0001628280-21-008909 | 10-Q | XBRL Viewer

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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Entity Registrant Name	OCWEN FINANCIAL CORPORATION
Entity Central Index Key	0000873860
Current Fiscal Year End Date	--12-31
Entity File Number	1-13219
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	65-0039856
Entity Address, Address Line One	1661 Worthington Road, Suite 100
Entity Address, City or Town	West Palm Beach,
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33409
City Area Code	561
Local Phone Number	682-8000
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,708,271
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	OCN
Security Exchange Name	NYSE

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 259,108	$ 284,802
Restricted cash (amounts related to variable interest entities (VIEs) of $9,809 and $16,791)	77,319	72,463
Mortgage servicing rights (MSRs), at fair value	1,400,217	1,294,817
Advances, net (amounts related to VIEs of $623,570 and $651,576)	786,678	828,239
Loans held for sale ($500,814 and $366,364 carried at fair value)	517,823	387,836
Loans held for investment, at fair value (amounts related to VIEs of $8,820 and $9,770)	7,053,194	7,006,897
Receivables, net	178,209	187,665
Premises and equipment, net	14,369	16,925
Other assets ($17,307 and $25,476 carried at fair value) (amounts related to VIEs of $3,221 and $4,544)	484,871	571,483
Total assets	10,771,788	10,651,127
Liabilities
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value	6,778,195	6,772,711
Advance match funded liabilities (related to VIEs)	550,437	581,288
Other financing liabilities, at fair value (amounts related to VIEs of $8,820 and $9,770)	559,184	576,722
Other secured borrowings, net	1,066,022	1,069,161
Senior notes, net	542,927	311,898
Other liabilities ($10,012 and $4,638 carried at fair value)	835,013	923,975
Total liabilities	10,331,778	10,235,755
Commitments and Contingencies (Notes 20 and 21)
Ocwen Financial Corporation (Ocwen) stockholders’ equity
Common stock, $.01 par value; 13,333,333 shares authorized; 8,701,530 and 8,687,750 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	87	87
Additional paid-in capital	572,500	556,062
Accumulated deficit	(123,139)	(131,682)
Accumulated other comprehensive loss, net of income taxes	(9,438)	(9,095)
Total stockholders’ equity	440,010	415,372
Total liabilities and stockholders’ equity	$ 10,771,788	$ 10,651,127

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Restricted cash	$ 77,319	$ 72,463
Advances	786,678	828,239
Loans held for sale, at fair value	500,814	366,364
Loans held for investment, at fair value (amounts related to VIEs of $8,820 and $9,770)	7,053,194	7,006,897
Other assets, at fair value	17,307	25,476
Other assets	484,871	571,483
Other financing liabilities, at fair value (amounts related to VIEs of $8,820 and $9,770)	559,184	576,722
Other liabilities, fair value	$ 10,012	$ 4,638
Common Stock, Par or Stated Value Per Share	$ 0.01
Common stock, shares authorized	13,333,333
Common stock, shares, outstanding	8,701,530	8,687,750
Residential Mortgage Backed Securitization Trusts
Loans held for investment, at fair value (amounts related to VIEs of $8,820 and $9,770)	$ 8,820	$ 9,770
Other financing liabilities, at fair value (amounts related to VIEs of $8,820 and $9,770)	8,820	9,770
Variable Interest Entity, Primary Beneficiary
Restricted cash	9,809	16,791
Advances	623,570	651,576
Other assets	$ 3,221	$ 4,544

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue
Servicing and subservicing fees	$ 171,738	$ 211,483
Reverse mortgage revenue, net	21,826	22,797
Gain on loans held for sale, net	5,721	13,331
Other revenue, net	8,309	6,231
Total revenue	207,594	253,842
MSR valuation adjustments, net	21,208	(174,120)
Operating expenses
Compensation and benefits	68,281	60,728
Servicing and origination	27,470	20,256
Professional services	17,322	25,637
Technology and communications	13,143	15,193
Occupancy and equipment	8,852	11,969
Other expenses	4,561	3,431
Total operating expenses	139,629	137,214
Other income (expense)
Interest income	3,936	5,395
Interest expense	(28,452)	(29,982)
Pledged MSR liability expense	(37,850)	(6,594)
Loss on extinguishment of debt	(15,458)	0
Other, net	290	1,328
Total other expense, net	(77,534)	(29,853)
Income (loss) before income taxes	11,639	(87,345)
Income tax expense (benefit)	3,096	(61,856)
Net income (loss)	$ 8,543	$ (25,489)
Earnings (loss) per share
Basic (in USD per share)	$ 0.98	$ (2.84)
Diluted (in USD per share)	$ 0.96	$ (2.84)
Weighted average common shares outstanding
Basic (in shares)	8,688,009	8,990,589
Diluted (in shares)	8,877,492	8,990,589

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 8,543	$ (25,489)
Other comprehensive income, net of income taxes:
Change in unfunded pension plan obligation liability	(367)	46
Other	24	36
Comprehensive income (loss)	$ 8,200	$ (25,407)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings	(Accumulated Deficit) Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss, Net of Income Taxes
Beginning Balance at Dec. 31, 2019	$ 412,011		$ 90	$ 558,057	$ (138,542)		$ (7,594)
Beginning Balance (in shares) at Dec. 31, 2019			8,990,816
Net income (loss)	(25,489)				(25,489)
Cumulative effect of adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13		$ 47,038				$ 47,038
Repurchase of common stock	$ (4,605)		$ (4)	(4,601)
Repurchase of common stock (in shares)	(377,484)		(377,484)
Equity-based compensation and other	$ 820		$ 0	820
Equity-based compensation and other (in shares)			25,486
Other comprehensive income, net of income taxes	82						82
Ending Balance at Mar. 31, 2020	$ 429,857		$ 86	554,276	(116,993)		(7,512)
Ending Balance (in shares) at Mar. 31, 2020			8,638,818
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Beginning Balance at Dec. 31, 2020	$ 415,372		$ 87	556,062	(131,682)		(9,095)
Beginning Balance (in shares) at Dec. 31, 2020	8,687,750		8,687,750
Net income (loss)	$ 8,543				8,543
Issuance of common stock warrants, net of issuance costs	15,753			15,753
Equity-based compensation and other	685		$ 0	685
Equity-based compensation and other (in shares)			13,780
Other comprehensive income, net of income taxes	(343)						(343)
Ending Balance at Mar. 31, 2021	$ 440,010		$ 87	$ 572,500	$ (123,139)		$ (9,438)
Ending Balance (in shares) at Mar. 31, 2021	8,701,530		8,701,530

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income (loss)	$ 8,543	$ (25,489)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
MSR valuation adjustments, net	(21,208)	174,120
Loss (gain) on sale of MSRs, net	25	(286)
Provision for bad debts	6,545	4,879
Depreciation	2,859	3,997
Amortization of debt issuance costs and discount	1,624	2,662
Equity-based compensation expense	863	746
Loss on extinguishment of debt	15,458	0
Loss (gain) on valuation of Pledged MSR financing liability	1,551	(30,697)
Net gain on valuation of loans held for investment and HMBS-related borrowings	(6,513)	(17,910)
Gain on loans held for sale, net	(5,721)	(13,331)
Origination and purchase of loans held for sale	(3,333,999)	(831,474)
Proceeds from sale and collections of loans held for sale	3,179,487	843,178
Changes in assets and liabilities:
Decrease in advances, net	38,704	29,428
(Increase) decrease in receivables and other assets, net	(2,447)	13,642
(Decrease) increase in other liabilities	(13,245)	18,033
Other, net	(2,833)	(521)
Net cash (used in) provided by operating activities	(130,307)	170,977
Cash flows from investing activities
Origination of loans held for investment	(326,735)	(294,932)
Principal payments received on loans held for investment	315,105	175,095
Purchase of MSRs	(41,556)	(29,828)
Proceeds from sale of real estate	2,306	2,814
Other, net	(1,952)	(476)
Net cash used in investing activities	(52,832)	(147,327)
Cash flows from financing activities
Repayment of advance match funded liabilities, net	(30,851)	(53,158)
Repayment of other financing liabilities	(18,566)	(50,427)
Proceeds from (repayment of) mortgage loan warehouse facilities, net	157,720	(43,103)
Proceeds from MSR financing facilities	64,098	61,028
Repayment of MSR financing facilities	(44,661)	(115,447)
Repayment of Senior notes	(319,156)	0
Proceeds from issuance of Senior notes and warrants	572,944	0
Repayment of senior secured term loan (SSTL) borrowings	(188,700)	(126,066)
Payment of debt issuance costs	(6,795)	(7,267)
Proceeds from sale of Home Equity Conversion Mortgages (HECM, or reverse mortgages) accounted for as a financing (HMBS-related borrowings)	287,830	312,249
Repayment of HMBS-related borrowings	(311,562)	(172,429)
Repurchase of common stock	0	(4,605)
Other, net	0	(33)
Net cash provided by (used in) financing activities	162,301	(199,258)
Net decrease in cash, cash equivalents and restricted cash	(20,838)	(175,608)
Cash, cash equivalents and restricted cash at beginning of year	357,265	492,340
Cash, cash equivalents and restricted cash at end of period	336,427	316,732
Supplemental non-cash investing and financing activities:
Right-of-use asset	292	2,695
Lease liability	292	2,695
Transfers of loans held for sale to real estate owned (REO)	2,052	768
Transfer from loans held for investment to loans held for sale	901	578
MSRs	0	(263,344)
Financing liability - MSRs pledged (Rights to MSRs)	0	(263,344)
Recognition of future draw commitments for HECM loans at fair value upon adoption of FASB ASU No. 2016-13	0	47,038
Cash and cash equivalents	259,108	263,555
Debt service accounts	15,930	15,868
Other restricted cash	$ 61,389	$ 37,309

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation


Note 1 - Organization and Basis of Presentation

Organization

Ocwen Financial Corporation (NYSE: OCN) (Ocwen, OFC, we, us and our) is a non-bank mortgage servicer and originator providing solutions to homeowners, investors and others through its primary operating subsidiary, PHH Mortgage Corporation (PMC). We are headquartered in West Palm Beach, Florida with offices and operations in the United States (U.S.), the United States Virgin Islands (USVI), India and the Philippines. Ocwen is a Florida corporation organized in February 1988.

Ocwen directly or indirectly owns all of the outstanding common stock of its operating subsidiaries, including PMC since its acquisition on October 4, 2018, Ocwen Financial Solutions Private Limited (OFSPL) and Ocwen USVI Services, LLC (OVIS).

We perform servicing activities related to our own MSR portfolio (primary) and 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 (PLS, or 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 generally 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 source our servicing portfolio through multiple channels, including recapture, retail, wholesale, correspondent, flow MSR purchase agreements, the GSE Cash Window programs and bulk MSR purchases. We originate, sell and securitize conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as Agency or GSE) loans and government-insured (Federal Housing Administration (FHA) or Department of Veterans Affairs (VA)) forward mortgage loans, generally with servicing retained. The GSEs or Ginnie Mae guarantee these mortgage securitizations. We originate and purchase Home Equity Conversion Mortgage (HECM) loans, or reverse mortgages, that are mostly insured by the FHA and we are an approved issuer of Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae.

We had a total of approximately 4,900 employees at March 31, 2021 of which approximately 3,000 were located in India and approximately 400 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, approximately 69% were engaged in supporting our loan servicing operations as of March 31, 2021.

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, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2021. 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, 2020.

In August 2020, Ocwen implemented a reverse stock split of its shares of common stock in a ratio of one-for-15. The number of shares, loss per share amounts, repurchase price per share amounts, and Common stock and Additional paid-in capital balances have been retroactively adjusted for all periods presented in this Quarterly Report on Form 10-Q to give effect

to the reverse stock split as if it occurred at the beginning of the first period presented. See Note 13 – Equity for additional information.

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 and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions.

Recently Adopted Accounting Standards

Income Taxes (ASC Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12)

The FASB issued this ASU to ASC Topic 740, Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include the removal of certain exceptions to the general principles of ASC Topic 740 in such areas as intraperiod tax allocation, year to date losses in interim periods and deferred tax liabilities related to outside basis differences. Amendments also include simplification in other areas such as interim recognition of enactment of tax laws or rate changes and accounting for a franchise tax (or similar tax) that is partially based on income.

Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements.

Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity—Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06)

The amendments in this ASU simplify the accounting for certain financial instruments with characteristics of liabilities and equity by reducing the number of accounting models for convertible debt and convertible preferred stock instruments. In addition, this ASU amended the derivative guidance for the “own stock” scope exception and certain aspects when calculating earnings per share. The amendments in this ASU affect entities that issue convertible instruments and/or contracts in an entity’s own equity.

The amendments in this ASU are effective on January 1, 2022, with early adoption permitted on January 1, 2021. Our early adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements.

Investments—Equity Securities (ASC Topic 321), Investments—Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815) (ASU 2020-01)

The amendments in this ASU affect all entities that apply the guidance in ASC Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The amendments clarify that forward or option contracts to purchase investments that will be accounted for using the equity method that do not meet the definition of a derivative under ASC Topic 815 are in the scope of ASC Topic 321. Therefore, when the purchase contract is considered a forward or option contract in the scope of this guidance, the investor would account for changes in the contract’s fair value prior to closing through earnings, unless the contract qualifies for the measurement alternative and it is elected. If the measurement alternative is elected, the change in the fair value of the contract would be reflected in earnings upon closing. In addition, if there are observable transactions or impairments before closing, the guidance would require remeasurement of the contract to fair value.

The guidance in this ASU also specifies that when applying the measurement alternative in ASC Topic 321, observable

transactions include those transactions by the investor that result in the application or discontinuation of the equity method

of accounting.

The amendments under this ASU are effective prospectively. Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements.

Securitizations and Variable Interest Entities

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

Securitizations and Variable Interest Entities


Note 2 – Securitizations and Variable Interest Entities

We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with asset-backed financing arrangements. We have aggregated these transfers of financial assets and asset-backed financing arrangements using special purpose entities (SPEs) or variable interest entities (VIEs) into three groups: (1)

securitizations of residential mortgage loans, (2) financings of advances and (3) MSR financings. Financing transactions that do not use SPEs or VIEs are disclosed in Note 11 – Borrowings.

Securitizations of Residential Mortgage Loans

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 of loans accounted for as sales that were outstanding:


	Three Months Ended March 31,
	2021		2020
Proceeds received from securitizations	$	3,248,918	$	820,001
Servicing fees collected (1)	13,178		12,252
Purchases of previously transferred assets, net of claims reimbursed	(3,239)		(2,607)
	$	3,258,857	$	829,646

(1)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.

In connection with these transfers, we retained MSRs of $34.3 million and $6.6 million during the three months ended March 31, 2021 and 2020, respectively. We securitize forward and reverse residential mortgage loans involving the GSEs and loans insured by the FHA or VA through Ginnie Mae.

