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Total other comprehensive income, net of income taxes

(3,710)

1,455

1,505

Comprehensive income

290,439

182,378

79,828

Comprehensive income attributable to non-controlling interests

(1)

Comprehensive income attributable to Ocwen stockholders

$ 290,439

$ 182,378

$ 79,827

[1]	Net of tax benefit (expense) of $(3.6) million, $3.8 million and $0.5 million for 2013, 2012 and 2011, respectively.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Income tax benefit	$ 0.8	$ 3.0	$ (0.3)
Income tax expense	$ (3.6)	$ 3.8	$ 0.5

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Balance at at Dec. 31, 2010	$ 904,817	$ 1,007	$ 467,500	$ 445,456	$ (9,392)	$ 246
Balance at (in shares) at Dec. 31, 2010		100,726,947
Net income (loss)	78,323			78,331		(8)
Issuance of common stock	354,445	$ 288	354,157
Issuance of common stock (in shares)		28,750,000
Deemed dividends related to beneficial conversion feature of preferred stock	0
Preferred stock dividend	0
Conversion of 3.25% Convertible Notes	0
Exercise of common stock options	1,273	$ 4	1,269
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)	1,505				1,496	9
Balance at at Dec. 31, 2011	1,343,311	$ 1,299	826,121	523,787	(7,896)
Balance at (in shares) at Dec. 31, 2011		129,899,288.000
Net income (loss)	180,923			180,923
Discount – Preferred stock beneficial conversion feature	8,688		8,688
Deemed dividends related to beneficial conversion feature of preferred stock	(60)			(60)
Preferred stock dividend	(85)			(85)
Conversion of 3.25% Convertible Notes	56,410	$ 46	56,364
Conversion of 3.25% Convertible Notes (in shares)		4,635,159
Exercise of common stock options	6,287	$ 11	6,276
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	$ 1,611,422	$ 1,356	911,942	704,565	(6,441)
Balance at (in shares) at Dec. 31, 2012	135,637,932	135,637,932.000
Net income (loss)	$ 294,149	$ 0	0	294,149	0	0
Deemed dividends related to beneficial conversion feature of preferred stock	(6,989)			(6,989)
Preferred stock dividend	(5,031)			(5,031)
Conversion of 3.25% Convertible Notes
Conversion of preferred stock	100,000	$ 31	99,969
Conversion of preferred stock (in shares)		3,145,640
Repurchase of common stock	(217,903)	$ (42)	(217,861)
Repurchase of common stock (in shares)		(4,271,347)
Exercise of common stock options	(2,605)	$ 7	(2,612)	0	0	0
Exercise of common stock options (in shares)		652,015
Equity-based compensation	26,989	$ 0	26,989	0	0	0
Equity-based compensation (in shares)		12,031
Other comprehensive income (loss)	(3,710)	$ 0	0	0	(3,710)	0
Balance at at Dec. 31, 2013	$ 1,796,322	$ 1,352	$ 818,427	$ 986,694	$ (10,151)	$ 0
Balance at (in shares) at Dec. 31, 2013	0	135,176,271

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Stated percentage of convertible notes		3.25%
Preferred stock dividends (usd per share)	$ 37.29	$ 0.26

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities
Net income	$ 294,149	$ 180,923	$ 78,323
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of servicing rights	282,781	72,897	42,996
Amortization of debt discount	1,412	3,259	8,853
Amortization of debt issuance costs – senior secured term loan	4,395	3,718	9,764
Depreciation	24,245	5,720	4,160
Provision for bad debts	34,816	5,030	852
(Gain) loss on sale of loans	(121,694)	(215)	2
Loss on deconsolidation of variable interest entities		3,167
Realized and unrealized losses on derivative financial instruments	14,336	4,294	7,426
(Gain) loss on extinguishment of debt	8,681	2,167	(3,651)
Gain on valuation of mortgage servicing rights, at fair value	(30,816)	(30)	0
(Increase) decrease in deferred tax assets, net	(22,112)	62,393	29,898
Origination and purchase of loans held for sale	(9,678,038)	(172,262)
Proceeds from sale and collections of loans held for sale	9,468,627	243,434	1,468
Changes in assets and liabilities:
Decrease in advances and match funded advances	295,108	1,443,643	842,545
(Increase) decrease in receivables and other assets, net	224,543	(53,870)	(36,452)
Increase (decrease) in servicer liabilities	2,563	1,750	(1,196)
Increase (decrease) in other liabilities	67,773	(4,343)	(15,470)
Other, net	(3,606)	14,179	12,627
Net cash provided by operating activities	867,163	1,815,854	982,145
Cash flows from investing activities
Cash		(79,511)	(23,791)
Investment in unconsolidated entities			(15,340)
Distributions of capital from unconsolidated entities	1,300	3,226	2,415
Purchase of mortgage servicing rights, net	(987,663)	(180,039)
Acquisition of advances in connection with the purchase of MSRs	(2,588,739)	(1,920,437)
Proceeds from sale of advances and match funded advances	3,842,537	2,824,645	0
Net proceeds from sale of diversified fee-based businesses to Altisource Portfolio Solutions, SA	210,793	0	0
Proceeds from sale of MSRs	34,754	0	0
Proceeds from sale of advance financing subsidiary and special purpose entity	0	76,334	0
Proceeds from sale of beneficial interest in consolidated variable interest entities		3,020
Origination of loans held for investment - reverse mortgages	(609,555)	0	0
Principal payments received on loans held for investment - reverse mortgages	5,886	0	0
Additions to premises and equipment	(28,915)	(19,217)	(3,822)
Other	(1,207)	(449)	8,329
Net cash provided by (used in) investing activities	(2,414,978)	262,870	(2,655,118)
Cash flows from financing activities
(Repayment of) proceeds from match funded liabilities	(167,931)	(1,665,330)	1,076,422
Proceeds from other borrowings	9,633,914	204,784	563,500
Repayments of other borrowings	(8,787,302)	(822,137)	(281,768)
Payment of debt issuance costs – senior secured term loan	(25,758)	(1,052)	(13,147)
Proceeds from sale of mortgage servicing rights accounted for as a financing	447,755	320,381	0
Proceeds from sale of loans accounted for as a financing	604,991
Issuance of common stock	0	0	354,445
Repurchase of common stock	(217,903)	0	0
Redemption of 10.875% Capital Securities		(26,829)
Payment of preferred stock dividends	(5,115)	0	0
Proceeds from exercise of common stock options	2,302	6,005	1,483
Other	21,244	(18,650)	(11,524)
Net cash provided by (used in) financing activities	1,506,197	(2,002,828)	1,689,411
Net (decrease) increase in cash	(41,618)	75,896	16,438
Cash at beginning of year	220,130	144,234	127,796
Cash at end of year	178,512	220,130	144,234
Supplemental cash flow information
Interest paid	413,014	219,825	128,947
Income tax payments, net	14,747	37,199	29,461
Supplemental non-cash investing and financing activities
Conversion of Series A preferred stock to common stock	100,000	0	0
Conversion of 3.25% Convertible Notes to common stock		56,410	0
Fair value of assets acquired
Loans held for sale		(558,721)
Deferred tax assets		(52,103)
Premises and equipment	(16,423)	(12,515)	(3,386)
Goodwill	(207,776)	(345,936)	(57,430)
Debt service accounts		(69,287)
Receivables and other assets	(2,989)	(27,765)	(4,888)
Fair value of assets acquired, total	(2,364,333)	(3,773,064)	(2,701,946)
Fair value of liabilities assumed
Match funded liabilities		1,997,459
Other secured borrowings		864,969
Servicing liabilities			8,972
Accrued expenses and other liabilities	74,624	145,812	22,483
Total consideration	(2,289,709)	(764,824)	(2,670,491)
Issuance of preferred stock as consideration		162,000
Amount due from seller for purchase price adjustments		(900)
Less cash acquired		79,511	23,791
ResCap [Member]
Cash flows from investing activities
Cash paid to acquire business	(2,289,709)	0	0
Liberty Acquisition
Cash flows from investing activities
Cash paid to acquire business	(26,568)	0	0
Correspondent One [Member]
Cash flows from investing activities
Cash	(22,108)	0	0
Homeward Residential Holdings, Inc. [Member]
Cash flows from investing activities
Cash paid to acquire business	0	(524,213)	0
Litton Acquisition
Cash flows from investing activities
Cash paid to acquire business	0		(2,646,700)
Match Funded Advances [Member]
Fair value of assets acquired
Advances	(1,747,201)	(2,266,882)	(2,468,137)
Mortgage Servicing Rights [Member]
Fair value of assets acquired
Mortgage servicing rights	(389,944)	(360,344)	(144,314)
Cash Paid [Member]
Fair value of liabilities assumed
Cash paid	(2,289,709)	(603,724)	(2,670,491)
Cash Paid Net [Member]
Fair value of liabilities assumed
Cash paid	$ (2,289,709)	$ (524,213)	$ (2,646,700)

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

Note 1 — Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

Organization

Ocwen Financial Corporation (NYSE: OCN) (Ocwen, we, us and our) 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 throughout the United States (U.S.) and in the United States Virgin Islands (USVI) with support operations in India, the Philippines and Uruguay. Ocwen is a Florida corporation organized in February 1988.

Ocwen owns all of the common stock of its primary operating subsidiary, Ocwen Mortgage Servicing, Inc. (OMS), and directly or indirectly owns all of the outstanding stock of its other primary operating subsidiaries: Ocwen Loan Servicing, LLC (OLS), Ocwen Financial Solutions Private Limited, Homeward Residential, Inc. (Homeward), and Liberty Home Equity Solutions, Inc. (Liberty).

We are subject to licensing requirements in the jurisdictions in which we originate and/or service mortgage loans.

We purchase existing mortgage servicing rights (MSRs) from market participants and generate new MSRs through our origination activities. We perform primary and master servicer activities on behalf of investors and other servicers, including the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the GSEs), the Government National Mortgage Association (Ginnie Mae) and private-label securitizations (non-Agency). As primary servicer, we may be required to make certain payments of property taxes and insurance premiums, default and property maintenance payments, as well as advances of principal and interest payments before collecting them from borrowers. As master servicer, we collect mortgage payments from primary servicers and distribute the funds to investors in the mortgage-backed securities. To the extent the primary servicer does not advance the scheduled principal and interest, as master servicer we are responsible for advancing the shortfall subject to certain limitations.

We originate, purchase, sell and securitize conventional and government insured forward and reverse mortgages. The GSEs or Ginnie Mae guarantee these securitizations.

We are actively engaged in identifying and completing asset and other acquisitions in connection with our growth strategy. This could involve the acquisition of domestic and international servicing and/or origination platforms or related assets. In 2013, we completed MSR and servicing advance receivable acquisitions from, among others, OneWest Bank, FSB (OneWest MSR Transaction) and Ally Bank (Ally MSR Transaction), and servicing and origination platform acquisitions including Liberty through a stock purchase agreement (Liberty Acquisition) and certain assets and operations of Residential Capital, LLC (ResCap) pursuant to a plan under Chapter 11 of the Bankruptcy Code (ResCap Acquisition). Ally Bank is a wholly-owned subsidiary of Ally Financial Inc. (Ally), the indirect parent of ResCap. In 2012, we completed the merger by and among Ocwen, O&H Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Ocwen, Homeward Residential Holdings, Inc. a Delaware corporation (Holdings), and WL Ross & Co. LLC, a Delaware limited liability company, as shareholder representative, pursuant to which O&H Acquisition Corp. merged with and into Holdings with Holdings continuing as the surviving corporation and becoming a wholly-owned subsidiary of Ocwen (Homeward Acquisition). In 2011, we completed the acquisition of Litton Loan Servicing LP (Litton Acquisition), a subsidiary of The Goldman Sachs Group, Inc. (Goldman Sachs). We have significantly expanded our GSE servicing capabilities and portfolio through the Homeward, ResCap and Ally MSR acquisitions. We acquired forward and reverse conventional and government insured mortgage origination platforms as a result of the Homeward and Liberty acquisitions. See Note 3 — Business Acquisitions and Note 9 — Mortgage Servicing for additional information.

Consolidation and Basis of Presentation

Principles of Consolidation

Our financial statements include the accounts of Ocwen, its majority-owned subsidiaries and any variable interest entity (VIE) for which we have determined that we are 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 have eliminated all significant intercompany accounts and transactions in consolidation.

Foreign Currency Translation

Where the functional currency is not the U.S. dollar, we translate the assets and liabilities of foreign subsidiaries into U.S. dollars at the current rate of exchange existing at the balance sheet date, while revenues and expenses are translated at average exchange rates during the reported period. Non-current assets and equity are translated to U.S. dollars at historical exchange rates. We report the resulting translation adjustments as a component of Accumulated other comprehensive loss in Stockholders’ equity in our Consolidated Balance Sheets. Where the functional currency of a foreign subsidiary is the U.S. dollar, re-measurement adjustments of foreign-denominated amounts to U.S. dollars are included in Other, net in our Consolidated Statements of Operations.

Reclassifications

We made the following reclassifications within the Total assets and Total liabilities sections of the Consolidated Balance Sheets at December 31, 2012:


•	Combined Loans held for sale, at fair value of $426.5 million (previously reported as a separate line item) and Loans held for sale, at the lower of cost or fair value of $82.9 million (previously included in Other assets) in a new line item, Loans held for sale;


•	Combined Mortgage servicing rights, at amortized cost of $676.7 million (previously reported as a separate line item) and Mortgage servicing rights, at fair value of $85.2 million (previously reported as a separate line item) in a new line item, Mortgage servicing rights; and


•	Reclassified Financing liabilities of $306.3 million from Lines of credit and other secured borrowings to a new line item.

Within the Revenue section of the Consolidated Statement of Operations for 2012 and 2011, we reclassified Process management fees of $37.1 million and $34.2 million, respectively, to Other revenues. In addition, certain other insignificant amounts in the Consolidated Statements of Operations and Cash Flows for prior years have been reclassified to conform to the current year presentation. These reclassifications had no impact on our consolidated financial position, cash flows or results of operations.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the related disclosures in the accompanying notes. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, the provision for potential losses that may arise from litigation proceedings, representation and warranty and other indemnification obligations and the valuation of goodwill. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ because of uncertainties associated with estimating the amounts, timing and likelihood of possible outcomes.

Significant Accounting Policies

Cash

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

Mortgage Servicing Rights

MSRs are an intangible asset representing our right to service portfolios of mortgage loans. We primarily obtain MSRs through asset purchases or business combination transactions. We also retain MSRs on originated loans when they are sold in the secondary market. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, we do not recognize an MSR.

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. The unpaid principal balance (UPB) of the loan portfolios that we service for others is not included on our balance sheet.

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

All newly acquired or retained MSRs are initially measured at fair value. We recognize a servicing liability for those portfolio contracts that are not expected to compensate us adequately for performing the servicing. For this purpose, we define contracts as conventional (Fannie Mae and Freddie Mac, collectively Agency), government insured (FHA and VA) or non-Agency based on their general comparability with regard to servicing guidelines, underwriting standards and borrower risk characteristics. Servicing assets are not recognized for subservicing arrangements entered into with the entity that owns the MSRs. Subsequent to acquisition, we account for servicing assets and servicing liabilities using the amortization method or the fair value measurement method. The fair value election is irrevocable and can be made at the beginning of any fiscal year. Once the fair value election is made for a particular class of MSRs, that election applies to all subsequently acquired or originated servicing assets and liabilities with characteristics consistent with the class. For the year ended December 31, 2013, we defined our classes based on our strategy for managing the risks of the underlying portfolios. For certain of the servicing assets, we previously managed 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.

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 MSR 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 the underlying portfolios into the applicable strata. We recognize any impairment through a valuation allowance. We adjust the valuation allowance to reflect subsequent changes in the measurement of impairment. However, we do not recognize fair value in excess of the carrying amount of servicing assets for that stratum.

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.

We earn fees for servicing mortgage loans. We collect servicing fees, generally expressed as a percent of UPB, from the borrowers’ payments. We also include late fees, prepayment penalties, float earnings and other ancillary fees in servicing revenue. 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.

Advances and Match Funded Advances

During any period in which a 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 liquidated 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 that 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 that 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.

Loans Held for Sale

Loans held for sale include forward and reverse residential mortgage loans that we originate or purchase and do not intend to hold until maturity. We report loans held for sale at either fair value or the lower of cost or fair value computed on an aggregate basis. Loan origination fees, as well as premium and discount, points and incremental direct origination costs, are initially recorded as an adjustment of the cost basis of the loan and are deferred until the loan is sold. For loans that we elected to measure at fair value on a recurring basis, we report changes in fair value in Gain on loans held for sale, net in the Consolidated Statements of Operations in the period in which the changes occur. These loans are expected to be sold into the secondary market to the GSEs or into Ginnie Mae guaranteed securitizations.

For all other loans held for sale which we report at the lower of cost or fair value, we account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other, net, in the Consolidated Statements of Operations 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 for more 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 the interest that we have accrued but not yet received. We return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectibility.

Transfers of Financial Assets

We securitize, sell and service forward and reverse residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. We typically retain economic interests in the securitized assets in the form of servicing rights and obligations. In order to efficiently finance our assets and operations and create liquidity, we may sell servicing advances, MSRs or the right to receive servicing fees, excluding ancillary income, relating to certain of our MSRs (Rights to MSRs).

In order to determine whether or not a VIE is required to be consolidated, we consider our ongoing involvement with the VIE. In circumstances where we have both the power to direct the activities that most significantly impact the performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be significant, we would conclude that we would consolidate the entity, which precludes us from recording an accounting sale in connection with the transfer of the financial assets. In the case of a consolidated VIE, we continue to report the underlying residential mortgage loans or servicing advances, and we record the securitized debt on our consolidated balance sheet.

In the case of transfers where either one or both of the power or economic criteria above are not met, we evaluate whether we achieve a sale for accounting purposes. In order to achieve a sale, the transferred assets must be legally isolated, not be constrained by restrictions from further transfer and be deemed to be beyond our control. If the transfer does not meet any of these three criteria, the accounting is consistent with a secured financing as described in the preceding paragraph. Subsequent to the determination that a transaction does not meet the accounting sale criteria, we may determine that we meet the criteria. In the event we subsequently meet the sale accounting criteria, we derecognize the transferred assets and related liabilities.

In the case of transfers of MSRs and Rights to MSRs where we retain the right to subservice, we defer the related gain or loss and amortize the balance over the life of the subservicing agreement.

Gains or losses on off-balance sheet securitizations take into consideration any retained interests, including servicing rights and representation and warranty obligations, both of which are initially recorded at fair value at the date of sale in Gain on loans held for sale, net, in our Consolidated Statements of Operations.

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired, including any identifiable intangible assets. We test goodwill for impairment annually or sooner if an event occurs or circumstances change that would more likely than not (defined as having a likelihood of more than 50 percent) reduce the fair value of a reporting unit below its net carrying value. We perform our annual impairment test of goodwill as of August 31^st of each year. Goodwill is reviewed for impairment utilizing a two-step process. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If no impairment is implied based upon the qualitative assessment, 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.

If we were to perform the two-step quantitative assessment, we would first 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 would then perform the second step of the impairment test to measure the amount of impairment loss, if any. In the second, step we would allocate 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 would 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 would use an approach based on the fair value of the assets and liabilities. We would 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.

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
Buildings	40 years
Leasehold improvements	Term of the lease not to exceed useful life
Furniture and fixtures	5 years
Office equipment	5 years

Representation, Warranty and Indemnification Obligations

We recognize the fair value of representation and warranty obligations in connection with originations upon the sale or securitization of the loan or upon the completion of an acquisition to the extent that we assume these obligations. Obligations recognized in connection with our loan sales and securitization activities are classified in Other liabilities on our Consolidated Balance Sheet and recognized in Gain on loans held for sale, net on our Consolidated Statements of Operations. The fair value of liabilities assumed as part of an MSR or servicing business acquisition are recognized on the closing date and are classified in Other liabilities on our Consolidated Balance Sheet. Thereafter, the estimation of the liability considers probable future obligations based on industry data for loans of similar type segregated by year of origination and estimated loss severity based on current loss rates for similar loans, our historical rescission rates and the current pipeline of unresolved demands. Our historical loss severity considers the historical loss experience that we incur upon sale or liquidation of a repurchased loan as well as current market conditions. We review each demand and monitor through resolution, primarily through rescission, loan repurchase or make-whole payment. We recognize subsequent changes in the liability when additional relevant information becomes available.

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 that it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize 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 that 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, to the extent that it is effective, and 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 derivative instruments not designated as a hedge for accounting purposes that were entered into as an economic hedge against changes in fair value of a recognized asset, we report changes in the fair value in the same financial statement category of the statement of operations as the changes in fair value of the related asset. For all other derivatives instrument not designated as a hedging instrument, we report changes in the fair values in 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.

Convertible Preferred Stock

We evaluate convertible preferred stock that we issue and determine if the preferred stock should be accounted for as equity or as debt. We also determine if the conversion feature of the preferred stock must be separated from the host contract. We evaluate the change of control provisions to determine if they could result in a redemption not solely under Ocwen’s control, in which case the preferred stock would be classified as “mezzanine” equity rather than permanent equity as part of Stockholders’ equity.

We also evaluate the conversion option of the preferred stock to determine if it represents a Beneficial Conversion Feature (BCF). If we determine that the conversion option is a BCF, we determine 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 — and account for it as a discount on the preferred stock with an offsetting increase in additional paid in capital and we determine the period over which the discount is to be amortized.

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.

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 (EPS) based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted EPS 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 EPS includes the estimated impact of the exercise of the outstanding options to purchase common stock using the treasury stock method. The computation of diluted EPS also includes the potential shares of converted common stock associated with our Series A Perpetual Convertible Preferred Stock (the Preferred Shares) and our previously outstanding 3.25% Contingent Convertible Senior Unsecured Notes (the 3.25% Convertible Notes) using the if-converted method.

Recently Adopted Accounting Standards

Balance Sheet – Disclosures about Offsetting Assets and Liabilities (ASU 2011-11 and ASU 2013-01)

As of January 1, 2013, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2011-11, which amends Accounting Standards Codification (ASC) 210, Balance Sheet. This ASU contains new disclosure requirements regarding the nature of an entity’s netting arrangements, including rights of offset, associated with its financial instruments and derivative instruments. In addition, we adopted ASU 2013-1, which clarified the scope of ASU 2011-11. The new disclosures will give financial statement users information about both gross and net exposures. ASU 2011-11 and ASU 2013-01 are required to be applied retrospectively. Since the guidance relates only to disclosure of information, the adoption did not have a material impact on our consolidated financial condition or results of operations.

Comprehensive Income – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02)

As of January 1, 2013, we adopted ASU 2013-02, which amends ASC 220, Comprehensive Income. The ASU contains new requirements related to the presentation and disclosure of items that are reclassified out of accumulated other comprehensive income. The new requirements provide financial statement users a more comprehensive view of items that are reclassified out of accumulated other comprehensive income. ASU 2013-02 is required to be applied prospectively. Since the guidance related only to presentation and disclosure of information, the adoption did not have a material impact on our consolidated financial condition or results of operations.

Derivatives and Hedging – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2013-10)

As of July 17, 2013, we adopted ASU 2013-10, which amends ASC 815, Derivatives and Hedging. The ASU established the Fed Funds Effective Swap Rate, or Overnight Index Swap Rate (OIS), as an additional U.S. benchmark interest rate for hedge accounting purposes. Prior to the ASU’s addition of the OIS as a benchmark rate, only interest rates on direct Treasury obligations and the London Interbank Offered Rate (LIBOR) swap rate were considered to be such benchmarks. The amendments of the update also remove the restriction on using different benchmark rates for similar hedges. The amendment is effective prospectively when entering into new or redesignating existing hedging relationships on or after July 17, 2013. Adoption did not have a material impact on our consolidated financial condition or results of operations.

Recently Issued Accounting Standards

Liabilities – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-04)

In February 2013, the FASB issued ASU 2013-04. This ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. It further requires that an entity disclose the nature and amount of the obligation as well as other information about those obligations. ASU 2013-04 will be effective for us on January 1, 2014 with retrospective application required. The adoption did not have a material impact on our consolidated financial condition or results of operations.

Foreign Currency Matters – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05)

In March 2013, the FASB issued ASU 2013-05. This ASU requires that a reporting entity that ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity release any related cumulative translation adjustment (CTA) into net income. The CTA should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For an equity method investment that is a foreign entity, a pro rata portion of the CTA should be released into net income upon a partial sale of such an investment. This ASU clarifies that the sale of an investment in a foreign entity includes both events that result in the loss of a controlling financial interest in a foreign entity, irrespective of any retained investment, and events that result in step acquisition under which an acquirer obtains control of an acquiree in which it held an equity interest immediately before the acquisition date. Under these circumstances, the CTA should be released into net income upon their occurrence. ASU 2013-05 will be effective for us prospectively on January 1, 2014. Adoption of this standard on January 1, 2014 did not have a material impact on our consolidated financial condition or results of operations.

Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists

In July 2013, the FASB issued ASU 2013-11. This ASU generally requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward, a similar tax loss or a tax credit carryforward. The guidance further includes an exception that if a NOL carryforward, a similar tax loss, or a tax credit carryforward is not available to settle any additional income taxes that would result from the disallowance of a tax position at the reporting date or the tax law of the applicable jurisdiction does not require the entity to use them and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. ASU 2013-11 will be effective for us on January 1, 2014. The amendment should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption and retrospective application are permitted. Adoption of this guidance did not have a material impact on our consolidated financial condition or results of operations.

Securitization and Variable Interests

12 Months Ended

Dec. 31, 2013

Securitizations and Variable Interest Entities

Note 2 — Securitizations and Variable Interest Entities

We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with 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.

We have determined that the SPEs created in connection with our match funded financing facilities are VIEs of which we are the primary beneficiary. We also determined that we were the primary beneficiary for certain residential mortgage loan securitization trusts which were subsequently derecognized on December 31, 2012, upon sale of our retained interests to a third party.

Securitizations of Residential Mortgage Loans

Currently, we securitize forward and reverse residential mortgage loans involving the GSEs and Ginnie Mae. We retain the right to service these loans and receive servicing fees based upon the securitized loan balances and certain ancillary fees, all of which are reported in Servicing and subservicing fees on the Consolidated Statements of Operations. In prior years, we securitized residential mortgage loans through private label securitization trusts. We continued to be involved with the securitization 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 securitization 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 also acquired residual and subordinated interests in trusts where we were not the transferor but were the servicer.

In December 2012, we sold the beneficial interests that we held in four securitization trusts that we had included in our consolidated financial statements and deconsolidated these securitization trusts. All assets and liabilities associated with the trusts were derecognized. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The beneficial owners of the trusts can look only to the assets of the securitization trusts for satisfaction of the debt issued by the securitization trusts and have no recourse against the assets of Ocwen. The general creditors of Ocwen have no claim on the assets of the trusts.

Transfers of Forward Loans

We sell or securitize forward loans that we originate or that we purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization usually occurs within 30 days of loan closing or purchase. We retain servicing rights associated with the transferred loans and receive a servicing fee for services provided. We act only as a fiduciary and do not have a variable interest in the securitization trusts. As a result, we account for these transactions as sales upon transfer.

We report the gain or loss on the transfer of the loans held for sale in Gain on loans held for sale, net in the Consolidated Statements of Operations along with changes in fair value of the loans and the gain or loss on the related derivatives. See Note 19 — Derivative Financial Instruments and Hedging Activities for information on these derivative financial instruments. We include all changes in loans held for sale and related derivative balances in operating activities in the Consolidated Statements of Cash Flows.

The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers accounted for as sales that were outstanding during 2013:



Proceeds received from securitizations	$	7,871,481
Servicing fees collected	20,333
Purchases of previously transferred assets, net of claims reimbursed	(358		)
	$	7,891,456

In connection with these transfers, we recorded MSRs of $74.8 million during 2013. We initially record the MSRs at fair value and subsequently account for them at amortized cost. See Note 9 — Mortgage Servicing for information relating to MSRs.

Certain obligations arise from agreements associated with our transfers of loans. Under these agreements, we may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor or insurer for losses incurred due to material breach of contractual representations and warranties. See Note 16 — Other Liabilities for further information.

The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as our maximum exposure to loss including the UPB of the transferred loans at December 31:



	2013		2012
Carrying value of assets:
Mortgage servicing rights, at amortized cost	$	44,615	$	—
Mortgage servicing rights, at fair value	3,075		2,908
Advances and match funded advances	15,888		—
Unpaid principal balance of loans transferred (1)	5,641,277		238,010
Maximum exposure to loss	$	5,704,855	$	240,918


(1)	The UPB of the loans transferred is the maximum exposure to loss under our standard representations and warranties obligations.

At December 31, 2013, 2.6% of the transferred residential loans that we serviced were 60 days or more past due. During 2013, there were no charge-offs, net of recoveries, associated with these transferred loans.

Transfers of Reverse Mortgages

We are an approved issuer of Ginnie Mae Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae. We originate Home Equity Conversion Mortgages (HECMs, or reverse mortgages) that are insured by the FHA. We then pool the loans into HMBS that we sell into the secondary market with servicing rights retained. We have determined that loan transfers in the HMBS program do not meet the definition of a participating interest because of the servicing requirements in the product that require the issuer/servicer to absorb some level of interest rate risk, cash flow timing risk and incidental credit risk. As a result, the transfers of the HECMs do not qualify for sale accounting, and we, therefore, account for these transfers as financings. Under this accounting treatment, the HECMs are classified as Loans held for investment - reverse mortgages, at fair value, on our Consolidated Balance Sheets. We record the proceeds from the transfer of assets as secured borrowings (HMBS-related borrowings) in Financing liabilities and recognize no gain or loss on the transfer. Holders of participating interests in the HMBS have no recourse against the assets of Ocwen, except for standard representations and warranties and our contractual obligation to service the HECMs and the HMBS.

We have elected to measure the HECMS and HMBS-related borrowings at fair value. The changes in fair value of the HECMs and HMBS-related borrowings are included in Other revenues in our Consolidated Statements of Operations. Included in net fair value gains on the HECMs and related HMBS borrowings are the interest income that we expect to be collected on the HECMs and the interest expense that we expect to be paid on the HMBS-related borrowings. We report originations and collections of HECMs in investing activities in the Consolidated Statements of Cash Flows. We report net fair value gains on HECMs and the related HMBS borrowings as an adjustment to the net cash provided by or used in operating activities in the Consolidated Statements of Cash Flows. Proceeds from securitizations of HECMs and payments on HMBS-related borrowings are included in financing activities in the Consolidated Statements of Cash Flows.

At December 31, 2013, we had HMBS-related borrowings of $615.6 million and HECMs pledged as collateral to the pools of $618.0 million. See Note 5 — Fair Value for a reconciliation of the changes in fair value for the year ended December 31, 2013.

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 either 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 make 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 SPE. Holders of the debt issued by these entities can look only to the assets of the SPE for satisfaction of the debt and have no recourse against Ocwen. However, Ocwen and OLS have guaranteed the payment of the obligations under the securitization documents of one of the entities. The maximum amount payable under the guarantee is limited to 10% of the notes outstanding at the end of the facility’s revolving period in December 2014. The entity to which this guarantee applies had $33.2 million of notes outstanding at December 31, 2013. Ocwen and OLS had previously guaranteed the payment of obligations under the securitization documents of one additional entity; however, in July 2013, 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 8 — Match Funded Advances, Note 13 — Debt Service Accounts and Note 15 — Borrowings for additional information.

Note 9 — Mortgage Servicing

MSRs are comprised of the following at December 31:



	2013		2012
MSRs - Amortization method	$	1,953,352	$	678,937
MSRs - Fair value measurement method	116,029		85,213
	$	2,069,381	$	764,150

Mortgage Servicing Rights – Amortization Method

Servicing Assets. The following tables summarize the activity in the carrying value of amortization method servicing assets for the years ended December 31:



	2013			2012			2011
Beginning balance	$	678,937		$	293,152		$	193,985
Additions recognized in connection with business acquisitions:
ResCap Acquisition (1)	389,944			—			—
Liberty Acquisition (1)	2,840			—			—
Homeward Acquisition (1)	—			278,069			—
Litton Acquisition (1)	—			—			144,314
Additions recognized in connection with asset acquisitions:
Ally MSR Transaction (2)	683,787			—			—
OneWest MSR Transaction (3)	398,804			—			—
Greenpoint MSR Transaction (4)	33,647			—			—
Saxon	—			77,881			—
JPMorgan	—			23,445			—
Bank of America	—			64,569			—
Other	8,764			16,084			—
Additions recognized on the sale of mortgage loans	74,784			—			—
Sales (5)	(28,403		)	—			—
Servicing transfers and adjustments	(8,883		)	(4		)	—
Change in valuation allowance	2,375			(88		)	574
Amortization (6)	(283,244		)	(74,171		)	(45,721		)
Ending balance	$	1,953,352		$	678,937		$	293,152

Estimated fair value at end of year	$	2,441,719		$	743,830		$	340,015


(1)	See Note 3 — Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.

(2)

The acquired MSRs relate to mortgage loans with a UPB of $87.5 billion owned by Freddie Mac and Fannie Mae. We also acquired servicing advances and other receivables of $73.6 million. Prior to the closing, we subserviced the related MSRs on behalf of Ally Bank. We assumed the origination representation and warranty obligations of approximately $136.7 million in connection with a majority of the acquired MSRs. We had been subservicing these MSRs on behalf of Ally under a subservicing contract that we assumed in connection with the ResCap Acquisition. No operations, entities or other assets were acquired in the transaction.

(3)

The acquired MSRs relate to mortgage loans with a UPB of approximately $69.0 billion and related servicing advance receivables of $2.1 billion acquired in the OneWest MSR Transaction. No operations or other assets were purchased in the transaction. As part of the OneWest MSR Transaction, both the seller and OLS have agreed to indemnification provisions for the benefit of the other party. The OneWest MSR Transaction closed in stages, and the majority of loans were boarded onto our primary servicing platform as of December 31, 2013. Each closing is subject to, among other things, receipt of certain investor and third party consents and customary closing conditions.


(4)	The acquired MSRs relate to mortgage loans with a UPB of approximately $6.3 billion and related servicing advance receivables of $422.1 million.


(5)	Cash proceeds from the sale were $34.8 million. These MSRs were sold with subservicing retained. The gain on the sale of $5.1 million has been deferred and will be recognized in earnings over the life of the subservicing contract.


(6)	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.

As disclosed in Note 4 — Sales of Advances and MSRs, we sold certain Rights to MSRs during 2012 and 2013 as part of the HLSS Transactions which did not qualify as sales for accounting purposes. The carrying value of the related MSRs which have not been derecognized at December 31, 2013 and 2012 was $455.4 million and $273.0 million, respectively. In addition, at December 31, 2013, MSRs with a carrying value of $48.2 million were pledged to secure the promissory note under our MSR financing facility. See Note 15 — Borrowings for additional information regarding this facility.

The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2013, is projected as follows over the next five years:



2014	$	326,583
2015	276,893
2016	234,207
2017	194,053
2018	160,804

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

Mortgage Servicing Rights—Fair Value Measurement Method

This portfolio comprises servicing rights for which we elected the fair value option and includes Agency forward residential mortgage loans for which we previously hedged the related market risks. We acquired these MSRs as part of the Homeward Acquisition.

The following table summarizes the activity related to fair value servicing assets for the years ended December 31:



	2013			2012
Beginning balance	$	85,213		$	—
Amount recognized in connection with the Homeward Acquisition (1)	—			82,275
Additions recognized on the sale of residential mortgage loans	—			2,908
Changes in fair value (2):
Changes in market value assumptions	44,199			30
Realization of cash flows and other changes	(13,383		)	—
Ending balance	$	116,029		$	85,213


(1)	See Note 3 — Business Acquisitions for additional information.


(2)	Changes in fair value are recognized in Servicing and origination expense in the Consolidated Statements of Operations.

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 value of the MSRs that we carry at fair value as of December 31, 2013 given hypothetical instantaneous parallel shifts in the yield curve:



	Adverse change in fair value
	10%			20%
Weighted average prepayment speeds	$	(7,995	)	$	(15,713	)
Discount rate (Option-adjusted spread)	$	(4,497	)	$	(8,659	)

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. The UPB of assets serviced for others are not included on our Consolidated Balance Sheet.



	Residential		Commercial		Total
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
UPB at December 31, 2013
Servicing (1)	$	397,546,635	$	—	$	397,546,635
Subservicing	67,104,697		400,502		67,505,199
	$	464,651,332	$	400,502	$	465,051,834


(1)	Includes UPB of $175.1 billion and $79.4 billion at December 31, 2013 and 2012, respectively, for which the Rights to MSRs have been sold to HLSS.

Residential assets serviced includes foreclosed real estate. Residential assets serviced also includes small-balance commercial assets with a UPB of $2.6 billion and $2.1 billion at December 31, 2013 and 2012, respectively that are managed using the REALServicing™ application. Commercial assets consist of large-balance foreclosed real estate.

At December 31, 2013, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:



	Amount		Count
California	$	112,200,350	436,374
Florida	37,881,401		245,438
New York	30,548,742		129,364
Texas	20,838,925		203,035
New Jersey	20,336,702		97,207
Other	242,845,212		1,750,500
	$	464,651,332	2,861,918

Servicing Revenue

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



	2013		2012		2011
Loan servicing and subservicing fees:
Servicing	$	1,246,882	$	535,415	$	313,997
Subservicing	146,605		45,713		27,404
	1,393,487		581,128		341,401
Home Affordable Modification Program (HAMP) fees	152,812		76,764		42,025
Late charges	115,826		69,281		38,557
Loan collection fees	31,022		15,960		11,223
Custodial accounts (float earnings)	5,332		3,749		2,105
Other	125,080		57,525		23,527
	$	1,823,559	$	804,407	$	458,838

Float balances amounted to $3.2 billion and $1.3 billion at December 31, 2013 and 2012, 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.

