		$	(4,488	)	$	17
Ineffectiveness of cash flow hedges		41			(1,393	)		(150	)
Write-off of losses in AOCL for a discontinued hedge relationship (3)		(4,633	)		(1,545	)		—
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note 3)		(5,958	)		—			—
	$	(4,294	)	$	(7,426	)	$	(133	)

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Interest and Other Income [Text Block]

Note 20 INTEREST INCOME (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011		2010
Interest earning cash	$	963	$	756	$	1,190
Loans held for sale		2,946		2,291		3,398
Loans, net - restricted for securitization investors		4,420		5,829		6,271
	$	8,329	$	8,876	$	10,859

Note 21 INTEREST EXPENSE (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011		2010
Match funded liabilities	$	122,292	$	93,051	$	61,656
Lines of credit and other borrowings (1)		96,220		32,985		17,553
Debt securities:
3.25% Convertible Notes		153		1,834		1,834
10.875% Capital Securities		1,894		2,840		2,954
Secured borrowings – owed to securitization investors		616		670		632
Escrow deposits and other		2,280		1,390		1,294
	$	223,455	$	132,770	$	85,923

Note 22 INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	2012		2011		2010
Domestic	$	176,075	$	118,708	$	33,394
Foreign		81,433		4,287		5,760
	$	257,508	$	122,995	$	39,154

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2012			2011			2010
Current:
Federal	$	10,621		$	13,894		$	8,836
State		(759	)		(195	)		1,049
Foreign		2,968			1,079			2,033
		12,830			14,778			11,918
Deferred:
Federal		62,704			29,440			(6,953	)
State		(431	)		368			(145	)
Foreign		1,482			86			725
Provision for valuation allowance on deferred tax assets		—			—			—
		63,755			29,894			(6,373	)
Total	$	76,585		$	44,672		$	5,545

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2012			2011			2010
Expected income tax expense at statutory rate	$	90,127		$	43,049		$	13,704
Differences between expected and actual income tax expense:
State tax, after Federal tax benefit		(1,184	)		254			610
Tax effect of Altisource Separation		—			—			749
Provision for (reversal of) liability for selected tax items		5,558			1,611			(9,126	)
Permanent differences		15			61			878
Foreign tax differential		(17,816	)		(716	)		(197	)
Provision-to-return and other		—			—			(580	)
Other		(115	)		413			(493	)
Actual income tax expense	$	76,585		$	44,672		$	5,545

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2012		2011
Deferred tax assets:
Mortgage servicing rights amortization	$	—	$	32,654
Net operating loss carryforward		16,068		18,078
Net unrealized gains and losses on securities		2,702		11,828
Partnership losses		11,036		9,960
Bad debt and allowance for loan losses		6,551		8,020
Accrued other liabilities		2,925		5,122
Interest rate swaps		3,813		4,371
Tax residuals and deferred income on tax residuals		4,175		3,941
Stock-based compensation expense		3,127		2,874
Accrued incentive compensation		6,210		2,755
Foreign deferred assets		1,805		2,512
Accrued lease termination costs		1,887		1,910
Intangible asset amortization		2,070		1,641
Valuation allowance on real estate		386		884
Deferred income or loss on servicing advance receivables		78,832		—
Capital losses		665		—
Other		7,339		8,608
		149,591		115,158
Deferred tax liabilities:
Mortgage servicing rights amortization		56,265		—
Deferred income or loss on servicing advance receivables		—		7,030
Other		1,190		160
		57,455		7,190
Net deferred tax assets	$	92,136	$	107,968

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block]

	2012			2011
Balance at January 1	$	4,524		$	2,913
Additions based on tax positions related to current year		17,396			—
Additions for tax positions of prior years		875			1,817
Reductions for tax positions of prior years		—			(206	)
Lapses in statutes of limitation		(93	)		—
Balance at December 31	$	22,702		$	4,524

Note 24 BASIC AND DILUTED EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	2012		2011		2010
Basic EPS:
Net income attributable to Ocwen common stockholders	$	180,778	$	78,331	$	37,984

Weighted average shares of common stock		133,912,643		104,507,055		100,273,121

Basic EPS	$	1.35	$	0.75	$	0.38

Diluted EPS:
Net income attributable to Ocwen common stockholders	$	180,778	$	78,331	$	37,984
Preferred stock dividends (1)		—		—		—
Interest expense on Convertible Notes, net of income tax (2)		107		1,187		1,122
Adjusted net income attributable to Ocwen	$	181,885	$	79,518	$	39,106

Weighted average shares of common stock		133,912,643		104,507,055		100,273,121
Effect of dilutive elements:
Preferred Shares (1)		—		—		—
Convertible Notes (2)		1,008,891		4,637,224		4,637,224
Stock options		3,593,419		2,711,682		2,571,282
Common stock awards		6,326		—		1,388
Dilutive weighted average shares of common stock		138,521,279		111,855,961		107,483,015

Diluted EPS	$	1.31	$	0.71	$	0.36

Stock options excluded from the computation of diluted EPS:
Anti-dilutive(3)		143,125		27,031		20,000
Market-based(4)		1,535,000		468,750		1,615,000

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Stock Options Vesting [Table Text Block]

Type of Award	Percent of Options Awarded	Vesting Period
Service Condition:
Time-Based	25%	Ratably over four years (¼ on each of the four anniversaries of the grant date)
Market Condition:
Performance-Based	50	Over three years beginning with ¼ vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Extraordinary Performance-Based	25	Over three years beginning with ¼ vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Total award	100%

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	2012					2011					2010
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Outstanding at beginning of year		7,894,728		$	5.48		8,084,953		$	5.03		9,278,581		$	4.97
Granted (1)		2,160,000			23.92		545,000			12.83		—			—
Exercised (2)(3)		(1,116,549	)		3.56		(735,225	)		6.01		(774,345	)		4.19
Forfeited		—			—		—			—		(419,283	)		5.21
Outstanding at end of year(4)(5)		8,938,179			9.93		7,894,728			5.48		8,084,953			5.03
Exercisable at end of year (4)(5)(6)		5,569,432			5.04		4,947,228			4.91		4,122,453			5.13

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	2012			2011
		Black-Scholes	Binomial		Black-Scholes		Binomial
Risk-free interest rate		1.20 – 1.60%	0.70% – 3.06%		1.57	%	0.35% – 2.74%
Expected stock price volatility (1)		40% – 42%	6.87% – 42%		41	%	30% – 41%
Expected dividend yield		—	—		—		—
Expected option life (in years) (2)		6.50	4.50 – 6.50		6.50		4.25 & 5.75
Contractual life (in years)		—	10		—		10
Fair value		$6.49 – $10.48	$3.41 – $8.87	$	5.51		$4.66 & $4.09

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	2012		2011		2010
Equity-based compensation expense:
Stock option awards	$	2,776	$	926	$	1,088
Stock awards		158		—		—
Excess tax benefit related to share-based awards		11,031		2,142		3,157

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

Note 26 BUSINESS SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2012

	Servicing			Lending			Corporate Items and Other			Corporate Eliminations			Business Segments Consolidated
Results of Operations
For the year ended December 31, 2012
Revenue (1) (2)	$	840,648		$	141		$	5,122		$	(905	)	$	845,006
Operating expenses (1) (3)		344,333			409			19,667			(484	)		363,925
Income (loss) from operations		496,315			(268	)		(14,545	)		(421	)		481,081
Other income (expense):
Interest income		9			309			8,011			—			8,329
Interest expense		(221,948	)		(514	)		(993	)		—			(223,455	)
Other (1) (2)		(13	)		214			(9,069	)		421			(8,447	)
Other income (expense), net		(221,952	)		9			(2,051	)		421			(223,573	)
Income (loss) from continuing operations before income taxes	$	274,363		$	(259	)	$	(16,596	)	$	—		$	257,508
For the year ended December 31, 2011
Revenue (1) (2)	$	494,871		$	—		$	2,348		$	(1,289	)	$	495,930
Operating expenses (1) (3) (4)		231,238			—			8,971			(625	)		239,584
Income (loss) from operations		263,633			—			(6,623	)		(664	)		256,346
Other income (expense):
Interest income		110			—			8,766			—			8,876
Interest expense		(132,574	)		—			(196	)		—			(132,770	)
Other (1) (2)		4,711			—			(14,832	)		664			(9,457	)
Other income (expense), net		(127,753	)		—			(6,262	)		664			(133,351	)
Income (loss) from continuing operations before income taxes	$	135,880		$	—		$	(12,885	)	$	—		$	122,995

For the year ended December 31, 2010
Revenue (1) (2)	$	359,798		$	—		$	2,112		$	(1,529	)	$	360,381
Operating expenses (1) (3) (4)		200,108			—			37,130			(764	)		236,474
Income (loss) from operations		159,690			—			(35,018	)		(765	)		123,907
Other income (expense):
Interest income		207			—			10,652			—			10,859
Interest expense		(80,514	)		—			(5,409	)		—			(85,923	)
Other (1) (2) (5) (6)		(1,188	)		—			(9,266	)		765			(9,689	)
Other income (expense), net		(81,495	)		—			(4,023	)		765			(84,753	)
Income (loss) from continuing operations before income taxes	$	78,195		$	—		$	(39,041	)	$	—		$	39,154

	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
Total Assets
December 31, 2012	$	4,461,755	$	551,733	$	658,394	$	—	$	5,671,882

December 31, 2011	$	4,301,371	$	—	$	426,653	$	—	$	4,728,024

December 31, 2010	$	2,495,966	$	—	$	425,443	$	—	$	2,921,409

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
For the year ended December 31, 2012:
Depreciation expense	$	1,469	$	8	$	4,243	$	5,720
Amortization of MSRs		72,897		—		—		72,897
Amortization of debt discount		3,259		—		—		3,259
Amortization of debt issuance costs – SSTL		3,718		—		—		3,718

For the year ended December 31, 2011:
Depreciation expense	$	2,410	$	—	$	1,750	$	4,160
Amortization of MSRs		42,996		—		—		42,996
Amortization of debt discount		8,853		—		—		8,853
Amortization of debt issuance costs – SSTL		9,764		—		—		9,764

For the year ended December 31, 2010:
Depreciation expense	$	5,916	$	—	$	1,596	$	7,512
Amortization of MSRs		31,455		—		—		31,455
Amortization of debt discount		5,217		—		172		5,389
Amortization of debt issuance costs – SSTL		2,086		—		—		2,086

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

Investments in and Advances to Affiliates [Table Text Block]

Note 27 RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2012

	2012		2011		2010
Revenues and Expenses:
Altisource:
Revenues	$	16,532	$	12,242	$	13,520
Expenses		28,987		23,226		20,082
HLSS:
Revenues	$	195	$	—	$	—
Expenses		2,432		—		—

	December 31, 2012			December 31, 2011
Net Receivable (Payable)
Altisource	$	(5,971	)	$	(1,965	)
HLSS		(25,524	)		—
	$	(31,495	)	$	(1,965	)

Note 29 COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

2013	$	13,521
2014		13,497
2015		13,351
2016		13,085
2017		6,235
Thereafter		4,400
Total minimum lease payments	$	64,089

Note 30 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Quarterly Financial Information [Table Text Block]

	Quarters Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Revenue	$	236,375		$	232,700		$	211,385		$	164,546
Operating expenses (1)		99,097			92,793			85,908			86,127
Income from operations		137,278			139,907			125,477			78,419
Other expense		(60,799	)		(59,161	)		(55,313	)		(48,300	)
Income before income taxes		76,479			80,746			70,164			30,119
Income tax expense		11,138			29,346			25,331			10,770
Net income		65,341			51,400			44,833			19,349
Net loss (income) attributable to non-controlling interests		—			—			—			—
Net income attributable to Ocwen stockholders		65,341			51,400			44,833			19,349
Preferred stock dividends		(145	)		—			—			—
Net income attributable to Ocwen common stockholders	$	65,196		$	51,400		$	44,833		$	19,349

Earnings per share attributable to Ocwen common stockholders
Basic	$	0.48		$	0.38		$	0.33		$	0.15
Diluted	$	0.47		$	0.37		$	0.32		$	0.14

	Quarters Ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011
Revenue	$	156,625		$	122,462		$	105,837		$	111,006
Operating expenses (2)		90,481			65,650			42,254			41,199
Income from operations		66,144			56,812			63,583			69,807
Other expense		(47,625	)		(27,861	)		(22,547	)		(35,318	)
Income before income taxes		18,519			28,951			41,036			34,489
Income tax expense		8,864			8,730			14,653			12,425
Net income		9,655			20,221			26,383			22,064
Net loss (income) attributable to non-controlling interests		(4	)		7			(5	)		10

Net income attributable to Ocwen stockholders	$	9,651		$	20,228		$	26,378		$	22,074

Earnings per share attributable to Ocwen stockholders
Basic	$	0.08		$	0.20		$	0.26		$	0.22
Diluted	$	0.08		$	0.19		$	0.25		$	0.21

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Restricted Cash for Securitization Investors [Member]
Increase (Decrease) in Restricted Cash (in Dollars)		$ (675)
Loans, net - restricted for securitization investors [Member]
Increase (Decrease) in Receivables (in Dollars)		(58,560)
Secured Borrowings Owed To Securitization Investors [Member]
Line of Credit Facility, Increase, Additional Borrowings (in Dollars)		(53,323)
Equity Method Investee, Correspondent One [Member]
Noncontrolling Interest, Ownership Percentage by Parent	49.00%
Equity Method Investee, OSI [Member]
Noncontrolling Interest, Ownership Percentage by Parent	26.00%
Equity Method Investee, ONL [Member]
Noncontrolling Interest, Ownership Percentage by Parent	25.00%
Powerlink Settlement Services [Member]
Noncontrolling Interest, Ownership Percentage by Parent	69.79%
Accumulated Comprehensive Income (Loss), after Adoption of New Accounting Principle (in Dollars)	$ 3,167
Increase (Decrease) in Loans Held-for-sale (in Dollars)	(558,721)	$ (20,633)
Trading Securities (in Dollars)	0
Servicing Liability at Amortized Value, Disposals (in Dollars)	$ 303,705
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	0.21%	0.30%

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - (Table 1)	12 Months Ended
	Dec. 31, 2012
Computer Equipment [Member]
Estimated Useful Life	2 - 3 years
Leasehold Improvements [Member]
Estimated Useful Life	Term of the lease not to exceed useful life
Furniture and Fixtures [Member]
Estimated Useful Life	5 years
Office Equipment [Member]
Estimated Useful Life	5 years

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - (Table 2)
$ in Thousands

Dec. 31, 2012

USD ($)

^[1]

Fixed Rate [Member] | Match Funded Liabilties [Member]

$ 1,348,999

299,278

1,648,277

1,648,810

Variable Interest Rate [Member] | Match Funded Liabilties [Member]

495,592

388,876

884,468

884,468

Line of Credit [Member]

774,508

^[2]

^[2]

18,466

^[2]

^[2]

^[2]

^[2]

792,974

^[2]

797,799

^[2]

2,619,099

688,154

18,466

3,325,719

$ 3,331,077

[1]	For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.
[2]	Excludes athe liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability.