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 insurer 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, 2021		December 31, 2020
Carrying value of assets
MSRs, at fair value	$	194,600	$	137,029

Advances	140,720		143,361
UPB of loans transferred (1)	20,175,148		18,062,856
Maximum exposure to loss	$	20,510,468	$	18,343,246

(1)Includes $4.0 billion and $4.1 billion of loans delivered to Ginnie Mae as of March 31, 2021 and December 31, 2020, respectively, and includes loan modifications delivered through the Ginnie Mae Early Buyout Program (EBO).

At March 31, 2021 and December 31, 2020, 5.5% and 6.8%, respectively, of the transferred residential loans that we service were 60 days or more past due, including 60 days or more past due loans under forbearance. This includes 15.2% and 17.1%, respectively, of loans delivered to Ginnie Mae that are 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.

Financings of Advances using SPEs

Match funded advances, i.e., advances that are pledged as collateral to our advance facilities, 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 SPEs. These SPEs issue debt supported by collections on the transferred advances, and we refer to this debt as Advance match funded liabilities. Holders of the debt issued by the SPEs have recourse only to the assets of the SPE for satisfaction of the debt.

The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities:


	March 31, 2021		December 31, 2020
Match funded advances (Advances, net)	$	623,570	$	651,576
Debt service accounts (Restricted cash)	7,186		14,195
Unamortized deferred lender fees (Other assets)	2,957		4,253
Prepaid interest (Other assets)	263		291
Advance match funded liabilities	550,437		581,288

MSR Financings using SPEs

In 2019, we entered into a financing facility with a third-party secured by certain Fannie Mae and Freddie Mac MSRs (Agency MSRs). Two SPEs (trusts) were established in connection with this facility.

We determined that the trusts are VIEs for which we are the primary beneficiary. Therefore, we have included the trusts in our consolidated financial statements. We have the power to direct the activities of the VIEs that most significantly impact the VIE’s economic performance given that we are the servicer of the Agency MSRs that result in cash flows to the trusts. In addition, we have designed the trusts at inception to facilitate the third-party funding facility under which we have the obligation to absorb the losses of the VIEs that could be potentially significant to the VIEs.

The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility:


	March 31, 2021		December 31, 2020

MSRs pledged (MSRs, at fair value)	$	584,872	$	476,371
Unamortized deferred lender fees (Other assets)	606		1,183
Debt service account (Restricted cash)	213		211
Outstanding borrowings (Other secured borrowings, net)	250,000		210,755

In 2019, we issued Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A (PLS Notes) secured by certain of PMC’s private label MSRs (PLS MSRs). An SPE, PMC PLS ESR Issuer LLC (PLS Issuer), was established in this connection as a wholly owned subsidiary of PMC. Ocwen guarantees the obligations of PLS Issuer under the facility.

We determined that PLS Issuer is a VIE for which we are the primary beneficiary. Therefore, we have included PLS Issuer in our consolidated financial statements. We have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance given that we are the servicer of the MSRs that result in cash flows to PLS Issuer. In addition, PMC has designed PLS Issuer at inception to facilitate the funding for general corporate purposes. Separately, in return for the participation interests, PMC received the proceeds from issuance of the PLS Notes. PMC is the sole member of PLS Issuer, thus PMC has the obligation to absorb the losses of the VIE that could be potentially significant to the VIE.

The table below presents the carrying value and classification of the assets and liabilities of the PLS Notes facility:


	March 31, 2021		December 31, 2020

MSRs pledged (MSRs, at fair value)	$	123,422	$	129,204
Debt service account (Restricted cash)	2,410		2,385
Outstanding borrowings (Other secured borrowings, net)	62,297		68,313
Unamortized debt issuance costs (Other secured borrowings, net)	764		894

Fair Value

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value


Note 3 – 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.

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, 2021				December 31, 2020
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Loans held for sale
Loans held for sale, at fair value (a) (e)	3, 2	$	500,814	$	500,814	$	366,364	$	366,364
Loans held for sale, at lower of cost or fair value (b)	3	17,009		17,009		21,472		21,472
Total Loans held for sale		$	517,823	$	517,823	$	387,836	$	387,836

Loans held for investment
Loans held for investment - Reverse mortgages (a)	3	$	7,044,374	$	7,044,374	$	6,997,127	$	6,997,127
Loans held for investment - Restricted for securitization investors (a)	3	8,820		8,820		9,770		9,770
Total loans held for investment		$	7,053,194	$	7,053,194	$	7,006,897	$	7,006,897

Advances, net (c)	3	$	786,678	$	786,678	$	828,239	$	828,239

Receivables, net (c)	3	178,209		178,209		187,665		187,665
Mortgage-backed securities (a)	3	1,613		1,613		2,019		2,019

Corporate bonds (a)	2	211		211		211		211

Financial liabilities:
Advance match funded liabilities (c)	3	$	550,437	$	550,862	$	581,288	$	581,997
Financing liabilities:
HMBS-related borrowings (a)	3	$	6,778,195	$	6,778,195	$	6,772,711	$	6,772,711
Financing liability - MSRs pledged (Rights to MSRs) (a)	3	550,364		550,364		566,952		566,952
Financing liability - Owed to securitization investors (a)	3	8,820		8,820		9,770		9,770

Total Financing liabilities		$	7,337,379	$	7,337,379	$	7,349,433	$	7,349,433
Other secured borrowings:
Senior secured term loan (c) (d)	2	$	—	$	—	$	179,776	$	184,639
Mortgage warehouse and MSR financing (c) (d)	3	1,066,022		1,037,199		889,385		858,573
Total Other secured borrowings		$	1,066,022	$	1,037,199	$	1,069,161	$	1,043,212


		March 31, 2021				December 31, 2020
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes:
Senior notes (c) (d) (f)	2	391,377		399,537		311,898		320,879
OFC Senior notes due 2027 (c) (d) (f)	3	151,550		180,318		—		—
Total Senior notes		$	542,927	$	579,855	$	311,898	$	320,879

Derivative financial instrument assets (liabilities)
Interest rate lock commitments (a)	3	$	14,589	$	14,589	$	22,706	$	22,706
Forward trades - Loans held for sale (a)	2	(52)		(52)		(50)		(50)
TBA / Forward mortgage-backed securities (MBS) trades (a)	1	480		480		(4,554)		(4,554)
Interest rate swap futures (a)	1	(9,532)		(9,532)		504		504
Other	3	(14)		(14)		—		—

MSRs (a)	3	$	1,400,217	$	1,400,217	$	1,294,817	$	1,294,817

(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 11 – Borrowings for additional information.

(e)Loans repurchased from Ginnie Mae securitizations with a fair value of $71.4 million and $51.1 million at March 31, 2021 and December 31, 2020, respectively, are classified as Level 3. The remaining balance of loans held for sale at fair value is classified as Level 2.

(f)On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of senior secured notes. Fair value is based on valuation data obtained from a pricing service. Therefore, these notes are classified as Level 2. Additionally on March 4, 2021, Ocwen completed the private placement of $199.5 million aggregate principal amount of senior secured second lien notes. These notes are classified as Level 3 as we determine fair value based on valuations provided by third parties involved in the issuance and placement of the notes. These methodologies are consistent with our current fair value policies. See Note 11 – 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 - Restricted for Securitization Investors		Financing Liability - Owed to Securitization Investors		Loans Held for Sale - Fair Value		Mortgage-Backed Securities		IRLCs
Three months ended March 31, 2021
Beginning balance	$	9,770	$	(9,770)	$	51,072	$	2,019	$	22,706

Purchases, issuances, sales and settlements
Purchases	—		—		58,916		—		—
Issuances	—		—		—		—		134,370

Sales	—		—		(32,889)		—		—
Settlements	(950)		950		—		—		—
Transfers (to) from:

Loans held for sale, at fair value	—		—		—		—		(128,564)
Other assets	—		—		(96)		—		—


	(950)		950		25,931		—		5,806



Change in fair value included in earnings	—		—		(5,640)		(406)		(13,923)
Calls and other	—		—		4		—		—

	—		—		(5,636)		(406)		(13,923)

Ending balance	$	8,820	$	(8,820)	$	71,367	$	1,613	$	14,589


	Loans Held for Investment - Restricted for Securitization Investors		Financing Liability - Owed to Securitization Investors		Loans Held for Sale - Fair Value		Mortgage-Backed Securities		IRLCs
Three months ended March 31, 2020
Beginning balance	$	23,342	$	(22,002)	$	—	$	2,075	$	—





Settlements	(781)		637		—		—		—








Change in fair value included in earnings	—		—				(405)		—



Transfers in and / or out of Level 3	—		—		25,582		—		10,478
Ending balance	$	22,561	$	(21,365)	$	25,582	$	1,670	$	10,478

A rollforward of the beginning and ending balances of Loans Held for Investment and HMBS-related borrowings, MSRs and Financing liability - MSRs pledged that we measure at fair value on a recurring and non-recurring basis is provided in Note 5 – Reverse Mortgages, Note 7 – Mortgage Servicing and Note 8 — Rights to MSRs, respectively.

During the three months ended March 31, 2021, there have been no changes to the methodologies that we use in estimating fair values or classifications under the valuation hierarchy as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020. The significant unobservable assumptions that we make to estimate the fair value of significant assets and liabilities classified as Level 3 and measured at fair value on a recurring or non-recurring basis are provided below.

Loans Held for Sale

The fair value of loans we purchased from Ginnie Mae guaranteed securitizations is estimated using both observable and unobservable inputs, including published forward Ginnie Mae prices or existing sale contracts, as well as estimated default, prepayment, and discount rates. The significant unobservable input in estimating fair value is the estimated default rate. Accordingly, these repurchased Ginnie Mae loans are classified as Level 3 within the valuation hierarchy.

Loans Held for Investment - Reverse Mortgages

Reverse mortgage loans held for investment are carried at fair value and classified as Level 3 within the valuation hierarchy. Significant unobservable assumptions include voluntary prepayment speeds, defaults and discount rate. The

conditional prepayment speed assumption displayed in the table below is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates.


Significant unobservable assumptions	March 31, 2021		December 31, 2020
Life in years
Range	0.9 to 7.9		0.9 to 8.0
Weighted average	5.5		5.9
Conditional prepayment rate, including voluntary and involuntary prepayments
Range	10.7% to 37.6%		10.6% to 28.8%
Weighted average	16.5	%	15.4	%
Discount rate	2.4	%	1.9	%

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, excluding future draw commitments, are partially offset by the effects of changes in the assumptions used to value the HMBS-related borrowings that are associated with these loans.

MSRs

MSRs are carried at fair value and classified within Level 3 of the valuation hierarchy. The fair value is determined using 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 recorded at the estimated sale price.

A change in the valuation inputs or assumptions may result in a significantly higher or lower fair value measurement. Changes in market interest rates predominantly impact the fair value for Agency MSRs via prepayment speeds by altering the borrower refinance incentive and the non-Agency MSRs due to the impact on advance costs. The significant unobservable assumptions used in the valuation of these MSRs include prepayment speeds, delinquency rates, cost to service and discount rates.


Significant unobservable assumptions	March 31, 2021						December 31, 2020
	Agency			Non-Agency			Agency			Non-Agency
Weighted average prepayment speed	10.0		%	11.4		%	11.8		%	11.5		%
Weighted average lifetime delinquency rate	2.6		%	27.8		%	3.0		%	28.0		%


Weighted average discount rate	9.2		%	11.5		%	9.2		%	11.4		%
Weighted average cost to service (in dollars)	$	76		$	270		$	79		$	270

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 as of March 31, 2021 given hypothetical shifts in lifetime prepayments and yield assumptions:


Adverse change in fair value	10%		20%
Weighted average prepayment speeds	$	(42,029)	$	(82,863)
Weighted average discount rate	(30,387)		(58,785)

The sensitivity analysis measures the potential impact on fair values based on hypothetical changes, which in the case of our portfolio at March 31, 2021 are increased prepayment speeds and an increase in the yield assumption.

Financing Liabilities

HMBS-Related Borrowings

HMBS-related borrowings are carried at fair value and classified as Level 3 within the valuation hierarchy. These borrowings are not actively traded, and therefore, quoted market prices are not available.

Significant unobservable assumptions include yield spread and discount rate. The yield spread and discount rate assumption for these liabilities are primarily based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates.


Significant unobservable assumptions	March 31, 2021		December 31, 2020
Life in years
Range	0.9 to 8.0		0.9 to 8.0
Weighted average	5.9		5.9
Conditional prepayment rate
Range	10.7% to 37.6%		10.6% to 28.8%
Weighted average	16.5	%	15.4	%
Discount rate	2.3	%	1.7	%

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

MSRs Pledged (Rights to MSRs)

These liabilities carried at fair value and classified as Level 3 within the valuation hierarchy. We determine the fair value of the pledged MSR liability consistent with the mid-point of the range of prices provided by third-party valuation experts for the related MSR.


Significant unobservable assumptions	March 31, 2021			December 31, 2020
Weighted average prepayment speed	11.4		%	11.5		%
Weighted average delinquency rate	29.5		%	29.8		%


Weighted average discount rate	11.5		%	11.4		%
Weighted average cost to service (in dollars)	$	286		$	287

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

Derivative Financial Instruments

Interest rate lock commitments (IRLCs) are classified as Level 3 assets as fallout rates were determined to be significant unobservable assumptions.

- Definition

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, 2021

Receivables [Abstract]

Loans Held for Sale


Note 4 – Loans Held for Sale


Loans Held for Sale - Fair Value	Three Months Ended March 31,
	2021		2020
Beginning balance	$	366,364	$	208,752
Originations and purchases	3,333,901		831,474
Proceeds from sales	(3,169,015)		(805,202)
Principal collections	(5,418)		(6,833)
Transfers from (to):
Loans held for investment, at fair value	901		578

Receivables, net	(8,633)		(31,302)
REO (Other assets)	(2,052)		(768)
Gain (loss) on sale of loans	(13,732)		6,418
Decrease in fair value of loans	(5,256)		(1,642)
Other	3,754		2,117
Ending balance (1)	$	500,814	$	203,592

(1)At March 31, 2021 and 2020, the balances include $(12.0) million and $(9.4) million, respectively, of fair value adjustments.