Transfers and Servicing of Financial Assets [Abstract]

Business Acquisitions

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Acquisitions

Note 3 — Business Acquisitions

We completed the Liberty, Correspondent One, ResCap, Homeward and Litton acquisitions as part of our ongoing strategy to expand our residential origination and servicing businesses. 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 purchase price allocations provided below for each business acquisition are based on an estimate of the fair value of the acquired loans, advances, MSRs and the assumed debt in a manner consistent with the methodology described in Note 5 — Fair Value. Premises and equipment 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. Other assets and liabilities expected to have a short life were valued at the face value of the specific assets and liabilities purchased, including receivables, prepaid expenses, accounts payable and accrued expenses.

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 each acquiree. In addition, the pro forma consolidated results do not purport to project our combined future results nor do they reflect the expected realization of any cost savings associated with each acquisition.

The acquisitions of Liberty and Homeward were treated as stock purchases for U.S. tax purposes. The ResCap and Litton acquisitions were 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 values as shown in the purchase price allocation tables below. We expect 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.

Purchase Price Allocation

The following table summarizes the fair values of assets acquired and liabilities assumed as part of the ResCap, Homeward and Litton acquisitions:



	ResCap										Homeward									Litton
Purchase Price Allocation	February 15, 2013			Adjust- ments			Revised				December 27, 2012			Adjust- ments			Final			Final
Cash	$	—		$	—		$	—			$	79,511		$	—		$	79,511		$	23,791
Loans held for sale	—			—			—				558,721			—			558,721			—
MSRs(2)	393,891			(3,947		)	389,944			(1)	358,119			2,225			360,344			144,314
Advances and match funded advances (2)	1,622,348			124,853			1,747,201			(1)	2,266,882			—			2,266,882			2,468,137
Deferred tax assets	—			—			—				47,346			4,757			52,103			—
Premises and equipment	22,398			(5,975		)	16,423				16,803			(4,288		)	12,515			3,386
Debt service accounts	—			—			—				69,287			—			69,287			—
Investment in unconsolidated entities	—			—			—				5,485			—			5,485			—
Receivables and other assets (3)	2,989			—			2,989				56,886			(34,606		)	22,280			4,888
Match funded liabilities	—			—			—				(1,997,459		)	—			(1,997,459		)	—
Other borrowings	—			—			—				(864,969		)	—			(864,969		)	—
Other liabilities:																				—
Liability for indemnification obligations	(49,500		)	—			(49,500		)		(32,498		)	—			(32,498		)	—
Liability for certain foreclosure matters (4)	—			—			—				—			(13,430		)	(13,430		)	—
Accrued bonuses	—			—			—				(35,201		)	—			(35,201		)	—
Checks held for escheat	—			—			—				(16,418		)	(35		)	(16,453		)	(3,939		)
Other	(24,840		)	(284		)	(25,124		)		(47,614		)	(616		)	(48,230		)	(27,516		)
Total identifiable net assets	1,967,286			114,647			2,081,933				464,881			(45,993		)	418,888			2,613,061
Goodwill	204,743			3,033			207,776			(1)	300,843			45,093			345,936			57,430
Total consideration	2,172,029			117,680			2,289,709				765,724			(900		)	764,824			2,670,491
Debt repaid to seller at closing	—			—			—				—			—			—			(2,423,123		)
Base purchase price, as adjusted	$	2,172,029		$	117,680		$	2,289,709			$	765,724		$	(900	)	$	764,824		$	247,368


(1)	Initial fair value estimate.

(2)

As of the acquisition date, the purchase of certain MSRs from ResCap was not complete pending the receipt of certain consents and court approvals. During the third and fourth quarters of 2013, we obtained the required consents and approvals for a portion of these MSRs and paid an additional purchase price of $120.4 million to acquire the MSRs and related advances. The purchase price allocation has been revised to include the resulting adjustments to MSRs, advances and goodwill. We completed additional settlements in January and February 2014.


(3)	The Homeward purchase price allocation has been revised to include a $34.6 million income tax liability, with an offsetting increase to goodwill.


(4)	See Note 16 — Other Liabilities for additional information.

Because the measurement period is still open for the ResCap Acquisition, we expect that certain fair value estimates will change once we receive all information necessary to make a final fair value assessment. As disclosed above, we completed additional settlements in January and February 2014 requiring revisions to the purchase price allocation to include the resulting adjustments to MSRs, advances and goodwill. Any measurement period adjustments that we identify and determine to be material will be applied retrospectively to the period of acquisition, and depending on the nature of the adjustments, other periods subsequent to the period of acquisition could also be affected. As of December 31, 2013, we have adjusted the initial purchase price and purchase price allocations related to the Homeward and ResCap Acquisitions as indicated in the table above. These measurement period adjustments were applied retrospectively to the period of acquisition. None of the adjustments had a material impact on earnings.

ResCap Acquisition

We completed the ResCap Acquisition on February 15, 2013. We acquired MSRs related to conventional, government insured and non-Agency residential forward mortgage loans with a UPB of $111.2 billion and master servicing agreements with a UPB of $44.9 billion. The ResCap Acquisition included advances and elements of the servicing platform related to the acquired MSRs, as well as certain diversified fee-based business operations that included recovery, title and closing services. We also assumed subservicing contracts with a UPB of $27.0 billion. Under the terms of the ResCap Acquisition, we are obligated to acquire certain servicing rights and subservicing agreements that were not settled as part of the initial closing on February 15, 2013 as a result of objections raised in connection with the sale. We purchase these MSRs and assume the subservicing contracts from ResCap when such consents and approvals are obtained. We completed subsequent settlements and purchased additional MSRs during the third and fourth quarters of 2013 as objections were resolved.

To finance the ResCap Acquisition, we deployed $840.0 million from the proceeds of a new $1.3 billion senior secured term loan (SSTL) facility and borrowed an additional $1.2 billion pursuant to two new servicing advance facilities and one existing facility. We settled the third and fourth quarter closings with cash. Ocwen assumed certain limited liabilities as part of the transaction, including certain employee liabilities and certain business payables outstanding at the closing date. Under the agreement with ResCap, Ocwen generally did not assume any contingent obligations, including pending or threatened litigation, financial obligations in connection with any settlements, orders or similar agreements entered into by ResCap or obligations in connection with any representations or warranties associated with loans previously sold by ResCap except for litigation that may arise in the ordinary course of servicing mortgage loans relating to servicing agreements assumed by Ocwen. Ocwen assumed all liabilities related to servicing loans that are guaranteed by Ginnie Mae, whether arising prior to or after the closing date.

On April 12, 2013, in connection with the sale to Altisource Portfolio Solutions, S.A. (Altisource) of the diversified fee-based business acquired in connection with the ResCap Acquisition, we received cash consideration from Altisource of $128.8 million. At the time of the closing, we derecognized goodwill of $128.8 million associated with the diversified fee-based business sold to Altisource. There were no other significant assets or liabilities associated with this business. See Note 26 — Related Party Transactions for a discussion of additional terms that were established related to the existing services agreements.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of the ResCap operations that are included in our unaudited Consolidated Statements of Operations from the acquisition date of February 15, 2013 through December 31, 2013:



Revenues	$	684,935
Net income	$	16,424

Pro Forma Results of Operations

The following table presents supplemental pro forma information for Ocwen as if the ResCap Acquisition occurred on January 1, 2012. Pro forma adjustments include:


•	conforming servicing revenues to the revenue recognition policies followed by Ocwen;


•	conforming the accounting for MSRs to the valuation and amortization policies of Ocwen;


•	adjusting interest expense to eliminate the pre-acquisition interest expense of ResCap and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2012; and


•	reporting acquisition-related charges for professional services as if they had been incurred in 2012 rather than 2013.



	2013		2012
	(Unaudited)		(Unaudited)
Revenues	$	2,086,010	$	1,263,692
Net income	$	285,302	$	87,262

Through December 31, 2013, we incurred approximately $3.2 million of fees for professional services related to the ResCap Acquisition that are included in Operating expenses.

Homeward Acquisition

We completed the Homeward Acquisition on December 27, 2012. We acquired the MSRs and subservicing for approximately 421,000 residential mortgage loans with a UPB of $77.0 billion. We also acquired Homeward’s loan origination platform and its diversified fee-based businesses, including property valuation, REO management, title, closing and advisory services. On March 29, 2013, Ocwen sold the Homeward diversified fee-based businesses to Altisource Solutions S.à r.l. and Altisource Portfolio Solutions, Inc., wholly-owned subsidiaries of Altisource, for an aggregate purchase price of $87.0 million in cash ($82.0 million, net of cash transferred and other adjustments). As part of this transaction, Ocwen sold its investment in two subsidiaries of Homeward, Beltline Road Insurance Agency, Inc. and Power Default Services, Inc. Ocwen also agreed to sell to Altisource certain designated assets used or usable in the business conducted by another Homeward subsidiary, Power Valuation Services, Inc., as well as certain designated intellectual property and information technology assets that are used or usable in the business conducted by the acquired subsidiaries or by Powerline Valuation Services, Inc. Altisource also assumed certain liabilities of the diversified fee-based business. The carrying value of the net assets sold, including allocated goodwill, approximated the sales price. The assets sold consisted of receivables and other assets of $9.4 million. The liabilities assumed by Altisource of $4.0 million consisted principally of deferred revenue. At the time of the sale, we derecognized goodwill of $81.6 million associated with the sold businesses. In connection with this transaction, Ocwen entered into amendments to certain of its services and intellectual property agreements with Altisource. See Note 26 — Related Party Transactions for a discussion of these amendments.

As consideration for the Homeward Acquisition, Ocwen paid an initial aggregate purchase price of $765.7 million. Of this amount, $603.7 million was paid in cash and $162.0 million was paid in Preferred Shares. $75.0 million 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 17 — Mezzanine Equity for information related to the preferred stock.

Payment of the cash consideration was financed, in part, by a $100.0 million incremental term loan from Barclays Bank PLC pursuant to the existing SSTL facility that we entered into on September 1, 2011 and $75.0 million from Altisource, pursuant to a senior unsecured loan agreement. See Note 15 — Borrowings for additional information regarding the terms of these agreements.

Following the acquisition, we terminated the senior credit facility and revolving line of credit that we assumed from Homeward and repaid the outstanding balances which totaled $350.0 million.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of the Homeward that is included in our Consolidated Statements 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	$	254,051	$	163,647

Through December 31, 2012, we incurred approximately $1.0 million of fees for professional services related to the Homeward Acquisition that are included in Operating expenses.

Litton Acquisition

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

The base purchase price for the Litton Acquisition was $247.4 million, which was paid in cash by Ocwen. 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 $575.0 million 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 purchase agreement provided that the severance plans of Litton and Goldman Sachs remained in effect for 1 year. We recognized severance expense of $10.1 million 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 $42.5 million which was held by the facility indenture trustee for the benefit of the note holders. Ocwen also paid an $11.5 million 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 were to be amortized over the 5-year life of the loan.

In connection with the Litton Acquisition, Ocwen, Goldman Sachs, Litton and the New York Department of Financial Services (NY DFS) entered into an agreement on servicing practices (Agreement on Servicing Practices) 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 Agreement on Servicing Practices. For additional detail on the Agreement on Servicing Practices, see Note 28 - Commitments and Contingencies below.

Post-Acquisition Results of Operations

The following table presents the revenue and earnings of the Litton operations that are included in our Consolidated Statements 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 $49.6 million, including (i) $33.1 million of severance and other compensation related to Litton employees, (ii) $6.8 million of amortization of the acquired MSRs, (iii) $2.0 million of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $0.4 million 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.

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
	(Unaudited)
Revenues	$	642,033
Net income (loss)	$	52,407

Through December 31, 2011, we incurred approximately $1.2 million of fees for professional services related to the Litton Acquisition that are included in Operating expenses.

Other Acquisitions

Correspondent One

On March 31, 2013, we increased our ownership in Correspondent One, an entity formed with Altisource in March 2011, from 49% to 100%. We acquired the shares of Correspondent One held by Altisource (49% interest) for $12.6 million and acquired the remaining shares held by an unrelated entity for $0.9 million. We accounted for this transaction as an acquisition and recognized the assets acquired and liabilities assumed at their fair values as of the acquisition date. The acquired net assets were $26.3 million and consisted primarily of cash ($23.0 million) and residential mortgage loans ($1.1 million). We remeasured our previously held investment, which we accounted for using the equity method, at fair value and recognized a loss of $0.4 million. We did not recognize goodwill in connection with this acquisition. Correspondent One facilitates the purchase of conventional and government insured residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. Correspondent One is not material to our financial condition, results of operations or cash flows.

Liberty

On April 1, 2013, we completed the Liberty Acquisition for $22.0 million in cash. In addition, and as part of the closing, Ocwen repaid Liberty’s $9.1 million existing outstanding debt to the sellers. We acquired approximately 420 reverse mortgage loans with a UPB of $55.2 million. We also acquired Liberty’s reverse mortgage origination platform. The acquired net assets were $31.1 million and consisted primarily of residential reverse mortgage loans ($60.0 million), receivables ($11.2 million), loans held for investment ($10.3 million) and cash ($4.6 million) less amounts due under warehouse facilities ($46.3 million) and HMBS-related borrowings ($10.2 million). We recognized $3.0 million of goodwill in connection with this acquisition. Liberty is engaged in the origination, purchase, sale and securitization of reverse mortgage loans, both retail and wholesale. The acquisition of Liberty did not have a material impact on our financial condition, results of operations or cash flows.

Facility Closure Costs

In connection with the business acquisitions completed in recent years, we incurred employee termination benefits primarily consisting of severance, Worker Adjustment and Retraining Notification Act compensation and lease termination costs for the closure of leased facilities. The following table provides a reconciliation of the beginning and ending liability balances for these termination costs:



	Employee termination benefits			Lease termination costs			Total
Liability balance as at December 31, 2010	$	1,332		$	7,794		$	9,126
Additions charged to operations (1)	33,127			—			33,127
Amortization of discount	—			99			99
Payments	(29,296		)	(2,606		)	(31,902		)
Liability balance as at December 31, 2011	5,163			5,287			10,450
Additions charged to operations (1)	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	—			4,891			4,891
Additions charged to operations (1)	20,683			—			20,683
Amortization of discount	—			347			347
Payments	(15,867		)	(2,784		)	(18,651		)
Liability balance as at December 31, 2013 (2)	$	4,816		$	2,454		$	7,270

(1)

Additions charged to operations during 2011 and 2012 were recorded in the Servicing segment. In 2013, $15.9 million of the charges were recorded in the Servicing segment, $0.7 million was recorded in the Lending segment and the remaining $4.1 million was recorded in Corporate Items and Other. 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 Sheets.


(2)	We expect the remaining liability for employee termination benefits at December 31, 2013 to be settled in 2014.

Sales of Advances and MSRs

12 Months Ended

Dec. 31, 2013

Sales of Advances and MSRs

Note 4 — Sales of Advances and MSRs

In order to efficiently finance our assets and operations and to create liquidity, we periodically sell MSRs, Rights to MSRs and servicing advances to market participants, including Home Loan Servicing Solutions, Ltd. and its wholly owned subsidiary, HLSS Holdings, LLC (collectively HLSS). We typically retain the right to subservice loans when we sell MSRs and Rights to MSRs. To the extent applicable, HLSS may also acquire advance SPEs and the related match funded liabilities (together with the purchase of Rights to MSRs and servicing advances, the HLSS Transactions). During the years ended December 31, 2013 and 2012, we completed HLSS Transactions relating to the Rights to MSRs for $119.7 billion and $82.7 billion of UPB, respectively.

As part of the HLSS Transactions, we retain legal ownership of the MSRs and continue to service the related mortgage loans. We are obligated to transfer legal ownership of the MSRs to HLSS upon obtaining all required third party consents. At that time, we would subservice the loans pursuant to a subservicing agreement, as amended, with HLSS. See Note 26 — Related Party Transactions for additional information regarding this agreement.

During 2013, we also sold MSRs to unaffiliated third parties in transactions accounted for as sales with subservicing retained. See Note 9 — Mortgage Servicing for additional information.

The following table provides a summary of the assets and liabilities sold in connection with the HLSS Transactions during the years ended December 31:



	2013		2012
Sale of MSRs accounted for as a financing	$	417,167	316,607

Sale of advances and match funded advances	3,839,954		2,827,227

Sale of advance SPEs:
Match funded advances	—		413,374
Debt service account	—		14,786
Prepaid lender fees and debt issuance costs	—		5,422
Other prepaid expenses	—		1,928
Match funded liabilities	—		(358,335	)
Accrued interest payable and other accrued expenses	—		(841	)
Net assets of advance SPEs	—		76,334
Sales price, as adjusted	4,257,121		3,220,168
Amount due to (from) HLSS for post-closing adjustments at December 31	—		(1,410	)
Cash received on current year sales	4,257,121		3,218,758
Amount received from HLSS as settlement of post-closing adjustments outstanding at the end of the previous year	1,410		—
Total cash received	$	4,258,531	3,218,758

Because we retain legal title to the MSRs, the sales of Rights to MSRs are accounted for as financings. To the extent that we obtain all the third party consents, we will derecognize the related MSRs. Upon derecognition, any resulting gain or loss will be deferred and amortized over the expected life of the related subservicing agreement. Until derecognition, we continue to recognize the full amount of servicing revenue and amortization of the MSRs.

The related advance sales meet the requirements for sale accounting under GAAP. When HLSS acquired advance SPEs from Ocwen, we derecognized the consolidated assets and liabilities of the advance SPEs at the time of the sale. In subsequent sales of advances, HLSS acquired the advances directly and the transferred financial assets were accounted for as a sale and were derecognized from our financial statements. We have also evaluated our relationship with the financing SPEs to which HLSS has transferred the servicing advances that it has acquired from us and have determined that we are not required to consolidate these SPEs.

We have determined that the HLSS Transactions do not constitute the disposal of a business. Therefore, there is 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.

Fair Value

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value

Note 5 — 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.

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:



		2013				2012
	Level	Carrying Value		Fair Value		Carrying Value			Fair Value
Financial assets:
Loans held for sale:
Loans held for sale, at fair value (a)	2	$	503,753	$	503,753	$	426,480		$	426,480
Loans held for sale, at lower of cost or fair value (b)	3	62,907		62,907		82,866			82,866
Total Loans held for sale		$	566,660	$	566,660	$	509,346		$	509,346
Loans held for investment - Reverse mortgages, at fair value (a)	3	$	618,018	$	618,018	$	—		$	—
Advances and match funded advances (c)	3	3,444,571		3,444,571		3,233,707			3,233,707
Receivables, net (c)	3	152,516		152,516		132,853			132,853

Financial liabilities:
Match funded liabilities (c)	3	$	2,364,814	$	2,364,814	$	2,532,745		$	2,533,278
Financing liabilities:
HMBS-related borrowings, at fair value (a)	3	$	615,576	$	615,576	$	—		$	—
Other (c)	3	668,653		668,653		306,308			306,308
Total Financing liabilities		$	1,284,229	$	1,284,229	$	306,308		$	306,308
Other secured borrowings:
Senior secured term loan (c)	3	$	1,284,901	$	1,270,108	$	305,997		$	310,822
Other (c)	3	492,768		492,768		484,374			484,374
Total Other secured borrowings		$	1,777,669	$	1,762,876	$	790,371		$	795,196

Derivative financial instruments (a):
IRLCs	2	$	8,433	$	8,433	$	5,781		$	5,781
Interest rate swaps	3	—		—		(10,836		)	(10,836		)
Forward MBS trades	1	6,905		6,905		(1,719		)	(1,719		)
U.S. Treasury futures	1	—		—		(1,258		)	(1,258		)
Interest rate caps	3	442		442		168			168

MSRs:
MSRs, at fair value (a)	3	$	116,029	$	116,029	$	85,213		$	85,213
MSRs, at amortized cost (c)	3	1,953,352		2,441,719		678,937			743,830
Total MSRs		$	2,069,381	$	2,557,748	$	764,150		$	829,043


(a)	Measured at fair value on a recurring basis.


(b)	Measured at fair value on a non-recurring basis.


(c)	Disclosed, but not carried, at fair value.

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



	Loans Held for Investment - Reverse Mortgages			HMBS-Related Borrowings			Derivative Financial Instruments, net			MSRs		Total
January 1, 2013	$	—		$	—		$	(10,668	)	$	85,213	$	74,545
Purchases, issuances, sales and settlements:
Purchases	10,251			(10,179		)	498			—		570
Issuances	609,555			(604,991		)	—			—		4,564
Sales	—			—			24,156			—		24,156
Settlements	(5,886		)	5,440			(1,241		)	—		(1,687		)
	613,920			(609,730		)	23,413			—		27,603
Total realized and unrealized gains and (losses): (1)
Included in earnings	4,098			(5,846		)	60			30,816		29,128
Included in Other comprehensive income (loss)	—			—			(12,363		)	—		(12,363		)
	4,098			(5,846		)	(12,303		)	30,816		16,765
Transfers in and / or out of Level 3	—			—			—			—		—
December 31, 2013	$	618,018		$	(615,576	)	$	442		$	116,029	$	118,913



	Derivative Financial Instruments, net			MSRs		Total
January 1, 2012	$	(16,676	)	$	—	$	(16,676	)
Purchases, issuances, sales and settlements:
Purchases	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) (1):
Included in earnings	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	—			—		—
December 31, 2012	$	(10,668	)	$	85,213	$	74,545



	Derivative Financial Instruments, net
January 1, 2011	$	(15,351	)
Purchases, issuances, sales and settlements:
Purchases	3,688
Settlements	85
	3,773
Total realized and unrealized gains and (losses):
Included in earnings	(5,881		)
Included in Other comprehensive income (loss)	783
	(5,098		)
Transfers in and / or out of Level 3	—
December 31, 2011	$	(16,676	)


(1)	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1.2 million and $5.1 million, 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:

Loans Held for Sale

We originate and purchase residential forward and reverse mortgage loans that we intend to sell to the GSEs. We also own residential mortgage loans that are not eligible to be sold to the GSEs due to delinquency or other factors. Residential forward and reverse mortgage loans that we intend to sell to the GSEs are carried at fair value as a result of a fair value election. Such loans 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 because 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 conventional and government insured mortgage loans are typically sold.

We repurchase certain loans from Ginnie Mae guaranteed securitizations in connection with loan modifications and loan resolution activity as part of our servicing obligations. These are classified as loans held for sale at the lower of cost or fair value, in the case of modified loans, as we expect to redeliver (sell) the loans to new Ginnie Mae guaranteed securitizations. The fair value of these loans is estimated using published forward Ginnie Mae prices. Loans repurchased in connection with loan resolution activities are modified or otherwise remediated through loss mitigation activities or are reclassified to receivables. Because these loans are insured or guaranteed by the FHA or VA, the fair value of these loans represents the net recovery value taking into consideration the insured or guaranteed claim

For all other loans held for sale which we report at the lower of cost or fair value, market illiquidity has reduced the availability of observable pricing data. When we enter into an agreement to sell a loan or pool of loans to an investor at a set price, we value the loan or loans 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.

Loans Held for Investment – Reverse Mortgages

We have elected to measure these loans at fair value. For transferred reverse mortgage loans that do not qualify as sales for accounting purposes, we base the fair value on the expected future cash flows discounted over the expected life of the loans at a rate commensurate with the risk of the estimated cash flows. Significant assumptions include expected prepayment and delinquency rates and cumulative loss curves. The discount rate assumption for these assets is primarily based on an assessment of current market yields on newly originated reverse mortgage loans, expected duration of the asset and current market interest rates.

The more significant assumptions used in the December 31, 2013 valuation include:


•	Life in years ranging from 2.76 to 23.25 (weighted average of 7.10);


•	Conditional repayment rate ranging from 4.83% to 38.40% (weighted average of 9.65%); and


•	Discount rate of 1.72%.

Significant increases or decreases in any of these assumptions in isolation could result in a significantly higher or lower fair value.

Mortgage Servicing Rights

Amortized Cost MSRs

We estimate the fair value of MSRs carried at amortized cost using a combination of internal models and data provided by third-party valuation experts. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience. Other assumptions typically used in the 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 financing servicing advances	•	Collection rate of other ancillary fees

The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, 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 estimate fair value using internal models and with the assistance of third-party valuation experts. Our internal models calculate the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We utilize a discount rate provided by third-party valuation experts, 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.

Third-party valuation experts generally utilize: (a) transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; and/or (b) industry-standard modeling, such as a discounted cash flow model, in arriving at their estimate of fair value. The prices provided by the valuation experts reflect their observations and assumptions related to market activity, including risk premiums and liquidity adjustments. The models and related assumptions used by the valuation experts are owned and managed by them and, in many cases, the significant inputs used in the valuation techniques are not reasonably available to us. However, we have an understanding of the processes and assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We believe that the procedures executed by the valuation experts, combined with our internal verification and analytical procedures, provide assurance that the prices used in our consolidated financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use.

The more significant assumptions used in the December 31, 2013 valuation of our MSRs carried at amortized cost include:


•	Prepayment speeds ranging from 6.41% to 17.50% (weighted average of 13.90%) depending on loan type;


•	Delinquency rates ranging from 6.18% to 30.82% (weighted average of 17.32%) depending on loan type;


•	Interest rate of 1-month LIBOR plus a range of 0.00% to 3.75% for computing the cost of financing servicing advances;


•	Interest rate of 1-month LIBOR for computing float earnings; and


•	Discount rates ranging from 9.98%% to 16.73% (weighted average of 11.64%)

We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping the underlying loans into the applicable strata. In response to the significant change in the composition of our MSR portfolio as a result of recent acquisitions, our stratum are defined as conventional (i.e. conforming to the underwriting standards of Fannie Mae or Freddie Mac), government insured (loans insured by FHA or VA), non-Agency (i.e. all private label primary and master serviced loans except non-Agency prime) and non-Agency prime (loans generally conforming to the underwriting standards of Fannie Mae and Freddie Mac that exceeded GSE loan limits, commonly referred to as jumbo mortgage loans).

Fair Value MSRs

MSRs carried at fair value are classified within Level 3 of the valuation hierarchy due to the use of third party valuation expert pricing without adjustment. The fair value of these MSRs is within the range of prices provided by the valuation experts; however, a change in the valuation inputs utilized by the valuation expert or a change in the best point price in the range might result in a significantly higher or lower fair value measurement.

The key assumptions (generally unobservable inputs) used in the valuation of these MSRs include:


•	Mortgage prepayment speeds;


•	Delinquency rates; and


•	Discount rates.

The primary assumptions used in the December 31, 2013 valuation include a 7.75% weighted average constant prepayment rate and a discount rate equal to 1-Month LIBOR plus 9.00%.

Advances

We value advances that we make on loans that we service for others at their net realizable value, which generally approximates fair value, because advances 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

Match Funded Liabilities

For match funded liabilities that bear interest at a rate that is adjusted regularly based on a market index, the carrying value approximates fair value. For match funded liabilities 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. At December 31, 2013, the interest on all borrowings under match funded facilities was based on a variable rate adjusted regularly using a market index, and therefore, the carrying value approximates fair value.

HMBS-Related Borrowings

We have elected to measure these borrowings at fair value. We recognize the proceeds from the transfer of reverse mortgages as a secured borrowing that we account for at fair value. These borrowings are not actively traded and therefore quoted market prices are not available. We determine fair value by discounting the future principal and interest repayments over the estimated life of the borrowing at a market rate commensurate with the risk of the estimated cash flows. Significant assumptions include prepayments, discount rate and borrower mortality rates for reverse mortgages. The discount rate assumption for these liabilities is based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates.

The more significant assumptions used in the December 31, 2013 valuation include:


•	Life in years ranging from 2.74 to 22.55 (weighted average of 6.42);


•	Conditional repayment rate ranging from 4.83% to 37.97% (weighted average of 9.65%); and


•	Discount rate of 1.17%.

Significant increases or decreases in any of these assumptions in isolation would result in a significantly higher or lower fair value.

Financing Liability - MSRs Pledged

The carrying value of the Financing Liability - MSRs Pledged approximates fair value. We initially establish the value of the Financing Liability - MSRs Pledged based on the price at which the Rights to MSRs are sold to HLSS. Thereafter, the carrying value of the Financing Liability - MSRs pledged is adjusted from time to time to reflect changes in the net present value of the estimated future cash flows of the underlying MSRs. Since these cash flows are ceded to HLSS as part of the HLSS transactions, the future cash flows of the underlying MSRs also represent the future payments to HLSS of principal and interest on the Financing Liability - MSRs Pledged. As a result, the net present value of the future cash flows related to the underlying MSRs also represent the net present value of the principal and interest payments to be made on the Financing Liability - MSRs Pledged. The net present value of these future cash flows represents the fair value of the Financing Liability - MSRs Pledged.

Other Secured Borrowings

The carrying value of secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other 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. For the SSTL, we used a discount rate of 5.57% and the repayment schedule specified in the loan agreement to determine fair value at December 31, 2013.

Derivative Financial Instruments

We may execute 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. We terminated our outstanding interest rates swaps on May 31, 2013.

In addition, we may 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 mortgage-backed securities (MBS) trades to provide an economic hedge against changes in fair value of residential forward and reverse mortgage loans held for sale that we carry at fair value. Forward MBS 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 and we obtained unadjusted market quotes for these derivatives, 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, an agreement to extend credit to a mortgage applicant (locked pipeline) 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 previously entered into derivative contracts that included 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. Effective April 1, 2013, we modified our strategy for managing the risks of the underlying loan portfolios and no longer use derivative contracts to hedge against the effects of changes in the value of MSRs which we carry at fair value. The fair value of interest rate swaps were based upon projected short-term interest rates and volatility based on published market based sources, a Level 3 valuation. Because futures and forward contracts are actively traded in the market, they are classified within Level 1 of the valuation hierarchy.

See Note 19 — Derivative Financial Instruments and Hedging Activities for additional information regarding derivative financial instruments.

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.

Loans Held for Sale

12 Months Ended

Dec. 31, 2013

Loans Held for Sale At Fair Value [Text Block]

Note 6 — Loans Held for Sale

Loans held for sale are comprised of the following at December 31:



	2013		2012
Loans held for sale - fair value	$	503,753	$	426,480
Loans held for sale - lower of cost or fair value	62,907		82,866
	$	566,660	$	509,346

Loans Held for Sale - Fair Value

Loans held for sale, at fair value, represent residential forward and reverse mortgage loans originated or purchased and held until sold to secondary market investors, such as GSEs or other third parties. The following table summarizes the activity in the balance of Loans held for sale, at fair value, during the years ended December 31:



	2013			2012
Beginning balance	$	426,480		$	—
Originations and purchases (1)	8,106,742			670,147
Proceeds from sales	(7,999,235		)	(241,960		)
Gain (loss) on sale of loans (2)	(26,981		)	3,889
Other	(3,253		)	(5,596		)
Ending balance	$	503,753		$	426,480


(1)	Purchases include $60.0 million of reverse mortgages acquired in the Liberty Acquisition in 2013 and $558.7 million of forward mortgages acquired in the Homeward Acquisition in 2012. See Note 3 — Business Acquisitions for additional information.


(2)	Includes gains of $41.7 million recorded during 2013 to adjust Loans Held for investment - reverse mortgages to fair value.

At December 31, 2013, Loans Held for Sale - Fair Value with a UPB of $471.2 million were pledged to secure Lending segment warehouse lines of credit. See Note 15 — Borrowings for additional information regarding these facilities.

Loans Held for Sale - Lower of Cost or Fair Value

Loans held for sale, at lower of cost or fair value, include residential loans that we do not intend to hold to maturity. The following table summarizes the activity in the balance of Loans held for sale, at lower of cost or fair value, during the years ended December 31:



	2013			2012			2011
Beginning balance	$	82,866		$	20,633		$	25,803
Purchases	1,632,390			65,756			—
Proceeds from sales	(1,036,316		)	—			—
Principal payments	(432,423		)	(1,474		)	(1,468		)
Transfers to accounts receivable	(218,629		)	—			—
Transfers to real estate owned	(4,775		)	(999		)	(2,599		)
Gain on sale of loans	35,087			—			—
Decrease (increase) in valuation allowance	(10,644		)	568			354
Modifications, charge offs and other	15,351			(1,618		)	(1,457		)
Ending balance	$	62,907		$	82,866		$	20,633

The balances at December 31, 2013, 2012 and 2011 are net of valuation allowances of $30.7 million, $14.7 million and $14.3 million, respectively. The balance at December 31, 2013 includes $43.1 million of loans that we were required to repurchase from Ginnie Mae guaranteed securitizations as part of our servicing obligations. Repurchased loans are modified or otherwise remediated through loss mitigation activities or are reclassified to receivables. The balance at December 31, 2012 includes non-performing mortgage loans with a carrying value of $65.4 million that we acquired in December 2012 and sold to Altisource Residential, LP in February 2013 for an insignificant gain.

At December 31, 2013, Loans Held for Sale - Lower of Cost or Fair Value with a UPB of $18.0 million were pledged to secure a warehouse line of credit. See Note 15 — Borrowings for additional information regarding this facility.

Gain (Loss) on Loans Held for Sale, Net

The following table summarizes the activity in Gain on loans held for sale, net, during the years ended December 31:



	2013			2012			2011
Gain (loss) on sales of loans (1)	$	82,518		$	6,797		$	(2	)
Change in fair value of IRLCs	523			2			—
Change in fair value of loans held for sale	(1,709		)	(5,462		)	—
Gain (loss) on economic hedge instruments	42,732			(1,075		)	—
Other	(2,370		)	(47		)	—
	$	121,694		$	215		$	(2	)


(1)	Includes gains of $74.8 million and $2.9 million for 2013 and 2012, respectively, representing the value assigned to MSRs retained on sales of loans. Also includes gains of $35.1 million recorded during 2013 on sales of repurchased loans into Ginnie Mae guaranteed securitizations.

Advances

12 Months Ended

Dec. 31, 2013

Advances [Abstract]

Advances

Note 7 — Advances

Advances, net, representing payments made on behalf of borrowers or on foreclosed properties, consisted of the following at December 31:



	2013		2012
Servicing:
Principal and interest	$	141,307	$	83,617
Taxes and insurance	477,039		51,447
Foreclosures, bankruptcy and other	269,409		41,296
	887,755		176,360
Corporate Items and Other	4,433		8,103
	$	892,188	$	184,463

The following table summarizes the activity in advances for the years ended December 31:



	2013			2012
Beginning balance	$	184,463		$	103,591
Acquisitions (1)	734,794			118,360
Transfers to match funded advances	(142,286		)	(74,317		)
Sales of advances to HLSS	(200,749		)	—
New advances, net of collections	315,966			36,829
Other	—			—
Ending balance	$	892,188		$	184,463


(1)	Servicing advances acquired in connection with the acquisition of MSRs through business acquisitions and asset acquisitions. See Note 3 — Business Acquisitions and Note 9 — Mortgage Servicing for additional information.

Match Funded Advance

12 Months Ended

Dec. 31, 2013

Match Funded Advance

Note 8 — Match Funded Advances

Match funded advances on residential loans we service for others are comprised of the following at December 31:



	2013		2012
Principal and interest	$	1,497,649	$	1,577,808
Taxes and insurance	830,113		1,148,486
Foreclosures, bankruptcy, real estate and other	224,621		322,950
	$	2,552,383	$	3,049,244

The following table summarizes the activity in match funded advances for the years ended December 31:



	2013			2012
Beginning balance	$	3,049,244		$	3,629,911
Acquisitions (1)	3,589,773			4,068,959
Transfers from advances (2)	142,286			74,317
Sales of advances to HLSS	(3,639,205		)	(3,240,601		)
Collections of pledged advances, net of new advances	(589,715		)	(1,483,342		)
Ending balance	$	2,552,383		$	3,049,244


(1)	Represents advances acquired in connection with business and asset acquisitions that were pledged to advance facilities at the date of acquisition.


(2)	Represents new advances initially classified as Advances at the date of payment and subsequently pledged to advance facilities.

Mortgage Servicing

12 Months Ended

Dec. 31, 2013

Mortgage Servicing

Note 2 — Securitizations and Variable Interest Entities

Securitizations of Residential Mortgage Loans

Transfers of Forward Loans

The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers accounted for as sales that were outstanding during 2013:



Proceeds received from securitizations	$	7,871,481
Servicing fees collected	20,333
Purchases of previously transferred assets, net of claims reimbursed	(358		)
	$	7,891,456



	2013		2012
Carrying value of assets:
Mortgage servicing rights, at amortized cost	$	44,615	$	—
Mortgage servicing rights, at fair value	3,075		2,908
Advances and match funded advances	15,888		—
Unpaid principal balance of loans transferred (1)	5,641,277		238,010
Maximum exposure to loss	$	5,704,855	$	240,918


(1)	The UPB of the loans transferred is the maximum exposure to loss under our standard representations and warranties obligations.

Transfers of Reverse Mortgages

Financings of Advances on Loans Serviced for Others

See Note 8 — Match Funded Advances, Note 13 — Debt Service Accounts and Note 15 — Borrowings for additional information.