Note 2 BUSINESS ACQUISITIONS (Detail)

1 Months Ended

3 Months Ended

4 Months Ended

12 Months Ended

Dec. 31, 2012

USD ($)

Aug. 31, 2012

USD ($)

Jun. 30, 2012

USD ($)

Mar. 31, 2012

USD ($)

Sep. 30, 2011

USD ($)

Sep. 30, 2010

USD ($)

Dec. 31, 2011

USD ($)

Sep. 30, 2011

USD ($)

Jun. 30, 2011

USD ($)

Dec. 31, 2011

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2012

USD ($)

Dec. 31, 2011

USD ($)

Dec. 31, 2010

USD ($)

Feb. 15, 2013

USD ($)

Jan. 31, 2012

USD ($)

Mortgage Loans on Real Estate, Carrying Amount of Mortgages

421,000

$ 77,000,000,000

Business Acquisition, Cost of Acquired Entity, Purchase Price

765,724,000

Business Acquisition, Cost of Acquired Entity, Cash Paid

603,724,000

Business Acquisition, Cost of Acquired Entity, Other Noncash Consideration

162,000,000

Escrow Deposit

85,000,000

Revolving Loan Facility to Finance Leveraged Buyout

100,000,000

Repayments of Long-term Lines of Credit

350,000,000

Line of Credit Facility, Maximum Borrowing Capacity

990,000

$ 1,700,000

Business Acquisition, Purchase Price Allocation, Goodwill Amount

300,843,000

^[1]

$ 102,374,000

300,843,000

^[1]

$ 102,374,000

Business Acquisition, Purchase Price Allocation, Notes Payable and Long-term Debt

(864,969,000)

121,458,000

(864,969,000)

121,458,000

Business Acquisition, Purchase Price Allocation, Other Assets

77,011,000

Altisource [Member]

Revolving Loan Facility to Finance Leveraged Buyout

75,000,000

Litton Loan Servicing LP [Member] | Employee Severance [Member]

Litton Loan Servicing LP [Member] | Contract Termination [Member]

10,119,000

Business Exit Costs

$ 4,779,000

Litton Loan Servicing LP [Member]

Mortgage Loans on Real Estate, Carrying Amount of Mortgages

245,000,000

$ 38,600,000,000

Business Acquisition, Cost of Acquired Entity, Purchase Price

247,154,000

Revolving Loan Facility to Finance Leveraged Buyout

2,100,000,000

Business Acquisition, Acquiree Debt Repaid

$ 1,170,000

2,400,000,000

$ 2,400,000,000

Proceeds from Issuance of Senior Long-term Debt

575,000,000

Business Acquisition Increase in Acquisition Consideration, Post-closing Adjustment

214,000

Proceeds from Sale of Property, Plant, and Equipment

$ 418,000

Period Over Which Severance Plans Remain In Effect (in Years)

one

Reserve Funded For Benefit of Note Holders

$ 10,119,000

42,535,000

Debt Issuance Cost

$ 11,500,000

Amortization Period, Debt Issuance Costs (in Years)

five

Other Nonrecurring Expense

49,552,000

Severance And Other Complensation Related Charges

33,127,000

Amortization of Acquired Intangible Assets

6,778,000

Depreciation

1,967,000

Business Combination, Acquisition Related Costs

384,000

Pro Forma Goodwill Impairment Loss

154,065,000

Pro Forma Losses on Servicing Advances

33,734,000

Goodwill, Allocation Adjustment

$ 8,192,000

HomEq Acquisition [Member] | Employee Severance [Member]

HomEq Acquisition [Member] | Contract Termination [Member]

20,727,000

Business Exit Costs

$ 251,000

7,794,000

HomEq Acquisition [Member]

Mortgage Loans on Real Estate, Carrying Amount of Mortgages

134,000

$ 22,400,000,000

Business Acquisition, Cost of Acquired Entity, Purchase Price

1,200,000,000

Business Acquisition, Cost of Acquired Entity, Cash Paid

194,130,000

Escrow Deposit

14,342,000

Business Acquisition Increase in Acquisition Consideration, Post-closing Adjustment

3,977,000

(29,625,000)

Proceeds from Sale of Property, Plant, and Equipment

888,000

Other Nonrecurring Expense

20,727,000

51,136,000

Severance And Other Complensation Related Charges

32,954,000

Amortization of Acquired Intangible Assets

5,486,000

Depreciation

5,840,000

Business Combination, Acquisition Related Costs

2,556,000

Notes Issued

852,617,000

Structured Servicing Advance Financing Facility Borrowing Capacity

1,000,000,000

Business Acquisition Purchase Price, Funds Released from Escrow Under Senior Secured Term Loan Facility

150,000,000

Line of Credit Facility, Maximum Borrowing Capacity

350,000,000

Business Acquisition, Purchase Price Receivable

1,449,000

Other Asset Impairment Charges

5,840,000

Payments for Advances Held in Escrow Providing Acquirer Reimbursement

$ 3,500,000

Payments of Financing Costs

10,110,000

Business Exit Costs

7,794,000

Impairment of Leasehold

$ 5,840,000

Effective Income Tax Rate, Continuing Operations

37.00%

Payments for Restructuring

$ 2,900,000

Business Acquisition, Purchase Price Allocation, Goodwill Amount

12,810,000

$ 12,810,000

Business Acquisition, Cost of Acquired Entity, Purchase Price

1,219,956

(765,724,000)

$ (2,670,491,000)

$ (1,165,673,000)

$ (765,724,000)

$ (2,670,491,000)

(1,165,673,000)

Business Acquisition, Cost of Acquired Entity, Cash Paid

$ 22,000,000

22,000,000

$ 840,000,000

Repayments of Long-term Lines of Credit

156,968,000

Other Nonrecurring Expense

29,236,000

19,961,000

42,837,000

$ 31,122,000

$ 18,746,000

$ 472,000

1,270

50,340,000

52,603,000

Depreciation

$ 5,720,000

$ 4,160,000

$ 7,512,000

Income Tax, Interest Rate, Combined Statutory Rate

36.12%

[1]	Initial fair value estimate

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 1) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Match Funded Liabilties [Member] | Homeward Acquisition [Member]

Business Acquisition, Purchase Price Allocation, Other Liabilities

$ (1,997,459)

Accrued Bonus [Member] | Homeward Acquisition [Member]

Business Acquisition, Purchase Price Allocation, Other Liabilities

(35,201)

Checks Held for Escheat [Member] | Homeward Acquisition [Member]

Business Acquisition, Purchase Price Allocation, Other Liabilities

^[1]

(16,418)

Homeward Acquisition [Member] | Mortgage Servicing Rights [Member]

Business Acquisition, Purchase Price Allocation, Other Assets

358,119

Homeward Acquisition [Member] | Match funded advances

Business Acquisition, Purchase Price Allocation, Other Assets

2,266,882

Business Acquisition, Purchase Price Allocation, Other Assets

Cash

79,511

Loans held for sale (1)

^[1]

558,721

$ 77,011

Deferred tax assets (1)

^[1]

47,346

Premises and equipment (1)

^[1]

16,803

Debt service accounts

69,287

Investment in unconsolidated entities (1)

^[1]

5,485

Receivables and other assets (1)

^[1]

56,886

Business Acquisition, Purchase Price Allocation, Other Liabilities

^[1]

(80,112)

Total identifiable net assets

464,881

Goodwill (1)

300,843

^[1]

102,374

Total consideration

765,724

Lines of credit and other secured borrowings

(864,969)

121,458

Cash

79,511

$ 23,791

Investment in unconsolidated entities (1)

(3,759,883)

(2,701,946)

(1,174,999)

Total consideration

$ (765,724)

$ (2,670,491)

$ (1,165,673)

[1]	Initial fair value estimate

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 2) - Homeward Acquisition [Member] $ in Thousands	Dec. 31, 2012 USD ($)
Revenues	$ 5,881
Net income	$ 44

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 3) - Homeward Acquisition [Member] $ in Thousands	Dec. 31, 2012 USD ($)
Fiscal Year 2012 [Member]
Revenues	$ 1,362,927
Net income (loss)	254,051
Fiscal Year 2011 [Member]
Revenues	1,085,914
Net income (loss)	$ 163,647

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Feb. 15, 2013	Dec. 31, 2011	Dec. 31, 2010
Litton Acquisition [Member] \| Match funded advances
Business Acquisition, Purchse Price Allocation, Other Assets	$ 2,468,137		$ 2,468,137
Litton Acquisition [Member] \| Mortgage Servicing Rights [Member]
Business Acquisition, Purchse Price Allocation, Other Assets	144,314		144,314
Litton Acquisition [Member]
Cash	23,791		23,791
Business Acquisition, Purchse Price Allocation, Other Assets	3,670		3,670
Servicing liabilities	(8,972)		(8,972)
Checks held for escheat	(3,939)		(6,145)
Checks held for escheat	2,206
Accrued expenses	(18,544)		(25,471)
Accrued expenses	6,927
Total identifiable net assets	2,613,061		2,604,869
Total identifiable net assets	8,192
Goodwill	57,430		65,622
Goodwill	(8,192)
Total consideration	2,670,491		2,670,491
Litton debt repaid to Goldman Sachs at closing	(2,423,123)		(2,423,123)
Base purchase price, as adjusted	247,368		247,368
Premises and equipment	3,386		3,386
Receivables	1,218		2,159
Receivables	(941)
Cash	79,511		23,791
Total consideration	(765,724)		$ (2,670,491)	$ (1,165,673)
Litton debt repaid to Goldman Sachs at closing	$ 22,000	$ 840,000

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 5) - Litton Acquisition [Member]
$ in Thousands

4 Months Ended

Dec. 31, 2011

USD ($)

Fiscal Year 2011 [Member]

$ 62,750

Net loss (1)

$ (20,910)

^[1]

[1]

Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 6) - Litton Acquisition [Member] - USD ($)
$ in Thousands

4 Months Ended

12 Months Ended

Dec. 31, 2011

Dec. 31, 2012

$ 642,033

Fiscal Year 2010 [Member]

52,407

^[1]

632,721

^[1]

$ (169,886)

$ 62,750

^[2]

$ (20,910)

[1]

In December 2010, Litton deemed goodwill to be wholly impaired and wrote off the balance of $154,065. Litton also recorded a provision for losses on servicing advances of $33,734 in 2010.

[2]

Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 7) - HomEq Acquisition [Member] $ in Thousands	Dec. 31, 2012 USD ($)
Checks Held for Escheat [Member]
Business Acquisition, Purchase Price Allocation, Other Liabilities	$ (4,616)
Accrued Bonus [Member]
Business Acquisition, Purchase Price Allocation, Other Liabilities	(3,037)
Servicing Liabilities [Member]
Business Acquisition, Purchase Price Allocation, Other Liabilities	(709)
Other Liabilities Associated With Match Funded Liabilities [Member]
Business Acquisition, Purchase Price Allocation, Other Liabilities	(964)
Mortgage Servicing Rights [Member]
Business Acquisition, Purchase Price Allocation, Other Assets	84,324
Match funded advances
Business Acquisition, Purchase Price Allocation, Other Assets	1,063,180
Receivables	7,957
Premises and equipment	6,728
Total identifiable net assets	1,152,863
Goodwill	12,810
Total consideration	$ 1,165,673

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 8) - HomEq Acquisition [Member] - USD ($)
$ in Thousands

4 Months Ended

12 Months Ended

Dec. 31, 2010

$ 43,127

$ 458,548

Net loss (1)

$ (26,953)

^[1]

$ 42,786

[1]

Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 9) - HomEq Acquisition [Member] - USD ($)
$ in Thousands

4 Months Ended

12 Months Ended

Dec. 31, 2010

$ 43,127

$ 458,548

Employee Severance [Member]

$ (26,953)

^[1]

$ 42,786

[1]

Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 10) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2018

Dec. 31, 2009

^[2]

^[1]

$ 5,163

^[1]

$ 1,332

^[1]

^[1],[2]

2,869

33,127

32,954

Facility Closing [Member]

^[2]

Payments

^[2]

(8,032)

(29,296)

(31,622)

^[3]

4,891

^[1]

5,287

^[1]

7,794

^[1]

^[1],[3]

5,030

7,794

^[3]

176

Payments

^[3]

(5,602)

(2,606)

Total [Member]

^[1]

4,891

10,450

9,126

^[1]

7,899

33,127

40,748

176

Payments

(13,634)

(31,902)

(31,622)

$ 64,089

14,666

$ 3,259

$ 8,853

$ 5,389

[1]	All charges were recorded in the Servicing segment. Charges related to employee termination benefits and lease termination costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the Consolidated Statements of Operations. The liabilities are included in Other liabilities in the Consolidated Balance Sheet.
[2]	Employee termination benefits include severance expense of $20,727 and $10,119 related to HomEq Servicing and Litton, respectively. The remaining liability for employee termination benefits related to the HomEq Acquisition was settled in 2011. We paid the liability for employee termination benefits related to the Litton Acquisition during 2012.
[3]	The lease agreements that we assumed for the HomEq facilities expire in 2017 and 2018. In December 2010, we exercised our option to terminate the HomEq lease agreements effective in 2013 and provided formal notice to the lessors. At that time, we recorded a charge of $7,794 to establish a reserve for the remaining lease payments discounted through the early termination date, including early termination penalties due in 2013. The balance at December 31, 2011 represented the remainder of the liability for the HomEq lease payments. In March 2012, we ceased using the Litton Georgia facility and recorded a charge of $4,779 to establish a liability for the remaining lease payments discounted through the lease expiration date in 2017. This lease does not contain an option for early termination, and we are actively attempting to sublease the space. In June 2012, we negotiated a buyout of the lease on the HomEq California facility for $2,900 which resulted in an additional expense of $251 as the payment exceeded the liability, net of unamortized discount.

Note 2 BUSINESS ACQUISITIONS (Detail) - (Table 11) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Homeward Acquisition [Member]
Balance at December 31	$ 300,843
Homeward Acquisition	300,843
Litton Acquisition [Member]
Balance at December 31	57,430	$ 57,430
HomEq Acquisition [Member]
Balance at December 31	12,810	12,810
Balance at December 31	371,083	$ 70,240
Homeward Acquisition	$ 300,843

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Note 3 ASSET SALES AND FINANCING (Detail) - USD ($) $ in Thousands	1 Months Ended	10 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2012
Asset Sale Transaction H [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Sold	$ 15,200,000
Purchase price, as adjusted	$ 138,792
Proceeds from Sale of Mortgage Servicing Rights (MSR)		$ 67,500,000	$ 320,381
Payments for (Proceeds from) Mortgage Servicing Rights		(3,100,000)
Business Acquisition, Post Closing Adjustment, Receivable		$ 1,410	$ 1,410

The cash inflow from the sale of servicing rights, which contractually entitle the servicer to receive fees and ancillary revenues for performing billing, collection, disbursement and recordkeeping services in connection with a mortgage portfolio. Rights may be obtained via (1) acquisition or assumption of a servicing obligation that does not relate to financial assets of the servicer or its consolidated affiliates; or (2) by originating mortgage loans and then (a) transferring the loans to a Variable Interest Entity (VIE) in a transaction that meets the necessary transfer and classification requirements, or (b) transferring the loans in a transaction that meets the requirements for sale accounting.

Match funded advances | Initial Sale [Member] | Advance SPE's [Member]

Note 3 ASSET SALES AND FINANCING (Detail) - (Table 1) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Match funded advances | Advance SPE's [Member]

$ 413,374

Debt Service Account [Member] | Initial Sale [Member] | Advance SPE's [Member]

413,374

Debt Service Account [Member] | Advance SPE's [Member]

14,786

Prepaid Lender Fees & Debt Issuance Cost [Member] | Initial Sale [Member] | Advance SPE's [Member]

14,786

Prepaid Lender Fees & Debt Issuance Cost [Member] | Advance SPE's [Member]

5,422

Other Prepaid Expenses [Member] | Initial Sale [Member] | Advance SPE's [Member]

5,422

Other Prepaid Expenses [Member] | Advance SPE's [Member]

1,928

Match funded advances | Initial Sale [Member] | Advance SPE's [Member]

1,928

Match funded advances | Advance SPE's [Member]

(358,335)

Accured Interest Payable and Other Accrued Expenses [Member] | Initial Sale [Member] | Advance SPE's [Member]

(358,335)

Net assets of Advance SPEs (3)

(841)

^[1]

76,334

Accured Interest Payable and Other Accrued Expenses [Member] | Flow Sale [Member] | Advance SPE's [Member]

Net assets of Advance SPEs (3)

^[1]

Accured Interest Payable and Other Accrued Expenses [Member] | Advance SPE's [Member]

Net assets of Advance SPEs (3)

(841)

^[1]

76,334

Mortgage Servicing Rights [Member] | Initial Sale [Member]

Mortgage Servicing Rights [Member] | Flow Sale [Member]

^[2]

62,458

Mortgage Servicing Rights [Member]

^[2]

254,149

Match funded advances | Initial Sale [Member]

^[2]

316,607

Match funded advances | Flow Sale [Member]

^[3]

^[3]

2,827,227

Match funded advances

Amount due from HLSS for post-closing adjustments at December 31, 2012

^[3]

2,827,227

Initial Sale [Member]

Sales price, as adjusted

138,792

Cash received

138,792

Flow Sale [Member]

Sales price, as adjusted

3,081,376

Amount due from HLSS for post-closing adjustments at December 31, 2012

(1,410)

Cash received

3,079,966

Sales price, as adjusted

3,220,168

Amount due from HLSS for post-closing adjustments at December 31, 2012

(1,410)

Cash received

3,218,758

Carrying (Reported) Amount, Fair Value Disclosure [Member]

$ 4,343

$ 15,470

$ (24,637)

[1]	Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of advance financing subsidiary and special purpose entity.
[2]	Reported in the Consolidated Statements of Cash Flows cash flows with financing activities as Proceeds from sale of mortgage servicing rights accounted for as a financing.
[3]	Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of match funded advances.