Loans Held for Sale - Lower of Cost or Fair Value	Three Months Ended March 31,
	2021		2020
Beginning balance - before Valuation Allowance	$	27,652	$	73,160
Purchases	98		—
Proceeds from sales	(4,840)		(30,492)
Principal collections	(214)		(651)
Transfers from (to):
Receivables, net	—		266


Gain on sale of loans	389		1,842

Other	(614)		5,079
Ending balance - before Valuation Allowance	22,471		49,204

Beginning balance - Valuation Allowance	$	(6,180)	$	(6,643)
Provision	703		(570)
Transfer to (from) Liability for indemnification obligations (Other liabilities)	15		(25)
Sales of loans	—		457

Ending balance - Valuation Allowance	(5,462)		(6,781)

Ending balance, net	$	17,009	$	42,423


Gain on Loans Held for Sale, Net	Three Months Ended March 31,
	2021		2020
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	34,260	$	6,561

Gain (loss) on sale of forward mortgage loans	(18,567)		6,418
Gain on sale of repurchased Ginnie Mae loans	4,900		1,842

	20,593		14,821
Change in fair value of IRLCs	(8,618)		5,714
Change in fair value of loans held for sale	(4,981)		159
Gain (loss) on economic hedge instruments (1)	—		(7,192)
Other	(1,273)		(171)
	$	5,721	$	13,331

(1)Excludes $35.4 million gain on inter-segment economic hedge derivative presented within MSR valuation adjustments, net for the three months ended March 31, 2021. Third-party derivatives are hedging the net exposure of MSR and pipeline, and the change in fair value of derivatives are reported within MSR valuation adjustments, net. Inter-segment derivatives are established to transfer risk and allocate hedging gains/losses to the pipeline separately from the MSR portfolio. Refer to Note 18 – Business Segment Reporting.

Reverse Mortgages

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Reverse Mortgages

Note 5 – Reverse Mortgages


	Three Months Ended March 31,
	2021				2020
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	6,997,127	$	(6,772,711)	$	6,269,596	$	(6,063,434)
Cumulative effect of fair value election (1)	—		—		47,038		—
Originations	326,735		—		294,932		—
Securitization of HECM loans accounted for as a financing	—		(287,830)		—		(312,249)
Additional proceeds from securitization of HECM loans and tails	—		(12,565)		—		(8,414)
Repayments (principal payments received)	(314,153)		311,562		(175,095)		172,429
Transfers to:
Loans held for sale, at fair value	(901)		—		(578)		—
Receivables, net	(116)		—		(129)		—
Other assets	(111)		—		(265)		—
Change in fair value included in earnings	35,793		(16,651)		133,322		(111,423)
Ending Balance	$	7,044,374	$	(6,778,195)	$	6,568,821	$	(6,323,091)
Securitized loans (pledged to HMBS-Related Borrowings)	$	6,874,880	$	(6,778,195)	$	6,438,810	$	(6,323,091)
Unsecuritized loans	169,494				130,011
Total	$	7,044,374			$	6,568,821

(1)In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020.


Reverse Mortgage Revenue, net	Three Months Ended March 31,
	2021		2020
Gain on new originations (1)	$	17,107	$	16,784
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	2,035		5,115

Change in fair value included in earnings, net	19,142		21,899
Loan fees and other	2,684		898
	$	21,826	$	22,797

(1)Includes the changes in fair value of newly originated loans held for investment in the period through securitization date.

Advances

3 Months Ended

Mar. 31, 2021

Advances [Abstract]

Advances


Note 6 – Advances


	March 31, 2021		December 31, 2020
Principal and interest	$	258,428	$	277,132
Taxes and insurance	348,659		364,593
Foreclosures, bankruptcy, REO and other	185,750		192,787
	792,837		834,512
Allowance for losses	(6,159)		(6,273)
Advances, net	$	786,678	$	828,239

The following table summarizes the activity in net advances:


	Three Months Ended March 31,
	2021		2020
Beginning balance	$	828,239	$	1,056,523



New advances	203,400		243,545
Sales of advances	(133)		(228)
Collections of advances and other	(244,942)		(277,585)

Net decrease in allowance for losses	114		2,552
Ending balance	$	786,678	$	1,024,807


Allowance for Losses	Three Months Ended March 31,
	2021		2020
Beginning balance	$	6,273	$	9,925
Provision	1,502		(761)
Net charge-offs and other	(1,616)		(1,791)
Ending balance	$	6,159	$	7,373

Mortgage Servicing

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

Mortgage Servicing


Note 7 – Mortgage Servicing


MSRs – Fair Value Measurement Method	Three Months Ended March 31,
	2021						2020
	Agency		Non-Agency		Total		Agency		Non-Agency		Total
Beginning balance	$	578,957	$	715,860	$	1,294,817	$	714,006	$	772,389	$	1,486,395


Sales and other transfers	—		—		—		—		(56)		(56)
Additions:
Recognized on the sale of residential mortgage loans	34,260		—		34,260		5,930		—		5,930
Purchase of MSRs	36,778		—		36,778		31,490		—		31,490
Servicing transfers and adjustments (1)	29		(557)		(528)		(263,630)		(893)		(264,523)
Changes in fair value:
Changes in valuation inputs or assumptions (2)	82,486		1,529		84,015		(166,532)		5,871		(160,661)
Realization of expected cash flows (2)	(23,847)		(25,278)		(49,125)		(27,037)		(21,310)		(48,347)
Ending balance	$	708,663	$	691,554	$	1,400,217	$	294,227	$	756,001	$	1,050,228

(1)Servicing transfers and adjustments include a $263.7 million derecognition of MSRs effective with the February 20, 2020 notice of termination of the subservicing agreement between NRZ and PMC. See Note 8 — Rights to MSRs for further information.

(2)Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the three months ended March 31,2020 in the table above has been recast to conform to current year disclosure, resulting in a $4.5 million loss reclassified from Realization of expected cash flows to Changes in valuation inputs or assumptions.

MSR UPB


	March 31, 2021		December 31, 2020		March 31, 2020






Owned MSRs	91,284,985		$	90,174,495	$	70,741,200
NRZ pledged MSRs (1)	61,841,181		64,061,198		70,914,910
Total MSR UPB	$	153,126,166	$	154,235,693	$	141,656,110

(1)MSRs subject to sale agreements with NRZ that do not meet sale accounting criteria. See Note 8 — Rights to MSRs.

We purchased MSRs with a UPB of $6.0 billion and $2.9 billion during the three months ended March 31, 2021 and 2020, respectively. We sold MSRs with a UPB of $7.2 million and $17.6 million during the three months ended March 31, 2021 and 2020, respectively, mostly to Freddie Mac under the Voluntary Partial Cancellation (VPC) program for delinquent loans.

At March 31, 2021, the S&P Global Ratings, Inc.’s (S&P’s) servicer ratings outlook for PMC is stable. On March 24, 2020, Fitch Ratings, Inc. (Fitch) placed all U.S Residential Mortgage Backed Securities (RMBS) servicer ratings on Outlook Negative, resulting from a rapidly evolving economic and operating environment due to the sudden impact of the COVID-19 virus. On April 28, 2021, Fitch affirmed PMC’s servicer ratings and revised its outlook from Negative to Stable as PMC’s performance in this evolving environment has not raised any elevated concerns. According to Fitch, the affirmation and stable outlook reflected PMC’s diligent response to the coronavirus pandemic and its impact on servicing operations, effective enterprise-wide risk environment and compliance management framework, satisfactory loan servicing performance metrics, special servicing expertise, and efficient servicing technology. The ratings also consider the financial condition of PMC’s parent, OFC.


Servicing Revenue	Three Months Ended March 31,
	2021		2020
Loan servicing and subservicing fees
Servicing	$	63,892	$	55,408
Subservicing	3,487		5,190
NRZ	80,385		119,669
	147,764		180,267
Ancillary income
Late charges	9,231		14,639
Custodial accounts (float earnings)	1,008		6,141
Loan collection fees	2,949		4,256

Recording fees	3,651		2,558
Other, net	7,135		3,622
	23,974		31,216
	$	171,738	$	211,483

Float balances (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers) are held in escrow by unaffiliated banks and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $2.4 billion, $1.7 billion and $1.9 billion at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

- Definition

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

+ References

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+ Details

Rights to MSRs

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

Rights to MSRs


Note 8 — Rights to MSRs

Ocwen and PMC 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 in 2012 and 2013, legal title was retained by Ocwen, causing the Rights to MSRs transactions to be accounted for as secured financings. In the case of the PMC 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 agreements, the transactions did not initially qualify for sale accounting treatment which resulted in such transactions being accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and related financing liability on our consolidated balance sheets, as well as the full amount of servicing revenue and changes in the fair value of the MSRs and related financing liability in our unaudited consolidated statements of operations. Changes in fair value of the Rights to MSRs are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations. Changes in fair value of the MSR related financing liability are reported in Pledged MSR liability expense.

The following tables present selected 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, 2021		December 31, 2020
MSRs, at fair value	$	550,364	$	566,952

Due from NRZ (Receivables): Advance funding, subservicing fees and reimbursable expenses	11,653		4,611


Due to NRZ (Other liabilities)	$	94,535	$	94,691

Financing liability - MSRs pledged, at fair value: Original Rights to MSRs Agreements	550,364		566,952


	Three Months Ended March 31,
	2021		2020
Statements of Operations
Servicing fees collected on behalf of NRZ	$	80,385	$	119,669
Less: Subservicing fee retained by Ocwen	23,991		29,331
Net servicing fees remitted to NRZ	56,394		90,338

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements (1)	(1,551)		(7,068)
2017 Agreements and New RMSR Agreements	—		(903)
PMC MSR Agreements	—		40,720
	(1,551)		32,749
Runoff and settlement:
Original Rights to MSRs Agreements (1)	17,616		15,741
2017 Agreements and New RMSR Agreements	—		25,142
PMC MSR Agreements	—		7,492
	17,616		48,375

Other	2,479		2,620

Pledged MSR liability expense	$	37,850	$	6,594

(1) Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the three months ended March 31,2020 in the table above has been recast to conform to current year disclosure, resulting in a $2.0 million gain reclassified from Runoff and settlement to Changes in fair value.


	Three Months Ended
	March 31, 2021		March 31, 2020
Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements		Original Rights to MSRs Agreements		2017 Agreements and New RMSR Agreements		PMC MSR Agreements		Total
Beginning Balance	$	566,952	$	603,046	$	35,445	$	312,102	$	950,593


Sales	—		—		—		(226)		(226)
Changes in fair value:
Original Rights to MSRs Agreements (2)	1,551		7,068		—		—		7,068
2017 Agreements and New RMSR Agreements	—		—		903		—		903
PMC MSR Agreements	—		—		—		(40,720)		(40,720)
Runoff and settlement:
Original Rights to MSRs Agreements (2)	(17,616)		(15,741)		—		—		(15,741)
2017 Agreements and New RMSR Agreements	—		—		(25,142)		—		(25,142)
PMC MSR Agreements	—		—		—		(7,492)		(7,492)
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements	—		—		—		(263,664)		(263,664)
Calls (1):
Original Rights to MSRs Agreements	(523)		(2,668)		—		—		(2,668)
2017 Agreements and New RMSR Agreements	—		—		(1,227)		—		(1,227)

Ending Balance	$	550,364	$	591,705	$	9,979	$	—	$	601,684

(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.

(2)Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the three months ended March 31,2020 in the table above has been recast to conform to current year disclosure, resulting in a $2.0 million gain reclassified from Runoff and settlement to Changes in fair value.

As of March 31, 2021, the UPB of loans serviced on behalf of NRZ comprised the following:


Ocwen servicer of record (MSR title retained by Ocwen) - Ocwen MSR (1) (2)	$	13,673,665
NRZ servicer of record (MSR title transferred to NRZ) - Ocwen MSR (1)	48,153,327
Ocwen subservicer	2,505,208
Total NRZ UPB	$	64,332,200

(1)The MSR sale transactions did not achieve sale accounting treatment.

(2)NRZ’s associated outstanding servicing advances were approximately $535.5 million as of March 31, 2021.

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, a Transfer Agreement and the Subservicing Agreement between Ocwen and New Residential Mortgage LLC (NRM), a subsidiary of NRZ, relating to non-agency loans (the NRM 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 ending July 2022 (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. Under the new agreements, following receipt of the required consents and transfer of the MSRs, Ocwen subservices the mortgage loans underlying the transferred MSRs pursuant to the 2017 Agreements and the August 2018 subservicing agreement with NewRez LLC dba Shellpoint Mortgage Servicing (Shellpoint) described below.

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 represented 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 expected to receive under the 2017 Agreements and the New RMSR Agreements. We recognized the cash received as a financing liability that we accounted for at fair value through the term of the original agreements (April 2020). Changes in fair value were recognized in Pledged MSR liability expense in the unaudited consolidated statements of operations.

On August 17, 2018, Ocwen and NRZ entered into certain amendments (i) to the New RMSR Agreements to include Shellpoint, a subsidiary of NRZ, as a party to which legal title to the MSRs could be transferred after related consents are received, (ii) to add a Subservicing Agreement between Ocwen and Shellpoint relating to non-agency loans (the Shellpoint Subservicing Agreement), (iii) to add an Agency Subservicing Agreement between Ocwen and NRM relating to agency loans (the Agency Subservicing Agreement), and (iv) to conform the New RMSR Agreements and the NRM Subservicing Agreement to certain of the terms of the Shellpoint Subservicing Agreement and the Agency Subservicing Agreement.

At any time during the Initial Term, NRZ may terminate the Subservicing Agreements and Servicing Addendum for convenience, subject to Ocwen’s right to receive a termination fee and 180 days’ notice. The termination fee is calculated as specified in the Subservicing Agreements and Servicing Addendum, and is a discounted percentage of the expected revenues that would be owed to Ocwen over the remaining contract term based on certain portfolio run-off assumptions.

Following the Initial Term, NRZ may extend the term of the Subservicing Agreements and Servicing Addendum for additional three-month periods by providing proper notice. Following the Initial Term, the Subservicing Agreements and Servicing Addendum can be cancelled by Ocwen on an annual basis. NRZ and Ocwen have the ability to terminate the Subservicing Agreements and Servicing Addendum for cause if certain specified conditions occur. The terminations must be terminations in whole (i.e., cover all the loans under the relevant Subservicing Agreement or Servicing Addendum) and not in part, except for limited circumstances specified in the agreements. In addition, if NRZ terminates any of the NRM or Shellpoint Subservicing Agreements or the Servicing Addendum for cause, the other agreements will also terminate automatically.

Under the terms of the Subservicing Agreements and Servicing Addendum, in addition to a base servicing fee, Ocwen receives certain ancillary fees, primarily late fees, loan modification fees and convenience or Speedpay® fees. We may also receive certain incentive fees or pay penalties tied to various contractual performance metrics. NRZ receives all float earnings and deferred servicing fees related to delinquent borrower payments, as well as being entitled to receive certain REO related income including REO referral commissions.

As of March 31, 2021, the UPB of MSRs subject to the Servicing Agreements and the New RMSR Agreements is $64.3 billion, including $13.7 billion for which title has not transferred to NRZ. As the third-party consents required for title to the MSRs to transfer were not obtained by May 31, 2019, the New RMSR Agreements set forth a process under which NRZ’s $13.7 billion Rights to MSRs may (i) be acquired by Ocwen at a price determined in accordance with the terms of the New RMSR Agreements, at the option of Ocwen, or (ii) be sold, together with Ocwen’s title to those MSRs, to a third party in accordance with the terms of the New RMSR Agreements, subject to an additional Ocwen option to acquire at a price based on the winning third-party bid rather than selling to the third party. If the Rights to MSRs are not transferred pursuant to these alternatives, then the Rights to MSRs will remain subject to the New RMSR Agreements.

