View Filing Data

Restricted cash (amounts related to variable interest entities (VIEs) of $16,499 and $20,968)

$ 263,188

$ 329,132

63,379

67,878

1,400,191

1,457,149

Match funded advances (related to VIEs)

225,360

249,382

868,720

937,294

Loans held for sale ($153,140 and $176,525 carried at fair value)

222,687

242,622

Loans held for investment, at fair value (amounts related to VIEs of $26,237 and $26,520)

5,753,154

5,498,719

197,043

198,262

Other assets ($7,639 and $7,568 carried at fair value)(amounts related to VIEs of $2,214 and $2,874)

69,316

33,417

474,172

379,567

794

HMBS-related borrowings, at fair value

9,537,210

9,394,216

Liabilities

^[1]

5,614,688

5,380,448

Other financing liabilities ($975,778 and $1,057,671 carried at fair value) (amounts related to VIEs of $24,562 and $24,815)

649,384

778,284

1,043,698

1,127,613

Other secured borrowings, net

436,982

382,538

Other liabilities ($4,209 and $4,986 carried at fair value)

448,143

448,727

832,721

703,636

18,265

Total liabilities

9,025,616

8,839,511

Commitments and Contingencies (Notes 20 and 21)

Ocwen Financial Corporation (Ocwen) stockholders’ equity

Common stock, $.01 par value; 200,000,000 shares authorized; 133,946,055 and 133,912,425 shares issued and outstanding at March 31, 2019 and December 31, 2018 respectively

1,339

Additional paid-in capital

555,046

554,056

Retained earnings (accumulated deficit)

(40,911)

3,567

Accumulated other comprehensive loss, net of income taxes

(3,880)

(4,257)

Total stockholders’ equity

511,594

554,705

Total liabilities and stockholders’ equity

$ 9,537,210

$ 9,394,216

[1]	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.

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Restricted cash, amounts related to VIEs

$ 16,499

$ 20,968

153,140

^[1]

176,525

Other assets, at fair value

5,753,154

5,498,719

7,639

7,568

Other assets, amounts related to VIEs

2,214

2,874

Other financing liabilities, at fair value

1,043,698

1,127,613

975,778

1,057,671

Other liabilities, at fair value

$ 4,209

$ 4,986

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized (in shares)

200,000,000

Common stock, shares issued (in shares)

133,946,055

133,912,425

Common stock, shares outstanding (in shares)

133,946,055

133,912,425

Residential Mortgage Backed Securitization Trusts [Member]

$ 26,237

$ 26,520

Servicing and subservicing fees

$ 24,562

$ 24,815

[1]	At March 31, 2019 and 2018, the balances include $(7.8) million and $3.8 million, respectively, of fair value adjustments.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Revenue

$ 255,863

$ 222,138

Gain on loans held for sale, net

17,595

19,800

Other revenue, net

30,430

18,319

Total revenue

303,888

260,257

Expenses

MSR valuation adjustments, net

108,998

17,129

Compensation and benefits

94,696

78,075

Servicing and origination

28,698

31,418

Technology and communications

24,435

22,803

Occupancy and equipment

16,589

12,614

Professional services

3,441

37,770

Other expenses

3,248

6,692

Total expenses

^[1]

280,105

^[2]

206,501

Other income (expense)

4,558

2,700

(70,445)

(50,810)

(285)

1,305

(681)

(64,867)

(48,791)

Net income attributable to non-controlling interests

(41,084)

4,965

Income tax expense

3,410

2,348

Net income (loss)

(44,494)

2,617

(69)

Net income (loss) attributable to Ocwen stockholders

$ (44,494)

$ 2,548

Income (loss) per share attributable to Ocwen stockholders

Basic (in USD per share)

$ (0.33)

$ 0.02

Diluted (in USD per share)

$ (0.33)

$ 0.02

Weighted average common shares outstanding

Basic (in shares)

133,918,986

133,121,465

Diluted (in shares)

133,918,986

134,606,929

[1]

Compensation and benefits expense in the Corporate Items and Other segment for the three months ended March 31, 2019 and 2018 includes $18.5 million and $5.6 million, respectively, of severance expense attributable to PHH integration-related headcount reductions of primarily U.S.-based employees in 2019 and headcount reductions in connection with our strategic decisions to exit the automotive capital services business and the forward lending correspondent and wholesale channels in late 2017 and early 2018, as well as our overall efforts to reduce costs.

[2]

In the Corporate Items and Other segment for the three months ended March 31, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million of amounts previously recognized as expense.

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Statement of Comprehensive Income [Abstract]

Net income (loss)

$ (44,494)

$ 2,617

Other comprehensive income, net of income taxes:

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

^[1]

Change in unfunded pension plan obligation liability

337

Comprehensive income (loss)

(44,117)

2,658

Comprehensive income attributable to non-controlling interests

(69)

Comprehensive income (loss) attributable to Ocwen stockholders

$ (44,117)

$ 2,589

[1]	These losses are reclassified to Other, net in the unaudited consolidated statements of operations.

Cash flows from operating activities

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss), Net of Taxes [Member]	Non-controlling Interest in Subsidiaries [Member]
Beginning Balance at Dec. 31, 2017	$ 546,874	$ 1,315	$ 547,057	$ (2,083)	$ (1,249)	$ 1,834
Beginning Balance (in shares) at Dec. 31, 2017		131,484,058
Net income (loss)	2,617			2,548		69
Cumulative effect of fair value election - Mortgage servicing rights	82,043			82,043
Cumulative effect of adoption of FASB Accounting Standards Update No. 2016-16	(5,621)		0	(5,621)
Issuance of common stock	5,719	$ 19	5,700
Issuance of common stock (in shares)		1,875,000
Equity-based compensation and other	669	$ 0	669
Equity-based compensation and other (in shares)		46,527
Other comprehensive income, net of income taxes	41				41
Ending Balance at Mar. 31, 2018	632,342	$ 1,334	553,426	76,887	(1,208)	1,903
Ending Balance (in shares) at Mar. 31, 2018		133,405,585
Beginning Balance at Dec. 31, 2018	$ 554,705	$ 1,339	554,056	3,567	(4,257)	$ 0
Beginning Balance (in shares) at Dec. 31, 2018	133,912,425	133,912,425
Net income (loss)	$ (44,494)			(44,494)
Cumulative effect of adoption of FASB Accounting Standards Update No. 2016-02	16			16
Equity-based compensation and other	990	$ 0	990
Equity-based compensation and other (in shares)		33,630
Other comprehensive income, net of income taxes	377				377
Ending Balance at Mar. 31, 2019	$ 511,594	$ 1,339	$ 555,046	$ (40,911)	$ (3,880)
Ending Balance (in shares) at Mar. 31, 2019	133,946,055	133,946,055

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Net income (loss)

$ (44,494)

$ 2,617

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

MSR valuation adjustments, net

108,998

17,129

Gain on sale of mortgage servicing rights, net

(369)

(958)

Provision for bad debts

9,170

15,336

Depreciation

8,551

6,527

Equity-based compensation expense

857

575

Gain on valuation of financing liability

(26,237)

(16,712)

Net gain on valuation of mortgage loans held for investment and HMBS-related borrowings

(23,487)

(8,975)

Gain on loans held for sale, net

(11,112)

(8,832)

Origination and purchase of loans held for sale

(304,182)

(358,078)

Proceeds from sale and collections of loans held for sale

305,322

383,734

Changes in assets and liabilities:

Decrease in advances and match funded assets

91,114

71,096

Decrease in receivables and other assets, net

23,627

57,949

Decrease in other liabilities

(36,755)

(68,128)

Net cash provided by operating activities

(339)

6,131

100,664

99,411

Cash flows from investing activities

Origination of loans held for investment

(209,264)

(251,086)

Principal payments received on loans held for investment

104,630

82,719

Purchase of mortgage servicing rights

(48,641)

Proceeds from sale of mortgage servicing rights

868

123

Proceeds from sale of advances

1,070

4,286

Issuance of automotive dealer financing notes

(19,642)

Collections of automotive dealer financing notes

49,756

Additions to premises and equipment

(531)

(2,983)

Net cash used in investing activities

525

916

(151,343)

(135,911)

Cash flows from financing activities

Repayment of match funded liabilities, net

(128,900)

(198,022)

Proceeds from mortgage loan warehouse facilities and other secured borrowings

616,891

801,155

Repayment of mortgage loan warehouse facilities and other secured borrowings

(727,711)

(964,104)

Proceeds from issuance of additional senior secured term loan (SSTL)

119,100

Repayment of SSTL borrowings

(6,358)

(4,188)

Payment of debt issuance costs related to SSTL

(1,284)

Proceeds from sale of mortgage servicing rights accounted for as a financing

577

279,586

Proceeds from sale of reverse mortgages (HECM loans) accounted for as a financing (HMBS-related borrowings)

210,563

222,825

Repayment of HMBS-related borrowings

(102,389)

(80,811)

Net cash (used in) provided by financing activities

(253)

(74)

(19,764)

56,367

Net increase (decrease) in cash and restricted cash

(70,443)

19,867

Cash and restricted cash at beginning of year

397,010

302,560

Cash and restricted cash at end of period

326,567

322,427

Supplemental non-cash investing and financing activities

Issuance of common stock in connection with litigation settlement

^[1]

5,719

Right-of-use asset

Lease liability

66,247

Transfers of loans held for sale to real estate owned

$ 1,791

$ 1,195

[1]	In January 2018, Ocwen issued 1,875,000 shares of common stock in connection with a securities litigation settlement.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Statement of Cash Flows [Abstract]
Cash	$ 263,188	$ 285,653
Restricted cash and equivalents:
Debt service accounts	22,087	27,496
Other restricted cash	41,292	9,278
Total cash and restricted cash reported in the statements of cash flows	$ 326,567	$ 322,427

Organization, Business Environment and Basis of Presentation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Business Environment and Basis of Presentation

Note 1 – Organization, Business Environment and Basis of Presentation

Organization

Ocwen Financial Corporation (NYSE: OCN) (Ocwen, we, us and our) is a financial services holding company which, through its subsidiaries, originates and services loans. We are headquartered in West Palm Beach, Florida with offices located throughout the United States (U.S.) and in the United States Virgin Islands (USVI) and with operations located in India and the Philippines. 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 PHH Corporation (PHH), and directly or indirectly owns all of the outstanding stock of its other primary operating subsidiaries: Ocwen Loan Servicing, LLC (OLS), PHH Mortgage Corporation (PMC), Ocwen Financial Solutions Private Limited (OFSPL) and Liberty Home Equity Solutions, Inc. (Liberty).

We perform servicing activities on behalf of other servicers (subservicing), the largest being New Residential Investment Corp. (NRZ), and investors (primary and master servicing), 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 a subservicer or primary servicer, we may be required to make advances for certain property tax and insurance premium payments, default and property maintenance payments and principal and interest payments on behalf of delinquent borrowers to mortgage loan investors before recovering them from borrowers. Most, but not all, of our subservicing agreements provide for us to be reimbursed for any such advances by the owner of the servicing rights. Advances made by us as primary servicer are recovered from the borrower or the mortgage loan investor. 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, sell and securitize conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as Agency loans) and government-insured (Federal Housing Administration (FHA) or Department of Veterans Affairs (VA)) forward mortgages. The GSEs or Ginnie Mae guarantee these mortgage securitizations. We originate Home Equity Conversion Mortgages (HECM, or reverse mortgages) that are insured by the FHA and are an approved issuer of Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae.

We had a total of approximately 7,000 employees at March 31, 2019 of which approximately 4,000 were located in India and approximately 500 were based in the Philippines. Our operations in India and the Philippines primarily provide internal support services, principally to our loan servicing business and our corporate functions. Of our foreign-based employees, nearly 80% were engaged in supporting our loan servicing operations as of March 31, 2019.

Business Environment

We are facing certain challenges and uncertainties that could have significant adverse effects on our business, financial condition, liquidity and results of operations. The ability of management to appropriately address these challenges and uncertainties in a timely manner is critical to our ability to operate our business successfully.

Losses have significantly eroded stockholders’ equity and weakened our financial condition. Our near-term priority is to return to profitability in the shortest timeframe possible within an appropriate risk and compliance environment. We believe our acquisition of PHH provided us with the opportunity to transform into a stronger, more efficient company better able to serve our customers and clients, and positioned us for a return to growth and profitability. See Note 2 – Business Acquisition for additional information regarding the acquisition of PHH.

Now that we have consummated our acquisition of PHH, if we can execute on our five key initiatives, we believe we will drive stronger financial performance.

First, we must successfully execute on the integration of PHH’s business with ours, including a smooth transition onto the Black Knight Financial Services, Inc. (Black Knight) LoanSphere MSP^® servicing system (Black Knight MSP). From the date of acquisition through April 30, 2019, we have transferred approximately 470,000 loans to Black Knight MSP. We expect to complete the transfer of the rest of the portfolio in the second quarter of 2019.

Second, we must re-engineer our cost structure to go beyond eliminating redundant costs through the integration process. Our cost re-engineering plans address organizational, process and control redesign, human capital planning, off-shore utilization, strategic sourcing and facilities rationalization. As part of our cost re-engineering plans, we expect to reduce total staffing levels significantly and to close a number of our U.S. facilities. We believe these steps are necessary in order to drive stronger financial performance and, in the longer term, simplify our operations.

We anticipate that a substantial portion of our expense reductions, and the related re-engineering costs, will be realized in the second half of 2019 following the completion of the transition onto the Black Knight MSP servicing system and the completion of the mergers of our primary operating entities into PMC. We successfully completed the first phase of our entity mergers during the quarter, merging Homeward Residential Inc. into PMC, with PMC being the surviving corporation. We are planning to complete the merger of OLS into PMC, with PMC being the surviving corporation, during the second quarter of 2019.

Third, we must replenish our servicing portfolio through expanding our lending business and permissible MSR acquisitions that are prudent and well-executed with appropriate financial return targets and return to a focus on growth. During the quarter we closed MSR acquisitions with $4.9 billion unpaid principal balance (UPB) and, as of March 31, 2019, have been awarded approximately $25.5 billion UPB in connection with acquisitions that are expected to close in the second quarter of 2019, subject to negotiation and execution of purchase documentation and satisfaction of customary closing conditions. Our goal is to maintain, at a minimum, a servicing portfolio of at least $260.0 billion in UPB.

Fourth, we must ensure that we continue to manage our balance sheet to provide a solid platform for executing on our growth and other initiatives. On March 18, 2019, we increased our Senior Secured Term Loan (SSTL) by $120.0 million, providing incremental liquidity to address maturing debt assumed in the PHH acquisition. In the second quarter, we are planning to establish financing facilities secured by existing and purchased MSRs that will initially provide up to $300.0 million in committed borrowings and fund the majority of the initial capital we believe is needed to support our 2019 growth initiatives.

Finally, we must fulfill our regulatory commitments and resolve our remaining legal and regulatory matters on satisfactory terms. Our business, operating results and financial condition have been significantly impacted in recent periods by regulatory actions against us and by significant litigation matters. Should the number or scope of regulatory or legal actions against us increase or expand or should we be unable to reach reasonable resolutions in existing regulatory and legal matters, our business, reputation, financial condition, liquidity and results of operations could be materially and adversely affected, even if we are successful in our ongoing efforts to drive stronger financial performance. See Note 19 – Regulatory Requirements and Note 21 – Contingencies for further information.

Our ability to execute on our key initiatives is not certain and is dependent on the successful execution of several complex actions, including the Black Knight MSP conversion, entity mergers, U.S. facilities consolidation and organizational redesign and headcount reductions, as well as the absence of significant unforeseen costs, including regulatory or legal costs, that could negatively impact our cost re-engineering efforts. There can be no assurances that the desired strategic and financial benefits of these actions will be realized.

Regarding the current maturities of our borrowings, as of March 31, 2019 we have approximately $720.4 million of debt outstanding under facilities coming due in the next 12 months. Portions of our match funded facilities and all of our mortgage loan warehouse facilities have 364-day terms consistent with market practice. We have historically renewed these facilities on or before their expiration in the ordinary course of financing our business. We expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience.

Our debt agreements contain various qualitative and quantitative events of default provisions that include, among other things, noncompliance with covenants, breach of representations, or the occurrence of a material adverse change. If a lender were to allege an event of default and we are unable to avoid, remedy or secure a waiver of such alleged default, we could be subject to adverse actions by our lenders that could have a material adverse impact on us. In addition, OLS, PMC and Liberty are parties to seller/servicer agreements and/or subject to guidelines and regulations (collectively, seller/servicer obligations) with one or more of the GSEs, the Department of Housing and Urban Development (HUD), FHA, VA and Ginnie Mae. To the extent these requirements are not met or waived, the applicable agency may, at its option, utilize a variety of remedies including requirements to provide certain information or take actions at the direction of the applicable agency, requirements to deposit funds as security for our obligations, sanctions, suspension or even termination of approved seller/servicer status, which would prohibit future originations or securitizations of forward or reverse mortgage loans or servicing for the applicable agency. Any of these actions could have a material adverse impact on us. See Note 13 – Borrowings, Note 19 – Regulatory Requirements and Note 21 – Contingencies for further information.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions of the Securities and Exchange Commission (SEC) to Form 10-Q and SEC Regulation S-X, Article 10, Rule 10-01 for interim financial statements. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation. The results of operations and other data for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2019. The unaudited consolidated financial statements presented herein should be read in conjunction with the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes, the provision for potential losses that may arise from litigation proceedings, and our going concern evaluation. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions.

Reclassifications

Within the Other income (expense) section of the unaudited statement of operations for the three months ended March 31, 2018, we reclassified Gain on sale of mortgage servicing rights, net of $1.0 million to Other, net to conform to the current year presentation.

Certain amounts in the unaudited consolidated statement of cash flows for the three months ended March 31, 2018 have been reclassified to conform to the current year presentation as follows:


•	Within the Cash flows from operating activities section, we reclassified Amortization of debt issuance costs of $0.7 million to Other, net.


•	Within the Cash flows from financing activities section, we reclassified repayments of the SSTL of $4.2 million from Repayment of mortgage loan warehouse facilities and other secured borrowings to a new separate line item (Repayment of SSTL borrowings).

These reclassifications had no impact on our consolidated cash flows from operating, investing or financing activities.

Recently Adopted Accounting Standards

Leases (Accounting Standards Update (ASU) 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01)

This ASU requires a lessee to recognize right-of-use (ROU) assets and lease liabilities on the balance sheet, regardless of whether the lease is classified as a finance or operating lease.

We adopted the new leasing guidance on January 1, 2019, and we elected practical expedients permitted by the new standard which provided us transition relief when assessing leases that commenced prior to the adoption date, including determining whether existing contracts are or contain leases, the classification of such leases as operating or financing, and the accounting for initial direct costs.

The adoption resulted in the recognition of a cumulative-effect adjustment to the opening balance of Retained earnings, the recognition of a gross ROU asset and lease liability, and the reclassification of existing balances for our leases as follows:



	Balances as of December 31, 2018(1)			Recognition of Gross ROU Asset and Lease Liability			Reclassification of Existing Balances			Balances January 1, 2019 after Transition Adjustments (2)
Premises and Equipment:
Right-of-use assets	$	—		$	66,231		$	(21,438	)	$	44,793
Other Assets:
Prepaid expenses (rent)	977			—			(977		)	—
Other Liabilities:
Liability for lease abandonments and deferred rent	(5,498		)	—			5,498			—
Lease liability	—			(66,247		)	977			65,270
Liabilities related to discontinued operations:
Liability for lease abandonments (3)	(15,940		)	—			15,940			—
Retained Earnings:
Cumulative effect of adopting ASU 2016-02	—			16			—			16


(1)	Represents amounts related to leases impacted by the adoption of this ASU that were included in our December 31, 2018 consolidated balance sheet.


(2)	ROU assets as of January 1, 2019 after transition adjustments includes $30.4 million related to premises located in the U.S., $13.6 million related to premises located in India and the Philippines, and $0.7 million related to equipment.


(3)	Represents lease impairments recognized by PHH prior to the acquisition.

Our leases include non-cancelable operating leases for premises and equipment with maturities extending to 2025, exclusive of renewal option periods. At lease commencement date, we estimate the ROU assets and lease liability at present value using our estimated incremental borrowing rate of 7.5%. We elected to recognize ROU assets and lease liabilities that arise from short-term leases. A maturity analysis of our lease liability as of March 31, 2019 is summarized as follows:



Annual obligation for the twelve months ended March 31,
2020	$	17,914
2021	16,227
2022	15,467
2023	11,431
2024	2,400
Thereafter	1,235
	64,674
Less: Adjustment to present value	(4,617		)
Total minimum lease payments, net	$	60,057

Restricted cash includes a $23.2 million deposit as collateral for an irrevocable standby letter of credit issued in connection with one of our leased facilities. This letter of credit requirement under the terms of the lease agreement is primarily the result of PHH not meeting certain credit rating criteria prior to the acquisition. The required amount of the letter of credit will be reduced each month beginning in January 2021 through the lease expiration on December 31, 2022.

Subsequent to the adoption, we amortize the balance of the ROU assets and interest on the lease liability and report in Occupancy and equipment expense on our unaudited consolidated statements of operations. Our lease liability is reduced as we make cash payments on our lease obligations. Our ROU lease assets will be evaluated for impairment, in accordance with ASC 360, Premises and Equipment, at each reporting date.

Business Acquisitions (Notes)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Business Acquisition

Note 2 – Business Acquisition

On October 4, 2018, we completed our acquisition of PHH, a non-bank servicer with established servicing and origination recapture capabilities. As a result of the acquisition, PHH became a wholly owned subsidiary of Ocwen.

The acquisition has been accounted for under the acquisition method of accounting pursuant to ASC 805, Business Combinations. Assets acquired and liabilities assumed are recorded at their fair value as of the date of acquisition based on management’s estimates using currently available information. The results of PHH operations are included in Ocwen’s consolidated statements of operations from the date of acquisition. For U.S. income tax purposes, the acquisition of PHH is treated as a stock purchase.

Purchase Price Allocation

The purchase price allocation provided in the table below reflects the fair value of assets acquired and liabilities assumed in the acquisition of PHH, with the excess of total identifiable net assets over total consideration paid recorded as a bargain purchase gain. Independent valuation specialists conducted analyses to assist management in determining the fair value of certain acquired assets and assumed liabilities. Management is responsible for these third-party valuations and appraisals. The methodologies that we use and key assumptions that we made to estimate the fair value of the acquired assets and assumed debt are described in Note 5 – Fair Value.

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 (not to exceed one year from the acquisition date). Because the measurement period is still open, certain fair value estimates may change once all information necessary to make a final fair value assessment has been received.



Purchase Price Allocation	October 4, 2018			Adjustments			Revised
Cash	$	423,088		$	—		$	423,088
Restricted cash	38,813			—			38,813
Mortgage servicing rights	518,127			—			518,127
Advances, net	96,163			—			96,163
Loans held for sale	42,324			358			42,682
Receivables, net	46,838			—			46,838
Premises and equipment, net	15,203			—			15,203
Real estate owned	3,289			—			3,289
Other assets	6,293			—			6,293
Assets related to discontinued operations	2,017			—			2,017
Financing liabilities (MSRs pledged, at fair value)	(481,020		)	—			(481,020		)
Other secured borrowings, net	(27,594		)	—			(27,594		)
Senior notes, net (Senior unsecured notes)	(120,624		)	—			(120,624		)
Accrued legal fees and settlements	(9,960		)	—			(9,960		)
Other accrued expenses	(36,889		)	—			(36,889		)
Loan repurchase and indemnification liability	(27,736		)	—			(27,736		)
Unfunded pension liability	(9,815		)	—			(9,815		)
Other liabilities	(34,131		)	(643		)	(34,774		)
Liabilities related to discontinued operations	(21,954		)	—			(21,954		)
Total identifiable net assets	422,432			(285		)	422,147
Total consideration paid to seller	(358,396		)	—			(358,396		)
Bargain purchase gain	$	64,036		$	(285	)	$	63,751

We acquired tax attributes, including the estimated future tax benefit of U.S. federal net operating losses (NOLs) valued at $30.2 million, state NOLs valued at $50.3 million and state tax credits of $9.2 million on the acquisition date. All of the acquired tax attributes were fully offset by a valuation allowance. All of these attributes are subject to annual limitations with regard to future utilization under Sections 382 and 383 of the Internal Revenue Code or the comparable provisions of state law. Accordingly, as of December 31, 2018, Ocwen combined had U.S. federal NOLs valued at $58.2 million, USVI NOLs valued at $3.1 million, state NOLs valued at $50.3 million and state tax credits of $9.2 million, all of which were fully offset by a valuation allowance. All of these attributes are subject to the provisions of Sections 382 and 383 of the Internal Revenue Code or the comparable provisions of foreign and state law. All of the attributes are subject to further potential annual limitations in the event of additional ownership changes in the future.

Pro Forma Results of Operations

The pro forma consolidated results presented below are not indicative of what Ocwen’s consolidated results would have been had we completed the acquisition on the date indicated due to a number of factors, including but not limited to expected reductions in servicing, origination and overhead costs through the realization of targeted cost synergies and improved economies of scale, the impact of incremental costs to integrate the two companies and differences in servicing practices and cost structures between Ocwen and PHH. In addition, the pro forma consolidated results do not purport to project combined future operating results of Ocwen and PHH nor do they reflect the expected realization of any cost savings associated with the acquisition of PHH.

The following table presents supplemental pro forma information for Ocwen for the three months ended March 31, 2018 as if the PHH Acquisition occurred on January 1, 2017. Pro forma adjustments include:


•	Fair value adjustments include a reduction of $5.7 million to conform the accounting for MSRs to the valuation policies of Ocwen related to acquired MSRs;


•	Adjust interest expense for a total net impact of $2.3 million. The pro forma adjustment primarily pertains to fair value adjustments of $2.6 million related to the assumed MSR secured liability using valuation assumptions consistent with Ocwen's methodology;


•	Report the bargain purchase gain of $64.0 million as if the acquisition had occurred in 2017 rather than 2018;


•	Report Ocwen and PHH acquisition-related charges of $3.7 million for professional services as if they had been incurred in 2017 rather than 2018;


•	Adjust depreciation expense to amortize internally developed software acquired from PHH on a straight-line basis for the years presented based on a useful life of three years;

•

Adjust revenue for a total net impact of $33.9 million which primarily includes increasing servicing and subservicing fees by $44.8 million to gross up activity related to PHH MSRs sold accounted for as secured borrowings, and reclassifying $12.4 million to MSR valuation adjustments, net in expenses, consistent with Ocwen’s presentation. The offset to these adjustments are expenses, interest income and interest expense, with no net effect on earnings.

•

Income tax benefit of $0.9 million based on management’s estimate of the blended applicable statutory tax rates and observing the continued need for a valuation allowance. The net income tax benefit recorded as a result of pro forma adjustments represents lower current federal tax under the new base erosion and anti-abuse tax (BEAT) provision of the 2017 Tax Cuts and Jobs Act (Tax Act) assuming Ocwen and PHH would file a consolidated federal tax return beginning January 1, 2017. The pro forma tax adjustments contemplate the effects of the Tax Act.



Revenues	$	344,522
Net loss from continuing operations	$	(11,201	)

Cost Reengineering Plan (Notes)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Cost Re-engineering Plan

Note 3 – Cost Re-engineering Plan

In February 2019, we announced our intention to execute cost re-engineering opportunities in order to drive stronger financial performance and, in the longer term, simplify our operations. Our cost re-engineering plans extend beyond eliminating redundant costs through the integration process and address organizational, process and control redesign, human capital planning, off-shore utilization, strategic sourcing and facilities rationalization. Costs estimated for this plan include severance, retention and other incentive awards, facilities-related costs and other costs to execute the reorganization.

The following is a summary of expenses incurred to-date, including an estimate of remaining and total plan costs:



	Three Months Ended March 31, 2019
	Employee-related		Facility-related		Other		Total
Costs incurred in current year:
First quarter (1)	$	19,163	$	—	$	2,973	$	22,136
Estimate of remaining costs (2)	20,837		7,000		15,027		42,864
Total plan costs	$	40,000	$	7,000	$	18,000	$	65,000


(1)	The above expenses were all incurred within the Corporate Items and Other segment. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the unaudited consolidated statements of operations.


(2)	We expect to incur the remaining plan costs within the year ending December 31, 2019.

The following table provides a summary of the aggregate activity of the liability for the re-engineering plan costs:



	Three Months Ended March 31, 2019
	Employee-related			Facility-related		Other			Total
Beginning balance	$	—		$	—	$	—		$	—
Charges	19,163			—		2,973			22,136
Payments	(2,600		)	—		(1,747		)	(4,347		)
Ending balance	$	16,563		$	—	$	1,226		$	17,789

Securitizations and Variable Interest Entities

3 Months Ended

Mar. 31, 2019

Securitizations and Variable Interest Entities

Note 4 – 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.

We have determined that the special purpose entities (SPEs) created in connection with our match funded advance financing facilities are variable interest entities (VIEs) for which we are the primary beneficiary.

From time to time, we may acquire beneficial interests issued in connection with mortgage-backed securitizations where we may also be the master and or primary servicer. These beneficial interests consist of subordinate and residual interests acquired from third-parties in market transactions. We consolidate the VIE when we conclude we are the primary beneficiary.

Securitizations of Residential Mortgage Loans

We receive servicing fees based upon the securitized loan balances and certain ancillary fees, all of which are reported in Servicing and subservicing fees in the unaudited consolidated statements of operations.

Transfers of Forward Loans

We sell or securitize forward loans that we originate or purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization typically occurs within 30 days of loan closing or purchase. 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.

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:



	Three Months Ended March 31,
	2019			2018
Proceeds received from securitizations	$	242,960		$	377,499
Servicing fees collected	15,918			10,348
Purchases of previously transferred assets, net of claims reimbursed	(904		)	(2,170		)
	$	257,974		$	385,677

In connection with these transfers, we retained MSRs of $0.8 million and $2.4 million during the three months ended March 31, 2019 and 2018, respectively, which are reported in Gain on loans held for sale, net in the unaudited consolidated statements of operations. See Note 6 – Loans Held for Sale for additional information regarding gains or losses on the transfer of loans held for sale.

Certain obligations arise from the 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 guarantor for losses incurred due to material breach of contractual representations and warranties.

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 an estimate of our maximum exposure to loss including the UPB of the transferred loans:



	March 31, 2019		December 31, 2018
Carrying value of assets
MSRs, at fair value	$	123,448	$	132,774
Advances and match funded advances	150,136		138,679
UPB of loans transferred (1)	15,147,575		15,600,971
Maximum exposure to loss	$	15,421,159	$	15,872,424


(1)	Represents UPB of loans we transferred for which we continue to act as servicer or subservicer. Our maximum exposure to loss from transferred loans cannot be estimated because we do not service all of the loans for which we have provided representations and warranties.

At March 31, 2019 and December 31, 2018, 8.1% and 8.3%, respectively, of the transferred residential loans that we service were 60 days or more past due.

Transfers of Reverse Mortgages

We pool HECM loans into HMBS that we sell into the secondary market with servicing rights retained or we sell the loans to third parties with servicing rights released. 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 HECM loans do not qualify for sale accounting, and therefore, we account for these transfers as financings. Under this accounting treatment, the HECM loans are classified as Loans held for investment, at fair value, on our unaudited consolidated balance sheets. Holders of participating interests in the HMBS have no recourse against the assets of Ocwen, except with respect to standard representations and warranties and our contractual obligation to service the HECM loans and the HMBS. The changes in fair value of the HECM loans and HMBS-related borrowings are included in Other revenue, net in our unaudited consolidated statements of operations.

At March 31, 2019 and December 31, 2018, Loans held for investment included $70.4 million and $68.4 million, respectively, of originated loans which had not yet been pledged as collateral. See Note 5 – Fair Value and Note 13 – Borrowings for additional information.

Financings of Advances

Match funded advances result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because we have determined that Ocwen is the primary beneficiary of the SPE. These SPEs issue debt supported by collections on the transferred advances, and we refer to this debt as Match funded liabilities.