Note 4 FAIR VALUE (Detail) - USD ($)	12 Months Ended
Note 4 FAIR VALUE (Detail) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Match Funded Liabilties [Member] \| Minimum [Member]
Fair Value Inputs, Discount Rate	2.23%
Match Funded Liabilties [Member] \| Maximum [Member]
Fair Value Inputs, Discount Rate	5.92%
Match funded advances
Derivative, Description of Terms	Derivative Financial Instruments We use interest rate swaps to hedge against the effects of changes in interest rates on our borrowings under advance funding facilities. These derivatives are not exchange-traded and therefore quoted market prices or other observable inputs are not available. Fair value is based on information provided by third-party pricing sources. Third-party valuations are derived from proprietary models based on inputs that include yield curves and contractual terms such as fixed interest rates and payment dates. Although we have not adjusted the information obtained from the third-party pricing sources, we review this information to ensure that it provides a reasonable basis for estimating fair value. Our review is designed to identify information that appears stale, information that has changed significantly from the prior period and other indicators that the information may not be accurate. For interest rate contracts, significant increases or decreases in the unobservable portion of the yield curves in isolation will result in substantial changes in the fair value measurement. In addition, we use interest rate caps to minimize future interest rate exposures on variable rate debt issued on servicing advance facilities from increases in one-month LIBOR interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk. We enter into forward trades to provide an economic hedge against changes in fair value on loans held for sale which we carry at fair value. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. Forward contracts are actively traded in the market, thus they are classified within Level 1 of the valuation hierarchy. Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator, or an agreement to extend credit to a mortgage applicant, or an agreement to sell a loan to investors, whereby the interest rate is set prior to funding. IRLCs are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. Fair value amounts of IRLCs are adjusted for expected "fallout" (locked pipeline loans not expected to close), using models that consider cumulative historical fallout rates and other factors. We enter into derivative contracts including interest rate swaps, U.S. Treasury futures and forward contracts to hedge against the effects of changes in the value of the MSRs which we carry at fair value. The fair value of interest rate swaps is based upon projected short-term interest rates and volatility based on published market based sources. Because futures and forward contracts are actively traded in the market, they are classified within Level 1 of the valuation hierarchy. See Note19 for additional information regarding derivative financial instruments.
Mortgage Servicing Rights [Member] \| Minimum [Member]
Fair Value Inputs, Prepayment Rate	12.44%
Fair Value Inputs, Probability of Default	14.98%
Mortgage Servicing Rights [Member] \| Maximum [Member]
Fair Value Inputs, Prepayment Rate	20.76%
Fair Value Inputs, Probability of Default	23.10%
Mortgage Servicing Rights [Member]
Fair Value Inputs, Prepayment Rate	16.83%
Fair Value Inputs, Discount Rate	20.00%
Homeward Acquisition [Member]
Increase (Decrease) in Derivative Assets (in Dollars)	$ 4,946,000
Servicing Asset at Fair Value, Additions (in Dollars)	$ 82,275,000
Fair Value Meaured on a Recurring Basis [Member]
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]	Loans Held for sale Loans held for sale that we measure at fair value on a recurring basis are subject to changes in fair value due to fluctuations in interest rates from the closing date through the date of the sale of the loan into the secondary market. These loans are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conforming mortgage loans are typically sold. For all other loans held for sale which we report at the lower of cost or fair value, current market illiquidity has reduced the availability of observable pricing data. When we enter into an agreement to sell a loan to an investor at a set price, the loan is valued at the commitment price. We base the fair value of uncommitted loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. The more significant assumptions used in the December 31, 2012 valuation of performing loans include: historical default rates of 5% to 10%; re-performance rates on defaulted loans of 25%; loss severity on defaulted loans of 20% to 50%; an average resolution timeline of 12 months; an average coupon rate of 7%; and a discount rate of 10%. Significant assumptions used in the December 31, 2012 valuation of nonperforming loans include: the current market value of the underlying collateral based on third party sources such as appraisals or broker price opinions; a resolution timeline of one to 84 months depending on the stage of delinquency, the state in which the property is located and the type of property; estimated foreclosure and disposition costs that are based on historical experience and considering that state in which the property is located and the type of property; and a discount rate of 15%.
Loans and Leases Receivable, Description	Loans - Restricted for Securitization Investors We based the fair value of Loans - restricted for securitization investors on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions included expected prepayment and delinquency rates and cumulative loss curves.
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance (in Dollars)	$ 2,378,000	$ 2,290,000
Servicing Asset Retained On Sale (in Dollars)	2,908
Gain (Loss) on Sale of Derivatives (in Dollars)	$ 1,173,000	$ 5,114,000
Derivative, Description of Terms	Advances We value advances that we make on loans that we service for others at their carrying amounts because they have no stated maturity, generally are realized within a relatively short period of time and do not bear interest.
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]	Held for Sale As part of the Homeward Acquisition, we acquired Homeward’s prime residential loan origination platform. These loans are originated or purchased and held until sold to secondary market investors. The loans are typically warehoused for a period after origination or purchase before they are sold into the secondary market, primarily to Government Sponsored Enterprises (GSEs). The servicing rights and servicing obligations of mortgage loans are generally retained upon sale into the secondary market. We elected to measure these loans at fair value on a recurring basis. At each reporting date, we measure the loans at fair value and report changes in fair value in earnings in the period in which the changes occur. We account for all other residential mortgage loans that we do not intend to hold to maturity at the lower of cost or fair value computed on an aggregate basis. We account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in gain (loss) on loans held for sale, net, in the period in which the change occurs. We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent greater than 89 days or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse interest accrued but not received. We return loans to accrual status only when we reinstate the loan and have no significant uncertainty as to collectibility.
Long-term Debt, Description	Mortgage Servicing Rights Amortized Cost MSRs We estimate the fair value of MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience, both of which we derive from our historical experience and available market data. Other assumptions used in our internal valuation are: Cost of servicing Interest rate used for computing float earnings Discount rate Compensating interest expense Interest rate used for computing the cost of Servicing advances Collection rate of other ancillary fees The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, prepayment penalties, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We develop the discount rate internally, and we consider external market-based assumptions in determining the interest rate for the cost of financing advances, the interest rate for float earnings and the cost of servicing. The more significant assumptions used in the December 31, 2012 valuation include prepayment speeds ranging from 12.44% to 20.76% (depending on loan type) and delinquency rates ranging from 14.98% to 23.10% (depending on loan type). Other assumptions include an interest rate of 1-month LIBOR plus a range of 4% to 5.75% for computing the cost of financing advances, an interest rate of 1-month LIBOR for computing float earnings and a discount rate of approximately 20%. We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans. The risk factors used to assign loans to strata include the credit score (FICO) of the borrower, the loan to value ratio and the default risk. Our strata include: Subprime Re-performing ALT A Special servicing High-loan-to-value Other As disclosed above and in Note1 we established a valuation allowance for impairment on the high-loan-to-value stratum of our MSRs because the estimated fair value was less than the carrying value. For all other strata, the fair value exceeded the carrying value at December 31, 2012. Fair Value MSRs MSRs carried at fair value are classified within Level 3 of the valuation hierarchy due to the use of significant unobservable inputs and the inactive market for such assets. Fair value of these MSRs is sensitive to changes in unobservable inputs, as a change in those inputs to a different amount might result in significantly higher or lower fair value measurement. Significant unobservable inputs include mortgage prepayment speeds, constant default rates, discount rates, servicing advances and delinquency rates. We estimate the fair value of our MSRs carried at fair value by using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The key assumptions used in the valuation of these MSRs include: Mortgage prepayment speeds; Delinquency rates and Discount rates. The primary assumptions used in the December 31, 2012 valuation include a 16.83% weighted average constant prepayment rate and a discount rate equal to 1-Month LIBOR plus a range of 9% to 10%. The cash flow and prepayment assumptions used in our discounted cash flow models are based on empirical data drawn from the historical performance of our MSRs adjusted to reflect current market conditions, which we believe are consistent with assumptions used by market participants valuing similar MSRs. On a quarterly basis, the valuation of our MSRs is reviewed by a third party valuation expert.
Receivables, Credit Card, Third Party Intermediaries, Arrangements, Description	Receivables The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization.
Debt Instrument, Description	Borrowings The carrying value of match funded liabilities and secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other match funded or secured borrowings that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We estimate principal repayments of match funded liabilities during the amortization period based on our historical advance collection rates and taking into consideration any plans to refinance the notes. The more significant of the assumptions used in the December 31, 2012 valuation of the match funded liabilities bearing a fixed interest rate were discount rates of 2.23% - 5.92% and estimated repayments using an advance reduction curve that is based on historical experience. For the SSTL, we used a discount rate of 6.98% and the repayment schedule specified in the loan agreement. Prior to the redemption of our debt securities in 2012, we based their fair value on quoted prices in markets with limited trading activity.

Note 4 FAIR VALUE (Detail) - (Table 1) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Financial assets:

Loans held for sale, at fair value (1)

^[1]

$ 426,480

Loans held for sale, at lower of cost or fair value (2)

^[2]

82,866

20,633

Advances and match funded advances(3)

^[3]

3,233,707

3,733,502

Receivables, net (3)

^[3]

167,459

83,202

Loans, net – restricted for securitization investors (3)

^[3]

58,560

Financial liabilities:

Match funded liabilities (3)

^[3]

2,532,745

2,558,951

Lines of credit and other secured borrowings (3)

^[3]

1,096,679

540,369

Debt securities (3)

^[3]

82,554

Secured borrowings – owed to securitization investors (3)

^[3]

53,323

Derivative financial instruments (1):

IRLCs

^[1]

5,781

Interest rate swaps

^[1]

(10,836)

(14,491)

Forward MBS trades

^[1]

(1,719)

U.S. Treasury futures

^[1]

(1,258)

Interest rate caps

^[1]

168

3,600

Nondeliverable FX forward contracts

^[1]

(5,785)

Impaired stratum of MSRs (2)(4)

^[2],[4]

214

MSRs, at fair value (1)

^[1]

85,213

214

Portion at Fair Value, Fair Value Disclosure [Member]

Financial assets:

Loans held for sale, at fair value (1)

^[1]

426,480

Loans held for sale, at lower of cost or fair value (2)

^[2]

82,866

20,633

Advances and match funded advances(3)

^[3]

3,233,707

3,733,502

Receivables, net (3)

^[3]

167,459

83,202

Loans, net – restricted for securitization investors (3)

^[3]

55,165

Financial liabilities:

Match funded liabilities (3)

^[3]

2,533,278

2,569,131

Lines of credit and other secured borrowings (3)

^[3]

1,101,504

550,860

Debt securities (3)

^[3]

92,125

Secured borrowings – owed to securitization investors (3)

^[3]

52,652

Derivative financial instruments (1):

IRLCs

^[1]

5,781

Interest rate swaps

^[1]

(10,836)

(14,491)

Forward MBS trades

^[1]

(1,719)

U.S. Treasury futures

^[1]

(1,258)

Interest rate caps

^[1]

168

3,600

Nondeliverable FX forward contracts

^[1]

(5,785)

Impaired stratum of MSRs (2)(4)

^[2],[4]

214

MSRs, at fair value (1)

^[1]

85,213

214

Loans held for sale, at lower of cost or fair value (2)

^[5]

82,866

20,633

Loans, net – restricted for securitization investors (3)

^[6]

58,560

Match funded liabilities (3)

^[7]

106,376

47,198

Secured borrowings – owed to securitization investors (3)

^[8]

$ 53,323

[1]	Measured at fair value on a recurring basis.
[2]	Measured at fair value on a non-recurring basis.
[3]	Financial instruments disclosed, but not carried, at fair value.
[4]	The high-loan-to-value stratum is measured at fair value on a non-recurring basis and is classified as Level 3 because of the nature of the valuation inputs. The values are net of a valuation allowance of $2,378 and $2,290 at December 31, 2012 and 2011, respectively.
[5]	These loans primarily represent non-performing subprime single-family residential loans that we do not intend to hold to maturity. The balances at December 31, 2012 and 2011 are net of valuation allowances of $14,659 and $14,257, respectively. In December 2012, we acquired non-performing mortgage loans with an aggregate UPB of $124,341 for cash consideration of $65,356. We sold these loans to Altisource Residential, LP in February 2013 for an insignificant gain.
[6]	Loans - restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011.
[7]	Includes $63,406 of accrued expenses attributable to Homeward, including $38,093 of accruals related to loan repurchase obligations and reserves for indemnification for servicing errors and for compensatory fees for foreclosures that exceed investor timelines.
[8]	Secured borrowings - owed to securitization investors consisted of certificates representing beneficial ownership interests in four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans.

Note 4 FAIR VALUE (Detail) - (Table 2) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Derivative Financial Instruments, Assets [Member]

$ (16,676)

Purchases (1)

4,946

^[1]

$ 3,688

Issuances

(405)

Total realized and unrealized gains and (losses) (2):

2,451

(85)

6,992

$ 3,773

^[2]

7,331

^[2]

(8,315)

^[2]

(984)

(10,668)

MSRS [Member]

Total realized and unrealized gains and (losses) (2):

Purchases (1)

^[1]

85,183

Issuances

85,183

^[2]

^[2]

85,213

Total [Member]

(16,676)

Purchases (1)

^[1]

90,129

Issuances

(405)

Total realized and unrealized gains and (losses) (2):

2,451

92,175

^[2]

7,361

^[2]

(8,315)

^[2]

(954)

$ 74,545

$ (146,810)

(93,483)

(240,293)

^[2]

(14,435)

Derivative Financial Instruments, Assets [Member]

$ (15,351)

$ 247,478

[1]	Includes $4,946 of derivatives and $82,275 of fair value MSRs acquired in connection with the Homeward Acquisition. Also includes $2,908 of MSRs retained on the sale of loans.
[2]	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively.

Note 4 FAIR VALUE (Detail) - (Table 3) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

$ (16,676)

$ (15,351)

Purchases

4,946

^[1]

3,688

Total realized and unrealized gains and (losses) (2):

(2,451)

$ 6,992

3,773

^[2]

(5,881)

^[2]

783

^[2]

(5,098)

$ (16,676)

$ (15,351)

Derivative Financial Instruments [Member] | Trading Securities [Member]

93,483

$ (240,293)

[1]	Includes $4,946 of derivatives and $82,275 of fair value MSRs acquired in connection with the Homeward Acquisition. Also includes $2,908 of MSRs retained on the sale of loans.
[2]	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively.

Note 4 FAIR VALUE (Detail) - (Table 4)
$ in Thousands

12 Months Ended

Dec. 31, 2010

USD ($)

Total realized and unrealized gains and (losses) (2):

Derivative Financial Instruments [Member] | Net Income, Other [Member]

^[1]

Total realized and unrealized gains and (losses) (2):

Derivative Financial Instruments [Member]

(133)

^[1]

(45)

Total realized and unrealized gains and (losses) (2):

(738)

(14,435)

^[1]

(14,568)

^[1]

Trading Securities, Auction Rate [Member] | Trading Securities [Member]

(15,351)

Total realized and unrealized gains and (losses) (2):

Trading Securities, Auction Rate [Member] | Net Income, Other [Member]

(7,909)

^[1]

Total realized and unrealized gains and (losses) (2):

Trading Securities, Auction Rate [Member]

^[1]

247,464

(146,810)

Total realized and unrealized gains and (losses) (2):

(92,745)

(239,555)

Trading Securities, Subordinates and Residuals [Member] | Trading Securities [Member]

^[1]

(7,909)

^[1]

Total realized and unrealized gains and (losses) (2):

Trading Securities, Subordinates and Residuals [Member] | Net Income, Other [Member]

(59)

^[1]

Total realized and unrealized gains and (losses) (2):

Trading Securities, Subordinates and Residuals [Member]

^[1]

Total realized and unrealized gains and (losses) (2):

Trading Securities [Member]

^[1]

(59)

^[1]

Total realized and unrealized gains and (losses) (2):

Net Income, Other [Member]

(7,968)

^[1]

Total realized and unrealized gains and (losses) (2):

(133)

^[1]

247,478

(146,810)

(93,483)

(240,293)

(14,435)

^[1]

(22,536)

^[1]

$ (15,351)

[1]	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively.

Note 5 LOANS HELD FOR RESALE,AT FAIR VALUE (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Homeward Acquisition [Member]
Loans Held-for-sale, Mortgages	$ 558,721
Increase (Decrease) in Loans Held-for-sale	426,480
Loans Held-for-sale, Mortgages	426,480,000
Increase (Decrease) in Loans Held-for-sale	$ (558,721,000)	$ (20,633,000)

Carrying amount of mortgage loans to individuals not classified as held for investment but are held-for-sale.

HomEq Acquisition [Member]

Note 6 ADVANCES (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Homeward Acquisition [Member]
AdvancesPaymentsOnBehalfOfByBorrower	$ 56,903
AdvancesPaymentsOnBehalfOfByBorrower	$ 184,463	$ 103,591

Note 6 ADVANCES (Detail) - (Table 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Servicing, Principal and Interest [Member]
Servicing:
Advances	$ 83,617	$ 30,462
Servicing, Taxes and Insurance [Member]
Servicing:
Advances	51,447	33,387
Servicing, Foreclosures and Bankruptcy Costs [Member]
Servicing:
Advances	41,296	35,832
Servicing [Member]
Servicing:
Advances	176,360	99,681
Corporate Items and Other [Member]
Servicing:
Advances	8,103	3,910
Advances	$ 184,463	$ 103,591

Note 7 MATCH FUNDED ADVANCES (Detail) $ in Billions	Dec. 31, 2012 USD ($)
Match funded advances
Financing Receivable, Gross	$ 2.2

Note 7 MATCH FUNDED ADVANCES (Detail) - (Table 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Servicing, Principal and Interest [Member]
Match Funded Advances	$ 1,577,808	$ 1,679,536
Servicing, Taxes and Insurance [Member]
Match Funded Advances	1,148,486	1,452,707
Servicing, Foreclosures and Bankruptcy Costs [Member]
Match Funded Advances	322,950	497,668
Match Funded Advances	$ 3,049,244	$ 3,629,911

Note 8 MORTGAGE SERVICING (Detail) - USD ($)	12 Months Ended
Note 8 MORTGAGE SERVICING (Detail) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2008	Feb. 15, 2013
Acquisition Of MSR Transaction [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	$ 22,200,000,000
Loans Subserviced Prior To Acquisition	9,900,000,000
Advances Acquired	1,200,000,000
JP Morgan Chase Bank [Member]
Advances Acquired	557,184,000
Aurora Bank [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	1,800,000,000
Advances Acquired	52,911,000
Bank Of America [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	10,100,000,000
Pledged Assets, Not Separately Reported, Other	58,472,000
Fannie_Freddie [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	316,000,000
Fannie [Member]
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	2,200,000,000
HLSS [Member]
Impaired Financing Receivable, Unpaid Principal Balance	79,360,874,000
Homeward Acquisition [Member]
Assets, Fair Value Adjustment	85,213
Unpaid Principal Balance Of Loans Related To Servicing Assets Acquired	8,100,000,000
Pledged Assets, Not Separately Reported, Other	273,028,000
Servicing Asset at Amortized Value, Valuation Allowance	2,378,000	$ 2,290,000	$ 3,624,000
Carrying Value Of High Loan To Value Stratum MSRs	0	214,000
Certain Loans Acquired in Transfer Accounted for as Held-to-maturity Debt Securities, Acquired During Period, at Acquisition, at Fair Value	82,275,000
Impaired Financing Receivable, Unpaid Principal Balance				$ 107,300,000,000
Unpaid Principal Balance Of Small Balance Commerical Loans Serviced	2,100,000,000	586,080,000
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	$ 1,300,000,000	$ 555,500,000