In addition, as noted above, during the Initial Term, NRZ has the right to terminate the $13.7 billion New RMSR Agreements for convenience, in whole but not in part, subject to payment of a termination fee and 180 days’ notice. If NRZ exercises this termination right, NRZ has the option of seeking (i) the transfer of the MSRs through a sale to a third party of its

Rights to MSRs (together with a transfer of Ocwen’s title to those MSRs) or (ii) a substitute RMSR arrangement that substantially replicates the Rights to MSRs structure (a Substitute RMSR Arrangement) under which we would transfer title to the MSRs to a successor servicer and NRZ would continue to own the economic rights and obligations related to the MSRs. In the case of option (i), we have a purchase option as specified in the New RMSR Agreements. If NRZ is not able to sell the Rights to MSRs or establish a Substitute RMSR Arrangement with another servicer, NRZ has the right to revoke its termination notice and re-instate the Servicing Addendum or to establish a subservicing arrangement whereby the MSRs remaining subject to the New RMSR Agreements would be transferred to up to three subservicers who would subservice under Ocwen’s oversight. If such a subservicing arrangement were established, Ocwen would receive an oversight fee and reimbursement of expenses. We may also agree on alternative arrangements that are not contemplated under our existing agreements or that are variations of those contemplated under our existing agreements.

PMC Transactions

On December 28, 2016, PMC entered into an agreement to sell substantially all of its MSRs, and the related servicing advances, to NRM (the 2016 PMC Sale Agreement). In connection with this agreement, on December 28, 2016, PMC also entered into a subservicing agreement with NRZ which was subsequently amended and restated as of March 29, 2019 (together with the 2016 PMC Sale Agreement, the PMC MSR Agreements). The PMC subservicing agreement had an initial term of three years from the initial transaction date of June 16, 2017, subject to certain transfer and termination provisions. The MSR sale transaction did not originally achieve sale accounting treatment.

On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC servicing agreement. This termination was for convenience and not for cause, and provided for loan deboarding fees to be paid by NRZ. As the sale accounting criteria were met upon the notice of termination, the MSRs and the Rights to MSRs were derecognized from our balance sheet on February 20, 2020 without any gain or loss on derecognition. We serviced these loans until deboarding in October 2020 representing $34.2 billion of UPB, and accounted for them as a subservicing relationship. Accordingly, we recognized subservicing fees associated with the subservicing agreement subsequent to February 20, 2020 and have not reported any servicing fees collected on behalf of, and remitted to NRZ, any change in fair value, runoff and settlement in financing liability thereafter. On September 1, 2020, 133,718 loans representing $18.2 billion of UPB were deboarded and the remaining 136,500 loans representing $16.0 billion of UPB were deboarded on October 1, 2020.

Receivables

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Receivables


Note 9 – Receivables


	March 31, 2021		December 31, 2020
Servicing-related receivables:
Government-insured loan claims - Forward	$	101,598	$	103,058
Government-insured loan claims - Reverse	29,138		32,887

Due from custodial accounts	18,596		19,393
Subservicing fees and reimbursable expenses - Due from NRZ	11,653		4,611
Reimbursable expenses	11,360		4,970
Other	4,850		1,087
	177,195		166,006
Income taxes receivable	39,233		57,503

Other receivables	2,828		3,200
	219,256		226,709
Allowance for losses	(41,047)		(39,044)
	$	178,209	$	187,665

At March 31, 2021 and December 31, 2020, the allowance for losses primarily related to receivables of our Servicing business. The allowance for losses related to FHA- or VA-insured loans repurchased from Ginnie Mae guaranteed securitizations (government-insured claims) was $40.4 million and $38.3 million at March 31, 2021 and December 31, 2020, respectively. The government-insured claims that do not exceed HUD, VA or FHA insurance limits are guaranteed by the U.S. government.


Allowance for Losses - Government-Insured Loan Claims	Three Months Ended March 31,
	2021		2020
Beginning balance	$	38,339	$	56,868
Provision	4,958		5,072
Charge-offs and other, net	(2,860)		(3,837)
Ending balance	$	40,437	$	58,103

Other Assets

3 Months Ended

Mar. 31, 2021

Other Assets [Abstract]

Other Assets


Note 10 – Other Assets


	March 31, 2021		December 31, 2020
Contingent loan repurchase asset	$	399,126	$	480,221
Prepaid expenses	26,725		21,176
Derivatives, at fair value	15,483		23,246
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,173		15,173
REO	8,827		7,771
Prepaid lender fees, net	7,071		9,556
Deferred tax asset, net	3,634		3,543
Security deposits	2,072		2,222

Mortgage backed securities, at fair value	1,613		2,019




Other	5,147		6,556
	$	484,871	$	571,483

Borrowings

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Borrowings


Note 11 – Borrowings


Advance Match Funded Liabilities		Borrowing Capacity			March 31, 2021					December 31, 2020
Borrowing Type	Maturity (1)	Amort. Date (1)	Total		Available (2)			Weighted Average Interest Rate		Balance			Weighted Average Interest Rate		Balance














Advance Receivables Backed Notes - Series 2015-VF5 (3)	Jun. 2051	Jun. 2021	$	250,000	$	190,479		4.22	%	$	59,521		4.26	%	$	89,396




















Advance Receivables Backed Notes, Series 2020-T1 (4)	Aug. 2052	Aug. 2022	475,000		—			1.49	%	475,000			1.49	%	475,000
Total Ocwen Master Advance Receivables Trust (OMART)		725,000	190,479		1.79		%	534,521		1.93		%	564,396









Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)	Jun. 2051	Jun. 2021	70,000		54,084			3.22	%	15,916			3.26	%	16,892





			$	795,000	$	244,563		1.83	%	$	550,437		1.96	%	$	581,288

(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 ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing 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 sufficient eligible collateral to pledge. At March 31, 2021, none of the available borrowing capacity of the OMART and OFAF advance financing notes could be used based on the amount of eligible collateral.

(3)Interest is computed based on the lender’s cost of funds plus a margin of 400 bps.

(4)The weighted average rate of the notes at March 31, 2021 is 1.49%, with rates on the individual classes of notes ranging from 1.28% to 5.42%.

(5)Interest is computed based on the lender’s cost of funds plus a margin of 300 bps.


Financing Liabilities				Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Maturity	March 31, 2021		December 31, 2020
HMBS-related borrowings, at fair value (1)	Loans held for investment	1ML + 245 bps (1)	(1)	$	6,778,195	$	6,772,711
Other financing liabilities, at fair value
MSRs pledged (Rights to MSRs), at fair value:
Original Rights to MSRs Agreements	MSRs	(2)	(2)	550,364		566,952





Financing liability - Owed to securitization investors, at fair value:

Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (3)	Loans held for investment	4.25% - 5.75% fixed; 1ML plus 0.45% variable	Oct. 2033	8,820		9,770


Total Other financing liabilities, at fair value				559,184		576,722

				$	7,337,379	$	7,349,433

(1)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS which did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. Interest rate is a weighted average based on the pass-through rate of the loans. See Note 2 – Securitizations and Variable Interest Entities.

(2)This pledged MSR liability is recognized due to the accounting treatment of MSR sale transactions with NRZ which did not qualify as sales for accounting purposes. 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 financing liability, which is recorded at fair value consistent with the related MSRs. This financing liability has no contractual maturity or repayment schedule. See Note 8 — Rights to MSRs for additional information.

(3)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 2 – Securitizations and Variable Interest Entities.

Other Secured Borrowings

Available Borrowing Capacity

Outstanding Balance

Borrowing Type

Collateral

Interest Rate (1)

Maturity

Uncommitted

Committed (2)

March 31, 2021

December 31, 2020

SSTL (3)

(3)

1-Month Euro-dollar rate + 600 bps with a Eurodollar floor of 100 bps (3)

May 2022 (3)

—

185,000


Other Secured Borrowings				Available Borrowing Capacity		Outstanding Balance
Borrowing Type	Collateral	Interest Rate (1)	Maturity	Uncommitted	Committed (2)	March 31, 2021	December 31, 2020
Master repurchase agreement (4)	Loans held for sale (LHFS)	1ML + 220 - 375 bps	June 2022	85,109	—	189,891	195,773
Mortgage warehouse agreement (5)	LHFS (reverse)	Greater of 1ML + 250 bps or 3.50%	August 2021	—	1,000	—	—
Master repurchase agreement (6)	LHFS (forward and reverse)	1ML + 325 bps forward; 1ML + 350 bps reverse	Nov. 2021	50,000	38,660	161,340	80,081
Master repurchase agreement (7)	N/A	SOFR + 190 bps; SOFR floor 25 bps	N/A	50,000	—	—	—
Participation agreement (8)	LHFS	(8)	June 2021	120,000	—	—	—
Master repurchase agreement (8)	LHFS	(8)	June 2021	—	49,231	40,769	63,281
Master repurchase agreement	LHFS	1 ML + 250 bps	June 2021	—	1,000	—	—
Mortgage warehouse agreement (9)	LHFS	1ML + 350 bps; Floor 5.25%	Jan. 2022	—	35,042	14,958	11,715
Mortgage warehouse agreement (10)	LHFS (reverse)	1ML + 250 bps; 3.25% floor	Oct. 2021	519	—	99,481	73,134
Mortgage warehouse agreement (11)	LHFS	(11)	N/A	48,671	—	51,329	27,729
Master repurchase agreement (12)	LHFS	1ML + 150 - 200 bps; Floor 250 bps	N/A	—	—	51,664	—
Total mortgage loan warehouse facilities		2.93% (17)		354,299	124,933	609,432	451,713


Other Secured Borrowings				Available Borrowing Capacity					Outstanding Balance
Borrowing Type	Collateral	Interest Rate (1)	Maturity	Uncommitted		Committed (2)			March 31, 2021			December 31, 2020

Agency MSR financing facility (13)	MSRs, Advances	1ML + 450 bps	June 2021	—		—			250,000			210,755
Ginnie Mae MSR financing facility (14)	MSRs, Advances	1ML + 450 bps; 1ML floor 0.50%	Dec. 2021	25,216		—			99,784			112,022
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (15)	MSRs	5.07%	Nov. 2024	—		—			62,297			68,313
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (16)	MSRs	(16)	Feb. 2028	—		—			45,273			47,476
Total MSR financing facilities		4.77% (17)		25,216		—			457,354			438,566
				$	379,515	$	124,933		1,066,786			1,075,279
Unamortized debt issuance costs - SSTL and PLS Notes (18)									(764)			(5,761)
Discount - SSTL									—			(357)
									$	1,066,022		$	1,069,161

Weighted average interest rate						3.68		%	4.55		%

(1)1ML was 0.11% and 0.14% at March 31, 2021 and December 31, 2020, respectively.

(2)Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, none of the available borrowing capacity could be used at March 31, 2021 based on the amount of eligible collateral that could be pledged.

(3)On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance. The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million.

(4)The maximum borrowing under this agreement is $275.0 million, of which $160.0 million is available on a committed basis and the remainder is available at the discretion of the lender. On March 31, 2021, we renewed the facility and the maturity date was extended to June 30, 2022.

(5)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)The lender provides financing for up to $50.0 million at the discretion of the lender. The agreement has no stated maturity date. Interest on this facility is based on the Secured Overnight Financing Rate (SOFR).

(8)This facility is comprised of two lines, a $120.0 million uncommitted participation agreement and a $90.0 million committed repurchase agreement. The agreements allow the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transactions do not qualify for sale accounting treatment and are accounted for as secured borrowings. The lender earns the stated interest rate of the underlying mortgage loans less 35 bps, with a floor of 3.50% for new originations and 3.75% for Ginnie Mae modifications, while the loans are financed under both the participation and repurchase agreements.

(9)Under this agreement, the lender provides financing for up to $50.0 million on a committed basis. On January 15, 2021, the maturity date of this facility was extended to January 15, 2022.

(10)Under this agreement, the lender provides financing for up to $100.0 million on an uncommitted basis. On February 1, 2021, the borrowing capacity was temporarily increased from $100.0 million to $150.0 million until February 28, 2021 when it was reduced to $100.0 million. On March 30, 2021, the borrowing capacity was temporarily increased to $150.0 million effective April 1, 2021 until May 30, 2021.

(11)This facility provides up to $100.0 million of uncommitted borrowing capacity. The agreement has no stated maturity date, however each transaction has a maximum duration of four years. The cost of this line is set at each transaction date and is based on the interest rate on the collateral.

(12)We entered into a repurchase agreement on March 29, 2021 which provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 30-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are sold to a trust which trust issues a trust certificate that is pledged as the collateral for the borrowings.

(13)PMC’s obligations under this facility are secured by a lien on the related MSRs. Ocwen guarantees the obligations of PMC under this facility. The maximum amount which we may borrow pursuant to the repurchase agreements is $250.0 million on a committed basis. We also pledged the membership interest of the depositor for our OMART advance financing facility as additional collateral to this facility. See Note 2 – Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements

under the terms of our MSR financing facilities. Declines in fair value of our MSRs due to declines in market interest rates, assumption updates or other factors require that we provide additional collateral to our lenders under these facilities. On March 31, 2021, the facility was upsized to $350.0 million, the interest rate reduced to 1ML plus 325bps, and the maturity was renewed to June 30, 2022. These changes became effective on April 15, 2021.

(14)PMC’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs. Ocwen guarantees the obligations of PMC under the facility. The borrowing capacity is $125.0 million on an uncommitted basis. See (13) above regarding daily margining requirements.

(15)PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Ocwen guarantees the obligations of PLS Issuer under the facility. The Class A PLS Notes issued pursuant to the credit agreement had an initial principal amount of $100.0 million and amortize in accordance with a pre-determined schedule subject to modification under certain events. See Note 2 – Securitizations and Variable Interest Entities for additional information. See (13) above regarding daily margining requirements.

(16)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.

(17)Weighted average interest rate at March 31, 2021, excluding the effect of debt issuance costs and discount.

(18)Balance at December 31, 2020 includes $4.9 million related to SSTL.


Senior Notes	Interest Rate	Maturity	Outstanding Balance
			March 31, 2021		December 31, 2020

PMC Senior Secured Notes	7.875%	March 2026	$	400,000	$	—
OFC Senior Secured Notes (1)	12% paid in cash or 13.25% paid-in-kind (see below)	March 2027	199,500		—
PHH Senior Notes	6.375%	August 2021	—		21,543
PMC Senior Secured Notes	8.375%	November 2022	—		291,509
Principal balance			599,500		313,052
Discount (2)
PMC Senior Secured Notes			(2,025)		—
OFC Senior Secured Notes (1)			(40,707)		—
			(42,732)		—
Unamortized debt issuance costs (2)
PMC Senior Secured Notes			(6,598)		(968)
OFC Senior Secured Notes			(7,243)		—
			(13,841)		(968)
Fair value adjustments			—		(186)
			$	542,927	$	311,898

(1)At date of issuance on March 4, 2021, the discount included $24.5 million original issue discount (OID) on the OFC Senior Secured Notes and $16.5 million of additional discount related to the concurrent issuance of warrants. See below for additional information.