We make transfers to these SPEs in accordance with the terms of our advance financing facility agreements. Debt service accounts require us to remit collections on pledged advances to the trustee within two days of receipt. Collected funds that are not applied to reduce the related match funded debt until the payment dates specified in the indenture are classified as debt service accounts within Restricted cash in our unaudited consolidated balance sheets. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest, as well as amounts set aside as required by our warehouse facilities as security for our obligations under the related agreements. The funds are held in interest earning accounts and those amounts related to match funded facilities are held in the name of the SPE created in connection with the facility.

We classify the transferred advances on our unaudited consolidated balance sheets as a component of 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 have recourse only to the assets of the SPE for satisfaction of the debt. 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 in our unaudited consolidated balance sheets.

Mortgage-Backed Securitizations

The table below presents the carrying value and classification of the assets and liabilities of two consolidated mortgage-backed securitization trusts included in our unaudited consolidated balance sheets as a result of residual securities issued by the trust that we acquired during 2018.



	March 31, 2019		December 31, 2018
Loans held for investment, at fair value - Restricted for securitization investors	$	26,237	$	26,520
Financing liability - Owed to securitization investors, at fair value	24,562		24,815

We have concluded we are the primary beneficiary of certain residential mortgage-backed securitizations as a result of beneficial interests consisting of residual securities, which expose us to the expected losses and residual returns of the trust, and our role as master servicer, where we have the ability to direct the activities that most significantly impact the performance of the trust.

Upon consolidation of the securitization trusts, we elected to apply the measurement alternative to ASC Topic 820, Fair Value Measurement for collateralized financing entities. The measurement alternative requires a reporting entity to use the more observable of the fair value of the financial assets or the financial liabilities to measure both the financial assets and the financial liabilities of the entity. We determined that the fair value of the loans held by the trusts is more observable than the fair value of the debt certificates issued by the trusts. Through the application of the measurement alternative, the fair value of the financial liabilities of the trusts are measured as the difference between the fair value of the financial assets and the fair value of our investment in the residual securities of the trusts.

Holders of the debt issued by these entities have recourse only to the assets of the SPE for satisfaction of the debt and have no recourse against the assets of Ocwen. Similarly, the general creditors of Ocwen have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement is limited to the carrying values of our investments in the residual securities of the trusts, our MSRs and related advances. At March 31, 2019, MSRs of $0.2 million and our $1.7 million investment in the residual securities of the trusts were eliminated in consolidation. Advances outstanding at March 31, 2019 were $1.2 million.

Fair Value

3 Months Ended

Mar. 31, 2019

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.

We have elected to fair value future draw commitments for HECM loans purchased or originated after December 31, 2018. The estimated fair value is included in Loans held for investment on our unaudited consolidated balance sheets with changes in fair value recognized in Other revenue, net in our unaudited consolidated statements of operations. The value of future draw commitments for HECM loans purchased or originated before January 1, 2019 will be recognized over time as such future draws are securitized or sold.

The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows:



		March 31, 2019				December 31, 2018
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Loans held for sale
Loans held for sale, at fair value (a)	2	$	153,140	$	153,140	$	176,525	$	176,525
Loans held for sale, at lower of cost or fair value (b)	3	69,547		69,547		66,097		66,097
Total Loans held for sale		$	222,687	$	222,687	$	242,622	$	242,622



		March 31, 2019						December 31, 2018
	Level	Carrying Value			Fair Value			Carrying Value			Fair Value

Loans held for investment
Loans held for investment - Reverse mortgages (a)	3	$	5,726,917		$	5,726,917		$	5,472,199		$	5,472,199
Loans held for investment - Restricted for securitization investors (a)	3	26,237			26,237			26,520			26,520
Total loans held for investment		$	5,753,154		$	5,753,154		$	5,498,719		$	5,498,719

Advances (including match funded) (c)	3	$	1,094,080		$	1,094,080		$	1,186,676		$	1,186,676
Receivables, net (c)	3	197,043			197,043			198,262			198,262
Mortgage-backed securities (a)	3	1,786			1,786			1,502			1,502
U.S. Treasury notes (a)	1	1,068			1,068			1,064			1,064
Corporate bonds (a)	2	446			446			450			450

Financial liabilities:
Match funded liabilities (c)	3	$	649,384		$	649,121		$	778,284		$	776,485
Financing liabilities:
HMBS-related borrowings (a)	3	$	5,614,688		$	5,614,688		$	5,380,448		$	5,380,448
Financing liability - MSRs pledged (a)	3	951,216			951,216			1,032,856			1,032,856
Financing liability - Owed to securitization investors (a)	3	24,562			24,562			24,815			24,815
Other (c)	3	67,920			51,980			69,942			53,570
Total Financing liabilities		$	6,658,386		$	6,642,446		$	6,508,061		$	6,491,689
Other secured borrowings:
Senior secured term loan (c) (d)	2	$	338,943		$	344,710		$	226,825		$	227,449
Other (c)	3	98,039			98,039			155,713			155,713
Total Other secured borrowings		$	436,982		$	442,749		$	382,538		$	383,162

Senior notes:
Senior unsecured notes (c) (d)	2	$	119,224		$	115,657		$	119,924		$	119,258
Senior secured notes (c) (d)	2	328,919			315,261			328,803			306,889
Total Senior notes		$	448,143		$	430,918		$	448,727		$	426,147

Derivative financial instrument assets (liabilities)
Interest rate lock commitments (a)	2	$	3,982		$	3,982		$	3,871		$	3,871
Forward mortgage-backed securities (a)	1	(4,126		)	(4,126		)	(4,983		)	(4,983		)
Interest rate caps (a)	3	276			276			678			678

Mortgage servicing rights (a)	3	$	1,400,191		$	1,400,191		$	1,457,149		$	1,457,149


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


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


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


(d)	The carrying values are net of unamortized debt issuance costs and discount. See Note 13 – Borrowings for additional information.

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			Loans Held for Inv. - Restricted for Securitiza- tion Investors			Financing Liability - Owed to Securit - ization Investors			Mortgage-Backed Securities		Financing Liability - MSRs Pledged			Derivatives			MSRs
Three months ended March 31, 2019
Beginning balance	$	5,472,199		$	(5,380,448	)	$	26,520		$	(24,815	)	$	1,502	$	(1,032,856	)	$	678		$	1,457,149
Purchases, issuances, sales and settlements
Purchases	—			—			—			—			—		(577		)	—			55,920
Issuances	209,264			(210,563		)	—			—			—		—			—			—
Sales	—			—			—			—			—		—			—			(567		)
Settlements	(104,630		)	102,389			(283		)	253			—		50,129			—			(3,313		)
Transfers (to) from:
Loans held for sale, at fair value	(396		)	—			—			—			—		—			—			—
Other assets	(119		)	—			—			—			—		—			—			—
Receivables, net	(68		)	—			—			—			—		—			—			—
	104,051			(108,174		)	(283		)	253			—		49,552			—			52,040
Total realized and unrealized gains (losses)
Included in earnings:
Change in fair value (1)	150,667			(126,066		)	—			—			284		26,237			(402		)	(108,998		)
Calls and other	—			—			—			—			—		5,851			—			—
Included in Other comprehensive income	—			—									—		—			—			—
	150,667			(126,066		)	—			—			284		32,088			(402		)	(108,998		)
Transfers in and / or out of Level 3	—			—			—			—			—		—			—			—
Ending balance	$	5,726,917		$	(5,614,688	)	$	26,237		$	(24,562	)	$	1,786	$	(951,216	)	$	276		$	1,400,191



	Loans Held for Investment - Reverse Mortgages			HMBS-Related Borrowings			Mortgage-Backed Securities		Financing Liability - MSRs Pledged			Derivatives			MSRs
Three months ended March 31, 2018
Beginning balance	$	4,715,831		$	(4,601,556	)	$	1,592	$	(508,291	)	$	2,056		$	671,962
Purchases, issuances, sales and settlements
Purchases	—			—			—		—			—			2,378
Issuances	251,086			(222,825		)	—		(279,586		)	—			(1,758		)
Sales	—			—			—		—			—			(131		)
Settlements	(82,719		)	80,811			—		54,547			(371		)	—
Transfers (to) from:
MSRs carried at amortized cost, net of valuation allowance	—			—			—		—			—			418,925
Loans held for sale, at fair value	(184		)	—			—		—			—			—
Other assets	(104		)	—			—		—			—			—
Receivables, net	(50		)	—			—		—			—			—
	168,029			(142,014		)	—		(225,039		)	(371		)	419,414
Total realized and unrealized gains (losses)
Included in earnings:
Change in fair value	104,291			(94,623		)	87		16,712			181			(17,129		)
Calls and other	—			—			—		694			—			—
Included in Other comprehensive income	—			—			—		—			—			—
	104,291			(94,623		)	87		17,406			181			(17,129		)
Transfers in and / or out of Level 3	—			—			—		—			—			—
Ending balance	$	4,988,151		$	(4,838,193	)	$	1,679	$	(715,924	)	$	1,866		$	1,074,247


(1)	The Change in fair value adjustments on Loans held for investment for the three months ended March 31, 2019 include $2.9 million in connection with the fair value election for future draw commitments on HECM reverse mortgage loans purchased or originated after December 31, 2018.

The methodologies that we use and key assumptions that we make to estimate the fair value of financial instruments and other assets and liabilities measured at fair value on a recurring or non-recurring basis and those disclosed, but not carried, at fair value are described below.

Loans Held for Sale

Residential forward and reverse mortgage loans that we intend to sell 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 purchase certain loans from Ginnie Mae guaranteed securitizations in connection with loan modifications and loan resolution activity as part of our contractual obligations as the servicer of the loans. These loans 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 into 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 loans for which we have no agreement to sell on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows.

Loans Held for Investment

Loans Held for Investment - Reverse Mortgages

We measure these loans at fair value based 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, including future draw commitments for HECM loans purchased or originated after December 31, 2018. 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.



Significant valuation assumptions	March 31, 2019		December 31, 2018
Life in years
Range	3.2 to 7.5		3.0 to 7.6
Weighted average	6.0		5.9
Conditional repayment rate
Range	6.8% to 36.1%		6.8% to 38.4%
Weighted average	14.4	%	14.7	%
Discount rate	3.1	%	3.4	%

Significant increases or decreases in any of these assumptions in isolation could result in a significantly lower or higher fair value, respectively. The effects of changes in the assumptions used to value the loans held for investment are largely offset by the effects of changes in the assumptions used to value the HMBS-related borrowings that are associated with these loans.

Loans Held for Investment – Restricted for securitization investors

We have elected to measure loans held by consolidated mortgage-backed securitization trusts at fair value. The loans are secured by first liens on single family residential properties. Fair value is based on proprietary cash flow modeling processes for a third-party broker/dealer and a third-party valuation expert. Significant assumptions used in the valuation include projected monthly payments, projected prepayments and defaults, property liquidation values and discount rates.

Mortgage Servicing Rights

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.

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 understand 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, supported by our verification and analytical procedures, provide reasonable assurance that the prices used in our unaudited consolidated financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use.

We evaluate the reasonableness of our third-party experts’ assumptions using historical experience adjusted for prevailing market conditions. Assumptions used in the valuation of MSRs include:



•	Mortgage prepayment speeds	•	Delinquency rates
•	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

Fair Value MSRs

MSRs carried at fair value are classified within Level 3 of the valuation hierarchy. The fair value is equal to the mid-point of the range of prices provided by third-party valuation experts, without adjustment, except in the event we have a potential or completed sale, including transactions where we have executed letters of intent, in which case the fair value of the MSRs is disclosed at the estimated sale price. Fair value reflects actual Ocwen sale prices for orderly transactions where available in lieu of independent third-party valuations. Our valuation process includes discussions of bid pricing with the third-party valuation experts and are contemplated along with other market-based transactions in their model validation.

A change in the valuation inputs utilized by the valuation experts might result in a significantly higher or lower fair value measurement. Changes in market interest rates tend to impact the fair value for Agency MSRs via prepayment speeds by altering the borrower refinance incentive and the non-Agency MSRs via a market rate indexed cost of advance funding. Other key assumptions used in the valuation of these MSRs include delinquency rates and discount rates.



Significant valuation assumptions	March 31, 2019						December 31, 2018
Significant valuation assumptions	Agency			Non-Agency			Agency			Non-Agency
Weighted average prepayment speed	9.8		%	15.4		%	8.5		%	15.4		%
Weighted average delinquency rate	6.5		%	27.2		%	6.6		%	27.1		%
Advance financing cost	5-year swap			5-yr swap plus 2.75%			5-year swap			5-yr swap plus 2.75%
Interest rate for computing float earnings	5-year swap			5-yr swap minus 0.50%			5-year swap			5-yr swap minus 0.50%
Weighted average discount rate	9.0		%	12.7		%	9.1		%	12.8		%
Weighted average cost to service (in dollars)	$	89		$	297		$	90		$	297

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, an improving housing market or expanded product availability (as prepayments increase) and increase in periods of rising interest rates, a deteriorating housing market or reduced product availability (as prepayments decrease). The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of March 31, 2019 given 10% and 20% hypothetical shifts in prepayment speeds and interest rate assumptions:



Adverse change in fair value	10%			20%
Weighted average prepayment speeds	$	(127,188	)	$	(245,678	)
Weighted average discount rate	(39,816		)	(77,754		)

The sensitivity analysis measures the potential impact on fair values based on hypothetical changes, which in the case of our portfolio at March 31, 2019 are increased prepayment speeds and an increase in the yield assumption.

Advances

We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally 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.

Mortgage-Backed Securities (MBS)

Our subordinate and residual securities are not actively traded, and therefore, we estimate the fair value of these securities using a process based upon the use of an independent third-party valuation expert. Where possible, we consider observable trading activity in the valuation of our securities. Key inputs include expected prepayment rates, delinquency and cumulative loss curves and discount rates commensurate with the risks. Where possible, we use observable inputs in the valuation of our securities. However, the subordinate and residual securities in which we have invested trade infrequently and therefore have few or no observable inputs and little price transparency. Additionally, during periods of market dislocation, the observability of inputs is further reduced. We classify subordinate and residual securities as trading securities and account for them at fair value on a recurring basis. Changes in the fair value of our investment in subordinate and residual securities are recognized in Other, net in the unaudited consolidated statements of operations.

U.S. Treasury Notes

We classify U.S. Treasury notes as trading securities and account for them at fair value on a recurring basis. We base the fair value on quoted prices in active markets to which we have access. Changes in the fair value of our investment in U.S. Treasury notes are recognized in Other, net in the unaudited consolidated statements of operations.

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 assume the notes are refinanced at the end of their revolving periods, consistent with how we manage our advance facilities.

Financing Liabilities

HMBS-Related Borrowings

We have elected to measure these borrowings at fair value. These borrowings are not actively traded, and therefore, quoted market prices are not available. We determine fair value by discounting the projected recovery of principal, interest and advances 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. 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.



Significant valuation assumptions	March 31, 2019		December 31, 2018
Life in years
Range	3.2 to 7.5		3.0 to 7.6
Weighted average	6.0		5.9
Conditional repayment rate
Range	6.8% to 36.1%		6.8% to 38.4%
Weighted average	14.4	%	14.7	%
Discount rate	3.1	%	3.3	%

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

MSRs Pledged (Rights to MSRs)

We have elected to measure these borrowings at fair value. We recognize the proceeds received in connection with Rights to MSRs transactions as a secured borrowing that we account for at fair value. Fair value for the portion of the borrowing attributable to the MSRs underlying the Rights to MSRs is determined using the mid-point of the range of prices provided by third-party valuation experts. Fair value for the portion of the borrowing attributable to any lump sum payments received in connection with the transfer of MSRs underlying such Rights to MSRs to the extent such transfer is accounted for as a financing is determined by discounting the relevant future cash flows that were altered through such transfer using assumptions consistent with the mid-point of the range of prices provided by third-party valuation experts for the related MSR. Because we measure all MSRs at fair value, changes in the Financing Liability - MSRs Pledged value are partially offset by changes in the fair value of the related MSRs. See Note 10 — Rights to MSRs for additional information.



Significant valuation assumptions	March 31, 2019			December 31, 2018
Weighted average prepayment speed	14.3		%	13.9		%
Weighted average delinquency rate	20.3		%	20.3		%
Advance financing cost	5-year swap plus 0% to 2.75%			5-year swap plus 0% to 2.75%
Interest rate for computing float earnings	5-year swap minus 0% to 0.50%			5-year swap minus 0% to 0.50%
Weighted average discount rate	11.9		%	12.0		%
Weighted average cost to service (in dollars)	$	233		$	234

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

Secured Notes

We issued Ocwen Asset Servicing Income Series (OASIS), Series 2014-1 Notes secured by Ocwen-owned MSRs relating to Freddie Mac mortgages. We accounted for this transaction as a financing. We determine the fair value based on bid prices provided by third parties involved in the issuance and placement of the notes.

Financing Liability – Owed to Securitization Investors

Consists of securitization debt certificates due to third parties that represent beneficial ownership interests in mortgage-backed securitization trusts that we include in our consolidated financial statements. We determine fair value using the measurement alternative to ASC Topic 820, Fair Value Measurement as disclosed in Note 4 – Securitizations and Variable Interest Entities. In accordance with the measurement alternative, the fair value of the consolidated securitization debt certificates is measured as the fair value of the loans held by the trust less the fair value of the beneficial interests held by us in the form of residual securities.

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 based the fair value on valuation data obtained from a pricing service.

Senior Notes

We base the fair value on quoted prices in a market with limited trading activity, or on valuation data obtained from a pricing service in the absence of trading data.

Derivative Financial Instruments

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 (locked pipeline), whereby the interest rate is set prior to funding. IRLCs are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. Fair value amounts of IRLCs are adjusted for expected “fallout” (locked pipeline loans not expected to close) using models that consider cumulative historical fallout rates and other factors.

We enter into forward MBS trades to provide an economic hedge against changes in the 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 obtain unadjusted market quotes for these derivatives; thus, they are classified within Level 1 of the valuation hierarchy.

In addition, we may use interest rate caps to minimize future interest rate exposure on variable rate debt issued on servicing advance financing facilities from increases in one-month or three-month Eurodollar rate (1ML or 3 ML, respectively) interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk.

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.

+ References + Details

Loans Held for Sale

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans Held for Sale

Note 6 – Loans Held for Sale



Loans Held for Sale - Fair Value	Three Months Ended March 31,
Loans Held for Sale - Fair Value	2019			2018
Beginning balance	$	176,525		$	214,262
Originations and purchases	219,867			205,994
Proceeds from sales	(235,895		)	(293,063		)
Principal collections	(5,516		)	(804		)
Transfers from (to):
Loans held for investment, at fair value	396			184
Receivables, net	(581		)	—
Real estate owned (Other assets)	(696		)	—
Gain on sale of loans	8,191			4,652
Decrease in fair value of loans	(228		)	(3,871		)
Other	(8,923		)	(1,506		)
Ending balance (1)	$	153,140		$	125,848


(1)	At March 31, 2019 and 2018, the balances include $(7.8) million and $3.8 million, respectively, of fair value adjustments.



Loans Held for Sale - Lower of Cost or Fair Value	Three Months Ended March 31,
Loans Held for Sale - Lower of Cost or Fair Value	2019			2018
Beginning balance	$	66,097		$	24,096
Purchases	84,315			152,084
Proceeds from sales	(62,135		)	(86,421		)
Principal collections	(1,776		)	(3,446		)
Transfers from (to):
Receivables, net	(27,411		)	(35,666		)
Real estate owned (Other assets)	(1,095		)	(1,195		)
Gain on sale of loans	551			692
(Increase) decrease in valuation allowance	706			(1,185		)
Other	10,295			3,271
Ending balance (1)	$	69,547		$	52,230

(1)

At March 31, 2019 and 2018, the balances include $42.7 million and $46.1 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. We may repurchase loans that have been modified, to facilitate loss reduction strategies, or as otherwise obligated as a Ginnie Mae servicer. Repurchased loans may be modified or otherwise remediated through loss mitigation activities, may be sold to a third party, or are reclassified to receivables.



Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value	Three Months Ended March 31,
	2019			2018
Beginning balance	$	11,569		$	7,318
Provision	642			853
Transfer from Liability for indemnification obligations (Other liabilities)	67			719
Sales of loans	(1,415		)	(409		)
Other	—			22
Ending balance	$	10,863		$	8,503



Gain on Loans Held for Sale, Net	Three Months Ended March 31,
Gain on Loans Held for Sale, Net	2019			2018
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	828		$	2,378
Fair value gains related to transfers of reverse mortgage loans, net	6,483			10,968
Gain on sale of repurchased Ginnie Mae loans	538			692
Gain on sale of forward mortgage loans	10,444			5,767
Other, net	2,130			248
	20,423			20,053
Change in fair value of IRLCs	(341		)	1,377
Change in fair value of loans held for sale	(142		)	(3,924		)
Gain (loss) on economic hedge instruments	(2,270		)	2,398
Other	(75		)	(104		)
	$	17,595		$	19,800

Advances

3 Months Ended

Mar. 31, 2019

Advances [Abstract]

Advances

Note 7 – Advances



	March 31, 2019			December 31, 2018
Principal and interest	$	47,039		$	43,671
Taxes and insurance	141,466			160,373
Foreclosures, bankruptcy and other	59,990			68,597
	248,495			272,641
Allowance for losses	(23,135		)	(23,259		)
	$	225,360		$	249,382

The following table summarizes the activity in net advances:



	Three Months Ended March 31,
	2019			2018
Beginning balance	$	249,382		$	211,793
Sales of advances	(707		)	(439		)
Collections of advances, charge-offs and other, net	(23,439		)	(13,719		)
Net (increase) decrease in allowance for losses	124			(515		)
Ending balance	$	225,360		$	197,120



Allowance for Losses	Three Months Ended March 31,
	2019			2018
Beginning balance	$	23,259		$	16,465
Provision	1,762			2,524
Net charge-offs and other	(1,886		)	(2,009		)
Ending balance	$	23,135		$	16,980

Match Funded Advances

3 Months Ended

Mar. 31, 2019

Match Funded Assets

Note 8 – Match Funded Advances



	March 31, 2019		December 31, 2018
Principal and interest	$	374,820	$	412,897
Taxes and insurance	345,589		374,853
Foreclosures, bankruptcy, real estate and other	148,311		149,544
	$	868,720	$	937,294

The following table summarizes the activity in match funded assets:



	Three Months Ended March 31,
	2019			2018
	Advances			Advances			Automotive Dealer Financing Notes
Beginning balance	$	937,294		$	1,144,600		$	32,757
Transfer to Other assets	—			—			(36,896		)
New advances (collections), net	(68,574		)	(59,843		)	1,504
Decrease in allowance for losses (1)	—			—			2,635
Ending balance	$	868,720		$	1,084,757		$	—


(1)	The remaining allowance was charged off in connection with the exit from the automotive capital services business. In January 2018, we terminated the automotive dealer loan financing facility.

Mortgage Servicing

3 Months Ended

Mar. 31, 2019

Mortgage Servicing

Note 9 – Mortgage Servicing



Mortgage Servicing Rights – Amortization Method	Three Months Ended March 31,
Mortgage Servicing Rights – Amortization Method	2019		2018
Beginning balance	$	—	$	336,882
Fair value election - transfer of MSRs carried at fair value (1)	—		(361,670		)
Decrease in impairment valuation allowance (1) (2)	—		24,788
Ending balance	$	—	$	—

(1)

Effective January 1, 2018, we elected fair value accounting for our MSRs previously accounted for using the amortization method, which included Agency MSRs and government-insured MSRs. This irrevocable election applies to all subsequently acquired or originated servicing assets and liabilities that have characteristics consistent with each of these classes. We recorded a cumulative-effect adjustment of $82.0 million to retained earnings as of January 1, 2018 to reflect the excess of the fair value of the Agency MSRs over their carrying amount. We also recognized the tax effect of this adjustment through an increase in retained earnings of $6.8 million and a deferred tax asset for the same amount. However, we established a full valuation allowance on the resulting deferred tax asset through a reduction in retained earnings. The government-insured MSRs were impaired by $24.8 million at December 31, 2017; therefore, these MSRs were already effectively carried at fair value.


(2)	Impairment valuation allowance balance of $24.8 million was reclassified to reduce the carrying value of the related MSRs on January 1, 2018 in connection with our fair value election.



Mortgage Servicing Rights – Fair Value Measurement Method	Three Months Ended March 31,
Mortgage Servicing Rights – Fair Value Measurement Method	2019									2018
	Agency			Non-Agency			Total			Agency			Non-Agency			Total
Beginning balance	$	865,587		$	591,562		$	1,457,149		$	11,960		$	660,002		$	671,962
Fair value election - transfer from MSRs carried at amortized cost	—			—			—			336,882			—			336,882
Cumulative effect of fair value election	—			—			—			82,043			—			82,043
Sales and other transfers	(435		)	(132		)	(567		)	—			(131		)	(131		)
Additions:
Recognized on the sale of residential mortgage loans	1,510			—			1,510			2,378			—			2,378
Purchase of MSRs	54,410			—			54,410			—			—			—
Servicing transfers and adjustments	—			(3,313		)	(3,313		)	(1		)	(1,757		)	(1,758		)
Changes in fair value (1):
Changes in valuation inputs or other assumptions	(64,117		)	(156		)	(64,273		)	20,460			—			20,460
Realization of expected future cash flows and other changes	(31,263		)	(13,462		)	(44,725		)	(15,501		)	(22,088		)	(37,589		)
Ending balance	$	825,692		$	574,499		$	1,400,191		$	438,221		$	636,026		$	1,074,247


(1)	Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.

Portfolio of Assets Serviced

The following table presents the composition of our residential primary servicing and subservicing portfolios as measured by UPB, including foreclosed real estate and small-balance commercial loans. The UPB amounts in the table below are not included on our unaudited consolidated balance sheets.



UPB at March 31, 2019
Servicing	$	75,288,090
Subservicing	49,805,407
NRZ	125,987,243
	$	251,080,740
UPB at December 31, 2018
Servicing	$	72,378,693
Subservicing	53,104,560
NRZ	130,517,237
	$	256,000,490
UPB at March 31, 2018
Servicing	$	73,264,640
Subservicing	1,792,880
NRZ	98,331,356
	$	173,388,876

During the three months ended March 31, 2019, we acquired MSRs on portfolios consisting of 22,083 loans with a UPB of $4.9 billion. During the three months ended March 31, 2019, we also sold MSRs on portfolios consisting of 304 loans with a UPB of $99.4 million.

A significant portion of the servicing agreements for our non-Agency servicing portfolio contain provisions where we could be terminated as servicer without compensation upon the failure of the serviced loans to meet certain portfolio delinquency or cumulative loss thresholds. As a result of the economic downturn beginning in 2007 - 2008, the portfolio delinquency and/or cumulative loss threshold provisions have been breached in many private-label securitizations in our non-Agency servicing portfolio. To date, terminations as servicer as a result of a breach of any of these provisions have been minimal.

At March 31, 2019, the S&P Global Ratings, Inc.’s (S&P) and Fitch Ratings, Inc.’s (Fitch) servicer ratings outlook for both OLS and PHH is stable. Moody’s Investors Service, Inc.’s (Moody’s) servicer ratings for OLS are on Review for Downgrade. Downgrades in servicer ratings could adversely affect our ability to sell or finance servicing advances and could impair our ability to consummate future servicing transactions or adversely affect our dealings with lenders, other contractual counterparties, and regulators, including our ability to maintain our status as an approved servicer by Fannie Mae and Freddie Mac. The servicer rating requirements of Fannie Mae do not necessarily require or imply immediate action, as Fannie Mae has discretion with respect to whether we are in compliance with their requirements and what actions it deems appropriate under the circumstances in the event that we fall below their desired servicer ratings.

Certain of our servicing agreements require that we maintain specified servicer ratings from rating agencies such as Moody’s and S&P. At March 31, 2019, 695 non-Agency servicing agreements with a UPB of $25.1 billion have minimum servicer ratings criteria. As a result of our current servicer ratings, 170 termination rights have been triggered in non-Agency servicing agreements with a UPB of $7.9 billion, or approximately 8% of our total non-Agency servicing portfolio. To date, terminations as servicer as a result of a breach of any of these provisions have been minimal.



Servicing Revenue	Three Months Ended March 31,
Servicing Revenue	2019		2018
Loan servicing and subservicing fees
Servicing	$	52,429	$	58,995
Subservicing	6,207		914
NRZ	155,847		127,017
	214,483		186,926
Late charges	15,439		14,589
Custodial accounts (float earnings)	11,934		7,263
Loan collection fees	4,349		5,018
Home Affordable Modification Program (HAMP) fees (1)	1,777		4,104
Other, net	7,881		4,238
	$	255,863	$	222,138


(1)	The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification.

Float balances (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers) are held in escrow by an unaffiliated bank and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $1.8 billion and $1.6 billion at March 31, 2019 and March 31, 2018, respectively.

Rights to MSRs

3 Months Ended

Mar. 31, 2019

Rights to MSRs

Note 10 — Rights to MSRs

Ocwen and PHH have entered into agreements to sell MSRs or Rights to MSRs and the related servicing advances to NRZ, and in all cases have been retained by NRZ as subservicer. In the case of Ocwen Rights to MSRs transactions, while the majority of the risks and rewards of ownership were transferred, legal title was retained by Ocwen, causing the Rights to MSRs transactions to be accounted for as secured financings. In the case of the PHH transactions, and for those Ocwen MSRs where consents were subsequently received and legal title was transferred to NRZ, due to the length of the non-cancellable term of the subservicing agreement, the transactions do not qualify as a sale and are accounted for as secured financings. As a result, we continue to recognize the MSRs and related financing liability on our consolidated balance sheet, as well as the full amount of servicing revenue and changes in the fair value of the MSRs and related financing liability in our consolidated statements of operations.

NRZ is our largest servicing client, accounting for 50% of the UPB of residential assets serviced and 73% of our loan servicing and subservicing fee revenue as of and for the three months ended March 31, 2019, respectively.

The following table presents the assets and liabilities recorded on our unaudited consolidated balance sheets as well as the impacts to our unaudited consolidated statements of operations in connection with our NRZ agreements.



Balance Sheets	March 31, 2019			December 31, 2018
MSRs, at fair value	$	831,284		$	894,002
Due from NRZ
Sales and transfers of MSRs (1)	23,430			23,757
Advance funding, subservicing fees and reimbursable expenses	9,238			30,845
Due to NRZ	55,907			53,001
Financing liability - MSRs pledged, at fair value
Original Rights to MSRs Agreements	424,086			436,511
2017 Agreements and New RMSR Agreements (2)	119,932			138,854
PHH MSR Agreements	407,198			457,491
Financing liability - MSRs pledged, at fair value	$	951,216		$	1,032,856

	Three Months Ended March 31,
	2019			2018
Statements of Operations
Servicing fees collected on behalf of NRZ	$	155,847		$	127,017
Less: Subservicing fee retained by Ocwen	37,407			34,217
Net servicing fees remitted to NRZ	118,440			92,800

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements	121			116
2017 Agreements and New RMSR Agreements	(6,980		)	16,596
PHH MSR Agreements	33,096			—
	26,237			16,712
Runoff and settlement:
Original Rights to MSRs Agreements	9,035			18,852
2017 Agreements and New RMSR Agreements	23,320			35,695
PHH MSR Agreements	17,774			—
	50,129			54,547

Other	(1,882		)	(1,509		)

Interest expense	$	43,956		$	23,050


(1)	Balance represents the holdback of proceeds from PHH MSR sales and transfers to address indemnification claims and mortgage loan document deficiencies. These sales were executed by PHH prior to the acquisition date.


(2)	$105.8 million and $33.0 million is expected to be recognized as a reduction in the financing liability and interest expense for the years ended December 31, 2019 and 2020, respectively.



Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			PHH MSR Agreements			Total
Balance at December 31, 2018	$	436,511		$	138,854		$	457,491		$	1,032,856
Additions	—			—			577			577
Changes in fair value:
Original Rights to MSRs Agreements	(121		)	—			—			(121		)
2017 Agreements and New RMSR Agreements	—			6,980			—			6,980
PHH MSR Agreements	—			—			(33,096		)	(33,096		)
Runoff and settlement:
Original Rights to MSRs Agreements	(9,035		)	—			—			(9,035		)
2017 Agreements and New RMSR Agreements	—			(23,320		)	—			(23,320		)
PHH MSR Agreements	—			—			(17,774		)	(17,774		)
Calls (1):
Original Rights to MSRs Agreements	(3,269		)	—			—			(3,269		)
2017 Agreements and New RMSR Agreements	—			(2,582		)	—			(2,582		)
Balance at March 31, 2019	$	424,086		$	119,932		$	407,198		$	951,216



Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			Total
Balance at December 31, 2017	$	499,042		$	9,249		$	508,291
Receipt of lump-sum cash payments	—			279,586			279,586
Changes in fair value:
Original Rights to MSRs Agreements	(116		)	—			(116		)
2017 Agreements and New RMSR Agreements	—			(16,596		)	(16,596		)
Runoff and settlement:
Original Rights to MSRs Agreements	(18,852		)	—			(18,852		)
2017 Agreements and New RMSR Agreements	—			(35,695		)	(35,695		)
Calls (1):
Original Rights to MSRs Agreements	(420		)	—			(420		)
2017 Agreements and New RMSR Agreements	—			(274		)	(274		)
Balance at March 31, 2018	$	479,654		$	236,270		$	715,924


(1)	Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements. Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization.

Ocwen Transactions

Prior to the transfer of legal title under the Master Servicing Rights Purchase Agreement dated as of October 1, 2012, as amended, and certain Sale Supplements, as amended (collectively, the Original Rights to MSRs Agreements), Ocwen agreed to service the mortgage loans underlying the MSRs on the economic terms set forth in the Original Rights to MSRs Agreements. After the transfer of legal title as contemplated under the Original Rights to MSRs Agreements, Ocwen was to service the mortgage loans underlying the MSRs as subservicer on substantially the same economic terms.

On July 23, 2017 and January 18, 2018, we entered into a series of agreements with NRZ that collectively modify, supplement and supersede the arrangements among the parties as set forth in the Original Rights to MSRs Agreements. The July 23, 2017 agreements, as amended, include a Master Agreement, Transfer Agreement and Subservicing Agreement (collectively, the 2017 Agreements) pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s legal title to the remaining MSRs that were subject to the Original Rights to MSRs Agreements and under which Ocwen would subservice mortgage loans underlying the MSRs for an initial term of five years (the Initial Term).

On January 18, 2018, the parties entered into new agreements (including a Servicing Addendum) regarding the Rights to MSRs related to MSRs that remained subject to the Original Rights to MSRs Agreements as of January 1, 2018 and amended the Transfer Agreement (collectively, New RMSR Agreements) to accelerate the implementation of certain parts of our arrangements in order to achieve the intent of the 2017 Agreements sooner. Upon receiving the required consents and transferring the MSRs, Ocwen will subservice the mortgage loans underlying the MSRs pursuant to the 2017 Agreements.

Ocwen received lump-sum cash payments of $54.6 million and $279.6 million in September 2017 and January 2018 in accordance with the terms of the 2017 Agreements and New RMSR Agreements, respectively. These upfront payments generally represent the net present value of the difference between the future revenue stream Ocwen would have received under the Original Rights to MSRs Agreements and the future revenue stream Ocwen expects to receive under the 2017 Agreements and the New RMSR Agreements.

On August 17, 2018, Ocwen and NRZ entered into certain amendments to the New RMSR Agreements to include New Penn Financial, LLC dba Shellpoint Mortgage Servicing (Shellpoint), a subsidiary of NRZ, as a party and to conform the New RMSR Agreements to certain of the terms of the Shellpoint Subservicing Agreement between Ocwen and Shellpoint.

As of March 31, 2019, there remains $25.9 billion in UPB of MSRs for which legal title has not transferred to NRZ. In the event the required third-party consents are not obtained by May 31, 2019, and in accordance with the process set forth in, the New RMSR Agreements, such MSRs will either: (i) remain subject to the New RMSR Agreements at the option of NRZ, (ii) be acquired by Ocwen at a price determined in accordance with the terms of the New RMSR Agreements, or (iii) be sold to a third party in accordance with the terms of the New RMSR Agreements. Ocwen and NRZ are in discussions regarding the arrangements that will be made with respect to these MSRs.

At any time during the Initial Term, NRZ may terminate the Subservicing Agreement and Servicing Addendum for convenience, subject to Ocwen’s right to receive a termination fee and proper notice. Following the Initial Term, NRZ may extend the term of the Subservicing Agreement and Servicing Addendum for additional three-month periods by providing proper notice. Following the Initial Term, the Subservicing Agreement and Servicing Addendum can be cancelled by Ocwen on an annual basis. NRZ and Ocwen have the ability to terminate the Subservicing Agreement and Servicing Addendum for cause if certain specified conditions occur.

Under the terms of the Subservicing Agreement and Servicing Addendum, in addition to a base servicing fee, Ocwen will continue to receive ancillary income, which primarily includes late fees, loan modification fees and Speedpay^® fees. NRZ will receive all float earnings and deferred servicing fees related to delinquent borrower payments, as well as be entitled to receive certain real estate owned (REO) related income including REO referral commissions.

Prior to January 18, 2018, MSRs as to which necessary transfer consents had not yet been obtained continued to be subject to the terms of the agreements entered into in 2012 and 2013. Under the 2012 and 2013 agreements, the servicing fees payable under the servicing agreements underlying the Rights to MSRs were apportioned between NRZ and us. NRZ retained a fee based on the UPB of the loans serviced, and OLS received certain fees, including a performance fee based on servicing fees paid less an amount calculated based on the amount of servicing advances and the cost of financing those advances.

PHH Transactions

On December 28, 2016, PHH entered into an agreement to sell substantially all of its MSRs, and the related servicing advances, to New Residential Mortgage LLC, a wholly-owned subsidiary of NRZ. In connection with this agreement, on December 28, 2016, PHH also entered into a subservicing agreement with NRZ (collectively, the PHH MSR Agreements). The PHH subservicing agreement has an initial term of three years from the initial transaction date of June 16, 2017, subject to certain transfer and termination provisions.

Through its acquisition of PHH on October 4, 2018, Ocwen recognized MSRs of $42.3 billion UPB related to the PHH MSR Agreements. As of March 31, 2019, $3.2 billion in UPB of MSRs and related advances remain to be sold to NRZ under the PHH MSR Agreements pending receipt of required third-party consents. Ocwen and NRZ are in discussions regarding disposition of these assets.

At any time during each of the second and third years of the initial term, and subject to the payment of the applicable deboarding fee, NRZ may terminate an amount not to exceed 25% of the underlying mortgage loans with proper notice. The PHH MSR Agreements automatically renew for successive one-year terms unless either party provides notice of termination. NRZ and PHH each have the ability to terminate the subservicing agreement for cause if certain specified conditions occur.

Receivables

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Receivables

Note 11 – Receivables



	March 31, 2019			December 31, 2018
Servicing-related receivables:
Government-insured loan claims, net	$	99,918		$	105,258
Due from NRZ:
Sales and transfers of MSRs	23,430			23,757
Advance funding, subservicing fees and reimbursable expenses	9,238			30,845
Due from custodial accounts	17,780			9,060
Reimbursable expenses	11,992			11,508
Other	7,304			7,754
	169,662			188,182
Income taxes receivable	39,382			45,987
Other receivables	40,401			17,672
	249,445			251,841
Allowance for losses	(52,402		)	(53,579		)
	$	197,043		$	198,262

At March 31, 2019 and December 31, 2018, the allowance for losses relates to receivables of our Servicing business. Allowance for losses related to defaulted FHA- or VA-insured loans repurchased from Ginnie Mae guaranteed securitizations (government-insured loan claims) was $51.3 million and $52.5 million at March 31, 2019 and December 31, 2018, respectively.



Allowance for Losses - Government-Insured Loan Claims	Three Months Ended March 31,
Allowance for Losses - Government-Insured Loan Claims	2019			2018
Beginning balance	$	52,497		$	53,340
Provision	7,247			10,376
Charge-offs and other, net	(8,464		)	(6,123		)
Ending balance	$	51,280		$	57,593

Other Liabilities Disclosure [Abstract]

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.

+ References + Details

Other Assets

3 Months Ended

Mar. 31, 2019

Other Assets [Abstract]

Other Assets

Note 12 – Other Assets



	March 31, 2019		December 31, 2018
Contingent loan repurchase asset	$	399,202	$	302,581
Prepaid expenses	25,668		27,647
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,193		15,173
Real estate	7,256		7,368
Deferred tax asset, net	5,858		5,289
Prepaid lender fees, net (1)	5,496		6,589
Derivatives, at fair value	4,341		4,552
Security deposits	2,257		2,278
Mortgage backed securities, at fair value	1,786		1,502
Interest-earning time deposits	1,373		1,338
Other	5,742		5,250
	$	474,172	$	379,567


(1)	We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.

Borrowings

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Borrowings

Note 13 – Borrowings



Match Funded Liabilities					March 31, 2019				December 31, 2018
Borrowing Type	Maturity (1)	Amorti- zation Date (1)	Available Borrowing Capacity (2)		Weighted Average Interest Rate (3)		Balance		Weighted Average Interest Rate (3)		Balance
Advance Financing Facilities:
Advance Receivables Backed Notes - Series 2015-VF5 (4)	Dec. 2049	Dec. 2019	110,794		4.12		$	114,206	4.06		$	216,559
Advance Receivables Backed Notes - Series 2016-T2 (5)	Aug. 2049	Aug. 2019	—		2.99		235,000		2.99		235,000
Advance Receivables Backed Notes, Series 2018-T1 (5)	Aug. 2049	Aug. 2019	—		3.50		150,000		3.50		150,000
Advance Receivables Backed Notes, Series 2018-T2 (5)	Aug. 2050	Aug. 2020	—		3.81		150,000		3.81		150,000
Total Ocwen Master Advance Receivables Trust (OMART)			110,794		3.50		649,206		3.56		751,559
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (6)	Jun. 2049	Jun. 2019	64,822		5.10		178		5.03		26,725
Total Servicing Advance Financing Facilities			175,616		3.50	%	649,384		3.61	%	778,284

			$	175,616	3.50	%	$	649,384	3.61	%	$	778,284

(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 all of our 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 the repayment of advances allocated to the note may not be used to fund new advances.


(2)	Borrowing capacity under the OMART and OFAF facilities is available to us provided that we have eligible collateral to pledge according to their respective criteria. At March 31, 2019, $66.1 million of the available borrowing capacity of our advance financing notes could be used based on the amount of eligible collateral that had been pledged.


(3)	1ML was 2.49% and 2.50% at March 31, 2019 and December 31, 2018, respectively.


(4)	The total borrowing capacity of the Series 2015-VF5 variable notes is $225.0 million, with interest computed based on the lender’s cost of funds plus a margin of 105 to 250 bps.

(5)

Under the terms of the agreement, we must continue to borrow the full amount of the Series 2016-T2, 2018-T1 and 2018-T2 fixed-rate term notes until the amortization date. If there is insufficient eligible collateral to support the level of borrowing, the excess cash proceeds in an amount necessary to make up the deficit are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the outstanding notes. The Series 2016-T2, 2018-T1 and 2018-T2 term notes have a total combined borrowing capacity of $535.0 million. Rates on the individual classes of notes range from 2.72% to 4.53%. On August 15, 2018, we issued two $150.0 million fixed-rate term notes (Series 2018 T-1 and Series 2018-T2) with amortization dates of August 15, 2019 and August 17, 2020, respectively.


(6)	The borrowing capacity is $65.0 million with interest computed based on the lender’s cost of funds plus a margin of 180 to 450 bps. There is a ceiling of 300 bps for 3ML in determining the interest rate for these variable rate notes.

Pursuant to the 2017 Agreements and New RMSR Agreements, NRZ is obligated to fund new servicing advances with respect to the MSRs underlying the Rights to MSRs. We are dependent upon NRZ for funding the servicing advance obligations for Rights to MSRs where we are the servicer. NRZ currently uses advance financing facilities in order to fund a substantial portion of the servicing advances that they are contractually obligated to purchase pursuant to our agreements with them. As of March 31, 2019, we were the servicer of Rights to MSRs sold to NRZ pertaining to $25.9 billion in UPB, which excludes those Rights to MSRs where legal title has transferred to NRZ. NRZ’s associated outstanding servicing advances as of such date were approximately $842.9 million. Should NRZ’s advance financing facilities fail to perform as envisaged or should NRZ otherwise be unable to meet its advance funding obligations, our liquidity, financial condition and business could be materially and adversely affected. As the servicer, we are contractually required under our servicing agreements to make certain servicing advances even if NRZ does not perform its contractual obligations to fund those advances. See Note 10 — Rights to MSRs for additional information.

In addition, although we are not an obligor or guarantor under NRZ’s advance financing facilities, we are a party to certain of the facility documents as the servicer of the underlying loans on which advances are being financed. As the servicer, we make certain representations, warranties and covenants, including representations and warranties in connection with advances subsequently sold to, or reimbursed by, NRZ.



Financing Liabilities				Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Maturity	March 31, 2019		December 31, 2018
HMBS-Related Borrowings, at fair value (1)	Loans held for investment	1ML + 260 bps	(1)	$	5,614,688	$	5,380,448
Other Financing Liabilities
MSRs pledged, at fair value:
Original Rights to MSRs Agreements	MSRs	(2)	(2)	424,086		436,511
2017 Agreements and New RMSR Agreements	MSRs	(3)	(3)	119,932		138,854
PHH MSR Agreements	MSRs	(4)	(4)	407,198		457,491
				951,216		1,032,856
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (4)	MSRs	(5)	Feb. 2028	63,835		65,523
Financing liability - Owed to securitization investors, at fair value:
IndyMac Mortgage Loan Trust (INDX 2004-AR11) (5)	Loans held for investment	(6)	(6)	10,923		11,012
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (5)	Loans held for investment	(6)	(6)	13,639		13,803
				24,562		24,815
Advances pledged (6)	Advances on loans	(7)	(7)	4,085		4,419
				1,043,698		1,127,613

				$	6,658,386	$	6,508,061


(1)	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.


(2)	This financing liability has no contractual maturity or repayment schedule. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows underlying the related MSRs.

(3)

This financing liability arose in connection with lump sum payments received upon transfer of legal title of the MSRs related to the Rights to MSRs transactions to NRZ in September 2017. In connection with the execution of the New RMSR Agreements in January 2018, we received a lump sum payment of $279.6 million as compensation for foregoing certain payments under the Original Rights to MSRs Agreements. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows. The expected maturity of the liability is April 30, 2020, the date through which we were scheduled to be the servicer on loans underlying the Rights to MSRs per the Original Rights to MSRs Agreements.

(4)

Represents a liability for sales of MSRs that are accounted for as a secured borrowing which we assumed in connection with the acquisition of PHH. Under this accounting treatment, the MSRs transferred to NRZ remain on the consolidated balance sheet and the proceeds from the sale are recognized as a secured liability. We elected to record the liability at fair value consistent with the related MSRs.

(5)

OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (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. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes.

(6)

Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our unaudited consolidated financial statements, as more fully described in Note 4 – Securitizations and Variable Interest Entities. The holders of these certificates have no recourse against the assets of Ocwen. The certificates in the INDX 2004-AR11 Trust pay interest based on variable rates which are generally based on weighted average net mortgage rates and which range between 3.68% and 4.26% at March 31, 2019. The certificates in the RAST 2003-A11 Trust pay interest based on fixed rates ranging between 4.25% and 5.75% and a variable rate based on 1ML plus 0.45%. The maturity of the certificates occurs upon maturity of the loans held by the trust. The remaining loans in the INDX 2004-AR11 Trust and RAST 2003-A11 Trust have maturity dates extending through November 2034 and October 2033, respectively.


(7)	Certain sales of advances did not qualify for sales accounting treatment and were accounted for as a financing. This financing liability has no contractual maturity. The effective interest rate is based on 1ML plus a margin of 450 bps.



Other Secured Borrowings						Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Termination / Maturity	Available Borrowing Capacity (1)		March 31, 2019			December 31, 2018
SSTL (2)	(2)	1-Month Euro-dollar rate + 500 bps with a Eurodollar floor of 100 bps (2)	Dec. 2020	$	—	$	345,143		$	231,500
Mortgage loan warehouse facilities
Repurchase agreement (3)	Loans held for sale (LHFS)	1ML + 195 - 300 bps	Sep. 2019	59,468		40,532			74,693
Participation agreement (4)	LHFS	N/A	Jul. 2019	—		5,637			42,331
Mortgage warehouse agreement (5)	LHFS (reverse mortgages)	1ML + 275 bps; 1ML floor of 350 bps	Aug. 2019	—		12,466			8,009
Master repurchase agreement (6)	LHFS (forward and reverse mortgages)	1ML + 225 bps forward; 1ML + 275 bps reverse	Dec. 2019	170,060		29,940			30,680
Master repurchase agreement (7)	LHFS (reverse mortgages)	Prime + 0.0% (4.0% floor)	Jan. 2020	—		733			—
Master repurchase agreement (8)	N/A	1ML + 170bps	N/A	—		—			—
Participation agreement (9)	LHFS	N/A	Feb. 2020	—		8,731			—
				229,528		98,039			155,713

				$	229,528	443,182			387,213
Unamortized debt issuance costs - SSTL						(4,074		)	(3,098		)
Discount - SSTL						(2,126		)	(1,577		)
						$	436,982		$	382,538

Weighted average interest rate						5.90		%	5.49		%


(1)	Available borrowing capacity for our mortgage loan warehouse facilities does not consider the amount of the facility that the lender has extended on an uncommitted basis. Of the borrowing capacity extended on a committed basis, $89.0 million could be used at March 31, 2019 based on the amount of eligible collateral that could be pledged.

(2)

On March 18, 2019, we entered into a Joinder and Amendment Agreement (the Amendment) which amends the existing Amended and Restated SSTL Facility Agreement dated December 5, 2016 to provide an additional term loan of $120.0 million subject to the same maturity, interest rate and other material terms of existing borrowings under the SSTL. Effective with the Amendment, the original borrowing capacity of $335.0 million has been increased to $455.0 million and the quarterly principal payment has been increased from $4.2 million to $6.4 million beginning March 31, 2019. See information regarding collateral in the table below.

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) 1ML, plus a margin of 4.00% and subject to a base rate floor of 2.00% or (b) 1ML, plus a margin of 5.00% and subject to a 1ML floor of 1.00%. To date, we have elected option (b) to determine the interest rate.


(3)	The maximum borrowing under this agreement is $175.0 million, of which $100.0 million is available on a committed basis and the remainder is available at the discretion of the lender.

(4)

Under this participation agreement, the lender provides financing on an uncommitted basis of $175.0 million. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. 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. On April 29, 2019, the maturity date was extended to July 31, 2019. Effective with the merger of Homeward Residential Inc. into PMC in February 2019, an additional existing participation agreement with uncommitted borrowing capacity of $75.0 million and a maturity date of May 31, 2019 was terminated.


(5)	Under this participation agreement, the lender provides financing for $100.0 million on an uncommitted basis. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.


(6)	The maximum borrowing under this agreement is $250.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. The agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.


(7)	Under this agreement, the lender provides financing for up to $50.0 million on an uncommitted basis. On January 23, 2019, we renewed this facility through January 22, 2020.


(8)	This agreement was originally entered into by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. The lender provides financing for up to $200.0 million at the discretion of the lender. The agreement has no stated maturity date.

(9)

We entered into a master participation agreement on February 4, 2019 under which the lender will provide $300.0 million of borrowing capacity to PMC on an uncommitted basis. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. 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.



Senior Notes	Interest Rate	Maturity	Outstanding Balance
Senior Notes	Interest Rate	Maturity	March 31, 2019			December 31, 2018
Senior unsecured notes (1)
PHH	7.375%	Sep. 2019	$	97,521		$	97,521
PHH	6.375%	Aug. 2021	21,543			21,543
			119,064			119,064
Senior secured notes	8.375%	Nov. 2022	330,878			330,878
			449,942			449,942
Unamortized debt issuance costs			(1,959		)	(2,075		)
Fair value adjustments (1)			160			860
			$	448,143		$	448,727

(1)

These notes were originally issued by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. We recorded the notes at their respective fair values on the date of acquisition, and we are amortizing the resulting fair value purchase accounting adjustments over the remaining term of the notes. We have the option to redeem the notes due in August 2021, in whole or in part, on or after January 1, 2019 at a redemption price equal to 100.0% of the principal amount plus any accrued and unpaid interest.

At any time, OLS may redeem all or a part of the Senior Secured Notes, upon not less than 30 nor more than 60 days’ notice at a specified redemption price, plus accrued and unpaid interest to the date of redemption. OLS may redeem all or a part of the Senior Secured Notes at the redemption prices (expressed as percentages of principal amount) specified in the Indenture. The redemption prices during the twelve-month periods beginning on November 15^th of each year are as follows:



Year		Redemption Price
2018		106.281%
2019		104.188%
2020		102.094%
2021 and thereafter		100.000%

Upon a change of control (as defined in the Indenture), OLS is required to make an offer to the holders of the Senior Secured Notes to repurchase all or a portion of each holder’s Senior Secured Notes at a purchase price equal to 101.0% of the principal amount of the Senior Secured Notes purchased plus accrued and unpaid interest to the date of purchase.

Credit Ratings

Credit ratings are intended to be an indicator of the creditworthiness of a company, security or obligation. At March 31, 2019, the S&P long-term corporate rating was “B-”. On December 11, 2018, Moody’s affirmed the long-term corporate rating of “Caa1” and revised the outlook to stable from negative. It is possible that additional actions by credit rating agencies could have a material adverse impact on our liquidity and funding position, including materially changing the terms on which we may be able to borrow money.

Covenants

Under the terms of our debt agreements, we are subject to various qualitative and quantitative covenants. Collectively, these covenants include:


•	Financial covenants;


•	Covenants to operate in material compliance with applicable laws;

•

Restrictions on our ability to engage in various activities, including but not limited to incurring additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Ocwen, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or acquisitions or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Ocwen and its subsidiaries, creating liens on assets to secure debt of OLS or any guarantor, entering into transactions with affiliates;


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


•	Requirements to provide audited financial statements within specified timeframes, including requirements that Ocwen’s financial statements and the related audit report be unqualified as to going concern.

Many of the restrictive covenants arising from the indenture for the Senior Secured Notes will be suspended if the Senior Secured Notes achieve an investment-grade rating from both Moody’s and S&P and if no default or event of default has occurred and is continuing.

Financial covenants in certain of our debt agreements require that we maintain, among other things:


•	a 40% loan to collateral value ratio, as defined under our SSTL, as of the last date of any fiscal quarter; and


•	specified levels of tangible net worth and liquidity at the Ocwen level.

As of March 31, 2019, the most restrictive consolidated tangible net worth requirements contained in our debt agreements were for a minimum of $275.0 million in consolidated tangible net worth, as defined, at Ocwen under our match funded debt and certain of our other debt agreements.

As a result of the covenants to which we are subject, we may be limited in the manner in which we conduct our business and may be limited in our ability to engage in favorable business activities or raise additional forms of capital to finance future operations or satisfy future liquidity needs. In addition, breaches or events that may result in a default under our debt agreements include, among other things, nonpayment of principal or interest, noncompliance with our covenants, breach of representations, the occurrence of a material adverse change, insolvency, bankruptcy, certain material judgments and changes of control.

Covenants and default provisions of this type are commonly found in debt agreements such as ours. Certain of these covenants and default provisions are open to subjective interpretation and, if our interpretation was contested by a lender, a court may ultimately be required to determine compliance or lack thereof. In addition, our debt agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. If we fail to comply with our debt agreements and are unable to avoid, remedy or secure a waiver of any resulting default, we may be subject to adverse action by our lenders, including termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting our obligations and other legal remedies. Our lenders can waive their contractual rights in the event of a default.

We believe that we are in compliance with all of the qualitative and quantitative covenants in our debt agreements as of the date of these financial statements.

Collateral

Our assets held as collateral related to secured borrowings, committed under sale or other contractual obligations and which may be subject to secured liens under the SSTL and Senior Secured Notes are as follows at March 31, 2019:



			Collateral for Secured Borrowings
	Total Assets		Match Funded Liabilities		Financing Liabilities		Mortgage Loan Warehouse Facilities		Sales and Other Commitments (1)		Other (2)
Cash	$	263,188	$	—	$	—	$	—	$	—	$	263,188
Restricted cash	63,379		16,499		—		5,588		41,292		—
Mortgage servicing rights	1,400,191		—		913,465		—		9,210		477,516
Advances, net	225,360		—		8,569		—		32,057		184,734
Match funded advances	868,720		868,720		—		—		—		—
Loans held for sale	222,687		—		—		64,223		—		158,464
Loans held for investment	5,753,154		—		5,640,925		30,875		—		81,354
Receivables, net	197,043		—		—		—		—		197,043
Premises and equipment, net	69,316		—		—		—		—		69,316
Other assets	474,172		—		—		—		416,652		57,520
Total assets	$	9,537,210	$	885,219	$	6,562,959	$	100,686	$	499,211	$	1,489,135


(1)	Sales and Other Commitments include MSRs and related advances committed under sale agreements, Restricted cash and deposits held as collateral to support certain contractual obligations, and Contingent loan repurchase assets related to the Ginnie Mae early buyout program for which a corresponding liability is recognized in Other liabilities.

(2)

The borrowings under the SSTL are secured by a first priority security interest in substantially all of the assets of Ocwen, OLS, PHH, PMC and the other guarantors thereunder, excluding among other things, 35% of the voting capital stock of foreign subsidiaries, securitization assets and equity interests of securitization entities, assets securing permitted funding indebtedness and non-recourse indebtedness, REO assets, Agency MSRs with respect to which an acknowledgment agreement acknowledging such security interest has not been obtained, as well as other customary carve-outs (collectively, the Collateral). The Collateral is subject to certain permitted liens set forth under the SSTL and related security agreement. The Senior Secured Notes are guaranteed by Ocwen and the other guarantors that guarantee the SSTL, and the borrowings under the Senior Secured Notes are secured by a second priority security interest in the Collateral. Security interests securing borrowings under the SSTL and Senior Secured Notes may include amounts presented in Other as well as certain assets presented in Collateral for Secured Borrowings and Sales and Other Commitments, subject to permitted liens as defined in the applicable debt documents. The amounts presented here may differ in their calculation and are not intended to represent amounts that may be used in connection with covenants under the applicable debt documents.

Other Liabilities

3 Months Ended

Mar. 31, 2019

Other Liabilities

Note 14 – Other Liabilities



	March 31, 2019		December 31, 2018
Contingent loan repurchase liability	$	399,202	$	302,581
Other accrued expenses	81,393		99,739
Lease liability	60,057		—
Due to NRZ - Advance collections and servicing fees	55,907		53,001
Accrued legal fees and settlements	52,916		62,763
Liability for indemnification obligations	48,668		51,574
Servicing-related obligations	39,041		41,922
Checks held for escheat	22,299		20,686
Accrued interest payable	13,172		7,209
Liability for uncertain tax positions	12,492		13,739
Liability for unfunded pension obligation	12,452		12,683
Liability for mortgage insurance contingency	6,820		6,820
Derivatives, at fair value	4,209		4,986
Deferred revenue	2,699		4,441
Other	21,394		21,492
	$	832,721	$	703,636



Accrued Legal Fees and Settlements	Three Months Ended March 31,
Accrued Legal Fees and Settlements	2019			2018
Beginning balance	$	62,763		$	51,057
Net accrual (reversal of accrual) for probable losses (1)	(631		)	7,452
Payments (2)	(9,407		)	(6,036		)
Issuance of common stock in settlement of litigation (3)	—			(5,719		)
Net increase (decrease) in accrued legal fees	191			(299		)
Other	—			(150		)
Ending balance	$	52,916		$	46,305


(1)	Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the unaudited consolidated statements of operations.


(2)	Includes cash payments made in connection with resolved legal and regulatory matters.


(3)	In January 2018, Ocwen issued 1,875,000 shares of common stock in connection with a securities litigation settlement.

Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities

Note 15 – Derivative Financial Instruments and Hedging Activities

The following table summarizes derivative activity, including the derivatives used in each of our identified hedging programs. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes at March 31, 2019:



				Interest Rate Risk
				IRLCs and Loans Held for Sale			Borrowings
	IRLCs			Forward MBS Trades			Interest Rate Caps
Notional balance at March 31, 2019	$	117,770		$	105,500		$	193,750

Maturity	April 2019 - June 2019			April 2019			May 2019 to May 2020

Fair value of derivative assets (liabilities) (1) at:
March 31, 2019	$	3,982		$	(4,126	)	$	276
December 31, 2018	3,871			(4,983		)	678

Gains (losses) on derivatives during the three months ended:	Gain on loans held for sale, net						Other, Net
March 31, 2019	$	(341	)	$	(2,270	)	$	(402	)
March 31, 2018	1,377			2,398			193


(1)	Derivatives are reported at fair value in Other assets or in Other liabilities on our unaudited consolidated balance sheets.

As loans are originated and sold or as loan commitments expire, our forward MBS trade positions mature and are replaced by new positions based upon new loan originations and commitments and expected time to sell.

Foreign Currency Exchange Rate Risk

Our operations in India and the Philippines expose us to foreign currency exchange rate risk to the extent that our foreign exchange positions remain unhedged. We have not entered into any forward exchange contracts during the reported periods to hedge against the effect of changes in the value of the India Rupee or Philippine Peso. Foreign currency remeasurement exchange gains (losses) were $0.2 million and $(0.7) million, during the three months ended March 31, 2019 and 2018, respectively, and are reported in Other, net in the unaudited consolidated statements of operations. The losses in 2018 are primarily attributed to depreciation of the India Rupee against the U.S. Dollar.

Interest Rate Risk

Interest Rate Lock Commitments

A 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 both fixed and variable rate loan commitments.

Loans Held for Sale, at Fair Value

Mortgage loans held for sale that 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.

Match Funded Liabilities

As required by certain of our advance financing arrangements, we have purchased interest rate caps to minimize future interest rate exposure from increases in the interest on our variable rate debt as a result of increases in the index, such as 1ML, which is used in determining the interest rate on the debt. We currently do not hedge our fixed rate debt.

Accumulated Other Comprehensive Loss (AOCL)

Included in AOCL at March 31, 2019 and 2018, were $1.0 million and $1.2 million of deferred unrealized losses, before taxes of $0.1 million and $0.1 million, respectively, on interest rate swaps that we had designated as cash flow hedges. These deferred losses in AOCL are amortized to Other, net in the unaudited consolidated statements of operations.

Interest Expense

3 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Interest Expense

Note 16 – Interest Expense



	Three Months Ended March 31,
	2019		2018
Financing liabilities
NRZ	$	43,956	$	23,050
Other financing liabilities	1,069		1,194
	45,025		24,244
Senior notes	8,512		7,452
Other secured borrowings	7,878		8,188
Match funded liabilities	7,652		9,549
Other	1,378		1,377
	$	70,445	$	50,810

Basic and Diluted Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Basic and Diluted Earnings (Loss) per Share

Note 17 – Basic and Diluted Earnings (Loss) per Share

Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the period. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Ocwen by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options and restricted stock awards. For the three months ended March 31, 2019, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss.



	Three Months Ended March 31,
	2019			2018
Basic income (loss) per share
Net income (loss) attributable to Ocwen stockholders	$	(44,494	)	$	2,548

Weighted average shares of common stock	133,918,986			133,121,465

Basic income (loss) per share	$	(0.33	)	$	0.02

Diluted loss per share
Net income (loss) attributable to Ocwen stockholders	$	(44,494	)	$	2,548

Weighted average shares of common stock	133,918,986			133,121,465
Effect of dilutive elements
Stock option awards	—			—
Common stock awards	—			1,485,464
Dilutive weighted average shares of common stock	133,918,986			134,606,929

Diluted income (loss) per share	$	(0.33	)	$	0.02

Stock options and common stock awards excluded from the computation of diluted earnings per share
Anti-dilutive (1)	3,226,255			6,503,348
Market-based (2)	381,877			817,446


(1)	Includes stock options that are anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock, and stock awards that are anti-dilutive based on the application of the treasury stock method.