Note 8 MORTGAGE SERVICING (Detail) - (Table 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Loan Servicing and Subservicing Fees [Member]
Income from Mortgage Servicing Rights	$ 581,067	$ 341,438	$ 226,284
HAMP Fees [Member]
Income from Mortgage Servicing Rights	76,764	42,025	32,363
Late Fees [Member]
Income from Mortgage Servicing Rights	69,281	38,557	32,760
Loan Collection Fees [Member]
Income from Mortgage Servicing Rights	15,960	11,223	8,958
Float Earnings [Member]
Income from Mortgage Servicing Rights	3,749	2,105	2,843
Other Income [Member]
Income from Mortgage Servicing Rights	57,604	23,527	18,491
Income from Mortgage Servicing Rights	$ 804,425	$ 458,875	$ 321,699

Note 8 MORTGAGE SERVICING (Detail) - (Table 2) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Litton Acquisition [Member]

$ 84,324

$ 144,314

^[1]

$ 275,844

MSR Acquistions [Member]

Fair value at end of year

^[2]

181,979

23,425

Balance at December 31,

293,152

193,985

117,802

743,830

340,015

237,407

Servicing transfers and adjustments

(69,287)

(4)

(29)

Decrease in impairment valuation allowance

(88)

574

Amortization (3)

^[3]

(74,171)

(45,721)

(31,627)

Balance at December 31,

$ 676,712

$ 293,152

$ 193,985

[1]	See Note 2 for additional information regarding the acquisition of MSRs from Homeward.MSR asset acquisitions for 2012 include:
[2]	MSR asset acquisitions for 2012 include: On April 2, 2012, we completed an acquisition from Saxon Mortgage Services, Inc. (Saxon) of an MSR portfolio of approximately $22.2 billion in UPB of residential mortgage loans, approximately $9.9 billion of which Ocwen had previously subserviced, and approximately $1.2 billion of associated servicing advances (the 2012 Saxon MSR Transaction). To finance the 2012 Saxon MSR Transaction, we utilized a combination of available cash and two new two-year servicing advance facilities. On April 2, 2012, we also completed an acquisition of MSRs from JPMorgan Chase Bank, N.A. (JPMCB) which includes servicing rights for non-prime loans with a UPB of approximately $8.1 billion (the JPMCB MSR Transaction) and $557,184 of servicing advances. Ocwen financed the purchase price through available cash and an existing servicing advance facility. On May 31, 2012, we completed the acquisition of MSRs from Aurora Bank FSB (Aurora) on a portfolio of small-balance commercial mortgage loans with a total UPB of $1.8 billion and $52,911 of servicing advances. On June 11, 2012, we purchased residential MSRs from Bank of America, N.A. (BANA) with respect to mortgage loans with a UPB of approximately $10.1 billion owned by Freddie Mac. We entered into a new servicing advance facility to finance a portion of the related servicing advances acquired in the transaction. At December 31, 2012, the acquired MSRs, which had a carrying value of $58,472, were pledged as collateral for the promissory note used to finance the purchase. On July 2 and 16, 2012, we closed on the acquisitions of MSR portfolios totaling approximately $316 million in UPB of residential mortgage loans owned by Fannie Mae and Freddie Mac. On September 4, 2012, we purchased an additional MSR portfolio of approximately $2.2 billion in UPB of residential mortgage loans owned by Fannie Mae. We boarded these loans on October 1, 2012.
[3]	In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations.

Note 8 MORTGAGE SERVICING (Detail) - (Table 3) $ in Thousands	Dec. 31, 2012 USD ($)
2013	$ 122,365
2014	100,316
2015	82,240
2016	67,421
2017	$ 55,273

Note 8 MORTGAGE SERVICING (Detail) - (Table 4) $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)
Interest Rate Change of 10% [Member]
	10%
Weighted average prepayment speeds	$ (6,374)
Discount rate (Option-adjusted spread)	$ (3,533)
Interest Rate Change Of 20% [Member]
	20%
Weighted average prepayment speeds	$ (13,681)
Discount rate (Option-adjusted spread)	$ (6,448)

Note 8 MORTGAGE SERVICING (Detail) - (Table 5) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Residential Mortgage [Member]

Servicing

$ 175,762,161

^[1]

$ 78,675,160

$ 51,252,380

Subservicing

27,903,555

23,524,062

22,634,011

203,665,716

102,199,222

73,886,391

Commercial Real Estate [Member]

Servicing

^[1]

Subservicing

401,031

290,863

434,305

401,031

290,863

434,305

Total [Member]

Servicing

175,762,161

^[1]

78,675,160

51,252,380

Subservicing

28,304,586

23,814,925

23,068,316

204,066,747

$ 102,490,085

$ 74,320,696

$ 203,665,716

[1]	Includes UPB of $79,360,874 for which the Rights to MSRs have been sold to HLSS.

Note 8 MORTGAGE SERVICING (Detail) - (Table 6) $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)
California [Member]
Residential Loans, Amount (in Dollars)	$ 45,851,476
Residential Loans, Count	160,501
Florida [Member]
Residential Loans, Amount (in Dollars)	$ 22,731,227
Residential Loans, Count	136,224
New York [Member]
Residential Loans, Amount (in Dollars)	$ 17,276,718
Residential Loans, Count	67,725
Texas [Member]
Residential Loans, Amount (in Dollars)	$ 9,151,031
Residential Loans, Count	99,935
Illinois [Member]
Residential Loans, Amount (in Dollars)	$ 8,174,504
Residential Loans, Count	53,203
Other States [Member]
Residential Loans, Amount (in Dollars)	$ 100,480,760
Residential Loans, Count	702,368
Residential Loans, Amount (in Dollars)	$ 203,665,716
Residential Loans, Count	1,219,956

Note 9 RECEIVABLE (Detail)	Dec. 31, 2012 USD ($)
Homeward Acquisition [Member]
Financing Receivable, Net	$ 46,546

Note 9 RECEIVABLE (Detail) - (Table 1) - USD ($)
$ in Thousands

Feb. 15, 2013

Dec. 31, 2012

Dec. 31, 2011

Interest Rate Cap [Member] | Receivables [Member]

Interest Rate Cap [Member] | Allowancefor Credit Losses [Member]

^[1]

$ 3,600

Interest Rate Cap [Member]

^[1]

^[1]

3,600

Receivables [Member]

Servicing (1)

^[2]

$ 84,870

53,061

Income taxes receivable

55,292

21,518

Due from related parties (3)

^[3]

1,052

5,568

^[4]

12,361

2,309

Allowancefor Credit Losses [Member]

17,525

4,134

171,100

90,190

Servicing (1)

^[2]

(1,647)

(1,648)

Due from related parties (3)

^[3]

(713)

(5,019)

^[4]

Affordable Housing [Member]

(1,281)

(1,262)

(3,641)

(7,929)

Servicing [Member]

Servicing (1)

^[2]

83,223

51,413

^[3]

339

549

Income taxes receivable

55,292

21,518

$ 1,500,000

Due from related parties (3)

^[5]

58,560

^[4]

12,361

2,309

^[6]

10,795

16,244

2,872

$ 167,459

$ 82,261

[1]	The balance represents the fair value of an interest rate cap that we sold in 2012. See Note 19 for additional information regarding our derivative financial instruments.
[2]	The balances at December 31, 2012 and 2011 arise from our Servicing business and primarily include reimbursable expenditures due from investors and amounts to be recovered from the custodial accounts of the trustees.
[3]	The balances at December 31, 2012 and 2011 primarily represent annual payments to be received through June 2014 for proceeds from sales of investments in affordable housing properties. None of these receivables is delinquent.
[4]	See Note 27 for additional information regarding transactions with Altisource and HLSS.
[5]	Loans - restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011.
[6]	See Note 19 for additional information regarding derivatives.

Note 9 RECEIVABLE (Detail) - (Table 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Affordable Housing [Member]
Allowance for credit losses balance at December 31, 2011	$ 5,019
Allowance for credit losses balance at December 31, 2012	713
Receivables balance at December 31, 2012	1,052
Charge offs	(4,306)
Total [Member]
Allowance for credit losses balance at December 31, 2011	6,281
Allowance for credit losses balance at December 31, 2012	1,994
Receivables balance at December 31, 2012	18,577
Charge offs	(4,693)
Provision	456
Other	(50)
Receivables balance at December 31, 2012	$ 167,459	$ 82,261

An amount representing an agreement for an unconditional promise by the maker to pay the Company (holder) a definite sum of money within one year from the balance sheet date (or the normal operating cycle, whichever is longer), net of any write-downs taken for collection uncertainty on the part of the holder. Such amount may include accrued interest receivable in accordance with the terms of the debt. The debt also may contain provisions and related items including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among a myriad of other features and characteristics. This amount does not include amounts related to receivables held-for-sale.

Note 10 PREMISES AND EQUIPMENT (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment

^[1]

$ 16,803

Depreciation, Depletion and Amortization

$ 5,720

$ 4,160

$ 7,512

Accumulated Depreciation, Depletion and Amortization, Write-down of Property, Plant and Equipment

$ 1,967

$ 5,840

[1]	Initial fair value estimate

Note 10 PREMISES AND EQUIPMENT (Detail) - (Table 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Computer Equipment [Member]
Property, Plant, and Equipment	$ 36,905	$ 15,208
Property, Plant, and Equipment	9,108	5,932
	71,342	36,593
Less accumulated depreciation and amortization	(33,806)	(29,243)
	37,536	7,350
Leasehold improvements	14,960	6,894
Furniture and fixtures	$ 10,369	$ 8,559

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

Convertible Debt Securities [Member]

NOTE 11 DEBT SERVICE ACCOUNTS (Detail)

1 Months Ended

2 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2012

Jul. 31, 2004

USD ($)

Aug. 31, 1997

USD ($)

Aug. 31, 2012

USD ($)

Mar. 28, 2012

USD ($)

$ / shares

Dec. 31, 2012

USD ($)

Dec. 31, 2012

USD ($)

Dec. 31, 2011

USD ($)

Dec. 31, 2010

USD ($)

Dec. 26, 2012

$ / shares

Debt Conversion, Original Debt, Amount (in Dollars)

$ 175,000,000

Debt Instrument, Interest Rate, Stated Percentage

3.25%

Contingent Convertible Senior Unsecured Notes [Member]

Debt Conversion, Original Debt, Amount (in Dollars)

$ 56,410,000

Unsecured Debt

$ 56,435,000

Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares

4,635,159

Debt Instrument, Convertible, Conversion Ratio

82.1693

Debt Conversion Converted Instrument Principal Per Share Amount

$ 1,000,000

Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares

$ 12.17

Shares Attributable To Conversion Of Debt Securities (in Shares) (in Shares) | shares

Debt Conversion Converted Instrument Remaining Amount

$ 25,000

Asset-backed Securities, Securitized Loans and Receivables Series A [Member]

Long-Term Debt Securities, Redemption Rate

102.719%

Gains (Losses) on Extinguishment of Debt

$ 653,000

Advance Funding Facility [Member]

Interest-bearing Deposits in Banks and Other Financial Institutions

$ 88,748,000

115,867,000

Interest-bearing Deposits in Banks and Other Financial Institutions

^[1]

31,710,000

27,191,000

Debt Conversion, Original Debt, Amount (in Dollars)

$ 125,000,000

$ 26,119,000

$ 56,410

Debt Instrument, Interest Rate, Stated Percentage

10.875%

Unsecured Debt

82,554,000

Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares

4,635,159

Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares

$ 31.79

Gains (Losses) on Extinguishment of Debt

$ 2,317,000

$ 2,167,000

$ (3,651,000)

$ (152,000)

[1]	These balances include $25,829 and $19,623 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2012 and 2011, respectively.

Note 12 OTHER ASSETS (Detail) - USD ($)

1 Months Ended

2 Months Ended

12 Months Ended

Dec. 31, 2012

Dec. 31, 2010

Dec. 31, 2011

Single family residential loans

Loans and Leases Receivable, Allowance

$ 14,659

$ 14,257

Financing Receivable, Recorded Investment, Nonaccrual Status

124,341

Payments to Purchase Loans Held-for-sale

65,356

Powerlink Settlement Services [Member]

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures (in Dollars)

5,544

Payments to Acquire Mortgage Servicing Rights (MSR)

57,000

180,039,000

$ 23,425,000

Derivative, Collateral, Right to Reclaim Cash

25,829

19,623

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures (in Dollars)

^[1]

$ 25,187,000

23,507,000

Principal Amount Outstanding on Loans Held-for-sale or Securitization or Asset-backed Financing Arrangement

$ 2,702

[1]	The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note 2.

Amount of allowance to cover probable credit losses on loans and leases. Includes carryover of or adjustments to the allowance for loan losses in connection with business combinations. Excludes allowance for loans and leases covered under loss sharing agreements.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.7(d))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (b)(1)(ii)
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 8
-Subparagraph a(ii)
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 8, 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Subparagraph d
-Article 9

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 114
-Paragraph 20
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section L
-Subsection 1

The cash outflow to obtain servicing rights, which contractually entitle the servicer to receive fees and ancillary revenues for performing billing, collection, disbursement and recordkeeping services in connection with a mortgage portfolio. Rights may be obtained via (1) acquisition or assumption of a servicing obligation that does not relate to financial assets of the servicer or its consolidated affiliates; or (2) by originating mortgage loans and then (a) transferring the loans to a Variable Interest Entity (VIE) in a transaction that meets the necessary transfer and classification requirements, or (b) transferring the loans in a transaction that meets the requirements for sale accounting.

Loans held for sale, at lower of cost or fair value (1)

Note 12 OTHER ASSETS (Detail) - (Table 1) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

^[1]

$ 82,866

$ 20,633

Asset purchase price deposit (2)

^[2]

57,000

Interest earning collateral deposits (3)

^[3]

31,710

27,191

Investment in unconsolidated entities (4)

^[4]

25,187

23,507

Prepaid income taxes (5)

^[5]

23,112

Prepaid lender fees and debt issuance costs, net (6)

^[6]

14,389

27,113

Derivatives, at fair value (7)

^[7]

10,795

Real estate, net

6,205

3,368

Loans – restricted for securitization investors (8)

^[8]

58,560

Prepaid expenses and other

21,414

13,078

$ 272,678

$ 173,450

[1]	These loans primarily represent non-performing subprime single-family residential loans that we do not intend to hold to maturity. The balances at December 31, 2012 and 2011 are net of valuation allowances of $14,659 and $14,257, respectively. In December 2012, we acquired non-performing mortgage loans with an aggregate UPB of $124,341 for cash consideration of $65,356. We sold these loans to Altisource Residential, LP in February 2013 for an insignificant gain.
[2]	In connection with the entry into an agreement on November 2, 2012 to acquire MSRs and related servicing advances from Residential Capital, LLC , OLS made an earnest money cash deposit of $57,000. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 31 for additional information regarding this transaction.
[3]	These balances include $25,829 and $19,623 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2012 and 2011, respectively.
[4]	The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note 2.
[5]	See Note 22 for additional information.
[6]	These balances relate to match funded liabilities and other secured borrowings of the Servicing segment. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.
[7]	See Note 19 for additional information regarding derivatives.
[8]	Loans - restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011.