Note 9 — Mortgage Servicing

MSRs are comprised of the following at December 31:



	2013		2012
MSRs - Amortization method	$	1,953,352	$	678,937
MSRs - Fair value measurement method	116,029		85,213
	$	2,069,381	$	764,150

Mortgage Servicing Rights – Amortization Method

Servicing Assets. The following tables summarize the activity in the carrying value of amortization method servicing assets for the years ended December 31:



	2013			2012			2011
Beginning balance	$	678,937		$	293,152		$	193,985
Additions recognized in connection with business acquisitions:
ResCap Acquisition (1)	389,944			—			—
Liberty Acquisition (1)	2,840			—			—
Homeward Acquisition (1)	—			278,069			—
Litton Acquisition (1)	—			—			144,314
Additions recognized in connection with asset acquisitions:
Ally MSR Transaction (2)	683,787			—			—
OneWest MSR Transaction (3)	398,804			—			—
Greenpoint MSR Transaction (4)	33,647			—			—
Saxon	—			77,881			—
JPMorgan	—			23,445			—
Bank of America	—			64,569			—
Other	8,764			16,084			—
Additions recognized on the sale of mortgage loans	74,784			—			—
Sales (5)	(28,403		)	—			—
Servicing transfers and adjustments	(8,883		)	(4		)	—
Change in valuation allowance	2,375			(88		)	574
Amortization (6)	(283,244		)	(74,171		)	(45,721		)
Ending balance	$	1,953,352		$	678,937		$	293,152

Estimated fair value at end of year	$	2,441,719		$	743,830		$	340,015


(1)	See Note 3 — Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.

(2)

(3)


(4)	The acquired MSRs relate to mortgage loans with a UPB of approximately $6.3 billion and related servicing advance receivables of $422.1 million.


(5)	Cash proceeds from the sale were $34.8 million. These MSRs were sold with subservicing retained. The gain on the sale of $5.1 million has been deferred and will be recognized in earnings over the life of the subservicing contract.


(6)	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.

The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2013, is projected as follows over the next five years:



2014	$	326,583
2015	276,893
2016	234,207
2017	194,053
2018	160,804

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

Mortgage Servicing Rights—Fair Value Measurement Method

The following table summarizes the activity related to fair value servicing assets for the years ended December 31:



	2013			2012
Beginning balance	$	85,213		$	—
Amount recognized in connection with the Homeward Acquisition (1)	—			82,275
Additions recognized on the sale of residential mortgage loans	—			2,908
Changes in fair value (2):
Changes in market value assumptions	44,199			30
Realization of cash flows and other changes	(13,383		)	—
Ending balance	$	116,029		$	85,213


(1)	See Note 3 — Business Acquisitions for additional information.


(2)	Changes in fair value are recognized in Servicing and origination expense in the Consolidated Statements of Operations.



	Adverse change in fair value
	10%			20%
Weighted average prepayment speeds	$	(7,995	)	$	(15,713	)
Discount rate (Option-adjusted spread)	$	(4,497	)	$	(8,659	)

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

Portfolio of Assets Serviced



	Residential		Commercial		Total
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
UPB at December 31, 2013
Servicing (1)	$	397,546,635	$	—	$	397,546,635
Subservicing	67,104,697		400,502		67,505,199
	$	464,651,332	$	400,502	$	465,051,834


(1)	Includes UPB of $175.1 billion and $79.4 billion at December 31, 2013 and 2012, respectively, for which the Rights to MSRs have been sold to HLSS.

At December 31, 2013, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:



	Amount		Count
California	$	112,200,350	436,374
Florida	37,881,401		245,438
New York	30,548,742		129,364
Texas	20,838,925		203,035
New Jersey	20,336,702		97,207
Other	242,845,212		1,750,500
	$	464,651,332	2,861,918

Servicing Revenue

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



	2013		2012		2011
Loan servicing and subservicing fees:
Servicing	$	1,246,882	$	535,415	$	313,997
Subservicing	146,605		45,713		27,404
	1,393,487		581,128		341,401
Home Affordable Modification Program (HAMP) fees	152,812		76,764		42,025
Late charges	115,826		69,281		38,557
Loan collection fees	31,022		15,960		11,223
Custodial accounts (float earnings)	5,332		3,749		2,105
Other	125,080		57,525		23,527
	$	1,823,559	$	804,407	$	458,838

Float balances amounted to $3.2 billion and $1.3 billion at December 31, 2013 and 2012, respectively.

Receivables

12 Months Ended

Dec. 31, 2013

Receivables

Note 10 — Receivables

Receivables consisted of the following at the dates indicated:



	Receivables		Allowance for Losses			Net
December 31, 2013
Servicing (1)	$	124,537	$	(17,419	)	$	107,118
Income taxes receivable	6,369		—			6,369
Due from related parties (2)	14,553		—			14,553
Other (3)	24,579		(103		)	24,476
	$	170,038	$	(17,522	)	$	152,516

December 31, 2012
Servicing (1)	$	84,870	$	(1,647	)	$	83,223
Income taxes receivable	20,686		—			20,686
Due from related parties (2)	12,361		—			12,361
Other	18,577		(1,994		)	16,583
	$	136,494	$	(3,641	)	$	132,853

(1)

The balances at December 31, 2013 and 2012 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. The balances at December 31, 2013 also include $54.0 million of receivables and $14.0 million of allowance for losses related to defaulted FHA or VA insured loans repurchased from Ginnie Mae guaranteed securitizations.


(2)	See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.


(3)	Includes $13.6 million related to probable losses expected to be indemnified under the terms of the Homeward merger agreement. See Note 3 — Business Acquisitions for additional information.

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.

Property, Plant and Equipment [Abstract]

Premises and Equipment

12 Months Ended

Dec. 31, 2013

Premises and Equipment

Note 11 — Premises and Equipment

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



	2013			2012
Computer hardware and software	$	51,060		$	32,628
Buildings	12,926			—
Leasehold improvements	25,467			14,950
Furniture and fixtures	13,174			10,367
Office equipment and other	12,506			9,108
	115,133			67,053
Less accumulated depreciation and amortization	(61,347		)	(33,806		)
	$	53,786		$	33,247

In 2013, we acquired premises and equipment with an estimated fair value of $16.4 million as part of the ResCap Acquisition, consisting primarily of buildings and computer hardware. See Note 3 — Business Acquisitions.

Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Other Liabilities Disclosure [Abstract]

Note 12 — Goodwill

The following table provides a summary of activity in the carrying value of goodwill during the year ended December 31, 2013. See Note 3 — Business Acquisitions for additional information.



	Liberty Acquisition		ResCap Acquisition			Homeward Acquisition			Litton Acquisition		HomEq Acquisition		Total
Balance at December 31, 2012	$	—	$	—		$	345,936		$	57,430	$	12,810	$	416,176
Recognition of goodwill in connection with a business acquisition	2,963		207,776			—			—		—		210,739
Derecognition of goodwill in connection with the sale of a business	—		(128,750		)	(81,607		)	—		—		(210,357		)
Balance at December 31, 2013	$	2,963	$	79,026		$	264,329		$	57,430	$	12,810	416,558

For the ResCap Acquisition, the $79.0 million of remaining goodwill is assigned to the Servicing segment. For the Homeward Acquisition, $218.2 million of the remaining goodwill is assigned to the Servicing segment and $46.2 million is assigned to the Lending segment. For the Liberty Acquisition, the entire balance is assigned to the Lending segment. The assignment of goodwill in the ResCap and Liberty Acquisitions is preliminary pending the final purchase price allocation. For the Litton and HomEq Acquisitions, the entire balance of goodwill is assigned to the Servicing segment.

We perform an annual impairment test of goodwill as of August 31 of each year. Based on our 2013 annual assessment, we determined that goodwill was not impaired. We elected to perform a qualitative assessment of impairment to determine whether any further quantitative testing for impairment was necessary. No impairment was implied based upon the qualitative assessment; therefore, no further testing was required.

Debt Service Accounts	12 Months Ended
Debt Service Accounts	Dec. 31, 2013
Debt Service Accounts [Abstract]
Debt Service Accounts	Note 13 — 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 and certain of our warehouse 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, 2013 and 2012 were $129.9 million and $88.7 million, respectively.

Other Assets

12 Months Ended

Dec. 31, 2013

Other Assets [Abstract]

Other Assets

Note 14 — Other Assets

Other assets consisted of the following at December 31:



	2013		2012
Prepaid lender fees and debt issuance costs, net (1)	$	31,481	$	14,389
Prepaid income taxes (2)	20,585		23,112
Prepaid expenses	16,132		15,058
Derivatives, at fair value (3)	15,494		10,795
Investment in unconsolidated entities (4)	11,771		25,187
Purchase price deposit (5)	10,000		57,000
Other	21,850		45,171
	$	127,313	$	190,712


(1)	These balances relate to match funded liabilities and other secured borrowings. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.


(2)	During 2012 and 2013, we completed intra-entity transfers of certain MSRs. The deferred tax effects of these transactions have been recognized as prepaid income tax assets and are being amortized to Income tax expense over a 7-year period.


(3)	See Note 19 — Derivative Financial Instruments and Hedging Activities for additional information regarding derivatives.


(4)	The balance at December 31, 2012 includes an investment of $13.4 million in Correspondent One. As disclosed in Note 3 — Business Acquisitions, we increased our ownership from 49% to 100% on March 31, 2013. Effective on that date, we began including the accounts of Correspondent One in our consolidated financial statements and eliminated our current investment in consolidation.

(5)

The balance at December 31, 2013 represents an initial cash deposit that we made in connection with the agreement we entered into on December 20, 2013 to acquire MSRs and related advances from Wells Fargo Bank, N.A. This deposit along with an additional deposit of $15.0 million that we made in January 2014 will be held in escrow until the transaction closes. The balance at December 31, 2012 represents an earnest money cash deposit we made in connection with the ResCap Acquisition. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 3 — Business Acquisitions for additional information.

Borrowings

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Borrowings

Note 15 — Borrowings

Match Funded Liabilities

Match funded liabilities are comprised of the following at December 31:



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)	2013	2012
Fixed Rate:
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	Sep. 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
Total fixed rate				—	—	1,648,277



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)		2013			2012
Variable Rate:
Advance Receivable Backed Notes (4)	1ML (5) + 285 bps	Apr. 2015	Apr. 2014	—		—			205,016
Advance Receivable Backed Notes Series 2012-ADV1 (6)	Commercial Paper (CP) rate + 225 or 335 bps	Dec. 2043	Dec. 2013	—		—			232,712
Advance Receivable Backed Notes Series 2012-ADV1 (7)	1ML + 250 bps	Jun. 2016	Jun. 2014	57,612		417,388			94,095
Advance Receivable Backed Note	1ML + 300 bps	Dec. 2015	Dec. 2014	16,789		33,211			49,138
2011-Servicing Advance Revolving Trust 1 (3)	1ML + 300 bps	May 2043	May 2013	—		—			204,633
2012-Servicing Advance Revolving Trust 2 (3)	1ML + 315 bps	Sep. 2043	Sep. 2013	—		—			22,003
2012-Servicing Advance Revolving Trust 3 (3)	1ML + 300 bps – 675 bps	Mar. 2044	Mar. 2014	—		—			40,626
2012-Homeward Agency Advance Funding Trust 2012-1 (3)	Cost of Funds + 300 bps	Jan. 2014	Jan. 2014	3,981		21,019			16,094
2012-Homeward DSF Advance Revolving Trust 2012-1 (3)	1ML + 450 bps	Feb. 2013	Feb. 2013	—		—			20,151
Advance Receivables Backed Notes, Series 2013-VF1, Class A (8)	1ML + 175 bps (9)	Oct. 2044	Oct. 2014	5,372		1,494,628			—
Advance Receivables Backed Notes, Series 2013-VF2, Class A (8)	1ML + 167 bps (10)	Oct. 2044	Oct. 2014	1,325		385,645			—
Advance Receivables Backed Notes, Series 2013-VF2, Class B (8)	1ML + 425 bps (11)	Oct. 2044	Oct. 2014	107		12,923			—
Total variable rate				85,186		2,364,814			884,468
				$	85,186	$	2,364,814		$	2,532,745

Weighted average interest rate						2.08		%	3.52		%

(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)	Borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. At December 31, 2013, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.

(3)

Advance facility assumed in the Homeward Acquisition. The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2, 2012-Servicing Advance Revolving Trust 3 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1.7 billion bridge facility which has an amortization date of August 14, 2013. The amortization date of the 2012-Homeward Agency Advance Funding Trust 2012-1 facility has been extended to March 3, 2014.


(4)	These notes were issued to finance the advances acquired from Bank of America, NA (BANA) in connection with the acquisition of MSRs. We repaid this facility in full in July 2013.


(5)	1-Month LIBOR (1ML) was 0.17% and 0.21% at December 31, 2013 and 2012, respectively.


(6)	These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs. We repaid this facility in full in October 2013.


(7)	The borrowing capacity under this facility was increased to $475.0 million in November 2013.

(8)

These notes were issued in connection with the OneWest MSR Transaction. On February 3, 2014, the maximum borrowing capacity on the 2013-VF2 notes was increased by $100.0 million to a total of $500.0 million. On February 28, 2014, the maximum borrowing capacity under the 2013-VF1 note is scheduled to decline by $250.0 million to a total of $1.3 billion. On February 28, 2014 we negotiated a deferral for a month of the scheduled decrease in the maximum borrowing capacity under the 2013-VF1 Note.


(9)	The interest margin on these notes increases to 200 bps on July 15, 2014, to 225 bps on August 15, 2014 and 250 bps on September 15, 2014.


(10)	The interest margin on these notes increases to 191 bps on July 15, 2014, to 215 bps on August 15, 2014 and 238 bps on September 15, 2014.


(11)	The interest margin on these notes increases to 486 bps on July 15, 2014, to 546 bps on August 15, 2014 and 607 bps on September 15, 2014.

Financing Liabilities

Financing liabilities are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	2013		2012
Servicing:
Financing liability – MSRs pledged	MSRs	(1)	(1)	$	651,060	$	303,705
Financing liability – MSRs pledged	MSRs	(2)	(2)	—		2,603
				651,060		306,308

Lending:
Financing liability - MSRs pledged	MSRs	(2)	(2)	17,593		—
HMBS-related borrowings (3)	Loans held for investment	1ML + 220 bps	(3)	615,576		—
				633,169		—

				$	1,284,229	$	306,308

(1)

The HLSS Transaction financing liabilities have no contractual maturity but are amortized over the estimated life of the transferred Rights to MSRs using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. For purposes of applying the interest method, the balance of the liability is reduced each month based on the change in the present value of the estimated future cash flows underlying the related MSRs. See Note 4 — Sales of Advances and MSRs for additional information regarding the HLSS Transactions.


(2)	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.


(3)	Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS. The beneficial interests have no maturity dates, and the borrowings mature as the related loans are repaid. See Note 2 — Securitizations and Variable Interest Entities for additional information.

Other Secured Borrowings

Other secured borrowings are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	Available Borrowing Capacity		December 31, 2013			December 31, 2012
Servicing:
SSTL (1)	(1)	1ML + 550 bps with a LIBOR floor of 150 bps (1)	Sep. 2016	$	—	$	—		314,229
SSTL (2)	(2)	1-Month Euro-dollar rate + 375 bps with a Eurodollar floor of 125 bps (2)	Feb. 2018	—		1,290,250			—
Senior unsecured term loan (3)		1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps	Mar. 2017	—		—			75,000
Promissory note (4)	MSRs	1ML + 350 bps	May 2017	—		15,529			18,466
Repurchase agreement	Loans held for sale (LHFS)	1ML + 200 - 345 bps	Apr. 2014	82,493		17,507			—
				82,493		1,323,286			407,695

Lending:
Master repurchase agreement (5)	LHFS	1ML + 175 bps	Mar. 2014	194,341		105,659			88,122
Participation agreement (6)	LHFS	N/A	May 2014	—		81,268			58,938
Master repurchase agreement (7)	LHFS	1ML + 175 - 275 bps	Jul. 2014	58,010		91,990			133,995
Master repurchase agreement (8)	LHFS	1ML + 175 - 200 bps	Sep. 2014	210,164		89,836			107,020
Master repurchase agreement	LHFS	1ML + 275bps	Jul. 2014	48,025		51,975			—
Mortgage warehouse agreement	LHFS	1ML + 275 bps; floor of 350 bps	Jun. 2014	25,708		34,292			—
				536,248		455,020			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	—		4,712			2,833
				618,741		1,783,018			798,603
Discount (1)(2)				—		(5,349		)	(8,232		)
				$	618,741	$	1,777,669		$	790,371

Weighted average interest rate						4.86		%	4.49		%


(1)	In February 2013, we repaid this loan in full and wrote off the remaining discount as part of the loss on extinguishment.

(2)

On February 15, 2013, we entered into a new SSTL facility agreement and borrowed $1.3 billion that was used principally to fund the ResCap Acquisition and repay the balance of the previous SSTL. The loan was issued with an original issue discount of $6.5 million that we are amortizing over the term of the loan. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $3.3 million. In addition, we are generally required to use 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, and 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. However, for assets sales that are part of an HLSS Transaction, we have the option, within 180 days, either to invest the net cash proceeds in MSRs or related assets, such as advances, or to repay loan principal. The borrowings are secured by a first priority security interest in substantially all of the assets of Ocwen. 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 in effect on such day, (ii) the federal funds rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 2.75% and a base rate floor of 2.25% or (b) the one month Eurodollar rate, plus a margin of 3.75% with a one month Eurodollar floor of 1.25%. To date we have elected option (b) to determine the interest rate.

On September 23, 2013, we entered into Amendment No. 1 to the Senior Secured Term Loan Facility Agreement and Amendment No. 1 to the related Pledge and Security Agreement. These amendments:


•	permit repurchases of all of the Preferred Shares, which may be converted to common stock prior to repurchase, and up to $1.5 billion of common stock, subject, in each case, to pro forma financial covenant compliance;


•	eliminate the dollar cap on Junior Indebtedness (as defined in the SSTL) but retain the requirement for any such issuance to be subject to pro forma covenant compliance;


•	include a value for whole loans (i.e., loans held for sale) in collateral value for purposes of calculating the loan-to-value ratio and include specified deferred servicing fees and the fair value of specified mortgage servicing rights in net worth for purposes of calculating the ratio of consolidated total debt to consolidated tangible net worth; and


•	modify the applicable quarterly covenant levels for the corporate leverage ratio, ratio of consolidated total debt to consolidated tangible net worth and loan-to-value ratio.


(3)	Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note 26 — Related Party Transactions for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013.


(4)	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.


(5)	On March 19, 2013, the maturity date was extended to March 18, 2014 and the maximum borrowing capacity was increased from $125.0 million to $300.0 million.

(6)

Under this participation agreement, the lender provides financing on an uncommitted basis for $50.0 million to $90.0 million 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 sale accounting treatment and is accounted for as a secured borrowing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. In April 2013, we extended the maturity date of the participation agreement to May 31, 2014.


(7)	On August 3, 2013, we extended the maturity date of this facility to August 2, 2014.


(8)	On September 27, 2013, we extended the maturity date of this facility to September 26, 2014.


(9)	Repurchase agreement for Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $24.5 million at December 31, 2013. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral.

Covenants

Match funded liabilities 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; and


•	Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain borrowing agreements.

Financial covenants in our borrowing agreements require that we maintain consolidated tangible net worth, the most restrictive of which is $630.0 million plus 65% of quarterly net income, without adjustment for quarterly net losses, beginning with the three months ended December 31, 2012. The required consolidated tangible net worth in connection with this agreement was $863.7 million at December 31, 2013. Should we fail to be in compliance with these requirements, remedies include but are not limited to, at the option of the facility provider, termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting the agreement, and other legal remedies. Our lenders can waive their contractual rights in the event of a default. Our borrowing agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. We are in compliance with all of our qualitative and quantitative covenants at the date of these financial statements.

Maturities of Borrowings

Aggregate long-term borrowings by maturity date at December 31, 2013 are as follows:



	Expected Maturity Date (1) (2)
	2014		2015		2016		2017		2018		There- after		Total Balance		Fair Value
Match funded liabilities (3)	$	2,364,814	$	—	$	—	$	—	$	—	$	—	$	2,364,814	$	2,364,814
Other secured borrowings (3)	488,929		27,219		11,690		11,690		1,238,141		—		1,777,669		1,762,876
	$	2,853,743	$	27,219	$	11,690	$	11,690	$	1,238,141	$	—	$	4,142,483	$	4,127,690


(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 $651.1 million recorded in connection with sales of MSRs and Rights to MSRs accounted for as financings and $615.6 million recorded in connection with the securitizations of HMBS that we record as financings. The MSR-related financing liabilities have no contractual maturity and are amortized over the life of the transferred Rights to MSRs. The HMBS-related financing liabilities have no contractual maturity and are amortized as the related loans are repaid. See Note 2 — Securitizations and Variable Interest Entities and Note 15 — Borrowings for additional information.


(3)	At December 31, 2013 all Match funded liabilities and all Other secured borrowings were variable rate obligations.

Other Liabilities

12 Months Ended

Dec. 31, 2013

Other Liabilities

Note 16 — Other Liabilities

Other liabilities were comprised of the following at December 31:



	2013		2012
Liability for indemnification obligations (1)	$	192,716	$	38,140
Accrued expenses	108,870		68,068
Due to related parties (2)	77,901		45,034
Liability for certain foreclosure matters (3)	66,948		13,430
Payable to servicing and subservicing investors (4)	33,501		9,973
Checks held for escheat	24,392		33,259
Liability for selected tax items (5)	27,273		22,702
Other	58,774		61,138
	$	590,375	$	291,744


(1)	The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 28 — Commitments and Contingencies for additional information.


(2)	See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.

(3)

We recognized $53.5 million of expense in Professional services during 2013 to establish the liability. We recognized the remaining $13.4 million of the liability as an adjustment to the initial purchase price allocation related to the Homeward Acquisition. We applied this measurement period adjustment retrospectively to our Consolidated Balance Sheet at December 31, 2012 with an offsetting increase in goodwill. See Note 28 — Commitments and Contingencies for additional information.


(4)	The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.


(5)	See Note 22 — Income Taxes for information on the liability for selected tax items.

Mezzanine Equity

12 Months Ended

Dec. 31, 2013

Temporary Equity [Abstract]

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.

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;

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. On May 9, 2013, Ocwen filed with the SEC a registration statement covering the resale of the Preferred Shares and the shares of common stock issuable upon conversion of the Preferred Shares.

We evaluated the Preferred Shares and determined that they 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.

We 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 appropriate. We also determined that the conversion option of the Preferred Shares represented a Beneficial Conversion Feature (BCF). We account for the BCF as a discount on the Preferred Shares and are amortizing the BCF as a deemed dividend through the second anniversary of the issued date, at which time Ocwen can first redeem the Preferred Shares.

The carrying value of our Preferred Shares reflects the following:



Initial issuance price on December 27, 2012	$	162,000
Discount for beneficial conversion feature	(8,688		)
Accretion of BCF discount (Deemed dividend)	60
Carrying value at December 31, 2012	153,372
Conversion of 100,000 Preferred Shares (1)	(100,000		)
Accretion of BCF discount (Deemed dividend) (2)	6,989
Carrying value at December 31, 2013	$	60,361


(1)	On September 23, 2013, holders elected to convert 100,000 of the Preferred Shares into 3,145,640 shares of common stock. See Note 26 — Related Party Transactions for additional information.


(2)	Accretion includes a $3.5 million accelerated write-off of the unamortized discount related to the 100,000 Preferred Shares converted on September 23, 2013.

Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Equity

Note 18 — Equity

Common Stock

On November 9, 2011, Ocwen 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 $354.4 million from the offering after deducting underwriting fees and other incremental costs directly related to the offering.

On March 28, 2012, we converted $56.4 million of the outstanding principal balance of the 3.25% Convertible Notes to 4,635,159 shares of Ocwen common stock and redeemed the remaining balance for cash.

On September 23, 2013, Ocwen paid $157.9 million to repurchase from the holders of our Preferred Shares all 3,145,640 shares of Ocwen common stock that were issued upon their election to convert 100,000 of the Preferred Shares into shares of Ocwen common stock. See Note 26 — Related Party Transactions for additional information.

On October 31, 2013, we announced that Ocwen’s Board of Directors had authorized a share repurchase program for an aggregate of up to $500.0 million of Ocwen’s issued and outstanding shares of common stock. Repurchases may be made in open market transactions at prevailing market prices or in privately negotiated transactions. Unless we amend the share repurchase program or repurchase the full $500.0 million amount by an earlier date, the share repurchase program will continue through July 2016. No assurances can be given as to the amount of shares, if any, that we may repurchase in any given period. The repurchase of shares issued in connection with the conversion of Preferred Shares is not considered to be part of this repurchase program and, therefore, does not count against the $500.0 million aggregate value limit. During the fourth quarter of 2013, we repurchased 1,125,707 shares of common stock in the open market under this program for a total purchase price of $60.0 million.

Accumulated Other Comprehensive Loss

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



	2013		2012
Unrealized losses on cash flow hedges	$	10,026	$	6,310
Other	125		131
	$	10,151	$	6,441

See Note 19 — Derivative Financial Instruments and Hedging Activities for the changes in the components of AOCL for the years ended December 31, 2013, 2012 and 2011.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2013

Derivative Financial Instruments and Hedging Activities

Note 19 — Derivative Financial Instruments and Hedging Activities

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 the notional balances of our holdings of derivatives during the year ended December 31, 2013:



	IRLCs			U.S. Treasury Futures			Forward MBS Trades			Interest Rate Caps			Interest Rate Swaps
Beginning notional balance	$	1,112,519		$	109,000		$	1,638,979		$	1,025,000		$	1,495,955
Additions	5,887,759			85,000			10,578,176			1,900,000			1,280,000
Amortization	(228,806		)	—			(33,372		)	(56,000		)	—
Maturities	(5,124,849		)	—			(4,156,314		)	—			(295,604		)
Terminations	(895,187		)	(194,000		)	(7,076,821		)	(1,001,000		)	(2,480,351		)
Ending notional balance	$	751,436		$	—		$	950,648		$	1,868,000		$	—

Fair value of derivative assets (liabilities) at:
December 31, 2013	$	8,433		$	—		$	6,905		$	442		$	—
December 31, 2012	$	5,781		$	(1,258	)	$	(1,719	)	$	168		$	(10,836	)

Maturity	Jan. 2014 - Apr. 2014			N/A			Jan. 2014 - Feb. 2014			Nov. 2016			N/A

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 on amounts payable to our India subsidiaries. Our operations in Uruguay and the Philippines also expose us to foreign currency exchange rate risk, but we currently consider this risk to be insignificant.

Interest Rate Management

Match Funded Liabilities

We have previously 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. As disclosed in Note 5 — Fair Value, we terminated these interest rate swaps on May 31, 2013 primarily because the custodial account float balances, which earn a variable rate of interest, are well in excess of variable rate borrowings under advance facilities. The earnings on these deposits reduce our exposure to changes in interest rates. We have 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. Certain of these caps were terminated with the payoff and termination of the related financing facilities.

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 MBS trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward MBS trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market.

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, 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 loans 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. Effective April 1, 2013, we terminated our hedging program for fair value MSRs. Prior to their termination, we used 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.

We may 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 that we 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.

Asset Acquisitions

In March 2013, we entered into an interest rate swap to hedge the impact on cash flows of changes in the purchase price to be paid for MSRs acquired in the Ally MSR Transaction. This purchase was forecasted to occur in stages with the purchase price subject to adjustment based on changes in the 10-year swap rate between the date of the MSR purchase agreement and the date of each closing. We entered into an interest rate swap with a notional amount sufficient to yield changes in the fair value of the interest rate swap in response to changes in the swap rate that were essentially equal to and offsetting to changes in the purchase price of the MSRs. We designated the swap as a hedge for accounting purposes. We completed the transaction in April 2013 and terminated the swap agreement at the same time. See Note 9 — Mortgage Servicing for additional information regarding the Ally MSR Transaction.

The following summarizes our open derivative positions at December 31, 2013 and the gains (losses) on those derivatives for the year then ended. None of the derivatives was designated as a hedge for accounting purposes at December 31, 2013:



Purpose	Expiration Date	Notional Amount		Fair Value (1)		Gains / (Losses)		Consolidated Statement of Operations Caption
Hedge the effect of changes in interest rates on interest expense on borrowings
Interest rate caps
Hedge the effect of changes in 1ML on advance funding facilities	2016	$	1,868,000	$	442	$	56	Other, net

Interest rate risk of mortgage loans held for sale and of IRLCs
Forward MBS trades	2014	950,648		6,905		42,732		Gain on loans held for sale, net

IRLCs	2014	751,436		8,433		523		Gain on loans held for sale, net
Total derivatives				$	15,780	$	43,311


(1)	Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.

Included in AOCL at December 31, 2013 and December 31, 2012, respectively, were $10.8 million and $9.9 million of deferred unrealized losses, before taxes of $0.7 million and $3.6 million, respectively, on the interest rate swaps that we designated as cash flow hedges. Changes in AOCL during the years ended December 31 were as follows:



	2013			2012			2011
Beginning balance	$	6,441		$	7,896		$	9,392

Additional net losses on cash flow hedges	12,363			8,315			615
Ineffectiveness of cash flow hedges reclassified to earnings	(657		)	41			(1,393		)
Losses on terminated hedging relationships amortized to earnings	(10,816		)	(10,592		)	(1,544		)
Net increase (decrease) in accumulated losses on cash flow hedges	890			(2,236		)	(2,322		)
(Increase) decrease in deferred taxes on accumulated losses on cash flow hedges	2,825			786			843
Increase (decrease) in accumulated losses on cash flow hedges, net of taxes	3,715			(1,450		)	(1,479		)

Other	(5		)	(5		)	(17		)

Ending balance	$	10,151		$	6,441		$	7,896

Amortization of accumulated losses on cash flow hedges from AOCL to Other income (expense), net is projected to be $1.6 million during 2014.

Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31:



	2013			2012			2011
Gains (losses) on economic hedges	(2,861		)	7,331			(4,488		)
Ineffectiveness of cash flow hedges	(657		)	41			(1,393		)
Write-off of losses in AOCL for a discontinued hedge relationship (1)	(10,816		)	(4,633		)	(1,545		)
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (2)	—			(5,958		)	—
	$	(14,334	)	$	(3,219	)	$	(7,426	)


(1)	Includes the write off in 2012 and 2013 of the remaining of unamortized losses when a borrowing under the related advance financing facility was repaid in full, and the facility was terminated.


(2)	See Note 4 — Sales of Advances and MSRs.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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Reference 20: 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))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Interest Income

12 Months Ended

Dec. 31, 2013

Interest Income

Note 20 — Interest Income

The following table presents the components of interest income for the years ended December 31:



	2013		2012		2011
Loans held for sale	$	18,563	$	2,946	$	2,291
Other	3,792		5,383		6,585
	$	22,355	$	8,329	$	8,876

Interest income that we expect to be collected on Loans Held for Investment - Reverse Mortgages, or HECMs, is included with net fair value gains in Other revenues. See Note 2 — Securitizations and Variable Interest Entities for additional information.

Interest Expense

12 Months Ended

Dec. 31, 2013

Basic and Diluted Earnings per Share

Interest Expense

Note 21 — Interest Expense

The following table presents the components of interest expense for the years ended December 31:



	2013		2012		2011
Match funded liabilities	$	75,979	$	122,292	$	93,051
Financing liabilities (1) (2)	246,241		54,710		—
Other secured borrowings	81,851		41,510		32,985
Debt securities:
3.25% Convertible Notes (3)	—		153		1,834
10.875% Capital Securities (4)	—		1,894		2,840
Other	8,771		2,896		2,060
	$	412,842	$	223,455	$	132,770


(1)	Includes interest expense of $245.8 million and $54.7 million in 2013 and 2012, respectively, related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below:



	2013		2012
Servicing fees collected on behalf of HLSS	$	633,377	$	117,789
Less: Subservicing fee retained by Ocwen	317,723		50,162
Net servicing fees remitted to HLSS	315,654		67,627
Less: Reduction in financing liability	69,812		12,917
Interest expense on HLSS financing liability	$	245,842	$	54,710


(2)	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues. See Note 2 — Securitizations and Variable Interest Entities for additional information.


(3)	We redeemed the remaining 3.25% Convertible Notes outstanding on March 28, 2012.


(4)	We redeemed the remaining 10.875% Capital Securities outstanding on August 31, 2012.

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 22 — Income Taxes

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



	2013		2012		2011
Domestic	$	76,957	$	176,075	$	118,708
Foreign	258,266		81,433		4,287
	$	335,223	$	257,508	$	122,995

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



	2013			2012			2011
Current:
Federal	$	58,507		$	10,621		$	13,894
State	14,691			(759		)	(195		)
Foreign	15,545			2,968			1,079
	88,743			12,830			14,778
Deferred:
Federal	(53,711		)	62,704			29,440
State	(4,325		)	(431		)	368
Foreign	(5,397		)	1,482			86
Provision for valuation allowance on deferred tax assets	15,764			—			—
	(47,669		)	63,755			29,894
Total	$	41,074		$	76,585		$	44,672

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:



	2013			2012			2011
Expected income tax expense at statutory rate	$	117,328		$	90,127		$	43,049
Differences between expected and actual income tax expense:
State tax, after Federal tax benefit	5,316			(1,184		)	254
Provision for liability for selected tax items	12,218			5,558			1,611
Permanent differences	(636		)	15			61
Foreign tax differential	(107,621		)	(17,816		)	(716		)
Provision for valuation allowance on deferred tax assets	15,764			—			—
Other	(1,295		)	(115		)	413
Actual income tax expense	$	41,074		$	76,585		$	44,672

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



	2013			2012
Deferred tax assets:
Net operating loss carryforward	$	35,370		$	16,068
Delinquent servicing fees	36,480			19,559
Accrued legal settlements	27,320			5,411
Reserve for servicing exposure	20,446			59,273
Partnership losses	11,085			11,036
Accrued incentive compensation	10,037			6,210
Accrued other liabilities	7,452			2,662
Bad debt and allowance for loan losses	6,397			6,551
Intangible asset amortization	4,728			2,070
Tax residuals and deferred income on tax residuals	3,963			4,175
Stock-based compensation expense	2,956			3,127
Foreign deferred assets	2,802			3,055
Accrued lease termination costs	1,085			1,887
Capital losses	843			665
Valuation allowance on real estate	767			386
Interest rate swaps	743			3,813
Net unrealized gains and losses on securities	—			2,702
Other	10,560			7,339
	183,034			155,989
Deferred tax liabilities:
Mortgage servicing rights amortization	50,632			56,265
Other	80			2,831
	50,712			59,096
	132,322			96,893
Valuation allowance	(15,764		)	—
Deferred tax assets, net	$	116,558		$	96,893

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 a valuation allowance of $15.8 million was necessary at December 31, 2013 but that no valuation allowance was necessary at December 31, 2012.

We recognized total interest and penalties of $2.0 million, $(0.1) million and $1.3 million in 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, accruals for interest and penalties were $3.6 million and $1.6 million, respectively. As of December 31, 2013 and 2012, we had a liability for selected tax items of $23.7 million and $21.1 million, respectively, all of which if recognized would affect the effective tax rate.

It is reasonably possible that there could be a change in the amount of our unrecognized tax benefits within the next 12 months due to activities of the Internal Revenue Service or other taxing authorities, including proposed assessments of additional tax, possible settlement of audit issues, or the expiration of applicable statutes of limitations. The range of the possible change in unrecognized tax benefits within the next 12 months cannot be reasonably estimated at December 31, 2013. However, we do not expect that change to have a material impact on our financial position or results of operations.

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, 2009 and 2010 are currently under examination. A reconciliation of the beginning and ending amount of the total liability for selected tax items which includes the accruals for interest and penalties is as follows for the years ended December 31:



	2013			2012
Balance at January 1	$	22,702		$	4,524
Additions based on tax positions related to current year	—			17,396
Additions for tax positions of prior years	4,944			875
Lapses in statutes of limitation	(373		)	(93		)
Balance at December 31	$	27,273		$	22,702

At December 31, 2013, we had U.S. NOL carryforwards of $100.4 million. These carryforwards will expire beginning 2019 through 2034. We believe that it is more likely than not that the benefit from certain federal NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $44.4 million on the deferred tax assets relating to these federal NOL carryforwards. If our assumptions change and we determine we will be able to realize these NOLs, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of December 31, 2013 will be accounted for as a reduction of income tax expense. We have no capital loss carryforwards.

We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. Determination of the amount of unrecognized deferred tax liability is not practicable because of the complexities associated with the hypothetical calculation. Should we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the U.S.

OMS is headquartered in Frederiksted, St. Croix, USVI and is located in a federally recognized economic development zone where qualified entities are eligible for certain benefits. We refer to these benefits as “EDC benefits” as they are granted by the USVI Economic Development Commission. We were approved as a Category IIA service business, and are therefore entitled to receive benefits that have a favorable impact on our effective tax rate. These benefits, among others, enable us to avail ourselves of a credit of 90% of income taxes on certain qualified income related to our servicing business. The exemption was granted as of October 1, 2012 and is available for a period of 30 years until expiration on September 30, 2042. The impact of these EDC benefits decreased foreign taxes by $103.1 million and $25.6 million for 2013 and 2012, respectively. The benefit of these EDC benefits on diluted EPS was $0.74 and $0.19 for 2013 and 2012, respectively.