(2)	Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.

Business Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Business Segment Reporting

Note 18 – 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 mortgage servicing business and currently accounts for most of our total revenues. 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 purchases and originates conventional and government-insured residential forward and reverse mortgage loans. The loans are typically sold shortly after origination into a liquid market on a servicing retained (securitization) or servicing released (sale to a third party) basis. We originate loans directly with customers (retail channel) in forward lending as well as through our correspondent lending arrangements, broker relationships (wholesale) and retail channels of reverse mortgage lending.

Corporate Items and Other. Corporate Items and Other includes revenues and expenses of corporate support services, CR Limited (CRL), our wholly-owned captive reinsurance subsidiary, discontinued operations and inactive entities, business activities that are individually insignificant, revenues and expenses that are not directly related to other reportable segments, interest income on short-term investments of cash and interest expense on corporate debt. Corporate Items and Other also includes severance, retention, facility-related and other expenses incurred in the first quarter of 2019 related to our re-engineering plan. Our cash balances are included in Corporate Items and Other. CRL provides re-insurance related to coverage on foreclosed real estate properties owned or serviced by us.

We allocate a portion of interest income to each business segment, including interest earned on cash balances and short-term investments. We also allocate expenses incurred by corporate support services to each business segment. Interest expense on direct asset financings are recorded in the respective Servicing and Lending segments, while interest expense on the SSTL and Senior Notes is recorded in Corporate Items and Other and is not allocated.

Financial information for our segments is as follows:



	Three Months Ended March 31, 2019
Results of Operations	Servicing			Lending			Corporate Items and Other			Corporate Eliminations		Business Segments Consolidated
Revenue	$	259,274		$	41,091		$	3,523		$	—	$	303,888

Expenses (1) (2)	265,898			21,331			(7,124		)	—		280,105

Other income (expense):
Interest income	2,294			1,549			715			—		4,558
Interest expense	(54,698		)	(1,668		)	(14,079		)	—		(70,445		)
Bargain purchase gain	—			—			(285		)	—		(285		)
Other	1,525			219			(439		)	—		1,305
Other income (expense), net	(50,879		)	100			(14,088		)	—		(64,867		)

Income (loss) before income taxes	$	(57,503	)	$	19,860		$	(3,441	)	$	—	$	(41,084	)



	Three Months Ended March 31, 2018
Results of Operations	Servicing			Lending			Corporate Items and Other			Corporate Eliminations		Business Segments Consolidated
Revenue	$	226,096		$	29,195		$	4,966		$	—	$	260,257

Expenses (1)	171,095			20,296			15,110			—		206,501

Other income (expense):
Interest income	429			1,492			779			—		2,700
Interest expense	(34,517		)	(1,946		)	(14,347		)	—		(50,810		)
Other	(429		)	325			(577		)	—		(681		)
Other expense, net	(34,517		)	(129		)	(14,145		)	—		(48,791		)

Income (loss) before income taxes	$	20,484		$	8,770		$	(24,289	)	$	—	$	4,965



Total Assets	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
March 31, 2019	$	3,221,779	$	5,848,830	$	466,601	$	—	$	9,537,210

December 31, 2018	$	3,306,208	$	5,603,481	$	484,527	$	—	$	9,394,216

March 31, 2018	$	2,938,827	$	5,131,232	$	393,259	$	—	$	8,463,318



Depreciation and Amortization Expense	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
Three months ended March 31, 2019
Depreciation expense	$	806	$	36	$	7,709	$	8,551
Amortization of debt discount	—		—		351		351
Amortization of debt issuance costs	—		—		700		700

Three months ended March 31, 2018
Depreciation expense	$	1,358	$	29	$	5,140	$	6,527
Amortization of debt discount	—		—		264		264
Amortization of debt issuance costs	—		—		656		656

(1)


(2)	In the Corporate Items and Other segment for the three months ended March 31, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million of amounts previously recognized as expense.

Regulatory Requirements	3 Months Ended
Regulatory Requirements	Mar. 31, 2019
Brokers and Dealers [Abstract]
Regulatory Requirements	Note 19 – Regulatory Requirements Our business is subject to extensive regulation by federal, state and local governmental authorities, including the Consumer Financial Protection Bureau (CFPB), HUD, the SEC and various state agencies that license and conduct examinations of our servicing and lending activities. In addition, we operate under a number of regulatory settlements that subject us to ongoing reporting and other obligations. From time to time, we also receive requests (including requests in the form of subpoenas and civil investigative demands) from federal, state and local agencies for records, documents and information relating to our servicing and lending activities. The GSEs (and their conservator, the Federal Housing Finance Authority (FHFA)), Ginnie Mae, the United States Treasury Department, various investors, non-Agency securitization trustees and others also subject us to periodic reviews and audits. In the current regulatory environment, we have faced and expect to continue to face heightened regulatory and public scrutiny as an organization as well as stricter and more comprehensive regulation of the entire mortgage sector. We continue to work diligently to assess and understand the implications of the evolving regulatory environment in which we operate and to meet its requirements. We devote substantial resources to regulatory compliance, while, at the same time, striving to meet the needs and expectations of our customers, clients and other stakeholders. Our failure to comply with applicable federal, state and local laws, regulations and licensing requirements could lead to (i) administrative fines and penalties and litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) damage to our reputation, (vii) inability to raise capital or otherwise fund our operations and (viii) inability to execute on our business strategy. In addition to amounts paid to resolve regulatory matters, we could incur costs to comply with the terms of such resolutions, including, but not limited to, the costs of audits, reviews and third-party firms to monitor our compliance with such resolutions. We must comply with a large number of federal, state and local consumer protection and other laws and regulations, including, among others, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Telephone Consumer Protection Act (TCPA), 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 Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, as well as individual state licensing and foreclosure laws, individual state and local laws relating to registration of vacant or foreclosed properties, and federal and local bankruptcy rules. These laws and regulations apply to many facets of our business, including loan origination, default servicing and collections, 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 fees assessed on borrowers, and they mandate certain disclosures and notices to borrowers. These requirements can and do change as laws and regulations are enacted, promulgated, amended, interpreted and enforced, including through CFPB interpretive bulletins and other regulatory pronouncements. In addition, the actions of legislative bodies and regulatory agencies relating to a particular matter or business practice may or may not be coordinated or consistent. As a result, ensuring ongoing compliance with applicable legal and regulatory requirements can be challenging. Over the past decade, the general trend among federal, state and local legislative bodies and regulatory agencies as well as state attorneys general has been toward increasing laws, regulations, investigative proceedings and enforcement actions with regard to residential real estate lenders and servicers. New regulatory and legislative measures, or changes in enforcement practices, including those related to the technology we use, could, either individually or in the aggregate, require significant changes to our business practices, impose additional costs on us, limit our product offerings, limit our ability to efficiently pursue business opportunities, negatively impact asset values or reduce our revenues. Accordingly, they could materially and adversely affect our business and our financial condition, liquidity and results of operations. As further described below and in Note 21 – Contingencies, in recent years Ocwen has entered into a number of significant settlements with federal and state regulators and state attorneys general that have imposed additional requirements on our business. For example, we have made various commitments relating to the process of moving loans off the REALServicing® servicing system and onto Black Knight MSP, we have engaged a third-party auditor to perform an analysis with respect to our compliance with certain federal and state laws relating to the escrow of mortgage loan payments, we have revised various aspects of our complaint handling processes and we have extensive review and reporting obligations to various regulatory bodies with respect to various matters, including our financial condition. We devote significant management time and resources to compliance with these additional requirements. These requirements are generally unique to Ocwen and, while certain of our competitors may have entered into regulatory-related settlements of their own, our competitors are generally not subject to either the same specific or the same breadth of additional requirements to which we are subject. Ocwen has various subsidiaries that are licensed to originate and/or service forward and reverse mortgage loans in those jurisdictions in which they operate and which require licensing. Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements and satisfying minimum net worth requirements and non-financial requirements such as satisfactory completion of examinations relating to the licensee’s compliance with applicable laws and regulations. Failure to satisfy any of the requirements to which our licensed entities are subject could result in a variety of regulatory actions ranging from a fine, a directive requiring a certain step to be taken, entry into a consent order, a suspension or, ultimately, a revocation of a license, any of which could have a material adverse impact on our business, reputation, results of operations and financial condition. The minimum net worth requirements to which our licensed entities are subject are unique to each state and type of license. We believe our licensed entities were in compliance with all of their minimum net worth requirements at March 31, 2019. OLS, PMC and Liberty are also subject to seller/servicer obligations under agreements with one or more of the GSEs, HUD, FHA, VA and Ginnie Mae. These seller/servicer obligations contain financial requirements, including capital requirements related to tangible net worth, as defined by the applicable agency, an obligation to provide audited consolidated financial statements within 90 days of the applicable entity’s fiscal year end as well as extensive requirements regarding servicing, selling and other matters. To the extent that these requirements are not met or waived, the applicable agency may, at its option, utilize a variety of remedies including requirements to provide certain information or take actions at the direction of the applicable agency, requirements to deposit funds as security for our obligations, sanctions, suspension or even termination of approved seller/servicer status, which would prohibit future originations or securitizations of forward or reverse mortgage loans or servicing for the applicable agency. Any of these actions could have a material adverse impact on us. To date, none of these counterparties has communicated any material sanction, suspension or prohibition in connection with our seller/servicer obligations. We believe we were in compliance with applicable net worth requirements at March 31, 2019. Our non-Agency servicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have a material adverse impact on our business. The most restrictive of the various net worth requirements referenced above is based on the total assets of OLS, and the required net worth was $169.0 million at March 31, 2019. In addition, a number of foreign laws and regulations apply to our operations outside of the U.S., including laws and regulations that govern licensing, employment, safety, taxes and insurance and 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 these laws and regulations could result in adverse actions against us, including (i) restrictions on our operations in these countries, (ii) fines, penalties or sanctions or (iii) reputational damage. New York Department of Financial Services. In March 2017, we entered into a consent order with the NY DFS (the 2017 NY Consent Order) that provided for the termination of the engagement of a monitor appointed pursuant to an earlier 2014 consent order and for us to address certain concerns raised by the NY DFS that primarily relate to our servicing operations, as well as for us to comply with certain reporting and other obligations. In addition, in connection with the NY DFS’ approval in September 2018, of our acquisition of PHH, we agreed to satisfy certain post-closing requirements, including reporting obligations and record retention and other requirements relating to the transfer of loans collateralized by New York property (New York loans) onto Black Knight MSP and certain requirements with respect to the evaluation and supervision of management of both Ocwen Financial Corporation and PHH Mortgage Corporation. In addition, we are prohibited from boarding any additional loans onto the current REALServicing system and we must transfer all New York loans off the REALServicing system by April 30, 2020. The conditional approval also modified a preexisting restriction on our ability to acquire MSRs such that the restriction applies only to New York loans and, with respect to New York loans, provides that Ocwen may not increase its aggregate portfolio of New York loans serviced or subserviced by Ocwen by more than 2% per year (based on the unpaid principal balance of loans serviced at the prior calendar year-end). This restriction will remain in place until the NY DFS determines that all loans serviced on the REALServicing system have been successfully migrated to Black Knight MSP and that Ocwen has developed a satisfactory infrastructure to board sizable portfolios of MSRs. We continue to work with the NY DFS to address matters they continue to raise with us as well as to fulfill our commitments under the 2017 NY Consent Order and PHH acquisition conditional approval. To the extent that we fail to address adequately any concerns raised by the NY DFS or fail to fulfill our commitments to the NY DFS, the NY DFS could take regulatory action against us, including imposing fines or penalties or otherwise restricting our business activities. Any such actions could have a material adverse impact on our business, financial condition liquidity and results of operations. California Department of Business Oversight. In January 2015, OLS entered into a consent order (the 2015 CA Consent Order) with the CA DBO relating to our alleged failure to produce certain information and documents during a routine licensing examination. In February 2017, we entered into another consent order with the CA DBO (the 2017 CA Consent Order) that terminated the 2015 CA Consent Order and resolved open matters between us and the CA DBO. We believe that we have completed those obligations of the 2017 CA Consent Order that have already come due, and we have so notified the CA DBO. We have certain remaining reporting and other obligations under the 2017 CA Consent Order. Pursuant to the 2017 CA Consent Order, the CA DBO has engaged a third-party administrator who, at the expense of the CA DBO, has commenced work to confirm that Ocwen has completed certain commitments under the 2017 CA Consent Order. Still outstanding, however, is confirmation of our completion of $198.0 million in debt forgiveness for California borrowers by June 30, 2019. As of March 31, 2019, we believe that we have fulfilled this requirement. However, our completion of this requirement is subject to testing by the CA DBO’s third-party administrator who must confirm, among other things, that modified loans have remained current for specified time periods. If we are unable to satisfy this requirement by the deadline or obtain an extension, the 2017 CA Consent Order obligates us to pay the remaining amount to the CA DBO in cash. Our debt forgiveness activities take place as we modify loans - our loan modifications are designed to be sustainable for homeowners while providing a net present value for mortgage loan investors that is superior to that of foreclosure. Debt forgiveness as part of a loan modification is determined on a case-by-case basis in accordance with the applicable servicing agreement. Debt 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. If the CA DBO were to allege that we failed to comply with our obligations under the 2017 CA Consent Order or that we otherwise were in breach of applicable laws, regulations or licensing requirements, the CA DBO could also take regulatory actions against us, including imposing fines or penalties or otherwise restricting our business activities. Any such actions could have a material adverse impact on our business, financial condition liquidity and results of operations.

Commitments

3 Months Ended

Mar. 31, 2019

Other Commitments [Abstract]

Commitments

Note 20 — Commitments

Unfunded Lending Commitments

We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $1.5 billion at March 31, 2019. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. We also had short-term commitments to lend $97.6 million and $20.1 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at March 31, 2019. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, commonly referred to as warehouse lines.

HMBS Issuer Obligations

As an HMBS issuer, we assume certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount (MCA repurchases). Active repurchased loans are assigned to HUD and payment is received from HUD, typically within 60 days of repurchase. HUD reimburses us for the outstanding principal balance on the loan up to the maximum claim amount. We bear the risk of exposure if the amount of the outstanding principal balance on a loan exceeds the maximum claim amount. Inactive repurchased loans (the borrower is deceased, no longer occupies the property or is delinquent on tax and insurance payments) are generally liquidated through foreclosure and subsequent sale of REO.

The timing and amount of our obligation with respect to MCA repurchases is uncertain as repurchase is dependent largely on circumstances outside of our control including the amount and timing of future draws and the status of the loan. MCA repurchases are expected to continue to increase due to the increased flow of HECMs and REO that are reaching 98% of their maximum claim amount. Activity with regard to HMBS repurchases, including MCA repurchases, follows:



	Three Months Ended March 31, 2019
	Active					Inactive					Total
	Number		Amount			Number		Amount			Number		Amount
Beginning balance	10		$	2,047		252		$	14,833		262		$	16,880
Additions (1)	2		1,245			48		5,066			50		6,311
Recoveries, net (2)	(5	)	(914		)	(1	)	(1,411		)	(6	)	(2,325		)
Transfers	(1	)	(377		)	1		377			—		—
Changes in value	—		—			—		(513		)	—		(513		)
Ending balance	6		$	2,001		300		$	18,352		306		$	20,353


(1)	Total repurchases during the three months ended March 31, 2019 includes 25 loans totaling $5.8 million related to MCA repurchases.


(2)	Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable.

Active loan repurchases are classified as Receivables as reimbursement from HUD is generally received within 60 days and are initially recorded at fair value. Inactive loan repurchases are classified as Loans held for sale and are initially recorded at fair value. Loans are reclassified to REO in Other assets or Receivables as the loans move through the resolution process and permissible claims are submitted to HUD for reimbursement. Loans held for sale repurchased prior to October 1, 2018 are carried at the lower of cost or fair value. Receivables are valued at net realizable value. REO is valued at the estimated value of the underlying property less cost to sell.

Long-Term Contracts

Our business is currently dependent on many of the services and products provided by a subsidiary of Altisource Portfolio Solutions, S.A. (Altisource) under long-term agreements, many of which include renewal provisions.

Each of Ocwen and OMS are parties to a Services Agreement, a Technology Products Services Agreement, an Intellectual Property Agreement and a Data Center and Disaster Recovery Services Agreement with Altisource. 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. Ocwen and Altisource have also entered into a Master Services Agreement pursuant to which Altisource currently provides title services to Liberty. Ocwen also has a General Referral Fee Agreement with Altisource pursuant to which Ocwen receives referral fees which are paid out of the commission that would otherwise be paid to Altisource as the selling broker in connection with real estate sales services provided by Altisource. However, for MSRs that transferred to NRZ in September 2017, as well as those subject to the New RMSR Agreements we entered into in January 2018, we are not entitled to REO referral commissions.

Our servicing system runs on an information technology system that we license from Altisource pursuant to a statement of work under the Technology Products Services Agreements. If Altisource were to fail to fulfill its contractual obligations to us, including through a failure to provide services at the required level to maintain and support our systems, or if Altisource were to become unable to fulfill such obligations, our business and operations would suffer. We are currently in the process of transitioning to Black Knight MSP from REALServicing. On February 22, 2019, Ocwen and Altisource S.à r.l (a subsidiary of Altisource) signed a Binding Term Sheet, which among other things, confirms Altisource’s cooperation with the de-boarding of loans from Altisource’s REALServicing servicing system to Black Knight’s MSP servicing system. The Binding Term Sheet also includes provisions regarding assuring that data is accurately transferred to Ocwen, including Ocwen having the ability to verify data accuracy and having continued access to the REALServicing system for an acceptable period of time.

The Binding Term Sheet also amends certain provisions in the Services Agreements. After certain conditions have been met and where Ocwen has the right to select the services provider, Ocwen will use Altisource to provide the types of services that Altisource currently provides under the Services Agreements for at least 90% of services for all portfolios for which Ocwen is the servicer or subservicer, except that Altisource will be the provider for all such services for the portfolios: (i) acquired by Ocwen pursuant to loan servicing under agreements from Homeward (acquired in 2012) or assigned and assumed by Ocwen from Residential Capital, LLC, et al (assets acquired in 2013); and (ii) acquired from Ocwen, excluding certain portfolios in which PHH Corporation has an interest, by NRZ or its affiliates prior to the date of the Binding Term Sheet. Notwithstanding the foregoing, Altisource will be the provider of mortgage charge-off collections services under the Services Agreements. The Binding Term Sheet also sets forth a framework for negotiating additional service level changes in the future. As specified in the Binding Term Sheet, if Altisource fails certain performance standards for specified periods of time, then Ocwen may terminate Altisource as a provider for the applicable service(s), subject to Altisource’s right to cure. For certain claims arising from referrals received by Altisource after the effective date of the Binding Term Sheet, the provisions include reciprocal indemnification obligations in the event of negligence by either Party and Altisource’s indemnification obligations of Ocwen in the event of any breach by Altisource of its obligations under the Services Agreements. The limitations of liability provisions include an exception for losses either party suffers as a result of third party claims.

Certain services provided by Altisource under these agreements are charged to the borrower and/or mortgage loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales-related services. Similar to other vendors, in the event that Altisource’s activities do not comply with the applicable servicing criteria, we could be exposed to liability as the servicer and it could negatively impact our relationships with our servicing clients, borrowers or regulators, among others. Under certain circumstances, we would have recourse under our contractual agreements with Altisource if we were to experience adverse consequences as a result of Altisource’s non-compliance with applicable servicing criteria.

Contingencies

3 Months Ended

Mar. 31, 2019

Loss Contingency [Abstract]

Contingencies

Note 21 – Contingencies

When we become aware of a matter involving uncertainty for which we may incur a loss, we assess the likelihood of any loss. If a loss contingency is probable and the amount of the loss can be reasonably estimated, we record an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. If a reasonable estimate of loss cannot be made, we do not accrue for any loss or disclose any estimate of exposure to potential loss even if the potential loss could be material and adverse to our business, reputation, financial condition and results of operations. An assessment regarding the ultimate outcome of any such matter involves judgments about future events, actions and circumstances that are inherently uncertain. The actual outcome could differ materially. Where we have retained external legal counsel or other professional advisers, such advisers assist us in making such assessments.

Litigation

In the ordinary course of business, we are a defendant in, or a party or potential party to, many threatened and pending legal proceedings, including proceedings brought by regulatory agencies (discussed further under “Regulatory” below), those brought on behalf of various classes of claimants, and those brought derivatively on behalf of Ocwen against certain current or former officers and directors or others.

The majority of these proceedings are based on alleged violations of federal, state and local laws and regulations governing our mortgage servicing and lending activities, including, among others, the Dodd-Frank Act, the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act (FDCPA), the Real Estate Settlement Procedures Act, the Truth in Lending Act, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the TCPA, the Equal Credit Opportunity Act, as well as individual state licensing and foreclosure laws and federal and local bankruptcy rules. Such proceedings include wrongful foreclosure and eviction actions, allegations of wrongdoing in connection with lender-placed insurance arrangements, claims relating to our property preservation activities, claims related to REO management, claims relating to our written and telephonic communications with our borrowers such as claims under the TCPA, claims related to our payment, escrow and other processing operations, claims relating to fees imposed on borrowers relating to payment processing, payment facilitation, or payment convenience, claims related to ancillary products marketed and sold to borrowers, and claims regarding certifications of our legal compliance related to our participation in certain government programs. In some of these proceedings, claims for substantial monetary damages are asserted against us. For example, we are currently a defendant in various matters alleging that (1) certain fees imposed on borrowers relating to payment processing, payment facilitation, or payment convenience violate the Fair Debt Collection Practices Act (FDCPA), (2) we violated the Telephone Consumer Protection Act by using an automated telephone dialing system to call class members’ cell phones without their consent, (3) we committed securities fraud in connection with certain of our public disclosures, (4) certain fees we assess on borrowers are marked up improperly in violation of applicable state and federal law, (5) the solicitation and marketing to borrowers of certain ancillary products was unfair and deceptive and (6) that we breached fiduciary duties we purportedly owe to benefit plans due to the discretion we exercise in servicing certain securitized mortgage loans. In the future, we are likely to become subject to other private legal proceedings alleging failures to comply with applicable laws and regulations, including putative class actions, in the ordinary course of our business.

In view of the inherent difficulty of predicting the outcome of any threatened or pending legal proceedings, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, we generally cannot predict what the eventual outcome of such proceedings will be, what the timing of the ultimate resolution will be, or what the eventual loss, if any, will be. Any material adverse resolution could materially and adversely affect our business, reputation, financial condition and results of operations.

Where we determine that a loss contingency is probable in connection with a pending or threatened legal proceeding and the amount of our loss can be reasonably estimated, we record an accrual for the loss. We have accrued for losses relating to threatened and pending litigation that we believe are probable and reasonably estimable based on current information regarding these matters. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to threatened and pending litigation that materially exceed the amount accrued. Our accrual for probable and estimable legal and regulatory matters, including accrued legal fees, was $52.9 million at March 31, 2019. We cannot currently estimate the amount, if any, of reasonably possible losses above amounts that have been recorded at March 31, 2019.

In 2014, plaintiffs filed a putative class action against Ocwen in the United States District Court for the Northern District of Alabama, alleging that Ocwen violated the FDCPA by charging borrowers a convenience fee for making certain loan payments. See McWhorter et al. v. Ocwen Loan Servicing, LLC (N.D. Ala.). The plaintiffs are seeking statutory damages under the FDCPA, compensatory damages and injunctive relief. The presiding court previously ruled on Ocwen’s motions to dismiss, and Ocwen answered the operative complaint. Ocwen subsequently entered into an agreement in principle to resolve this matter, and in January 2019, the presiding court granted preliminary approval of the parties’ proposed class settlement. While Ocwen believes that it has sound legal and factual defenses, we agreed to this settlement in principle in order to avoid the uncertain outcome of litigation and the additional expense and demands on the time of its senior management that such litigation would involve. There can be no assurance that the court will finally approve the settlement. In the event the settlement is not finally approved, the litigation would continue, and we would vigorously defend the allegations made against Ocwen. Our accrual with respect to this matter is included in the $52.9 million legal and regulatory accrual referenced above. We cannot currently estimate the amount, if any, of reasonably possible loss above the amount accrued.

Ocwen has been named in putative class actions and individual actions related to its compliance with the TCPA. Generally, plaintiffs in these actions allege that Ocwen knowingly and willfully violated the TCPA by using an automated telephone dialing system to call class members’ cell phones without their consent. In July 2017, Ocwen entered into an agreement in principle to resolve two such putative class actions, which have been consolidated in the United States District Court for the Northern District of Illinois. See Snyder v. Ocwen Loan Servicing, LLC (N.D. Ill.); Beecroft v. Ocwen Loan Servicing, LLC (N.D. Ill.). Subject to final approval by the court, the settlement will include the establishment of a settlement fund to be distributed to impacted borrowers that submit claims for settlement benefits pursuant to a claims administration process.

While Ocwen believes that it has sound legal and factual defenses, Ocwen agreed to this settlement in principle in order to avoid the uncertain outcome of litigation and the additional expense and demands on the time of its senior management that such litigation would involve. In October 2017, the court preliminarily approved the settlement and, thereafter, we paid the settlement amount into an escrow account held by the settlement administrator. However, in September 2018, the Court denied the motion for final approval. In November 2018, the parties engaged in mediation to address the issues raised by the Court in its denial order. The parties thereafter reached a revised agreement, and in January 2019, the Court indicated it intended to grant the parties’ renewed motion for final approval, but to date has not yet done so. Additional lawsuits may be filed against us in relation to these matters. At this time, Ocwen is unable to predict the outcome of these existing lawsuits or any additional lawsuits that may be filed, the possible loss or range of loss, if any, associated with the resolution of such lawsuits or the potential impact such lawsuits may have on us or our operations. Ocwen intends to vigorously defend against these lawsuits. If our efforts to defend these lawsuits are not successful, our business, financial condition liquidity and results of operations could be materially and adversely affected.

We have settled two “opt-out” securities fraud actions brought on behalf of certain putative shareholders of Ocwen based on allegations in connection with the restatements of our 2013 and first quarter 2014 financial statements, among other matters. See Brahman Partners et al. v. Ocwen Financial Corporation et al. (S.D. Fla.) and Owl Creek et al. v. Ocwen Financial Corporation et al. (S.D. Fla.). Both of these cases have been dismissed with prejudice in February 2019.

We have previously disclosed that as a result of the federal and state regulatory actions taken in April 2017 and shortly thereafter, which are described below under “Regulatory”, and the impact on our stock price, several putative securities fraud class action lawsuits were filed against Ocwen and certain of its officers that contain allegations in connection with Ocwen’s statements concerning its efforts to satisfy the evolving regulatory environment, and the resources it devoted to regulatory compliance, among other matters. Those lawsuits were consolidated in the United States District Court for the Southern District of Florida in the matter captioned Carvelli v. Ocwen Financial Corporation et al. (S.D. Fla.). In April 2018, the court in Carvelli granted our motion to dismiss, and dismissed the consolidated case with prejudice. Plaintiffs thereafter filed a notice of appeal, and that appeal remains pending. Ocwen and the other defendants intend to defend themselves vigorously. Additional lawsuits may be filed against us in relation to these matters. At this time, Ocwen is unable to predict the outcome of this existing lawsuit or any additional lawsuits that may be filed, the possible loss or range of loss, if any, associated with the resolution of such lawsuits or the potential impact such lawsuits may have on us or our operations. If additional lawsuits are filed, Ocwen intends to vigorously defend itself against such lawsuits. If our efforts to defend the existing lawsuit or any future lawsuit are not successful, our business, financial condition, liquidity and results of operations could be materially and adversely affected.

Over the past several years, lawsuits have been filed by RMBS trust investors alleging that the trustees and master servicers breached their contractual and statutory duties by (i) failing to require loan servicers to abide by their contractual obligations; (ii) failing to declare that certain alleged servicing events of default under the applicable contracts occurred; and (iii) failing to demand that loan sellers repurchase allegedly defective loans, among other things. Ocwen has received several letters from trustees and master servicers purporting to put Ocwen on notice that the trustees and master servicers may ultimately seek indemnification from Ocwen in connection with the litigations. Ocwen has not yet been impleaded into any of these cases, but it has produced and continues to produce documents to the parties in response to third-party subpoenas.

Ocwen has, however, been impleaded as a third-party defendant into five consolidated loan repurchase cases first filed against Nomura Credit & Capital, Inc. in 2012 and 2013. Ocwen is vigorously defending itself in those cases against allegations by the mortgage loan seller-defendant that Ocwen failed to inform its contractual counterparties that it had discovered defective loans in the course of servicing them and had otherwise failed to service the loans in accordance with accepted standards. Ocwen is unable at this time to predict the ultimate outcome of these matters, the possible loss or range of loss, if any, associated with the resolution of these matters or any potential impact they may have on us or our operations. If, however, we were required to compensate claimants for losses related to the alleged loan servicing breaches, then our business, liquidity, financial condition and results of operations could be adversely affected.

In addition, several RMBS trustees have received notices of default alleging material failures by servicers to comply with applicable servicing agreements. Although Ocwen has not yet been sued by an RMBS trustee in response to a notice of default, there is a risk that Ocwen could be replaced as servicer as a result of said notices, that the trustees could take legal action on behalf of the trust certificateholders, or, under certain circumstances, that the RMBS investors who issue notices of default could seek to press their allegations against Ocwen, independent of the trustees. Previously, one such group of affiliated RMBS investors sought to direct one trustee to bring suit against Ocwen. The trustee declined to bring suit, and the RMBS investors instead brought suit against Ocwen directly. The trial court dismissed the RMBS investors’ suit with prejudice in 2018. The RMBS investors thereafter appealed the court’s dismissal, and on February 13, 2019, the appellate court affirmed the trial court’s dismissal. It is unknown whether the RMBS investors will attempt to further appeal this matter; Ocwen will continue to vigorously defend itself. We are unable at this time to predict what, if any, actions any trustee will take in response to a notice of default, nor can we predict at this time the potential loss or range of loss, if any, associated with the resolution of any notices of default or the potential impact on our operations. If Ocwen were to be terminated as servicer, or other related legal actions were pursued against Ocwen, it could have an adverse effect on Ocwen’s business, financing activities, financial condition and results of operations.

Regulatory

We are subject to a number of ongoing federal and state regulatory examinations, cease and desist orders, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions. Where we determine that a loss contingency is probable in connection with a regulatory matter and the amount of our loss can be reasonably estimated, we record an accrual for the loss. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to regulatory matters that materially exceed any accrued amount. Predicting the outcome of any regulatory matter is inherently difficult and we generally cannot predict the eventual outcome of any regulatory matter or the eventual loss, if any, associated with the outcome.

To the extent that an examination, audit or other regulatory engagement results in an alleged failure by us to comply with applicable laws, regulations or licensing requirements, or if allegations are made that we have failed to comply with applicable laws, regulations or licensing requirements or the commitments we have made in connection with our regulatory settlements (whether such allegations are made through administrative actions such as cease and desist orders, through legal proceedings or otherwise) or if other regulatory actions of a similar or different nature are taken in the future against us, this could lead to (i) administrative fines and penalties and litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) damage to our reputation, (vii) inability to raise capital or otherwise fund our operations and (viii) inability to execute on our business strategy. 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, liquidity and results of operations.

CFPB

In April 2017, the CFPB filed a lawsuit in the federal district court for the Southern District of Florida against Ocwen, OMS and OLS alleging violations of federal consumer financial laws relating to our servicing business dating back to 2014. The CFPB’s claims include allegations regarding (1) the adequacy of Ocwen’s servicing system and integrity of Ocwen’s mortgage servicing data, (2) Ocwen’s foreclosure practices and (3) various purported servicer errors with respect to borrower escrow accounts, hazard insurance policies, timely cancellation of private mortgage insurance, handling of customer complaints, and marketing of optional products. The CFPB alleges violations of unfair, deceptive acts or abusive practices, as well as violations of specific laws or regulations. The CFPB does not claim specific monetary damages, although it does seek consumer relief, disgorgement of allegedly improper gains, and civil money penalties. We believe we have factual and legal defenses to the CFPB’s allegations and are vigorously defending ourselves. Prior to the initiation of legal proceedings, we had been engaged with the CFPB in efforts to resolve the matter and recorded $12.5 million as of December 31, 2016 as a result of these discussions. Our accrual with respect to this matter is included in the $52.9 million legal and regulatory accrual referenced above. The outcome of the matters raised by the CFPB, whether through negotiated settlements, court rulings or otherwise, could have a material adverse impact on our business, reputation, financial condition, liquidity and results of operations.