Note 13 MATCH FUNDED LIABILITIES (Detail)	12 Months Ended
Note 13 MATCH FUNDED LIABILITIES (Detail)	Jan. 31, 2012 USD ($)
Variable Funding Note Series Class A [Member]
Debt Instrument, Periodic Payment, Principal	$ 40,000,000
Homeward Acquisition [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,700,000

Note 13 MATCH FUNDED LIABILITIES (Detail) - (Table 1) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Servicer Advance Revolving Trust A [Member]

^[1]

2.23%

^[1],[2]

May 31, 2043

^[1],[2]

May 31, 2013

^[1],[3]

^[1]

325,000

^[1],[2]

May 31, 2043

^[1],[3]

Servicer Advance Revolving Trust B [Member]

^[1]

$ 325,000

^[1],[3]

^[1]

^[1],[2]

May 31, 2043

^[1],[2]

May 31, 2013

^[1],[3]

^[1]

525,000

^[1],[2]

May 31, 2043

^[1],[3]

Servicer Advance Revolving Trust C [Member]

^[1]

$ 525,000

^[1],[3]

^[1]

^[1],[2]

Dec. 31, 2043

^[1],[2]

Dec. 31, 2013

^[1],[3]

^[1]

250,000

^[1],[2]

Dec. 31, 2043

^[1],[3]

Servicer Advance Revolving Trust D [Member]

^[1]

$ 250,000

^[1],[3]

^[1]

2.98%

^[1],[2]

Dec. 31, 2043

^[1],[2]

Dec. 31, 2013

^[1],[3]

^[1]

248,999

^[1],[2]

Dec. 31, 2043

^[1],[3]

Servicer Advance Revolving Trust E [Member]

^[1]

$ 248,999

^[1],[3]

^[1]

^[1],[2]

Dec. 31, 2044

^[1],[2]

Dec. 31, 2014

^[1],[3]

^[1]

299,278

^[1],[2]

Dec. 31, 2044

^[1],[3]

^[1]

$ 299,278

^[1],[3]

Promissory Note [Member]

^[4]

3.3875%

^[2],[4]

Dec. 31, 2013

^[2],[4]

Dec. 31, 2013

^[3],[4]

^[4]

1,784,043

^[2],[4]

Dec. 31, 2013

^[3],[4]

Advance Receivable Backed Notes Series A [Member]

^[4]

1,784,043

^[3],[4]

^[2],[5]

4.14%

^[2],[5]

Jul. 31, 2023

^[2],[5]

Jul. 31, 2012

^[3],[5]

^[5]

210,000

^[2],[5]

Jul. 31, 2023

^[3],[5]

Advance Receivable Backed Notes Series B [Member]

^[5]

210,000

^[3],[5]

^[6]

3.59%

^[2],[6]

Dec. 31, 2023

^[2],[6]

Dec. 31, 2011

^[3],[6]

^[6]

40,000

^[2],[6]

Dec. 31, 2023

^[3],[6]

Total Fiixed Rate [Member]

^[6]

40,000

^[3],[6]

1,648,277

2,034,043

Variable Funding Note Series Class A [Member]

1,648,277

2,034,043

^[2],[7]

Dec. 31, 2023

^[3],[7]

^[7]

^[7]

^[2],[7]

Dec. 31, 2023

^[2],[7]

Nov. 2012

^[3],[7]

Variable Funding Note Series Class B [Member]

^[7]

^[3],[7]

^[2],[8]

Dec. 31, 2023

^[3],[8]

^[8]

11,687

^[8]

^[2],[8]

Dec. 31, 2023

^[2],[8]

Dec. 2012

^[3],[8]

Advance Receivable Backed Notes Series C [Member]

^[8]

11,687

^[3],[8]

^[2],[9]

Dec. 31, 2015

^[3],[9]

$ 444,984

444,984

^[9]

$ 205,016

^[9]

^[2],[9]

Dec. 31, 2015

^[2],[9]

Apr. 2014

^[3],[9]

$ 444,984

Advance Receivable Backed Notes Series D [Member]

^[9]

205,016

^[3],[9]

$ 444,984

^[2],[9]

Dec. 31, 2043

^[3],[9]

$ 17,288

17,288

^[9]

$ 232,712

^[9]

^[2],[9]

Dec. 31, 2043

^[2],[9]

Dec. 2013

^[3],[9]

$ 17,288

Advance Receivable Backed Notes Series E [Member]

^[9]

232,712

^[3],[9]

$ 17,288

^[2],[10]

Jun. 30, 2016

^[3],[10]

$ 5,905

5,905

^[10]

$ 94,095

^[10]

^[2],[10]

Jun. 30, 2016

^[2],[10]

June 2014

^[3],[10]

$ 5,905

Advance Receivable Backed Notes Series F [Member]

^[10]

94,095

^[3],[10]

$ 5,905

^[2],[11]

Dec. 31, 2015

^[3],[11]

$ 862

862

^[11]

$ 49,138

^[11]

^[2],[11]

Dec. 31, 2015

^[2],[11]

Dec. 2014

^[3],[11]

$ 862

Servicer Advance Revolving Trust F [Member]

^[11]

49,138

^[3],[11]

$ 862

^[1],[2]

May 31, 2043

^[1],[3]

$ 320,367

320,367

^[1]

$ 204,633

^[1]

^[1],[2]

May 31, 2043

^[1],[2]

May 2013

^[1],[3]

$ 320,367

Servicer Advance Revolving Trust G [Member]

^[1]

204,633

^[1],[3]

$ 320,367

^[1],[2]

Dec. 31, 2043

^[1],[3]

$ 127,997

127,997

^[1]

$ 22,003

^[1]

^[1],[2]

Dec. 31, 2043

^[1],[2]

Sept. 2013

^[1],[3]

$ 127,997

Servicer Advance Revolving Trust H [Member]

^[1]

22,003

^[1],[3]

$ 127,997

^[1],[2]

Dec. 31, 2044

^[1],[3]

$ 232,651

232,651

^[1]

$ 40,626

^[1]

^[1],[2]

Dec. 31, 2044

^[1],[2]

Mar. 2014

^[1],[3]

$ 232,651

Homeward Agency Advance Funding Trust 2012-1 [Member]

^[1]

40,626

^[1],[3]

$ 232,651

^[1],[2]

Dec. 31, 2013

^[1],[3]

$ 8,906

8,906

^[1]

$ 16,094

^[1]

^[1],[2]

Dec. 31, 2013

^[1],[2]

Sept. 2013

^[1],[3]

$ 8,906

Homeward DSF Advance Revolving Trust 2012-1 [Member]

^[1]

16,094

^[1],[3]

$ 8,906

^[1],[2]

Dec. 31, 2013

^[1],[3]

$ 1,849

1,849

^[1]

$ 20,151

^[1]

^[1],[2]

Dec. 31, 2013

^[1],[2]

Feb. 2013

^[1],[3]

$ 1,849

Class A1 Term Note [Member]

^[1]

20,151

^[1],[3]

$ 1,849

^[2],[12]

Dec. 31, 2043

^[3],[12]

^[12]

340,185

^[12]

^[2],[12]

Dec. 31, 2043

^[2],[12]

Aug. 2013

^[3],[12]

Class A2 Variable Funding Note [Member]

^[12]

340,185

^[3],[12]

^[2],[12]

Dec. 31, 2043

^[3],[12]

^[12]

^[12]

^[2],[12]

Dec. 31, 2043

^[2],[12]

Aug. 2013

^[3],[12]

Class B Term Note [Member]

^[12]

^[3],[12]

^[2],[12]

Dec. 31, 2043

^[3],[12]

^[12]

15,850

^[12]

^[2],[12]

Dec. 31, 2043

^[2],[12]

Aug. 2013

^[3],[12]

Class C Term Note [Member]

^[12]

15,850

^[3],[12]

^[2],[12]

Dec. 31, 2043

^[3],[12]

^[12]

15,056

^[12]

^[2],[12]

Dec. 31, 2043

^[2],[12]

Aug. 2013

^[3],[12]

Class D Term Note [Member]

^[12]

15,056

^[3],[12]

^[2],[12]

Dec. 31, 2043

^[3],[12]

^[12]

11,638

^[12]

^[2],[12]

Dec. 31, 2043

^[2],[12]

Aug. 2013

^[3],[12]

Advance Receivable Backed Notes Series G [Member]

^[12]

11,638

^[3],[12]

^[2],[13]

Dec. 31, 2014

^[3],[13]

^[13]

130,492

^[13]

^[2],[13]

Dec. 31, 2014

^[2],[13]

July 2013

^[3],[13]

Total Variable Rate [Member]

^[13]

130,492

^[3],[13]

^[3]

1,160,809

884,468

524,908

^[3]

1,160,809

Match Funded Liabilties [Member]

884,468

524,908

^[3]

1,160,809

^[3]

1,160,809

Weighted average interest rate

^[3]

1,160,809

2,532,745

2,558,951

^[3]

$ 1,160,809

$ 2,532,745

$ 2,558,951

3.52%

3.50%

[1]	Advance facility assumed in the Homeward Acquisition. The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1,700,000 bridge facility which has an amortization date of August 14, 2013.
[2]	The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In two advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed.
[3]	Unused borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility.
[4]	This note was issued in connection with the financing of advances acquired in connection with the acquisition of Litton on September 1, 2011. In December 2012, the remaining balance was repaid and the facility was terminated following the sale of the advance collateral to HLSS.
[5]	On July 19, 2012, the borrowing under this note was transferred to the Series 2009-1 variable funding note.
[6]	The amortization period for this note ended in January 2012, at which time the remaining balance of $40,000 was repaid. The advances pledged to this note were transferred to the Series 2009-1 variable funding note and were re-pledged under that note.
[7]	The facility was terminated on September 28, 2012.
[8]	Effective March 12, 2012, the lender transferred this note from its commercial paper conduit and began charging interest based on 1-Month LIBOR. On September 28, 2012, the remaining balance was repaid, and the facility was terminated.
[9]	These notes were issued to finance the advances acquired in connection with the 2012 Saxon MSR Transaction.
[10]	These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs.
[11]	This note was issued to finance advances on the small balance commercial loan servicing portfolio that we acquired as part of the Litton Acquisition.
[12]	These notes were issued in connection with the financing of advances acquired as part of the HomEq Acquisition. The Class D Term Note was repaid in full on March 2, 2012. On March 5, 2012, HLSS assumed the remaining balances.
[13]	On September 13, 2012, the remaining balance was repaid, the facility was terminated and the remaining collateral was transferred to another facility.

Note 14 LINES OF CREDIT AND OTHER BORROWINGS (Detail) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2011

Dec. 31, 2012

Jan. 31, 2012

Dec. 31, 2011

Minimum [Member] | Participation Agreement [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 50,000,000

Maximum [Member] | Participation Agreement [Member]

Line of Credit Facility, Maximum Borrowing Capacity

90,000,000

Senior Secured Term Loan [Member] | Litton Acquisition [Member]

Proceeds from Secured Lines of Credit

$ 575,000,000

Senior Secured Term Loan [Member]

Debt Instrument, Periodic Payment, Principal

16,875,000

Litton Acquisition [Member]

Debt Instrument, Unamortized Discount

$ 11,500,000

Proceeds from Secured Lines of Credit

100,000,000

Debt Instrument, Unamortized Discount

1,000,000

$ 1,000,000

Line of Credit Facility, Maximum Borrowing Capacity

$ 1,700,000

Participation Agreement [Member]

Line of Credit Facility, Collateral

100%

Securities Sold Under Agreement To Repurchase [Member]

Debt Instrument, Face Amount

26,180,000

$ 26,180,000

Debt Instrument, Unamortized Discount

^[1]

$ (8,232,000)

$ (10,491,000)

Mandatory Principal Repayment, As Percentage of Net Cash Proceeds from Asset Sale

25.00%

[1]

On September 1, 2011, we entered into a new SSTL facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition. This initial loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan. Subsequently, in order to fund a portion of the Homeward Acquisition, we entered into a Joinder Agreement with the lender in December 2012 that allowed us to borrow an additional $100,000, net of an original issue discount of $1,000, under this facility on essentially the same terms and conditions as the initial borrowing. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $16,875 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016. In addition, Ocwen is required to use 25% of the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal. Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold. The borrowings are secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. In February 2013, we repaid this loan in full.

Note 14 LINES OF CREDIT AND OTHER BORROWINGS (Detail) - (Table 1) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

January 2013 [Member] | Lending [Member] | Master Repurchase Agreement [Member]

^[1]

Loans held for sale (LHFS)

^[1]

1ML + 175 bps

^[1]

Dec. 31, 2013

^[1]

$ 36,878

February 2013 [Member] | Lending [Member] | Master Repurchase Agreement [Member]

^[1]

88,122

^[1]

$ 88,122

^[2]

LHFS

^[2]

1ML + 200 bps

^[2]

Dec. 31, 2013

^[2]

$ 116,005

July 2013 [Member] | Lending [Member] | Master Repurchase Agreement [Member]

^[2]

133,995

^[2]

$ 133,995

LHFS

1ML + 200 bps

Dec. 31, 2013

$ 192,980

107,020

$ 107,020

HLSS [Member] | Servicing [Member] | Mortgage Servicing Rights [Member]

^[3]

MSRs (3)

^[3]

(3)(3)

^[3]

^[3]

303,705

^[3]

$ 303,705

^[4]

MSRs (4)

^[4]

(4)(4)

^[4]

Servicing [Member] | Senior Secured Term Loan [Member]

^[4]

2,603

^[4]

$ 2,603

^[5]

(1)

^[5]

1ML + 550 bps with a LIBOR floor of 150 bps (1)

^[5]

Dec. 31, 2016

^[5]

Servicing [Member] | Senior Unsecured Term Loan [Member]

^[5]

314,229

546,250

^[5]

$ 314,229

546,250

^[6]

1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps

^[6]

Mar. 31, 2017

^[6]

Servicing [Member] | Promissory Note [Member]

^[6]

75,000

^[6]

$ 75,000

^[7]

MSRs

^[7]

1ML + 350 bps

^[7]

May 31, 2017

^[7]

^[7]

18,466

^[7]

18,466

Servicing [Member]

Lending [Member] | Participation Agreement [Member]

714,003

546,250

$ 714,003

546,250

^[8]

LHFS

^[8]

N/A

^[8]

Dec. 31, 2013

^[8]

^[8]

58,938

^[8]

58,938

Lending [Member]

345,863

Corporate Items and Other [Member] | Securities Sold Under Agreement To Repurchase [Member]

388,075

$ 388,075

Securities sold under an agreement to repurchase (9)

^[9]

Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes

Securities sold under an agreement to repurchase (9)

^[9]

Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps

Securities sold under an agreement to repurchase (9)

^[9]

Monthly

Securities sold under an agreement to repurchase (9)

^[9]

Securities sold under an agreement to repurchase (9)

^[9]

2,833

4,610

Corporate Items and Other [Member] | Total Servicing Lines Of Credit [Member]

345,863

Weighted average interest rate (10)

1,104,911

550,860

1,104,911

550,860

Discount (1)

^[5]

Discount (1)

^[5]

(8,232)

(10,491)

345,863

$ 1,096,679

$ 540,369

^[10]

4.49%

6.96%

[1]	On January 16, 2013, we extended the Master Repurchase Agreement maturity date to March 19, 2013.
[2]	On January 25, 2013, we extended the Master Repurchase Agreement maturity date to May 3, 2013.
[3]	As part of the HLSS Transactions completed in 2012, Ocwen transferred to HLSS certain Rights to MSRs. However, because Ocwen has not yet transferred legal title to the MSRs, the sales were accounted for as a financing with the proceeds from the sale of the MSRs recorded as a financing liability. The financing liability is being amortized using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. The liability has no contractual maturity but will be amortized over the estimated life of the pledged MSRs. The balance of the liability is reduced each month based on the change in the estimated fair value of the pledged MSRs. See Note 3 for additional information regarding the HLSS Transactions.
[4]	We sold MSRs for certain loans to an unrelated third party in December 2012; however, we are required to repurchase the MSRs for any loans that cannot be refinanced by the purchaser under the federal government's Home Affordable Refinance Program (HARP). As a result, the sale is being accounted for as a financing. The financing liability is being amortized using the interest method with the servicing income that is remitted to the purchaser representing payments of principal and interest.
[5]	On September 1, 2011, we entered into a new SSTL facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition. This initial loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan. Subsequently, in order to fund a portion of the Homeward Acquisition, we entered into a Joinder Agreement with the lender in December 2012 that allowed us to borrow an additional $100,000, net of an original issue discount of $1,000, under this facility on essentially the same terms and conditions as the initial borrowing. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $16,875 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016. In addition, Ocwen is required to use 25% of the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal. Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold. The borrowings are secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. In February 2013, we repaid this loan in full.
[6]	Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note 27 for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013.
[7]	This note was issued to finance the acquisition of MSRs from BANA. Prepayments of the balance on this note may be required if the borrowing base, as defined, falls below the amount of the note outstanding.
[8]	Under this participation agreement, the lender provides financing on an uncommitted basis for $50,000 to $90,000 at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. However, the transaction does not qualify for sales accounting treatment as is, therefore, accounted for as a financing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. In February 2013, we extended the participation agreement maturity date to April 30, 2013.
[9]	In August 2010, we obtained financing under a repurchase agreement for the Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $26,180 at December 31, 2012. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral.
[10]	Excludes the two financing liabilities arising for the sales of Rights to MSRs and MSRs that were accounted for as a financing and the financing liability arising from the sale of mortgage loan participations accounted for as a financing.

Note 15 DEBT SECURITIES (Detail) - (Table 1) - USD ($) $ in Thousands	Mar. 28, 2012	Dec. 31, 2011
Contingent Convertible Senior Unsecured Notes [Member]
Debt Securities	$ 56,435	$ 56,435
Capital Securities [Member]
Debt Securities		26,119
Debt Securities		$ 82,554

Note 16 OTHER LIABILITIES (Detail) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Securities Loaned or Sold under Agreements to Repurchase [Member] | Homeward Acquisition [Member]

Business Acquisition, Purchase Price Allocation, Other Liabilities

$ 38,093

Business Acquisition, Purchase Price Allocation, Liabilities Assumed

63,406

Business Acquisition, Purchase Price Allocation, Other Liabilities

^[1]

(80,112,000)

Other Liabilities, Current

107,291

Servicing Liability at Amortized Value, Additions

1,441,000

Servicing Liability at Amortized Value, Period Increase (Decrease)

$ 1,274

$ 2,725,000

$ 172,000

[1]	Initial fair value estimate

Aggregate carrying amount of current liabilities (due within one year or within the normal operating cycle if longer) not separately disclosed in the balance sheet. Includes costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed.

Due to related parties (2)

Note 16 OTHER LIABILITIES (Detail) - (Table 1) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Accrued expenses (1)

^[1]

$ 106,376

$ 47,198

^[2]

45,034

4,274

Checks held for escheat

33,225

22,481

Liability for selected tax items (3)

^[3]

22,702

4,524

Payable to servicing and subservicing investors (5)

^[3]

18,658

20,276

^[4]

9,973

28,824

Servicing liabilities (6)

^[5]

9,830

9,662

Accrued interest payable

5,410

4,140

Secured borrowings – owed to securitization investors (7)

^[6]

53,323

26,456

^[7]

8,137

$ 277,664

$ 202,839

[1]	Includes $63,406 of accrued expenses attributable to Homeward, including $38,093 of accruals related to loan repurchase obligations and reserves for indemnification for servicing errors and for compensatory fees for foreclosures that exceed investor timelines.
[2]	See Note 27 for additional information regarding transactions with Altisource and HLSS.
[3]	See Note 22 for information on the liability for selected tax items.
[4]	See Note 19 for additional information regarding derivatives.
[5]	The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.
[6]	Secured borrowings - owed to securitization investors consisted of certificates representing beneficial ownership interests in four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans.
[7]	Our acquisition of MSRs during the second quarter of 2012 included a servicing liability with a fair value of $1,441. During, 2012, 2011 and 2010, amortization of servicing liabilities exceeded the amount of charges we recognized to increase servicing liability obligations by $1,274, $2,725 and $172, respectively. Amortization of mortgage servicing rights is reported net of this amount in the Consolidated Statement of Operations.