Basic and Diluted Earnings per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Note 23 — 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 Ocwen, as adjusted to add back preferred stock dividends and interest expense net of income tax on the 3.25% 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 3.25% Convertible Notes. The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31:



	2013		2012		2011
Basic EPS:
Net income attributable to Ocwen common stockholders	$	282,129	$	180,778	$	78,331

Weighted average shares of common stock	135,678,088		133,912,643		104,507,055

Basic EPS	$	2.08	$	1.35	$	0.75

Diluted EPS:
Net income attributable to Ocwen common stockholders	$	282,129	$	180,778	$	78,331
Preferred stock dividends (1)	—		—		—
Interest expense on 3.25% Convertible Notes, net of income tax (2)	—		107		1,187
Adjusted net income attributable to Ocwen	$	282,129	$	180,885	$	79,518

Weighted average shares of common stock	135,678,088		133,912,643		104,507,055
Effect of dilutive elements:
Preferred Shares (1)	—		—		—
3.25% Convertible Notes (2)	—		1,008,891		4,637,224
Stock options	4,110,355		3,593,419		2,711,682
Common stock awards	12,063		6,326		—
Dilutive weighted average shares of common stock	139,800,506		138,521,279		111,855,961

Diluted EPS	$	2.02	$	1.31	$	0.71

Stock options excluded from the computation of diluted EPS:
Anti-dilutive(3)	—		143,125		27,031
Market-based(4)	547,500		1,535,000		468,750

(1)

The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. For purposes of computing diluted EPS, we assume the conversion of the Preferred Shares into shares of common stock unless the effect is anti-dilutive. Conversion of the Preferred Shares has not been assumed for 2013 and 2012 because the effect would have been antidilutive. There were no Preferred Shares outstanding during 2011.

(2)

Prior to the redemption of the 3.25% 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 3.25% Convertible Notes, net of income tax, were added back to net income. We assumed the conversion of the 3.25% Convertible Notes into shares of common stock unless the effect was anti-dilutive. On March 28, 2012, we issued 4,635,159 shares of common stock upon conversion of $56.4 million of the 3.25% 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 Ocwen’s stock price and an annualized rate of return to investors. See Note 24 — Employee Compensation and Benefit Plans for additional information regarding these market-condition options.

Employee Compensation and Benefit Plan

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Compensation and Benefit Plan

Note 24 — 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 $4.2 million, $0.4 million and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Annual Incentive Plan

The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan and the 2007 Equity Incentive Plan (the 2007 Equity Plan) are our primary incentive compensation plans for executives and other key employees. Under the terms of these plans, 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. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. We recognized $28.4 million, $7.2 million and $9.5 million of compensation expense during 2013, 2012 and 2011, respectively, related to annual incentive compensation awarded in cash.

The 2007 Equity Plan authorizes the grant of stock options, restricted stock or other equity-based awards to employees. At December 31, 2013, there were 8,851,599 shares of common stock remaining available for future issuance under the 2007 Equity Plan. Beginning in 2008, Ocwen has 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%

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:



	2013				2012				2011
	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	8,938,179		$	9.93	7,894,728		$	5.48	8,084,953		$	5.03
Granted (1)	50,000		51.70		2,160,000		23.92		545,000		13
Exercised (2)(3)	(790,568	)	5.35		(1,116,549	)	3.56		(735,225	)	6.01
Forfeited	(15,000	)	15.27		—		—		—		—
Outstanding at end of year(4)(5)	8,182,611		10.62		8,938,179		9.93		7,894,728		5.48
Exercisable at end of year (4)(5)(6)	5,733,864		6.53		5,569,432		5.04		4,947,228		4.91


(1)	Stock options granted in 2012 include 2,000,000 options 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 26 — Related Party Transactions 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 $35.3 million, $23.9 million and $4.1 million for 2013, 2012 and 2011, respectively.

(3)

In connection with the exercise of stock options during 2013, 2012 and 2011, employees delivered 138,553, 33,605 and 324,248 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 652,015, 1,082,944 and 410,977 net shares of stock were issued in 2013, 2012 and 2011, respectively, related to the exercise of stock options.


(4)	Excluding 547,500 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, 2013 was $351.0 million and $280.5 million, respectively. A total of 5,933,125 market-based options were outstanding at December 31, 2013, of which 3,960,002 were exercisable.


(5)	At December 31, 2013, the weighted average remaining contractual term of options outstanding and options exercisable was 5.7 years and 4.7 years, respectively.


(6)	The total fair value of the stock options that vested and became exercisable during 2013, 2012 and 2011, based on grant-date fair value, was $4.7 million, $2.2 million and $1.3 million, 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 2013 and 2012 stock option awards as of the grant dates:



	2013		2012		2011
	Black-Scholes	Binomial	Black-Scholes	Binomial	Black-Scholes	Binomial
Risk-free interest rate	2.32%	0.24 - 3.56%	1.20 – 1.60%	0.70% – 3.06%	1.57%	0.35% – 2.74%
Expected stock price volatility (1)	44%	33 - 44%	40% – 42%	6.87% – 42%	41%	30% – 41%
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years) (2)	6.50	4.50 - 5.75	6.50	4.50 – 6.50	6.50	4.25 – 5.75
Contractual life (in years)	—	10	—	10	—	10
Fair value	$24.32	$18.04 - 21.38	$6.49 – $10.48	$3.41 – $8.87	$5.51	$4.66 – $4.09


(1)	We estimate volatility based on the historical volatility of Ocwen’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:



	2013		2012		2011
Equity-based compensation expense:
Stock option awards	$	5,388	$	2,776	$	926
Stock awards	260		158		—
Excess tax benefit related to share-based awards	21,244		11,031		2,142

As of December 31, 2013, unrecognized compensation costs related to non-vested stock options amounted to $15.7 million, which will be recognized over a weighted-average remaining requisite service period of 2.01 years years.

Business Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Business Segment Reporting

Note 25 — 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. This segment is primarily comprised of our core residential servicing business. 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, retained the MSRs on the sale of residential mortgage loans or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Our residential servicing portfolio includes conventional, government insured and non-Agency loans. Non-Agency loans include subprime loans which represent residential loans that generally did not qualify under GSE guidelines or have subsequently become delinquent.

Lending. The Lending segment is focused on originating and purchasing conventional and government insured residential forward and reverse mortgage loans mainly through our correspondent lending arrangements. We also commenced a direct lending business to pursue refinancing opportunities from our existing portfolio, where permitted. The loans are typically sold shortly after origination into a liquid market on a servicing retained basis.

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 included the diversified fee-based businesses that we acquired as part of the Homeward and ResCap Acquisitions and subsequently sold to Altisource.

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, 2013
Revenue (1) (2)	$	1,895,921		$	120,899		$	22,092		$	(639	)	$	2,038,273
Operating expenses (1) (3)	1,096,084			98,194			107,188			(172		)	1,301,294
Income (loss) from operations	799,837			22,705			(85,096		)	(467		)	736,979
Other income (expense):
Interest income	1,599			16,295			4,461			—			22,355
Interest expense	(398,733		)	(13,508		)	(601		)	—			(412,842		)
Other (1) (2)	(28,292		)	10,132			6,424			467			(11,269		)
Other income (expense), net	(425,426		)	12,919			10,284			467			(401,756		)
Income (loss) before income taxes	$	374,411		$	35,624		$	(74,812	)	$	—		$	335,223

For the year ended December 31, 2012
Revenue (1) (2)	$	840,630		$	356		$	5,122		$	(905	)	$	845,203
Operating expenses (1) (3)	344,315			409			19,667			(484		)	363,907
Income (loss) from operations	496,315			(53		)	(14,545		)	(421		)	481,296
Other income (expense):
Interest income	9			309			8,011			—			8,329
Interest expense	(221,948		)	(514		)	(993		)	—			(223,455		)
Other (1) (2)	(13		)	—			(9,070		)	421			(8,662		)
Other income (expense), net	(221,952		)	(205		)	(2,052		)	421			(223,788		)
Income (loss) before income taxes	$	274,363		$	(258	)	$	(16,597	)	$	—		$	257,508

For the year ended December 31, 2011
Revenue (1) (2)	$	494,834		$	—		$	2,346		$	(1,289	)	$	495,891
Operating expenses (1) (3) (4)	231,201			—			8,971			(625		)	239,547
Income (loss) from operations	263,633			—			(6,625		)	(664		)	256,344
Other income (expense):
Interest income	110			—			8,766			—			8,876
Interest expense	(132,574		)	—			(196		)	—			(132,770		)
Other (1) (2)	4,711			—			(14,830		)	664			(9,455		)
Other income (expense), net	(127,753		)	—			(6,260		)	664			(133,349		)
Income (loss) before income taxes	$	135,880		$	—		$	(12,885	)	$	—		$	122,995



	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
Total Assets
December 31, 2013	$	6,241,757	$	1,195,812	$	436,201	$	—	$	7,873,770

December 31, 2012	$	4,575,489	$	476,434	$	634,039	$	—	$	5,685,962

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


(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, 2013:
Depreciation expense	$	13,525	$	320	$	10,400	$	24,245
Amortization of MSRs	282,526		255		—		282,781
Amortization of debt discount	1,412		—		—		1,412
Amortization of debt issuance costs – SSTL	4,395		—		—		4,395

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


(4)	Operating expenses for 2011 include non-recurring transaction-related expenses associated with the Litton Acquisition of $50.3 million recorded in the Servicing segment.

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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Related Party Transactions

Related Party Transactions

12 Months Ended

Dec. 31, 2013

Note 26 — 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 of Altisource, HLSS, Altisource Residential Corporation (Residential) and Altisource Asset Management Corporation (AAMC). As a result, he has obligations to Ocwen as well as to Altisource, HLSS, Residential and AAMC. As of December 31, 2013, Mr. Erbey owned or controlled approximately 13% of the common stock of Ocwen, approximately 26% of the common stock of Altisource, approximately 1% of the common stock of HLSS, approximately 27% of the common stock of AAMC and approximately 5% of the common stock of Residential. At December 31, 2013, Mr. Erbey also held 4,620,498 options to purchase Ocwen common stock, of which 2,845,498 were exercisable, and he held 873,501 options to purchase Altisource common stock, 291,167 options to purchase Residential common stock and 87,350 options to purchase AAMC common stock, all of which were exercisable.

During 2012, Mr. Erbey 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 $6.5 million. 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

On August 10, 2009, Ocwen completed the distribution of its Ocwen Solutions (OS) line of business (the Separation) via the spin-off of Altisource, a separate publicly traded company. OS consisted primarily of Ocwen’s former unsecured collections business, residential fee-based loan processing businesses and technology platforms. Since the spin-off, our relationship has been governed by a number of agreements that set forth the terms of our business with Altisource.

On August 10, 2012 and November 1, 2012, OMS and Ocwen each entered into a Support Services Agreement with Altisource setting forth certain services that we and Altisource will provide to each other, in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, strategic planning and compliance. These Support Services Agreements run through September 2018 and

October 2017, respectively, with automatic one-year renewals thereafter.

On August 10, 2009 and October 1, 2012, Ocwen and OMS each entered into a Services Agreement, a Technology Products Services Agreement, an Intellectual Property Agreement and a Data Center and Disaster Recovery Services Agreement. Under the Services Agreements, Altisource provides various business process outsourcing services, such as valuation services and property preservation and inspection services, among other things. Altisource provides certain technology products and support services under the Technology Products Services Agreements and the Data Center and Disaster Recovery Services Agreements. These agreements expire August 31, 2025 In addition, under a Data Access and Services Agreement, we agreed to make available to Altisource certain data from Ocwen’s servicing portfolio in exchange for a per asset fee.

In connection with our March 29 and April 12, 2013, sales of the Homeward and ResCap diversified fee-based businesses to Altisource, we agreed to expand the terms of our business with Altisource to apply to the services Altisource provides as they relate to the Homeward and ResCap businesses and further (i) to establish Altisource as the exclusive provider, except as prohibited by law, of such services as they relate to the Homeward and ResCap businesses and (ii) not to establish similar fee-based businesses (or establish relationships with other companies engaged in the line of similar fee-based businesses) that would directly or indirectly compete with diversified fee-based businesses as they relate to the Homeward and ResCap businesses. In addition, we agreed that Ocwen and all of its subsidiaries and affiliates will market and promote the utilization of Altisource’s services to their various third-party relationships. Finally, we and Altisource agreed to use commercially reasonable best efforts to ensure that the loans associated with the ResCap business are boarded onto Altisource’s mortgage servicing platform (REALServicing). The cash consideration paid by Altisource to Ocwen in connection with the sales of the Homeward and ResCap diversified fee-based businesses totaled $87.0 million and $128.8 million, respectively. See Note 3 — Business Acquisitions for additional information..Certain services provided by Altisource under these contracts are charged to the borrower and/or 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 include renewal provisions. 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 agreements discussed above, we entered into an agreement in 2010 to sublease from Altisource our principal executive office space in Atlanta, Georgia. We have also sold certain equipment to Altisource that we acquired in connection with business acquisitions we completed in recent years. 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.

As disclosed in Note 3 — Business Acquisitions, on March 31, 2013, we acquired from Altisource its 49% equity interest in Correspondent One, a company that facilitates the purchase of conventional and government insured residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2012, Ocwen had invested $13.4 million 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 $75.0 million. The proceeds of this loan were used to fund a portion of the Homeward Acquisition. Borrowings under the Unsecured Loan Agreement bore 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. We recognized interest expense of $0.8 million and $0.1 million on this loan in 2013 and 2012, respectively. In February 2013, we repaid this loan in full.

Relationship with HLSS

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.

As disclosed in Note 4 — Sales of Advances and MSRs, Ocwen has sold to HLSS certain Rights to MSRs and related servicing advances. We also entered into a subservicing agreement with HLSS on February 10, 2012, which was amended on October 1, 2012, under which OLS will subservice the MSRs after legal ownership of the MSRs has been transferred to HLSS. On February 4, 2014, we amended various sale and servicing supplements that we had entered into with HLSS. See Note 30 — Subsequent Events for additional information.

Relationship with Residential

On December 21, 2012, we entered into a 15-year servicing agreement with Altisource Residential, L.P., the operating partnership of Residential, pursuant to which Ocwen will service residential mortgage loans acquired by Residential and provide loan modification, assisted deed-in-lieu, assisted deed-for-lease and other loss mitigation programs.

On February 14, 2013, we sold a pool of non-performing residential mortgage loans to Altisource Residential, L.P. pursuant to a Master Mortgage Loan Sale Agreement. The aggregate purchase price for the pool of loans was $64.4 million and the gain recognized by Ocwen on the sale was not significant.

Relationship with AAMC

On December 31, 2013, we entered into a support services agreement with AAMC pursuant to which we will provide business development, analytical and consulting and administrative services to AAMC. The support services agreement may be terminated by either party with a month’s prior notice.

On December 11, 2012, Mr. Erbey received 52,589 shares of AAMC restricted stock pursuant to the Altisource Asset Management Corporation 2012 Special Equity Incentive Plan and a Special Restricted Stock Award Agreement in his capacity as Chairman of the Board of AAMC and Altisource. On December 11, 2012, Ronald M. Faris, our President and Chief Executive Officer and a director of Ocwen, received 29,216 shares of AAMC restricted stock pursuant to the Altisource Asset Management Corporation 2012 Special Equity Incentive Plan and a Special Restricted Stock Award Agreement, in connection with the services he provides AAMC through his employment with Ocwen.

Relationship with Former Owner of Homeward

As consideration for the Homeward Acquisition, Ocwen paid an aggregate purchase price of $765.7 million, of which $603.7 million was paid in cash and $162.0 million was paid in 162,000 Preferred Shares issued to certain private equity funds managed by WL Ross & Co. LLC (the Funds), that pay a dividend of 3.75% per annum on a quarterly basis. Each Preferred Share, together with any accrued and unpaid dividends, may be converted at the option of the holder into shares of Ocwen common stock at a conversion price equal to $31.79. Mr. Ross is the Chairman and Chief Executive Officer of WL Ross & Co. LLC and Invesco Private Capital, Inc. and the managing member of El Vedado, LLC, each of which directly or indirectly controls or manages the Funds. Mr. Ross became a director of Ocwen in March 2013. On September 23, 2013, the Funds exercised their right to convert 100,000 of the Preferred Shares into 3,145,640 of common stock. On the same date, Ocwen repurchased the shares of common stock from the Funds for $157.9 million.

The following table summarizes revenues and expenses related to the various service agreements with Altisource and its subsidiaries and HLSS for the years ended December 31 and net amounts receivable or payable:



	2013		2012		2011
Revenues and Expenses:
Altisource:
Revenues	$	22,739	$	16,532	$	12,242
Expenses	55,119		28,987		23,226
HLSS:
Revenues	$	631	$	195	$	—
Expenses	2,018		2,432		—
AAMC
Revenues	$	1,238	$	—	$	—
Residential
Revenues	$	2,436	$	—	$	—



	December 31, 2013			December 31, 2012
Net Receivable (Payable)
Altisource	$	(3,843	)	$	(5,971	)
HLSS	(59,505		)	(25,524		)
AAMC	943			—
Residential	50			—
	$	(62,355	)	$	(31,495	)

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.

Commitments and Contingencies Disclosure [Abstract]

Regulatory Requirements

12 Months Ended

Dec. 31, 2013

Brokers and Dealers [Abstract]

Regulatory Requirements

Note 27 — 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 Securities and Exchange Commission (SEC) and various state agencies that license, audit and conduct examinations of our mortgage servicing, origination and collection activities. 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 mortgage servicing, origination and collection activities. In addition, the GSEs and their regulator, the Federal Housing Finance Authority (FHFA), Ginnie Mae, various investors, non-Agency securitization trustees and others also subject us to periodic reviews and audits.

As a result of the current regulatory environment, we have faced and expect to continue to face increased regulatory and public scrutiny as well as stricter and more comprehensive regulation of our business. We continue to work diligently to assess and understand the implications of the regulatory environment in which we operate and the regulatory changes that we are facing. We devote substantial resources to regulatory compliance, while, at the same time, striving to meet the needs and expectations of our customers and clients.

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, the 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 foreclosure laws. These statutes apply to loan origination, 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. The recent trend among federal, state and local lawmakers and regulators has been toward increasing laws, regulations and investigative proceedings with regard to residential real estate lenders and servicers.

On July 21, 2010, the Dodd-Frank Act was signed into law by President Obama. The Dodd-Frank Act constitutes a sweeping reform of the regulation and supervision of financial institutions, as well as the regulation of derivatives, capital market activities and consumer financial services. Many provisions of the Dodd-Frank Act must be implemented through rule making by the appropriate federal regulatory agency and will take effect over several years. The ultimate impact of the Dodd-Frank Act and its effects on our business will, therefore, not be fully known for an extended period of time.

The Dodd-Frank Act is extensive and significant legislation that, among other things:


•	creates an inter-agency body that is responsible for monitoring the activities of the financial system and recommending a framework for substantially increased regulation of large interconnected financial services firms;


•	creates a liquidation framework for the resolution of certain bank holding companies and other large and interconnected nonbank financial companies;


•	strengthens the regulatory oversight of securities and capital markets activities by the SEC; and


•	creates the CFPB, a new federal entity responsible for regulating consumer financial services.

The CFPB directly affects the regulation of residential mortgage servicing in a number of ways. First, the CFPB has rule making authority with respect to many of the federal consumer protection laws applicable to mortgage servicers, including TILA and RESPA. Second, the CFPB has supervision, examination and enforcement authority over consumer financial products and services offered by certain non-depository institutions and large insured depository institutions. The CFPB’s jurisdiction includes those persons originating, brokering or servicing residential mortgage loans and those persons performing loan modification or foreclosure relief services in connection with such loans. Accordingly, we are subject to supervision, examination and enforcement by the CFPB.

On January 17, 2013, the CFPB issued a set of new rules under the Dodd-Frank Act that will require mortgage servicers to (i) warn borrowers before any interest rate adjustments on their mortgages and provide alternatives for borrowers to consider, (ii) provide monthly mortgage statements that explicitly breakdown principal, interest, fees, escrow and due dates, (iii) provide options for avoiding lender-placed (or “forced-placed”) insurance, (iv) provide early outreach to borrowers in danger of default regarding options to avoid foreclosure, (v) provide that payments be credited to borrower accounts the day they are received, (vi) require that borrower account records be kept current, (vii) provide borrowers with increased accessibility to servicing staff and records and (viii) investigate errors within 30 days and improve staff accessibility to consumers, among other things. The new rules took effect on January 10, 2014 and have caused us to modify servicing processes and procedures and to incur additional costs in connection therewith.

Title XIV of the Dodd-Frank Act contains the Mortgage Reform and Anti-Predatory Lending Act (Mortgage Act). The Mortgage Act imposes a number of additional requirements on servicers of residential mortgage loans, such as OLS, by amending certain existing provisions and adding new sections to TILA and RESPA. The penalties for noncompliance with TILA and RESPA are also significantly increased by the Mortgage Act and could lead to an increase in lawsuits against mortgage servicers.

The Mortgage Act prevents servicers of residential mortgage loans from taking certain actions, including the following:


•	force-placing insurance, unless there is a reasonable belief that the borrower has failed to comply with a contractual requirement to maintain insurance;


•	charging a fee for responding to a valid qualified written request;


•	failing to take timely action to respond to the borrower’s request to correct errors related to payment, payoff amounts, or avoiding foreclosure;


•	failing to respond within ten (10) business days of a request from the borrower to provide contact information about the owner or assignee of loan; and


•	failing to return an escrow balance or provide a credit within twenty (20) business days of a residential mortgage loan being paid off by the borrower.

In addition to these restrictions, the Mortgage Act imposes certain new requirements and/or shortens the existing response time for servicers of residential mortgage loans. These new requirements include the following:


•	acknowledging receipt of a qualified written request under RESPA within five (5) business days and providing a final response within thirty (30) business days;


•	promptly crediting mortgage payments received from the borrower on the date of receipt except where payment does not conform to previously established requirements; and


•	sending an accurate payoff statement within a reasonable period of time but in no case more than seven (7) business days after receipt of a written request from the borrower.

We expect to continue to incur substantial ongoing operational and system costs in order to comply with these new laws and regulations. Furthermore, there may be additional federal or state laws enacted that place additional obligations on servicers and originators of residential mortgage loans.

There are a number of foreign laws and regulations that are applicable to our operations in India, Uruguay and The Philippines, 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 shareholders, our corporate entities, the public and the government in these countries. Non-compliance with the laws and regulations of India, Uruguay or The Philippines could result in (i) restrictions on our operations in these counties, (ii) fines, penalties or sanctions or (iii) reputational damage.

Capital Requirements

Our Homeward, OLS and Liberty subsidiaries are licensed to originate and/or service forward and reverse mortgage loans in the jurisdictions in which they operate. The licensed entities are subject to minimum net worth requirements in connection with these licenses. These minimum net worth requirements are unique to each state and type of license. Failure to meet these minimum capital requirements can result in the initiation of certain mandatory actions by federal, state, and foreign agencies that could have a material effect on our results of operations and financial condition. The most restrictive of these requirements is based on the outstanding UPB of our owned and subserviced portfolio and was $862.8 million at December 31, 2013. Our licensed subsidiaries were in compliance with all of their capital requirements at December 31, 2013.

Homeward, OLS and Liberty are also parties to seller/servicer agreements with one or more of the GSEs, FHA, VA and Ginnie Mae. These seller/servicer agreements contain financial covenants that include capital requirements related to tangible net worth, as defined in each agreement, as well as extensive requirements regarding servicing, selling and other matters. To the extent that these requirements are not met, the counterparty may, at its option, utilize a variety of remedies ranging from sanctions or suspension to termination of the seller/servicer agreements, which would prohibit future originations or securitizations of forward or reverse mortgage loans or being an approved seller/servicer. We were in compliance with these net worth requirements at December 31, 2013,

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Note 28 — Commitments and Contingencies

Litigation Contingencies

We are subject to various 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.

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 January 18, 2012, OLS received a subpoena from the 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 a Monitor to oversee our compliance with an Agreement on Servicing Practices. The Monitor began its work in 2013, and we continue to cooperate with the Monitor. We devote substantial resources to regulatory compliance, and we incur, and expect to continue to incur, significant ongoing costs with respect to compliance in connection with the Agreement on Servicing Practices and the work of the Monitor. In early February 2014, the NY DFS requested that Ocwen put an indefinite hold on an acquisition from Wells Fargo Bank, N.A. (Wells Fargo) of MSRs and related servicing advances relating to a portfolio of approximately 184,000 loans with a UPB of approximately $39.0 billion (see Note 30 — Subsequent Events below). The NY DFS expressed an interest in evaluating further our ability to handle more servicing. We have agreed to place the transaction on indefinite hold. We are cooperating with the NY DFS on this matter.

On February 9, 2012, HUD, attorneys general representing 49 states and the District of Columbia and other agencies announced a $25 billion settlement (the National Mortgage Settlement) with the five largest mortgage servicers – Bank of America Corporation, JP Morgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. (formerly GMAC) – regarding servicing and foreclosure issues. In addition to assessing monetary penalties which are required to be used to provide financial relief to borrowers (including refinancing and principal write-downs), the National Mortgage Settlement requires that these servicers implement changes in how they service mortgage loans, handle foreclosures and provide information to bankruptcy courts. As part of the ResCap Acquisition, OLS is 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.

On December 19, 2013, we reached an agreement, which was subject to court approval, involving the CFPB and various state attorneys general and other state agencies that regulate the mortgage servicing industry (Regulators). On February 26, 2014, the United States District Court for the District of Columbia entered a consent judgment approving the agreement. The agreement has four key elements:


•	A commitment by Ocwen to service loans in accordance with specified servicing guidelines and to be subject to oversight by an independent national monitor for three years. Ocwen is presently subject to substantially the same guidelines and oversight with respect to the portion of its servicing portfolio acquired from ResCap in early 2013.

•

A payment of $127.3 million, which includes a fixed amount for administrative expenses, to a consumer relief fund to be disbursed by an independent administrator to eligible borrowers. Pursuant to indemnification and loss sharing provisions of applicable acquisition documents, approximately half of this consumer relief fund payment is to be funded by the former owners of certain servicing portfolios previously acquired by Ocwen and integrated into Ocwen’s servicing platform. Ocwen established a reserve of $66.9 million with respect to its portion of the payment into the consumer relief fund. This reserve is expected to cover all of Ocwen’s portion of the consumer relief fund payment.

•

A commitment by Ocwen to continue its principal forgiveness modification programs to delinquent and underwater borrowers, including underwater borrowers at imminent risk of default, in an aggregate amount of at least $2 billion over three years. These and all of Ocwen’s other loan modifications are designed to be sustainable for homeowners while providing a net present value for loan investors that is superior to that of foreclosure. Principal forgiveness as part of a loan modification is determined on a case-by-case basis in accordance with the applicable servicing agreement. Principal forgiveness does not involve an expense to Ocwen other than the operating expense incurred in arranging the modification, which is part of Ocwen’s role as loan servicer.


•	Ocwen and the former owners of certain of the acquired servicing portfolios will receive from the Regulators comprehensive releases, subject to certain exceptions, from liability with respect to residential mortgage servicing, modification and foreclosure practices.

One or more of the foregoing regulatory actions or our failure to comply with the commitments we have made with respect to such regulatory actions or other regulatory actions in the future against us of a similar or different nature could cause us to incur fines, penalties, settlement costs, damages, legal fees or other charges in material amounts or could impose additional requirements or restrictions on our activities. Any of these occurrences could increase our operating expenses and reduce our revenues, hamper our ability to grow or otherwise materially and adversely affect our business, reputation, financial condition and results of operations.

In addition to these matters, Ocwen receives periodic inquires, both formal and informal in nature, from various federal and state agencies as part of those agencies’ oversight of our mortgage servicing, origination and collection activities. Such ongoing inquiries, including those into servicer foreclosure processes, could result in additional actions by state or federal governmental bodies, regulators or the courts with respect to our mortgage servicing, origination and collection activities and 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 could result in 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 has been retired and is not subject to put-back risk. There is one remaining securitization with an original UPB of approximately $200.0 million 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 $36.0 million at December 31, 2013, and the outstanding balance of the notes was $35.9 million. 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, Homeward assumed the origination representations and warranties even though it did not originate the loans. While the language in the purchase contracts varies, 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 were 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. Ocwen has entered into tolling agreements with respect to its role as servicer for a very small number of securitizations and may enter into additional tolling agreements in the future. 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.

We have exposure to representation, warranty and indemnification obligations because of our lending, sales and securitization activities and our acquisitions to the extent we assume one or more of these obligations and in connection with our servicing practices. At December 31, 2013, we had provided or assumed representation and warranty obligations in connection with $89.1 billion of UPB, covering both forward and reverse mortgage loans. At December 31, 2013, we had outstanding representation and warranty repurchase demands of $158.8 million UPB (753 loans). We review each demand and monitor through resolution, primarily through rescission, loan repurchase or make-whole payment.

The following table presents the changes in our liability for indemnification obligations for the year ended December 31, 2013, including representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines:



Balance at December 31, 2012	$	38,140
Provision for representation and warranty obligations	18,154
New production reserves	1,325
Obligations assumed in connection with MSR and servicing business acquisitions	190,658
Charge-offs and other (1)	(55,561		)
Balance at December 31, 2013	$	192,716


(1)	Includes principal and interest losses realized in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any.

We believe that it is reasonably possible that losses beyond amounts currently recorded for potential representation and warranty obligations and related claims described above could occur, and such losses could have an adverse impact on our results of operations, financial condition or cash flows. However, based on currently available information, we are unable to estimate a range of reasonably possible losses above amounts that have been recorded at December 31, 2013.

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:



2014	$	19,798
2015	20,087
2016	18,331
2017	11,249
2018	4,453
Thereafter	—
Total minimum lease payments	$	73,918

In connection with business acquisitions we completed in recent years, we assumed the obligation for the lease agreements associated with certain 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.

We sublease from Altisource 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 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, 2013. Rent expense for 2013, 2012 and 2011 was $27.4 million, $14.7 million and $5.6 million, respectively.

Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

Note 29 — Quarterly Results of Operations (Unaudited)



	Quarters Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Revenue	$	555,955		$	531,240		$	544,812		$	406,266
Operating expenses (1)	340,876			346,260			371,508			242,650
Income from operations	215,079			184,980			173,304			163,616
Other expense	(94,976		)	(108,705		)	(85,794		)	(112,281		)
Income before income taxes	120,103			76,275			87,510			51,335
Income tax expense	14,824			9,273			10,789			6,188
Net income	105,279			67,002			76,721			45,147
Preferred stock dividends	(581		)	(1,446		)	(1,519		)	(1,485		)
Deemed dividend related to beneficial conversion feature of preferred stock	(416		)	(4,401		)	(1,086		)	(1,086		)
Net income attributable to Ocwen common stockholders	$	104,282		$	61,155		$	74,116		$	42,576

Earnings per share attributable to Ocwen common stockholders
Basic	$	0.77		$	0.45		$	0.55		$	0.31
Diluted	$	0.74		$	0.44		$	0.53		$	0.31



	Quarters Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Revenue	$	236,590		$	232,700		$	211,381		$	164,532
Operating expenses	99,097			92,793			85,904			86,113
Income from operations	137,493			139,907			125,477			78,419
Other expense	(61,014		)	(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
Preferred stock dividends	(85		)	—			—			—
Deemed dividend related to beneficial conversion feature of preferred stock	(60		)	—			—			—
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


(1)	Operating expenses for the second quarter of 2013 include a $52.8 million charge recorded in connection with an agreement with the CFPB, various state attorneys general and other agencies regarding certain foreclosure-related matters. See Note 28 — Commitments and Contingencies for additional information regarding this agreement.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2013
Subsequent Events [Abstract]
Subsequent Events	Note 30 — Subsequent Events On January 22, 2014, we announced that we had entered into an agreement to acquire MSRs and related servicing advances from Wells Fargo. The portfolio of approximately 184,000 loans with a UPB of approximately $39.0 billion consists primarily of non-Agency residential mortgage loans. We recorded a $10.0 million good faith deposit at December 31, 2013 in connection with this transaction. An additional $15.0 million was deposited in escrow in January 2014. The transaction is subject to receipt of various approvals and consents and other customary closing requirements. In early February 2014, the NY DFS requested that Ocwen put an indefinite hold on the acquisition from Wells Fargo. The NY DFS expressed an interest in evaluating further our ability to handle more servicing. We have agreed to place the transaction on indefinite hold. We are cooperating with the NY DFS on this matter. On February 4, 2014, we finalized amendments to various sale supplements and servicing supplements entered into in connection with a Master Servicing Rights Purchase Agreement (MSRPA) dated as of October 1, 2012, and Master Subservicing Agreement dated as of October 1, 2012, with HLSS. Each of these amendments is effective as of October 1, 2013. In connection with the amendments to the supplements, if a mortgage loan included in a sale of Rights to MSRs is refinanced by us, the excess servicing fees and rights to MSRs related to the new mortgage loan are transferred to HLSS effective with the prepayment of the refinanced mortgage loan, subject to certain thresholds. The preceding applies only after the aggregate UPB of refinanced mortgage loans refinanced by us exceeds 0.5% of the aggregate UPB of all rights to MSRs sold to HLSS under the sale supplements measured as the current UPB of rights to MSRs as of the beginning of each calendar year plus the weighted average UPB of rights to MSRs sold during the year. In addition, the interest rate applied to Excess Servicing Advances, as defined in the MSRPA, was changed to one-month LIBOR plus 275 basis points. On February 26, 2014, we issued $123.6 million of Ocwen Asset Servicing Income Series (OASIS), Series 2014-1 Notes (Notes) secured by Ocwen-owned MSRs relating to Freddie Mac mortgages of approximately $11.8 billion UPB (such mortgages, the reference pool). Noteholders are entitled to receive a monthly payment amount equal to the sum of: a) the designated servicing fee amount (21 basis points of the UPB of the reference pool); b) any termination payment amounts; c) any excess refinance amounts; and d) the note redemption amounts, each as defined in the indenture supplement for the Notes. The Notes have a final stated maturity of February 2028. This transaction is recorded as a financing and mitigates our match-funding risk as a result of prepayments as the noteholders’ payments vary over the life of the Notes based on the duration of the underlying Freddie Mac MSRs. As disclosed in Note 28 — Commitments and Contingencies, on December 19, 2013, we reached an agreement, which was subject to court approval, involving the CFPB and various state attorneys general and other state agencies that regulate the mortgage servicing industry. On February 26, 2014, the United States District Court for the District of Columbia entered a consent judgment approving the agreement.

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

We are subject to licensing requirements in the jurisdictions in which we originate and/or service mortgage loans.

We originate, purchase, sell and securitize conventional and government insured forward and reverse mortgages. The GSEs or Ginnie Mae guarantee these securitizations.

Consolidation and Basis of Presentation

Principles of Consolidation

We have eliminated all significant intercompany accounts and transactions in consolidation.

Foreign Currency Translation

Reclassifications

We made the following reclassifications within the Total assets and Total liabilities sections of the Consolidated Balance Sheets at December 31, 2012:


•	Combined Loans held for sale, at fair value of $426.5 million (previously reported as a separate line item) and Loans held for sale, at the lower of cost or fair value of $82.9 million (previously included in Other assets) in a new line item, Loans held for sale;


•	Combined Mortgage servicing rights, at amortized cost of $676.7 million (previously reported as a separate line item) and Mortgage servicing rights, at fair value of $85.2 million (previously reported as a separate line item) in a new line item, Mortgage servicing rights; and


•	Reclassified Financing liabilities of $306.3 million from Lines of credit and other secured borrowings to a new line item.

Use of Estimates and Assumptions

Mortgage Servicing Rights

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

Advances and Match Funded Advances

Loans Held for Sale

Transfers of Financial Assets

In the case of transfers of MSRs and Rights to MSRs where we retain the right to subservice, we defer the related gain or loss and amortize the balance over the life of the subservicing agreement.