State Licensing, State Attorneys General and Other Matters

Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements or satisfying minimum net worth requirements and non-financial requirements such as satisfactorily completing examinations as to the licensee’s compliance with applicable laws and regulations. Failure to satisfy any of the requirements to which our licensed entities are subject could result in a variety of regulatory actions ranging from a fine, a directive requiring a certain step to be taken, entry into a consent order, a suspension or ultimately a revocation of a license, any of which could have a material adverse impact on our results of operations and financial condition. In addition, we receive information requests and other inquiries, both formal and informal in nature, from our state financial regulators as part of their general regulatory oversight of our servicing and lending businesses. We also regularly engage with state attorneys general and the CFPB and, on occasion, we engage with other federal agencies, including the Department of Justice and various inspectors general on various matters, including responding to information requests and other inquiries. Many of our regulatory engagements arise from a complaint that the entity is investigating, although some are formal investigations or proceedings. The GSEs (and their conservator, FHFA), HUD, FHA, VA, Ginnie Mae, the United States Treasury Department, and others also subject us to periodic reviews and audits. We have in the past resolved, and may in the future resolve, matters via consent orders, payments of monetary amounts and other agreements in order to settle issues identified in connection with examinations or other oversight activities, and such resolutions could have material and adverse effects on our business, reputation, operations, results of operations and financial condition.

In April 2017 and shortly thereafter, mortgage and banking regulatory agencies from 29 states and the District of Columbia took regulatory actions against OLS and certain other Ocwen companies that alleged deficiencies in our compliance with laws and regulations relating to our servicing and lending activities. An additional state regulator brought legal action together with that state’s attorney general, as described below. In general, the regulatory actions took the form of orders styled as “cease and desist orders,” and we use that term to refer to all of the orders for ease of reference; for ease of reference we also include the District of Columbia as a state when we reference states below. All of the cease and desist orders were applicable to OLS, but additional Ocwen entities were named in some orders, including Ocwen Financial Corporation, OMS, Homeward, Liberty, OFSPL and Ocwen Business Solutions, Inc. (OBS).

We entered into agreements with all 29 states plus the District of Columbia to resolve these regulatory actions. These agreements generally contained the following key terms (the Multi-State Common Settlement Terms):


•	Ocwen would not acquire any new residential MSRs until April 30, 2018.


•	Ocwen would develop a plan of action and milestones regarding its transition from the REALServicing servicing system to an alternate servicing system and, with certain exceptions, would not board any new loans onto the REALServicing system.


•	In the event that Ocwen chose to merge with or acquire an unaffiliated company or its assets in order to effectuate a transfer of loans from the REALServicing system, Ocwen was required to comply with regulatory notice and waiting period requirements.


•	Ocwen would engage a third-party auditor to perform an analysis with respect to our compliance with certain federal and state laws relating to escrow by testing approximately 9,000 loan files relating to residential real property in various states, and Ocwen would develop corrective action plans for any errors identified by the third-party auditor.


•	Ocwen would develop and submit for review a plan to enhance our consumer complaint handling processes.


•	Ocwen would provide financial condition reporting on a confidential basis as part of each state’s supervisory framework through September 2020.

In addition to the terms described above, Ocwen entered into settlements with certain states on different or additional terms, which include making additional communications with and for borrowers, certain restrictions, certain review, reporting and remediation obligations, and the following additional terms:


•	Ocwen agreed with the Connecticut Department of Banking to pay certain amounts only in the event we fail to comply with certain requirements under our agreement with Connecticut.

•

In its agreement with the Maryland Office of the Commissioner of Financial Regulation, Ocwen agreed to complete an independent management assessment and enterprise risk assessment and to a prohibition, with certain de minimis exceptions, on repurchases of our stock until December 7, 2018. Ocwen also agreed to make certain payments to Maryland, to provide remediation to certain borrowers in the form of cash payments or credits and to pay certain amounts only in the event we fail to comply with certain requirements under our agreement with Maryland.

•

Ocwen agreed with the Massachusetts Division of Banks to pay $1.0 million to the Commonwealth of Massachusetts Mortgage Education Trust. Ocwen and the Massachusetts regulatory agency also agreed on a schedule pursuant to which we will regain eligibility to acquire residential MSRs on Massachusetts loans (including loans originated by Ocwen) as it meets certain thresholds in its transition to a new servicing system. All restrictions on Massachusetts MSR acquisitions will be lifted when Ocwen completes the second phase of a three-phase data integrity audit which will be conducted by an independent third-party following completion of Ocwen’s servicing system transition. The first phase of this audit, which was required to be completed prior to transitioning any Massachusetts loans to a new servicing system, has already been completed.


•	Ocwen agreed with the Nebraska Department of Banking and Finance until April 30, 2019, to limit its growth through acquisition from correspondent relationships to no more than ten percent per year for Nebraska loans (based on the total number of loans held at the prior calendar year-end).

Accordingly, we have now resolved all of the administrative actions (but not all of the legal actions, which are described below) taken by state regulators in April 2017.

We have taken substantial steps toward fulfilling our commitments under the agreements described above, including transferring loans to Black Knight MSP, developing and implementing certain enhancements to our consumer complaint process, engaging a third-party auditor who is currently performing escrow-related testing, and complying with our other information sharing and reporting obligations.

In April 2017 and shortly thereafter, and concurrent with the issuance of the cease and desist orders and the filing of the CFPB lawsuit discussed above, two state attorneys general took actions against us relating to our servicing practices. The Florida Attorney General, together with the Florida Office of Financial Regulation, filed a lawsuit in the federal district court for the Southern District of Florida against Ocwen, OMS and OLS alleging violations of federal and state consumer financial laws relating to our servicing business. These claims are similar to the claims made by the CFPB. The Florida lawsuit seeks injunctive and equitable relief, costs, and civil money penalties in excess of $10,000 per confirmed violation of the applicable statute. We believe we have factual and legal defenses to the allegations raised in this lawsuit and are vigorously defending ourselves. The outcome of this lawsuit, whether through a negotiated settlement, court rulings or otherwise, could potentially involve monetary fines or penalties or additional restrictions on our business and could be materially adverse to our business, reputation, financial condition, liquidity and results of operations. Our accrual with respect to this matter is included in the $52.9 million litigation and regulatory matters accrual referenced above. We cannot currently estimate the amount, if any, of reasonably possible loss above the amount currently accrued.

The Massachusetts Attorney General filed a lawsuit against OLS in the Superior Court for the Commonwealth of Massachusetts alleging violations of state consumer financial laws relating to our servicing business, including with respect to our activities relating to lender-placed insurance and property preservation fees. In April 2019, we agreed to resolve this matter without admitting liability. The resolution includes a payment to the Commonwealth of Massachusetts of $675,000, a loan modification program for certain eligible Massachusetts borrowers, and certain already-completed relief. The settlement amount of $675,000 was included in our legal and regulatory matters accrual as of December 31, 2018 and is included in the $52.9 million litigation and regulatory matters accrual referenced above.

Our accrual with respect to the administrative and legal actions initiated in April 2017 is included in the $52.9 million litigation and regulatory matters accrual referenced above. We will also incur costs complying with the terms of the settlements we have entered into, including the costs of conducting an escrow analysis, Maryland organizational assessments, Massachusetts data integrity audits, and transition to Black Knight MSP. For example, with respect to the escrow review, which is currently underway, we will incur remediation costs to the extent that errors are identified which require remediation. If we fail to comply with the terms of our settlements, additional administrative or legal regulatory actions could be taken against us. Such actions could have a materially adverse impact on our business, reputation, financial condition, liquidity and results of operations.

Certain of the state regulators’ cease and desist orders referenced a confidential supervisory memorandum of understanding (MOU) that we entered into with the Multistate Mortgage Committee (MMC), a multistate coalition of various mortgage banking regulators, and six states relating to a servicing examination from 2013 to 2015. The MOU contained various provisions relating to servicing practices and safety and soundness aspects of the regulatory review, as a step toward closing the 2013-2015 examination. Ocwen responded to the MOU items and continues to provide certain reports and other information pursuant to the MOU. There were no monetary or other penalties imposed under the MOU. However, the MOU prohibited us from repurchasing stock during the development of a going forward plan and, thereafter, except as permitted by the plan. We prepared and submitted a plan that contained no stock repurchase restrictions and, therefore, we do not believe we are currently restricted from repurchasing stock. However, the MMC may not agree with our interpretation. For this reason, and on the basis of our progress to date responding to our obligations under the MOU, we have requested that the MOU be terminated. To the extent that we cannot terminate the MOU, we may remain subject to a share repurchase restriction and continued reporting obligations.

On occasion, we engage with agencies of the federal government on various matters. For example, OLS received a letter from the Department of Justice, Civil Rights Division, notifying OLS that the Department of Justice had initiated a general investigation into OLS’s policies and procedures to determine whether violations of the Servicemembers Civil Relief Act by OLS might exist. We continue to provide information to the Department of Justice and we are engaged in ongoing discussions with the Department of Justice relating to this inquiry. In addition, Ocwen was named as a defendant in a HUD administrative complaint filed by a non-profit organization alleging discrimination in the manner in which the company maintains REO properties in minority communities. In February 2018, this matter was administratively closed, and similar claims were filed in federal court. We believe these claims are without merit and intend to vigorously defend ourselves.

In May 2016, Ocwen received a subpoena from the Office of Inspector General of HUD requesting the production of documentation related to HECM loans originated by Liberty. We understand that other lenders in the industry have received similar subpoenas. In April 2017, Ocwen received a subpoena from the Office of Inspector General of HUD requesting the production of documentation related to lender-placed insurance arrangements with a mortgage insurer and the amounts paid for such insurance. We understand that other servicers in the industry have received similar subpoenas. In May 2017, Ocwen received a subpoena from the Office of the Special Inspector General for the Troubled Asset Relief Program requesting documents and information related to Ocwen’s participation from 2009 to the present in the Treasury Department’s Making Home Affordable Program and its HAMP. We have been providing documents and information in response to these subpoenas. In April 2019, PMC received a subpoena from the VA Office of the Inspector General requesting the production of documentation related to the origination and underwriting of loans guaranteed by the Veterans Benefits Administration. We understand that other servicers in the industry have received similar subpoenas.

Loan Put-Back and Related Contingencies

Our contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. While the language in the purchase contracts varies, they contain provisions that require us 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 received origination representations and warranties from our network of approved originators in connection with loans we purchased through our correspondent lending channel. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur.

We believe that, as a result of historical actions by investors, 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.

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

We have exposure to origination representation, warranty and indemnification obligations because of our lending, sales and securitization activities and in connection with our servicing practices. We initially recognize these obligations at fair value. Thereafter, the estimation of the liability considers probable future obligations based on industry data of loans of similar type segregated by year of origination, to the extent applicable, 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 monitor the adequacy of the overall liability and make adjustments, as necessary, after consideration of other qualitative factors including ongoing dialogue and experience with our counterparties.

At March 31, 2019 and March 31, 2018, we had outstanding representation and warranty repurchase demands of $46.3 million UPB (273 loans) and $31.4 million UPB (192 loans), respectively. Outstanding representation and warranty repurchase demands at March 31, 2019 include $26.0 million UPB (173 loans) related to PHH. 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 representation and warranty obligations, compensatory fees for foreclosures that may ultimately exceed investor timelines and similar indemnification obligations:



	Three Months Ended March 31,
	2019			2018
Beginning balance	$	49,267		$	19,229
Provision for (reversal of) representation and warranty obligations	(2,155		)	57
New production reserves	75			104
Charge-offs and other (1)	(573		)	(1,844		)
Ending balance	$	46,614		$	17,546


(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 other 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 March 31, 2019.

Other

OLS, on its own behalf and on behalf of various investors, has been engaged in a variety of activities to seek payments from mortgage insurers for unpaid claims, including claims where the mortgage insurers paid less than the full claim amount. Ocwen believes that many of the actions by mortgage insurers were in violation of the applicable insurance policies and insurance law. In some cases, Ocwen has entered into tolling agreements, initiated arbitration or litigation, engaged in settlement discussions, or taken other similar actions. To date, Ocwen has settled with three mortgage insurers, and expects the ultimate outcome to result in recovery of additional unpaid claims, although we cannot quantify the likely amount at this time.

We may, from time to time, have affirmative indemnification claims against parties from whom we acquired MSRs or other assets. Although we pursue these claims, we cannot currently estimate the amount, if any, of further recoveries.

Organization, Business Environment and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Use of Estimates and Assumptions

Reclassifications

Certain amounts in the unaudited consolidated statement of cash flows for the three months ended March 31, 2018 have been reclassified to conform to the current year presentation as follows:


•	Within the Cash flows from operating activities section, we reclassified Amortization of debt issuance costs of $0.7 million to Other, net.


•	Within the Cash flows from financing activities section, we reclassified repayments of the SSTL of $4.2 million from Repayment of mortgage loan warehouse facilities and other secured borrowings to a new separate line item (Repayment of SSTL borrowings).

These reclassifications had no impact on our consolidated cash flows from operating, investing or financing activities.

Recently Adopted And Issued Accounting Standards

Recently Adopted Accounting Standards

Leases (Accounting Standards Update (ASU) 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01)

This ASU requires a lessee to recognize right-of-use (ROU) assets and lease liabilities on the balance sheet, regardless of whether the lease is classified as a finance or operating lease.



	Balances as of December 31, 2018(1)			Recognition of Gross ROU Asset and Lease Liability			Reclassification of Existing Balances			Balances January 1, 2019 after Transition Adjustments (2)
Premises and Equipment:
Right-of-use assets	$	—		$	66,231		$	(21,438	)	$	44,793
Other Assets:
Prepaid expenses (rent)	977			—			(977		)	—
Other Liabilities:
Liability for lease abandonments and deferred rent	(5,498		)	—			5,498			—
Lease liability	—			(66,247		)	977			65,270
Liabilities related to discontinued operations:
Liability for lease abandonments (3)	(15,940		)	—			15,940			—
Retained Earnings:
Cumulative effect of adopting ASU 2016-02	—			16			—			16


(1)	Represents amounts related to leases impacted by the adoption of this ASU that were included in our December 31, 2018 consolidated balance sheet.


(2)	ROU assets as of January 1, 2019 after transition adjustments includes $30.4 million related to premises located in the U.S., $13.6 million related to premises located in India and the Philippines, and $0.7 million related to equipment.


(3)	Represents lease impairments recognized by PHH prior to the acquisition.



Annual obligation for the twelve months ended March 31,
2020	$	17,914
2021	16,227
2022	15,467
2023	11,431
2024	2,400
Thereafter	1,235
	64,674
Less: Adjustment to present value	(4,617		)
Total minimum lease payments, net	$	60,057

Organization, Business Environment and Basis of Presentation - (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Right of Use Asset and Lease Liability



	Balances as of December 31, 2018(1)			Recognition of Gross ROU Asset and Lease Liability			Reclassification of Existing Balances			Balances January 1, 2019 after Transition Adjustments (2)
Premises and Equipment:
Right-of-use assets	$	—		$	66,231		$	(21,438	)	$	44,793
Other Assets:
Prepaid expenses (rent)	977			—			(977		)	—
Other Liabilities:
Liability for lease abandonments and deferred rent	(5,498		)	—			5,498			—
Lease liability	—			(66,247		)	977			65,270
Liabilities related to discontinued operations:
Liability for lease abandonments (3)	(15,940		)	—			15,940			—
Retained Earnings:
Cumulative effect of adopting ASU 2016-02	—			16			—			16


(1)	Represents amounts related to leases impacted by the adoption of this ASU that were included in our December 31, 2018 consolidated balance sheet.


(2)	ROU assets as of January 1, 2019 after transition adjustments includes $30.4 million related to premises located in the U.S., $13.6 million related to premises located in India and the Philippines, and $0.7 million related to equipment.


(3)	Represents lease impairments recognized by PHH prior to the acquisition.

Schedule of Maturity Analysis of our Lease Liability

A maturity analysis of our lease liability as of March 31, 2019 is summarized as follows:



Annual obligation for the twelve months ended March 31,
2020	$	17,914
2021	16,227
2022	15,467
2023	11,431
2024	2,400
Thereafter	1,235
	64,674
Less: Adjustment to present value	(4,617		)
Total minimum lease payments, net	$	60,057

Business Acquisitions (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Purchase Price Allocation of Assets Acquired and Liabilities Assumed



Purchase Price Allocation	October 4, 2018			Adjustments			Revised
Cash	$	423,088		$	—		$	423,088
Restricted cash	38,813			—			38,813
Mortgage servicing rights	518,127			—			518,127
Advances, net	96,163			—			96,163
Loans held for sale	42,324			358			42,682
Receivables, net	46,838			—			46,838
Premises and equipment, net	15,203			—			15,203
Real estate owned	3,289			—			3,289
Other assets	6,293			—			6,293
Assets related to discontinued operations	2,017			—			2,017
Financing liabilities (MSRs pledged, at fair value)	(481,020		)	—			(481,020		)
Other secured borrowings, net	(27,594		)	—			(27,594		)
Senior notes, net (Senior unsecured notes)	(120,624		)	—			(120,624		)
Accrued legal fees and settlements	(9,960		)	—			(9,960		)
Other accrued expenses	(36,889		)	—			(36,889		)
Loan repurchase and indemnification liability	(27,736		)	—			(27,736		)
Unfunded pension liability	(9,815		)	—			(9,815		)
Other liabilities	(34,131		)	(643		)	(34,774		)
Liabilities related to discontinued operations	(21,954		)	—			(21,954		)
Total identifiable net assets	422,432			(285		)	422,147
Total consideration paid to seller	(358,396		)	—			(358,396		)
Bargain purchase gain	$	64,036		$	(285	)	$	63,751

Schedule of Pro Forma Results of Operations



Revenues	$	344,522
Net loss from continuing operations	$	(11,201	)

Cost Reengineering Plan (Tables)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Expenses Incurred To-Date, Including an Estimate of Remaining and Total Plan Costs

The following is a summary of expenses incurred to-date, including an estimate of remaining and total plan costs:



	Three Months Ended March 31, 2019
	Employee-related		Facility-related		Other		Total
Costs incurred in current year:
First quarter (1)	$	19,163	$	—	$	2,973	$	22,136
Estimate of remaining costs (2)	20,837		7,000		15,027		42,864
Total plan costs	$	40,000	$	7,000	$	18,000	$	65,000


(1)	The above expenses were all incurred within the Corporate Items and Other segment. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the unaudited consolidated statements of operations.


(2)	We expect to incur the remaining plan costs within the year ending December 31, 2019.

Schedule of Aggregate Activity of Liability for Re-Engineering Plan Costs

The following table provides a summary of the aggregate activity of the liability for the re-engineering plan costs:



	Three Months Ended March 31, 2019
	Employee-related			Facility-related		Other			Total
Beginning balance	$	—		$	—	$	—		$	—
Charges	19,163			—		2,973			22,136
Payments	(2,600		)	—		(1,747		)	(4,347		)
Ending balance	$	16,563		$	—	$	1,226		$	17,789

Securitizations and Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2019

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:



	Three Months Ended March 31,
	2019			2018
Proceeds received from securitizations	$	242,960		$	377,499
Servicing fees collected	15,918			10,348
Purchases of previously transferred assets, net of claims reimbursed	(904		)	(2,170		)
	$	257,974		$	385,677

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



	March 31, 2019		December 31, 2018
Carrying value of assets
MSRs, at fair value	$	123,448	$	132,774
Advances and match funded advances	150,136		138,679
UPB of loans transferred (1)	15,147,575		15,600,971
Maximum exposure to loss	$	15,421,159	$	15,872,424

Schedule of Carrying Value of Assets and Liabilities of Consolidated Mortgage-backed Securitization Trusts



	March 31, 2019		December 31, 2018
Loans held for investment, at fair value - Restricted for securitization investors	$	26,237	$	26,520
Financing liability - Owed to securitization investors, at fair value	24,562		24,815

Fair Value (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Assets and Liabilities



		March 31, 2019				December 31, 2018
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Loans held for sale
Loans held for sale, at fair value (a)	2	$	153,140	$	153,140	$	176,525	$	176,525
Loans held for sale, at lower of cost or fair value (b)	3	69,547		69,547		66,097		66,097
Total Loans held for sale		$	222,687	$	222,687	$	242,622	$	242,622



		March 31, 2019						December 31, 2018
	Level	Carrying Value			Fair Value			Carrying Value			Fair Value

Loans held for investment
Loans held for investment - Reverse mortgages (a)	3	$	5,726,917		$	5,726,917		$	5,472,199		$	5,472,199
Loans held for investment - Restricted for securitization investors (a)	3	26,237			26,237			26,520			26,520
Total loans held for investment		$	5,753,154		$	5,753,154		$	5,498,719		$	5,498,719

Advances (including match funded) (c)	3	$	1,094,080		$	1,094,080		$	1,186,676		$	1,186,676
Receivables, net (c)	3	197,043			197,043			198,262			198,262
Mortgage-backed securities (a)	3	1,786			1,786			1,502			1,502
U.S. Treasury notes (a)	1	1,068			1,068			1,064			1,064
Corporate bonds (a)	2	446			446			450			450

Financial liabilities:
Match funded liabilities (c)	3	$	649,384		$	649,121		$	778,284		$	776,485
Financing liabilities:
HMBS-related borrowings (a)	3	$	5,614,688		$	5,614,688		$	5,380,448		$	5,380,448
Financing liability - MSRs pledged (a)	3	951,216			951,216			1,032,856			1,032,856
Financing liability - Owed to securitization investors (a)	3	24,562			24,562			24,815			24,815
Other (c)	3	67,920			51,980			69,942			53,570
Total Financing liabilities		$	6,658,386		$	6,642,446		$	6,508,061		$	6,491,689
Other secured borrowings:
Senior secured term loan (c) (d)	2	$	338,943		$	344,710		$	226,825		$	227,449
Other (c)	3	98,039			98,039			155,713			155,713
Total Other secured borrowings		$	436,982		$	442,749		$	382,538		$	383,162

Senior notes:
Senior unsecured notes (c) (d)	2	$	119,224		$	115,657		$	119,924		$	119,258
Senior secured notes (c) (d)	2	328,919			315,261			328,803			306,889
Total Senior notes		$	448,143		$	430,918		$	448,727		$	426,147

Derivative financial instrument assets (liabilities)
Interest rate lock commitments (a)	2	$	3,982		$	3,982		$	3,871		$	3,871
Forward mortgage-backed securities (a)	1	(4,126		)	(4,126		)	(4,983		)	(4,983		)
Interest rate caps (a)	3	276			276			678			678

Mortgage servicing rights (a)	3	$	1,400,191		$	1,400,191		$	1,457,149		$	1,457,149


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


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


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


(d)	The carrying values are net of unamortized debt issuance costs and discount. See Note 13 – Borrowings for additional information.

Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities

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			Loans Held for Inv. - Restricted for Securitiza- tion Investors			Financing Liability - Owed to Securit - ization Investors			Mortgage-Backed Securities		Financing Liability - MSRs Pledged			Derivatives			MSRs
Three months ended March 31, 2019
Beginning balance	$	5,472,199		$	(5,380,448	)	$	26,520		$	(24,815	)	$	1,502	$	(1,032,856	)	$	678		$	1,457,149
Purchases, issuances, sales and settlements
Purchases	—			—			—			—			—		(577		)	—			55,920
Issuances	209,264			(210,563		)	—			—			—		—			—			—
Sales	—			—			—			—			—		—			—			(567		)
Settlements	(104,630		)	102,389			(283		)	253			—		50,129			—			(3,313		)
Transfers (to) from:
Loans held for sale, at fair value	(396		)	—			—			—			—		—			—			—
Other assets	(119		)	—			—			—			—		—			—			—
Receivables, net	(68		)	—			—			—			—		—			—			—
	104,051			(108,174		)	(283		)	253			—		49,552			—			52,040
Total realized and unrealized gains (losses)
Included in earnings:
Change in fair value (1)	150,667			(126,066		)	—			—			284		26,237			(402		)	(108,998		)
Calls and other	—			—			—			—			—		5,851			—			—
Included in Other comprehensive income	—			—									—		—			—			—
	150,667			(126,066		)	—			—			284		32,088			(402		)	(108,998		)
Transfers in and / or out of Level 3	—			—			—			—			—		—			—			—
Ending balance	$	5,726,917		$	(5,614,688	)	$	26,237		$	(24,562	)	$	1,786	$	(951,216	)	$	276		$	1,400,191



	Loans Held for Investment - Reverse Mortgages			HMBS-Related Borrowings			Mortgage-Backed Securities		Financing Liability - MSRs Pledged			Derivatives			MSRs
Three months ended March 31, 2018
Beginning balance	$	4,715,831		$	(4,601,556	)	$	1,592	$	(508,291	)	$	2,056		$	671,962
Purchases, issuances, sales and settlements
Purchases	—			—			—		—			—			2,378
Issuances	251,086			(222,825		)	—		(279,586		)	—			(1,758		)
Sales	—			—			—		—			—			(131		)
Settlements	(82,719		)	80,811			—		54,547			(371		)	—
Transfers (to) from:
MSRs carried at amortized cost, net of valuation allowance	—			—			—		—			—			418,925
Loans held for sale, at fair value	(184		)	—			—		—			—			—
Other assets	(104		)	—			—		—			—			—
Receivables, net	(50		)	—			—		—			—			—
	168,029			(142,014		)	—		(225,039		)	(371		)	419,414
Total realized and unrealized gains (losses)
Included in earnings:
Change in fair value	104,291			(94,623		)	87		16,712			181			(17,129		)
Calls and other	—			—			—		694			—			—
Included in Other comprehensive income	—			—			—		—			—			—
	104,291			(94,623		)	87		17,406			181			(17,129		)
Transfers in and / or out of Level 3	—			—			—		—			—			—
Ending balance	$	4,988,151		$	(4,838,193	)	$	1,679	$	(715,924	)	$	1,866		$	1,074,247


(1)	The Change in fair value adjustments on Loans held for investment for the three months ended March 31, 2019 include $2.9 million in connection with the fair value election for future draw commitments on HECM reverse mortgage loans purchased or originated after December 31, 2018.

Summary of Estimated Change in the Value of MSRs Carried at Fair Value

The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of March 31, 2019 given 10% and 20% hypothetical shifts in prepayment speeds and interest rate assumptions:



Adverse change in fair value	10%			20%
Weighted average prepayment speeds	$	(127,188	)	$	(245,678	)
Weighted average discount rate	(39,816		)	(77,754		)

Loans Held for Investment [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation



Significant valuation assumptions	March 31, 2019		December 31, 2018
Life in years
Range	3.2 to 7.5		3.0 to 7.6
Weighted average	6.0		5.9
Conditional repayment rate
Range	6.8% to 36.1%		6.8% to 38.4%
Weighted average	14.4	%	14.7	%
Discount rate	3.1	%	3.4	%

Mortgage Servicing Rights - Fair Value [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation



Significant valuation assumptions	March 31, 2019						December 31, 2018
Significant valuation assumptions	Agency			Non-Agency			Agency			Non-Agency
Weighted average prepayment speed	9.8		%	15.4		%	8.5		%	15.4		%
Weighted average delinquency rate	6.5		%	27.2		%	6.6		%	27.1		%
Advance financing cost	5-year swap			5-yr swap plus 2.75%			5-year swap			5-yr swap plus 2.75%
Interest rate for computing float earnings	5-year swap			5-yr swap minus 0.50%			5-year swap			5-yr swap minus 0.50%
Weighted average discount rate	9.0		%	12.7		%	9.1		%	12.8		%
Weighted average cost to service (in dollars)	$	89		$	297		$	90		$	297

HMBS - Related Borrowings [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation



Significant valuation assumptions	March 31, 2019		December 31, 2018
Life in years
Range	3.2 to 7.5		3.0 to 7.6
Weighted average	6.0		5.9
Conditional repayment rate
Range	6.8% to 36.1%		6.8% to 38.4%
Weighted average	14.4	%	14.7	%
Discount rate	3.1	%	3.3	%

Mortgage Servicing Rights Pledged [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation



Significant valuation assumptions	March 31, 2019			December 31, 2018
Weighted average prepayment speed	14.3		%	13.9		%
Weighted average delinquency rate	20.3		%	20.3		%
Advance financing cost	5-year swap plus 0% to 2.75%			5-year swap plus 0% to 2.75%
Interest rate for computing float earnings	5-year swap minus 0% to 0.50%			5-year swap minus 0% to 0.50%
Weighted average discount rate	11.9		%	12.0		%
Weighted average cost to service (in dollars)	$	233		$	234

Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2019

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

Schedule of Loans Held for Sale Fair Value



Loans Held for Sale - Fair Value	Three Months Ended March 31,
Loans Held for Sale - Fair Value	2019			2018
Beginning balance	$	176,525		$	214,262
Originations and purchases	219,867			205,994
Proceeds from sales	(235,895		)	(293,063		)
Principal collections	(5,516		)	(804		)
Transfers from (to):
Loans held for investment, at fair value	396			184
Receivables, net	(581		)	—
Real estate owned (Other assets)	(696		)	—
Gain on sale of loans	8,191			4,652
Decrease in fair value of loans	(228		)	(3,871		)
Other	(8,923		)	(1,506		)
Ending balance (1)	$	153,140		$	125,848


(1)	At March 31, 2019 and 2018, the balances include $(7.8) million and $3.8 million, respectively, of fair value adjustments.

Schedule of Loans Held for Sale at Lower Cost or Fair Value, Activity



Loans Held for Sale - Lower of Cost or Fair Value	Three Months Ended March 31,
Loans Held for Sale - Lower of Cost or Fair Value	2019			2018
Beginning balance	$	66,097		$	24,096
Purchases	84,315			152,084
Proceeds from sales	(62,135		)	(86,421		)
Principal collections	(1,776		)	(3,446		)
Transfers from (to):
Receivables, net	(27,411		)	(35,666		)
Real estate owned (Other assets)	(1,095		)	(1,195		)
Gain on sale of loans	551			692
(Increase) decrease in valuation allowance	706			(1,185		)
Other	10,295			3,271
Ending balance (1)	$	69,547		$	52,230

(1)

Schedule of Gains on Loans Held for Sale, Net



Gain on Loans Held for Sale, Net	Three Months Ended March 31,
Gain on Loans Held for Sale, Net	2019			2018
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	828		$	2,378
Fair value gains related to transfers of reverse mortgage loans, net	6,483			10,968
Gain on sale of repurchased Ginnie Mae loans	538			692
Gain on sale of forward mortgage loans	10,444			5,767
Other, net	2,130			248
	20,423			20,053
Change in fair value of IRLCs	(341		)	1,377
Change in fair value of loans held for sale	(142		)	(3,924		)
Gain (loss) on economic hedge instruments	(2,270		)	2,398
Other	(75		)	(104		)
	$	17,595		$	19,800

Valuation Allowance for Loans Held for Sale [Member]

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

Schedule of Changes in Allowance For Losses



Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value	Three Months Ended March 31,
	2019			2018
Beginning balance	$	11,569		$	7,318
Provision	642			853
Transfer from Liability for indemnification obligations (Other liabilities)	67			719
Sales of loans	(1,415		)	(409		)
Other	—			22
Ending balance	$	10,863		$	8,503

Advances (Tables)

3 Months Ended

Mar. 31, 2019

Advances [Abstract]

Schedule of Advances Paid on Behalf of Borrowers or on Foreclosed Properties



	March 31, 2019			December 31, 2018
Principal and interest	$	47,039		$	43,671
Taxes and insurance	141,466			160,373
Foreclosures, bankruptcy and other	59,990			68,597
	248,495			272,641
Allowance for losses	(23,135		)	(23,259		)
	$	225,360		$	249,382

Schedule of Activity in Advances

The following table summarizes the activity in net advances:



	Three Months Ended March 31,
	2019			2018
Beginning balance	$	249,382		$	211,793
Sales of advances	(707		)	(439		)
Collections of advances, charge-offs and other, net	(23,439		)	(13,719		)
Net (increase) decrease in allowance for losses	124			(515		)
Ending balance	$	225,360		$	197,120

Schedule of Change in Allowance for Losses



Allowance for Losses	Three Months Ended March 31,
	2019			2018
Beginning balance	$	23,259		$	16,465
Provision	1,762			2,524
Net charge-offs and other	(1,886		)	(2,009		)
Ending balance	$	23,135		$	16,980

Match Funded Advances (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Match Funded Assets



	March 31, 2019		December 31, 2018
Principal and interest	$	374,820	$	412,897
Taxes and insurance	345,589		374,853
Foreclosures, bankruptcy, real estate and other	148,311		149,544
	$	868,720	$	937,294

Schedule of Activity In Match Funded Assets

The following table summarizes the activity in match funded assets:



	Three Months Ended March 31,
	2019			2018
	Advances			Advances			Automotive Dealer Financing Notes
Beginning balance	$	937,294		$	1,144,600		$	32,757
Transfer to Other assets	—			—			(36,896		)
New advances (collections), net	(68,574		)	(59,843		)	1,504
Decrease in allowance for losses (1)	—			—			2,635
Ending balance	$	868,720		$	1,084,757		$	—


(1)	The remaining allowance was charged off in connection with the exit from the automotive capital services business. In January 2018, we terminated the automotive dealer loan financing facility.