Note 17 MEZZANINE EQUITY (Detail) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012	Dec. 26, 2012	Dec. 31, 2011
Series A Preferred Stock [Member]
Preferred Stock, Shares Issued (in Shares)	162,000	162,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Issued (in Shares)	162,000	162,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Dividend Rate, Percentage	3.75%
Debt Instrument, Convertible, Conversion Price (in Dollars per share)			$ 31.79
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01	$ 0.01	$ 33.495	$ 0.01
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)			5,095,942
Preferred Stock, Discount on Shares			$ 8,688
Preferred Stock, Accretion of Redemption Discount	$ 60	$ 8,688
Dividends Payable, Current	$ 85	$ 85

Note 17 MEZZANINE EQUITY (Detail) - (Table 1) $ in Thousands	Dec. 31, 2012 USD ($)
Preferred Stock	$ 162,000
Discount for beneficial conversion feature	(8,688)
Accretion of discount	60
Preferred Stock	$ 153,372

Amount of a favorable spread to a debt holder between the amount of debt being converted and the value of the securities received upon conversion. This is an embedded conversion feature of convertible debt issued that is in-the-money at the commitment date.

Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity.

Note 18 EQUITY (Detail) - USD ($)	1 Months Ended		12 Months Ended	152 Months Ended
Note 18 EQUITY (Detail) - USD ($)	Mar. 31, 2012	Nov. 30, 2011	Dec. 31, 2012	Dec. 31, 2012	Nov. 09, 2011	May 09, 2000
Sale of Stock, Description of Transaction				Common Stock On May 9, 2000, we announced that our Board of Directors authorized the repurchase of up to 6,000,000 of our issued and outstanding shares of common stock. To date, we have repurchased 431,100 shares under this plan (all in 2004). We may still purchase a total of 5,568,900 shares under this plan. On November 9, 2011, OCN completed the public offering of 28,750,000 shares of common stock at a per share price of $13.00, including 3,750,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $354,445 from the offering after deducting underwriting fees and other incremental costs directly related to the offering. On March 28, 2012, we converted $56,410 of the outstanding principal balance of the Convertible Notes to 4,635,159 shares of common stock. See Note15 for additional information regarding the conversion.
Stock Repurchase Program, Number of Shares Authorized to be Repurchased						6,000,000
Stock Repurchased During Period, Shares				431,100
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased			5,568,900	5,568,900
Stock Issued During Period, Shares, New Issues		28,750,000
Sale of Stock, Price Per Share (in Dollars per share)					$ 13.00
Stock Issued During Period, Shares, Other		3,750,000
Stock Issued During Period, Value, Issued for Cash (in Dollars)		$ 354,445
Debt Conversion, Converted Instrument, Amount (in Dollars)	$ 56,410
Debt Conversion, Converted Instrument, Shares Issued	4,635,159		4,635,159

Note 18 EQUITY (Detail) - (Table 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Unrealized losses on cash flow hedges	$ 6,310	$ 7,760
Other	131	136
	$ 6,441	$ 7,896

Accumulated change, net of tax, in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Includes an entity's share of an equity investee's Increase or Decrease in deferred hedging gains or losses.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Hedge the effects of a change in 1ML on borrowing under an advance funding facility [Member] | Interest Rate Swaps [Member]

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS (Detail) - USD ($)		3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 05, 2012	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Foreign Currency Transactions, Description					Currency Exchange Rate Risk Management We periodically enter into foreign exchange forward contracts to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL. Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant.
Description of Derivative Risk Management Policy					Rate Management Match Funded Liabilities We entered into interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. These interest rate swap agreements require us to pay a fixed rate and receive a variable interest rate based on one-month LIBOR. At the time that we entered into the agreements, these swaps were designated as hedges for accounting purposes. We also purchased interest rate caps to minimize future interest rate exposure from increases in one-month LIBOR interest rates, as required by the certain of our advance financing arrangements. Loans Held for Sale, at Fair Value The mortgage loans held for sale which we carry at fair value are subject to interest rate and price risk from the loan funding date until the date the loan is sold into the secondary market. Generally, the fair value of a loan will decline in value when interest rates increase and will rise in value when interest rates decrease. To mitigate this risk, we enter into forward trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. IRLCs represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant, whereby the interest rate is set prior to funding. The loan commitment binds us (subject to the loan approval process) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The borrower is not obligated to obtain the loan, thus we are subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs. Our interest rate exposure on these derivative loan commitments is hedged with freestanding derivatives such as forward contracts. We enter into forward contracts with respect to fixed rate loan commitments. MSRs, at Fair Value The MSRs which we measure at fair value are subject to substantial interest rate risk as the mortgage notes underlying the MSRs permit the borrowers to prepay the loans. Therefore, the value of these MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). Although the level of interest rates is a key driver of prepayment activity, there are other factors that influence prepayments, including home prices, underwriting standards and product characteristics. The amount and composition of derivatives used, if any, will depend on the exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates. We enter into economic hedges including interest rate swaps, U.S. Treasury futures and forward contracts to minimize the effects of loss in value of these MSRs associated with increased prepayment activity that generally results from declining interest rates. These interest rate swap agreements generally require us to pay a variable interest rate based on LIBOR and receive a fixed rate. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specific price, with delivery or settlement at a specified date. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of financial instruments at a specified price, with delivery and settlement at a specified date. The following summarizes our use of derivatives at December 31, 2012 and the gains (losses) on those derivatives for the year then ended.
Loss on Cash Flow Hedge Ineffectiveness					$ 6,179,000
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net		$ 2,317,000
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)	$ 5,958,000
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net					3,748
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax					9,878	$ 12,114
Other Comprehensive Income (Loss), Tax					3,568	4,354
Derivative Forward Exchange Gain			$ 3,359,000
Unrealized Gain (Loss) on Derivatives					1,514,000
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net						1,368,000
Gains (Losses) on Extinguishment of Debt				$ 2,317,000	$ 2,167,000	$ (3,651,000)	$ (152,000)

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS (Detail) - (Table 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
IRLC [Member] \| Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	$ 1,112,519
IRLC [Member]
Fair value of derivative assets (liabilities) at:
Balance as of	$ 5,781
Maturity	Dec. 31, 2013
Derivative Balance	$ 1,112,519
U.S. Treasury Futures [Member] \| Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	109,000
U.S. Treasury Futures [Member]
Fair value of derivative assets (liabilities) at:
Balance as of	$ (1,258)
Maturity	Dec. 31, 2013
Derivative Balance	$ 109,000
Forward Mortgage-Backed Securities Trades [Member] \| Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	1,638,979
Forward Mortgage-Backed Securities Trades [Member]
Fair value of derivative assets (liabilities) at:
Balance as of	$ (1,719)
Maturity	Dec. 31, 2013
Derivative Balance	$ 1,638,979
Interest Rate Cap [Member] \| Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	1,025,000
Interest Rate Cap [Member]
Derivative Balance	1,600,000
Fair value of derivative assets (liabilities) at:
Balance as of	$ 168	$ 3,600
Maturity	May 31, 2016
Additions (Subtractions) to Derivative Assets	$ (1,600,000)
Derivative Balance	1,025,000
Foreign Exchange Future [Member]
Derivative Balance	$ 46,200
Fair value of derivative assets (liabilities) at:
Balance as of		(5,785)
Maturity	Dec. 31, 2008
Additions (Subtractions) to Derivative Assets	$ (46,200)
Interest Rate Swap [Member] \| Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	432,500
Interest Rate Swap [Member]
Derivative Balance	1,393,685
Fair value of derivative assets (liabilities) at:
Balance as of	$ (10,836)	$ (14,491)
Maturity	Dec. 31, 2032
Maturities	$ (330,230)
Derivative Balance	1,495,955
Homeward Acquisition [Member]
Fair value of derivative assets (liabilities) at:
Additions (Subtractions) to Derivative Assets	$ 4,946

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS (Detail) - (Table 2)
$ in Thousands

12 Months Ended

Dec. 31, 2012

USD ($)

2013

^[1]

$ 250,000

^[1]

(2,699)

^[1],[2]

$ 3,605

^[1]

Hedge the effects of a change in the lender’s CP rate and 1ML on borrowing under an advance funding facility [Member] | Interest Rate Swaps [Member]

Other, net

^[1]

2013

^[3]

$ 321,659

^[3]

(2,958)

^[2],[3]

$ 3,352

^[3]

Total Derivative Designated As Hedge [Member] | Interest Rate Swaps [Member]

Other, net / AOCL

^[3]

$ 491,796

491,796

(9,957)

^[2]

Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities [Member] | Interest Rate Swaps [Member]

(8,105)

$ 201,892

^[4]

2015

^[4]

$ 201,892

^[4]

(7,746)

^[2],[4]

$ (6,246)

^[4]

OtherHedgesTheEffectsOfChangesInLendersRateOnAdvanceFundingFacilitiesMember | Interest Rate Swaps [Member]

AOCL

^[4]

$ 289,904

^[5]

2015

^[5]

$ 289,904

^[5]

(2,211)

^[2],[5]

$ (1,859)

^[5]

Hedge The Effects Of Changes In Advance Funding Facilities [Member] | Interest Rate Caps [Member]

AOCL

^[5]

2014

^[6]

^[6]

^[2],[6]

$ (3,195)

^[6]

Other Hedges The Effects Of Changes In Advance Funding Facilities [Member] | Interest Rate Caps [Member]

Other, net

^[6]

2015-2016

^[7]

$ 1,025,000

^[7]

168

^[2],[7]

^[7]

Other, net

^[7]

Debt [Member]

$ 2,088,455

(15,446)

^[2]

(4,343)

Interest rate swaps (pay variable, receive fixed) [Member] | Mortgage Servicing Rights [Member]

$ 2,088,455

2014-2032

^[7]

$ 432,500

^[7]

4,778

^[2],[7]

^[7]

U.S. Treasury Futures [Member] | Mortgage Servicing Rights [Member]

Other, net

^[7]

2013

^[7]

$ 109,000

^[7]

(1,258)

^[2],[7]

^[7]

Forward MBS Trades [Member] | Mortgage Servicing Rights [Member]

Other, net

^[7]

2013

^[7]

$ 314,000

^[7]

^[2],[7]

^[7]

Forward MBS Trades [Member] | Mortgage Loans Held for Sale and IRLC's [Member]

Other, net

^[7]

2013

^[7]

$ 1,324,979

^[7]

(1,786)

^[2],[7]

$ (1,226)

^[7]

Other, net

^[7]

IRLC [Member]

2013

$ 1,112,519

5,781

^[2]

$ 153

Interest Rate Swaps [Member]

Loss on loans held for sale, net

$ 571,659

(5,657)

^[2]

6,957

1,063,455

(15,614)

^[2]

(1,148)

Interest Rate Caps [Member]

1,063,455

1,025,000

168

^[2]

Mortgage Servicing Rights [Member]

(3,195)

855,500

3,587

^[2]

5,381,453

(7,864)

^[2]

(5,416)

Gains (losses) on non-hedging derivatives (1)(2)

$ 5,381,453

[1]	We discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization was scheduled to continue until the related advance facility matures in July 2013. In September 2012, we repaid the advance facility and wrote-off the remaining $2,317 of unamortized deferred losses in AOCL.
[2]	Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.
[3]	The hedging relationship was terminated when the advance facility was assumed on March 5, 2012 by HLSS. At that time, we wrote-off the $5,958 of deferred losses in AOCL. See Note 3 and Note 13 for additional information regarding the match funded liabilities assumed by HLSS.
[4]	Monthly settlements on this forward-starting swap begin June 2013.
[5]	Projected net settlements on the swap for the next twelve months total approximately $3,748 of payments to the counterparties.
[6]	Sold in November 2012.
[7]	Acquired in connection with the Homeward Acquisition.

Note 19 DERIVATIVE FINANCIAL INSTRUMENTS (Detail) - (Table 3) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

^[1],[2]

$ 6,256

$ 17

Ineffectiveness of cash flow hedges

(150)

Write-off of losses in AOCL for a discontinued hedge relationship (3)

^[3]

(4,633)

Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note 3)

(5,958)

$ (4,294)

$ (133)

[1]	Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011.
[2]	Includes a gain of $3,359 during 2012 from the termination of foreign exchange forward contracts. Also includes a loss of $1,514 on the sale of the interest rate cap in 2012.
[3]	Includes the write off in 2012 of the remaining $2,317 of unamortized losses when the borrowing under the related advance financing facility was repaid in full, and the facility was terminated.

Note 20 INTEREST INCOME (Detail) - (Table 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash And Short-Term Investments [Member]
Interest Income	$ 963	$ 756	$ 1,190
Interest Income	8,329	8,876	10,859
Loans held for sale	2,946	2,291	3,398
Loans, net - restricted for securitization investors	$ 4,420	$ 5,829	$ 6,271

Note 21 INTEREST EXPENSE (Detail)	12 Months Ended
Note 21 INTEREST EXPENSE (Detail)	Dec. 31, 2012 USD ($)
Financing Interest Expense	$ 54,710

Note 21 INTEREST EXPENSE (Detail) - (Table 1) - USD ($)
$ in Thousands

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Match Funded Liabilties [Member]

Lines Of Credit And Other Secured Borrowings [Member]

$ 122,292

$ 93,051

$ 61,656

Debt Securities Convertible Notes [Member]

^[1]

96,220

32,985

17,553

Capital Securities [Member]

153

1,834

Secured Borrowings Owed To Securitization Investors [Member]

1,894

2,840

2,954

616

670

632

Escrowdeposits [Member]

2,280

1,390

1,294

$ 223,455

$ 132,770

$ 85,923

[1]	Includes interest expense of $54,710 in 2012 on the financing liability arising from the sales of Rights to MSRs to HLSS that were accounted for as financings. See Note 3 and Note 14 for additional information regarding these sales and the financing liability.

Note 22 INCOME TAXES (Detail) - USD ($) $ in Thousands	12 Months Ended
Note 22 INCOME TAXES (Detail) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Ocwen [Member]
Deferred Tax Assets, Capital Loss Carryforwards	$ (1,725)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	35.00%
Income Tax Examination, Penalties and Interest Expense	$ (75)	$ 1,257	$ 182
Income Tax Examination, Penalties and Interest Accrued	1,561	1,636
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	21,140	$ 4,524
Operating Loss Carryforwards	45,909
Deferred Tax Assets, Capital Loss Carryforwards	$ 665

Note 22 INCOME TAXES (Detail) - (Table 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Domestic	$ 176,075	$ 118,708	$ 33,394
Foreign	81,433	4,287	5,760
	$ 257,508	$ 122,995	$ 39,154

Note 22 INCOME TAXES (Detail) - (Table 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ 10,621	$ 13,894	$ 8,836
State	(759)	(195)	1,049
Foreign	2,968	1,079	2,033
	12,830	14,778	11,918
Deferred:
Federal	62,704	29,440	(6,953)
State	(431)	368	(145)
Foreign	1,482	86	725
	63,755	29,894	(6,373)
Total	$ 76,585	$ 44,672	$ 5,545

Note 22 INCOME TAXES (Detail) - (Table 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Altisource [Member]
Differences between expected and actual income tax expense:
Tax Effects on Select Activities			$ 749
Provision for (Reversal of) Tax Liability on Select Items [Member]
Differences between expected and actual income tax expense:
Tax Effects on Select Activities	$ 5,558	$ 1,611	(9,126)
Expected income tax expense at statutory rate	90,127	43,049	13,704
State tax, after Federal tax benefit	(1,184)	254	610
Permanent differences	15	61	878
Foreign tax differential	(17,816)	(716)	(197)
Provision-to-return and other			(580)
Other	(115)	413	(493)
Actual income tax expense	$ 76,585	$ 44,672	$ 5,545

Note 22 INCOME TAXES (Detail) - (Table 4) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Mortgage Servicing Rights [Member]
Deferred tax assets:
Mortgage Servicing Rights Amortization		$ 32,654
Mortgage Servicing Rights Amortization	$ 56,265
Deferred income or loss on servicing advance receivables		7,030
Other	1,190	160
	57,455	7,190
Net deferred tax assets	92,136	107,968
Net operating loss carryforward	16,068	18,078
Net unrealized gains and losses on securities	2,702	11,828
Partnership losses	11,036	9,960
Bad debt and allowance for loan losses	6,551	8,020
Accrued other liabilities	2,925	5,122
Interest rate swaps	3,813	4,371
Tax residuals and deferred income on tax residuals	4,175	3,941
Stock-based compensation expense	3,127	2,874
Accrued incentive compensation	6,210	2,755
Foreign deferred assets	1,805	2,512
Accrued lease termination costs	1,887	1,910
Intangible asset amortization	2,070	1,641
Valuation allowance on real estate	386	884
Deferred income or loss on servicing advance receivables	78,832
Capital losses	665
Other	7,339	8,608
	$ 149,591	$ 115,158

Note 22 INCOME TAXES (Detail) - (Table 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Lapses in Statutes of Limitations [Member]
Unrecognized Tax Benefit Reductions	$ (93)
Balance at January 1	4,524	$ 2,913
Balance at December 31	22,702	4,524
Additions based on tax positions related to current year	17,396
Additions for tax positions of prior years	$ 875	1,817
Unrecognized Tax Benefit Reductions		$ (206)

Note 23 DISCONTINUED OPERATIONS (Detail) - USD ($) $ in Thousands		36 Months Ended
	Dec. 03, 2009	Dec. 31, 2012
Disposal Group, Including Discontinued Operation, Other Assets	$ 11,443
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, before Income Tax	$ 4,034
Discontinued Operation, Tax Effect of Adjustment to Prior Period Gain (Loss) on Disposal		$ 4,383

Tax effect of adjustment to an amount previously reported in discontinued operations that is directly related to the disposal of the component in a prior period. Examples of circumstances leading to such adjustments include the resolution of contingencies relating to the terms of the disposal transaction or relating to the operations of the component prior to its disposal, and the settlement of certain employee benefit plan obligations.