(2)The discount and debt issuance costs are being amortized to interest expense through the maturity of the respective notes.

Redemption of 6.375% Senior Unsecured Notes due 2021 and 8.375% Senior Secured Notes due 2022

On March 4, 2021, we redeemed all of PHH’s outstanding 6.375% Senior Notes due August 2021 at a price of 100% of the principal amount, plus accrued and unpaid interest, and all of PMC’s 8.375% Senior Secured Notes due November 2022 at a price of 102.094% of the principal amount, plus accrued and unpaid interest. The redemption resulted in our recognition of a $7.1 million loss on debt extinguishment.

Issuance of 7.875% Senior Secured Notes due 2026

On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of 7.875% senior secured notes due March 15, 2026 (the PMC Senior Secured Notes) at a discount of $2.1 million. The PMC Senior Secured Notes are guaranteed on a senior secured basis by Ocwen and PHH (together, the Guarantors) and were sold in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act).

Interest on the PMC Senior Secured Notes accrues at a rate of 7.875% per annum and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021.

On or after March 15, 2023, PMC may redeem some or all of the PMC Senior Secured Notes at its option at the following redemption prices, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date if redeemed during the 12-month period beginning on March 15th of the years indicated below:


Redemption Year	Redemption Price
2023	103.938	%
2024	101.969
2025 and thereafter	100.000

Prior to March 15, 2023, PMC may, on any one or more occasions, redeem some or all of the PMC Senior Secured Notes at its option at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus a “make-whole” premium equal to the greater of (i) 1.0% of the then outstanding principal amount of such note and (ii) the excess of (1) the present value at the redemption date of the sum of (A) the redemption price of the note at March 15, 2023 (such redemption price is set forth in the table above) plus (B) all required interest payments due on such notes through March 15, 2023 (excluding accrued but unpaid interest), such present value to be computed using a discount rate equal to the Treasury Rate (as defined in the Indenture) as of such redemption date plus 50 basis points; over (2) the then outstanding principal amount of such notes, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date.

In addition, on or prior to March 15, 2023, PMC may also redeem up to 35.0% of the principal amount of all of the PMC Senior Secured Notes originally issued under the Indenture (including any additional PMC Senior Secured Notes issued under the Indenture) using the net proceeds of certain equity offerings at a redemption price equal to 107.875% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of redemption (subject to the rights of holders of notes on the relevant regular record date to receive interest due on the relevant interest payment date that is on or prior to the applicable date of redemption); provided that: (i) at least 65.0% of the principal amount of all PMC Senior Secured Notes issued under the Indenture remains outstanding immediately after any such redemption; and (ii) PMC makes such redemption not more than 120 days after the consummation of any such equity offering.

The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH and its restricted subsidiaries (including PMC) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Ocwen’s affiliates.

Issuance of OFC Senior Secured Notes

On March 4, 2021, Ocwen completed the private placement of $199.5 million aggregate principal amount of senior secured notes (the OFC Senior Secured Notes) with an OID of $24.5 million to certain special purpose entities owned by funds and accounts managed by Oaktree Capital Management, L.P. (the Oaktree Investors). The OFC Senior Secured Notes were issued pursuant to a Note and Warrant Purchase Agreement, dated February 9, 2021, between Ocwen and the Oaktree Investors. Concurrent with the issuance of the OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors warrants to purchase 1,184,768 shares of its common stock at an exercise price of $26.82 per share, subject to antidilution adjustments. On March 4, 2021, the $175.0 million of total proceeds, net of OID, was allocated $158.5 million to the OFC Senior Secured Notes and $16.5 million to the warrants on a relative fair value basis. The warrants are accounted for as equity instruments and reported as Additional Paid-in Capital in our consolidated balance sheet, net of $0.8 million of allocated debt issuance costs. See Note 13 – Equity for additional information regarding the warrants.

The OFC Senior Secured Notes mature on March 4, 2027 with no amortization of principal. Interest is payable quarterly in arrears on the last business day of each March, June, September and December and accrues at the rate of 12% per annum to the extent interest is paid in cash or 13.25% per annum to the extent interest is “paid-in-kind” through an increase in the principal amount or the issuance of additional notes (PIK Interest). Prior to March 4, 2022, all of the interest on the OFC Senior Secured Notes may, at our option, be paid as PIK Interest. On or after March 4, 2022, a minimum amount of interest will be required to be paid in cash equal to the lesser of (i) 7% per annum of the outstanding principal amount of the OFC Senior Secured Notes and (ii) the total amount of unrestricted cash of Ocwen and its subsidiaries less the greater of $125.0 million and the minimum liquidity amounts required by any agency.

The OFC Senior Secured Notes are solely the obligation of Ocwen. The OFC Senior Secured Notes are secured by a pledge of substantially all of the assets of Ocwen, including a pledge of the equity of Ocwen’s subsidiaries held directly by Ocwen. The lien on Ocwen’s assets securing the OFC Senior Secured Notes is junior to the lien securing Ocwen’s guarantee of the 7.875% PMC Senior Secured Notes described above. The OFC Senior Secured Notes are not guaranteed by any of Ocwen’s subsidiaries nor are they secured by a pledge or lien on any assets of Ocwen’s subsidiaries.

Prior to March 4, 2026, we are permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par, plus a make-whole premium, plus accrued and unpaid interest. On and after March 4, 2026, we

will be permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par plus accrued and unpaid interest.

The OFC Senior Secured Notes have two financial maintenance covenants: (1) a minimum book value of stockholders’ equity of not less than $275.0 million and (2) a minimum amount of unrestricted cash of not less than $50.0 million at any time. The OFC Senior Secured Notes also have affirmative and negative covenants and events of default that are customary for debt securities of this type.

Credit Ratings

Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligation. At March 31, 2021, the S&P issuer credit rating for Ocwen was “B-”. On February 24, 2021, concurrent with the launch of the PMC bond offering, S&P reaffirmed the ratings at B- and changed the outlook from Negative to Stable. Moody’s reaffirmed their ratings of Caa1 and revised their outlook to Stable from Negative on February 24, 2021. 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 affirmative and negative covenants. Collectively, these covenants include:

•Financial covenants, including, but not limited to, specified levels of net worth and liquidity;

•Covenants to operate in material compliance with applicable laws;

•Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Ocwen and its subsidiaries, 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 other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Ocwen and its subsidiaries or of PHH or PMC and their respective subsidiaries, creating liens on assets to secure debt, and 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.

As of March 31, 2021, the most restrictive consolidated net worth requirement contained in our debt agreements is a minimum of $275.0 million book value of consolidated common stockholders’ equity, as defined, under the Note Purchase Agreement for the OFC Senior Secured Notes. The most restrictive liquidity requirement under our debt agreements is for a minimum of $125.0 million in consolidated liquidity, as defined, under certain of our advance match funded debt and mortgage warehouse agreements.

We believe we were in compliance with all of the covenants in our debt agreements as of the date of these unaudited consolidated financial statements.

Other Liabilities

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Other Liabilities


Note 12 – Other Liabilities


	March 31, 2021		December 31, 2020
Contingent loan repurchase liability	$	399,126	$	480,221
Due to NRZ - Advance collections, servicing fees and other	94,535		94,691
Other accrued expenses	63,648		87,898
Liability for indemnification obligations	43,289		41,920
Accrued legal fees and settlements	40,356		38,932
Servicing-related obligations	39,930		35,237
Checks held for escheat	39,842		35,654
Liability for uncertain tax positions	24,386		16,188
Lease liability	23,922		27,393
MSR purchase price holdback	16,140		20,923
Derivatives, at fair value	10,012		4,638
Liability for unfunded India gratuity plan	5,797		6,051
Accrued interest payable	5,502		4,915
Liability for unfunded pension obligation	12,587		12,662



Other	15,941		16,652
	$	835,013	$	923,975

Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Equity

Note 13 – Equity

On February 3, 2020, Ocwen’s Board of Directors authorized a share repurchase program for an aggregate amount of up to $5.0 million of Ocwen’s issued and outstanding shares of common stock. During the three months ended March 31, 2020, we completed the repurchase of 377,484 shares of common stock in the open market under this program at prevailing market prices for a total purchase price of $4.5 million for an average price paid per share of $11.90. In addition, Ocwen paid $0.1 million in commissions. The repurchased shares were formally retired as of March 31, 2020. No additional shares were repurchased prior to the program’s expiration on February 3, 2021.

Effective August 13, 2020, Ocwen implemented a one-for-15 reverse stock split of all outstanding shares of its common stock and reduced the number of authorized shares of common stock by the same proportion. Shareholders entitled to receive fractional shares of common stock received shares rounded up to the nearest whole share in lieu of such fractional shares, with an aggregate 4,692 additional shares issued. The number of outstanding shares was reduced from 130,013,696 to 8,672,272 and the authorized shares from 200,000,000 to 13,333,333 effective August 13, 2020, with giving effect to the rounding up of fractional shares. The $0.01 par value per share of common stock remained unchanged.

As disclosed in Note 11 – Borrowings, concurrent with the issuance of the OFC Senior Secured Notes on March 4, 2021, Ocwen issued to Oaktree warrants to purchase 1,184,768 shares of its common stock (which amount, upon exercise of the warrants, would be equal to 12% of Ocwen’s outstanding common stock as of the date of issuance of the warrants) at an exercise price of $26.82 per share, subject to antidilution adjustments. The warrants may be exercised at any time from the date of issuance through March 4, 2027. In lieu of a cash exercise price, the holder of the warrants may elect a net share exercise whereby the number of shares of common stock received upon exercise is reduced by the number of shares equivalent to the exercise price based on the fair market value of the stock, as defined. The warrants may not be exercised if Oaktree’s ownership of Ocwen’s common stock would exceed 19.9% without prior shareholder approval, or 9.9% without prior regulatory approvals. If these limitations apply, Oaktree would have the right to exercise the warrants to purchase shares of Ocwen non-voting perpetual preferred stock convertible into one share of Ocwen common stock. While the warrants will not be registered, we entered into a registration rights agreement with Oaktree pursuant to which we will register for resale the shares of common stock issuable upon exercise of the warrants within 18 months after March 4, 2021. On March 4, 2021, the $16.5 million allocated fair value of the warrants was reported as Additional Paid-in Capital in our consolidated balance sheet, net of allocated debt issuance costs of $0.8 million.

Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities


Note 14 – Derivative Financial Instruments and Hedging Activities

The table below summarizes the fair value, notional and maturity of derivative instruments. 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 as of or during the three months ended March 31, 2021 and 2020.


	March 31, 2021					December 31, 2020
	Maturities	Notional		Fair value		Maturities	Notional		Fair value
Derivative Assets
Forward sales of Reverse loans	Apr. 2021 to May .2021	$	70,000	$	100	Jan. 2021	$	30,000	$	34
Forward loans IRLCs	Jul. 2021	916,930		13,622		Apr. 2021	619,713		22,224
Reverse loans IRLCs	Apr. 2021	50,197		967		Jan. 2021	11,692		482
TBA forward MBS trades	Apr. 2021 to May .2021	590,000		794		N/A	—		—
Interest rate swap futures	N/A	—		—		Mar. 2021	593,500		504
Other	N/A	—		—			—		2
Total		$	1,627,127	$	15,483		$	1,254,905	$	23,246

Derivative Liabilities
Forward sales of Reverse loans	Apr. 2021	$	35,000	$	(152)	Jan. 2021	$	20,000	$	(84)
TBA forward MBS trades	Apr. 2021	10,000		(314)		Jan. 2021	400,000		(4,554)
Interest rate swap futures	Jun. 2021	1,400,000		(9,532)		N/A	—		—

Other	N/A	—		(14)		N/A	—		—
Total		$	1,445,000	$	(10,012)		$	420,000	$	(4,638)

The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations.

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

Gain / (Loss)

Amount

Financial Statement Line

Amount

Financial Statement Line

Derivative Assets (Liabilities)

Forward loans IRLCs

(8,602)

Gain on loans held for sale, net

5,714

Gain on loans held for sale, net

Reverse loans IRLCs

485

Reverse mortgage revenue, net

(115)

Reverse mortgage revenue, net

Interest rate swap futures and TBA forward MBS trades

—

Gain on loans held for sale, net (Economic hedge)

(7,192)

Gain on loans held for sale, net (Economic hedge)

Interest rate swap futures and TBA forward MBS trades

(13,682)

MSR valuation adjustments, net

35,291

MSR valuation adjustments, net

Forward sales of Reverse loans

(2)

Reverse mortgage revenue, net

(143)

Reverse mortgage revenue, net

Other

(16)

Gain on loans held for sale, net

—

Gain on loans held for sale, net

Total

(21,816)

33,555

Interest Rate Risk

MSR Hedging

MSRs are carried at fair value with changes in fair value being recorded in earnings in the period in which the changes occur. The fair value of MSRs is subject to changes in market interest rates and prepayment speeds, among other factors. Management implemented a hedging strategy to partially offset the changes in fair value of our net MSR portfolio to interest rate changes. We define our net MSR portfolio exposure as follows:

•our more interest rate-sensitive Agency MSR portfolio,

•less the Agency MSRs subject to our agreements with NRZ (See Note 8 — Rights to MSRs),

•less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings, and

•less the net value of our held for sale loan portfolio and IRLCs (pipeline).

In the first quarter of 2021, we have included in our net MSR portfolio exposure to be hedged the exposure related to expected future MSR bulk acquisitions subject to letters of intent, representing approximately $68 billion of UPB. The expected future MSR bulk acquisitions subject to non-binding letters of intent were not recognized as an asset or liability in our financial statements as of March 31, 2021.

We determine and monitor daily a hedge coverage based on the duration and interest rate sensitivity measures of our net MSR portfolio exposure, considering market and liquidity conditions. At March 31, 2021, our hedging strategy provides for a partial coverage of our net MSR portfolio exposure.

We use forward trades of MBS or Agency TBAs with different banking counterparties and exchange-traded interest rate swap futures as hedging instruments. These derivative instruments are not designated as accounting hedges. TBAs, or To-Be-Announced securities are actively traded, forward contracts to purchase or sell Agency MBS on a specific future date. Interest rate swap futures are exchange-traded and centrally cleared. We report changes in fair value of these derivative instruments in MSR valuation adjustments, net in our unaudited consolidated statements of operations.

The TBAs and interest rate swap futures are subject to margin requirements. Ocwen may be required to post or may be entitled to receive cash collateral with its counterparties, based on daily value changes of the instruments. Changes in market factors, including interest rates, and our credit rating could require us to post additional cash collateral and could have a material adverse impact on our financial condition and liquidity.

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 had previously been economically hedged with freestanding derivatives such as forward contracts. Beginning in September 2019, this exposure is not individually hedged, but rather used as an offset to our MSR exposure and managed as part of our MSR hedging strategy described above.