Mortgage Servicing (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Activity Related to MSRs - Amortization Method



Mortgage Servicing Rights – Amortization Method	Three Months Ended March 31,
Mortgage Servicing Rights – Amortization Method	2019		2018
Beginning balance	$	—	$	336,882
Fair value election - transfer of MSRs carried at fair value (1)	—		(361,670		)
Decrease in impairment valuation allowance (1) (2)	—		24,788
Ending balance	$	—	$	—

(1)


(2)	Impairment valuation allowance balance of $24.8 million was reclassified to reduce the carrying value of the related MSRs on January 1, 2018 in connection with our fair value election.

Schedule of Activity Related to MSRs - Fair Value Measurement Method



Mortgage Servicing Rights – Fair Value Measurement Method	Three Months Ended March 31,
Mortgage Servicing Rights – Fair Value Measurement Method	2019									2018
	Agency			Non-Agency			Total			Agency			Non-Agency			Total
Beginning balance	$	865,587		$	591,562		$	1,457,149		$	11,960		$	660,002		$	671,962
Fair value election - transfer from MSRs carried at amortized cost	—			—			—			336,882			—			336,882
Cumulative effect of fair value election	—			—			—			82,043			—			82,043
Sales and other transfers	(435		)	(132		)	(567		)	—			(131		)	(131		)
Additions:
Recognized on the sale of residential mortgage loans	1,510			—			1,510			2,378			—			2,378
Purchase of MSRs	54,410			—			54,410			—			—			—
Servicing transfers and adjustments	—			(3,313		)	(3,313		)	(1		)	(1,757		)	(1,758		)
Changes in fair value (1):
Changes in valuation inputs or other assumptions	(64,117		)	(156		)	(64,273		)	20,460			—			20,460
Realization of expected future cash flows and other changes	(31,263		)	(13,462		)	(44,725		)	(15,501		)	(22,088		)	(37,589		)
Ending balance	$	825,692		$	574,499		$	1,400,191		$	438,221		$	636,026		$	1,074,247


(1)	Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.

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



UPB at March 31, 2019
Servicing	$	75,288,090
Subservicing	49,805,407
NRZ	125,987,243
	$	251,080,740
UPB at December 31, 2018
Servicing	$	72,378,693
Subservicing	53,104,560
NRZ	130,517,237
	$	256,000,490
UPB at March 31, 2018
Servicing	$	73,264,640
Subservicing	1,792,880
NRZ	98,331,356
	$	173,388,876

Schedule of Components of Servicing and Subservicing Fees



Servicing Revenue	Three Months Ended March 31,
Servicing Revenue	2019		2018
Loan servicing and subservicing fees
Servicing	$	52,429	$	58,995
Subservicing	6,207		914
NRZ	155,847		127,017
	214,483		186,926
Late charges	15,439		14,589
Custodial accounts (float earnings)	11,934		7,263
Loan collection fees	4,349		5,018
Home Affordable Modification Program (HAMP) fees (1)	1,777		4,104
Other, net	7,881		4,238
	$	255,863	$	222,138


(1)	The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification.

Rights to MSRs (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements



Balance Sheets	March 31, 2019			December 31, 2018
MSRs, at fair value	$	831,284		$	894,002
Due from NRZ
Sales and transfers of MSRs (1)	23,430			23,757
Advance funding, subservicing fees and reimbursable expenses	9,238			30,845
Due to NRZ	55,907			53,001
Financing liability - MSRs pledged, at fair value
Original Rights to MSRs Agreements	424,086			436,511
2017 Agreements and New RMSR Agreements (2)	119,932			138,854
PHH MSR Agreements	407,198			457,491
Financing liability - MSRs pledged, at fair value	$	951,216		$	1,032,856

	Three Months Ended March 31,
	2019			2018
Statements of Operations
Servicing fees collected on behalf of NRZ	$	155,847		$	127,017
Less: Subservicing fee retained by Ocwen	37,407			34,217
Net servicing fees remitted to NRZ	118,440			92,800

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements	121			116
2017 Agreements and New RMSR Agreements	(6,980		)	16,596
PHH MSR Agreements	33,096			—
	26,237			16,712
Runoff and settlement:
Original Rights to MSRs Agreements	9,035			18,852
2017 Agreements and New RMSR Agreements	23,320			35,695
PHH MSR Agreements	17,774			—
	50,129			54,547

Other	(1,882		)	(1,509		)

Interest expense	$	43,956		$	23,050


(1)	Balance represents the holdback of proceeds from PHH MSR sales and transfers to address indemnification claims and mortgage loan document deficiencies. These sales were executed by PHH prior to the acquisition date.


(2)	$105.8 million and $33.0 million is expected to be recognized as a reduction in the financing liability and interest expense for the years ended December 31, 2019 and 2020, respectively.

Schedule of Activity Related to Rights to Mortgage Servicing Rights



Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			PHH MSR Agreements			Total
Balance at December 31, 2018	$	436,511		$	138,854		$	457,491		$	1,032,856
Additions	—			—			577			577
Changes in fair value:
Original Rights to MSRs Agreements	(121		)	—			—			(121		)
2017 Agreements and New RMSR Agreements	—			6,980			—			6,980
PHH MSR Agreements	—			—			(33,096		)	(33,096		)
Runoff and settlement:
Original Rights to MSRs Agreements	(9,035		)	—			—			(9,035		)
2017 Agreements and New RMSR Agreements	—			(23,320		)	—			(23,320		)
PHH MSR Agreements	—			—			(17,774		)	(17,774		)
Calls (1):
Original Rights to MSRs Agreements	(3,269		)	—			—			(3,269		)
2017 Agreements and New RMSR Agreements	—			(2,582		)	—			(2,582		)
Balance at March 31, 2019	$	424,086		$	119,932		$	407,198		$	951,216



Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			Total
Balance at December 31, 2017	$	499,042		$	9,249		$	508,291
Receipt of lump-sum cash payments	—			279,586			279,586
Changes in fair value:
Original Rights to MSRs Agreements	(116		)	—			(116		)
2017 Agreements and New RMSR Agreements	—			(16,596		)	(16,596		)
Runoff and settlement:
Original Rights to MSRs Agreements	(18,852		)	—			(18,852		)
2017 Agreements and New RMSR Agreements	—			(35,695		)	(35,695		)
Calls (1):
Original Rights to MSRs Agreements	(420		)	—			(420		)
2017 Agreements and New RMSR Agreements	—			(274		)	(274		)
Balance at March 31, 2018	$	479,654		$	236,270		$	715,924


(1)	Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements. Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization.

Receivables (Tables)

3 Months Ended

Mar. 31, 2019

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

Schedule of Receivables



	March 31, 2019			December 31, 2018
Servicing-related receivables:
Government-insured loan claims, net	$	99,918		$	105,258
Due from NRZ:
Sales and transfers of MSRs	23,430			23,757
Advance funding, subservicing fees and reimbursable expenses	9,238			30,845
Due from custodial accounts	17,780			9,060
Reimbursable expenses	11,992			11,508
Other	7,304			7,754
	169,662			188,182
Income taxes receivable	39,382			45,987
Other receivables	40,401			17,672
	249,445			251,841
Allowance for losses	(52,402		)	(53,579		)
	$	197,043		$	198,262

Government Insured Loans Claims [Member]

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

Schedule of Changes in Allowance For Losses



Allowance for Losses - Government-Insured Loan Claims	Three Months Ended March 31,
Allowance for Losses - Government-Insured Loan Claims	2019			2018
Beginning balance	$	52,497		$	53,340
Provision	7,247			10,376
Charge-offs and other, net	(8,464		)	(6,123		)
Ending balance	$	51,280		$	57,593

Other Assets (Tables)

3 Months Ended

Mar. 31, 2019

Other Assets [Line Items]

Schedule of Other Assets



	March 31, 2019		December 31, 2018
Contingent loan repurchase asset	$	399,202	$	302,581
Prepaid expenses	25,668		27,647
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,193		15,173
Real estate	7,256		7,368
Deferred tax asset, net	5,858		5,289
Prepaid lender fees, net (1)	5,496		6,589
Derivatives, at fair value	4,341		4,552
Security deposits	2,257		2,278
Mortgage backed securities, at fair value	1,786		1,502
Interest-earning time deposits	1,373		1,338
Other	5,742		5,250
	$	474,172	$	379,567


(1)	We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.

Borrowings (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Match Funded Liabilities



Match Funded Liabilities					March 31, 2019				December 31, 2018
Borrowing Type	Maturity (1)	Amorti- zation Date (1)	Available Borrowing Capacity (2)		Weighted Average Interest Rate (3)		Balance		Weighted Average Interest Rate (3)		Balance
Advance Financing Facilities:
Advance Receivables Backed Notes - Series 2015-VF5 (4)	Dec. 2049	Dec. 2019	110,794		4.12		$	114,206	4.06		$	216,559
Advance Receivables Backed Notes - Series 2016-T2 (5)	Aug. 2049	Aug. 2019	—		2.99		235,000		2.99		235,000
Advance Receivables Backed Notes, Series 2018-T1 (5)	Aug. 2049	Aug. 2019	—		3.50		150,000		3.50		150,000
Advance Receivables Backed Notes, Series 2018-T2 (5)	Aug. 2050	Aug. 2020	—		3.81		150,000		3.81		150,000
Total Ocwen Master Advance Receivables Trust (OMART)			110,794		3.50		649,206		3.56		751,559
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (6)	Jun. 2049	Jun. 2019	64,822		5.10		178		5.03		26,725
Total Servicing Advance Financing Facilities			175,616		3.50	%	649,384		3.61	%	778,284

			$	175,616	3.50	%	$	649,384	3.61	%	$	778,284

(1)


(2)	Borrowing capacity under the OMART and OFAF facilities is available to us provided that we have eligible collateral to pledge according to their respective criteria. At March 31, 2019, $66.1 million of the available borrowing capacity of our advance financing notes could be used based on the amount of eligible collateral that had been pledged.


(3)	1ML was 2.49% and 2.50% at March 31, 2019 and December 31, 2018, respectively.


(4)	The total borrowing capacity of the Series 2015-VF5 variable notes is $225.0 million, with interest computed based on the lender’s cost of funds plus a margin of 105 to 250 bps.

(5)


(6)	The borrowing capacity is $65.0 million with interest computed based on the lender’s cost of funds plus a margin of 180 to 450 bps. There is a ceiling of 300 bps for 3ML in determining the interest rate for these variable rate notes.

Schedule of Financing Liabilities



Financing Liabilities				Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Maturity	March 31, 2019		December 31, 2018
HMBS-Related Borrowings, at fair value (1)	Loans held for investment	1ML + 260 bps	(1)	$	5,614,688	$	5,380,448
Other Financing Liabilities
MSRs pledged, at fair value:
Original Rights to MSRs Agreements	MSRs	(2)	(2)	424,086		436,511
2017 Agreements and New RMSR Agreements	MSRs	(3)	(3)	119,932		138,854
PHH MSR Agreements	MSRs	(4)	(4)	407,198		457,491
				951,216		1,032,856
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (4)	MSRs	(5)	Feb. 2028	63,835		65,523
Financing liability - Owed to securitization investors, at fair value:
IndyMac Mortgage Loan Trust (INDX 2004-AR11) (5)	Loans held for investment	(6)	(6)	10,923		11,012
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (5)	Loans held for investment	(6)	(6)	13,639		13,803
				24,562		24,815
Advances pledged (6)	Advances on loans	(7)	(7)	4,085		4,419
				1,043,698		1,127,613

				$	6,658,386	$	6,508,061


(1)	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.


(2)	This financing liability has no contractual maturity or repayment schedule. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows underlying the related MSRs.

(3)

(4)

(5)

(6)


(7)	Certain sales of advances did not qualify for sales accounting treatment and were accounted for as a financing. This financing liability has no contractual maturity. The effective interest rate is based on 1ML plus a margin of 450 bps.

Schedule of Other Secured Borrowings



Other Secured Borrowings						Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Termination / Maturity	Available Borrowing Capacity (1)		March 31, 2019			December 31, 2018
SSTL (2)	(2)	1-Month Euro-dollar rate + 500 bps with a Eurodollar floor of 100 bps (2)	Dec. 2020	$	—	$	345,143		$	231,500
Mortgage loan warehouse facilities
Repurchase agreement (3)	Loans held for sale (LHFS)	1ML + 195 - 300 bps	Sep. 2019	59,468		40,532			74,693
Participation agreement (4)	LHFS	N/A	Jul. 2019	—		5,637			42,331
Mortgage warehouse agreement (5)	LHFS (reverse mortgages)	1ML + 275 bps; 1ML floor of 350 bps	Aug. 2019	—		12,466			8,009
Master repurchase agreement (6)	LHFS (forward and reverse mortgages)	1ML + 225 bps forward; 1ML + 275 bps reverse	Dec. 2019	170,060		29,940			30,680
Master repurchase agreement (7)	LHFS (reverse mortgages)	Prime + 0.0% (4.0% floor)	Jan. 2020	—		733			—
Master repurchase agreement (8)	N/A	1ML + 170bps	N/A	—		—			—
Participation agreement (9)	LHFS	N/A	Feb. 2020	—		8,731			—
				229,528		98,039			155,713

				$	229,528	443,182			387,213
Unamortized debt issuance costs - SSTL						(4,074		)	(3,098		)
Discount - SSTL						(2,126		)	(1,577		)
						$	436,982		$	382,538

Weighted average interest rate						5.90		%	5.49		%


(1)	Available borrowing capacity for our mortgage loan warehouse facilities does not consider the amount of the facility that the lender has extended on an uncommitted basis. Of the borrowing capacity extended on a committed basis, $89.0 million could be used at March 31, 2019 based on the amount of eligible collateral that could be pledged.

(2)


(3)	The maximum borrowing under this agreement is $175.0 million, of which $100.0 million is available on a committed basis and the remainder is available at the discretion of the lender.

(4)


(5)	Under this participation agreement, the lender provides financing for $100.0 million on an uncommitted basis. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.


(6)	The maximum borrowing under this agreement is $250.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. The agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.


(7)	Under this agreement, the lender provides financing for up to $50.0 million on an uncommitted basis. On January 23, 2019, we renewed this facility through January 22, 2020.


(8)	This agreement was originally entered into by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. The lender provides financing for up to $200.0 million at the discretion of the lender. The agreement has no stated maturity date.

(9)

Schedule of Senior Notes



Senior Notes	Interest Rate	Maturity	Outstanding Balance
Senior Notes	Interest Rate	Maturity	March 31, 2019			December 31, 2018
Senior unsecured notes (1)
PHH	7.375%	Sep. 2019	$	97,521		$	97,521
PHH	6.375%	Aug. 2021	21,543			21,543
			119,064			119,064
Senior secured notes	8.375%	Nov. 2022	330,878			330,878
			449,942			449,942
Unamortized debt issuance costs			(1,959		)	(2,075		)
Fair value adjustments (1)			160			860
			$	448,143		$	448,727

(1)

Schedule of Redemption Prices

The redemption prices during the twelve-month periods beginning on November 15^th of each year are as follows:



Year		Redemption Price
2018		106.281%
2019		104.188%
2020		102.094%
2021 and thereafter		100.000%

Schedule of Assets Held as Collateral Related to Secured Borrowings



			Collateral for Secured Borrowings
	Total Assets		Match Funded Liabilities		Financing Liabilities		Mortgage Loan Warehouse Facilities		Sales and Other Commitments (1)		Other (2)
Cash	$	263,188	$	—	$	—	$	—	$	—	$	263,188
Restricted cash	63,379		16,499		—		5,588		41,292		—
Mortgage servicing rights	1,400,191		—		913,465		—		9,210		477,516
Advances, net	225,360		—		8,569		—		32,057		184,734
Match funded advances	868,720		868,720		—		—		—		—
Loans held for sale	222,687		—		—		64,223		—		158,464
Loans held for investment	5,753,154		—		5,640,925		30,875		—		81,354
Receivables, net	197,043		—		—		—		—		197,043
Premises and equipment, net	69,316		—		—		—		—		69,316
Other assets	474,172		—		—		—		416,652		57,520
Total assets	$	9,537,210	$	885,219	$	6,562,959	$	100,686	$	499,211	$	1,489,135


(1)	Sales and Other Commitments include MSRs and related advances committed under sale agreements, Restricted cash and deposits held as collateral to support certain contractual obligations, and Contingent loan repurchase assets related to the Ginnie Mae early buyout program for which a corresponding liability is recognized in Other liabilities.

(2)

Other Liabilities Disclosure [Abstract]

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Other Liabilities



	March 31, 2019		December 31, 2018
Contingent loan repurchase liability	$	399,202	$	302,581
Other accrued expenses	81,393		99,739
Lease liability	60,057		—
Due to NRZ - Advance collections and servicing fees	55,907		53,001
Accrued legal fees and settlements	52,916		62,763
Liability for indemnification obligations	48,668		51,574
Servicing-related obligations	39,041		41,922
Checks held for escheat	22,299		20,686
Accrued interest payable	13,172		7,209
Liability for uncertain tax positions	12,492		13,739
Liability for unfunded pension obligation	12,452		12,683
Liability for mortgage insurance contingency	6,820		6,820
Derivatives, at fair value	4,209		4,986
Deferred revenue	2,699		4,441
Other	21,394		21,492
	$	832,721	$	703,636

Schedule of Accrued Legal Fees and Settlements



Accrued Legal Fees and Settlements	Three Months Ended March 31,
Accrued Legal Fees and Settlements	2019			2018
Beginning balance	$	62,763		$	51,057
Net accrual (reversal of accrual) for probable losses (1)	(631		)	7,452
Payments (2)	(9,407		)	(6,036		)
Issuance of common stock in settlement of litigation (3)	—			(5,719		)
Net increase (decrease) in accrued legal fees	191			(299		)
Other	—			(150		)
Ending balance	$	52,916		$	46,305


(1)	Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the unaudited consolidated statements of operations.


(2)	Includes cash payments made in connection with resolved legal and regulatory matters.


(3)	In January 2018, Ocwen issued 1,875,000 shares of common stock in connection with a securities litigation settlement.

Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Activity



				Interest Rate Risk
				IRLCs and Loans Held for Sale			Borrowings
	IRLCs			Forward MBS Trades			Interest Rate Caps
Notional balance at March 31, 2019	$	117,770		$	105,500		$	193,750

Maturity	April 2019 - June 2019			April 2019			May 2019 to May 2020

Fair value of derivative assets (liabilities) (1) at:
March 31, 2019	$	3,982		$	(4,126	)	$	276
December 31, 2018	3,871			(4,983		)	678

Gains (losses) on derivatives during the three months ended:	Gain on loans held for sale, net						Other, Net
March 31, 2019	$	(341	)	$	(2,270	)	$	(402	)
March 31, 2018	1,377			2,398			193


(1)	Derivatives are reported at fair value in Other assets or in Other liabilities on our unaudited consolidated balance sheets.

Interest Expense (Tables)

3 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Schedule of Components of Interest Expense



	Three Months Ended March 31,
	2019		2018
Financing liabilities
NRZ	$	43,956	$	23,050
Other financing liabilities	1,069		1,194
	45,025		24,244
Senior notes	8,512		7,452
Other secured borrowings	7,878		8,188
Match funded liabilities	7,652		9,549
Other	1,378		1,377
	$	70,445	$	50,810

Basic and Diluted Earnings (Loss) per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Reconciliation of Calculation of Basic Loss per Share to Diluted Loss per Share



	Three Months Ended March 31,
	2019			2018
Basic income (loss) per share
Net income (loss) attributable to Ocwen stockholders	$	(44,494	)	$	2,548

Weighted average shares of common stock	133,918,986			133,121,465

Basic income (loss) per share	$	(0.33	)	$	0.02

Diluted loss per share
Net income (loss) attributable to Ocwen stockholders	$	(44,494	)	$	2,548

Weighted average shares of common stock	133,918,986			133,121,465
Effect of dilutive elements
Stock option awards	—			—
Common stock awards	—			1,485,464
Dilutive weighted average shares of common stock	133,918,986			134,606,929

Diluted income (loss) per share	$	(0.33	)	$	0.02

Stock options and common stock awards excluded from the computation of diluted earnings per share
Anti-dilutive (1)	3,226,255			6,503,348
Market-based (2)	381,877			817,446


(1)	Includes stock options that are anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock, and stock awards that are anti-dilutive based on the application of the treasury stock method.


(2)	Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.

Business Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information

Financial information for our segments is as follows:



	Three Months Ended March 31, 2019
Results of Operations	Servicing			Lending			Corporate Items and Other			Corporate Eliminations		Business Segments Consolidated
Revenue	$	259,274		$	41,091		$	3,523		$	—	$	303,888

Expenses (1) (2)	265,898			21,331			(7,124		)	—		280,105

Other income (expense):
Interest income	2,294			1,549			715			—		4,558
Interest expense	(54,698		)	(1,668		)	(14,079		)	—		(70,445		)
Bargain purchase gain	—			—			(285		)	—		(285		)
Other	1,525			219			(439		)	—		1,305
Other income (expense), net	(50,879		)	100			(14,088		)	—		(64,867		)

Income (loss) before income taxes	$	(57,503	)	$	19,860		$	(3,441	)	$	—	$	(41,084	)



	Three Months Ended March 31, 2018
Results of Operations	Servicing			Lending			Corporate Items and Other			Corporate Eliminations		Business Segments Consolidated
Revenue	$	226,096		$	29,195		$	4,966		$	—	$	260,257

Expenses (1)	171,095			20,296			15,110			—		206,501

Other income (expense):
Interest income	429			1,492			779			—		2,700
Interest expense	(34,517		)	(1,946		)	(14,347		)	—		(50,810		)
Other	(429		)	325			(577		)	—		(681		)
Other expense, net	(34,517		)	(129		)	(14,145		)	—		(48,791		)

Income (loss) before income taxes	$	20,484		$	8,770		$	(24,289	)	$	—	$	4,965



Total Assets	Servicing		Lending		Corporate Items and Other		Corporate Eliminations		Business Segments Consolidated
March 31, 2019	$	3,221,779	$	5,848,830	$	466,601	$	—	$	9,537,210

December 31, 2018	$	3,306,208	$	5,603,481	$	484,527	$	—	$	9,394,216

March 31, 2018	$	2,938,827	$	5,131,232	$	393,259	$	—	$	8,463,318



Depreciation and Amortization Expense	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
Three months ended March 31, 2019
Depreciation expense	$	806	$	36	$	7,709	$	8,551
Amortization of debt discount	—		—		351		351
Amortization of debt issuance costs	—		—		700		700

Three months ended March 31, 2018
Depreciation expense	$	1,358	$	29	$	5,140	$	6,527
Amortization of debt discount	—		—		264		264
Amortization of debt issuance costs	—		—		656		656

(1)


(2)	In the Corporate Items and Other segment for the three months ended March 31, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million of amounts previously recognized as expense.

Depreciation and Amortization [Member]

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information



Depreciation and Amortization Expense	Servicing		Lending		Corporate Items and Other		Business Segments Consolidated
Three months ended March 31, 2019
Depreciation expense	$	806	$	36	$	7,709	$	8,551
Amortization of debt discount	—		—		351		351
Amortization of debt issuance costs	—		—		700		700

Three months ended March 31, 2018
Depreciation expense	$	1,358	$	29	$	5,140	$	6,527
Amortization of debt discount	—		—		264		264
Amortization of debt issuance costs	—		—		656		656

Commitments (Tables)

3 Months Ended

Mar. 31, 2019

Other Commitments [Abstract]

Schedule of Activity Related to HMBS Repurchases

Activity with regard to HMBS repurchases, including MCA repurchases, follows:



	Three Months Ended March 31, 2019
	Active					Inactive					Total
	Number		Amount			Number		Amount			Number		Amount
Beginning balance	10		$	2,047		252		$	14,833		262		$	16,880
Additions (1)	2		1,245			48		5,066			50		6,311
Recoveries, net (2)	(5	)	(914		)	(1	)	(1,411		)	(6	)	(2,325		)
Transfers	(1	)	(377		)	1		377			—		—
Changes in value	—		—			—		(513		)	—		(513		)
Ending balance	6		$	2,001		300		$	18,352		306		$	20,353


(1)	Total repurchases during the three months ended March 31, 2019 includes 25 loans totaling $5.8 million related to MCA repurchases.


(2)	Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable.

Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Loss Contingency [Abstract]

Schedule of Indemnification Obligations



	Three Months Ended March 31,
	2019			2018
Beginning balance	$	49,267		$	19,229
Provision for (reversal of) representation and warranty obligations	(2,155		)	57
New production reserves	75			104
Charge-offs and other (1)	(573		)	(1,844		)
Ending balance	$	46,614		$	17,546


(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.

Organization, Business Environment and Basis of Presentation - Narrative (Details) $ in Thousands		3 Months Ended
	Mar. 18, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($) Employee loan	Mar. 31, 2018 USD ($)	Oct. 04, 2018 USD ($)
Description of Business and Basis of Presentation [Line Items]
Total number of employees \| Employee			7,000
Percentage of foreign based employees engaged in supporting loan servicing operations			80.00%
Number of loans transferred to new mortgage servicing platform \| loan			470,000
Targeted servicing portfolio			$ 260,000,000
Unpaid principal balance on servicing assets acquired			4,900,000		$ 42,300,000
Unpaid principal balance of servicing assets expected to acquire			25,500,000
Proceeds from additional borrowings on SSTL	$ 120,000
Proceeds from issuance of secured debt			119,100	$ 0
Current maturities of borrowings in next 12 months			$ 720,400
Debt instrument, term			364 days
Gain on sale of mortgage servicing rights, net			$ 369	958
Amortization of debt issuance costs			700	656
Repayment of SSTL borrowings			$ (6,358)	(4,188)
Estimated incremental borrowing rate			7.50%
Restricted cash			$ 41,292	$ 9,278
Leased Facility [Member]
Description of Business and Basis of Presentation [Line Items]
Restricted cash			$ 23,200
INDIA
Description of Business and Basis of Presentation [Line Items]
Total number of employees \| Employee			4,000
PHILIPPINES
Description of Business and Basis of Presentation [Line Items]
Total number of employees \| Employee			500
Subsequent Event [Member]
Description of Business and Basis of Presentation [Line Items]
Proceeds from issuance of secured debt		$ 300,000

Organization, Business Environment and Basis of Presentation - Schedule of Right of Use Asset and Lease Liability (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Dec. 31, 2018

Cumulative effect of adopting ASU 2016-02

Lease liability

$ (60,057)

$ 0

Premises and Equipment [Member]

Right of use of assets, reclassification of existing balances

Right-of-use lease asset

44,793

^[1]

66,231

(21,438)

Other Assets [Member]

Right of use of assets, reclassification of existing balances

Prepaid expenses (rent)

^[2]

977

(977)

Other Liabilities [Member]

Liability for lease abandonments and deferred rent

^[2]

(5,498)

Lease liability

(65,270)

^[1]

(66,247)

Liability for lease abandonments and deferred rent, reclassification of existing balances

5,498

Lease liability, reclassification of existing balances

977

Liability for lease abandonments and deferred rent

^[2],[3]

$ (15,940)

Liability for lease abandonments

^[3]

$ 15,940

[1]	ROU assets as of January 1, 2019 after transition adjustments includes $30.4 million related to premises located in the U.S., $13.6 million related to premises located in India and the Philippines, and $0.7 million related to equipment.
[2]	Represents amounts related to leases impacted by the adoption of this ASU that were included in our December 31, 2018 consolidated balance sheet.
[3]	Represents lease impairments recognized by PHH prior to the acquisition.

Organization, Business Environment and Basis of Presentation - Schedule of Right of Use Asset and Lease Liability (Footnote) (Details) $ in Millions	Jan. 01, 2019 USD ($)
Equipment [Member]
Lessee, Lease, Description [Line Items]
Right-of-use lease asset	$ 0.7
UNITED STATES
Lessee, Lease, Description [Line Items]
Right-of-use lease asset	30.4
INDIA
Lessee, Lease, Description [Line Items]
Right-of-use lease asset	$ 13.6

Organization, Business Environment and Basis of Presentation - Schedule of Maturity Analysis of our Lease Liability (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 17,914
2021	16,227
2022	15,467
2023	11,431
2024	2,400
Thereafter	1,235
Operating lease liability	64,674
Less: Adjustment to present value	(4,617)
Total minimum lease payments, net	$ 60,057

Business Acquisitions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
State net operating loss carryforwards			$ 50,300
State tax credits			9,200
Mortgage servicing rights, at fair value	$ 1,400,191	$ 1,074,247	1,457,149	$ 671,962
Bargain purchase gain	(285)	0
Revenue	303,888	260,257
Servicing and subservicing fees	255,863	222,138
MSR valuation adjustments, net	108,998	17,129
Income tax expense	3,410	2,348
PHH Corporation [Member]
Business Acquisition [Line Items]
Federal net operating loss carryforwards			30,200
State net operating loss carryforwards			50,300
State tax credits			9,200
Bargain purchase gain	$ 63,751
Acquisition related costs		$ 3,700
Useful life		3 years
Fair Value Adjustments In Connection With Acquisition [Member] \| PHH Corporation [Member]
Business Acquisition [Line Items]
Mortgage servicing rights, at fair value		$ 5,700
Interest expense		2,300
Financing Liability - MSRs Pledged [Member] \| Fair Value Adjustments In Connection With Acquisition [Member] \| PHH Corporation [Member]
Business Acquisition [Line Items]
Interest expense		2,600
Mortgage Servicing Rights Sold Accounted For As Secured Borrowings [Member] \| PHH Corporation [Member]
Business Acquisition [Line Items]
Revenue		33,900
Servicing and subservicing fees		44,800
MSR valuation adjustments, net		12,400
Base Erosion And Anti-Abuse Tax [Member] \| PHH Corporation [Member]
Business Acquisition [Line Items]
Income tax expense		$ 900
UNITED STATES
Business Acquisition [Line Items]
Net operating loss carryforwards			58,200
VIRGIN ISLANDS, US
Business Acquisition [Line Items]
Net operating loss carryforwards			$ 3,100

Business Acquisitions - Schedule of Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		3 Months Ended
	Oct. 04, 2018	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Bargain purchase gain		$ (285)	$ 0
PHH Corporation [Member]
Business Acquisition [Line Items]
Cash		423,088
Restricted cash		38,813
Mortgage servicing rights		518,127
Advances, net		96,163
Loans held for sale		42,682
Loans held for sale, adjustment		358
Receivables, net		46,838
Premises and equipment, net		15,203
Real estate owned		3,289
Other assets		6,293
Assets related to discontinued operations		2,017
Financing liabilities (MSRs pledged, at fair value)		(481,020)
Other secured borrowings, net		(27,594)
Senior notes, net (Senior unsecured notes)		(120,624)
Accrued legal fees and settlements		(9,960)
Other accrued expenses		(36,889)
Loan repurchase and indemnification liability		(27,736)
Unfunded pension liability		(9,815)
Other liabilities		(34,774)
Other liabilities, adjustment		643
Liabilities related to discontinued operations		(21,954)
Total identifiable net assets		422,147
Total identifiable net assets, adjustment		(285)
Total consideration paid to seller		(358,396)
Bargain purchase gain		63,751
Bargain purchase gain, adjustment		$ (285)
PHH Corporation [Member]
Business Acquisition [Line Items]
Cash	$ 423,088
Restricted cash	38,813
Mortgage servicing rights	518,127
Advances, net	96,163
Loans held for sale	42,324
Receivables, net	46,838
Premises and equipment, net	15,203
Real estate owned	3,289
Other assets	6,293
Assets related to discontinued operations	2,017
Financing liabilities (MSRs pledged, at fair value)	(481,020)
Other secured borrowings, net	(27,594)
Senior notes, net (Senior unsecured notes)	(120,624)
Accrued legal fees and settlements	(9,960)
Other accrued expenses	(36,889)
Loan repurchase and indemnification liability	(27,736)
Unfunded pension liability	(9,815)
Other liabilities	(34,131)
Liabilities related to discontinued operations	(21,954)
Total identifiable net assets	422,432
Total consideration paid to seller	(358,396)
Bargain purchase gain	$ 64,036

Business Acquisitions - Schedule of Pro Forma Results of Operations (Details) - PHH Corporation [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Business Acquisition [Line Items]
Revenues	$ 344,522
Net loss from continuing operations	$ (11,201)

Cost Reengineering Plan - Schedule of Expenses Incurred To-Date, Including an Estimate of Remaining and Total Plan Costs (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2019

USD ($)

$ 22,136

^[1]

42,864

^[2]

Employee-related [Member]

65,000

19,163

^[1]

20,837

^[2]

Facility-related [Member]

40,000

^[1]

7,000

^[2]

7,000

Other [Member]

2,973

^[1]

15,027

^[2]

$ 18,000

[1]	The above expenses were all incurred within the Corporate Items and Other segment. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the unaudited consolidated statements of operations.
[2]	We expect to incur the remaining plan costs within the year ending December 31, 2019.