Stock options excluded from the computation of diluted EPS:

Note 24 BASIC AND DILUTED EARNINGS PER SHARE (Detail) - USD ($)	1 Months Ended		2 Months Ended	12 Months Ended
	Mar. 31, 2012	Aug. 31, 1997	Aug. 31, 2012	Dec. 31, 2012
Debt Conversion, Converted Instrument, Shares Issued	4,635,159			4,635,159
Debt Conversion, Original Debt, Amount (in Dollars)		$ 125,000,000	$ 26,119,000	$ 56,410

Note 24 BASIC AND DILUTED EARNINGS PER SHARE (Detail) - Table 1 - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Market Based [Member]

Anti-dilutive Securities (in Shares)

^[1]

1,535,000

468,750

1,615,000

Preferred Stock [Member]

Debt Securities Convertible Notes [Member]

^[2]

Employee Stock Option [Member]

^[3]

1,008,891

4,637,224

Common Stock Awards [Member]

3,593,419

2,711,682

2,571,282

Net income attributable to Ocwen common stockholders

6,326

1,388

180,778

78,331

37,984

Preferred stock dividends (1)

^[2]

Interest expense on Convertible Notes, net of income tax (2)

^[3]

107

1,187

1,122

Adjusted net income attributable to Ocwen

$ 181,885

$ 79,518

$ 39,106

Weighted average shares of common stock (in Shares)

133,912,643

104,507,055

100,273,121

Dilutive weighted average shares of common stock (in Shares)

138,521,279

111,855,961

107,483,015

Diluted EPS (in Dollars per share)

$ 1.31

$ 0.71

$ 0.36

Stock options excluded from the computation of diluted EPS:

Anti-dilutive Securities (in Shares)

^[4]

143,125

27,031

20,000

Basic EPS (in Dollars per share)

$ 1.35

$ 0.75

$ 0.38

[1]	Shares that are issuable upon the achievement of certain performance criteria related to OCN's stock price and an annualized rate of return to investors. See Note 25 for additional information regarding these market-condition options.
[2]	The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. We assumed no conversion to common shares for 2012 because the effect was anti-dilutive.
[3]	Prior to the redemption of the Convertible Notes in March 2012, we also computed their effect on diluted EPS using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, were added back to net income. As disclosed in Note 15, we issued 4,635,159 shares of common stock upon conversion of $56,410 of the Convertible Notes.
[4]	These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock.

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Detail) - USD ($)

12 Months Ended

36 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2012

Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)

2,000,000

Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)

$ 24.38

Annual Incentive Plan 1998 [Member]

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Incentive Plan

Type of Award	Percent of Options Awarded	Vesting Period
Service Condition:
Time-Based	25%	Ratably over four years (¼ on each of the four anniversaries of the grant date)
Market Condition:
Performance-Based	50	Over three years beginning with ¼ vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Extraordinary Performance-Based	25	Over three years beginning with ¼ vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (¼ on the next three anniversaries of the achievement of the market condition)
Total award	100%

Stock option activity for the years ended December 31:

	2012					2011					2010
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Outstanding at beginning of year		7,894,728		$	5.48		8,084,953		$	5.03		9,278,581		$	4.97
Granted (1)		2,160,000			23.92		545,000			12.83		—			—
Exercised (2)(3)		(1,116,549	)		3.56		(735,225	)		6.01		(774,345	)		4.19
Forfeited		—			—		—			—		(419,283	)		5.21
Outstanding at end of year(4)(5)		8,938,179			9.93		7,894,728			5.48		8,084,953			5.03
Exercisable at end of year (4)(5)(6)		5,569,432			5.04		4,947,228			4.91		4,122,453			5.13

(1)	Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee’s approval. See Note 27 for additional information regarding Mr. Erbey’s stock and stock option holdings.
(2)	The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively.
(3)	In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options.
(4)	Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable.
(5)	At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively.
(6)	The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively.

Description of Defined Contribution Pension and Other Postretirement Plans

Plan We maintain a defined contribution 401(k) plan. We match 50% of each employee's contributions, limited to 2% of the employee's compensation. Our contributions to the 401(k) plan were $399, $238 and $233 for the years ended December 31, 2012, 2011 and 2010, respectively.

Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent

50.00%

Defined Contribution Plan, Employer Matching Contribution, Percent

2.00%

Defined Contribution Plan, Employer Discretionary Contribution Amount

$ 399

$ 238

$ 233

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Compensation

$ 7,192

$ 9,472

$ 6,031

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)

8,895,599

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

5 years

Share Based Award Contractual Term At Issuance

ten

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)

^[1]

2,160,000

545,000

Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)

^[1]

$ 23.92

$ 12.83

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value

$ 23,864

$ 4,114

$ 4,265

Shares Delivered As Payment For Exercise of Options (in Shares)

21,750

Option Exercises Net of Tax Withholding (in Shares)

752,595

Number of Market-based Options Not Meeting Performance Criteria (in Shares)

1,535,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

$ 204,657

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

$ 164,591

Number of Market-based Options Outstanding (in Shares)

6,335,000

Number of Market-based Options Exercisable (in Shares)

2,727,810

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

4 years 73 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term

5 years 109 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value

$ 2,208

$ 1,342

$ 1,948

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options

$ 18,308

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition

2 years 248 days

[1]

Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee's approval. See Note 27 for additional information regarding Mr. Erbey's stock and stock option holdings.

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Detail) - (Table 1)	12 Months Ended
	Dec. 31, 2012
Service Condition Awards [Member]
Service Condition:
Percent of Options Awarded	25.00%
Vesting Period	Ratably over four years ( on each of the four anniversaries of the grant date)
Performance Shares [Member]
Service Condition:
Percent of Options Awarded	50.00%
Vesting Period	Over three years beginning with vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years ( on the next three anniversaries of the achievement of the market condition)
Extraordinary Performance-based Awards [Member]
Service Condition:
Percent of Options Awarded	25.00%
Vesting Period	Over three years beginning with vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years ( on the next three anniversaries of the achievement of the market condition)
Percent of Options Awarded	100.00%

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Detail) - (Table 2) - $ / shares

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Stock Options [Member]

^[1],[2]

8,938,179

7,894,728

8,084,953

Exercised (2)(3) (in Dollars per share)

^[1],[2]

$ 9.93

$ 5.48

$ 5.03

Exercised (2)(3)

^[3],[4]

(1,116,549)

(735,225)

(774,345)

^[3],[4]

$ 3.56

$ 6.01

$ 4.19

^[1],[2]

8,938,179

7,894,728

^[1],[2]

$ 9.93

$ 5.48

7,894,728

8,084,953

9,278,581

Exercisable at end of year (4)(5)(6)

$ 5.48

$ 5.03

$ 4.97

^[1],[2],[5]

5,569,432

4,947,228

4,122,453

Exercisable at end of year (4)(5)(6) (in Dollars per share)

^[1],[2],[5]

$ 5.04

$ 4.91

$ 5.13

Granted (1)

^[6]

2,160,000

545,000

Granted (1) (in Dollars per share)

^[6]

$ 23.92

$ 12.83

Forfeited

(419,283)

Forfeited (in Dollars per share)

$ 5.21

7,894,728

8,084,953

Expected stock price volatility (1)

$ 5.48

$ 5.03

[1]	At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively.
[2]	Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable.
[3]	In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options.
[4]	The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively.
[5]	The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively.
[6]	Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee's approval. See Note 27 for additional information regarding Mr. Erbey's stock and stock option holdings.

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Detail) - (Table 3)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Black-Scholes [Member]

Risk-free interest rate

1.20 - 1.60%

1.57%

^[1]

40% - 42%

41%

Expected option life (in years) (2)

^[2]

6.50

Fair value

$6.49 - $10.48

$5.51

Binomial [Member]

Risk-free interest rate

0.70% - 3.06%

0.35% - 2.74%

Expected stock price volatility (1)

^[1]

6.87% - 42%

30% - 41%

Expected option life (in years) (2)

^[2]

4.50 - 6.50

4.25 & 5.75

Contractual life (in years)

Fair value

$3.41 - $8.87

$4.66 & $4.09

[1]

We estimate volatility based on the historical volatility of OCN's common stock over the most recent period that corresponds with the estimated expected life of the option.

[2]

Note 25 EMPLOYEE COMPENSATION AND BENEFIT PLANS (Detail) - (Table 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock Options [Member]
Equity-based compensation expense:
Awards	$ 2,776	$ 926	$ 1,088
Stock Distribution [Member]
Equity-based compensation expense:
Awards	158
Excess tax benefit related to share-based awards	$ 11,031	$ 2,142	$ 3,157

Note 26 BUSINESS SEGMENT REPORTING (Detail) - USD ($)	3 Months Ended			12 Months Ended
Note 26 BUSINESS SEGMENT REPORTING (Detail) - USD ($)	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Nonrecurring Expense	$ 31,122,000	$ 18,746,000	$ 472,000	$ 1,270	$ 50,340,000	$ 52,603,000
Gain (Loss) on Sale of Other Investments						6,036,000
Trading Securities, Realized Gain (Loss)						$ 7,909,000

Note 26 BUSINESS SEGMENT REPORTING (Detail) - (Table 1) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Servicing [Member]

^[1],[2]

$ 840,648

$ 494,871

$ 359,798

^[1],[3]

344,333

231,238

200,108

496,315

263,633

159,690

110

207

(221,948)

(132,574)

(80,514)

^[1],[2]

(13)

4,711

(1,188)

^[4],[5]

Income (loss) from continuing operations before income taxes

(221,952)

(127,753)

(81,495)

274,363

135,880

78,195

Corporate Itemsand Other [Member]

4,461,755

4,301,371

2,495,966

^[1],[2]

141

^[1],[3]

409

(268)

309

(514)

^[1],[2]

214

^[4],[5]

Income (loss) from continuing operations before income taxes

(259)

Intersegment Elimination [Member]

551,733

^[1],[2]

5,122

2,348

2,112

^[1],[3]

19,667

8,971

37,130

(14,545)

(6,623)

(35,018)

8,011

8,766

10,652

(993)

(196)

(5,409)

^[1],[2]

(9,069)

(14,832)

(9,266)

^[4],[5]

Income (loss) from continuing operations before income taxes

(2,051)

(6,262)

(4,023)

(16,596)

(12,885)

(39,041)

Business Segments Consolidated [Member]

658,394

426,653

425,443

^[1],[2]

(905)

(1,289)

(1,529)

^[1],[3]

(484)

(625)

(764)

(421)

(664)

(765)

^[1],[2]

421

664

765

^[4],[5]

421

664

765

^[1],[2]

845,006

495,930

360,381

^[1],[3]

363,925

239,584

236,474

481,081

256,346

123,907

8,329

8,876

10,859

(223,455)

(132,770)

(85,923)

^[1],[2]

(8,447)

(9,457)

(9,689)

^[4],[5]

Income (loss) from continuing operations before income taxes

(223,573)

(133,351)

(84,753)

257,508

122,995

39,154

Ocwen [Member] | Chief Executive Officer [Member]

$ 5,671,882

$ 4,728,024

$ 2,921,409

[1]	Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered.
[2]	Servicing has a contractual right to receive interest income on float balances. However, Corporate controls investment decisions associated with the float balances. Accordingly, Servicing receives revenues generated by those investments that are associated with float balances but are reported in Corporate Items and Other. Gains and losses associated with corporate investment decisions are recognized in Corporate Items and Other.
[3]	Depreciation and amortization expense are as follows: Servicing Lending Corporate Items and Other Business Segments Consolidated For the year ended December 31, 2012: Depreciation expense $1,469 $8 $4,243 $5,720 Amortization of MSRs 72,897 - - 72,897 Amortization of debt discount 3,259 - - 3,259 Amortization of debt issuance costs - SSTL 3,718 - - 3,718 For the year ended December 31, 2011: Depreciation expense $2,410 $- $1,750 $4,160 Amortization of MSRs 42,996 - - 42,996 Amortization of debt discount 8,853 - - 8,853 Amortization of debt issuance costs - SSTL 9,764 - - 9,764 For the year ended December 31, 2010: Depreciation expense $5,916 $- $1,596 $7,512 Amortization of MSRs 31,455 - - 31,455 Amortization of debt discount 5,217 - 172 5,389 Amortization of debt issuance costs - SSTL 2,086 - - 2,086
[4]	Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects.
[5]	Other income (expense) for 2010 includes losses on auction rate securities of $7,909 recorded in Corporate Items and Other.

Note 26 BUSINESS SEGMENT REPORTING (Detail) - (Table 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Servicing [Member]
Depreciation expense	$ 1,469	$ 2,410	$ 5,916
Amortization of MSRs	72,897	42,996	31,455
Amortization of debt discount	3,259	8,853	5,217
Amortization of debt issuance costs – senior secured term loan	3,718	9,764	2,086
Lending [Member]
Depreciation expense	8
Corporate Itemsand Other [Member]
Depreciation expense	4,243	1,750	1,596
Amortization of debt discount			172
Depreciation expense	5,720	4,160	7,512
Amortization of MSRs	72,897	42,996	31,455
Amortization of debt discount	3,259	8,853	5,389
Amortization of debt issuance costs – senior secured term loan	$ 3,718	$ 9,764	$ 2,086

Note 27 RELATED PARTY TRANSACTIONS (Detail) - USD ($)

4 Months Ended

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

13.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

4,684,177

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)

2,384,177

Altisource [Member] | Chief Executive Officer [Member]

23.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

894,728

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)

844,728

Altisource [Member]

$ (75,000,000)

HLSS [Member] | Chief Executive Officer [Member]

2.00%

Correspondent One [Member] | Ocwen [Member]

Noncontrolling Interest, Ownership Percentage by Parent

49.00%

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures (in Dollars)

$ 13,432

Chief Executive Officer [Member]

Relationship with Executive Chairman of the Board of Directors Ocwen's Executive Chairman of the Board of Directors, William C. Erbey, also serves as Chairman of the Board for both Altisource and HLSS. As a result, he has obligations to Ocwen as well as to Altisource and HLSS. Mr. Erbey currently owns approximately 13% of the common stock of Ocwen, approximately 23% of the common stock of Altisource and approximately 2% of the common stock of HLSS. At December 31, 2012, Mr. Erbey also held 4,684,177 options to purchase OCN common stock, of which 2,384,177 were exercisable. He also held 894,728 options to purchase Altisource (ASPS) common stock, including 844,728 which were exercisable. Mr. Erbey has relocated to St. Croix, USVI to serve as Chairman and CEO of OMS. On August 21, 2012, the Ocwen Board of Directors approved Ocwen's purchase of Mr. Erbey's residence in Atlanta, Georgia, for his cost-basis in the home of $6,477. Ocwen also incurred approximately $24 of related transaction costs. The transaction is consistent with Ocwen's standard senior executive relocation policy and practice. We have classified our investment in this property as real estate held for sale, a component of Other assets. We account for the excess of cost over fair value (less costs to sell) as a valuation allowance and include changes in the valuation allowance in Loss on loans held for sale, net.