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 had previously entered into forward MBS trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward MBS trades were primarily used to fix the forward sales price that would be realized upon the sale of mortgage loans into the secondary market. Beginning in September 2019, this exposure is not individually hedged, but rather used as an offset to our MSR exposure and managed as part of our MSR hedging strategy described above.

Advance Match Funded Liabilities

When required by our advance financing arrangements, we purchase 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.

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. Depending on the magnitude and risk of our positions we may enter into any forward

exchange contracts to hedge against the effect of changes in the value of the India Rupee or Philippine Peso. We currently do not hedge our foreign currency exposure with derivative instruments. Foreign currency remeasurement exchange gains (losses) were $0.2 million and $(0.9) million during the three months ended March 31, 2021 and 2020, respectively, and are reported in Other, net in the consolidated statements of operations.

Interest Expense

3 Months Ended

Mar. 31, 2021

Other Income and Expenses [Abstract]

Interest Expense


Note 15 – Interest Expense


	Three Months Ended March 31,
	2021		2020
Senior notes	$	9,495	$	6,661
Mortgage loan warehouse facilities	5,283		3,460
MSR financing facilities	4,572		5,037
Advance match funded liabilities	4,496		5,665
SSTL	2,957		6,794

Other	1,649		2,365
	$	28,452	$	29,982

Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 – Income Taxes

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act includes several significant business tax provisions that, among other things, temporarily repealed the taxable income limitation for certain net operating losses (NOL) and allows businesses to carry back NOLs arising in 2018, 2019, and 2020 tax years to the five prior tax years, accelerated refunds of previously generated corporate Alternative Minimum Tax (AMT) credits, and adjusted the business interest expense limitation under section 163(j) from 30% to 50% of Adjusted Taxable Income (ATI) for 2019 and 2020 tax years.

Based on information available at the time, we estimated that modifications to the tax rules for the carryback of NOLs and business interest expense limitations would result in U.S. and USVI federal net tax refunds of approximately $62.9 million and $1.9 million, respectively, and as such we recognized an income tax benefit of $64.8 million in our unaudited consolidated financial statements for the three months ended March 31, 2020.

The income tax benefit recognized represents the release of valuation allowances against certain NOL and Section 163(j) deferred tax assets that were realized as a result of certain provisions of the CARES Act as well as permanent income tax benefit related to the carryback of NOLs created in a tax year that was subject to U.S. federal tax at 21% to a tax year subject to tax at 35%.

We recognized income tax expense, exclusive of the impact of the CARES Act recognized in 2020, of $3.1 million and $2.9 million for the three months ended March 31, 2021 and 2020, respectively, due to the mix of earnings among different tax jurisdictions with different statutory tax rates. Under our transfer pricing agreements, our operations in India, Philippines, and USVI are compensated on a cost-plus basis for the services they provide, such that even when we incur a consolidated pre-tax loss from continuing operations these foreign operations generate taxable income, which is subject to statutory tax rates in these jurisdictions that are significantly higher than the U.S. statutory rate of 21%.

- Definition

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

+ References + Details

Basic and Diluted Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2021

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 restricted stock awards, stock options and warrants as determined using the treasury stock method. For the three months ended March 31, 2020, 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,
	2021		2020
Basic earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589

Basic earnings (loss) per share	$	0.98	$	(2.84)

Diluted earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589
Effect of dilutive elements
Common stock warrants	34,309		—

Common stock awards	155,174		—
Dilutive weighted average shares of common stock	8,877,492		8,990,589

Diluted earnings (loss) per share	$	0.96	$	(2.84)

Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive (1)	180,225		249,188
Market-based (2)	157,581		125,397

(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.

As disclosed in Note 13 – Equity, Ocwen implemented a reverse stock split in a ratio of one-for-15 effective on August 13, 2020. The above computations of earnings (loss) per share reflect the number of common stock shares after consideration for the reverse stock split. All common share and loss per share amounts have been adjusted retrospectively to give effect to the reverse stock split as if it occurred at the beginning of the first period presented.

Business Segment Reporting

3 Months Ended

Mar. 31, 2021

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. Our reportable business segments consist of Servicing, Originations, and Corporate Items and Other. During the three months ended March 31, 2021, there have been no changes to our business segments as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.

Effective with the fourth quarter of 2020, we have reported the results of Reverse Servicing within the Servicing segment. Previously, the Reverse Servicing business was included in the reported results of the Originations segment. This alignment of our business segments is consistent with a change in the management of the business and a change in the internal management reporting to the chief operating decision maker. Segment results for 2020 have been recast to conform to the current segment presentation. Reverse Servicing generated Revenue and Income before income taxes of $16.0 million and $12.2 million, respectively, for the three months ended March 31, 2020. Reverse Servicing assets consist primarily of securitized Loans held for investment - Reverse Mortgages.

Revenues and expenses directly associated with each respective business segments are included in determining its results of operations. We allocate certain expenses incurred by corporate support services that are not directly attributable to a segment to each business segment. We allocate overhead costs incurred by corporate support services to the Servicing and Originations segments which incorporates the utilization of various measurements primarily based on time studies, personnel volumes and service consumption levels. Support services costs not allocated to the Servicing and Originations segments are retained in the Corporate Items and Other segment along with certain other costs including certain litigation and settlement related expenses or recoveries, costs related to our re-engineering initiatives, and other costs related to operating as a public company. We allocate a portion of interest income to each business segment, including interest earned on cash balances.

Interest expense on direct asset-backed financings are recorded in the respective Servicing and Originations segments. Beginning in the third quarter of 2020, we began allocating interest expense on corporate debt, including the SSTL and Senior Notes, used to fund servicing advances and other servicing assets from Corporate Items and Other to Servicing. Amortization of debt issuance costs and discount are excluded from the interest expense allocation. The interest expense related to the corporate debt has been allocated to the Servicing segment for periods prior to the third quarter of 2020 to conform to the current period presentation. The interest expense allocation is $10.5 million for the three months ended March 31, 2020.

As a result of our risk management strategy to hedge the interest rate risk of our net MSR portfolio, the fair value changes of third-party derivative instruments are reported within MSR valuation adjustments, net. For management segment reporting purposes, we establish inter-segment derivative instruments to transfer the risks and allocate the associated fair value changes of derivatives between Servicing and Originations, and specifically between MSR valuation adjustments, net and Gain on loans held for sale, net (Gain/loss on economic hedge instruments). The inter-segment derivative fair value changes are eliminated in the consolidated financial statements in the Corporate Elimination column in the table below.

Financial information for our segments is as follows:


	Three Months Ended March 31, 2021
Results of Operations	Servicing		Originations			Corporate Items and Other		Corporate Eliminations (1)		Business Segments Consolidated
Servicing and subservicing fees	$	169,354	$	2,384		$	—	$	—	$	171,738
Reverse mortgage revenue, net	2,035		19,791			—		—		21,826
Gain on loans held for sale, net	3,521		37,593			—		(35,393)		5,721
Other revenue, net	502		6,518			1,289		—		8,309
Revenue	175,412		66,286			1,289		(35,393)		207,594

MSR valuation adjustments, net	(22,690)		8,505			—		35,393		21,208

Operating expenses	82,753		37,328			19,548		—		139,629

Other (expense) income:
Interest income	1,257		2,566			113		—		3,936
Interest expense	(20,309)		(3,552)			(4,591)		—		(28,452)
Pledged MSR liability expense	(37,883)		—			33		—		(37,850)
Loss on extinguishment of debt	—		—			(15,458)		—		(15,458)


Other	452		50			(212)		—		290
Other expense, net	(56,483)		(936)			(20,115)		—		(77,534)

Income (loss) before income taxes	$	13,486	$	36,527		$	(38,374)	$	—	$	11,639

	Three Months Ended March 31, 2020
Results of Operations	Servicing		Originations			Corporate Items and Other		Corporate Eliminations (1)		Business Segments Consolidated
Servicing and subservicing fees	$	211,469	$	1		$	13	$	—	$	211,483
Reverse mortgage revenue, net	16,673		6,124			—		—		22,797
Gain on loans held for sale, net	229		13,102			—		—		13,331
Other revenue, net	1,159		2,445		—	2,627		—		6,231
Revenue	229,530		21,672			2,640		—		253,842

MSR valuation adjustments, net	(174,448)		328			—		—		(174,120)

Operating expenses	84,479		22,952			29,783		—		137,214

Other (expense) income:
Interest income	2,529		1,623			1,243		—		5,395
Interest expense	(24,581)		(2,433)			(2,968)		—		(29,982)
Pledged MSR liability expense	(6,623)		—			29		—		(6,594)



Other	3,655		(22)			(2,305)		—		1,328
Other expense, net	(25,020)		(832)			(4,001)		—		(29,853)

Loss before income taxes	$	(54,417)	$	(1,784)		$	(31,144)	$	—	$	(87,345)

(1)Corporate Eliminations for the three months ended March 31, 2021 includes an inter-segment derivatives elimination of $35.4 million with a corresponding offset in MSR valuation adjustments, net; nil for the three months ended March 31, 2020.


Total Assets	Servicing		Originations		Corporate Items and Other		Business Segments Consolidated
March 31, 2021	$	9,869,673	$	525,610	$	376,505	$	10,771,788

December 31, 2020	$	9,847,603	$	379,233	$	424,291	$	10,651,127

March 31, 2020	$	9,321,628	$	205,198	$	459,198	$	9,986,024


Depreciation and Amortization Expense	Servicing		Originations		Corporate Items and Other		Business Segments Consolidated
Three months ended March 31, 2021
Depreciation expense	$	209	$	24	$	2,626	$	2,859

Amortization of debt issuance costs and discount	129		—		1,495		1,624

Three months ended March 31, 2020
Depreciation expense	$	215	$	37	$	3,745	$	3,997

Amortization of debt issuance costs and discount	112		—		2,550		2,662

- Definition

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

+ References

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+ Details

Regulatory Requirements

3 Months Ended

Mar. 31, 2021

Brokers and Dealers [Abstract]

Regulatory Requirements


Note 19 – Regulatory Requirements

Our business is subject to extensive regulation and supervision 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.

We must comply with a large number of federal, state and local consumer protection and other laws and regulations, including, among others, the CARES Act, 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 (FDCPA), 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 and local laws, and federal and local bankruptcy rules. These laws and regulations apply to all facets of our business, including, but not limited to, licensing, loan originations, consumer disclosures, default servicing and collections, foreclosure, filing of claims, registration of vacant or foreclosed properties, handling of escrow accounts, payment application, interest rate adjustments, assessment of fees, loss mitigation, use of credit reports, and safeguarding of non-public personally identifiable information about our customers. These complex requirements can and do change as laws and regulations are enacted, promulgated, amended, interpreted and enforced, and the requirements applicable to our business have been changing especially rapidly in response to the COVID-19 pandemic. 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. 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.

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, privacy, 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.

seller/servicer obligations under agreements with the GSEs, HUD, FHA, VA and Ginnie Mae, including capital requirements related to tangible net worth, as defined by the applicable agency, an obligation to provide audited financial statements within 90 days of the applicable entity’s fiscal year end as well as extensive requirements regarding servicing, selling and other matters. We believe our licensed entities were in compliance with all of their minimum net worth requirements at March 31, 2021. 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 for licensing and seller/servicer obligations referenced above is based on the UPB of assets serviced by PMC. Under the applicable formula, the required minimum net worth was $272.0 million at March 31, 2021. PMC’s net worth was $524.2 million at March 31, 2021. The most restrictive of the various liquidity requirements for licensing and seller/servicer obligations referenced above was $27.2 million at March 31, 2021. PMC’s liquid assets were $227.0 million at March 31, 2021.

We have faced and expect to continue to face heightened regulatory and public scrutiny as an organization and have entered into a number of significant settlements with federal and state regulators and state attorneys general that have imposed additional requirements on our business. Our failure to comply with our settlement obligations to our regulators or with applicable federal, state and local laws, regulations, licensing requirements and agency guidelines could lead to (i) administrative fines, penalties, sanctions or 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) additional costs to address these matters and comply with the terms of any resulting resolutions, (vii) suspension or termination of our approved agency seller/servicer status, (viii) inability to raise capital or otherwise fund our operations and (ix) inability to execute on our business strategy, which could have a material adverse impact on our business, reputation, results of operations, liquidity and financial condition.

New York Department of Financial Services (NY DFS). We operate pursuant to certain regulatory requirements with the NY DFS, including obligations arising under a consent order entered into in March 2017 (the NY Consent Order) and the terms of the NY DFS’ conditional approval in September 2018 of our acquisition of PHH. The conditional approval includes reporting obligations and record retention and other requirements relating to the transfer of loans collateralized by New York property (New York loans) onto our servicing system, the Financial Services, Inc. (Black Knight) LoanSphere MSP® servicing system (Black Knight MSP) and certain requirements with respect to the evaluation and supervision of management of both Ocwen and PMC. In addition, we were prohibited from boarding any additional loans onto the REALServicing system and we were required to transfer all New York loans off the REALServicing system by April 30, 2020. The conditional approval also restricts our ability to acquire MSRs with respect to New York loans, so that Ocwen may not increase its aggregate portfolio of New York loans serviced or subserviced by Ocwen by more than 2% per year. 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 transferred all loans onto Black Knight MSP in 2019 and no longer service any loans on the REALServicing system. We believe we have complied with all terms of the PHH acquisition conditional approval to date. We continue to work with the NY DFS to address matters they raise with us as well as to fulfill our commitments under the NY Consent Order and PHH acquisition conditional approval.

California Department of Financial Protection and Innovation (CA DFPI). In January 2015 and February 2017, Ocwen Loan Servicing, LLC (OLS) entered into consent orders with the CA DFPI (formerly known as the California Department of Business Oversight) relating to our alleged failure to produce certain information and documents during a routine licensing examination and relating to alleged servicing practices. We have completed all of our obligations under each of these consent orders. In October 2020, we entered into a consent order with the CA DFPI in order to resolve a legacy PHH examination finding and, in conjunction therewith, agreed to pay $62,000 (sixty-two thousand dollars) in penalties. We continue to work with the CA DFPI to address matters they raise with us as well as to fulfill our commitments under the consent order.

Commitments

3 Months Ended

Mar. 31, 2021

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 $2.1 billion at March 31, 2021. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. During the three months ended March 31, 2021, we funded $47.8 million out of the $2.0 billion borrowing capacity as of December 31, 2020. We also had short-term commitments to lend $916.9 million and $50.2 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at March 31, 2021. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, referred to as warehouse lines.

HMBS Issuer Obligations

As an HMBS issuer, we are required to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of a reverse mortgage loan is equal to or greater than 98% of the maximum claim amount (MCA repurchases), or when they become inactive (the borrower is deceased, no longer occupies the property or is delinquent on tax and insurance payments).