Cost Reengineering Plan - Schedule of Aggregate Activity of Liability for Re-Engineering Plan Costs (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2019

USD ($)

$ 0

Charges

22,136

^[1]

(4,347)

Employee-related [Member]

17,789

Charges

19,163

^[1]

(2,600)

Facility-related [Member]

16,563

^[1]

Charges

2,973

^[1]

(1,747)

Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]

$ 1,226

[1]	The above expenses were all incurred within the Corporate Items and Other segment. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the unaudited consolidated statements of operations.

Securitizations and Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Average period to securitization	30 days
MSRs retained	$ 800	$ 2,400
Percentage of loan transferred through securitization 60 days or more past due	8.10%		8.30%
Loans held for investment, not pledged as collateral	$ 70,400		$ 68,400
Pledged advance remittance period	2 days
Mortgage servicing rights, at fair value	$ 1,400,191	$ 1,074,247	1,457,149	$ 671,962
Advances	225,360		$ 249,382
Residential Mortgage Backed Securitization Trusts [Member]
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Mortgage servicing rights, at fair value	200
Investment in residual securities of trusts	1,700
Advances	$ 1,200

Securitizations and Variable Interest Entities - Schedule of Cash Flows Related to Transfers Accounted for as Sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Transfers and Servicing [Abstract]
Proceeds received from securitizations	$ 242,960	$ 377,499
Servicing fees collected	15,918	10,348
Purchases of previously transferred assets, net of claims reimbursed	(904)	(2,170)
Cash flows received from and paid to securitization trusts	$ 257,974	$ 385,677

Securitizations and Variable Interest Entities - 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 ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

UPB of loans transferred

^[1]

$ 15,147,575

$ 15,600,971

Maximum exposure to loss

15,421,159

15,872,424

Mortgage Servicing Rights - Fair Value [Member]

Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]

Carrying value of assets

123,448

132,774

Advances And Match Funded Advances [Member]

Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]

Carrying value of assets

$ 150,136

$ 138,679

[1]	Represents UPB of loans we transferred for which we continue to act as servicer or subservicer. Our maximum exposure to loss from transferred loans cannot be estimated because we do not service all of the loans for which we have provided representations and warranties.

Securitizations and Variable Interest Entities Schedule of Carrying Value of Assets and Liabilities of Consolidated Mortgage-backed Securitization Trusts (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Loans held for investment, at fair value	$ 5,753,154	$ 5,498,719
Other financing liabilities	1,043,698	1,127,613
Residential Mortgage Backed Securitization Trusts [Member]
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Loans held for investment, at fair value	26,237	26,520
Other financing liabilities	$ 24,562	$ 24,815

Fair Value - Schedule of Fair Value Assets and Liabilities (Details) - USD ($)

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

Dec. 31, 2017

$ 153,140,000

^[1]

$ 176,525,000

$ 125,848,000

^[1]

$ 214,262,000

Financial liabilities:

649,384,000

778,284,000

^[2]

5,614,688,000

5,380,448,000

1,043,698,000

1,127,613,000

6,658,386,000

6,508,061,000

Total Other secured borrowings

436,982,000

382,538,000

448,143,000

448,727,000

Mortgage servicing rights

1,400,191,000

1,457,149,000

$ 1,074,247,000

$ 671,962,000

Carrying Value [Member]

Total Loans held for sale

222,687,000

242,622,000

5,753,154,000

5,498,719,000

6,658,386,000

6,508,061,000

Total Other secured borrowings

436,982,000

382,538,000

448,143,000

448,727,000

Fair Value [Member]

Total Loans held for sale

222,687,000

242,622,000

5,753,154,000

5,498,719,000

6,642,446,000

6,491,689,000

Total Other secured borrowings

442,749,000

383,162,000

Level 2 [Member] | Carrying Value [Member]

430,918,000

426,147,000

^[3]

153,140,000

176,525,000

Corporate bonds

446,000

450,000

Senior secured term loan

^[4],[5]

338,943,000

226,825,000

Derivative financial instruments assets (liabilities):

Senior unsecured notes

^[4],[5]

119,224,000

119,924,000

Senior secured notes

^[4],[5]

328,919,000

328,803,000

Interest rate lock commitments

^[3]

3,982,000

3,871,000

Level 2 [Member] | Fair Value [Member]

^[3]

153,140,000

176,525,000

Corporate bonds

446,000

450,000

Senior secured term loan

^[4],[5]

344,710,000

227,449,000

Derivative financial instruments assets (liabilities):

Senior unsecured notes

^[4],[5]

115,657,000

119,258,000

Senior secured notes

^[4],[5]

315,261,000

306,889,000

Interest rate lock commitments

^[3]

3,982,000

3,871,000

Level 3 [Member] | Carrying Value [Member]

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

^[6]

69,547,000

66,097,000

Advances (including match funded)

^[3]

5,726,917,000

5,472,199,000

^[4]

1,094,080,000

1,186,676,000

Mortgage-backed securities, at fair value

^[4]

197,043,000

198,262,000

^[3]

1,786,000

1,502,000

Financial liabilities:

^[4]

649,384,000

778,284,000

^[3]

5,614,688,000

5,380,448,000

Derivative financial instruments assets (liabilities):

^[4]

98,039,000

155,713,000

Interest rate caps

^[3]

276,000

678,000

Mortgage servicing rights

Level 3 [Member] | Fair Value [Member]

^[3]

1,400,191,000

1,457,149,000

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

^[6]

69,547,000

66,097,000

Advances (including match funded)

^[3]

5,726,917,000

5,472,199,000

^[4]

1,094,080,000

1,186,676,000

Mortgage-backed securities, at fair value

^[4]

197,043,000

198,262,000

^[3]

1,786,000

1,502,000

Financial liabilities:

^[4]

649,121,000

776,485,000

^[3]

5,614,688,000

5,380,448,000

Derivative financial instruments assets (liabilities):

^[4]

98,039,000

155,713,000

Interest rate caps

^[3]

276,000

678,000

Mortgage servicing rights

Level 1 [Member] | Carrying Value [Member]

^[3]

1,400,191,000

1,457,149,000

Derivative financial instruments assets (liabilities):

U.S. Treasury notes

^[3]

1,068,000

1,064,000

Forward mortgage-backed securities

^[3]

(4,126,000)

(4,983,000)

Level 1 [Member] | Fair Value [Member]

Derivative financial instruments assets (liabilities):

U.S. Treasury notes

^[3]

1,068,000

1,064,000

Forward mortgage-backed securities

^[3]

(4,126,000)

(4,983,000)

Loans Held for Investment Securitization Trusts [Member] | Level 3 [Member] | Carrying Value [Member]

Loans Held for Investment Securitization Trusts [Member] | Level 3 [Member] | Fair Value [Member]

^[3]

26,237,000

26,520,000

Financing Liability - MSRs Pledged [Member] | Level 3 [Member] | Carrying Value [Member]

^[3]

26,237,000

26,520,000

Financing Liability - MSRs Pledged [Member] | Level 3 [Member] | Fair Value [Member]

^[3]

951,216,000

1,032,856,000

Financing Liability Owed to Securitization Investors [Member] | Level 3 [Member] | Carrying Value [Member]

^[3]

951,216,000

1,032,856,000

Financing Liability Owed to Securitization Investors [Member] | Level 3 [Member] | Fair Value [Member]

^[3]

24,562,000

24,815,000

Other Financing Liabilities [Member] | Level 3 [Member] | Carrying Value [Member]

^[3]

24,562,000

24,815,000

Other Financing Liabilities [Member] | Level 3 [Member] | Fair Value [Member]

^[4]

67,920,000

69,942,000

Loans Held for Investment - Reverse Mortgages [Member]

^[4]

$ 51,980,000

$ 53,570,000

[1]	At March 31, 2019 and 2018, the balances include $(7.8) million and $3.8 million, respectively, of fair value adjustments.
[2]	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.
[3]	Measured at fair value on a recurring basis.
[4]	Disclosed, but not measured, at fair value.
[5]	The carrying values are net of unamortized debt issuance costs and discount. See Note 13 – Borrowings for additional information.
[6]	Measured at fair value on a non-recurring basis.

Fair Value - Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Total realized and unrealized gains and (losses):

Level 3 [Member] | Loans Held for Investment - Reverse Mortgages [Member]

$ 2,900

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

5,472,199

$ 4,715,831

Issuances

209,264

251,086

Sales

Transfers to loans held for sale, at fair value

(104,630)

(82,719)

(396)

(184)

Transfers to other assets

(119)

(104)

Transfers to receivables, net

(68)

(50)

Total realized and unrealized gains and (losses):

104,051

168,029

150,667

^[1]

104,291

Total realized and unrealized gains (losses) included in earnings

150,667

104,291

Level 3 [Member] | HMBS - Related Borrowings [Member]

5,726,917

4,988,151

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

(5,380,448)

(4,601,556)

Issuances

(210,563)

(222,825)

Sales

102,389

80,811

Total realized and unrealized gains and (losses):

(108,174)

(142,014)

(126,066)

^[1]

(94,623)

Total realized and unrealized gains (losses) included in earnings

(126,066)

(94,623)

Level 3 [Member] | Loans Held for Inv. - Restricted for Securitization Investors [Member]

(5,614,688)

(4,838,193)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

26,520

(283)

Total realized and unrealized gains and (losses):

(283)

Total realized and unrealized gains (losses) included in earnings

^[1]

Level 3 [Member] | Financing Liability Owed to Securitization Investors [Member]

26,237

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

(24,815)

253

Total realized and unrealized gains and (losses):

253

Total realized and unrealized gains (losses) included in earnings

^[1]

Level 3 [Member] | Mortgage-Backed Securities [Member]

(24,562)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

1,502

1,592

Total realized and unrealized gains and (losses):

284

^[1]

Total realized and unrealized gains (losses) included in earnings

284

Level 3 [Member] | Financing Liability - MSRs Pledged [Member]

1,786

1,679

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

(1,032,856)

(508,291)

(577)

(279,586)

50,129

54,547

Total realized and unrealized gains and (losses):

49,552

(225,039)

26,237

^[1]

16,712

Total realized and unrealized gains (losses) included in earnings

5,851

694

32,088

17,406

Level 3 [Member] | Derivatives [Member]

(951,216)

(715,924)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

678

2,056

(371)

Total realized and unrealized gains and (losses):

(371)

(402)

^[1]

181

Total realized and unrealized gains (losses) included in earnings

(402)

181

Level 3 [Member] | MSRs [Member]

276

1,866

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

1,457,149

671,962

55,920

2,378

Issuances

(1,758)

Sales

(567)

(131)

Transfers from MSRs carried at amortized cost, net of valuation allowance

(3,313)

418,925

Total realized and unrealized gains and (losses):

52,040

419,414

(108,998)

^[1]

(17,129)

Total realized and unrealized gains (losses) included in earnings

(108,998)

(17,129)

Movement In Loans Held For Sale At Fair Value [Roll Forward]

$ 1,400,191

$ 1,074,247

[1]	The Change in fair value adjustments on Loans held for investment for the three months ended March 31, 2019 include $2.9 million in connection with the fair value election for future draw commitments on HECM reverse mortgage loans purchased or originated after December 31, 2018.

Fair Value - Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities (Footnote) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Loans Held for Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value adjustments on loans held for investment	$ 2.9

Fair Value - Schedule of Estimated Change in Fair Value of MSRs (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Transfers and Servicing [Abstract]
Weighted average prepayment speeds, 10%	$ (127,188)
Weighted average prepayment speeds, 20%	(245,678)
Weighted average discount rate, 10%	(39,816)
Weighted average discount rate, 20%	$ (77,754)

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Originations and purchases

$ 176,525

$ 214,262

219,867

205,994

Proceeds from sales

(235,895)

(293,063)

Principal collections

(5,516)

(804)

396

184

Real estate owned (Other assets)

(581)

(696)

Gain on sale of loans

8,191

4,652

Decrease in fair value of loans

(228)

(3,871)

(8,923)

(1,506)

Movement In Loans Held For Sale At Fair Value [Roll Forward]

^[1]

$ 153,140

$ 125,848

[1]	At March 31, 2019 and 2018, the balances include $(7.8) million and $3.8 million, respectively, of fair value adjustments.

Loans Held for Sale - Schedule of Loans Held for Sale Fair Value (Footnote) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Receivables [Abstract]
Increase (decrease) in fair value of loans held for sale	$ (7.8)	$ 3.8

Loans Held for Sale - Schedule of Loans Held for Sale at Lower Cost or Fair Value, Activity (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

$ 66,097

$ 24,096

84,315

152,084

Proceeds from sales

(62,135)

(86,421)

Principal collections

(1,776)

(3,446)

Real estate owned (Other assets)

(27,411)

(35,666)

(1,095)

(1,195)

Gain on sale of loans

551

692

(Increase) decrease in valuation allowance

706

(1,185)

10,295

3,271

^[1]

$ 69,547

$ 52,230

[1]

Loans Held for Sale - Schedule of Loans Held for Sale at Lower Cost or Fair Value Activity (Footnote) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Mar. 31, 2018
Ginnie Mae Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans repurchase obligation	$ 42.7	$ 46.1

Loans Held for Sale - Schedule of Changes in Valuation Allowance (Details) - Valuation Allowance for Loans Held for Sale [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 11,569	$ 7,318
Provision	642	853
Transfer from Liability for indemnification obligations (Other liabilities)	67	719
Sales of loans	(1,415)	(409)
Other	0	22
Ending balance	$ 10,863	$ 8,503

Loans Held for Sale - Schedule of Gains on Loans Held for Sale, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	$ 20,423	$ 20,053
Change in fair value of IRLCs	(341)	1,377
Change in fair value of loans held for sale	(142)	(3,924)
Gain (loss) on economic hedge instruments	(2,270)	2,398
Other	(75)	(104)
Gain on loans held for sale, net	17,595	19,800
MSRs Retained on Transfers of Forward Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	828	2,378
Fair Value Gains Related to Transfers of Reverse Mortgage Loans, Net [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	6,483	10,968
Gain on Sale of Repurchased Ginnie Mae Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	538	692
Gain on Sale of Forward Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	10,444	5,767
Other, Net [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	$ 2,130	$ 248

Advances - Schedule of Advances Paid on Behalf of Borrowers or on Foreclosed Properties (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Advances On Behalf of Borrowers [Line Items]
Advances, gross	$ 248,495	$ 272,641
Allowance for losses	(23,135)	(23,259)	$ (23,259)	$ (16,980)	$ (16,465)
Advances, net	225,360	249,382
Principal and Interest [Member]
Advances On Behalf of Borrowers [Line Items]
Advances, gross	47,039	43,671
Taxes and Insurance [Member]
Advances On Behalf of Borrowers [Line Items]
Advances, gross	141,466	160,373
Foreclosures, Bankruptcy and Other [Member]
Advances On Behalf of Borrowers [Line Items]
Advances, gross	$ 59,990	$ 68,597

Advances - Schedule of Activity in Advances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Advances [Roll Forward]
Beginning balance	$ 249,382	$ 211,793
Sales of advances	(707)	(439)
Collections of advances, charge-offs and other, net	(23,439)	(13,719)
Net (increase) decrease in allowance for losses	124	(515)
Ending balance	$ 225,360	$ 197,120

Advances Schedule of Changes in Allowance for Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Advances [Abstract]
Beginning balance	$ 23,259	$ 16,465
Provision	1,762	2,524
Net charge-offs and other	(1,886)	(2,009)
Ending balance	$ 23,135	$ 16,980

Match Funded Advances - Schedule of Match Funded Advances on Residential Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Match Funded Assets [Line Items]
Match funded assets	$ 868,720	$ 937,294
Principal and Interest [Member]
Match Funded Assets [Line Items]
Match funded assets	374,820	412,897
Taxes and Insurance [Member]
Match Funded Assets [Line Items]
Match funded assets	345,589	374,853
Foreclosures Bankruptcy And Other [Member]
Match Funded Assets [Line Items]
Match funded assets	$ 148,311	$ 149,544

Match Funded Advances - Schedule of Activity in Match Funded Advances (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Match Funded Assets [Line Items]

Decrease in allowance for losses

$ 937,294

124

$ (515)

Residential Mortgage [Member]

868,720

Match Funded Assets [Line Items]

New advances (collections), net

937,294

1,144,600

(68,574)

(59,843)

Automotive Dealer Financing Notes [Member]

$ 868,720

1,084,757

Match Funded Assets [Line Items]

New advances (collections), net

32,757

Transfer to Other assets

(36,896)

1,504

Decrease in allowance for losses

^[1]

2,635

Servicing Asset at Amortized Cost, Balance [Roll Forward]

$ 0

[1]	The remaining allowance was charged off in connection with the exit from the automotive capital services business. In January 2018, we terminated the automotive dealer loan financing facility.

Mortgage Servicing - Schedule of Activity Related to MSRs - Amortization Method (Details) - Mortgage Servicing Rights - Amortized Costs [Member] - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Beginning balance, MSRs

$ 0

$ 336,882

Fair value election - transfer of MSRs carried at fair value

^[1]

(361,670)

Decrease in impairment valuation allowance

^[1],[2]

24,788

Ending balance, MSRs

$ 0

[1]

[2]

Impairment valuation allowance balance of $24.8 million was reclassified to reduce the carrying value of the related MSRs on January 1, 2018 in connection with our fair value election.

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Tax effect of adjustment on retained earnings

$ 82,043

$ 6,800

Mortgage Servicing Rights - Amortized Costs [Member]

Decrease in impairment valuation allowance

^[1],[2]

$ 0

24,788

Retained Earnings [Member]

Retained Earnings [Member] | Fair Value Agency Mortgage Servicing Rights [Member]

82,043

Servicing Asset at Fair Value, Amount [Roll Forward]

$ 82,043

[1]

[2]

Impairment valuation allowance balance of $24.8 million was reclassified to reduce the carrying value of the related MSRs on January 1, 2018 in connection with our fair value election.

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Fair value election - transfer of MSRs carried at amortized cost, net of valuation allowance

$ 1,457,149

$ 671,962

336,882

Sales and other transfers

82,043

(567)

(131)

Recognized on the sale of residential mortgage loans

1,510

2,378

Purchase of MSRs

54,410

Servicing transfers and adjustments

(3,313)

(1,758)

Changes in fair value:

Changes in valuation inputs or other assumptions

^[1]

(64,273)

20,460

Realization of expected future cash flows and other changes

^[1]

(44,725)

(37,589)

Fair Value Agency Mortgage Servicing Rights [Member]

1,400,191

1,074,247

Servicing Asset at Fair Value, Amount [Roll Forward]

Fair value election - transfer of MSRs carried at amortized cost, net of valuation allowance

865,587

11,960

336,882

Sales and other transfers

(435)

Recognized on the sale of residential mortgage loans

1,510

2,378

Purchase of MSRs

54,410

Servicing transfers and adjustments

(1)

Changes in fair value:

Changes in valuation inputs or other assumptions

^[1]

(64,117)

20,460

Realization of expected future cash flows and other changes

^[1]

(31,263)

(15,501)

Fair Value Non-Agency Mortgage Servicing Rights [Member]

825,692

438,221

Servicing Asset at Fair Value, Amount [Roll Forward]

Sales and other transfers

591,562

660,002

(132)

(131)

Recognized on the sale of residential mortgage loans

Purchase of MSRs

Servicing transfers and adjustments

(3,313)

(1,757)

Changes in fair value:

Changes in valuation inputs or other assumptions

^[1]

(156)

Realization of expected future cash flows and other changes

^[1]

(13,462)

(22,088)

$ 574,499

$ 636,026

[1]	Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.

Mortgage Servicing - Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Transfers and Servicing [Abstract]
Servicing	$ 75,288,090	$ 72,378,693	$ 73,264,640
Subservicing	49,805,407	53,104,560	1,792,880
NRZ	125,987,243	130,517,237	98,331,356
Assets serviced	$ 251,080,740	$ 256,000,490	$ 173,388,876

Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Servicing and Subservicing fees, total

Servicing

$ 52,429

$ 58,995

Subservicing

6,207

914

NRZ

155,847

127,017

214,483

186,926

Late charges

15,439

14,589

Custodial accounts (float earnings)

11,934

7,263

Loan collection fees

4,349

5,018

Home Affordable Modification Program (HAMP) fees

^[1]

1,777

4,104

Servicing Liabilities at Fair Value [Line Items]

7,881

4,238

Fees, total

$ 255,863

$ 222,138

[1]

The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification.

Mortgage Servicing - Narrative (Details) $ in Millions	3 Months Ended
Mortgage Servicing - Narrative (Details) $ in Millions	Mar. 31, 2019 USD ($) loan	Mar. 31, 2018 USD ($)
Transfers and Servicing [Abstract]
Portfolio of loans acquired \| loan	22,083
UPB of loans acquired	$ 4,900.0
Portfolio of loans sold \| loan	304
UPB of MSRs sold	$ 99.4
Servicing agreements with minimum servicer rating criteria \| loan	695
UPB of non-agency and whole loans servicing agreements with minimum servicer ratings	$ 25,100.0
Servicing agreements with termination rights triggered \| loan	170
UPB of non-agency and whole loans servicing agreements with termination rights triggered	$ 7,900.0
Percentage of non-agency and whole loans servicing agreements with termination rights triggered of servicing portfolio	8.00%
Float balances	$ 1,800.0	$ 1,600.0

Rights to MSRs - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended
	Oct. 04, 2018	Jan. 31, 2018	Sep. 30, 2017	Mar. 31, 2019	Mar. 31, 2018
Servicing Assets at Fair Value [Line Items]
Proceeds from sale of mortgage servicing rights accounted for as financing		$ 279,600	$ 54,600	$ 577	$ 279,586
Unpaid principal balance on servicing assets acquired	$ 42,300,000			$ 4,900,000
Unpaid principal balance on servicing assets and advances committed to sale	$ 3,200,000
Percentage of mortgage loans servicing that can be terminated	25.00%
NRZ [Member]
Servicing Assets at Fair Value [Line Items]
Percentage UPB of residential assets serviced				50.17798%
Percentage of loan servicing and subservicing fee revenue from client				72.6617%
UPB of rights to MSRs sold				$ 25,900,000

Rights to MSRs - Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

Dec. 31, 2017

$ 1,400,191

$ 1,074,247

$ 1,457,149

$ 671,962

Due from NRZ

9,238

30,845

Servicing Liabilities at Fair Value [Line Items]

1,043,698

1,127,613

NRZ [Member]

831,284

894,002

Due to NRZ

55,907

53,001

Servicing fees collected on behalf of NRZ

951,216

1,032,856

155,847

127,017

Less: Subservicing fee retained by Ocwen

37,407

34,217

Net servicing fees remitted to NRZ

118,440

92,800

26,237

16,712

50,129

54,547

(1,882)

(1,509)

Sale And Transfers Of Mortgage Servicing Rights [Member] | NRZ [Member]

43,956

23,050

Servicing Liabilities at Fair Value [Line Items]

Due from NRZ

^[1]

23,430

23,757

Advance Funding, Subservicing Fees And Reimbursable Expenses [Member] | NRZ [Member]

Servicing Liabilities at Fair Value [Line Items]

Due from NRZ

9,238

30,845

Original Rights to MSRs Agreements [Member]

Servicing Liabilities at Fair Value [Line Items]

Original Rights to MSRs Agreements [Member] | NRZ [Member]

424,086

479,654

436,511

$ 499,042

Servicing Liabilities at Fair Value [Line Items]

424,086

436,511

121

116

2017 Agreements and New RMSR Agreements [Member] | NRZ [Member]

9,035

18,852

Servicing Liabilities at Fair Value [Line Items]

^[2]

119,932

138,854

(6,980)

16,596

PHH MSR Agreements [Member]

23,320

35,695

Servicing Liabilities at Fair Value [Line Items]

407,198

457,491

33,096

PHH MSR Agreements [Member] | NRZ [Member]

17,774

$ 0

Servicing Liabilities at Fair Value [Line Items]

$ 407,198

$ 457,491

[1]	$105.8 million and $33.0 million is expected to be recognized as a reduction in the financing liability and interest expense for the years ended December 31, 2019 and 2020, respectively.
[2]	$105.8 million and $33.0 million is expected to be recognized as a reduction in the financing liability and interest expense for the years ended December 31, 2019 and 2020, respectively.

Rights to MSRs - Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements (Footnote) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Forecast [Member]
Servicing Liabilities at Fair Value [Line Items]
Reduction in the financing liability and interest expense	$ 33.0	$ 105.8

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

1 Months Ended

3 Months Ended

Jan. 31, 2018

Mar. 31, 2019

Mar. 31, 2018

Beginning balance, Financing Liability

$ 671,962

$ 1,457,149

$ 671,962

508,291

1,032,856

508,291

Additions, MSRs

54,410

Additions, Financing Liability

577

Receipt of lump-sum cash payments

279,600

279,586

^[1]

64,273

(20,460)

Ending balance, Financing Liability

1,400,191

1,074,247

951,216

715,924

Original Rights to MSRs Agreements [Member]

499,042

436,511

499,042

Changes in fair value, Financing Liability

(121)

(116)

(121)

(116)

Runoff, settlements and other, MSRs

(9,035)

(18,852)

Runoff, settlements and other, Financing Liability

(9,035)

(18,852)

Calls, MSRs

^[2]

(3,269)

(420)

Calls, Financing Liability

^[2]

(3,269)

(420)

2017 Agreements and New RMSR Agreements [Member]

424,086

479,654

Receipt of lump-sum cash payments

$ 9,249

138,854

9,249

279,586

Changes in fair value, Financing Liability

6,980

(16,596)

6,980

(16,596)

Runoff, settlements and other, MSRs

(23,320)

(35,695)

Runoff, settlements and other, Financing Liability

(23,320)

(35,695)

Calls, MSRs

^[2]

(2,582)

(274)

Calls, Financing Liability

^[2]

(2,582)

(274)

PHH MSR Agreements [Member]

119,932

$ 236,270

457,491

Additions, MSRs

577

Changes in fair value, Financing Liability

(33,096)

(33,096)

Runoff, settlements and other, MSRs

(17,774)

Runoff, settlements and other, Financing Liability

(17,774)

Contingent loan repurchase asset

$ 407,198

[1]	Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.
[2]	Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements. Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization.

Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Government-insured loan claims, net	$ 99,918	$ 105,258
Amount due from purchaser in connection with sales and transfers of MSRs	23,430	23,757
Due from custodial accounts	17,780	9,060
Reimbursable expenses	11,992	11,508
Due from NRZ - Advance funding, subservicing fees and reimbursable expenses	9,238	30,845
Other	7,304	7,754
Servicing receivable, total	169,662	188,182
Income taxes receivable	39,382	45,987
Other receivables	40,401	17,672
Other receivables, gross	249,445	251,841
Allowance for losses	(52,402)	(53,579)
Receivables, net	$ 197,043	$ 198,262

Receivables - Narrative (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Servicing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for financing notes	$ 51.3	$ 52.5

Receivables - Schedule of Changes in allowance of Government-Insured Loan Claims (Details) - Government Insured Loans Claims [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 52,497	$ 53,340
Provision	7,247	10,376
Charge-offs and other, net	(8,464)	(6,123)
Ending balance	$ 51,280	$ 57,593

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

Mar. 31, 2019

Dec. 31, 2018

Other Assets [Abstract]

$ 399,202

$ 302,581

Prepaid expenses

25,668

27,647

Prepaid representation, warranty and indemnification claims - Agency MSR sale

15,193

15,173

Real estate

7,256

7,368

Deferred tax asset, net

5,858

5,289

Prepaid lender fees, net

^[1]

5,496

6,589

Mortgage backed securities, at fair value

4,341

4,552

Security deposits

2,257

2,278

1,786

1,502

Interest-earning time deposits

1,373

1,338

5,742

5,250

$ 474,172

$ 379,567

[1]	We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt.

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

3 Months Ended

Mar. 31, 2019

Dec. 31, 2018

Aug. 15, 2018

$ 66,100

Advance Receivables Backed Notes, Series 2018-T1 [Member]

649,384

$ 778,284

Advance Financing Facilities [Member]

$ 150,000

^[1]

$ 175,616

^[2]

3.50%

3.61%

Match Funded Liabilties [Member]

$ 649,384

$ 778,284

^[1]

$ 175,616

^[2]

3.50%

3.61%

Total Ocwen Master Advance Receivables Trust (OMART) [Member]

$ 649,384

$ 778,284

^[1]

$ 110,794

^[2]

3.50%

3.56%

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes - Series 2015-VF5 [Member]

$ 649,206

$ 751,559

^[1],[3]

$ 110,794

^[2],[3]

4.12%

4.06%

^[3]

$ 114,206

$ 216,559

^[3],[4]

Dec. 31, 2049

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes - Series 2016-T2 [Member]

^[3],[4]

Dec. 31, 2019

^[1],[5]

$ 0

^[2],[5]

2.99%

^[5]

$ 235,000

^[4],[5]

Aug. 31, 2049

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes, Series 2018-T1 [Member]

^[4],[5]

Aug. 31, 2019

^[1],[5]

$ 0

^[2],[5]

3.50%

^[5]

$ 150,000

^[4],[5]

Aug. 31, 2049

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes, Series 2018-T2 [Member]

^[4],[5]

Aug. 31, 2019

^[1],[5]

$ 0

^[2],[5]

3.81%

^[5]

$ 150,000

^[4],[5]

Aug. 31, 2050

Total Ocwen Freddie Advance Funding Facility (OFAF) [Member] | Advance Receivables Backed Notes, Series 2015-VF1 [Member]

^[4],[5]

Aug. 31, 2020

^[1],[6]

$ 64,822

^[2],[6]

5.10%

5.03%

^[6]

$ 178

$ 26,725

^[4],[6]

Jun. 30, 2049

^[4],[6]

Jun. 30, 2019

[1]	Borrowing capacity under the OMART and OFAF facilities is available to us provided that we have eligible collateral to pledge according to their respective criteria. At March 31, 2019, $66.1 million of the available borrowing capacity of our advance financing notes could be used based on the amount of eligible collateral that had been pledged.
[2]	1ML was 2.49% and 2.50% at March 31, 2019 and December 31, 2018, respectively.
[3]	The total borrowing capacity of the Series 2015-VF5 variable notes is $225.0 million, with interest computed based on the lender’s cost of funds plus a margin of 105 to 250 bps.
[4]	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 all of our 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 the repayment of advances allocated to the note may not be used to fund new advances.
[5]	Under the terms of the agreement, we must continue to borrow the full amount of the Series 2016-T2, 2018-T1 and 2018-T2 fixed-rate term notes until the amortization date. If there is insufficient eligible collateral to support the level of borrowing, the excess cash proceeds in an amount necessary to make up the deficit are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the outstanding notes. The Series 2016-T2, 2018-T1 and 2018-T2 term notes have a total combined borrowing capacity of $535.0 million. Rates on the individual classes of notes range from 2.72% to 4.53%. On August 15, 2018, we issued two $150.0 million fixed-rate term notes (Series 2018 T-1 and Series 2018-T2) with amortization dates of August 15, 2019 and August 17, 2020, respectively.
[6]	The borrowing capacity is $65.0 million with interest computed based on the lender’s cost of funds plus a margin of 180 to 450 bps. There is a ceiling of 300 bps for 3ML in determining the interest rate for these variable rate notes.