Representation, Warranty and Indemnification Obligations

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
Buildings	40 years
Leasehold improvements	Term of the lease not to exceed useful life
Furniture and fixtures	5 years
Office equipment	5 years

Litigation

Derivatives Financial Instruments

Derivative Financial Instruments

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

Convertible Preferred Stock

Stock-based Compensation

Stock-Based Compensation

Income Taxes

Basic and Diluted Earnings per Share

Recent Accounting Pronouncements

Recently Adopted Accounting StandardsBalance Sheet – Disclosures about Offsetting Assets and Liabilities (ASU 2011-11 and ASU 2013-01)As of January 1, 2013, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2011-11, which amends Accounting Standards Codification (ASC) 210, Balance Sheet. This ASU contains new disclosure requirements regarding the nature of an entity’s netting arrangements, including rights of offset, associated with its financial instruments and derivative instruments. In addition, we adopted ASU 2013-1, which clarified the scope of ASU 2011-11. The new disclosures will give financial statement users information about both gross and net exposures. ASU 2011-11 and ASU 2013-01 are required to be applied retrospectively. Since the guidance relates only to disclosure of information, the adoption did not have a material impact on our consolidated financial condition or results of operations.Comprehensive Income – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02)As of January 1, 2013, we adopted ASU 2013-02, which amends ASC 220, Comprehensive Income. The ASU contains new requirements related to the presentation and disclosure of items that are reclassified out of accumulated other comprehensive income. The new requirements provide financial statement users a more comprehensive view of items that are reclassified out of accumulated other comprehensive income. ASU 2013-02 is required to be applied prospectively. Since the guidance related only to presentation and disclosure of information, the adoption did not have a material impact on our consolidated financial condition or results of operations.Derivatives and Hedging – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2013-10)As of July 17, 2013, we adopted ASU 2013-10, which amends ASC 815, Derivatives and Hedging. The ASU established the Fed Funds Effective Swap Rate, or Overnight Index Swap Rate (OIS), as an additional U.S. benchmark interest rate for hedge accounting purposes. Prior to the ASU’s addition of the OIS as a benchmark rate, only interest rates on direct Treasury obligations and the London Interbank Offered Rate (LIBOR) swap rate were considered to be such benchmarks. The amendments of the update also remove the restriction on using different benchmark rates for similar hedges. The amendment is effective prospectively when entering into new or redesignating existing hedging relationships on or after July 17, 2013. Adoption did not have a material impact on our consolidated financial condition or results of operations.Recently Issued Accounting StandardsLiabilities – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-04)In February 2013, the FASB issued ASU 2013-04. This ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. It further requires that an entity disclose the nature and amount of the obligation as well as other information about those obligations. ASU 2013-04 will be effective for us on January 1, 2014 with retrospective application required. The adoption did not have a material impact on our consolidated financial condition or results of operations.Foreign Currency Matters – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05)In March 2013, the FASB issued ASU 2013-05. This ASU requires that a reporting entity that ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity release any related cumulative translation adjustment (CTA) into net income. The CTA should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For an equity method investment that is a foreign entity, a pro rata portion of the CTA should be released into net income upon a partial sale of such an investment. This ASU clarifies that the sale of an investment in a foreign entity includes both events that result in the loss of a controlling financial interest in a foreign entity, irrespective of any retained investment, and events that result in step acquisition under which an acquirer obtains control of an acquiree in which it held an equity interest immediately before the acquisition date. Under these circumstances, the CTA should be released into net income upon their occurrence. ASU 2013-05 will be effective for us prospectively on January 1, 2014. Adoption of this standard on January 1, 2014 did not have a material impact on our consolidated financial condition or results of operations.Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward ExistsIn July 2013, the FASB issued ASU 2013-11. This ASU generally requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward, a similar tax loss or a tax credit carryforward. The guidance further includes an exception that if a NOL carryforward, a similar tax loss, or a tax credit carryforward is not available to settle any additional income taxes that would result from the disallowance of a tax position at the reporting date or the tax law of the applicable jurisdiction does not require the entity to use them and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. ASU 2013-11 will be effective for us on January 1, 2014. The amendment should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption and retrospective application are permitted. Adoption of this guidance did not have a material impact on our consolidated financial condition or results of operations.

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Property and Equipment Useful Lives

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
Buildings	40 years
Leasehold improvements	Term of the lease not to exceed useful life
Furniture and fixtures	5 years
Office equipment	5 years

Securitization and Variable Interests (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Cash Flows Related to Transfers Accounted for as Sales

The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers accounted for as sales that were outstanding during 2013:



Proceeds received from securitizations	$	7,871,481
Servicing fees collected	20,333
Purchases of previously transferred assets, net of claims reimbursed	(358		)
	$	7,891,456

Schedule of Assets That Relate to Continuing Involvement with Transferred Financial Assets with Servicing Rights and Maximum Exposure to Loss Including the Unpaid Principal Balance



	2013		2012
Carrying value of assets:
Mortgage servicing rights, at amortized cost	$	44,615	$	—
Mortgage servicing rights, at fair value	3,075		2,908
Advances and match funded advances	15,888		—
Unpaid principal balance of loans transferred (1)	5,641,277		238,010
Maximum exposure to loss	$	5,704,855	$	240,918


(1)	The UPB of the loans transferred is the maximum exposure to loss under our standard representations and warranties obligations.

Business Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Purchase Price Allocation

The following table summarizes the fair values of assets acquired and liabilities assumed as part of the ResCap, Homeward and Litton acquisitions:



	ResCap										Homeward									Litton
Purchase Price Allocation	February 15, 2013			Adjust- ments			Revised				December 27, 2012			Adjust- ments			Final			Final
Cash	$	—		$	—		$	—			$	79,511		$	—		$	79,511		$	23,791
Loans held for sale	—			—			—				558,721			—			558,721			—
MSRs(2)	393,891			(3,947		)	389,944			(1)	358,119			2,225			360,344			144,314
Advances and match funded advances (2)	1,622,348			124,853			1,747,201			(1)	2,266,882			—			2,266,882			2,468,137
Deferred tax assets	—			—			—				47,346			4,757			52,103			—
Premises and equipment	22,398			(5,975		)	16,423				16,803			(4,288		)	12,515			3,386
Debt service accounts	—			—			—				69,287			—			69,287			—
Investment in unconsolidated entities	—			—			—				5,485			—			5,485			—
Receivables and other assets (3)	2,989			—			2,989				56,886			(34,606		)	22,280			4,888
Match funded liabilities	—			—			—				(1,997,459		)	—			(1,997,459		)	—
Other borrowings	—			—			—				(864,969		)	—			(864,969		)	—
Other liabilities:																				—
Liability for indemnification obligations	(49,500		)	—			(49,500		)		(32,498		)	—			(32,498		)	—
Liability for certain foreclosure matters (4)	—			—			—				—			(13,430		)	(13,430		)	—
Accrued bonuses	—			—			—				(35,201		)	—			(35,201		)	—
Checks held for escheat	—			—			—				(16,418		)	(35		)	(16,453		)	(3,939		)
Other	(24,840		)	(284		)	(25,124		)		(47,614		)	(616		)	(48,230		)	(27,516		)
Total identifiable net assets	1,967,286			114,647			2,081,933				464,881			(45,993		)	418,888			2,613,061
Goodwill	204,743			3,033			207,776			(1)	300,843			45,093			345,936			57,430
Total consideration	2,172,029			117,680			2,289,709				765,724			(900		)	764,824			2,670,491
Debt repaid to seller at closing	—			—			—				—			—			—			(2,423,123		)
Base purchase price, as adjusted	$	2,172,029		$	117,680		$	2,289,709			$	765,724		$	(900	)	$	764,824		$	247,368


(1)	Initial fair value estimate.

(2)


(3)	The Homeward purchase price allocation has been revised to include a $34.6 million income tax liability, with an offsetting increase to goodwill.


(4)	See Note 16 — Other Liabilities for additional information.

Schedule of Restructuring Reserve Liability

The following table provides a reconciliation of the beginning and ending liability balances for these termination costs:



	Employee termination benefits			Lease termination costs			Total
Liability balance as at December 31, 2010	$	1,332		$	7,794		$	9,126
Additions charged to operations (1)	33,127			—			33,127
Amortization of discount	—			99			99
Payments	(29,296		)	(2,606		)	(31,902		)
Liability balance as at December 31, 2011	5,163			5,287			10,450
Additions charged to operations (1)	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	—			4,891			4,891
Additions charged to operations (1)	20,683			—			20,683
Amortization of discount	—			347			347
Payments	(15,867		)	(2,784		)	(18,651		)
Liability balance as at December 31, 2013 (2)	$	4,816		$	2,454		$	7,270

(1)


(2)	We expect the remaining liability for employee termination benefits at December 31, 2013 to be settled in 2014.

ResCap [Member]

Post-Acquisition Results of Operations



Revenues	$	684,935
Net income	$	16,424

Pro Forma Results of Operations

The following table presents supplemental pro forma information for Ocwen as if the ResCap Acquisition occurred on January 1, 2012. Pro forma adjustments include:


•	conforming servicing revenues to the revenue recognition policies followed by Ocwen;


•	conforming the accounting for MSRs to the valuation and amortization policies of Ocwen;


•	adjusting interest expense to eliminate the pre-acquisition interest expense of ResCap and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2012; and


•	reporting acquisition-related charges for professional services as if they had been incurred in 2012 rather than 2013.



	2013		2012
	(Unaudited)		(Unaudited)
Revenues	$	2,086,010	$	1,263,692
Net income	$	285,302	$	87,262

Post-Acquisition Results of Operations



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	$	254,051	$	163,647

Litton [Member]

Post-Acquisition Results of Operations



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

(1)

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
	(Unaudited)
Revenues	$	642,033
Net income (loss)	$	52,407

Sales of Advances and MSRs (Tables)

12 Months Ended

Dec. 31, 2013

Transfers and Servicing of Financial Assets [Abstract]

Summary of the Assets and Liabilities Sold to HLSS

The following table provides a summary of the assets and liabilities sold in connection with the HLSS Transactions during the years ended December 31:



	2013		2012
Sale of MSRs accounted for as a financing	$	417,167	316,607

Sale of advances and match funded advances	3,839,954		2,827,227

Sale of advance SPEs:
Match funded advances	—		413,374
Debt service account	—		14,786
Prepaid lender fees and debt issuance costs	—		5,422
Other prepaid expenses	—		1,928
Match funded liabilities	—		(358,335	)
Accrued interest payable and other accrued expenses	—		(841	)
Net assets of advance SPEs	—		76,334
Sales price, as adjusted	4,257,121		3,220,168
Amount due to (from) HLSS for post-closing adjustments at December 31	—		(1,410	)
Cash received on current year sales	4,257,121		3,218,758
Amount received from HLSS as settlement of post-closing adjustments outstanding at the end of the previous year	1,410		—
Total cash received	$	4,258,531	3,218,758

Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities

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:



		2013				2012
	Level	Carrying Value		Fair Value		Carrying Value			Fair Value
Financial assets:
Loans held for sale:
Loans held for sale, at fair value (a)	2	$	503,753	$	503,753	$	426,480		$	426,480
Loans held for sale, at lower of cost or fair value (b)	3	62,907		62,907		82,866			82,866
Total Loans held for sale		$	566,660	$	566,660	$	509,346		$	509,346
Loans held for investment - Reverse mortgages, at fair value (a)	3	$	618,018	$	618,018	$	—		$	—
Advances and match funded advances (c)	3	3,444,571		3,444,571		3,233,707			3,233,707
Receivables, net (c)	3	152,516		152,516		132,853			132,853

Financial liabilities:
Match funded liabilities (c)	3	$	2,364,814	$	2,364,814	$	2,532,745		$	2,533,278
Financing liabilities:
HMBS-related borrowings, at fair value (a)	3	$	615,576	$	615,576	$	—		$	—
Other (c)	3	668,653		668,653		306,308			306,308
Total Financing liabilities		$	1,284,229	$	1,284,229	$	306,308		$	306,308
Other secured borrowings:
Senior secured term loan (c)	3	$	1,284,901	$	1,270,108	$	305,997		$	310,822
Other (c)	3	492,768		492,768		484,374			484,374
Total Other secured borrowings		$	1,777,669	$	1,762,876	$	790,371		$	795,196

Derivative financial instruments (a):
IRLCs	2	$	8,433	$	8,433	$	5,781		$	5,781
Interest rate swaps	3	—		—		(10,836		)	(10,836		)
Forward MBS trades	1	6,905		6,905		(1,719		)	(1,719		)
U.S. Treasury futures	1	—		—		(1,258		)	(1,258		)
Interest rate caps	3	442		442		168			168

MSRs:
MSRs, at fair value (a)	3	$	116,029	$	116,029	$	85,213		$	85,213
MSRs, at amortized cost (c)	3	1,953,352		2,441,719		678,937			743,830
Total MSRs		$	2,069,381	$	2,557,748	$	764,150		$	829,043


(a)	Measured at fair value on a recurring basis.


(b)	Measured at fair value on a non-recurring basis.


(c)	Disclosed, but not carried, at fair value.

Reconciliation of Level 3 Assets

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



	Loans Held for Investment - Reverse Mortgages			HMBS-Related Borrowings			Derivative Financial Instruments, net			MSRs		Total
January 1, 2013	$	—		$	—		$	(10,668	)	$	85,213	$	74,545
Purchases, issuances, sales and settlements:
Purchases	10,251			(10,179		)	498			—		570
Issuances	609,555			(604,991		)	—			—		4,564
Sales	—			—			24,156			—		24,156
Settlements	(5,886		)	5,440			(1,241		)	—		(1,687		)
	613,920			(609,730		)	23,413			—		27,603
Total realized and unrealized gains and (losses): (1)
Included in earnings	4,098			(5,846		)	60			30,816		29,128
Included in Other comprehensive income (loss)	—			—			(12,363		)	—		(12,363		)
	4,098			(5,846		)	(12,303		)	30,816		16,765
Transfers in and / or out of Level 3	—			—			—			—		—
December 31, 2013	$	618,018		$	(615,576	)	$	442		$	116,029	$	118,913



	Derivative Financial Instruments, net			MSRs		Total
January 1, 2012	$	(16,676	)	$	—	$	(16,676	)
Purchases, issuances, sales and settlements:
Purchases	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) (1):
Included in earnings	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	—			—		—
December 31, 2012	$	(10,668	)	$	85,213	$	74,545



	Derivative Financial Instruments, net
January 1, 2011	$	(15,351	)
Purchases, issuances, sales and settlements:
Purchases	3,688
Settlements	85
	3,773
Total realized and unrealized gains and (losses):
Included in earnings	(5,881		)
Included in Other comprehensive income (loss)	783
	(5,098		)
Transfers in and / or out of Level 3	—
December 31, 2011	$	(16,676	)


(1)	Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1.2 million and $5.1 million, respectively.

Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2013

Components of Loans Receivable Held-for-sale

Loans held for sale are comprised of the following at December 31:



	2013		2012
Loans held for sale - fair value	$	503,753	$	426,480
Loans held for sale - lower of cost or fair value	62,907		82,866
	$	566,660	$	509,346

Schedule of Loans Held for Sale Fair Value

The following table summarizes the activity in the balance of Loans held for sale, at fair value, during the years ended December 31:



	2013			2012
Beginning balance	$	426,480		$	—
Originations and purchases (1)	8,106,742			670,147
Proceeds from sales	(7,999,235		)	(241,960		)
Gain (loss) on sale of loans (2)	(26,981		)	3,889
Other	(3,253		)	(5,596		)
Ending balance	$	503,753		$	426,480


(1)	Purchases include $60.0 million of reverse mortgages acquired in the Liberty Acquisition in 2013 and $558.7 million of forward mortgages acquired in the Homeward Acquisition in 2012. See Note 3 — Business Acquisitions for additional information.


(2)	Includes gains of $41.7 million recorded during 2013 to adjust Loans Held for investment - reverse mortgages to fair value.

Schedule of Loans Held For Sale At Lower Cost Or Fair Value, Activity

The following table summarizes the activity in the balance of Loans held for sale, at lower of cost or fair value, during the years ended December 31:



	2013			2012			2011
Beginning balance	$	82,866		$	20,633		$	25,803
Purchases	1,632,390			65,756			—
Proceeds from sales	(1,036,316		)	—			—
Principal payments	(432,423		)	(1,474		)	(1,468		)
Transfers to accounts receivable	(218,629		)	—			—
Transfers to real estate owned	(4,775		)	(999		)	(2,599		)
Gain on sale of loans	35,087			—			—
Decrease (increase) in valuation allowance	(10,644		)	568			354
Modifications, charge offs and other	15,351			(1,618		)	(1,457		)
Ending balance	$	62,907		$	82,866		$	20,633

Schedule of Gains on Loans Held for Sale

The following table summarizes the activity in Gain on loans held for sale, net, during the years ended December 31:



	2013			2012			2011
Gain (loss) on sales of loans (1)	$	82,518		$	6,797		$	(2	)
Change in fair value of IRLCs	523			2			—
Change in fair value of loans held for sale	(1,709		)	(5,462		)	—
Gain (loss) on economic hedge instruments	42,732			(1,075		)	—
Other	(2,370		)	(47		)	—
	$	121,694		$	215		$	(2	)


(1)	Includes gains of $74.8 million and $2.9 million for 2013 and 2012, respectively, representing the value assigned to MSRs retained on sales of loans. Also includes gains of $35.1 million recorded during 2013 on sales of repurchased loans into Ginnie Mae guaranteed securitizations.

Advances (Tables)

12 Months Ended

Dec. 31, 2013

Advances [Abstract]

Schedule of Advance Payments by Financial Institution on Foreclosed Properties

Advances, net, representing payments made on behalf of borrowers or on foreclosed properties, consisted of the following at December 31:



	2013		2012
Servicing:
Principal and interest	$	141,307	$	83,617
Taxes and insurance	477,039		51,447
Foreclosures, bankruptcy and other	269,409		41,296
	887,755		176,360
Corporate Items and Other	4,433		8,103
	$	892,188	$	184,463

Match funded advances on residential loans we service for others are comprised of the following at December 31:



	2013		2012
Principal and interest	$	1,497,649	$	1,577,808
Taxes and insurance	830,113		1,148,486
Foreclosures, bankruptcy, real estate and other	224,621		322,950
	$	2,552,383	$	3,049,244

Schedule of Activity in Advances

The following table summarizes the activity in advances for the years ended December 31:



	2013			2012
Beginning balance	$	184,463		$	103,591
Acquisitions (1)	734,794			118,360
Transfers to match funded advances	(142,286		)	(74,317		)
Sales of advances to HLSS	(200,749		)	—
New advances, net of collections	315,966			36,829
Other	—			—
Ending balance	$	892,188		$	184,463


(1)	Servicing advances acquired in connection with the acquisition of MSRs through business acquisitions and asset acquisitions. See Note 3 — Business Acquisitions and Note 9 — Mortgage Servicing for additional information.

Match Funded Advance (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Advance Payments by Financial Institution on Foreclosed Properties

Advances, net, representing payments made on behalf of borrowers or on foreclosed properties, consisted of the following at December 31:



	2013		2012
Servicing:
Principal and interest	$	141,307	$	83,617
Taxes and insurance	477,039		51,447
Foreclosures, bankruptcy and other	269,409		41,296
	887,755		176,360
Corporate Items and Other	4,433		8,103
	$	892,188	$	184,463

Match funded advances on residential loans we service for others are comprised of the following at December 31:



	2013		2012
Principal and interest	$	1,497,649	$	1,577,808
Taxes and insurance	830,113		1,148,486
Foreclosures, bankruptcy, real estate and other	224,621		322,950
	$	2,552,383	$	3,049,244

Schedule of Activity In Match Funded Advances [Table Text Block]

The following table summarizes the activity in match funded advances for the years ended December 31:



	2013			2012
Beginning balance	$	3,049,244		$	3,629,911
Acquisitions (1)	3,589,773			4,068,959
Transfers from advances (2)	142,286			74,317
Sales of advances to HLSS	(3,639,205		)	(3,240,601		)
Collections of pledged advances, net of new advances	(589,715		)	(1,483,342		)
Ending balance	$	2,552,383		$	3,049,244


(1)	Represents advances acquired in connection with business and asset acquisitions that were pledged to advance facilities at the date of acquisition.


(2)	Represents new advances initially classified as Advances at the date of payment and subsequently pledged to advance facilities.

(Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Activity Related to MSRs - Amortization Method

Schedule of MSRs

MSRs are comprised of the following at December 31:



	2013		2012
MSRs - Amortization method	$	1,953,352	$	678,937
MSRs - Fair value measurement method	116,029		85,213
	$	2,069,381	$	764,150

Servicing Assets. The following tables summarize the activity in the carrying value of amortization method servicing assets for the years ended December 31:



	2013			2012			2011
Beginning balance	$	678,937		$	293,152		$	193,985
Additions recognized in connection with business acquisitions:
ResCap Acquisition (1)	389,944			—			—
Liberty Acquisition (1)	2,840			—			—
Homeward Acquisition (1)	—			278,069			—
Litton Acquisition (1)	—			—			144,314
Additions recognized in connection with asset acquisitions:
Ally MSR Transaction (2)	683,787			—			—
OneWest MSR Transaction (3)	398,804			—			—
Greenpoint MSR Transaction (4)	33,647			—			—
Saxon	—			77,881			—
JPMorgan	—			23,445			—
Bank of America	—			64,569			—
Other	8,764			16,084			—
Additions recognized on the sale of mortgage loans	74,784			—			—
Sales (5)	(28,403		)	—			—
Servicing transfers and adjustments	(8,883		)	(4		)	—
Change in valuation allowance	2,375			(88		)	574
Amortization (6)	(283,244		)	(74,171		)	(45,721		)
Ending balance	$	1,953,352		$	678,937		$	293,152

Estimated fair value at end of year	$	2,441,719		$	743,830		$	340,015


(1)	See Note 3 — Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.

(2)

(3)


(4)	The acquired MSRs relate to mortgage loans with a UPB of approximately $6.3 billion and related servicing advance receivables of $422.1 million.


(5)	Cash proceeds from the sale were $34.8 million. These MSRs were sold with subservicing retained. The gain on the sale of $5.1 million has been deferred and will be recognized in earnings over the life of the subservicing contract.


(6)	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.

Schedule of Expected Amortization Expense

The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2013, is projected as follows over the next five years:



2014	$	326,583
2015	276,893
2016	234,207
2017	194,053
2018	160,804

Schedule of Activity Related to MSRs - Fair Value Measurement Method

The following table summarizes the activity related to fair value servicing assets for the years ended December 31:



	2013			2012
Beginning balance	$	85,213		$	—
Amount recognized in connection with the Homeward Acquisition (1)	—			82,275
Additions recognized on the sale of residential mortgage loans	—			2,908
Changes in fair value (2):
Changes in market value assumptions	44,199			30
Realization of cash flows and other changes	(13,383		)	—
Ending balance	$	116,029		$	85,213


(1)	See Note 3 — Business Acquisitions for additional information.


(2)	Changes in fair value are recognized in Servicing and origination expense in the Consolidated Statements of Operations.

Schedule of Estimated Change in the Fair Value of Our MSRs

The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of December 31, 2013 given hypothetical instantaneous parallel shifts in the yield curve:



	Adverse change in fair value
	10%			20%
Weighted average prepayment speeds	$	(7,995	)	$	(15,713	)
Discount rate (Option-adjusted spread)	$	(4,497	)	$	(8,659	)

Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced



	Residential		Commercial		Total
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
UPB at December 31, 2013
Servicing (1)	$	397,546,635	$	—	$	397,546,635
Subservicing	67,104,697		400,502		67,505,199
	$	464,651,332	$	400,502	$	465,051,834


(1)	Includes UPB of $175.1 billion and $79.4 billion at December 31, 2013 and 2012, respectively, for which the Rights to MSRs have been sold to HLSS.

Mortgage Loans on Real Estate, Geographic Location of Property

At December 31, 2013, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:



	Amount		Count
California	$	112,200,350	436,374
Florida	37,881,401		245,438
New York	30,548,742		129,364
Texas	20,838,925		203,035
New Jersey	20,336,702		97,207
Other	242,845,212		1,750,500
	$	464,651,332	2,861,918

Schedule of Components of Servicing and Subservicing Fees

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



	2013		2012		2011
Loan servicing and subservicing fees:
Servicing	$	1,246,882	$	535,415	$	313,997
Subservicing	146,605		45,713		27,404
	1,393,487		581,128		341,401
Home Affordable Modification Program (HAMP) fees	152,812		76,764		42,025
Late charges	115,826		69,281		38,557
Loan collection fees	31,022		15,960		11,223
Custodial accounts (float earnings)	5,332		3,749		2,105
Other	125,080		57,525		23,527
	$	1,823,559	$	804,407	$	458,838

Receivables (Tables)

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Schedule of Receivables

Receivables consisted of the following at the dates indicated:



	Receivables		Allowance for Losses			Net
December 31, 2013
Servicing (1)	$	124,537	$	(17,419	)	$	107,118
Income taxes receivable	6,369		—			6,369
Due from related parties (2)	14,553		—			14,553
Other (3)	24,579		(103		)	24,476
	$	170,038	$	(17,522	)	$	152,516

December 31, 2012
Servicing (1)	$	84,870	$	(1,647	)	$	83,223
Income taxes receivable	20,686		—			20,686
Due from related parties (2)	12,361		—			12,361
Other	18,577		(1,994		)	16,583
	$	136,494	$	(3,641	)	$	132,853

(1)


(2)	See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.


(3)	Includes $13.6 million related to probable losses expected to be indemnified under the terms of the Homeward merger agreement. See Note 3 — Business Acquisitions for additional information.

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Premises and Equipment

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



	2013			2012
Computer hardware and software	$	51,060		$	32,628
Buildings	12,926			—
Leasehold improvements	25,467			14,950
Furniture and fixtures	13,174			10,367
Office equipment and other	12,506			9,108
	115,133			67,053
Less accumulated depreciation and amortization	(61,347		)	(33,806		)
	$	53,786		$	33,247

Goodwill (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table provides a summary of activity in the carrying value of goodwill during the year ended December 31, 2013. See Note 3 — Business Acquisitions for additional information.



	Liberty Acquisition		ResCap Acquisition			Homeward Acquisition			Litton Acquisition		HomEq Acquisition		Total
Balance at December 31, 2012	$	—	$	—		$	345,936		$	57,430	$	12,810	$	416,176
Recognition of goodwill in connection with a business acquisition	2,963		207,776			—			—		—		210,739
Derecognition of goodwill in connection with the sale of a business	—		(128,750		)	(81,607		)	—		—		(210,357		)
Balance at December 31, 2013	$	2,963	$	79,026		$	264,329		$	57,430	$	12,810	416,558

Other Assets (Tables)

12 Months Ended

Dec. 31, 2013

Other Assets [Abstract]

Schedule of Other Assets

Other assets consisted of the following at December 31:



	2013		2012
Prepaid lender fees and debt issuance costs, net (1)	$	31,481	$	14,389
Prepaid income taxes (2)	20,585		23,112
Prepaid expenses	16,132		15,058
Derivatives, at fair value (3)	15,494		10,795
Investment in unconsolidated entities (4)	11,771		25,187
Purchase price deposit (5)	10,000		57,000
Other	21,850		45,171
	$	127,313	$	190,712


(1)	These balances relate to match funded liabilities and other secured borrowings. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.


(2)	During 2012 and 2013, we completed intra-entity transfers of certain MSRs. The deferred tax effects of these transactions have been recognized as prepaid income tax assets and are being amortized to Income tax expense over a 7-year period.


(3)	See Note 19 — Derivative Financial Instruments and Hedging Activities for additional information regarding derivatives.


(4)	The balance at December 31, 2012 includes an investment of $13.4 million in Correspondent One. As disclosed in Note 3 — Business Acquisitions, we increased our ownership from 49% to 100% on March 31, 2013. Effective on that date, we began including the accounts of Correspondent One in our consolidated financial statements and eliminated our current investment in consolidation.

(5)

Borrowings (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Schedule of Match Funded Liabilities

Match funded liabilities are comprised of the following at December 31:



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)	2013	2012
Fixed Rate:
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	Sep. 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
Total fixed rate				—	—	1,648,277



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)		2013			2012
Variable Rate:
Advance Receivable Backed Notes (4)	1ML (5) + 285 bps	Apr. 2015	Apr. 2014	—		—			205,016
Advance Receivable Backed Notes Series 2012-ADV1 (6)	Commercial Paper (CP) rate + 225 or 335 bps	Dec. 2043	Dec. 2013	—		—			232,712
Advance Receivable Backed Notes Series 2012-ADV1 (7)	1ML + 250 bps	Jun. 2016	Jun. 2014	57,612		417,388			94,095
Advance Receivable Backed Note	1ML + 300 bps	Dec. 2015	Dec. 2014	16,789		33,211			49,138
2011-Servicing Advance Revolving Trust 1 (3)	1ML + 300 bps	May 2043	May 2013	—		—			204,633
2012-Servicing Advance Revolving Trust 2 (3)	1ML + 315 bps	Sep. 2043	Sep. 2013	—		—			22,003
2012-Servicing Advance Revolving Trust 3 (3)	1ML + 300 bps – 675 bps	Mar. 2044	Mar. 2014	—		—			40,626
2012-Homeward Agency Advance Funding Trust 2012-1 (3)	Cost of Funds + 300 bps	Jan. 2014	Jan. 2014	3,981		21,019			16,094
2012-Homeward DSF Advance Revolving Trust 2012-1 (3)	1ML + 450 bps	Feb. 2013	Feb. 2013	—		—			20,151
Advance Receivables Backed Notes, Series 2013-VF1, Class A (8)	1ML + 175 bps (9)	Oct. 2044	Oct. 2014	5,372		1,494,628			—
Advance Receivables Backed Notes, Series 2013-VF2, Class A (8)	1ML + 167 bps (10)	Oct. 2044	Oct. 2014	1,325		385,645			—
Advance Receivables Backed Notes, Series 2013-VF2, Class B (8)	1ML + 425 bps (11)	Oct. 2044	Oct. 2014	107		12,923			—
Total variable rate				85,186		2,364,814			884,468
				$	85,186	$	2,364,814		$	2,532,745

Weighted average interest rate						2.08		%	3.52		%

(1)


(2)	Borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. At December 31, 2013, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.

(3)


(4)	These notes were issued to finance the advances acquired from Bank of America, NA (BANA) in connection with the acquisition of MSRs. We repaid this facility in full in July 2013.


(5)	1-Month LIBOR (1ML) was 0.17% and 0.21% at December 31, 2013 and 2012, respectively.


(6)	These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs. We repaid this facility in full in October 2013.


(7)	The borrowing capacity under this facility was increased to $475.0 million in November 2013.

(8)


(9)	The interest margin on these notes increases to 200 bps on July 15, 2014, to 225 bps on August 15, 2014 and 250 bps on September 15, 2014.


(10)	The interest margin on these notes increases to 191 bps on July 15, 2014, to 215 bps on August 15, 2014 and 238 bps on September 15, 2014.


(11)	The interest margin on these notes increases to 486 bps on July 15, 2014, to 546 bps on August 15, 2014 and 607 bps on September 15, 2014.

Schedule of Financing Liabilities

Financing liabilities are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	2013		2012
Servicing:
Financing liability – MSRs pledged	MSRs	(1)	(1)	$	651,060	$	303,705
Financing liability – MSRs pledged	MSRs	(2)	(2)	—		2,603
				651,060		306,308

Lending:
Financing liability - MSRs pledged	MSRs	(2)	(2)	17,593		—
HMBS-related borrowings (3)	Loans held for investment	1ML + 220 bps	(3)	615,576		—
				633,169		—

				$	1,284,229	$	306,308

(1)


(2)	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.


(3)	Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS. The beneficial interests have no maturity dates, and the borrowings mature as the related loans are repaid. See Note 2 — Securitizations and Variable Interest Entities for additional information.

Schedule of Other Secured Borrowings

Other secured borrowings are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	Available Borrowing Capacity		December 31, 2013			December 31, 2012
Servicing:
SSTL (1)	(1)	1ML + 550 bps with a LIBOR floor of 150 bps (1)	Sep. 2016	$	—	$	—		314,229
SSTL (2)	(2)	1-Month Euro-dollar rate + 375 bps with a Eurodollar floor of 125 bps (2)	Feb. 2018	—		1,290,250			—
Senior unsecured term loan (3)		1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps	Mar. 2017	—		—			75,000
Promissory note (4)	MSRs	1ML + 350 bps	May 2017	—		15,529			18,466
Repurchase agreement	Loans held for sale (LHFS)	1ML + 200 - 345 bps	Apr. 2014	82,493		17,507			—
				82,493		1,323,286			407,695

Lending:
Master repurchase agreement (5)	LHFS	1ML + 175 bps	Mar. 2014	194,341		105,659			88,122
Participation agreement (6)	LHFS	N/A	May 2014	—		81,268			58,938
Master repurchase agreement (7)	LHFS	1ML + 175 - 275 bps	Jul. 2014	58,010		91,990			133,995
Master repurchase agreement (8)	LHFS	1ML + 175 - 200 bps	Sep. 2014	210,164		89,836			107,020
Master repurchase agreement	LHFS	1ML + 275bps	Jul. 2014	48,025		51,975			—
Mortgage warehouse agreement	LHFS	1ML + 275 bps; floor of 350 bps	Jun. 2014	25,708		34,292			—
				536,248		455,020			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	—		4,712			2,833
				618,741		1,783,018			798,603
Discount (1)(2)				—		(5,349		)	(8,232		)
				$	618,741	$	1,777,669		$	790,371

Weighted average interest rate						4.86		%	4.49		%


(1)	In February 2013, we repaid this loan in full and wrote off the remaining discount as part of the loss on extinguishment.

(2)

On September 23, 2013, we entered into Amendment No. 1 to the Senior Secured Term Loan Facility Agreement and Amendment No. 1 to the related Pledge and Security Agreement. These amendments:


•	permit repurchases of all of the Preferred Shares, which may be converted to common stock prior to repurchase, and up to $1.5 billion of common stock, subject, in each case, to pro forma financial covenant compliance;


•	eliminate the dollar cap on Junior Indebtedness (as defined in the SSTL) but retain the requirement for any such issuance to be subject to pro forma covenant compliance;


•	include a value for whole loans (i.e., loans held for sale) in collateral value for purposes of calculating the loan-to-value ratio and include specified deferred servicing fees and the fair value of specified mortgage servicing rights in net worth for purposes of calculating the ratio of consolidated total debt to consolidated tangible net worth; and


•	modify the applicable quarterly covenant levels for the corporate leverage ratio, ratio of consolidated total debt to consolidated tangible net worth and loan-to-value ratio.


(3)	Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note 26 — Related Party Transactions for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013.


(4)	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.


(5)	On March 19, 2013, the maturity date was extended to March 18, 2014 and the maximum borrowing capacity was increased from $125.0 million to $300.0 million.

(6)


(7)	On August 3, 2013, we extended the maturity date of this facility to August 2, 2014.


(8)	On September 27, 2013, we extended the maturity date of this facility to September 26, 2014.


(9)	Repurchase agreement for Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $24.5 million at December 31, 2013. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral.

Schedule of Maturities of Borrowings

Aggregate long-term borrowings by maturity date at December 31, 2013 are as follows:



	Expected Maturity Date (1) (2)
	2014		2015		2016		2017		2018		There- after		Total Balance		Fair Value
Match funded liabilities (3)	$	2,364,814	$	—	$	—	$	—	$	—	$	—	$	2,364,814	$	2,364,814
Other secured borrowings (3)	488,929		27,219		11,690		11,690		1,238,141		—		1,777,669		1,762,876
	$	2,853,743	$	27,219	$	11,690	$	11,690	$	1,238,141	$	—	$	4,142,483	$	4,127,690


(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)


(3)	At December 31, 2013 all Match funded liabilities and all Other secured borrowings were variable rate obligations.

Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities



	2013		2012
Liability for indemnification obligations (1)	$	192,716	$	38,140
Accrued expenses	108,870		68,068
Due to related parties (2)	77,901		45,034
Liability for certain foreclosure matters (3)	66,948		13,430
Payable to servicing and subservicing investors (4)	33,501		9,973
Checks held for escheat	24,392		33,259
Liability for selected tax items (5)	27,273		22,702
Other	58,774		61,138
	$	590,375	$	291,744


(1)	The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 28 — Commitments and Contingencies for additional information.


(2)	See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.

(3)


(4)	The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.


(5)	See Note 22 — Income Taxes for information on the liability for selected tax items.

Mezzanine Equity (Tables)

12 Months Ended

Dec. 31, 2013

Temporary Equity [Abstract]

Schedule of Carrying Value of Preferred Shares

The carrying value of our Preferred Shares reflects the following:



Initial issuance price on December 27, 2012	$	162,000
Discount for beneficial conversion feature	(8,688		)
Accretion of BCF discount (Deemed dividend)	60
Carrying value at December 31, 2012	153,372
Conversion of 100,000 Preferred Shares (1)	(100,000		)
Accretion of BCF discount (Deemed dividend) (2)	6,989
Carrying value at December 31, 2013	$	60,361


(1)	On September 23, 2013, holders elected to convert 100,000 of the Preferred Shares into 3,145,640 shares of common stock. See Note 26 — Related Party Transactions for additional information.


(2)	Accretion includes a $3.5 million accelerated write-off of the unamortized discount related to the 100,000 Preferred Shares converted on September 23, 2013.

Equity (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss (AOCL), Net of Income Taxes

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



	2013		2012
Unrealized losses on cash flow hedges	$	10,026	$	6,310
Other	125		131
	$	10,151	$	6,441

Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Changes in Notional Balance of Holdings of Derivatives

The following table summarizes the changes in the notional balances of our holdings of derivatives during the year ended December 31, 2013:



	IRLCs			U.S. Treasury Futures			Forward MBS Trades			Interest Rate Caps			Interest Rate Swaps
Beginning notional balance	$	1,112,519		$	109,000		$	1,638,979		$	1,025,000		$	1,495,955
Additions	5,887,759			85,000			10,578,176			1,900,000			1,280,000
Amortization	(228,806		)	—			(33,372		)	(56,000		)	—
Maturities	(5,124,849		)	—			(4,156,314		)	—			(295,604		)
Terminations	(895,187		)	(194,000		)	(7,076,821		)	(1,001,000		)	(2,480,351		)
Ending notional balance	$	751,436		$	—		$	950,648		$	1,868,000		$	—

Fair value of derivative assets (liabilities) at:
December 31, 2013	$	8,433		$	—		$	6,905		$	442		$	—
December 31, 2012	$	5,781		$	(1,258	)	$	(1,719	)	$	168		$	(10,836	)

Maturity	Jan. 2014 - Apr. 2014			N/A			Jan. 2014 - Feb. 2014			Nov. 2016			N/A

Schedule of Gains (Losses) on Derivatives



Purpose	Expiration Date	Notional Amount		Fair Value (1)		Gains / (Losses)		Consolidated Statement of Operations Caption
Hedge the effect of changes in interest rates on interest expense on borrowings
Interest rate caps
Hedge the effect of changes in 1ML on advance funding facilities	2016	$	1,868,000	$	442	$	56	Other, net

Interest rate risk of mortgage loans held for sale and of IRLCs
Forward MBS trades	2014	950,648		6,905		42,732		Gain on loans held for sale, net

IRLCs	2014	751,436		8,433		523		Gain on loans held for sale, net
Total derivatives				$	15,780	$	43,311


(1)	Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.