Activity with regard to HMBS repurchases, primarily MCA repurchases, are as follows:


	Three Months Ended March 31, 2021
	Active			Inactive			Total
	Number	Amount		Number	Amount		Number	Amount
Beginning balance	141	$	29,852	317	$	56,449	458	$	86,301
Additions	66	16,448		66	14,422		132	30,870
Recoveries, net (1)	(58)	(16,805)		(39)	(3,828)		(97)	(20,633)
Transfers	(12)	(3,727)		12	3,727		—	—
Changes in value	—	9		—	(897)		—	(888)
Ending balance	137	$	25,777	356	$	69,873	493	$	95,650

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

NRZ Relationship

Our Servicing segment has exposure to concentration risk and client retention risk. As of March 31, 2021, our servicing portfolio included significant client relationships with NRZ which represented 36% and 45% of our servicing portfolio UPB and loan count, respectively, and approximately 64% of all delinquent loans that Ocwen services. The current terms of our agreements with NRZ extend through July 2022. Currently, subject to proper notice (generally 180 days’ notice), the payment of termination fees and certain other provisions, NRZ has rights to terminate the legacy Ocwen agreements for convenience.

Oaktree MAV (MSR Asset Vehicle, LLC) Transaction

On December 21, 2020, Ocwen entered into a transaction agreement (the Transaction Agreement) with Oaktree Capital Management L.P. and certain affiliates (collectively Oaktree) and OCW MAV Holdings, LLC (OMH), a special purpose entity managed by Oaktree. The Transaction Agreement provides for Ocwen and OMH to form a strategic relationship, which will be conducted through MSR Asset Vehicle, LLC (MAV), for the purpose of investing in MSRs pertaining to mortgage loans held or securitized by Fannie Mae and Freddie Mac, subject to certain terms and conditions. The Transaction Agreement includes customary representations, warranties, covenants and closing conditions, including receipt of required regulatory approvals. The closing of the transaction is expected to occur in the second quarter of 2021. The Transaction Agreement may be terminated on or prior to closing by mutual written agreement of Ocwen and OMH, and upon the occurrence of certain conditions including if the closing has not occurred by July 1, 2021, subject to the ability of either OMH or Ocwen to extend such date for up to an additional 60 days to obtain any outstanding required regulatory approvals.

At closing, OMH and Ocwen will initially hold 85% and 15%, respectively, in MAV, which is presently a wholly owned subsidiary of OMH. The parties have agreed to invest up to $250.0 million, contributed on a pro rata basis, over a term of three years following closing (subject to extension) for use in connection with eligible MSR investments and operating expenses. Following the execution of the Transaction Agreement and until the parties have contributed their respective aggregate $250.0 million capital contributions, Ocwen has an obligation to provide an indirect subsidiary of OMH with a “first look” at opportunities presented to Ocwen or its affiliates to acquire Fannie Mae and Freddie Mac MSRs that meet certain criteria.

Effective as of closing, PMC will enter into a subservicing agreement (Subservicing Agreement) with an indirect subsidiary of OMH to service the mortgage loans underlying the MSRs in exchange for a per-loan subservicing fee and certain other ancillary fees as set forth in the Subservicing Agreement.

Ocwen has agreed to sell to Oaktree and certain affiliates up to 4.9%, at Oaktree’s sole discretion, of Ocwen’s outstanding common stock at a price of $23.15 per share, and to issue to Oaktree warrants to purchase from Ocwen additional common stock equal to 3% of Ocwen’s outstanding common stock at a purchase price of $24.31 per share (subject to anti-dilution adjustments), in each case, upon closing of the MAV transaction with Oaktree and subject to other customary closing conditions. The warrants expire four years after their issue date. Ocwen also agreed to grant Oaktree a pre-emptive right, effective from the date of the Transaction Agreement until 90 days after closing of the MAV transaction, to participate in certain future equity financings of Ocwen in an amount that would allow Oaktree to maintain its fully-diluted ownership

percentage of Ocwen as a result of its investment in Ocwen’s common stock and warrants. Ocwen and Oaktree have agreed to enter into a securities purchase agreement (the Securities Purchase Agreement) and warrant agreement (Warrant Agreement) at closing of the MAV transaction to reflect these transactions. The Securities Purchase Agreement and the Warrant Agreement provide that the ownership of Oaktree and its affiliates in Ocwen’s common stock on an as-converted basis may not exceed 19.9% at any time without receipt of shareholder approval subject to applicable NYSE listing rules.

See Note 22 – Subsequent Events for information regarding the closing of the MAV transaction on May 3, 2021.

Contingencies

3 Months Ended

Mar. 31, 2021

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. In addition, we may be a party or potential party to threatened or pending legal proceedings brought by fair-housing advocates, commercial counterparties, including claims by parties who provide trustee services, parties to whom we have sold MSRs or other assets, parties on whose behalf we service mortgage loans, and parties who provide ancillary services including property preservation and other post-foreclosure related services.

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 FDCPA, the RESPA, the TILA, 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, payment misapplication actions, allegations of wrongdoing in connection with lender-placed insurance and mortgage reinsurance 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 and individual state laws, 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, claims related to call recordings, 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 FDCPA and similar state laws, (2) certain fees we assess on borrowers are marked up improperly in violation of applicable state and federal law, (3) we breached fiduciary duties we purportedly owe to benefit plans due to the discretion we exercise in servicing certain securitized mortgage loans and (4) certain legacy mortgage reinsurance arrangements violated RESPA. 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, including punitive 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, liquidity 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 $40.4 million at March 31, 2021. We cannot currently estimate the amount, if any, of reasonably possible losses above amounts that have been recorded at March 31, 2021.

As previously disclosed, we are subject to individual lawsuits relating to our FDCPA compliance and putative state law class actions based on the FDCPA and state laws similar to the FDCPA. Ocwen has recently agreed to a settlement in principle of a putative class action, Morris v. PHH Mortgage Corp., filed in March 2020 in the United States District Court for the Southern District of Florida, alleging that PMC’s practice of charging a fee to borrowers who voluntarily choose to use certain optional expedited payment options violates the FDCPA and its state law analogs. Several similar putative class actions have been filed against PMC and Ocwen since July 2019. Following mediation, PMC agreed to the terms of a settlement agreement to resolve all claims in the Morris matter. A motion requesting preliminary approval of the settlement was filed on August 25, 2020. Several third parties, including a group of State Attorneys General, have filed papers opposing preliminary approval, and these third parties could ultimately file objections to the proposed settlement. Following the preliminary approval hearing, PMC and plaintiffs renegotiated portions of the settlement agreement to address several questions raised by the Court, and subsequently filed a renewed motion for preliminary approval. Ocwen expects final approval of the Morris settlement will resolve the claims of the substantial majority of the putative class members described in the other similar cases that Ocwen is defending. Ocwen cannot guarantee that the proposed settlement will receive final approval and in the absence of such approval, Ocwen cannot predict the eventual outcome of the Morris proceeding and similar putative class actions.

In addition, we continue to be involved in legacy matters arising prior to Ocwen’s October 2018 acquisition of PHH, including a putative class action filed in 2008 in the United States District Court for the Eastern District of California against PHH and related entities in alleging that PHH’s legacy mortgage reinsurance arrangements between its captive reinsurer, Atrium Insurance Corporation, and certain mortgage insurance providers violated RESPA. See Munoz v. PHH Mortgage Corp. et al., No. 1:08-cv-00759-DAD-BAM (E.D. Ca.). In June 2015, the court certified a class of borrowers who obtained loans with private mortgage insurance through PHH’s captive reinsurance arrangement between June 2, 2007 and December 31, 2009. PHH has asserted numerous defenses to the merits of the case. On August 12, 2020, the Court granted, in part, Plaintiffs’ Motion for Partial Summary Judgment. The only issue remaining for trial is whether the reinsurance services provided by PHH’s captive reinsurance subsidiary, Atrium, were actually provided in order for the safe harbor provision of RESPA to apply. A pre-trial conference was held on February 1, 2021. The Court declined to set a trial date due to COVID issues and strained judicial resources. Instead, the Court will resume the Pre-Trial Conference on May 24, 2021, to determine when a trial may be feasible. PHH accrued $2.5 million when the case was filed in 2008 and that amount is included in the $40.4 million legal and regulatory accrual referenced above. At this time, Ocwen is unable to predict the outcome of this 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. Ocwen intends to vigorously defend against this lawsuit. If our efforts to defend this lawsuit are not successful, our business, reputation, financial condition liquidity and results of operations could be materially and adversely affected.

The same plaintiffs who filed a TCPA class action against Ocwen subsequently filed a similar class action against trustees of RMBS trusts based on vicarious liability for Ocwen’s alleged non-compliance with the TCPA. Although they have yet to take any formal action, the trustees have indicated their intent to seek indemnification from Ocwen based on the vicarious liability claims. However, a recent Supreme Court decision significantly undercuts the predominant theory of liability under the TCPA, and should provide even greater defenses on which the Company can rely when defending existing lawsuits or any additional lawsuits that may be filed. Nevertheless, given the recency of this Supreme Court decision, and the lack of opportunity for lower courts to interpret and apply it, it remains difficult to predict the possible loss or range of loss, if any, above the amount accrued 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, reputation, financial condition, liquidity and results of operations could be materially and adversely affected.

Ocwen is a defendant in a certified class action in the U.S. District Court in the Eastern District of California where the plaintiffs claim Ocwen marked up fees for property valuations and title searches in violation of California state law. See Weiner v. Ocwen Financial Corp., et al.; 2:14-cv-02597-MCE-DB. Ocwen’s motion for summary judgment, filed in June 2019, was denied in May 2020; however, the court did rule that plaintiff’ recoverable damages are limited to out-of-pocket costs, i.e., the amount of marked-up fees actually paid, rather than the entire cost of the valuation that plaintiffs sought. A jury trial was scheduled for August 30, 2021, however on April 12, 2021, the case was reassigned to a new district judge and we are anticipating the new judge will advise soon on any changes to the schedule. At this time, Ocwen is unable to predict the outcome of this 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. Ocwen intends to vigorously

defend against this lawsuit. If our efforts to defend this lawsuit are not successful, our business, financial condition liquidity and results of operations could be materially and adversely affected. Ocwen may have affirmative indemnification rights and/or other claims against third parties related to the allegations in the lawsuit. Although we may pursue these claims, we cannot currently estimate the amount, if any, of recoveries from these third parties.

From time to time we are also subject to indemnification claims from contractual parties (i) on whose behalf we service or subservice loans, or did so in the past and (ii) to whom we sold loans or MSRs.

We are currently involved in a dispute with a former subservicing client, HSBC Bank USA, N.A. (HSBC), which filed a complaint in the Supreme Court of the State of New York against PHH. See HSBC Bank USA, N.A. v. PHH Mortgage Corp.; (Supreme Court of the State of N.Y.; Index No. 655868/2020). HSBC’s claims relate to alleged breaches of agreements entered into under a prior subservicing arrangement. We believe we have strong factual and legal defenses to all of HSBC’s claims and are vigorously defending the action. Ocwen is currently unable to predict the outcome of this dispute or estimate the size of any loss which could result from a potential resolution reached through litigation or otherwise. We are also currently involved in three lawsuits pending in the Supreme Court of the State of New York with a purchaser of MSRs, Mr. Cooper (formerly Nationstar Mortgage Holdings Inc.), who alleges breaches of representations and warranties made by PHH in the MSR sale agreements. The initial complaint filed in the first case was dismissed in its entirety, but Mr. Cooper has since appealed that ruling, filed an amended complaint in that case, and commenced the second and third litigation. We believe we have strong factual and legal defenses to Mr. Cooper’s claims and are vigorously defending ourselves. We have also received demands for indemnification for alleged breaches of representations and warranties from parties to whom we sold loans and we are currently a defendant in an adversary proceeding brought by a bankruptcy plan administrator seeking to enforce its right to contractual indemnification for the sale of allegedly defective mortgage loans.

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, reputation, financial condition, liquidity and results of operations could be adversely affected.

In addition, several RMBS trustees have received notices of events of default alleging material failures by servicers to comply with applicable servicing agreements. Although Ocwen has not been sued by an RMBS trustee in response to an event of default notice, 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 certificate holders, or, under certain circumstances, that the RMBS investors who issue notices of event of default could seek to press their allegations against Ocwen, independent of the trustees. We are unable at this time to predict what, if any, actions any trustee will take in response to an event of default notice, nor can we predict at this time the potential loss or range of loss, if any, associated with the resolution of any event of default notice 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, reputation, financial condition, liquidity and results of operations.

Regulatory

We are subject to a number of ongoing federal and state regulatory examinations, 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, Ocwen Mortgage Servicing, Inc. (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 laws prohibiting unfair, deceptive or abusive acts or practices, as well as violations of other 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. In September 2019, the court issued a ruling on our motion to dismiss, granting it in part and denying it in part. The court granted our motion dismissing the entire complaint without prejudice because the court found that the CFPB engaged in impermissible “shotgun pleading,” holding that the CFPB must amend its complaint to specifically allege and distinguish the facts between all claims. The CFPB filed an amended complaint in October 2019, and we filed our answer and affirmative defenses in November 2019. Ocwen and the CFPB completed a summary judgment briefing on September 4, 2020. The parties participated in a mediation session on October 23, 2020,and held additional settlement discussions following the conclusion of the mediation session, however, the parties were unable to reach a resolution of the litigation.

On March 4, 2021, the court issued an order granting in part and reserving ruling in part on Ocwen’s motion for summary judgment. In that order, the court granted Ocwen summary judgment on 9 of 10 counts in the CFPB’s amended complaint, finding that the CFPB’s allegations were barred under the principles of claim preclusion or res judicata to the extent those claims are premised on servicing activity occurring prior to February 26, 2017 and are covered by a 2014 Consent Judgment entered by the United States District Court for the District of Columbia. The court held that to the extent counts 1-9 concern servicing activity occurring after the expiration of the NMS consent judgment on February 26, 2017, res judicata is not a bar and therefore ordered the CFPB to submit a supplemental statement concerning its intent to pursue claims for servicing activity post-dating the expiration of the NMS Consent Judgment. As to the remaining count, the court denied the summary judgment motions of both parties, concluding that the summary judgment record revealed a genuine issue of fact. In a subsequently-filed position statement, the CFPB stated it would not be pursuing counts 1–9 for any conduct that took place after February 26, 2017, and on April 19, 2021, the CFPB filed its Second Amended Complaint to remove count 10 as well as allegations in counts 1-9 concerning servicing activity that occurred after February 26, 2017. On April 21, 2021, the court entered final judgment in our favor, denied all pending motions as moot, and closed the case. The CFPB has filed a notice of appeal.

Our current accrual with respect to this matter is included in the $40.4 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 potentially involve monetary fines or penalties or additional restrictions on our business and 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 administrative 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. These administrative actions were applicable to OLS, but additional Ocwen entities were named in some actions, including Ocwen Financial Corporation, OMS, Homeward, Liberty, OFSPL and Ocwen Business Solutions, Inc. (OBS).