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

3 Months Ended

12 Months Ended

Mar. 31, 2019

Dec. 31, 2018

Aug. 15, 2018

Available borrowing capacity that could be used based on amount of eligible collateral pledged

$ 66,100,000

Advance Receivables Backed Notes - Series 2015-VF5 [Member]

649,384,000

$ 778,284,000

Maximum borrowing capacity

$ 225,000,000

Advance Receivables Backed Notes - Series 2015-VF5 [Member] | Minimum [Member]

Advance Receivables Backed Notes - Series 2015-VF5 [Member] | Maximum [Member]

1.05%

Series 2016 and 2018 Term Notes [Member]

2.50%

Series 2016 and 2018 Term Notes [Member] | Minimum [Member]

Total borrowing capacity

$ 535,000,000.0

Series 2016 and 2018 Term Notes [Member] | Maximum [Member]

2.7215%

Advance Receivables Backed Notes, Series 2018-T1 [Member]

4.5319%

Advance Receivables Backed Notes, Series 2015-VF1 [Member]

$ 150,000,000

Maximum borrowing capacity

$ 65,000,000.0

Advance Receivables Backed Notes, Series 2015-VF1 [Member] | Minimum [Member]

Advance Receivables Backed Notes, Series 2015-VF1 [Member] | Maximum [Member]

1.80%

London Interbank Offered Rate (LIBOR) [Member]

4.50%

London Interbank Offered Rate (LIBOR) [Member] | Advance Receivables Backed Notes, Series 2015-VF1 [Member]

2.49%

2.50%

Ceiling percentage of 1ML in determining interest rate

3.00%

Total Ocwen Master Advance Receivables Trust (OMART) [Member]

Available borrowing capacity that could be used based on amount of eligible collateral pledged

^[1]

$ 110,794,000

^[2]

3.50%

3.56%

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes - Series 2015-VF5 [Member]

$ 649,206,000

$ 751,559,000

Available borrowing capacity that could be used based on amount of eligible collateral pledged

^[1],[3]

$ 110,794,000

^[2],[3]

4.12%

4.06%

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes, Series 2018-T1 [Member]

^[3]

$ 114,206,000

$ 216,559,000

Available borrowing capacity that could be used based on amount of eligible collateral pledged

^[1],[4]

$ 0

^[2],[4]

3.50%

Total Ocwen Master Advance Receivables Trust (OMART) [Member] | Advance Receivables Backed Notes, Series 2018-T2 [Member]

^[4]

$ 150,000,000

Available borrowing capacity that could be used based on amount of eligible collateral pledged

^[1],[4]

$ 0

^[2],[4]

3.81%

^[4]

$ 150,000,000

[1]	Borrowing capacity under the OMART and OFAF facilities is available to us provided that we have eligible collateral to pledge according to their respective criteria. At March 31, 2019, $66.1 million of the available borrowing capacity of our advance financing notes could be used based on the amount of eligible collateral that had been pledged.
[2]	1ML was 2.49% and 2.50% at March 31, 2019 and December 31, 2018, respectively.
[3]	The total borrowing capacity of the Series 2015-VF5 variable notes is $225.0 million, with interest computed based on the lender’s cost of funds plus a margin of 105 to 250 bps.
[4]	Under the terms of the agreement, we must continue to borrow the full amount of the Series 2016-T2, 2018-T1 and 2018-T2 fixed-rate term notes until the amortization date. If there is insufficient eligible collateral to support the level of borrowing, the excess cash proceeds in an amount necessary to make up the deficit are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the outstanding notes. The Series 2016-T2, 2018-T1 and 2018-T2 term notes have a total combined borrowing capacity of $535.0 million. Rates on the individual classes of notes range from 2.72% to 4.53%. On August 15, 2018, we issued two $150.0 million fixed-rate term notes (Series 2018 T-1 and Series 2018-T2) with amortization dates of August 15, 2019 and August 17, 2020, respectively.

Borrowings - Narrative (Details) $ in Millions	3 Months Ended
Borrowings - Narrative (Details) $ in Millions	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Covenant compliance, consolidated tangible net worth at period end	$ 275.0
NRZ [Member]
Debt Instrument [Line Items]
UPB of rights to MSRs sold	25,900.0
Outstanding servicing advances	$ 842.9
Senior Notes [Member] \| 8.375% Senior Secured Notes Due In 2022 [Member]
Debt Instrument [Line Items]
Percentage of principal amount, repurchase price	101.00%
Minimum [Member] \| Senior Notes [Member] \| 8.375% Senior Secured Notes Due In 2022 [Member]
Debt Instrument [Line Items]
Redemption period, notice	30 days
Maximum [Member] \| Senior Notes [Member] \| 8.375% Senior Secured Notes Due In 2022 [Member]
Debt Instrument [Line Items]
Redemption period, notice	60 days
Senior Secured Term Loan [Member]
Debt Instrument [Line Items]
Percentage of loan to value	40.00%

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

3 Months Ended

12 Months Ended

Mar. 31, 2019

Dec. 31, 2018

^[1]

$ 5,614,688

$ 5,380,448

1,043,698

1,127,613

Financing liability – MSRs pledged [Member]

6,658,386

6,508,061

Financing liability – MSRs pledged [Member] | Original Rights to MSRs Agreements [Member]

951,216

1,032,856

Financing liability – MSRs pledged [Member] | 2017 Agreements and New RMSR Agreements [Member]

^[2]

424,086

436,511

Financing liability – MSRs pledged [Member] | PHH MSR Agreements [Member]

^[3]

119,932

138,854

Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 [Member]

^[4]

$ 407,198

457,491

^[5]

Feb. 28, 2028

IndyMac Mortgage Loan Trust (INDX 2004-AR11) [Member]

^[5]

$ 63,835

65,523

Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) [Member]

^[6]

10,923

11,012

Financing Liability Owed to Securitization Investors [Member]

^[6]

13,639

13,803

Financing Liability – Advances Pledged [Member]

24,562

24,815

London Interbank Offered Rate (LIBOR) [Member]

^[7]

$ 4,085

$ 4,419

London Interbank Offered Rate (LIBOR) [Member] | HMBS - Related Borrowings [Member]

2.49%

2.50%

^[1]

2.60%

[1]	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.
[2]	This financing liability has no contractual maturity or repayment schedule. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows underlying the related MSRs.
[3]	This financing liability arose in connection with lump sum payments received upon transfer of legal title of the MSRs related to the Rights to MSRs transactions to NRZ in September 2017. In connection with the execution of the New RMSR Agreements in January 2018, we received a lump sum payment of $279.6 million as compensation for foregoing certain payments under the Original Rights to MSRs Agreements. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows. The expected maturity of the liability is April 30, 2020, the date through which we were scheduled to be the servicer on loans underlying the Rights to MSRs per the Original Rights to MSRs Agreements.
[4]	Represents a liability for sales of MSRs that are accounted for as a secured borrowing which we assumed in connection with the acquisition of PHH. Under this accounting treatment, the MSRs transferred to NRZ remain on the consolidated balance sheet and the proceeds from the sale are recognized as a secured liability. We elected to record the liability at fair value consistent with the related MSRs.
[5]	OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (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. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes.
[6]	Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our unaudited consolidated financial statements, as more fully described in Note 4 – Securitizations and Variable Interest Entities. The holders of these certificates have no recourse against the assets of Ocwen. The certificates in the INDX 2004-AR11 Trust pay interest based on variable rates which are generally based on weighted average net mortgage rates and which range between 3.68% and 4.26% at March 31, 2019. The certificates in the RAST 2003-A11 Trust pay interest based on fixed rates ranging between 4.25% and 5.75% and a variable rate based on 1ML plus 0.45%. The maturity of the certificates occurs upon maturity of the loans held by the trust. The remaining loans in the INDX 2004-AR11 Trust and RAST 2003-A11 Trust have maturity dates extending through November 2034 and October 2033, respectively.
[7]	Certain sales of advances did not qualify for sales accounting treatment and were accounted for as a financing. This financing liability has no contractual maturity. The effective interest rate is based on 1ML plus a margin of 450 bps.

Borrowings - Schedule of Financing Liabilities (Footnote) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Receipt of lump sum payment in connection with transfer of MSRs to NRZ	$ 279,600		$ 279,586
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 [Member]
Debt Instrument [Line Items]
Basis spread on UPB		0.21%
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		2.49%		2.50%
London Interbank Offered Rate (LIBOR) [Member] \| Financing Liability Owed to Securitization Investors [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		0.45%
Minimum [Member] \| IndyMac Mortgage Loan Trust (INDX 2004-AR11) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		3.68%
Minimum [Member] \| Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		4.25%
Maximum [Member] \| IndyMac Mortgage Loan Trust (INDX 2004-AR11) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		4.26%
Maximum [Member] \| Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		5.75%

Borrowings - Schedule of Other Secured Borrowings (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2019

Dec. 31, 2018

$ 66,100

London Interbank Offered Rate (LIBOR) [Member]

$ 6,658,386

$ 6,508,061

Senior Secured Notes [Member]

2.49%

2.50%

^[1]

$ 229,528

Unamortized debt issuance costs - SSTL

98,039

$ 155,713

(4,074)

(3,098)

Discount - SSTL

(2,126)

(1,577)

Long-term Debt

$ 436,982

$ 382,538

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

5.90%

5.49%

^[1],[2]

$ 0

^[2]

$ 345,143

$ 231,500

Senior Secured Notes [Member] | Repurchase Agreements [Member]

^[2]

Dec. 31, 2020

^[1],[3]

$ 59,468

^[3]

$ 40,532

74,693

Senior Secured Notes [Member] | Participation Agreement [Member]

^[3]

Sep. 30, 2019

^[1],[4]

$ 0

^[4]

$ 5,637

42,331

Senior Secured Notes [Member] | Mortgage Loan Warehouse Agreement [Member]

^[4]

Jul. 31, 2019

^[1],[5]

$ 0

^[5]

$ 12,466

8,009

Senior Secured Notes [Member] | Master Repurchase Agreement [Member]

^[5]

Aug. 31, 2019

^[1],[6]

$ 170,060

^[6]

$ 29,940

30,680

Senior Secured Notes [Member] | Master Repurchase Agreement [Member]

^[6]

Dec. 31, 2019

^[1],[7]

$ 0

^[7]

$ 733

^[7]

Jan. 31, 2020

Senior Secured Notes [Member] | Master Repurchase Agreement [Member]

^[7]

4.00%

Senior Secured Notes [Member] | Participation Agreement [Member]

^[8]

$ 0

^[9]

$ 8,731

Senior Secured Notes [Member] | Total Servicing Lines Of Credit [Member]

^[9]

Feb. 29, 2020

^[1]

$ 229,528

Senior Secured Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | Master Repurchase Agreement [Member]

$ 443,182

$ 387,213

Senior Secured Notes [Member] | Eurodollar [Member] | Senior Secured Term Loan [Member]

^[8]

1.70%

^[2]

5.00%

Senior Secured Notes [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Repurchase Agreements [Member]

^[2]

1.00%

Senior Secured Notes [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mortgage Loan Warehouse Agreement [Member]

^[3]

19.50%

Senior Secured Notes [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Master Repurchase Agreement [Member]

^[5]

2.75%

Senior Secured Notes [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Repurchase Agreements [Member]

^[6]

2.25%

Senior Secured Notes [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mortgage Loan Warehouse Agreement [Member]

^[3]

3.00%

Senior Secured Notes [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Master Repurchase Agreement [Member]

^[5]

3.50%

^[6]

2.75%

[1]	Available borrowing capacity for our mortgage loan warehouse facilities does not consider the amount of the facility that the lender has extended on an uncommitted basis. Of the borrowing capacity extended on a committed basis, $89.0 million could be used at March 31, 2019 based on the amount of eligible collateral that could be pledged.
[2]	On March 18, 2019, we entered into a Joinder and Amendment Agreement (the Amendment) which amends the existing Amended and Restated SSTL Facility Agreement dated December 5, 2016 to provide an additional term loan of $120.0 million subject to the same maturity, interest rate and other material terms of existing borrowings under the SSTL. Effective with the Amendment, the original borrowing capacity of $335.0 million has been increased to $455.0 million and the quarterly principal payment has been increased from $4.2 million to $6.4 million beginning March 31, 2019. See information regarding collateral in the table below.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) 1ML, plus a margin of 4.00% and subject to a base rate floor of 2.00% or (b) 1ML, plus a margin of 5.00% and subject to a 1ML floor of 1.00%. To date, we have elected option (b) to determine the interest rate.
[3]	The maximum borrowing under this agreement is $175.0 million, of which $100.0 million is available on a committed basis and the remainder is available at the discretion of the lender.
[4]	Under this participation agreement, the lender provides financing on an uncommitted basis of $175.0 million. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. 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. On April 29, 2019, the maturity date was extended to July 31, 2019. Effective with the merger of Homeward Residential Inc. into PMC in February 2019, an additional existing participation agreement with uncommitted borrowing capacity of $75.0 million and a maturity date of May 31, 2019 was terminated.
[5]	Under this participation agreement, the lender provides financing for $100.0 million on an uncommitted basis. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.
[6]	The maximum borrowing under this agreement is $250.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. The agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.
[7]	Under this agreement, the lender provides financing for up to $50.0 million on an uncommitted basis. On January 23, 2019, we renewed this facility through January 22, 2020.
[8]	This agreement was originally entered into by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. The lender provides financing for up to $200.0 million at the discretion of the lender. The agreement has no stated maturity date.
[9]	We entered into a master participation agreement on February 4, 2019 under which the lender will provide $300.0 million of borrowing capacity to PMC on an uncommitted basis. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. 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.

Borrowings - Schedule of Other Secured Borrowings (Footnote) (Details) - USD ($)		3 Months Ended	12 Months Ended
	Mar. 18, 2019	Mar. 31, 2019	Dec. 31, 2018	Feb. 04, 2019	May 31, 2018	Dec. 05, 2016
Debt Instrument [Line Items]
Available borrowing capacity		$ 66,100,000
Proceeds from additional borrowings on SSTL	$ 120,000,000
Amended Senior Secured Term Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		455,000,000				$ 335,000,000
Periodic prepayment of SSTL		6,400,000	$ 4,200,000
Repurchase Agreements [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 100,000,000	$ 175,000,000
Participation Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 300,000,000
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		2.49%	2.50%
Senior Secured Notes [Member] \| Participation Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 175,000,000
Senior Secured Notes [Member] \| Mortgage Loan Warehouse Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 100,000,000
Beneficial interest		100.00%
Senior Secured Notes [Member] \| Master Repurchase Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 250,000,000
Beneficial interest		100.00%
Borrowings available on committed basis		$ 200,000,000
Senior Secured Notes [Member] \| Master Repurchase Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		50,000,000.0
Senior Secured Notes [Member] \| Master Repurchase Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 200,000,000.0
Senior Secured Notes [Member] \| Participation Agreement [Member]
Debt Instrument [Line Items]
Beneficial interest		100.00%
Senior Secured Notes [Member] \| Senior Secured Term Loan Option One [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Senior Secured Notes [Member] \| Senior Secured Term Loan Option One [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		4.00%
Senior Secured Notes [Member] \| Senior Secured Term Loan Option One [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Senior Secured Notes [Member] \| Senior Secured Term Loan Option Two [Member] \| Eurodollar [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		5.00%
Senior Secured Notes [Member] \| Senior Secured Term Loan Option Two [Member] \| Eurodollar Floor [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Mortgage Loan Warehouse Facility [Member]
Debt Instrument [Line Items]
Available borrowing capacity		$ 89,000,000
May 31, 2019 Maturity [Member] \| Senior Secured Notes [Member] \| Participation Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 75,000,000.0

Borrowings - Schedule of Senior Notes (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Senior Unsecured Notes [Member]

$ 448,143

$ 448,727

119,064

Senior Notes [Member]

Unamortized debt issuance costs

449,942

(1,959)

(2,075)

Fair value adjustments

^[1]

160

860

Long-term Debt

448,143

448,727

7.375% Senior Notes, Due 2019 [Member] | Senior Unsecured Notes [Member]

6.375% Senior Notes, Due 2021 [Member] | Senior Unsecured Notes [Member]

^[1]

$ 97,521

97,521

Interest Rate

^[1]

7.375%

8.375% Senior Secured Notes Due In 2022 [Member] | Senior Secured Notes [Member]

^[1]

$ 21,543

21,543

Interest Rate

^[1]

6.375%

$ 330,878

Interest Rate

8.375%

[1]

Borrowings - Schedule of Senior Notes (Footnote) (Details)	3 Months Ended
	Mar. 31, 2019
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Redemption price	100.00%

Borrowings - Schedule of Redemption Prices (Details) - Senior Secured Notes [Member]	3 Months Ended
	Mar. 31, 2019
2018 [Member]
Debt Instrument [Line Items]
Redemption price	106.2812%
2019 [Member]
Debt Instrument [Line Items]
Redemption price	104.188%
2020 [Member]
Debt Instrument [Line Items]
Redemption price	102.094%
2021 and Thereafter [Member]
Debt Instrument [Line Items]
Redemption price	100.00%

Borrowings - Schedule of Assets Held as Collateral Related to Secured Borrowings (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

$ 263,188

$ 329,132

$ 285,653

63,379

67,878

1,400,191

1,457,149

225,360

249,382

868,720

937,294

222,687

242,622

5,753,154

5,498,719

197,043

198,262

69,316

33,417

474,172

379,567

Match Funded Liabilties [Member]

9,537,210

$ 9,394,216

$ 8,463,318

16,499

868,720

Financing Liabilities [Member]

885,219

913,465

8,569

5,640,925

Mortgage Loan Warehouse Agreement [Member]

6,562,959

5,588

64,223

30,875

Sale and Other Commitments [Member]

100,686

^[1]

^[1]

41,292

^[1]

9,210

^[1]

32,057

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

416,652

Other Liabilities [Member]

^[1]

499,211

^[2]

263,188

^[2]

^[2]

477,516

^[2]

184,734

^[2]

^[2]

158,464

^[2]

81,354

^[2]

197,043

^[2]

69,316

^[2]

57,520

Other Liabilities Disclosure [Abstract]

^[2]

$ 1,489,135

[1]

Sales and Other Commitments include MSRs and related advances committed under sale agreements, Restricted cash and deposits held as collateral to support certain contractual obligations, and Contingent loan repurchase assets related to the Ginnie Mae early buyout program for which a corresponding liability is recognized in Other liabilities.

[2]

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Contingent loan repurchase liability	$ 399,202	$ 302,581
Other accrued expenses	81,393	99,739
Lease liability	60,057	0
Due to NRZ - Advance collections and servicing fees	55,907	53,001
Accrued legal fees and settlements	52,916	62,763
Liability for indemnification obligations	48,668	51,574
Servicing-related obligations	39,041	41,922
Checks held for escheat	22,299	20,686
Accrued interest payable	13,172	7,209
Liability for uncertain tax positions	12,492	13,739
Liability for unfunded pension obligation	12,452	12,683
Liability for mortgage insurance contingency	6,820	6,820
Derivatives, at fair value	4,209	4,986
Deferred revenue	2,699	4,441
Other	21,394	21,492
Total other liabilities	$ 832,721	$ 703,636

Other Liabilities - Schedule of Changes in Liability for Legal Fees and Settlements (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Net accrual (reversal of accrual) for probable losses

$ 62,763

$ 51,057

^[1]

(631)

7,452

Issuance of common stock in settlement of litigation

^[2]

(9,407)

(6,036)

^[3]

(5,719)

Net increase (decrease) in accrued legal fees

191

(299)

(150)

Fair value of derivative assets (liabilities) at:

$ 52,916

$ 46,305

[1]	Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the unaudited consolidated statements of operations.
[2]	Includes cash payments made in connection with resolved legal and regulatory matters.
[3]	In January 2018, Ocwen issued 1,875,000 shares of common stock in connection with a securities litigation settlement.

Other Liabilities - Schedule of Changes in Liability for Legal Fees and Settlements (Footnote) (Details)	1 Months Ended
	Jan. 31, 2018 shares
Other Liabilities Disclosure [Abstract]
Issuance of common stock in connection with approved securities litigation	1,875,000

Derivative Financial Instruments and Hedging Activities - Summary of Derivatives (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

Interest Rate Lock Commitments [Member]

$ 4,341

$ 4,552

Derivative Notional Balance

Notional balance at March 31, 2019

117,770

Fair value of derivative assets (liabilities) at:

Gains (losses) on derivatives during the three months ended:

^[1]

3,982

3,871

Gains (losses) on derivatives

(341)

$ 1,377

Forward MBS Trades [Member]

Derivative Notional Balance

Notional balance at March 31, 2019

105,500

Fair value of derivative assets (liabilities) at:

Gains (losses) on derivatives during the three months ended:

^[1]

(4,126)

(4,983)

Gains (losses) on derivatives

(2,270)

2,398

Interest Rate Caps [Member]

Derivative Notional Balance

Notional balance at March 31, 2019

193,750

Fair value of derivative assets (liabilities) at:

Gains (losses) on derivatives during the three months ended:

^[1]

276

$ 678

Gains (losses) on derivatives

$ (402)

$ 193

[1]	Derivatives are reported at fair value in Other assets or in Other liabilities on our unaudited consolidated balance sheets.

Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency exchange gains (losses)	$ 0.2	$ (0.7)
Unrealized loss on derivatives arising during period, before tax	1.0	1.2
Other comprehensive income (loss), tax	$ 0.1	$ 0.1

Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt securities:
Interest expense	$ 70,445	$ 50,810
Financing Liabilities [Member]
Debt securities:
Interest expense	45,025	24,244
Senior Notes [Member]
Debt securities:
Interest expense	8,512	7,452
Other Secured Borrowings [Member]
Debt securities:
Interest expense	7,878	8,188
Match Funded Liabilties [Member]
Debt securities:
Interest expense	7,652	9,549
Other [Member]
Debt securities:
Interest expense	1,378	1,377
NRZ [Member] \| Financing Liabilities [Member]
Debt securities:
Interest expense	43,956	23,050
Other Financing Liabilities [Member] \| Financing Liabilities [Member]
Debt securities:
Interest expense	$ 1,069	$ 1,194

Basic and Diluted Earnings (Loss) per Share - Schedule of Reconciliation of Calculation of Basic Earnings per Share to Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Basic income (loss) per share

Net income (loss) attributable to Ocwen stockholders

^[1]

$ (44,494)

$ 2,548

Weighted average shares of common stock

133,918,986

133,121,465

Basic income (loss) per share (in USD per share)

$ (0.33)

$ 0.02

Diluted loss per share

Net income (loss) attributable to Ocwen stockholders

^[1]

$ (44,494)

$ 2,548

Weighted average shares of common stock

133,918,986

133,121,465

Effect of dilutive elements:

Stock options awards (in shares)

Common stock awards (in shares)

1,485,464

Dilutive weighted average shares of common stock (in shares)

133,918,986

134,606,929

Diluted income (loss) per share (in USD per share)

$ (0.33)

$ 0.02

Stock options and common stock awards excluded from the computation of diluted earnings per share

Anti-dilutive Securities (in shares)

^[1]

3,226,255

6,503,348

Market Based [Member]

Stock options and common stock awards excluded from the computation of diluted earnings per share

Anti-dilutive Securities (in shares)

^[2]

381,877

817,446

[1]	Includes stock options that are anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock, and stock awards that are anti-dilutive based on the application of the treasury stock method.
[2]	Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.

Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

$ 303,888

$ 260,257

^[1]

280,105

^[2]

206,501

4,558

2,700

(70,445)

(50,810)

(285)

1,305

(681)

(64,867)

(48,791)

(41,084)

4,965

9,537,210

8,463,318

$ 9,394,216

Servicing [Member]

Lending [Member]

Corporate Items and Other [Member]

Operating Segments [Member] | Servicing [Member]

(285)

259,274

226,096

^[1]

265,898

^[2]

171,095

2,294

429

(54,698)

(34,517)

1,525

(429)

(50,879)

(34,517)

(57,503)

20,484

Operating Segments [Member] | Lending [Member]

3,221,779

2,938,827

3,306,208

41,091

29,195

^[1]

21,331

^[2]

20,296

1,549

1,492

(1,668)

(1,946)

219

325

100

(129)

19,860

8,770

Operating Segments [Member] | Corporate Items and Other [Member]

5,848,830

5,131,232

5,603,481

3,523

4,966

^[1]

(7,124)

^[2]

15,110

715

779

(14,079)

(14,347)

(439)

(577)

(14,088)

(14,145)

(3,441)

(24,289)

Intersegment Eliminations [Member]

466,601

393,259

484,527

^[1]

^[2]

Long-term Purchase Commitment [Line Items]

$ 0

[1]

[2]

Business Segment Reporting - Schedule of Segment Reporting Information (Footnote) (Details) - Corporate and Other [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Severance expense	$ 18.5	$ 5.6
Recovery of professional services expense	$ 30.7

Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Depreciation expense	$ 8,551	$ 6,527
Amortization of debt discount	351	264
Amortization of debt issuance costs	700	656
Servicing [Member]
Segment Reporting Information [Line Items]
Depreciation expense	806	1,358
Amortization of debt discount	0	0
Amortization of debt issuance costs	0	0
Lending [Member]
Segment Reporting Information [Line Items]
Depreciation expense	36	29
Amortization of debt discount	0	0
Amortization of debt issuance costs	0	0
Corporate Items and Other [Member]
Segment Reporting Information [Line Items]
Depreciation expense	7,709	5,140
Amortization of debt discount	351	264
Amortization of debt issuance costs	$ 700	$ 656

Regulatory Requirements - Narrative (Details) $ in Millions	3 Months Ended
Regulatory Requirements - Narrative (Details) $ in Millions	Mar. 31, 2019 USD ($)
Brokers and Dealers [Abstract]
Number of days from fiscal year end that servicer is obliged to provide audited financial statements	90 days
Net worth requirement	$ 169.0
Outstanding amount of debt forgiveness for borrowers	$ 198.0

Commitments - Narrative (Details) $ in Millions	Mar. 31, 2019 USD ($)
Floating Rate Reverse Mortgage Loans [Member]
Other Commitments [Line Items]
Additional borrowing capacity to borrowers	$ 1,500.0
Forward Mortgage Loan Interest Rate Lock Commitments [Member]
Other Commitments [Line Items]
Short-term commitments to lend	97.6
Reverse Mortgage Loan Interest Rate Lock Commitments [Member]
Other Commitments [Line Items]
Short-term commitments to lend	$ 20.1

Commitments - Schedule of Activity Related to HMBS Repurchases (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2019

USD ($)

loan

Securities

Beginning balance, repurchase securities, number | Securities

262

Additions, repurchase securities, number | Securities

^[1]

Recoveries, net, repurchase securities, number | Securities

(6)

^[2]

Transfers, repurchase securities, number | Securities

Change in value, repurchase securities, number | Securities

Ending balance, repurchase securities, number | Securities

306

Beginning balance, repurchase securities, value

$ 16,880

Additions, repurchase securities, value

6,311

^[1]

Recoveries, repurchase securities, value

(2,325)

^[2]

Transfers, repurchase securities, value

Change in value, repurchase securities, value

(513)

Ending balance, repurchase securities, value

$ 20,353

Active [Member]

Long-term Purchase Commitment [Line Items]

Beginning balance, repurchase securities, number | loan

Additions, repurchase securities, number | loan

^[1]

Recoveries, net, repurchase securities, number | loan

(5)

^[2]

Transfers, repurchase securities, number | loan

(1)

Change in value, repurchase securities, number | loan

Ending balance, repurchase securities, number | Securities

Beginning balance, repurchase securities, value

$ 2,047

Additions, repurchase securities, value

1,245

^[1]

Recoveries, repurchase securities, value

(914)

^[2]

Transfers, repurchase securities, value

(377)

Change in value, repurchase securities, value

Ending balance, repurchase securities, value

$ 2,001

Inactive [Member]

Long-term Purchase Commitment [Line Items]

Beginning balance, repurchase securities, number | loan

252

Additions, repurchase securities, number | loan

^[1]

Recoveries, net, repurchase securities, number | loan

(1)

^[2]

Transfers, repurchase securities, number | loan

Change in value, repurchase securities, number | loan

Ending balance, repurchase securities, number | Securities

300

Beginning balance, repurchase securities, value

$ 14,833

Additions, repurchase securities, value

5,066

^[1]

Recoveries, repurchase securities, value

(1,411)

^[2]

Transfers, repurchase securities, value

377

Change in value, repurchase securities, value

(513)

Ending balance, repurchase securities, value

$ 18,352

[1]	Total repurchases during the three months ended March 31, 2019 includes 25 loans totaling $5.8 million related to MCA repurchases.
[2]	Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable.

Commitments - Schedule of Activity Related to HMBS Repurchases (Footnote) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) loan
Long-term Purchase Commitment [Line Items]
Number of maximum claim amount repurchases loans \| loan	25
Amount of maximum claim amount repurchases \| $	$ 5.8

Contingencies - Narrative (Details)		1 Months Ended		3 Months Ended
Contingencies - Narrative (Details)	Apr. 20, 2017 State States	Apr. 30, 2019 USD ($)	Apr. 30, 2017 USD ($)	Mar. 31, 2019 USD ($) Loan States	Dec. 31, 2018 USD ($)	Mar. 31, 2018 USD ($) Loan	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Accrued penalty				$ 52,916,000	$ 62,763,000	$ 46,305,000	$ 51,057,000
Number of states charging with regulatory action \| States	29
Number of states where regulatory actions were resolved \| States				29
Number of loan files to be tested relating to escrow on residential real property \| Loan				9,000
Number of state attorneys general charging with regulatory action \| State	2
Warranty repurchase demands unpaid principal balance				$ 46,300,000		$ 31,400,000
Warranty repurchase demands number of loans \| Loan				273		192
PHH Corporation [Member]
Loss Contingencies [Line Items]
Warranty repurchase demands unpaid principal balance				$ 26,000,000
Warranty repurchase demands number of loans \| Loan				173
Consumer Financial Protection Bureau [Member]
Loss Contingencies [Line Items]
Accrued penalty								$ 12,500,000
Massachusetts Regulatory Agency [Member]
Loss Contingencies [Line Items]
Litigation settlement expense				$ 1,000,000
Florida Attorney General [Member]
Loss Contingencies [Line Items]
Injunctive and equitable relief, costs, and civil money penalties sought			$ 10,000
Multistate Mortgage Committee [Member]
Loss Contingencies [Line Items]
Accrued penalty				$ 0
Number of states who are part of confidential supervisory memorandum of understanding \| States				6
Subsequent Event [Member] \| Massachusetts Regulatory Agency [Member]
Loss Contingencies [Line Items]
Litigation settlement expense		$ 675,000

Contingencies - Schedule of Indemnification Obligations (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Indemnification Obligations Liability [Roll Forward]

Provision for (reversal of) representation and warranty obligations

$ 49,267

$ 19,229

(2,155)

New production reserves

104

Charge-offs and other

^[1]

(573)

(1,844)