Schedule of Changes in the Losses on Cash Flow Hedges Included in AOCL

Changes in AOCL during the years ended December 31 were as follows:



	2013			2012			2011
Beginning balance	$	6,441		$	7,896		$	9,392

Additional net losses on cash flow hedges	12,363			8,315			615
Ineffectiveness of cash flow hedges reclassified to earnings	(657		)	41			(1,393		)
Losses on terminated hedging relationships amortized to earnings	(10,816		)	(10,592		)	(1,544		)
Net increase (decrease) in accumulated losses on cash flow hedges	890			(2,236		)	(2,322		)
(Increase) decrease in deferred taxes on accumulated losses on cash flow hedges	2,825			786			843
Increase (decrease) in accumulated losses on cash flow hedges, net of taxes	3,715			(1,450		)	(1,479		)

Other	(5		)	(5		)	(17		)

Ending balance	$	10,151		$	6,441		$	7,896

Schedule of Statements of Operations Related to Derivative Financial Instruments

Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31:



	2013			2012			2011
Gains (losses) on economic hedges	(2,861		)	7,331			(4,488		)
Ineffectiveness of cash flow hedges	(657		)	41			(1,393		)
Write-off of losses in AOCL for a discontinued hedge relationship (1)	(10,816		)	(4,633		)	(1,545		)
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (2)	—			(5,958		)	—
	$	(14,334	)	$	(3,219	)	$	(7,426	)


(1)	Includes the write off in 2012 and 2013 of the remaining of unamortized losses when a borrowing under the related advance financing facility was repaid in full, and the facility was terminated.


(2)	See Note 4 — Sales of Advances and MSRs.

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 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 2: 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 3: 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 4: 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 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
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-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 7: 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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 11: 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=26873400&loc=d3e23780-122690

Interest Income (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Interest Income

The following table presents the components of interest income for the years ended December 31:



	2013		2012		2011
Loans held for sale	$	18,563	$	2,946	$	2,291
Other	3,792		5,383		6,585
	$	22,355	$	8,329	$	8,876

Interest Expense (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Interest Expense

The following table presents the components of interest expense for the years ended December 31:



	2013		2012		2011
Match funded liabilities	$	75,979	$	122,292	$	93,051
Financing liabilities (1) (2)	246,241		54,710		—
Other secured borrowings	81,851		41,510		32,985
Debt securities:
3.25% Convertible Notes (3)	—		153		1,834
10.875% Capital Securities (4)	—		1,894		2,840
Other	8,771		2,896		2,060
	$	412,842	$	223,455	$	132,770


(1)	Includes interest expense of $245.8 million and $54.7 million in 2013 and 2012, respectively, related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below:



	2013		2012
Servicing fees collected on behalf of HLSS	$	633,377	$	117,789
Less: Subservicing fee retained by Ocwen	317,723		50,162
Net servicing fees remitted to HLSS	315,654		67,627
Less: Reduction in financing liability	69,812		12,917
Interest expense on HLSS financing liability	$	245,842	$	54,710


(2)	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues. See Note 2 — Securitizations and Variable Interest Entities for additional information.


(3)	We redeemed the remaining 3.25% Convertible Notes outstanding on March 28, 2012.


(4)	We redeemed the remaining 10.875% Capital Securities outstanding on August 31, 2012.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income Before Taxes

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



	2013		2012		2011
Domestic	$	76,957	$	176,075	$	118,708
Foreign	258,266		81,433		4,287
	$	335,223	$	257,508	$	122,995

Schedule of Components of Income Tax Expense (Benefit)

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



	2013			2012			2011
Current:
Federal	$	58,507		$	10,621		$	13,894
State	14,691			(759		)	(195		)
Foreign	15,545			2,968			1,079
	88,743			12,830			14,778
Deferred:
Federal	(53,711		)	62,704			29,440
State	(4,325		)	(431		)	368
Foreign	(5,397		)	1,482			86
Provision for valuation allowance on deferred tax assets	15,764			—			—
	(47,669		)	63,755			29,894
Total	$	41,074		$	76,585		$	44,672

Schedule of Effective Income Tax Reconciliation

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:



	2013			2012			2011
Expected income tax expense at statutory rate	$	117,328		$	90,127		$	43,049
Differences between expected and actual income tax expense:
State tax, after Federal tax benefit	5,316			(1,184		)	254
Provision for liability for selected tax items	12,218			5,558			1,611
Permanent differences	(636		)	15			61
Foreign tax differential	(107,621		)	(17,816		)	(716		)
Provision for valuation allowance on deferred tax assets	15,764			—			—
Other	(1,295		)	(115		)	413
Actual income tax expense	$	41,074		$	76,585		$	44,672

Schedule of Deferred Tax Assets and Liabilities

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



	2013			2012
Deferred tax assets:
Net operating loss carryforward	$	35,370		$	16,068
Delinquent servicing fees	36,480			19,559
Accrued legal settlements	27,320			5,411
Reserve for servicing exposure	20,446			59,273
Partnership losses	11,085			11,036
Accrued incentive compensation	10,037			6,210
Accrued other liabilities	7,452			2,662
Bad debt and allowance for loan losses	6,397			6,551
Intangible asset amortization	4,728			2,070
Tax residuals and deferred income on tax residuals	3,963			4,175
Stock-based compensation expense	2,956			3,127
Foreign deferred assets	2,802			3,055
Accrued lease termination costs	1,085			1,887
Capital losses	843			665
Valuation allowance on real estate	767			386
Interest rate swaps	743			3,813
Net unrealized gains and losses on securities	—			2,702
Other	10,560			7,339
	183,034			155,989
Deferred tax liabilities:
Mortgage servicing rights amortization	50,632			56,265
Other	80			2,831
	50,712			59,096
	132,322			96,893
Valuation allowance	(15,764		)	—
Deferred tax assets, net	$	116,558		$	96,893

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the total liability for selected tax items which includes the accruals for interest and penalties is as follows for the years ended December 31:



	2013			2012
Balance at January 1	$	22,702		$	4,524
Additions based on tax positions related to current year	—			17,396
Additions for tax positions of prior years	4,944			875
Lapses in statutes of limitation	(373		)	(93		)
Balance at December 31	$	27,273		$	22,702

Basic and Diluted Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Schedule of Basic EPS to Diluted EPS

The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31:



	2013		2012		2011
Basic EPS:
Net income attributable to Ocwen common stockholders	$	282,129	$	180,778	$	78,331

Weighted average shares of common stock	135,678,088		133,912,643		104,507,055

Basic EPS	$	2.08	$	1.35	$	0.75

Diluted EPS:
Net income attributable to Ocwen common stockholders	$	282,129	$	180,778	$	78,331
Preferred stock dividends (1)	—		—		—
Interest expense on 3.25% Convertible Notes, net of income tax (2)	—		107		1,187
Adjusted net income attributable to Ocwen	$	282,129	$	180,885	$	79,518

Weighted average shares of common stock	135,678,088		133,912,643		104,507,055
Effect of dilutive elements:
Preferred Shares (1)	—		—		—
3.25% Convertible Notes (2)	—		1,008,891		4,637,224
Stock options	4,110,355		3,593,419		2,711,682
Common stock awards	12,063		6,326		—
Dilutive weighted average shares of common stock	139,800,506		138,521,279		111,855,961

Diluted EPS	$	2.02	$	1.31	$	0.71

Stock options excluded from the computation of diluted EPS:
Anti-dilutive(3)	—		143,125		27,031
Market-based(4)	547,500		1,535,000		468,750

(1)

(2)


(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 Ocwen’s stock price and an annualized rate of return to investors. See Note 24 — Employee Compensation and Benefit Plans for additional information regarding these market-condition options.

Employee Compensation and Benefit Plan (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Options Vesting

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%

Schedule of Stock Option Activity

Stock option activity for the years ended December 31:



	2013				2012				2011
	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	8,938,179		$	9.93	7,894,728		$	5.48	8,084,953		$	5.03
Granted (1)	50,000		51.70		2,160,000		23.92		545,000		13
Exercised (2)(3)	(790,568	)	5.35		(1,116,549	)	3.56		(735,225	)	6.01
Forfeited	(15,000	)	15.27		—		—		—		—
Outstanding at end of year(4)(5)	8,182,611		10.62		8,938,179		9.93		7,894,728		5.48
Exercisable at end of year (4)(5)(6)	5,733,864		6.53		5,569,432		5.04		4,947,228		4.91


(1)	Stock options granted in 2012 include 2,000,000 options 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 26 — Related Party Transactions 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 $35.3 million, $23.9 million and $4.1 million for 2013, 2012 and 2011, respectively.

(3)


(4)	Excluding 547,500 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, 2013 was $351.0 million and $280.5 million, respectively. A total of 5,933,125 market-based options were outstanding at December 31, 2013, of which 3,960,002 were exercisable.


(5)	At December 31, 2013, the weighted average remaining contractual term of options outstanding and options exercisable was 5.7 years and 4.7 years, respectively.


(6)	The total fair value of the stock options that vested and became exercisable during 2013, 2012 and 2011, based on grant-date fair value, was $4.7 million, $2.2 million and $1.3 million, respectively.

Schedule of Valuation Assumptions

The following assumptions were used to value the 2013 and 2012 stock option awards as of the grant dates:



	2013		2012		2011
	Black-Scholes	Binomial	Black-Scholes	Binomial	Black-Scholes	Binomial
Risk-free interest rate	2.32%	0.24 - 3.56%	1.20 – 1.60%	0.70% – 3.06%	1.57%	0.35% – 2.74%
Expected stock price volatility (1)	44%	33 - 44%	40% – 42%	6.87% – 42%	41%	30% – 41%
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years) (2)	6.50	4.50 - 5.75	6.50	4.50 – 6.50	6.50	4.25 – 5.75
Contractual life (in years)	—	10	—	10	—	10
Fair value	$24.32	$18.04 - 21.38	$6.49 – $10.48	$3.41 – $8.87	$5.51	$4.66 – $4.09


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

(2)

Schedule of Equity-based Compensation Expense

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:



	2013		2012		2011
Equity-based compensation expense:
Stock option awards	$	5,388	$	2,776	$	926
Stock awards	260		158		—
Excess tax benefit related to share-based awards	21,244		11,031		2,142

Business Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information

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, 2013
Revenue (1) (2)	$	1,895,921		$	120,899		$	22,092		$	(639	)	$	2,038,273
Operating expenses (1) (3)	1,096,084			98,194			107,188			(172		)	1,301,294
Income (loss) from operations	799,837			22,705			(85,096		)	(467		)	736,979
Other income (expense):
Interest income	1,599			16,295			4,461			—			22,355
Interest expense	(398,733		)	(13,508		)	(601		)	—			(412,842		)
Other (1) (2)	(28,292		)	10,132			6,424			467			(11,269		)
Other income (expense), net	(425,426		)	12,919			10,284			467			(401,756		)
Income (loss) before income taxes	$	374,411		$	35,624		$	(74,812	)	$	—		$	335,223

For the year ended December 31, 2012
Revenue (1) (2)	$	840,630		$	356		$	5,122		$	(905	)	$	845,203
Operating expenses (1) (3)	344,315			409			19,667			(484		)	363,907
Income (loss) from operations	496,315			(53		)	(14,545		)	(421		)	481,296
Other income (expense):
Interest income	9			309			8,011			—			8,329
Interest expense	(221,948		)	(514		)	(993		)	—			(223,455		)
Other (1) (2)	(13		)	—			(9,070		)	421			(8,662		)
Other income (expense), net	(221,952		)	(205		)	(2,052		)	421			(223,788		)
Income (loss) before income taxes	$	274,363		$	(258	)	$	(16,597	)	$	—		$	257,508

For the year ended December 31, 2011
Revenue (1) (2)	$	494,834		$	—		$	2,346		$	(1,289	)	$	495,891
Operating expenses (1) (3) (4)	231,201			—			8,971			(625		)	239,547
Income (loss) from operations	263,633			—			(6,625		)	(664		)	256,344
Other income (expense):
Interest income	110			—			8,766			—			8,876
Interest expense	(132,574		)	—			(196		)	—			(132,770		)
Other (1) (2)	4,711			—			(14,830		)	664			(9,455		)
Other income (expense), net	(127,753		)	—			(6,260		)	664			(133,349		)
Income (loss) before income taxes	$	135,880		$	—		$	(12,885	)	$	—		$	122,995



	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
Total Assets
December 31, 2013	$	6,241,757	$	1,195,812	$	436,201	$	—	$	7,873,770

December 31, 2012	$	4,575,489	$	476,434	$	634,039	$	—	$	5,685,962

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


(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)


(3)	Depreciation and amortization expense are as follows:

Depreciation and Amortization [Member]

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information



	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
For the year ended December 31, 2013:
Depreciation expense	$	13,525	$	320	$	10,400	$	24,245
Amortization of MSRs	282,526		255		—		282,781
Amortization of debt discount	1,412		—		—		1,412
Amortization of debt issuance costs – SSTL	4,395		—		—		4,395

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


(4)	Operating expenses for 2011 include non-recurring transaction-related expenses associated with the Litton Acquisition of $50.3 million recorded in the Servicing segment.

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Revenues and Expenses Related to Various Service Agreements



	2013		2012		2011
Revenues and Expenses:
Altisource:
Revenues	$	22,739	$	16,532	$	12,242
Expenses	55,119		28,987		23,226
HLSS:
Revenues	$	631	$	195	$	—
Expenses	2,018		2,432		—
AAMC
Revenues	$	1,238	$	—	$	—
Residential
Revenues	$	2,436	$	—	$	—

Schedule of Amounts Receivable or Payable



	December 31, 2013			December 31, 2012
Net Receivable (Payable)
Altisource	$	(3,843	)	$	(5,971	)
HLSS	(59,505		)	(25,524		)
AAMC	943			—
Residential	50			—
	$	(62,355	)	$	(31,495	)

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Indemnification Obligations



Balance at December 31, 2012	$	38,140
Provision for representation and warranty obligations	18,154
New production reserves	1,325
Obligations assumed in connection with MSR and servicing business acquisitions	190,658
Charge-offs and other (1)	(55,561		)
Balance at December 31, 2013	$	192,716


(1)	Includes principal and interest losses realized in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any.

Schedule of Future Minimum Rental Payments

Our annual aggregate minimum rental commitments under these leases are summarized as follows:



2014	$	19,798
2015	20,087
2016	18,331
2017	11,249
2018	4,453
Thereafter	—
Total minimum lease payments	$	73,918

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations (Unaudited)



	Quarters Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Revenue	$	555,955		$	531,240		$	544,812		$	406,266
Operating expenses (1)	340,876			346,260			371,508			242,650
Income from operations	215,079			184,980			173,304			163,616
Other expense	(94,976		)	(108,705		)	(85,794		)	(112,281		)
Income before income taxes	120,103			76,275			87,510			51,335
Income tax expense	14,824			9,273			10,789			6,188
Net income	105,279			67,002			76,721			45,147
Preferred stock dividends	(581		)	(1,446		)	(1,519		)	(1,485		)
Deemed dividend related to beneficial conversion feature of preferred stock	(416		)	(4,401		)	(1,086		)	(1,086		)
Net income attributable to Ocwen common stockholders	$	104,282		$	61,155		$	74,116		$	42,576

Earnings per share attributable to Ocwen common stockholders
Basic	$	0.77		$	0.45		$	0.55		$	0.31
Diluted	$	0.74		$	0.44		$	0.53		$	0.31



	Quarters Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Revenue	$	236,590		$	232,700		$	211,381		$	164,532
Operating expenses	99,097			92,793			85,904			86,113
Income from operations	137,493			139,907			125,477			78,419
Other expense	(61,014		)	(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
Preferred stock dividends	(85		)	—			—			—
Deemed dividend related to beneficial conversion feature of preferred stock	(60		)	—			—			—
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


(1)	Operating expenses for the second quarter of 2013 include a $52.8 million charge recorded in connection with an agreement with the CFPB, various state attorneys general and other agencies regarding certain foreclosure-related matters. See Note 28 — Commitments and Contingencies for additional information regarding this agreement.

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2010
Noncontrolling Interest [Line Items]
Loans held for sale, at fair value	$ 426,480	$ 0	$ 503,753
Loans held for sale, at lower of cost or fair value	82,866	20,633	62,907	$ 25,803
Mortgage servicing rights	678,937		1,953,352
Mortgage servicing rights fair value	85,213		$ 116,029
Restatement Adjustment [Member]
Noncontrolling Interest [Line Items]
Loans held for sale, at fair value	426,500
Loans held for sale, at lower of cost or fair value	82,900
Mortgage servicing rights	676,700
Mortgage servicing rights fair value	85,200
Financing liabilities	306,300
Process management fees	$ 37,100	$ 34,200

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2013
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Computer hardware and software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Computer hardware and software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	Term of the lease not to exceed useful life
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

Securitization and Variable Interests - Schedule of Cash Flows Related to Transfers Accounted for as Sales (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Transfers and Servicing [Abstract]
Proceeds received from securitizations	$ 7,871,481
Servicing fees collected	20,333
Purchases of previously transferred assets, net of claims reimbursed	(358)
Cash flows received from and paid to securitization trusts, total	$ 7,891,456

Securitization and Variable Interests - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Servicing Assets at Fair Value [Line Items]
Percentage Of Loan Transferred Through Securitization 60 Days Or More Past Due	2.60%
Loans held for investment - reverse mortgages, at fair value	$ 618,018	$ 0
Lending [Member] \| HECM [Member]
Servicing Assets at Fair Value [Line Items]
Loans Pledged as Collateral	618,000
HMBS - Related Borrowings [Member]
Servicing Assets at Fair Value [Line Items]
Secured Borrowings With Pledge Of Collateral	615,576
Mortgage Servicing Rights - Amortized Costs [Member]
Servicing Assets at Fair Value [Line Items]
Acquisitions	$ 74,784	$ 0	$ 0

Securitization and Variable Interests - Schedule of Assets That Relate to Continuing Involvement with Transferred Financial Assets with Servicing Rights and Maximum Exposure to Loss Including the Unpaid Principal Balance (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Transfers and Servicing [Abstract]
Mortgage servicing rights, at amortized cost	$ 44,615	$ 0
Mortgage servicing rights, at fair value	3,075	2,908
Advances and match funded advances	15,888	0
Unpaid principal balance of loans transferred	5,641,277	238,010
Maximum exposure to loss	$ 5,704,855	$ 240,918

Business Acquisitions - Narrative (Details)							1 Months Ended	4 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
Business Acquisitions - Narrative (Details)	Apr. 12, 2013 USD ($)	Apr. 02, 2013 USD ($) loan	Mar. 29, 2013 USD ($) subsidiary	Feb. 15, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 27, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Mar. 31, 2013 USD ($)	Mar. 30, 2013
Business Acquisition [Line Items]
Mortgage Loans on Real Estate, Number of Loans											2,861,918
Derecognition of goodwill in connection with the sale of a business										$ 210,357,000
Total consideration											$ 2,289,709,000	$ 764,824,000	$ 2,670,491,000
Professional Fees											123,886,000	29,213,000	19,961,000
Other Nonrecurring Expense													50,340,000
Depreciation											24,245,000	5,720,000	4,160,000
Goodwill					$ 416,176,000				$ 416,558,000		416,558,000	416,176,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets					3,773,064,000			$ 2,701,946,000	2,364,333,000		2,364,333,000	3,773,064,000	$ 2,701,946,000
ResCap [Member]
Business Acquisition [Line Items]
Proceeds from Issuance of Debt				$ 1,200,000,000
Debt Instrument Net Additional Capital Deployed				840,000,000
Total consideration				2,289,709,000
Business Acquisition, Cost of Acquired Entity, Cash Paid									120,400,000
Business Combination, Acquisition Related Costs											3,200,000
Goodwill				207,776,000
Total consideration				2,289,709,000
Cash				0
Business Acquisition, Repayment Of Outstanding Debt				0
ResCap [Member] \| Mortgage Servicing Rights [Member]
Business Acquisition [Line Items]
Unpaid principal balance assets acquired				44,900,000,000
ResCap [Member] \| Subservice Mortgage Servicing Rights [Member]
Business Acquisition [Line Items]
Unpaid principal balance assets acquired				27,000,000,000
ResCap [Member] \| Freddie Mac and Ginnie Mae Loans [Member] \| Mortgage Servicing Rights [Member]
Business Acquisition [Line Items]
Unpaid principal balance assets acquired				111,200,000,000
Homeward [Member]
Business Acquisition [Line Items]
Mortgage Loans on Real Estate, Number of Loans						421,000
Unpaid principal balance assets acquired						$ 77,000,000,000
Total consideration						764,824,000
Business Acquisition, Cost of Acquired Entity, Cash Paid						603,700,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned						162,000,000
Escrow Deposit						75,000,000
Professional Fees					1,000,000
Goodwill						345,936,000
Total consideration						764,824,000
Cash						79,511,000
Business Acquisition, Repayment Of Outstanding Debt						0
Reverse mortgage acquired					558,700,000							558,700,000
Homeward [Member] \| Barclays Bank PLC [Member]
Business Acquisition [Line Items]
Debt Instrument, Face Amount									100,000,000		100,000,000
Homeward [Member] \| Altisource [Member]
Business Acquisition [Line Items]
Debt Instrument, Face Amount									75,000,000		75,000,000
Litton Acquisition
Business Acquisition [Line Items]
Mortgage Loans on Real Estate, Number of Loans							245,000,000
Unpaid principal balance assets acquired							$ 38,600,000,000
Derecognition of goodwill in connection with the sale of a business										0
Total consideration							247,400,000
Professional Fees								1,200,000
Business Acquisition, Acquiree Debt Repaid							2,400,000,000
Servicing Borrowings							2,100,000,000
Proceeds from Issuance of Senior Long-term Debt							$ 575,000,000
Period Over Which Severance Plans Remain In Effect (in Years)							1 year
Severance Costs								10,100,000
Reserve Funded For Benefit of Note Holders								42,500,000
Debt Issuance Cost							$ 11,500,000
Amortization Period, Debt Issuance Costs (in Years)							5 years
Other Nonrecurring Expense								49,600,000
Severance And Other Complensation Related Charges								33,100,000
Amortization of Acquired Intangible Assets								6,800,000
Depreciation								2,000,000
Business Combination, Acquisition Related Costs								$ 400,000
Goodwill					57,430,000				57,430,000		57,430,000	57,430,000
Correspondent One [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired														100.00%	49.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets														$ 26,300,000
Cash														23,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables														1,100,000
Recognized Gain Loss On Changes In Fair Value Of Investment			$ 400,000
Liberty Acquisition
Business Acquisition [Line Items]
Mortgage Loans on Real Estate, Number of Loans \| loan		420
Unpaid principal balance assets acquired		$ 55,200,000
Derecognition of goodwill in connection with the sale of a business										$ 0
Business Acquisition, Cost of Acquired Entity, Cash Paid		22,000,000
Goodwill		3,000,000			$ 0				$ 2,963,000		$ 2,963,000	$ 0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets		31,100,000
Cash		4,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		11,200,000
Business Acquisition, Repayment Of Outstanding Debt		9,100,000
Reverse mortgage acquired		60,000,000
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Current Assets, Loans Held For Sale		10,300,000
Business Acquisition Purchase Price Allocation Warehouse Facilities		46,300,000
Mortgage Backed Security Borrowings		$ 10,200,000
Senior Secured Term Loan [Member] \| ResCap [Member]
Business Acquisition [Line Items]
Debt Instrument, Face Amount				1,300,000,000
Altisource [Member]
Business Acquisition [Line Items]
Proceeds from sale of businesses	$ 128,800,000
Sale of Subsidiary, Number \| subsidiary			2
Assets of Disposal Group, Including Discontinued Operation			$ 9,400,000
Liabilities of Disposal Group, Including Discontinued Operation			4,000,000
Derecognition of goodwill in connection with the sale of a business	$ 128,800,000		$ 81,600,000
Business Combination, Term for Escrow Account			21 months
Repayments of Long-term Debt			$ 350,000,000
Altisource [Member] \| Correspondent One [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired															49.00%
Total consideration														12,600,000
Homeward Residential Holdings, Inc. [Member] \| Altisource [Member]
Business Acquisition [Line Items]
Proceeds from sale of businesses			87,000,000
Proceeds from sale business, net			$ 82,000,000
Unrelated Party [Member] \| Correspondent One [Member]
Business Acquisition [Line Items]
Total consideration														$ 900,000
Initial Estimate [Member] \| ResCap [Member]
Business Acquisition [Line Items]
Total consideration				2,172,029,000
Goodwill				204,743,000
Total consideration				2,172,029,000
Cash				0
Business Acquisition, Repayment Of Outstanding Debt				$ 0
Initial Estimate [Member] \| Homeward [Member]
Business Acquisition [Line Items]
Total consideration						765,724,000
Goodwill						300,843,000
Total consideration						765,724,000
Cash						79,511,000
Business Acquisition, Repayment Of Outstanding Debt						$ 0

Business Acquisitions - Purchase Price Allocation (Details) - USD ($)
$ in Thousands

12 Months Ended

Feb. 15, 2013

Dec. 27, 2012

Sep. 02, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

^[1]

$ (192,716)

$ (38,140)

^[2]

(66,948)

(13,430)

416,558

416,176

$ 2,289,709

$ 764,824

$ 2,670,491

ResCap [Member]

$ 0

389,944

1,747,201

16,423

2,989

(49,500)

(25,124)

2,081,933

207,776

Business Acquisition, Repayment Of Outstanding Debt

2,289,709

ResCap [Member] | Mortgage Servicing Rights [Member]

2,289,709

Unpaid principal balance assets acquired

44,900,000

ResCap [Member] | Initial Estimate [Member]

393,891

1,622,348

22,398

2,989

(49,500)

(24,840)

1,967,286

204,743

Business Acquisition, Repayment Of Outstanding Debt

2,172,029

ResCap [Member] | Adjustments [Member]

2,172,029

(3,947)

124,853

(5,975)

(284)

114,647

3,033

Business Acquisition, Repayment Of Outstanding Debt

117,680

$ 117,680

$ 79,511

558,721

360,344

2,266,882

52,103

12,515

69,287

5,485

22,280

(1,997,459)

(864,969)

(32,498)

(13,430)

(35,201)

(16,453)

(48,230)

418,888

345,936

Business Acquisition, Repayment Of Outstanding Debt

764,824

Unpaid principal balance assets acquired

764,824

77,000,000

Homeward [Member] | Initial Estimate [Member]

79,511

558,721

358,119

2,266,882

47,346

16,803

69,287

5,485

56,886

(1,997,459)

(864,969)

(32,498)

(35,201)

(16,418)

(47,614)

464,881

300,843

Business Acquisition, Repayment Of Outstanding Debt

765,724

Homeward [Member] | Adjustments [Member]

765,724

2,225

4,757

(4,288)

(34,606)

(13,430)

(35)

(616)

(45,993)

45,093

Business Acquisition, Repayment Of Outstanding Debt

(900)

Purchase price revision for tax liability

(900)

$ 34,606

Litton [Member]

$ 23,791

144,314

2,468,137

3,386

4,888

(3,939)

(27,516)

2,613,061

57,430

Business Acquisition, Repayment Of Outstanding Debt

2,670,491

(2,423,123)

$ 247,368

[1]

The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 28 — Commitments and Contingencies for additional information.

[2]

Business Acquisitions - Post-Acquisition Results of Operations (Details) - USD ($)		4 Months Ended	11 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
ResCap [Member]
Business Acquisition [Line Items]
Revenues			$ 684,935
Net income			$ 16,424
Homeward [Member]
Business Acquisition [Line Items]
Revenues	$ 5,881,000
Net income	$ 44,000
Litton [Member]
Business Acquisition [Line Items]
Revenues		$ 62,750,000
Net income		$ (20,910,000)

Business Acquisitions - Pro Forma Results of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
ResCap [Member]
Business Acquisition [Line Items]
Revenues	$ 2,086,010	$ 1,263,692
Net income	$ 285,302	87,262
Homeward [Member]
Business Acquisition [Line Items]
Revenues		1,362,927	$ 1,085,914
Net income		$ 254,051	163,647
Litton [Member]
Business Acquisition [Line Items]
Revenues			642,033
Net income			$ 52,407

Business Acquisitions - Facility Closure Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Reserve [Roll Forward]
Amortization of discount	$ 1,412	$ 3,259	$ 8,853
Liability ending balance	73,918
Servicing [Member]
Restructuring Reserve [Roll Forward]
Additions charged to operations	15,900
Lending [Member]
Restructuring Reserve [Roll Forward]
Additions charged to operations	700
Corporate and Other [Member]
Restructuring Reserve [Roll Forward]
Additions charged to operations	4,100
Employee termination benefits [Member]
Restructuring Reserve [Roll Forward]
Liability beginning balance	0	5,163	1,332
Additions charged to operations	20,683	2,869	33,127
Amortization of discount	0	0	0
Payments	(15,867)	(8,032)	(29,296)
Liability ending balance	4,816	0	5,163
Lease termination costs [Member]
Restructuring Reserve [Roll Forward]
Liability beginning balance	4,891	5,287	7,794
Additions charged to operations	0	5,030	0
Amortization of discount	347	176	99
Payments	(2,784)	(5,602)	(2,606)
Liability ending balance	2,454	4,891	5,287
Total [Member]
Restructuring Reserve [Roll Forward]
Liability beginning balance	4,891	10,450	9,126
Additions charged to operations	20,683	7,899	33,127
Amortization of discount	347	176	99
Payments	(18,651)	(13,634)	(31,902)
Liability ending balance	$ 7,270	$ 4,891	$ 10,450

Sales of Advances and MSRs - Narrative (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Transfers and Servicing of Financial Assets [Abstract]
Unpaid Principal Balance Of Loans Related To Servicing Assets Sold	$ 119.7	$ 82.7

Sales of Advances and MSRs - Summary of the Assets and Liabilities Sold to HLSS (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Proceeds from sale of advance financing subsidiary and special purpose entity	$ 0	$ 76,334	$ 0
Sales of Other Liabilities	(67,773)	4,343	$ 15,470
HLSS [Member]
Related Party Transaction [Line Items]
Fair Value Of Servicing Assets Sold	417,167	316,607
Sale Of Match Funded Advances	3,839,954	2,827,227
Disposal Group Match Funded Advances	0	413,374
Disposal Group Debt Service Account	0	14,786
Disposal Group Debt Fees and Debt Issuance Costs	0	5,422
Disposal Group Other Prepaid Expenses	0	1,928
Disposal Group Match Funded Liabilities	0	(358,335)
Disposal Group Accrued Liabilities	0	(841)
Proceeds from sale of advance financing subsidiary and special purpose entity	0	76,334
Asset Sale Due To Purchaser For Purchase Price Adjustments	0	(1,410)
Proceeds From Sales Of Assets Investing Activities Before Settlement Of Post Closing Adjustments	4,257,121	3,218,758
Asset Sale Received From Due To Purchaser For Settlement Of Purchase Price Adjustments	1,410	0
Sales price, as adjusted	4,257,121	3,220,168
Proceeds from Sales of Assets, Investing Activities	$ 4,258,531	$ 3,218,758

Fair Value - Schedule of Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financial assets:
Loans held for sale, at fair value	$ 503,753	$ 426,480	$ 0
Financing liabilities:
HMBS-related borrowings, at fair value	615,576	0
Carrying Value
Financial assets:
Loans held for sale, at fair value	566,660	509,346
Financing liabilities:
Total Financing liabilities	1,284,229	306,308
Other secured borrowings:
Total Other secured borrowings	1,777,669	790,371
MSRs:
Total MSRs	2,069,381	764,150
Carrying Value \| Level 1 \| Forward Mortgage Backed Securities Trades [Member]
Derivative financial instruments:
Derivative financial instruments	6,905	(1,719)
Carrying Value \| Level 1 \| U S Treasury Futures [Member]
Derivative financial instruments:
Derivative financial instruments	0	(1,258)
Carrying Value \| Level 2
Financial assets:
Loans held for sale, at fair value	503,753	426,480
Carrying Value \| Level 2 \| Interest Rate Lock Commitments [Member]
Derivative financial instruments:
Derivative financial instruments	8,433	5,781
Carrying Value \| Level 3
Financial assets:
Loans held for sale, at lower of cost or fair value	62,907	82,866
Loans held for investment - Reverse mortgages, at fair value	618,018	0
Advances and match funded advances	3,444,571	3,233,707
Receivables, net	152,516	132,853
Financial liabilities:
Match Funded Liabilities	2,364,814	2,532,745
Financing liabilities:
HMBS-related borrowings, at fair value	615,576	0
Other	668,653	306,308
Other secured borrowings:
Senior secured term loan	1,284,901	305,997
Other	492,768	484,374
MSRs:
MSRs, at fair value	116,029	85,213
MSRs, at amortized cost	1,953,352	678,937
Carrying Value \| Level 3 \| Interest Rate Swap [Member]
Derivative financial instruments:
Derivative financial instruments	0	(10,836)
Carrying Value \| Level 3 \| Interest Rate Cap [Member]
Derivative financial instruments:
Derivative financial instruments	442	168
Fair Value
Financial assets:
Loans held for sale, at fair value	566,660	509,346
Financing liabilities:
Total Financing liabilities	1,284,229	306,308
Other secured borrowings:
Total Other secured borrowings	1,762,876	795,196
MSRs:
Total MSRs	2,557,748	829,043
Fair Value \| Level 1 \| Forward Mortgage Backed Securities Trades [Member]
Derivative financial instruments:
Derivative financial instruments	6,905	(1,719)
Fair Value \| Level 1 \| U S Treasury Futures [Member]
Derivative financial instruments:
Derivative financial instruments	0	(1,258)
Fair Value \| Level 2
Financial assets:
Loans held for sale, at fair value	503,753	426,480
Fair Value \| Level 2 \| Interest Rate Lock Commitments [Member]
Derivative financial instruments:
Derivative financial instruments	8,433	5,781
Fair Value \| Level 3
Financial assets:
Loans held for sale, at lower of cost or fair value	62,907	82,866
Loans held for investment - Reverse mortgages, at fair value	618,018	0
Advances and match funded advances	3,444,571	3,233,707
Receivables, net	152,516	132,853
Financial liabilities:
Match Funded Liabilities	2,364,814	2,533,278
Financing liabilities:
HMBS-related borrowings, at fair value	615,576	0
Other	668,653	306,308
Other secured borrowings:
Senior secured term loan	1,270,108	310,822
Other	492,768	484,374
MSRs:
MSRs, at fair value	116,029	85,213
MSRs, at amortized cost	2,441,719	743,830
Fair Value \| Level 3 \| Interest Rate Swap [Member]
Derivative financial instruments:
Derivative financial instruments	0	(10,836)
Fair Value \| Level 3 \| Interest Rate Cap [Member]
Derivative financial instruments:
Derivative financial instruments	$ 442	$ 168

Fair Value - Reconciliation of Level 3 Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 74,545,000	$ (16,676,000)
Purchases, issuances, sales and settlements:
Purchases	570,000	90,129,000
Issuances	4,564,000	0
Sales	24,156,000	(405,000)
Settlements	(1,687,000)	2,451,000
Purchases, issuances, sales and settlements, total	27,603,000	92,175,000
Total realized and unrealized gains and (losses):
Included in Other, net	29,128,000	7,361,000
Included in Other comprehensive income (loss)	(12,363,000)	(8,315,000)
Total realized and unrealized gains and (losses)	16,765,000	(954,000)
Transfers in and / or out of Level 3	0	0
Ending balance	118,913,000	74,545,000	$ (16,676,000)
Loans Held for Investment - Reverse Mortgages [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0
Purchases, issuances, sales and settlements:
Purchases	(10,251,000)
Issuances	609,555,000
Sales	0
Settlements	(5,886,000)
Purchases, issuances, sales and settlements, total	613,920,000
Total realized and unrealized gains and (losses):
Included in Other, net	4,098,000
Included in Other comprehensive income (loss)	0
Total realized and unrealized gains and (losses)	4,098,000
Transfers in and / or out of Level 3	0
Ending balance	618,018,000	0
HMBS - Related Borrowings [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0
Purchases, issuances, sales and settlements:
Purchases	10,179,000
Issuances	(604,991,000)
Sales	0
Settlements	5,440,000
Purchases, issuances, sales and settlements, total	(609,730,000)
Total realized and unrealized gains and (losses):
Included in Other, net	(5,846,000)
Included in Other comprehensive income (loss)	0
Total realized and unrealized gains and (losses)	(5,846,000)
Transfers in and / or out of Level 3	0
Ending balance	(615,576,000)	0
Derivative Financial Instruments, Assets [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	(10,668,000)	(16,676,000)	(15,351,000)
Purchases, issuances, sales and settlements:
Purchases	498,000	4,946,000	3,688,000
Issuances	0	0
Sales	24,156,000	(405,000)
Settlements	(1,241,000)	2,451,000	(85,000)
Purchases, issuances, sales and settlements, total	23,413,000	6,992,000	3,773,000
Total realized and unrealized gains and (losses):
Included in Other, net	60,000	7,331,000	(5,881,000)
Included in Other comprehensive income (loss)	(12,363,000)	(8,315,000)	783,000
Total realized and unrealized gains and (losses)	(12,303,000)	(984,000)	(5,098,000)
Transfers in and / or out of Level 3	0	0	0
Ending balance	442,000	(10,668,000)	(16,676,000)
MSRS [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	85,213,000	0
Purchases, issuances, sales and settlements:
Purchases	0	85,183,000
Issuances	0	0
Sales	0	0
Settlements	0	0
Purchases, issuances, sales and settlements, total	0	85,183,000
Total realized and unrealized gains and (losses):
Included in Other, net	30,816,000	30,000
Included in Other comprehensive income (loss)	0	0
Total realized and unrealized gains and (losses)	30,816,000	30,000
Transfers in and / or out of Level 3	0	0
Ending balance	$ 116,029,000	$ 85,213,000	$ 0

Fair Value - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Fair Value - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Losses attributable to derivatives		$ 1.2	$ 5.1
HMBS - Related Borrowings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	6 years 5 months 1 day
Repayment rate	9.65%
Discount rate	1.17%
HMBS - Related Borrowings [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	2 years 8 months 27 days
Repayment rate	4.83%
HMBS - Related Borrowings [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	22 years 6 months 18 days
Repayment rate	37.97%
Borrowings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	5.57%
Loans Held for Investment - Reverse Mortgages [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	7 years 1 month 6 days
Repayment rate	9.65%
Discount rate	1.72%
Loans Held for Investment - Reverse Mortgages [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	2 years 9 months 4 days
Repayment rate	4.83%
Loans Held for Investment - Reverse Mortgages [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Life	23 years 3 months
Repayment rate	38.40%
Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	13.90%
Delinquency rate	17.32%
Discount rate	11.64%
Mortgage Servicing Rights [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	6.41%
Delinquency rate	6.18%
Fair value inputs basis spread on variable rate	0.00%
Discount rate	9.98%
Mortgage Servicing Rights [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	17.50%
Delinquency rate	30.82%
Fair value inputs basis spread on variable rate	3.75%
Discount rate	16.73%
Fair Value Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	7.75%
Discount rate	9.00%

Loans Held for Sale - Components of Held for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Receivables [Abstract]
Loans held for sale - fair value	$ 503,753	$ 426,480	$ 0
Loans held for sale - lower of cost or fair value	62,907	82,866	$ 20,633	$ 25,803
Loans held for sale	$ 566,660	$ 509,346

Loans Held for Sale - Fair Value (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Originations and purchases

$ 426,480

$ 0

^[1]

8,106,742

670,147

Proceeds from sales

(7,999,235)

(241,960)

Gain (loss) on sale of loans

^[2]

(26,981)

3,889

(3,253)

(5,596)

Gain on sale of loans held for investment

503,753

426,480

$ 0

121,694

215

$ (2)

Collateral

48,200

Lending [Member] | Line of Credit [Member]

Loans Held for Investment - Reverse Mortgages [Member]

Collateral

471,200

Gain on sale of loans held for investment

41,700

Liberty Home Equity Solutions Inc [Member]

Reverse mortgage acquired

$ 60,000

Reverse mortgage acquired

$ 558,700

[1]	Purchases include $60.0 million of reverse mortgages acquired in the Liberty Acquisition in 2013 and $558.7 million of forward mortgages acquired in the Homeward Acquisition in 2012. See Note 3 — Business Acquisitions for additional information.
[2]	Includes gains of $41.7 million recorded during 2013 to adjust Loans Held for investment - reverse mortgages to fair value.