Real Estate, Other Acquisitions (in Dollars)

6,477,000

Payments to Acquire Other Real Estate (in Dollars)

$ 24,000

Altisource [Member]

Relationship with Altisource For purposes of governing certain of the ongoing relationships between Ocwen and Altisource after the Separation, and to provide for an orderly transition to the status of two independent companies, we entered into certain agreements with Altisource. Under the Transition Services Agreement, the companies provide to each other services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, law, strategic planning, compliance and other areas. The Transition Services Agreement was amended on August 10, 2011, in order to extend the initial twenty-four month term for an additional twelve months, and it expired on August 10, 2012. Under the Services Agreement, Altisource provides various business process outsourcing services, such as valuation services and property preservation and inspection services, among other things. Altisource also provides certain technology products and support services to Ocwen under the Technology Products Services Agreement and the Data Center and Disaster Recovery Services Agreement both of which had an initial term of eight years from the spin-off date. In addition, under the Data Access and Services Agreement entered into in the third quarter of 2011, Ocwen has agreed to make available to Altisource certain data from Ocwen's servicing portfolio in exchange for a per asset fee. On August 10, 2012, OMS entered into a Support Services Agreement with Altisource setting forth certain services OMS and Altisource will provide to each other which are similar to the services the parties provided to each other pursuant to the Transition Services Agreement. The Support Services Agreement has an initial term of five years. OMS also entered into a Services Agreement, a Technology Products Services Agreement and a Center and Disaster Recovery Services Agreement under which Altisource will provide services similar to those provided under the similarly titled agreements entered into in connection with the Separation. These agreements all have an initial term of eight years. Certain services provided by Altisource under these contracts are charged to the borrower and/or loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales. Our business is currently dependent on many of the services and products provided under these long-term contracts which are effective for up to eight years with renewal rights. We believe the rates charged under these agreements are market rates as they are materially consistent with one or more of the following: the fees charged by Altisource to other customers for comparable services and the rates Ocwen pays to or observes from other service providers. In addition to the revenues and expenses we recorded associated with the agreements discussed above, during 2010 and 2011 we sold certain equipment to Altisource that we had acquired from HomEq and Litton. As disclosed in Note2, these assets consisted primarily of computer hardware and software and furniture and fixtures and were sold for cash proceeds equal to the acquisition fair value, as adjusted. As a result, we recognized no gain or loss on these sales. Also, in 2010 we entered into an agreement to sublease from Altisource our principal executive office space in Atlanta, Georgia. As disclosed in Note1, Ocwen and Altisource each hold a 49% equity interest in Correspondent One, a company that facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2012, Ocwen had invested $13,432 in Correspondent One. On December 27, 2012, we entered into a senior unsecured term loan facility agreement (the Unsecured Loan Agreement) with Altisource and borrowed $75 million. The proceeds of this loan were used to fund a portion of the Homeward Acquisition. Borrowings under the Unsecured Loan Agreement bear interest at a rate equal to the one-month Eurodollar Rate (1-Month LIBOR) plus 675 basis points with a Eurodollar Rate floor of 150 basis points. The final maturity date for the Unsecured Loan Agreement is March 1, 2017, and it does not provide for any scheduled amortization. Borrowings under the Unsecured Loan Agreement must be repaid when the SSTL is paid in full. However, if the SSTL is not paid off before October 31, 2013, Altisource may require that we convert all or a portion of the outstanding principal and unpaid interest accrued on the Unsecured Loan into any of the following, at Altisource's discretion (i) an investment in or of Homeward, (ii) property or assets of Homeward, (iii) equity interests of Homeward, or (iv) if Altisource and Ocwen agree, any other assets of Ocwen or its subsidiaries. Any such conversion will be based upon mutually agreeable terms and conditions, including without limitation, conversion price, as reasonably negotiated in good faith between Ocwen and Altisource. Unless Altisource otherwise agrees in writing, the conversion must take place on or prior to November 15, 2013. The Unsecured Loan Agreement contains provisions equivalent to those found in the SSTL with respect to covenants and events of default.

HLSS [Member]

Relationship with HLSS As disclosed in Note3 , Ocwen and HLSS Management entered into an agreement to provide to each other certain professional services including valuation analysis of potential MSR acquisitions, treasury management services and other similar services, legal, licensing and regulatory compliance support services, risk management services and other similar services.

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

7,894,728

8,084,953

9,278,581

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)

^[1],[2],[3]

5,569,432

4,947,228

4,122,453

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures (in Dollars)

^[4]

$ 25,187,000

$ 23,507,000

$ (31,495,000)

$ (1,965,000)

[1]	At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively.
[2]	Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable.
[3]	The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively.
[4]	The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note 2.

Note 27 RELATED PARTY TRANSACTIONS (Detail) - (Table 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Altisource Employees [Member]
Revenues and Expenses:
Revenues	$ 16,532	$ 12,242	$ 13,520
Expenses	28,987	$ 23,226	$ 20,082
HLSS Employees [Member]
Revenues and Expenses:
Revenues	195
Expenses	$ 2,432

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

India Tax Authorities [Member]

Note 27 RELATED PARTY TRANSACTIONS (Detail) - (Table 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Altisource Employees [Member]
Net Receivable (Payable)
Net Receivable (Payable)	$ (5,971)	$ (1,965)
HLSS Employees [Member]
Net Receivable (Payable)
Net Receivable (Payable)	(25,524)
Net Receivable (Payable)	$ (31,495)	$ (1,965)

Note 29 COMMITMENTS AND CONTINGENCIES (Detail) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Feb. 15, 2013

Jun. 30, 2008

Jun. 30, 2007

ProposedSettlementWithForeignTaxingAuthorities

$ 2,809,000

$ 156,718,000

Payment Nontransfer Pricing Issues

7,647,000

Aged, Originating before 2000 [Member]

Principal Amount Outstanding on Loans Held-for-sale or Securitization or Asset-backed Financing Arrangement

$ 41,240,000

Secured Debt, Other

$ 41,132,000

Foreign Facilities [Member]

Operating Leases, Rent Expense

$ 5,578,000

$ 12,315,000

Loss Contingency, Allegations

Litigation Contingencies In September 2006, the Bankruptcy Trustee in Chapter 7 proceedings involving American Business Financial Services, Inc. (ABFS) brought an action against multiple defendants, including Ocwen, in Bankruptcy Court. The action arises out of Debtor-in-Possession financing to ABFS by defendant Greenwich Capital Financial Products, Inc. and the subsequent purchases by Ocwen of MSRs and certain residual interests in mortgage-backed securities previously held by ABFS. The Trustee filed an amended complaint in March 2007 alleging various claims against Ocwen including turnover, fraudulent transfers, accounting, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, fraud, civil conspiracy and conversion. The Trustee seeks compensatory damages in excess of $100,000 and punitive damages jointly and severally against all defendants. In April 2008, Ocwen filed an answer denying all charges and a counterclaim for breach of contract, fraud, negligent misrepresentation and indemnification in connection with the MSR purchase transaction. On August 30, 2012, the Bankruptcy Court entered an order granting Ocwen's motion for partial summary judgment and denying the Trustee's motion for partial summary judgment. This order effectively rejects the bulk of the Trustee's damage claims against Ocwen. In light of this order, the parties entered into a definitive written settlement agreement that provides for a final resolution and termination of this matter. This settlement, which is subject to the approval of the Bankruptcy Court, will not have a material effect on our financial condition, results of operations or cash flows. We are subject to various other pending legal proceedings, including those subject to loss sharing and indemnification provisions of our various acquisitions. In our opinion, the resolution of those proceedings will not have a material effect on our financial condition, results of operations or cash flows.

Loss Contingency, Damages Sought, Value

$ 100,000,000

Intercompany Agreements, Description

Tax Matters India tax authorities issued income tax assessment orders with respect to assessment years 2006 - 2007 and 2007 - 2008. The proposed adjustments would impose upon OFSPL additional tax and interest of INR 156,718 ($2,809), and penalties may be assessed. Ocwen and OFSPL intend to vigorously contestthe assessments and do not believe they have violated any statutory provision or rule. OFSPL has submitted appeals in both cases to the India Income Tax Appellate Tribunal and petitioned for Competent Authority assistance under the Mutual Agreement Procedures of the U.S./India income tax treaty. OFSPL has furnished bank guarantees of INR 205,473 ($3,684) related to transfer pricing matters, paid INR 7,647 ($137) towards non-transfer pricing issues and obtained abeyance on the demand of INR 4,376 ($78) relating to non-transfer pricing matters. Due to uncertainties inherent in the appeals processes, Ocwen and OFSPL cannot currently estimate any additional exposure beyond the amount currently assessed and cannot predict when these tax matters will be resolved. Competent Authority relief should preserve Ocwen's right to offset any potential increase in India tax against Ocwen's U.S. taxes.

Bank Guarantee

3,684,000

205,473,000

Payment Nontransfer Pricing Issues

137,000

Abeyance On Demand Of Non-Transfer Pricing Issues

$ 78,000

$ 4,376,000

Site Contingency, Status of Regulatory Proceedings

Regulatory Contingencies We are subject to a number of pending federal and state regulatory investigations, examinations, inquiries, requests for information and/or other actions. In July 2010, OLS received two subpoenas from the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae in connection with ten private label mortgage securitization transactions where Freddie Mac and Fannie Mae have invested. The transactions include mortgage loans serviced but not originated by OLS or its affiliates. On November 24, 2010, OLS received a Civil Investigative Demand (CID) from the FTC requesting documents and information regarding various servicing activities. On June 6, 2012, the FTC notified OLS that it had referred this CID to the CFPB. On November 7, 2011, OLS received a CID from the Attorney General's Office of the Commonwealth of Massachusetts requesting documents and information regarding certain foreclosures executed in Massachusetts. On January 18, 2012, OLS received a subpoena from the New York Department of Financial Services (NY DFS) requesting documents regarding OLS' policies, procedures and practices regarding lender-placed or "force-placed" insurance which is required to be provided for borrowers who allow their hazard insurance policies to lapse. Separately, on December 5, 2012, we entered into a Consent Order with the NY DFS in which we agreed to the appointment of an independent Monitor to oversee our compliance with the Agreement on Servicing Practices. A process is underway with respect to the selection and appointment of a Monitor by the NY DFS, and we intend to continue to cooperate with respect thereto. On August 13, 2012, OLS received a request from the Multi-State Mortgage Committee of the Conference of State Bank Supervisors (MMC) to provide information and data relating to our loan servicing portfolio, including loan count and volume data, loan modifications, fees assessed, delinquencies, short sales, loan-to-value data and rating agency reports. The MMC, along with the CFPB, certain state Attorneys General and other agencies who were involved in the National Mortgage Settlement executed on February 9, 2012 by the five large banks , also requested that we indicate our position on behalf of OLS and Litton on the servicing standards and consumer relief provisions contained in that settlement. We are cooperating with and providing requested information to each of the agencies involved in the foregoing actions. Specifically in response to the request from the MMC, CFPB, state Attorneys General and other agencies , we indicated our willingness to adopt the servicing standards set out in the National Mortgage Settlement with certain caveats. We further indicated our willingness to undertake various consumer assistance commitments in the form of loan modifications and other foreclosure avoidance alternatives. On February 26, 2013, the MMC, CFPB and state Attorneys General requested that we consider a proposal to contribute to a consumer relief fund that would provide cash payments to borrowers foreclosed upon by OLS and various entities we have acquired. We believe the maximum liability under this proposal would be approximately $135 million. We do not believe such a contribution from us is warranted under the circumstances and have so notified the requesting parties. It is reasonably possible that legal proceedings could ensue with regard to this matter and, if so, we will defend vigorously. At this time, the amounts, if any, that ultimately could be incurred with regard to this matter are not reasonably estimable. On November 30, 2012, prior to our completion of the Homeward Acquisition, two CIDs were issued to Homeward Residential, Inc. (HRI) by the U.S. Department of Justice, Eastern District of Texas, as part of an investigation of whether HRI violated the False Claims Act in connection with its participation in the Home Affordable Mortgage Program (HAMP). We were advised by HRI that documents and information have been provided pursuant to these CIDs. The investigation remains open, and we intend to cooperate in the event there are further informational requests. As part of the ResCap Acquisition, OLS will be required to service the ResCap loans in accordance with the requirements of the National Mortgage Settlement, although OLS is not responsible for any payment, penalty or financial obligation, including but not limited to providing Ally's share of financial relief to borrowers under that settlement. The Office of Mortgage Settlement Oversight, which is responsible for monitoring compliance with obligations under the National Mortgage Settlement, issued a report on February 14, 2013 confirming that Ally/ResCap have completed its minimum consumer relief obligations. One or more of the foregoing regulatory actions or similar actions in the future against Ocwen, OLS, Litton or Homeward could cause us to incur fines, penalties, settlement costs, damages, legal fees or other charges in material amounts, or undertake remedial actions pursuant to administrative orders or court-issued injunctions, any of which could adversely affect our financial results or incur additional significant costs related to our loan servicing operations. In addition to these matters, Ocwen receives periodic inquires, both formal and informal in nature, from various state and federal agencies as part of those agencies' oversight of the mortgage servicing sector. Such ongoing inquiries, including those into servicer foreclosure processes, could result in additional actions by state or federal governmental bodies, regulators or the courts that could result in an extension of foreclosure timelines, which may be applicable generally to the servicing industry or to us in particular. In addition, a number of our match funded advance facilities contain provisions that limit the eligibility of advances to be financed based on the length of time that advances are outstanding, and two of our match funded advance facilities have provisions that limit new borrowings if average foreclosure timelines extend beyond a certain time period, either of which, if such provisions applied, could adversely affect liquidity by reducing our average effective advance rate. Increases in the amount of advances and the length of time to recover advances, fines or increases in operating expenses, and decreases in the advance rate and availability of financing for advances would lead to increased borrowings, reduced cash and higher interest expense which could negatively impact our liquidity and profitability.

Loss Contingency, Range of Possible Loss, Portion Not Accrued

$ 135,000,000

Commitments Contingencies and Guarantees [Text Block]

Loan Put-Back and Related Contingencies

	•	representations and warranties concerning loan quality, contents of the loan file or loan
	•	underwriting circumstances are inaccurate;
	•	adequate mortgage insurance is not secured within a certain period after closing;
	•	a mortgage insurance provider denies coverage; or
	•	there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements.

Servicing Assets Unpaid Loan Balance

$ 200,000,000

Principal Amount Outstanding on Loans Held-for-sale or Securitization or Asset-backed Financing Arrangement

2,702

Secured Debt, Other

$ 1,096,679,000

$ 540,369,000

Description of Lessee Leasing Arrangements, Operating Leases

Lease Commitments We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2018 exclusive of renewal option periods. Our annual aggregate minimum rental commitments under these leases are summarized as follows: 2013 $ 13,521 2014 13,497 2015 13,351 2016 13,085 2017 6,235 Thereafter 4,400 Total minimum lease payments $ 64,089 We assumed the obligation for the lease agreements associated with HomEq Servicing, Litton and Homeward facilities. The rental commitments in the table above for operating leases include the remaining amounts due through the earlier of the lease expiration date or the early termination date. During 2012, we negotiated a buyout of one of the two HomEq leases and renewed one of the two Litton leases on a temporary basis. The Homeward facility leases expire on various dates through 2018. In December 2010, we entered into an agreement with Altisource to sublease of 2,094 square feet of space as our principal executive office in Atlanta, Georgia. Under the terms of the agreement, Ocwen is responsible for monthly base rent of $3 plus a proportionate amount of maintenance costs and other shared services. The sublease is in effect through October 2014. We converted rental commitments for our facilities outside the U.S. to U.S. dollars using exchange rates in effect at December 31, 2012. Rent expense for 2012, 2011and 2010 was $14,666, $5,578 and $12,315, respectively.

Operating Leases, Rent Expense

$ 14,666,000

Business Acquisition, Description of Acquired Entity

Genworth Acquisition On October 26, 2012, Ocwen and Genworth Financial, Inc. (NYSE: GNW) entered into an agreement whereby Ocwen will acquire Genworth Financial Home Equity Access, Inc. for approximately $22 million in cash. The company, which will be renamed Liberty Home Equity Solutions, Inc., is the number one reverse mortgage originator based on September 2012 industry data with strong positions in both retail and wholesale originations. We expect the acquisition to close on April 1, 2013.

Business Acquisition, Cost of Acquired Entity, Cash Paid

$ 22,000,000

$ 840,000,000

Note 29 COMMITMENTS AND CONTINGENCIES (Detail) - (Table 1) $ in Thousands	Dec. 31, 2018 USD ($)
2013	$ 13,521
2014	13,497
2015	13,351
2016	13,085
2017	6,235
Thereafter	4,400
Total minimum lease payments	$ 64,089

Note 30 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Detail) - USD ($)	3 Months Ended			12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Nonrecurring Expense	$ 31,122,000	$ 18,746,000	$ 472,000	$ 1,270	$ 50,340,000	$ 52,603,000

Note 30 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Detail) - (Table 1 - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Fourth Quarter [Member]

$ 236,375

$ 156,625

99,097

^[1]

90,481

^[2]

137,278

66,144

(60,799)

(47,625)

76,479

18,519

11,138

8,864

Net loss (income) attributable to non-controlling interests

65,341

9,655

(4)

Earnings per share attributable to Ocwen stockholders

65,341

$ 9,651

Preferred stock dividends

(145)

Net income attributable to Ocwen common stockholders

$ 65,196

Earnings per share attributable to Ocwen common stockholders

$ 0.48

$ 0.08

$ 0.47

$ 0.08

Third Quarter [Member]

$ 232,700

$ 122,462

92,793

^[1]

65,650

^[2]

139,907

56,812

(59,161)

(27,861)

80,746

28,951

29,346

8,730

Net loss (income) attributable to non-controlling interests

51,400

20,221

Earnings per share attributable to Ocwen stockholders

51,400

$ 20,228

Net income attributable to Ocwen common stockholders

$ 51,400

Earnings per share attributable to Ocwen common stockholders

$ 0.38

$ 0.20

$ 0.37

$ 0.19

Second Quarter [Member]

$ 211,385

$ 105,837

85,908

^[1]

42,254

^[2]

125,477

63,583

(55,313)

(22,547)

70,164

41,036

25,331

14,653

Net loss (income) attributable to non-controlling interests

44,833

26,383

(5)

Earnings per share attributable to Ocwen stockholders

44,833

$ 26,378

Net income attributable to Ocwen common stockholders

$ 44,833

Earnings per share attributable to Ocwen common stockholders

$ 0.33

$ 0.26

$ 0.32

$ 0.25

First Quarter [Member]

$ 164,546

$ 111,006

86,127

^[1]

41,199

^[2]

78,419

69,807

(48,300)

(35,318)

30,119

34,489

10,770

12,425

Net loss (income) attributable to non-controlling interests

19,349

22,064

Earnings per share attributable to Ocwen stockholders

19,349

$ 22,074

Net income attributable to Ocwen common stockholders

$ 19,349

Earnings per share attributable to Ocwen common stockholders

$ 0.15

$ 0.22

$ 0.14

$ 0.21

$ 845,006

$ 495,930

$ 360,381

^[3],[4]

363,925

239,584

236,474

481,081

256,346

123,907

76,585

44,672

5,545

Net loss (income) attributable to non-controlling interests

180,923

78,331

37,984

(8)

Preferred stock dividends

180,778

$ 78,331

$ 37,984

$ 145

$ 1.35

$ 0.75

$ 0.38