Loans Held for Sale - Lower of Cost or Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at lower of cost or fair value	$ 82,866	$ 20,633	$ 25,803
Purchases	1,632,390	65,756	0
Proceeds from sales	(1,036,316)	0	0
Principal payments	(432,423)	(1,474)	(1,468)
Transfers to accounts receivable	(218,629)	0	0
Transfers to real estate owned	(4,775)	(999)	(2,599)
Gain on sale of loans	35,087	0	0
Decrease (increase) in valuation allowance	(10,644)	568	354
Modifications, charge offs and other	15,351	(1,618)	(1,457)
Loans held for sale, at lower of cost or fair value	62,907	82,866	20,633
Loans Held for Sale, Unpaid Principal Balance	18,000
Valuation Allowance for Loans Held for Sale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Valuation allowance	30,700	14,700	$ 14,300
Ginnie Mae [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at lower of cost or fair value	43,065
Nonperforming Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at lower of cost or fair value	$ 65,400
Loans held for sale, at lower of cost or fair value		$ 65,400

Loans Held for Sale - Gain (Loss) on Sale of Loans (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Loans Held For Sale At Fair Value [Abstract]

Gain On Sale Of Loans Including Value Assigned To Msrs Retained

^[1]

$ 82,518

$ 6,797

$ (2)

Gain Loss On Interest Rate Derivative Instruments

523

Change In Fair Value Of Mortgage Loans Held For Sale

(1,709)

(5,462)

Gain On Hedge Instruments

42,732

(1,075)

Gains (Losses) on Sales of Other Real Estate

(2,370)

(47)

Gain on sale of loans held for investment

121,694

215

$ (2)

Loans Restricted For Securitization Investors Fair Value

$ 74,800

$ 2,900

$ 35,100

[1]	Includes gains of $74.8 million and $2.9 million for 2013 and 2012, respectively, representing the value assigned to MSRs retained on sales of loans. Also includes gains of $35.1 million recorded during 2013 on sales of repurchased loans into Ginnie Mae guaranteed securitizations.

Advances - Schedule of Advance Payments by Financial Institution on Foreclosed Properties (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Servicing:
Advances	$ 892,188	$ 184,463	$ 103,591
Servicing, Principal and Interest [Member]
Servicing:
Advances	141,307	83,617
Servicing, Taxes and Insurance [Member]
Servicing:
Advances	477,039	51,447
Servicing, Foreclosures and Bankruptcy Costs [Member]
Servicing:
Advances	269,409	41,296
Servicing [Member]
Servicing:
Advances	887,755	176,360
Corporate Items and Other [Member]
Servicing:
Advances	$ 4,433	$ 8,103

Advances - Activity (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Advances [Roll Forward]

Advances, beginning balance

$ 184,463

$ 103,591

Transfers to match funded advances

^[1]

734,794

118,360

(142,286)

(74,317)

Sales of advances to HLSS

(200,749)

New advances, net of collections

315,966

36,829

Match Funded Advances [Roll Forward]

Advances, ending balance

$ 892,188

$ 184,463

[1]	Servicing advances acquired in connection with the acquisition of MSRs through business acquisitions and asset acquisitions. See Note 3 — Business Acquisitions and Note 9 — Mortgage Servicing for additional information.

Match Funded Advance - Schedule of Match Funded Advances (Details) - Residential Mortgage [Member] - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Match Funded Advances [Line Items]
Principal and interest	$ 1,497,649	$ 1,577,808
Taxes and insurance	830,113	1,148,486
Foreclosures, bankruptcy, real estate and other	224,621	322,950
Match funded advances	$ 2,552,383	$ 3,049,244	$ 3,629,911

Match Funded Advance - Activity (Details) - Residential Mortgage [Member] - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

$ 3,049,244

$ 3,629,911

Sales of advances to HLSS

^[1]

3,589,773

4,068,959

Transfers from advances

^[2]

142,286

74,317

(3,639,205)

(3,240,601)

Collections of pledged advances, net of new advances

(589,715)

(1,483,342)

Servicing Asset at Amortized Cost, Balance [Roll Forward]

$ 2,552,383

$ 3,049,244

[1]	Represents advances acquired in connection with business and asset acquisitions that were pledged to advance facilities at the date of acquisition.
[2]	Represents new advances initially classified as Advances at the date of payment and subsequently pledged to advance facilities.

Mortgage Servicing - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Transfers and Servicing [Abstract]
Pledged Assets, Not Separately Reported, Other	$ 455.4	$ 273.0
Unpaid Principal Balance Of Small Balance Commerical Loans Serviced	2,600.0	2,100.0
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset	3,200.0	$ 1,300.0
Collateral	$ 48.2

Mortgage Servicing - Schedule of MSRs (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Transfers and Servicing [Abstract]
MSRs - Amortization method	$ 1,953,352	$ 678,937
MSRs - Fair value measurement method	116,029	85,213
Mortgage servicing rights, total	$ 2,069,381	$ 764,150

Mortgage Servicing - Schedule of Activity Related to MSRs - Amortization Method (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

$ 678,937

$ 69,287

Mortgage servicing rights fair value

1,953,352

678,937

116,029

85,213

Proceeds from sale of MSRs

34,754

Deferred Unrecognized Gain On Sale Of Mortgage Loans

5,100

Total [Member]

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Additions recognized on the sale of mortgage loans

678,937

293,152

193,985

74,784

Sales

^[1]

(28,403)

Servicing transfers and adjustments

(8,883)

(4)

Change in valuation allowance

2,375

(88)

574

Amortization

^[2]

(283,244)

(74,171)

(45,721)

Mortgage servicing rights fair value

1,953,352

678,937

293,152

2,441,719

743,830

340,015

Total [Member] | Rescap Acquisition [Member]

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Liberty Acquisition [Member]

^[3]

389,944

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Homeward [Member]

^[3]

2,840

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Litton [Member]

^[3]

278,069

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Ally MSR Transaction [Member]

^[3]

$ 144,314

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | OneWest MSR Transaction [Member]

^[4]

683,787

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Greenpoint MSR Transaction [Member]

^[5]

398,804

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Other [Member]

^[6]

33,647

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Saxon [Member]

8,764

16,084

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | JP Morgan Chase Bank [Member]

77,881

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Total [Member] | Bank Of America [Member]

23,445

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Mortgage Servicing Rights [Member]

$ 64,569

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Asset Acquisition Loans Unpaid Principal Balance

69,000,000

Mortgage Servicing Rights [Member] | Ally MSR Transaction [Member]

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Asset Acquisition Loans Unpaid Principal Balance

87,500,000

Asset Acquisition Advances Acquired

73,600

Origination Representation And Warranty Obligations

136,700

Mortgage Servicing Rights [Member] | OneWest MSR Transaction [Member]

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Asset Acquisition Advances Acquired

2,092,400

Mortgage Servicing Rights [Member] | Greenpoint MSR Transaction [Member]

Servicing Asset at Amortized Cost, Balance [Roll Forward]

Asset Acquisition Loans Unpaid Principal Balance

6,300,000

Asset Acquisition Advances Acquired

$ 422,100

[1]	Cash proceeds from the sale were $34.8 million. These MSRs were sold with subservicing retained. The gain on the sale of $5.1 million has been deferred and will be recognized in earnings over the life of the subservicing contract.
[2]	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.
[3]	See Note 3 — Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.
[4]	The acquired MSRs relate to mortgage loans with a UPB of $87.5 billion owned by Freddie Mac and Fannie Mae. We also acquired servicing advances and other receivables of $73.6 million. Prior to the closing, we subserviced the related MSRs on behalf of Ally Bank. We assumed the origination representation and warranty obligations of approximately $136.7 million in connection with a majority of the acquired MSRs. We had been subservicing these MSRs on behalf of Ally under a subservicing contract that we assumed in connection with the ResCap Acquisition. No operations, entities or other assets were acquired in the transaction.
[5]	The acquired MSRs relate to mortgage loans with a UPB of approximately $69.0 billion and related servicing advance receivables of $2.1 billion acquired in the OneWest MSR Transaction. No operations or other assets were purchased in the transaction. As part of the OneWest MSR Transaction, both the seller and OLS have agreed to indemnification provisions for the benefit of the other party. The OneWest MSR Transaction closed in stages, and the majority of loans were boarded onto our primary servicing platform as of December 31, 2013. Each closing is subject to, among other things, receipt of certain investor and third party consents and customary closing conditions.
[6]	The acquired MSRs relate to mortgage loans with a UPB of approximately $6.3 billion and related servicing advance receivables of $422.1 million.

Mortgage Servicing - Schedule of Expected Amortization Expense (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Transfers and Servicing [Abstract]
2014	$ 326,583
2015	276,893
2016	234,207
2017	194,053
2018	$ 160,804

Mortgage Servicing - Schedule of Activity Related to MSRs - Fair Value Method (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Servicing Asset at Fair Value, Amount [Roll Forward]

$ 85,213

74,800

$ 2,900

Servicing Asset at Fair Value, Amount [Roll Forward]

116,029

85,213

Conventional [Member]

Additions recognized on the sale of residential mortgage loans

85,213

2,908

Changes in market value assumptions

^[1]

44,199

Realization of cash flows and other changes

^[1]

(13,383)

Conventional [Member] | Homeward [Member]

116,029

85,213

Servicing Asset at Fair Value, Amount [Roll Forward]

Schedule of Servicing and Subservicing Portfolio [Line Items]

^[2]

$ 0

$ 82,275

[1]	Changes in fair value are recognized in Servicing and origination expense in the Consolidated Statements of Operations.
[2]	See Note 3 — Business Acquisitions for additional information.

Mortgage Servicing - Schedule of Estimated Change in the Fair Value of Our MSRs (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Transfers and Servicing [Abstract]
Weighted average prepayment speeds, 10%	$ (7,995)
Weighted average prepayment speeds, 20%	(15,713)
Discount rate (Option-adjusted spread), 10%	(4,497)
Discount rate (Option-adjusted spread), 20%	$ (8,659)

Mortgage Servicing - Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced (Details) - USD ($)
$ in Thousands

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Residential Mortgage [Member]

$ 464,651,332

Schedule of Servicing and Subservicing Portfolio [Line Items]

397,546,635

^[1]

$ 175,762,161

^[1]

$ 78,675,160

Subservicing

67,104,697

27,903,555

23,524,062

Commercial Real Estate [Member]

464,651,332

203,665,716

102,199,222

Schedule of Servicing and Subservicing Portfolio [Line Items]

^[1]

Subservicing

400,502

401,031

290,863

Schedule of Servicing and Subservicing Portfolio [Line Items]

400,502

401,031

290,863

Total [Member]

397,546,635

^[1]

175,762,161

^[1]

78,675,160

Subservicing

67,505,199

28,304,586

23,814,925

Schedule of Servicing and Subservicing Portfolio [Line Items]

465,051,834

204,066,747

$ 102,490,085

HLSS [Member]

Unpaid Principal Balance

$ 175,100,000

$ 79,400,000

[1]	Includes UPB of $175.1 billion and $79.4 billion at December 31, 2013 and 2012, respectively, for which the Rights to MSRs have been sold to HLSS.

Mortgage Servicing - Mortgage Loans on Real Estate, Geographic Location of Property (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 464,651,332
Residential Loans, Count	2,861,918
California [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 112,200,350
Residential Loans, Count	436,374
Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 37,881,401
Residential Loans, Count	245,438
New York [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 30,548,742
Residential Loans, Count	129,364
Texas [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 20,838,925
Residential Loans, Count	203,035
Illinois [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 20,336,702
Residential Loans, Count	97,207
Other States [Member]
Mortgage Loans on Real Estate [Line Items]
Residential Loans, Amount (in Dollars)	$ 242,845,212
Residential Loans, Count	1,750,500

Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Transfers and Servicing [Abstract]
Servicing	$ 1,246,882	$ 535,415	$ 313,997
Subservicing	146,605	45,713	27,404
Servicing and Subservicing fees, total	1,393,487	581,128	341,401
Home Affordable Modification Program (HAMP) fees	152,812	76,764	42,025
Late charges	115,826	69,281	38,557
Loan collection fees	31,022	15,960	11,223
Custodial accounts (float earnings)	5,332	3,749	2,105
Other	125,080	57,525	23,527
Fees, total	$ 1,823,559	$ 804,407	$ 458,838

Receivables - Schedule of Receivables (Details) - USD ($)
$ in Thousands

Dec. 31, 2013

Dec. 31, 2012

Accounts, Notes, Loans and Financing Receivable [Line Items]

$ 107,118

$ 83,223

Income taxes receivable

6,369

20,686

Due from related parties

14,553

12,361

Accounts, Notes, Loans and Financing Receivable [Line Items]

24,476

16,583

Receivables, total

152,516

132,853

Receivables [Member]

^[1]

124,537

84,870

Income taxes receivable

6,369

20,686

Due from related parties

^[2]

14,553

12,361

Allowancefor Credit Losses [Member]

24,579

18,577

Receivables, total

170,038

136,494

Accounts, Notes, Loans and Financing Receivable [Line Items]

^[1]

(17,419)

(1,647)

Income taxes receivable

Due from related parties

^[2]

Prepaid lender fees and debt issuance costs, net

(103)

(1,994)

Receivables, total

$ (17,522)

$ (3,641)

[1]

[2]

See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.

Receivables - Narrative (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Receivables [Abstract]
Receivables Related To FHA Or VA Insured Loans	$ 54.0
Allowance For Losses Related To FHA Or VA Insured Loans	14.0
Other receivables, probable losses	$ 13.6

Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 115,133	$ 67,053
Less accumulated depreciation and amortization	(61,347)	(33,806)
Premises and equipment, net	53,786	33,247
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	51,060	32,628
Building [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	12,926	0
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	25,467	14,950
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	13,174	10,367
Office Equipment and Other [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 12,506	$ 9,108

Premises and Equipment - Narrative (Details) $ in Millions	Dec. 31, 2013 USD ($)
Rescap Acquisition [Member]
Business Acquisition [Line Items]
Premises and equipment	$ 16.4

Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2013
Goodwill [Roll Forward]
Balance at December 31, 2012	$ 416,176	$ 416,176
Recognition of goodwill in connection with a business acquisition		210,739
Derecognition of goodwill in connection with the sale of a business	(210,357)
Balance at December 31, 2013		416,558
Liberty Acquisition
Goodwill [Roll Forward]
Balance at December 31, 2012	0	0
Recognition of goodwill in connection with a business acquisition		2,963
Derecognition of goodwill in connection with the sale of a business	0
Balance at December 31, 2013		2,963
ResCap Acquisition
Goodwill [Roll Forward]
Balance at December 31, 2012	0	0
Recognition of goodwill in connection with a business acquisition		207,776
Derecognition of goodwill in connection with the sale of a business	(128,750)
Balance at December 31, 2013		79,026
ResCap Acquisition \| Servicing [Member]
Goodwill [Roll Forward]
Balance at December 31, 2013	79,000
Homeward Acquisition
Goodwill [Roll Forward]
Balance at December 31, 2012	345,936	345,936
Recognition of goodwill in connection with a business acquisition		0
Derecognition of goodwill in connection with the sale of a business	(81,607)
Balance at December 31, 2013		264,329
Homeward Acquisition \| Servicing [Member]
Goodwill [Roll Forward]
Balance at December 31, 2013	218,200
Homeward Acquisition \| Lending [Member]
Goodwill [Roll Forward]
Balance at December 31, 2013	46,200
Litton Acquisition
Goodwill [Roll Forward]
Balance at December 31, 2012	57,430	57,430
Recognition of goodwill in connection with a business acquisition		0
Derecognition of goodwill in connection with the sale of a business	0
Balance at December 31, 2013		57,430
HomEq Acquisition
Goodwill [Roll Forward]
Balance at December 31, 2012	12,810	12,810
Recognition of goodwill in connection with a business acquisition		0
Derecognition of goodwill in connection with the sale of a business	$ 0
Balance at December 31, 2013		$ 12,810

Debt Service Accounts - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Debt Service Accounts [Abstract]
Debt service accounts	$ 129,897	$ 88,748

Other Assets - Schedule of Other Assets (Details) - USD ($)
$ in Thousands

Dec. 31, 2013

Dec. 31, 2012

Other Assets [Abstract]

^[1]

$ 31,481

$ 14,389

Prepaid income taxes

^[2]

20,585

23,112

Prepaid expenses

16,132

15,058

Derivatives, at fair value

^[3]

15,494

10,795

^[4]

11,771

25,187

Purchase price deposit

^[5]

10,000

57,000

21,850

45,171

Other assets

$ 127,313

$ 190,712

[1]	These balances relate to match funded liabilities and other secured borrowings. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.
[2]	During 2012 and 2013, we completed intra-entity transfers of certain MSRs. The deferred tax effects of these transactions have been recognized as prepaid income tax assets and are being amortized to Income tax expense over a 7-year period.
[3]	See Note 19 — Derivative Financial Instruments and Hedging Activities for additional information regarding derivatives.
[4]	he balance at December 31, 2012 includes an investment of $13.4 million in Correspondent One. As disclosed in Note 3 — Business Acquisitions, we increased our ownership from 49% to 100% on March 31, 2013. Effective on that date, we began including the accounts of Correspondent One in our consolidated financial statements and eliminated our current investment in consolidation.
[5]	The balance at December 31, 2013 represents an initial cash deposit that we made in connection with the agreement we entered into on December 20, 2013 to acquire MSRs and related advances from Wells Fargo Bank, N.A. This deposit along with an additional deposit of $15.0 million that we made in January 2014 will be held in escrow until the transaction closes. The balance at December 31, 2012 represents an earnest money cash deposit we made in connection with the ResCap Acquisition. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 3 — Business Acquisitions for additional information.

Other Assets - Narrative (Details) - USD ($)
$ in Thousands

Jan. 31, 2014

Dec. 31, 2013

Mar. 31, 2013

Mar. 30, 2013

Dec. 31, 2012

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

^[1]

$ 11,771

$ 25,187

Purchase price deposit

^[2]

$ 10,000

57,000

Correspondent One [Member]

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

$ 13,400

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

49.00%

Subsequent Event [Member]

Purchase price deposit

$ 15,000

[1]

he balance at December 31, 2012 includes an investment of $13.4 million in Correspondent One. As disclosed in Note 3 — Business Acquisitions, we increased our ownership from 49% to 100% on March 31, 2013. Effective on that date, we began including the accounts of Correspondent One in our consolidated financial statements and eliminated our current investment in consolidation.

[2]

Borrowings - Schedule of Match Funded Liabilities (Details) - USD ($)
$ in Thousands

12 Months Ended

Feb. 28, 2014

Feb. 03, 2014

Dec. 31, 2013

Nov. 30, 2013

Dec. 31, 2012

Stated percentage of convertible notes

3.25%

Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount

$ 2,364,814

$ 2,532,745

Weighted average interest rate

2.08%

3.52%

Promissory Note [Member]

^[1],[2]

Dec. 31, 2013

Servicer Advance Revolving Trust A [Member]

^[1],[2]

Dec. 31, 2013

^[1],[3]

May 31, 2043

^[1],[3]

May 31, 2013

^[3],[4]

$ 0

Stated percentage of convertible notes

^[3]

$ 0

$ 325,000

2.23%

Servicer Advance Revolving Trust B [Member]

^[1],[3]

May 31, 2043

^[1],[3]

May 31, 2013

^[3],[4]

$ 0

Servicer Advance Revolving Trust B [Member] | Minimum [Member]

^[3]

$ 0

525,000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

^[3]

3.37%

Servicer Advance Revolving Trust B [Member] | Maximum [Member]

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

^[3]

5.92%

Servicer Advance Revolving Trust C [Member]

^[1],[3]

Sep. 30, 2043

^[1],[3]

Sep. 30, 2013

^[3],[4]

$ 0

Servicer Advance Revolving Trust C [Member] | Minimum [Member]

^[3]

$ 0

250,000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

^[3]

3.27%

Servicer Advance Revolving Trust C [Member] | Maximum [Member]

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

^[3]

6.90%

Servicer Advance Revolving Trust D [Member]

^[1],[3]

Mar. 31, 2043

^[1],[3]

Mar. 31, 2013

^[3],[4]

$ 0

Stated percentage of convertible notes

^[3]

$ 0

248,999

2.98%

Servicer Advance Revolving Trust E [Member]

^[1],[3]

Mar. 31, 2044

^[1],[3]

Mar. 31, 2014

^[3],[4]

$ 0

Servicer Advance Revolving Trust E [Member] | Minimum [Member]

^[3]

$ 0

299,278

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

^[3]

3.72%

Servicer Advance Revolving Trust E [Member] | Maximum [Member]

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

^[3]

7.04%

Total Fixed Rate [Member]

^[4]

$ 0

Advance Receivable Backed Notes Series C [Member]

$ 0

1,648,277

^[1],[2]

Dec. 31, 2015

^[1],[2]

Apr. 2014

^[4],[5]

$ 0

Advance Receivable Backed Notes Series D [Member]

^[5]

$ 0

205,016

^[1],[6]

Dec. 31, 2043

^[1],[6]

Dec. 2013

^[4],[5]

$ 0

Advance Receivable Backed Notes Series E [Member]

^[5]

$ 0

232,712

^[1],[7]

Jun. 30, 2016

^[1],[7]

June 2014

^[4],[6]

$ 57,612

Line of Credit Facility, Maximum Borrowing Capacity

^[6]

$ 417,388

94,095

$ 475,000

Advance Receivable Backed Notes Series F [Member]

^[1]

Dec. 31, 2015

^[1]

Dec. 2014

^[4]

$ 16,789

Servicer Advance Revolving Trust F [Member]

$ 33,211

49,138

^[1],[3]

May 31, 2043

^[1],[3]

May 2013

^[3],[4]

$ 0

Servicer Advance Revolving Trust G [Member]

^[3]

$ 0

204,633

^[1],[3]

Dec. 31, 2043

^[1],[3]

Sept. 2013

^[3],[4]

$ 0

Servicer Advance Revolving Trust H [Member]

^[3]

$ 0

22,003

^[1],[3]

Dec. 31, 2044

^[1],[3]

Mar. 2014

^[3],[4]

$ 0

Homeward Agency Advance Funding Trust 2012-1 [Member]

^[3]

$ 0

40,626

^[1],[3]

Dec. 31, 2013

^[1],[3]

Sept. 2013

^[3],[4]

$ 3,981

Homeward DSF Advance Revolving Trust 2012-1 [Member]

^[3]

$ 21,019

16,094

^[1],[3]

Dec. 31, 2013

^[1],[3]

Feb. 2013

^[3],[4]

$ 0

Class A1 Term Note [Member]

^[3]

$ 0

20,151

^[1],[8]

Dec. 31, 2043

^[1],[8]

Aug. 2013

^[4]

$ 5,372

Line of Credit Facility, Maximum Borrowing Capacity

$ 1,494,628

$ 1,300,000

Line of Credit Facility, Increase (Decrease) to Borrowing Capacity

$ (250,000)

Class A2 Variable Funding Note [Member]

^[1],[8]

Dec. 31, 2043

^[1],[8]

Aug. 2013

^[4]

$ 1,325

Line of Credit Facility, Maximum Borrowing Capacity

$ 385,645

$ 500,000

Line of Credit Facility, Increase (Decrease) to Borrowing Capacity

$ 100,000

Class B Term Note [Member]

^[1],[8]

Dec. 31, 2043

^[1],[8]

Aug. 2013

^[4]

$ 107

Total Variable Rate [Member]

12,923

85,186

Match Funded Liabilties [Member]

2,364,814

884,468

Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount

85,186

$ 2,364,814

$ 2,532,745

Advance Receivable Backed Notes Series A [Member]

^[1]

Jul. 31, 2023

Advance Receivable Backed Notes Series B [Member]

^[1]

Jul. 31, 2012

^[1]

Dec. 31, 2023

London Interbank Offered Rate (LIBOR) [Member]

^[1]

Dec. 31, 2011

Debt Instrument, Interest Rate, Basis for Effective Rate at Period End

0.17%

0.21%

London Interbank Offered Rate (LIBOR) [Member] | Advance Receivable Backed Notes Series C [Member]

^[8]

1.67%

London Interbank Offered Rate (LIBOR) [Member] | Advance Receivable Backed Notes Series E [Member]

^[2]

2.85%

London Interbank Offered Rate (LIBOR) [Member] | Advance Receivable Backed Notes Series F [Member]

^[7]

2.50%

London Interbank Offered Rate (LIBOR) [Member] | Servicer Advance Revolving Trust F [Member]

3.00%

London Interbank Offered Rate (LIBOR) [Member] | Servicer Advance Revolving Trust G [Member]

^[3]

3.00%

London Interbank Offered Rate (LIBOR) [Member] | Servicer Advance Revolving Trust H [Member] | Minimum [Member]

^[3]

3.15%

London Interbank Offered Rate (LIBOR) [Member] | Servicer Advance Revolving Trust H [Member] | Maximum [Member]

^[3]

3.00%

London Interbank Offered Rate (LIBOR) [Member] | Homeward Agency Advance Funding Trust 2012-1 [Member]

^[3]

6.75%

London Interbank Offered Rate (LIBOR) [Member] | Homeward DSF Advance Revolving Trust 2012-1 [Member]

^[3]

3.00%

London Interbank Offered Rate (LIBOR) [Member] | Class A1 Term Note [Member]

4.50%

London Interbank Offered Rate (LIBOR) [Member] | Class B Term Note [Member]

^[8]

1.75%

Commercial Paper Rate [Member] | Advance Receivable Backed Notes Series D [Member]

^[8]

4.25%

Commercial Paper Rate [Member] | Advance Receivable Backed Notes Series D [Member] | Maximum [Member]

^[6]

2.25%

July 15, 2014 [Member] | Class A1 Term Note [Member]

^[6]

3.35%

July 15, 2014 [Member] | Class A2 Variable Funding Note [Member]

2.00%

July 15, 2014 [Member] | Class B Term Note [Member]

1.91%

August 15, 2014 [Member] | Class A1 Term Note [Member]

4.86%

August 15, 2014 [Member] | Class A2 Variable Funding Note [Member]

2.25%

August 15, 2014 [Member] | Class B Term Note [Member]

2.15%

September 15, 2014 [Member] | Class A1 Term Note [Member]

5.46%

September 15, 2014 [Member] | Class A2 Variable Funding Note [Member]

2.50%

September 15, 2014 [Member] | Class B Term Note [Member]

2.38%

Other Liabilities Disclosure [Abstract]

6.07%

[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]	These notes were issued to finance the advances acquired from Bank of America, NA (BANA) in connection with the acquisition of MSRs. We repaid this facility in full in July 2013.
[3]	Advance facility assumed in the Homeward Acquisition. The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2, 2012-Servicing Advance Revolving Trust 3 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1.7 billion bridge facility which has an amortization date of August 14, 2013.
[4]	Borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. At December 31, 2013, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.
[5]	The interest margin on these notes increases to 200 bps on July 15, 2014, to 225 bps on August 15, 2014 and 250 bps on September 15, 2014.
[6]	These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs. We repaid this facility in full in October 2013.
[7]	The borrowing capacity under this facility was increased to $475.0 million in November 2013.
[8]	These notes were issued in connection with the OneWest MSR Transaction. On February 3, 2014, the maximum borrowing capacity on the 2013-VF2 notes was increased by $100.0 million to a total of $500.0 million. On February 28, 2014, the maximum borrowing capacity under the 2013-VF1 note is scheduled to decline by $250.0 million to a total of $1.3 billion.

Borrowings - Narrative (Details) - USD ($)	12 Months Ended
Borrowings - Narrative (Details) - USD ($)	Dec. 31, 2013	Jan. 31, 2012
Homeward [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,700,000,000
Participation Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Collateral	1
Securities Sold Under Agreement To Repurchase [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount	$ 24,500,000
Minimum [Member] \| Participation Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	50,000,000
Maximum [Member] \| Participation Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 90,000,000

Borrowings - Financing Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 1,284,229	$ 306,308
Financing Liabilities [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,284,229	306,308
Financing Liabilities [Member] \| Servicing [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	651,060	306,308
Financing Liabilities [Member] \| Lending [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	633,169	0
Financing Liability Mortgage Servicing Rights Pledged 2 [Member] \| Financing Liabilities [Member] \| Servicing [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	0	2,603
Financing Liability Mortgage Servicing Rights Pledged 2 [Member] \| Financing Liabilities [Member] \| Lending [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	17,593	0
Financing Liability Mortgage Servicing Rates Pledged 1 [Member] \| Financing Liabilities [Member] \| Servicing [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	651,060	303,705
HMBS - Related Borrowings [Member] \| Financing Liabilities [Member] \| Lending [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 615,576	$ 0

Borrowings - Secured Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Mar. 19, 2013	Feb. 15, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Long-term Debt, Gross	$ 1,284,229			$ 306,308
Long-term Debt	4,142,483
Secured Debt, Other	1,777,669			790,371
Other Secured Borrowings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unamortized Discount	(5,349)			(8,232)
Long-term Debt	$ 1,777,669			$ 790,371
Debt, Weighted Average Interest Rate	4.86%			4.49%
Servicing [Member] \| Other Secured Borrowings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	$ 82,493
Long-term Debt, Gross	$ 1,323,286			$ 407,695
Servicing [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	-1
Debt Instrument, Interest Rate Terms	1ML + 550 bps with a LIBOR floor of 150 bps (1)
Debt Instrument, Unused Borrowing Capacity, Amount	$ 0
Long-term Debt, Gross	0			314,229
Servicing [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	0
Long-term Debt, Gross	$ 1,290,250			0
Debt Instrument, Face Amount			$ 1,300,000
Debt Instrument, Unamortized Discount			(6,500)
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid			$ 3,300
Mandatory Principal Repayment of Net Cash Proceeds from Asset Sale, Period	180 days
Common Stock To Be Repurchased	$ 1,500,000
Servicing [Member] \| Other Secured Borrowings [Member] \| Senior Unsecured Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate Terms	1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 0
Long-term Debt, Gross	$ 0			75,000
Servicing [Member] \| Other Secured Borrowings [Member] \| Promissory Note [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	MSRs
Debt Instrument, Interest Rate Terms	1ML + 350 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 0
Long-term Debt, Gross	15,529			18,466
Servicing [Member] \| Other Secured Borrowings [Member] \| Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	82,493
Long-term Debt, Gross	$ 17,507			0
Servicing [Member] \| Option 1 [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis	the prime rate in effect on such day
Servicing [Member] \| Option 1 B [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Debt Instrument, Description of Variable Rate Basis	the federal funds rate in effect on such day
Servicing [Member] \| Option 1 C [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.75%
Debt Instrument Interest Rate At Index Floor Rate	2.25%
Debt Instrument, Description of Variable Rate Basis	the one-month Eurodollar rate (1-Month LIBOR)
Servicing [Member] \| Option 2 [Member] \| Other Secured Borrowings [Member] \| Senior Secured Term Loan 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.75%
Debt Instrument Interest Rate At Index Floor Rate	1.25%
Debt Instrument, Description of Variable Rate Basis	the one month Eurodollar rate
Lending [Member] \| Other Secured Borrowings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	$ 536,248
Long-term Debt, Gross	$ 455,020			388,075
Lending [Member] \| Other Secured Borrowings [Member] \| Participation Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	N/A
Debt Instrument, Unused Borrowing Capacity, Amount	$ 0
Long-term Debt, Gross	$ 81,268			58,938
Lending [Member] \| Other Secured Borrowings [Member] \| July 2014 - 1 [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	1ML + 175 - 275 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 58,010
Long-term Debt, Gross	$ 91,990			133,995
Lending [Member] \| Other Secured Borrowings [Member] \| September 2014 [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	1ML + 175 - 200 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 210,164
Long-term Debt, Gross	$ 89,836			107,020
Lending [Member] \| Other Secured Borrowings [Member] \| January 2013 [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	1ML + 175 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 194,341
Long-term Debt, Gross	$ 105,659			88,122
Lending [Member] \| Other Secured Borrowings [Member] \| July 2014 - 2 [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	1ML + 275bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 48,025
Long-term Debt, Gross	$ 51,975			0
Lending [Member] \| Other Secured Borrowings [Member] \| July 2014 - 3 [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	LHFS
Debt Instrument, Interest Rate Terms	1ML + 275 bps; floor of 350 bps
Debt Instrument, Unused Borrowing Capacity, Amount	$ 25,708
Long-term Debt, Gross	$ 34,292			0
Corporate Items And Other [Member] \| Other Secured Borrowings [Member] \| Securities Sold Under Agreement To Repurchase [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral	Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes
Debt Instrument, Interest Rate Terms	Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps
Debt Instrument, Maturity Date, Description	Monthly
Debt Instrument, Unused Borrowing Capacity, Amount	$ 0
Long-term Debt, Gross	4,712			2,833
Corporate Items And Other [Member] \| Other Secured Borrowings [Member] \| Total Servicing Lines Of Credit [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	618,741
Long-term Debt, Gross	1,783,018			$ 798,603
Lending [Member] \| Other Secured Borrowings [Member] \| Master Repurchase Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount	$ 300,000	$ 125,000

Borrowings - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
2014	$ 2,853,743
2015	27,219
2016	11,690
2017	11,690
2018	1,238,141
Thereafter	0
Total Balance	4,142,483
Fair Value	4,127,690
Long-term Debt, Gross	1,284,229	$ 306,308
Match Funded Liabilties [Member]
Debt Instrument [Line Items]
2014	2,364,814
2015	0
2016	0
2017	0
2018	0
Thereafter	0
Total Balance	2,364,814
Fair Value	2,364,814
Other Secured Borrowings [Member]
Debt Instrument [Line Items]
2014	488,929
2015	27,219
2016	11,690
2017	11,690
2018	1,238,141
Thereafter	0
Total Balance	1,777,669	790,371
Fair Value	1,762,876
Other Secured Borrowings [Member] \| Servicing [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,323,286	407,695
Other Secured Borrowings [Member] \| Lending [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	455,020	388,075
Financing Liabilities [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,284,229	306,308
Financing Liabilities [Member] \| Servicing [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	651,060	306,308
Financing Liabilities [Member] \| Lending [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	633,169	0
Financing Liabilities [Member] \| Lending [Member] \| HMBS - Related Borrowings [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 615,576	$ 0

Borrowings - Covenants (Details) $ in Millions	12 Months Ended
Borrowings - Covenants (Details) $ in Millions	Dec. 31, 2013 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Covenant Compliance, Consolidated Tangible Net Worth	$ 630.0
Debt Instrument, Covenant Compliance, Percent of Quarterly Net Income	65.00%
Debt Instrument, Covenant Compliance, Consolidated Tangible Net Worth at Period End	$ 863.7

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2013

Dec. 31, 2012

Due To Servicing and Subservicing Investors

^[1]

$ 192,716

$ 38,140

Accrued expenses

108,870

68,068

Due to related parties

^[2]

77,901

45,034

Foreclosure Liability

^[3]

66,948

13,430

^[4]

33,501

9,973

Checks Held For Escheat

24,392

33,259

Liability For Uncertain Tax Positions

^[5]

27,273

22,702

58,774

61,138

Other Liabilities

$ 590,375

$ 291,744

[1]	The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 28 — Commitments and Contingencies for additional information.
[2]	See Note 26 — Related Party Transactions for additional information regarding transactions with Altisource and HLSS.
[3]	We recognized $53.5 million of expense in Professional services during 2013 to establish the liability. We recognized the remaining $13.4 million of the liability as an adjustment to the initial purchase price allocation related to the Homeward Acquisition. We applied this measurement period adjustment retrospectively to our Consolidated Balance Sheet at December 31, 2012 with an offsetting increase in goodwill. See Note 28 — Commitments and Contingencies for additional information.
[4]	The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.
[5]	See Note 22 — Income Taxes for information on the liability for selected tax items.

Other Liabilities - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Professional and Contract Services Expense	$ 53.5
Homeward [Member]
Business Acquisition [Line Items]
Recognized Liability Adjustment To Initial Purchase Price Allocation Related To Business Acquisition		$ 13.4

Mezzanine Equity - Narrative (Details) - USD ($)	1 Months Ended
Mezzanine Equity - Narrative (Details) - USD ($)	Sep. 23, 2013	Dec. 27, 2012	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Preferred Stock, Shares Issued (in Shares)			0	162,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)			$ 0	$ 0.01
Debt Instrument, Convertible, Conversion Price (in Dollars per share)		$ 31.79
Number Of Preferred Shares To Be Converted	100,000
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)	3,145,640
Write Off Unamortized Discount Of Preferred Shares Converted	$ 3,500,000
Maximum [Member]
Class of Stock [Line Items]
Protective Provision, Shares Issued, Value		$ 325,000,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued (in Shares)		162,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)		$ 0.01
Preferred Stock, Dividend Rate, Percentage		3.75%
Preferred Stock, Liquidation Preference Per Share		$ 1,000
Series A Preferred Stock [Member] \| Second Anniversary [Member]
Class of Stock [Line Items]
Preferred Stock, Redemption Price, Premium		103.00%
Series A Preferred Stock [Member] \| Third Anniversary [Member]
Class of Stock [Line Items]
Preferred Stock, Redemption Price, Premium		102.00%
Series A Preferred Stock [Member] \| Fourth Anniversary [Member]
Class of Stock [Line Items]
Preferred Stock, Redemption Price, Premium		101.00%

Mezzanine Equity - Schedule of Carrying Value of Preferred Shares (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Preferred Stock [Roll Forward]
Preferred Stock					$ 153,372					$ 153,372
Discount for beneficial conversion feature		$ (416)	$ (4,401)	$ (1,086)	(1,086)	$ (60)	$ 0	$ 0	$ 0
Conversion of 100,000 Preferred Shares										(100,000)	$ 0	$ 0
Preferred Stock	$ 153,372	60,361				153,372				60,361	153,372
Series A Preferred Stock [Member]
Preferred Stock [Roll Forward]
Preferred Stock	162,000				$ 153,372					153,372
Discount for beneficial conversion feature	(8,688)
Conversion of 100,000 Preferred Shares										(100,000)
Accretion of BCF discount (Deemed dividend)	60									6,989
Preferred Stock	$ 153,372	$ 60,361				$ 153,372				$ 60,361	$ 153,372

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Oct. 31, 2013	Sep. 23, 2013	Mar. 31, 2012	Nov. 30, 2011	Nov. 09, 2011
Equity [Abstract]
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)				$ 354.4
Debt Conversion, Converted Instrument, Amount (in Dollars)			$ 56.4
Debt Conversion, Converted Instrument, Shares Issued			4,635,159
Payments for Repurchase of Equity		$ 157.9
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)		3,145,640
Number Of Preferred Shares To Be Converted		100,000
Stock Repurchase Program, Authorized Amount	$ 500.0

Note 18 EQUITY (Details) - (Table 1) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Equity [Abstract]
Unrealized losses on cash flow hedges	$ 10,026	$ 6,310
Other	125	131
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 10,151	$ 6,441

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.

Fair value of derivative assets (liabilities) at:

Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax		$ (10,026)	$ (6,310)
Derivative, Description of Variable Rate Basis	one-month LIBOR
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax		10,800	9,900
Other Comprehensive Income (Loss), Tax		700	3,600
Gain (loss) on debt redemption		(8,681)	$ (2,167)	$ 3,651
Scenario, Forecast [Member]
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax		$ 1,600

Derivative Financial Instruments and Hedging Activities - Schedule of Changes in Notional Balance of Holdings of Derivatives (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Interest Rate Lock Commitments [Member]

^[1]

$ 15,494

$ 10,795

$ 1,112,519

5,887,759

(228,806)

(5,124,849)

(895,187)

Fair value of derivative assets (liabilities) at:

751,436

Derivative Maturity Period

$ 5,781

8,433

Jan. 2014 - Apr. 2014

U S Treasury Futures [Member]

$ 109,000

85,000

(194,000)

Fair value of derivative assets (liabilities) at:

Forward Mortgage Backed Securities Trades [Member]

(1,258)

1,638,979

10,578,176

(33,372)

(4,156,314)

(7,076,821)

Fair value of derivative assets (liabilities) at:

950,648

Derivative Maturity Period

$ (1,719)

6,905

Jan. 2014 - Feb. 2014

Interest Rate Cap [Member]

$ 1,025,000

1,900,000

(56,000)

(1,001,000)

Fair value of derivative assets (liabilities) at:

1,868,000

Derivative Maturity Period

$ 168

442

Nov. 2016

Interest Rate Swap [Member]

$ 1,495,955

1,280,000

(295,604)

(2,480,351)

Fair value of derivative assets (liabilities) at:

Hedge the effect of changes in interest rates on interest expense on borrowings

$ (10,836)

$ 0

[1]	See Note 19 — Derivative Financial Instruments and Hedging Activities for additional information regarding derivatives.

Derivative Financial Instruments and Hedging Activities - Schedule of Changes in the Losses on Cash Flow Hedges Included in AOCL (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2012

^[1]

$ 15,780

Foreign Exchange Future [Member]

$ 43,311

Dec. 31, 2008

IRLC [Member]

U. S. Treasury Futures [Member]

Dec. 31, 2013

Interest Rate Cap [Member]

Dec. 31, 2013

Interest Rate Swap [Member]

May 31, 2016

Forward Mortgage Backed Securities Trades [Member]

Dec. 31, 2032

Gain On Loans Held For Sale Net [Member] | IRLC [Member]

Dec. 31, 2013

Hedge the effect of changes in interest rates on interest expense on borrowings

Expiration Date

2014

^[1]

$ 8,433

Consolidated Statement of Operations Caption

$ 523

Gain on loans held for sale, net

Gain On Loans Held For Sale Net [Member] | IRLC [Member] | Not Designated as Hedging Instrument [Member]

Hedge the effect of changes in interest rates on interest expense on borrowings

Interest Rate Cap [Member]

$ 751,436

Hedge the effect of changes in interest rates on interest expense on borrowings

Interest Rate Cap [Member] | Other Net [Member]

$ 1,868,000

$ 1,025,000

Hedge the effect of changes in interest rates on interest expense on borrowings

Expiration Date

2016

^[1]

$ 442

Consolidated Statement of Operations Caption

$ 56

Other, net

Interest Rate Cap [Member] | Other Net [Member] | Not Designated as Hedging Instrument [Member]

Hedge the effect of changes in interest rates on interest expense on borrowings

Interest Rate Swap [Member]

$ 1,868

Hedge the effect of changes in interest rates on interest expense on borrowings

Interest Rate Swap [Member] | Gain On Loans Held For Sale Net [Member] | Forward MBS Trades [Member]

$ 0

$ 1,495,955

Hedge the effect of changes in interest rates on interest expense on borrowings

Expiration Date

2014

^[1]

$ 6,905

Consolidated Statement of Operations Caption

$ 42,732

Gain on loans held for sale, net

Interest Rate Swap [Member] | Gain On Loans Held For Sale Net [Member] | Forward MBS Trades [Member] | Not Designated as Hedging Instrument [Member]

Hedge the effect of changes in interest rates on interest expense on borrowings

Derivative Instruments and Hedging Activities Disclosure [Abstract]

$ 950,648

[1]	Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.

Derivative Financial Instruments and Hedging Activities - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of income taxes	$ 10,151	$ 6,441
Other	4	4	$ 5
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	(10,026)	(6,310)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of income taxes	10,151	6,441	7,896	$ 9,392
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	12,363	8,315	615
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	(657)	41	(1,393)
Derivative Instruments, Gain (Loss) Recognized in Income, Gain (Loss) on Termination of Hedge	(10,816)	(10,592)	(1,544)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	890	(2,236)	(2,322)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent	2,825	786	843
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	3,715	(1,450)	(1,479)
Other	$ (5)	$ (5)	$ (17)

Derivative Financial Instruments and Hedging Activities - Schedule of Statements of Operations Related to Derivative Financial Instruments (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Gains (losses) on economic hedges

$ (2,861)

$ 7,331

$ (4,488)

Ineffectiveness of cash flow hedges

(657)

(1,393)

Write-off of losses in AOCL for a discontinued hedge relationship

^[1]

(10,816)

(4,633)

(1,545)

Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS

^[2]

(5,958)

Derivative, Gain (Loss) on Derivative, Net

$ (14,334)

$ (3,219)

$ (7,426)

[1]	Includes the write off in 2012 and 2013 of the remaining of unamortized losses when a borrowing under the related advance financing facility was repaid in full, and the facility was terminated.
[2]	See Note 4 — Sales of Advances and MSRs.

Interest Income - Schedule of Components of Interest Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other Income and Expenses [Abstract]
Loans held for sale	$ 18,563	$ 2,946	$ 2,291
Other	3,792	5,383	6,585
Interest Income	$ 22,355	$ 8,329	$ 8,876

Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Match Funded Liabilties [Member]

$ 412,842

$ 223,455

$ 132,770

Financing Liabilities [Member]

75,979

122,292

93,051

Lines Of Credit And Other Secured Borrowings [Member]

^[1],[2]

246,241

54,710

Debt Securities Convertible Notes [Member]

81,851

41,510

32,985

Capital Securities [Member]

^[3]

153

1,834

^[4]

1,894

2,840

Other [Member]

8,771

2,896

$ 2,060

HLSS [Member]

Financing Interest Expense

$ 54,710

$ 245,842

$ 54,710

[1]	(1)Includes interest expense of $245.8 million and $54.7 million in 2013 and 2012, respectively, related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below:
[2]	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues. See Note 2 — Securitizations and Variable Interest Entities for additional information.
[3]	We redeemed the remaining 3.25% Convertible Notes outstanding on March 28, 2012.
[4]	We redeemed the remaining 10.875% Capital Securities outstanding on August 31, 2012.

Interest Expense - Schedule of Related Party Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Interest Expense [Line Items]
Servicing fees collected on behalf of HLSS		$ (1,823,559)	$ (804,407)	$ (458,838)
HLSS [Member]
Schedule of Interest Expense [Line Items]
Servicing fees collected on behalf of HLSS		633,377	117,789
Less: Subservicing fee retained by Ocwen		317,723	50,162
Net servicing fees remitted to HLSS		315,654	67,627
Less: Reduction in financing liability		69,812	12,917
Interest expense on HLSS financing liability	$ 54,710	$ 245,842	$ 54,710

Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	35.00%
Provision for valuation allowance on deferred tax assets	$ 15,764	$ 0	$ 0
Income Tax Examination, Penalties and Interest Expense	2,000	(100)	$ 1,300
Income Tax Examination, Penalties and Interest Accrued	3,600	1,600
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	23,700	21,100
Operating Loss Carryforwards	100,400
Deferred Tax Assets, Capital Loss Carryforwards	843	665
Operating Loss Carryforwards, Valuation Allowance	$ 44,400
Economic Development Commission Benefit, Term	30 years
Economic Development Commission Benefit, Tax Impact	$ 103,100	$ 25,600
Economic Development Commission Benefit, Tax Impact On Diluted Earnings Per Share	$ 0.74	$ 0.19

- Schedule of Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Domestic	$ 76,957	$ 176,075	$ 118,708
Foreign	258,266	81,433	4,287
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 335,223	$ 257,508	$ 122,995

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current:
Federal									$ 58,507	$ 10,621	$ 13,894
State									14,691	(759)	(195)
Foreign									15,545	2,968	1,079
Current Income Tax Expense (Benefit)									88,743	12,830	14,778
Deferred:
Federal									(53,711)	62,704	29,440
State									(4,325)	(431)	368
Foreign									(5,397)	1,482	86
Provision for valuation allowance on deferred tax assets									15,764	0	0
Deferred Income Tax Expense (Benefit)									(47,669)	63,755	29,894
Total	$ 14,824	$ 9,273	$ 10,789	$ 6,188	$ 11,138	$ 29,346	$ 25,331	$ 10,770	$ 41,074	$ 76,585	$ 44,672

Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Expected income tax expense at statutory rate									$ 117,328	$ 90,127	$ 43,049
Differences between expected and actual income tax expense:
State tax, after Federal tax benefit									5,316	(1,184)	254
Tax Effects on Select Activities									12,218	5,558	1,611
Permanent differences									(636)	15	61
Foreign tax differential									(107,621)	(17,816)	(716)
Provision-to-return and other									15,764	0	0
Other									(1,295)	(115)	413
Total	$ 14,824	$ 9,273	$ 10,789	$ 6,188	$ 11,138	$ 29,346	$ 25,331	$ 10,770	$ 41,074	$ 76,585	$ 44,672

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 35,370	$ 16,068
Deferred Tax Assets, Delinquent Servicing Fees	36,480	19,559
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Legal Settlements	27,320	5,411
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves	20,446	59,273
Net unrealized gains and losses on securities	0	2,702
Partnership losses	11,085	11,036
Bad debt and allowance for loan losses	6,397	6,551
Accrued other liabilities	7,452	2,662
Interest rate swaps	743	3,813
Tax residuals and deferred income on tax residuals	3,963	4,175
Stock-based compensation expense	2,956	3,127
Accrued incentive compensation	10,037	6,210
Foreign deferred assets	2,802	3,055
Accrued lease termination costs	1,085	1,887
Intangible asset amortization	4,728	2,070
Valuation allowance on real estate	767	386
Capital losses	843	665
Other	10,560	7,339
Deferred Tax Assets, Gross	183,034	155,989
Mortgage Servicing Rights Amortization	(50,632)	(56,265)
Other	80	2,831
Deferred Tax Liabilities, Gross	50,712	59,096
Deferred Tax Assets (Liability), Gross	132,322	96,893
Valuation allowance	(15,764)	0
Net deferred tax assets	$ 116,558	$ 96,893

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Balance at January 1	$ 22,702	$ 4,524
Additions based on tax positions related to current year	0	17,396
Additions for tax positions of prior years	4,944	875
Lapses in statutes of limitation	(373)	(93)
Balance at December 31	$ 27,273	$ 22,702

Basic and Diluted Earnings per Share - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2012
Debt Instrument [Line Items]
Stated percentage of convertible notes			3.25%
Debt Conversion, Converted Instrument, Shares Issued	4,635,159
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Stated percentage of convertible notes				3.25%
Debt Conversion, Converted Instrument, Shares Issued		4,635,159
Debt Conversion, Original Debt, Amount		$ 56.4

Basic and Diluted Earnings per Share - Schedule of Basic EPS to Diluted EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Basic EPS:

Net income attributable to Ocwen common stockholders

$ 282,129

$ 180,778

$ 78,331

Weighted average shares of common stock (in Shares)

135,678,088

133,912,643

104,507,055

Basic (in Dollars per share)

$ 0.77

$ 0.45

$ 0.55

$ 0.31

$ 0.48

$ 0.38

$ 0.33

$ 0.15

$ 2.08

$ 1.35

$ 0.75

Diluted EPS:

Net income attributable to Ocwen common stockholders

$ 282,129

$ 180,778

$ 78,331

Preferred stock dividends

^[1]

Interest expense on Convertible Notes, net of income tax

^[2]

107

1,187

Adjusted net income attributable to Ocwen

$ 282,129

$ 180,885

$ 79,518

Dilutive weighted average shares of common stock (in Shares)

139,800,506

138,521,279

111,855,961

Diluted (usd per share)

$ 0.74

$ 0.44

$ 0.53

$ 0.31

$ 0.47

$ 0.37

$ 0.32

$ 0.14

$ 2.02

$ 1.31

$ 0.71

Stock options excluded from the computation of diluted EPS:

Anti-dilutive Securities (in Shares)

^[3]

143,125

27,031

Market Based [Member]

Stock options excluded from the computation of diluted EPS:

Anti-dilutive Securities (in Shares)

^[4]

547,500

1,535,000

468,750

Preferred Stock [Member]

Debt Securities Convertible Notes [Member]

^[1]

$ 0

Employee Stock Option [Member]

^[2]

1,009

4,637

Common Stock Awards [Member]

4,110

3,593

2,712

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 12

$ 6

$ 0

[1]	2013 2012 2011Basic EPS: Net income attributable to Ocwen common stockholders$282,129 $180,778 $78,331 Weighted average shares of common stock135,678,088 133,912,643 104,507,055 Basic EPS$2.08 $1.35 $0.75 Diluted EPS: Net income attributable to Ocwen common stockholders$282,129 $180,778 $78,331Preferred stock dividends (1)— — —Interest expense on 3.25% Convertible Notes, net of income tax (2)— 107 1,187Adjusted net income attributable to Ocwen$282,129 $180,885 $79,518 Weighted average shares of common stock135,678,088 133,912,643 104,507,055Effect of dilutive elements: Preferred Shares (1)— — —3.25% Convertible Notes (2)— 1,008,891 4,637,224Stock options4,110,355 3,593,419 2,711,682Common stock awards12,063 6,326 —Dilutive weighted average shares of common stock139,800,506 138,521,279 111,855,961 Diluted EPS$2.02 $1.31 $0.71 Stock options excluded from the computation of diluted EPS: Anti-dilutive(3)— 143,125 27,031Market-based(4)547,500 1,535,000 468,750 (1)The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. For purposes of computing diluted EPS, we assume the conversion of the Preferred Shares into shares of common stock unless the effect is anti-dilutive. Conversion of the Preferred Shares has not been assumed for 2013 and 2012 because the effect would have been antidilutive. There were no Preferred Shares outstanding during 2011.
[2]	Prior to the redemption of the 3.25% 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 3.25% Convertible Notes, net of income tax, were added back to net income. We assumed the conversion of the 3.25% Convertible Notes into shares of common stock unless the effect was anti-dilutive. On March 28, 2012, we issued 4,635,159 shares of common stock upon conversion of $56.4 million of the 3.25% 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 Ocwen’s stock price and an annualized rate of return to investors. See Note 24 — Employee Compensation and Benefit Plans for additional information regarding these market-condition options.

Employee Compensation and Benefit Plan - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

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

$ 4.2

$ 0.4

$ 0.2

Compensation

$ 28.4

$ 7.2

$ 9.5

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)

8,851,599

Share Based Award Contractual Term At Issuance

10 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)

^[1]

50,000

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]

$ 51.70

$ 23.92

$ 12.83

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value

$ 35.3

$ 23.9

$ 4.1

Shares Delivered As Payment For Exercise of Options (in Shares)

138,553

33,605

324,248

Option Exercises Net of Tax Withholding (in Shares)

652,015

1,082,944

410,977

Number of Market-based Options Not Meeting Performance Criteria (in Shares)

547,500

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

$ 351.0

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

$ 280.5

Number of Market-based Options Outstanding (in Shares)

5,933,125

Number of Market-based Options Exercisable (in Shares)

3,960,002

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

5 years 8 months 12 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term

4 years 8 months 12 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value

$ 4.7

$ 2.2

$ 1.3

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options

$ 15.7

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition

2 years 4 days

Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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

[1]

Stock options granted in 2012 include 2,000,000 options 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 26 — Related Party Transactions for additional information regarding Mr. Erbey’s stock and stock option holdings.

Employee Compensation and Benefit Plan - Schedule of Stock Options Vesting (Details)	12 Months Ended
	Dec. 31, 2013
Service Condition:
Percent of Options Awarded	100.00%
Service Condition Awards [Member]
Service Condition:
Percent of Options Awarded	25.00%
Award vesting period	4 years
Vesting Period	Ratably over four years (¼ on each of the four anniversaries of the grant date)
Performance Shares [Member]
Service Condition:
Percent of Options Awarded	50.00%
Award vesting period	3 years
Vesting Period	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 Awards [Member]
Service Condition:
Percent of Options Awarded	25.00%
Award vesting period	3 years
Vesting Period	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)

Employee Compensation and Benefit Plan - Schedule of Stock Option Activity (Details) - $ / shares

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

8,938,179

7,894,728

8,084,953

Exercisable at end of year

$ 9.93

$ 5.48

$ 5.03

^[1],[2],[3]

5,733,864

5,569,432

4,947,228

Exercisable at end of year (in Dollars per share)

^[1],[2],[3]

$ 6.53

$ 5.04

$ 4.91

Granted

^[4]

50,000

2,160,000

545,000

Granted (in Dollars per share)

^[4]

$ 51.70

$ 23.92

$ 12.83

Forfeited

(15,000)

Forfeited (in Dollars per share)

$ 15.27

8,938,179

7,894,728

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 9.93

$ 5.48

Stock Options [Member]

^[1],[2]

8,938,179

7,894,728

Exercised (in Dollars per share)

^[1],[2]

$ 9.93

$ 5.48

Exercised

^[5],[6]

(790,568)

(1,116,549)

(735,225)

^[5],[6]

$ 5.35

$ 3.56

$ 6.01

^[1],[2]

8,182,611

8,938,179

7,894,728

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[1],[2]

$ 10.62

$ 9.93

$ 5.48

[1]	At December 31, 2013, the weighted average remaining contractual term of options outstanding and options exercisable was 5.7 years and 4.7 years, respectively.
[2]	Excluding 547,500 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, 2013 was $351.0 million and $280.5 million, respectively. A total of 5,933,125 market-based options were outstanding at December 31, 2013, of which 3,960,002 were exercisable.
[3]	The total fair value of the stock options that vested and became exercisable during 2013, 2012 and 2011, based on grant-date fair value, was $4.7 million, $2.2 million and $1.3 million, respectively.
[4]	Stock options granted in 2012 include 2,000,000 options 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 26 — Related Party Transactions for additional information regarding Mr. Erbey’s stock and stock option holdings.
[5]	In connection with the exercise of stock options during 2013, 2012 and 2011, employees delivered 138,553, 33,605 and 324,248 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 652,015, 1,082,944 and 410,977 net shares of stock were issued in 2013, 2012 and 2011, respectively, related to the exercise of stock options.
[6]	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 $35.3 million, $23.9 million and $4.1 million for 2013, 2012 and 2011, respectively.

Employee Compensation and Benefit Plan - Schedule of Valuation Assumptions (Details)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Black-Scholes [Member]

Risk-free interest rate

2.32%

1.20 – 1.60%

0.0157

Expected stock price volatility

^[1]

44%

40% – 42%

0.41

Expected option life (in years)

^[2]

6.50

Fair value

$24.32

$6.49 – $10.48

5.51

Binomial [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Risk-free interest rate

0.24 - 3.56%

0.70% – 3.06%

0.35% – 2.74%

Expected stock price volatility

^[1]

33 - 44%

6.87% – 42%

30% – 41%

Expected option life (in years)

^[2]

4.50 - 5.75

4.50 – 6.50

4.25 – 5.75

Contractual life (in years)

Fair value

$18.04 - 21.38

$3.41 – $8.87

$4.66 – $4.09

[1]

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

[2]

Employee Compensation and Benefit Plan - Schedule of Equity-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Equity-based compensation expense:
Excess tax benefit related to share-based awards	$ 21,244	$ 11,031	$ 2,142
Stock Options [Member]
Equity-based compensation expense:
Awards	5,388	2,776	926
Stock Distribution [Member]
Equity-based compensation expense:
Awards	$ 260	$ 158	$ 0

Business Segment Reporting - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2011 USD ($)
Segment Reporting [Abstract]
Other Nonrecurring Expense	$ 50,340

Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

^[1]

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

$ 340,876

$ 346,260

$ 371,508

$ 242,650

$ 99,097

$ 92,793

$ 85,904

$ 86,113

$ 1,301,294

$ 363,907

$ 239,547

22,355

8,329

8,876

Income (loss) from continuing operations before income taxes

(412,842)

(223,455)

(132,770)

335,223

257,508

122,995

7,873,770

5,685,962

7,873,770

5,685,962

Servicing [Member]

^[2],[3]

1,895,921

840,630

494,834

^[2],[4]

1,096,084

344,315

231,201

^[5]

799,837

496,315

263,633

1,599

110

(398,733)

(221,948)

(132,574)

^[2],[3]

(28,292)

(13)

4,711

Income (loss) from continuing operations before income taxes

(425,426)

(221,952)

(127,753)

374,411

274,363

135,880

6,241,757

4,575,489

6,241,757

4,575,489

4,301,371

Lending [Member]

^[2],[3]

120,899

356

^[2],[4]

98,194

409

^[5]

22,705

(53)

16,295

309

(13,508)

(514)

^[2],[3]

10,132

Income (loss) from continuing operations before income taxes

12,919

(205)

35,624

(258)

Corporate Items and Other [Member]

1,195,812

476,434

1,195,812

476,434

^[2],[3]

22,092

5,122

2,346

^[2],[4]

107,188

19,667

8,971

^[5]

(85,096)

(14,545)

(6,625)

4,461

8,011

8,766

(601)

(993)

(196)

^[2],[3]

6,424

(9,070)

(14,830)

Income (loss) from continuing operations before income taxes

10,284

(2,052)

(6,260)

(74,812)

(16,597)

(12,885)

Corporate Eliminations [Member]

436,201

634,039

436,201

634,039

426,653

^[2],[3]

(639)

(905)

(1,289)

^[2],[4]

(172)

(484)

(625)

^[5]

(467)

(421)

(664)

^[2],[3]

467

421

664

Income (loss) from continuing operations before income taxes

467

421

664

Business Segments Consolidated [Member]

^[2],[3]

2,038,273

845,203

495,891

^[2],[4]

1,301,294

363,907

239,547

^[5]

736,979

481,296

256,344

22,355

8,329

8,876

(412,842)

(223,455)

(132,770)

^[2],[3]

(11,269)

(8,662)

(9,455)

Income (loss) from continuing operations before income taxes

(401,756)

(223,788)

(133,349)

335,223

257,508

122,995

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

$ 7,873,770

$ 5,685,962

$ 7,873,770

$ 5,685,962

$ 4,728,024

[1]	Operating expenses for the second quarter of 2013 include a $52.8 million charge recorded in connection with an agreement with the CFPB, various state attorneys general and other agencies regarding certain foreclosure-related matters. See Note 28 — Commitments and Contingencies for additional information regarding this agreement.
[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.
[3]	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.
[4]	Depreciation and amortization expense are as follows: Servicing Lending Corporate Items and Other Business Segments ConsolidatedFor the year ended December 31, 2013: Depreciation expense$13,525 $320 $10,400 $24,245Amortization of MSRs282,526 255 — 282,781Amortization of debt discount1,412 — — 1,412Amortization of debt issuance costs – SSTL4,395 — — 4,395 For the year ended December 31, 2012: Depreciation expense$1,469 $8 $4,243 $5,720Amortization of MSRs72,897 — — 72,897Amortization of debt discount3,259 — — 3,259Amortization of debt issuance costs – SSTL3,718 — — 3,718 For the year ended December 31, 2011: Depreciation expense$2,410 $— $1,750 $4,160Amortization of MSRs42,996 — — 42,996Amortization of debt discount8,853 — — 8,853Amortization of debt issuance costs – SSTL9,764 — — 9,764
[5]	Operating expenses for 2011 include non-recurring transaction-related expenses associated with the Litton Acquisition of $50.3 million recorded in the Servicing segment.

Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Depreciation expense	$ 24,245	$ 5,720	$ 4,160
Amortization of MSRs	282,781	72,897	42,996
Amortization of debt discount	1,412	3,259	8,853
Amortization of debt issuance costs – senior secured term loan	4,395	3,718	9,764
Servicing [Member]
Segment Reporting Information [Line Items]
Depreciation expense	13,525	1,469	2,410
Amortization of MSRs	282,526	72,897	42,996
Amortization of debt discount	1,412	3,259	8,853
Amortization of debt issuance costs – senior secured term loan	4,395	3,718	9,764
Lending [Member]
Segment Reporting Information [Line Items]
Depreciation expense	320	8	0
Amortization of MSRs	255
Corporate Items and Other [Member]
Segment Reporting Information [Line Items]
Depreciation expense	10,400	4,243	1,750
Amortization of debt discount	$ 0	$ 0	$ 0

Related Party Transactions - Narrative (Details) - USD ($)

1 Months Ended

4 Months Ended

9 Months Ended

12 Months Ended

Apr. 12, 2013

Mar. 29, 2013

Dec. 27, 2012

Dec. 11, 2012

Sep. 23, 2013

Dec. 27, 2012

Dec. 21, 2012

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Sep. 30, 2013

Feb. 14, 2013

Dec. 31, 2010

8,938,179

7,894,728

8,084,953

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)

^[1],[2],[3]

5,569,432

5,733,864

5,569,432

4,947,228

Payments to Acquire Equity Method Investments

$ 13,400,000

$ (31,495,000)

$ (62,355,000)

$ (31,495,000)

Preferred Stock, Shares Issued (in Shares)

$ 2,289,709,000

$ 764,824,000

$ 2,670,491,000

162,000

Debt Instrument, Convertible, Conversion Price

$ 31.79

Preferred Stock, Shares Outstanding

162,000

Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)

3,145,640

Payments for Repurchase of Equity

$ 157,900,000

Series A Preferred Stock [Member]

Preferred Stock, Shares Issued (in Shares)

162,000

Preferred Stock, Dividend Rate, Percentage

3.75%

Preferred Stock, Shares Outstanding

100,000

Altisource [Member]

Service Agreement, Automatic Renewals, Period

1 year

Proceeds from sale of businesses

$ 128,800,000

$ 75,000,000

$ (5,971,000)

$ (3,843,000)

$ (5,971,000)

Altisource [Member] | Senior Unsecured Term Loan Facility [Member]

Debt Instrument, Description of Variable Rate Basis

one-month Eurodollar Rate (1-Month LIBOR)

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

6.75%

1.50%

Interest Expense, Related Party

$ 800,000

100,000

Altisource [Member] | Homeward Residential Holdings, Inc. [Member]

Proceeds from sale of businesses

$ 87,000,000

Altisource [Member] | ResCap [Member]

Proceeds from sale of businesses

$ 128,800,000

Correspondent One [Member]

Noncontrolling Interest, Ownership Percentage by Parent

49.00%

HLSS [Member]

(25,524,000)

$ (59,505,000)

(25,524,000)

Altisource Asset Management Corporation [Member]

943,000

Altisource Residential Lp [Member]

$ 50,000

$ 0

Term Of Agreement

15 years

Sale Of Non Performing Residential Mortgage Loan

$ 64,400,000

Executive Chairman of the Board of Directors Chairman [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

4,620,498

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)

2,845,498

Real Estate, Other Acquisitions (in Dollars)

$ 6,500,000

Executive Chairman of the Board of Directors Chairman [Member] | Ocwen [Member]

13.00%

Executive Chairman of the Board of Directors Chairman [Member] | Altisource [Member]

26.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

873,501

Executive Chairman of the Board of Directors Chairman [Member] | HLSS [Member]

1.00%

Executive Chairman of the Board of Directors Chairman [Member] | Altisource Asset Management Corporation [Member]

Ownership Percentage By Related Party

27.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

87,350

Executive Chairman of the Board of Directors Chairman [Member] | Altisource Asset Management Corporation [Member] | Special Equity Incentive Plan 2012 [Member]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

52,589

Executive Chairman of the Board of Directors Chairman [Member] | Altisource Residential Lp [Member]

Ownership Percentage By Related Party

5.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)

291,167

President and Chief Executive Officer and Director [Member] | Altisource Asset Management Corporation [Member] | Special Equity Incentive Plan 2012 [Member]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

29,216

Business Acquisition, Cost of Acquired Entity, Cash Paid

764,824,000

603,700,000

Business Acquisition, Equity Interest Issued or Issuable, Value Assigned

$ 162,000,000

[1]	At December 31, 2013, the weighted average remaining contractual term of options outstanding and options exercisable was 5.7 years and 4.7 years, respectively.
[2]	Excluding 547,500 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, 2013 was $351.0 million and $280.5 million, respectively. A total of 5,933,125 market-based options were outstanding at December 31, 2013, of which 3,960,002 were exercisable.
[3]	The total fair value of the stock options that vested and became exercisable during 2013, 2012 and 2011, based on grant-date fair value, was $4.7 million, $2.2 million and $1.3 million, respectively.

Related Party Transactions - Schedule of Revenue and Expenses Related to Various Service Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Altisource [Member]
Revenues and Expenses:
Revenues	$ 22,739	$ 16,532	$ 12,242
Expenses	55,119	28,987	23,226
HLSS [Member]
Revenues and Expenses:
Revenues	631	195	0
Expenses	2,018	2,432	0
AAMC [Member]
Revenues and Expenses:
Revenues	1,238	0	0
Residential [Member]
Revenues and Expenses:
Revenues	$ 2,436	$ 0	$ 0

Related Party Transactions - Schedule of Amounts Receivable or Payable (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 27, 2012
Net Receivable (Payable)
Net Receivable (Payable)	$ (62,355,000)	$ (31,495,000)
Altisource [Member]
Net Receivable (Payable)
Net Receivable (Payable)	(3,843,000)	(5,971,000)	$ 75,000,000
HLSS [Member]
Net Receivable (Payable)
Net Receivable (Payable)	(59,505,000)	(25,524,000)
AAMC [Member]
Net Receivable (Payable)
Net Receivable (Payable)	943,000	0
Residential [Member]
Net Receivable (Payable)
Net Receivable (Payable)	$ 50,000	$ 0

Commitments and Contingencies - Narrative (Details)			1 Months Ended	12 Months Ended
Commitments and Contingencies - Narrative (Details)	Jan. 24, 2014 Loan	Dec. 19, 2013 USD ($)	Feb. 28, 2014 USD ($) Loan	Dec. 31, 2013 USD ($) ft² Loan	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jan. 22, 2014 USD ($)	Feb. 09, 2012 USD ($)	Jul. 31, 2010 subpoena claim
Loss Contingencies [Line Items]
Loss Contingency, Subpoenas Received, Number \| subpoena									2
Loss Contingency, Pending Claims, Number \| claim									10
National Mortgage Settlement								$ 25,000,000,000
Servicing Assets Unpaid Loan Balance				$ 200,000,000
Secured Debt, Other				1,777,669,000	$ 790,371,000
Provided Or Assumed Representation And Warranty Obligations Of Unpaid Principal Balance				89,100,000,000
Warranty Repurchase Demands Unpaid Principal Balance				$ 158,800,000
Warranty Repurchase Demands Number Of Loans \| Loan				753
Foreign Facilities [Member]
Loss Contingencies [Line Items]
Rent expense				$ 27,400,000	$ 14,700,000	$ 5,600,000
Altisource [Member]
Loss Contingencies [Line Items]
Sublease area \| ft²				2,094
Aged Originating Before 2000 [Member]
Loss Contingencies [Line Items]
Principal Amount Outstanding on Loans Held-for-sale or Securitization or Asset-backed Financing Arrangement				$ 36,000,000
Secured Debt, Other				$ 35,886,000
Unfavorable Regulatory Action [Member]
Loss Contingencies [Line Items]
Loss Contingency, Oversight Monitor Period				3 years
Loss Contingency, Consumer Relief Fund		$ 127,300,000
Loss Contingency Accrual		$ 66,900,000
Loss Contingency, Principal Forgiveness Modification Program, Term		3 years
Unfavorable Regulatory Action [Member] \| Minimum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Principal Forgiveness Modification Program, Aggregate Amount		$ 2,000,000,000
Wells Fargo [Member] \| Subsequent Event [Member]
Loss Contingencies [Line Items]
Mortgage Loans on Real Estate, Number of Acquired Loans On Hold \| Loan	184,000		184,000
Acquisitions			$ 39,000,000,000				$ 39,000,000,000

Commitments and Contingencies - Schedule of Indemnification Obligations (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2013

USD ($)

Indemnification Obligations Liability [Roll Forward]

Balance at December 31, 2012

$ 38,140

^[1]

Provision for representation and warranty obligations

18,154

New production reserves

1,325

Obligations assumed in connection with MSR and servicing business acquisitions

190,658

Charge-offs and other

(55,561)

^[2]

Balance at December 31, 2013

$ 192,716

^[1]

[1]	The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 28 — Commitments and Contingencies for additional information.
[2]	Includes principal and interest losses realized in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any.

Commitments and Contingencies - Schedule of Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2014	$ 19,798
2015	20,087
2016	18,331
2017	11,249
2018	4,453
Thereafter	0
Total minimum lease payments	$ 73,918

Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Quarterly Financial Information Disclosure [Abstract]

Consumer Relief Expense

$ 52,800

$ 555,955

$ 531,240

544,812

$ 406,266

$ 236,590

$ 232,700

$ 211,381

$ 164,532

$ 2,038,273

$ 845,203

$ 495,891