As discussed further below, we have now resolved all of the state regulatory matters arising in April 2017. In resolving these matters, we entered into agreements containing certain restrictions and commitments with respect to the operation of our business and our regulatory compliance activities, including restrictions and conditions relating to acquisitions of MSRs, a transition to an alternate loan servicing system from the REALServicing system, engagement of third-party auditors, escrow and data testing, error remediation, and financial condition reporting. In some instances, we also provided borrower financial remediation and made payments to state regulators.

We have taken substantial steps toward fulfilling our commitments under the agreements described above, including completing the transfer of loans to Black Knight MSP, completing pre-transfer and post-transfer data integrity audits, developing and implementing certain enhancements to our consumer complaint process, completing a third-party escrow review and ongoing reporting and information sharing. We continue to be subject to obligations under these agreements, including completing the final phase of a data integrity audit under our agreement with the State of Massachusetts.

Concurrent with the initiation of the administrative actions and the filing of the CFPB lawsuit discussed above, 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 (ten thousand dollars) per confirmed violation of the applicable statute. In September 2019, the court issued its ruling on our motion to dismiss, granting it in part and denying it in part. The court granted our motion dismissing the entire complaint without prejudice because the court found that the plaintiffs engaged in impermissible “shotgun pleading,” holding that the plaintiffs must amend their complaint to specifically allege and distinguish the facts between all claims. The plaintiffs filed an amended complaint in November 2019. We filed a partial motion to dismiss the amended complaint in December 2019. On April 22, 2020, the court granted our motion and dismissed Count V of the amended complaint with prejudice holding the plaintiff failed to plead an actionable claim under the Florida Deceptive and Unfair Trade Practices Act. On May 6, 2020, Ocwen filed its answer and affirmative defenses to the amended complaint. Ocwen and the plaintiffs completed a summary judgment briefing on September 4, 2020.

On October 15, 2020, we announced that we had reached an agreement to resolve the Florida plaintiffs’ lawsuit. Pursuant to that agreement, Ocwen was required to pay the State of Florida $5.2 million within 60 days of the Court entering the final consent judgment between the parties. Ocwen then has an additional two years to provide debt forgiveness totaling at least $1.0 million to certain Florida borrowers. If Ocwen is unable to do so, then two years from now it will owe the State of Florida an additional $1.0 million. We anticipate that we will be able to satisfy the debt forgiveness obligation and therefore do not presently anticipate that the additional $1.0 million payment will be required. In addition, Ocwen agreed to certain late fee waivers, a targeted loan modification program for certain eligible Florida borrowers, and certain non-monetary reporting and handling obligations. Ocwen did not admit any fault or liability as part of the settlement. An Amended Final Consent Judgment was entered on October 27, 2020 and Ocwen satisfied the monetary portions of the settlement on December 17, 2020. Although we believe we had strong defenses to all of Florida’s claims, this was an opportunity to resolve one of Ocwen’s remaining significant legacy matters, and to do so without incurring further expense in preparing for trial.

Our accrual with respect to the administrative and legal actions initiated in April 2017 is included in the $40.4 million litigation and regulatory matters accrual referenced above. We have also incurred, and will continue to incur costs to comply with the terms of the settlements we have entered into, including the costs of conducting an escrow review, Maryland organizational assessments and Massachusetts data integrity audits, and costs relating to the transition to Black Knight MSP. With respect to the escrow review, the third-party auditor has issued its final report and we have completed all required remediation measures required as part of that review. In addition, it is possible that legal or other actions could be taken against us with respect to such errors, which could result in additional costs or other adverse impacts. If we fail to comply with the

terms of our settlements, additional legal or other 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) and six states relating to a servicing examination from 2013 to 2015. Among other things, the MOU prohibited us from repurchasing stock during the development of a going forward plan and, thereafter, except as permitted by the plan. We submitted a plan in 2016 that contained no stock repurchase restrictions and, therefore, we do not believe we are currently restricted from repurchasing stock. We requested confirmation from the signatories of the MOU that they agree with this interpretation, and received affirmative responses from the MMC and five states, and a response declining to take a legal position from the remaining state.

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. The Department of Justice has informed us that it has decided not to take enforcement action related to this matter at this time and has, consequently, closed its investigation. 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 Ocwen 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

We have exposure to representation, warranty and indemnification obligations relating to our Originations business, including lending, sales and securitization activities, and relating to our servicing practices.

At March 31, 2021 and March 31, 2020, we had outstanding representation and warranty repurchase demands of $53.6 million UPB (275 loans) and $44.7 million UPB (277 loans), respectively. 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 and similar indemnification obligations:


	Three Months Ended March 31,
	2021		2020
Beginning balance (1)	$	40,374	$	50,838
Provision (reversal) for representation and warranty obligations	400		(768)
New production liability	1,273		170


Charge-offs and other (2)	(358)		(3,161)
Ending balance (1)	$	41,689	$	47,079

(1)The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our unaudited consolidated balance sheets.

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

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, 2021.

Other

Ocwen, on its own behalf and on behalf of various mortgage loan investors, is 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 five 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 and other claims against service providers and parties from whom we purchased MSRs or other assets. Although we pursue these claims, we cannot currently estimate the amount, if any, of further recoveries. Similarly, from time to time, indemnification and other claims are made against us by parties to whom we sold MSRs or other assets or by parties on whose behalf we service mortgage loans. We cannot currently estimate the amount, if any, of reasonably possible loss above amounts recorded.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 22 – Subsequent Events On May 3, 2021, pursuant to the previously disclosed Transaction Agreement dated December 21, 2020 (see Note 20 — Commitments), we entered into a definitive agreement with special purpose entities owned by funds and accounts managed by Oaktree Capital Management, L.P. (collectively Oaktree) to operate an MSR investment joint venture, MSR Asset Vehicle LLC (MAV). Ocwen contributed MAV, which had total member’s equity of approximately $5 million on May 3, 2021, to an intermediate holding company held by Oaktree, MAV Canopy HoldCo I, LLC (MAV Canopy), and received 15% of MAV Canopy. We obtained all necessary approvals or non-objection confirmations from state regulators, Freddie Mac and Fannie Mae to close the MAV transaction. MAV is currently approved to purchase Freddie Mac MSRs throughout the continental United States, with the exception of one state. We expect to receive Fannie Mae’s approval to purchase Fannie Mae MSRs in the near future and continue working to finalize one remaining state regulatory approval. In connection with closing, we issued Oaktree 426,705 shares of our common stock, representing 4.9% of our outstanding common stock, at a price per share of $23.15 for an aggregate purchase price of approximately $9.9 million, and 261,248 four-year warrants to purchase shares of our common stock at a price per share of $24.31 in consideration of the transaction. The closing of the MAV transaction also satisfied the remaining closing condition to the issuance to Oaktree of the second tranche of the OFC Senior Secured Notes in an aggregate principal amount of $85.5 million. The net proceeds before expenses from the closing of the tranche of OFC Senior Secured Notes were approximately $75.0 million (after $10.5 million of OID) and are expected to be used to fund our investment in MAV, investments in MSRs and for general corporate purposes.

Organization and Basis of Presentation (Policies)	3 Months Ended
Organization and Basis of Presentation (Policies)	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2021. 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, 2020. In August 2020, Ocwen implemented a reverse stock split of its shares of common stock in a ratio of one-for-15. The number of shares, loss per share amounts, repurchase price per share amounts, and Common stock and Additional paid-in capital balances have been retroactively adjusted for all periods presented in this Quarterly Report on Form 10-Q to give effect to the reverse stock split as if it occurred at the beginning of the first period presented. See Note 13 – Equity for additional information.
Use of Estimates and Assumptions	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 and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions.
Recently Adopted and Issued Accounting Standards	Recently Adopted Accounting Standards Income Taxes (ASC Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) The FASB issued this ASU to ASC Topic 740, Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include the removal of certain exceptions to the general principles of ASC Topic 740 in such areas as intraperiod tax allocation, year to date losses in interim periods and deferred tax liabilities related to outside basis differences. Amendments also include simplification in other areas such as interim recognition of enactment of tax laws or rate changes and accounting for a franchise tax (or similar tax) that is partially based on income. Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements. Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity—Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06) The amendments in this ASU simplify the accounting for certain financial instruments with characteristics of liabilities and equity by reducing the number of accounting models for convertible debt and convertible preferred stock instruments. In addition, this ASU amended the derivative guidance for the “own stock” scope exception and certain aspects when calculating earnings per share. The amendments in this ASU affect entities that issue convertible instruments and/or contracts in an entity’s own equity. The amendments in this ASU are effective on January 1, 2022, with early adoption permitted on January 1, 2021. Our early adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements. Investments—Equity Securities (ASC Topic 321), Investments—Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815) (ASU 2020-01) The amendments in this ASU affect all entities that apply the guidance in ASC Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The amendments clarify that forward or option contracts to purchase investments that will be accounted for using the equity method that do not meet the definition of a derivative under ASC Topic 815 are in the scope of ASC Topic 321. Therefore, when the purchase contract is considered a forward or option contract in the scope of this guidance, the investor would account for changes in the contract’s fair value prior to closing through earnings, unless the contract qualifies for the measurement alternative and it is elected. If the measurement alternative is elected, the change in the fair value of the contract would be reflected in earnings upon closing. In addition, if there are observable transactions or impairments before closing, the guidance would require remeasurement of the contract to fair value. The guidance in this ASU also specifies that when applying the measurement alternative in ASC Topic 321, observable transactions include those transactions by the investor that result in the application or discontinuation of the equity method of accounting. The amendments under this ASU are effective prospectively. Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements.

Securitizations and Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

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 of loans accounted for as sales that were outstanding:


	Three Months Ended March 31,
	2021		2020
Proceeds received from securitizations	$	3,248,918	$	820,001
Servicing fees collected (1)	13,178		12,252
Purchases of previously transferred assets, net of claims reimbursed	(3,239)		(2,607)
	$	3,258,857	$	829,646

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, 2021		December 31, 2020
Carrying value of assets
MSRs, at fair value	$	194,600	$	137,029

Advances	140,720		143,361
UPB of loans transferred (1)	20,175,148		18,062,856
Maximum exposure to loss	$	20,510,468	$	18,343,246

Carrying Value And Classification Of Assets And Liabilities Of Advance Financing Facilities

The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities:


	March 31, 2021		December 31, 2020
Match funded advances (Advances, net)	$	623,570	$	651,576
Debt service accounts (Restricted cash)	7,186		14,195
Unamortized deferred lender fees (Other assets)	2,957		4,253
Prepaid interest (Other assets)	263		291
Advance match funded liabilities	550,437		581,288

Carrying Value And Classification Of Assets And Liabilities Of Agency MSR Financing Facility

The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility:


	March 31, 2021		December 31, 2020

MSRs pledged (MSRs, at fair value)	$	584,872	$	476,371
Unamortized deferred lender fees (Other assets)	606		1,183
Debt service account (Restricted cash)	213		211
Outstanding borrowings (Other secured borrowings, net)	250,000		210,755

Carrying Value And Classification Of Assets And Liabilities Of PLS Notes Facility

The table below presents the carrying value and classification of the assets and liabilities of the PLS Notes facility:


	March 31, 2021		December 31, 2020

MSRs pledged (MSRs, at fair value)	$	123,422	$	129,204
Debt service account (Restricted cash)	2,410		2,385
Outstanding borrowings (Other secured borrowings, net)	62,297		68,313
Unamortized debt issuance costs (Other secured borrowings, net)	764		894

Fair Value (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities


		March 31, 2021				December 31, 2020
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Loans held for sale
Loans held for sale, at fair value (a) (e)	3, 2	$	500,814	$	500,814	$	366,364	$	366,364
Loans held for sale, at lower of cost or fair value (b)	3	17,009		17,009		21,472		21,472
Total Loans held for sale		$	517,823	$	517,823	$	387,836	$	387,836

Loans held for investment
Loans held for investment - Reverse mortgages (a)	3	$	7,044,374	$	7,044,374	$	6,997,127	$	6,997,127
Loans held for investment - Restricted for securitization investors (a)	3	8,820		8,820		9,770		9,770
Total loans held for investment		$	7,053,194	$	7,053,194	$	7,006,897	$	7,006,897

Advances, net (c)	3	$	786,678	$	786,678	$	828,239	$	828,239

Receivables, net (c)	3	178,209		178,209		187,665		187,665
Mortgage-backed securities (a)	3	1,613		1,613		2,019		2,019

Corporate bonds (a)	2	211		211		211		211

Financial liabilities:
Advance match funded liabilities (c)	3	$	550,437	$	550,862	$	581,288	$	581,997
Financing liabilities:
HMBS-related borrowings (a)	3	$	6,778,195	$	6,778,195	$	6,772,711	$	6,772,711
Financing liability - MSRs pledged (Rights to MSRs) (a)	3	550,364		550,364		566,952		566,952
Financing liability - Owed to securitization investors (a)	3	8,820		8,820		9,770		9,770

Total Financing liabilities		$	7,337,379	$	7,337,379	$	7,349,433	$	7,349,433
Other secured borrowings:
Senior secured term loan (c) (d)	2	$	—	$	—	$	179,776	$	184,639
Mortgage warehouse and MSR financing (c) (d)	3	1,066,022		1,037,199		889,385		858,573
Total Other secured borrowings		$	1,066,022	$	1,037,199	$	1,069,161	$	1,043,212


		March 31, 2021				December 31, 2020
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes:
Senior notes (c) (d) (f)	2	391,377		399,537		311,898		320,879
OFC Senior notes due 2027 (c) (d) (f)	3	151,550		180,318		—		—
Total Senior notes		$	542,927	$	579,855	$	311,898	$	320,879

Derivative financial instrument assets (liabilities)
Interest rate lock commitments (a)	3	$	14,589	$	14,589	$	22,706	$	22,706
Forward trades - Loans held for sale (a)	2	(52)		(52)		(50)		(50)
TBA / Forward mortgage-backed securities (MBS) trades (a)	1	480		480		(4,554)		(4,554)
Interest rate swap futures (a)	1	(9,532)		(9,532)		504		504
Other	3	(14)		(14)		—		—

MSRs (a)	3	$	1,400,217	$	1,400,217	$	1,294,817	$	1,294,817

(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 11 – 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 - Restricted for Securitization Investors		Financing Liability - Owed to Securitization Investors		Loans Held for Sale - Fair Value		Mortgage-Backed Securities		IRLCs
Three months ended March 31, 2021
Beginning balance	$	9,770	$	(9,770)	$	51,072	$	2,019	$	22,706

Purchases, issuances, sales and settlements
Purchases	—		—		58,916		—		—
Issuances	—		—		—		—		134,370

Sales	—		—		(32,889)		—		—
Settlements	(950)		950		—		—		—
Transfers (to) from:

Loans held for sale, at fair value	—		—		—		—		(128,564)
Other assets	—		—		(96)		—		—


	(950)		950		25,931		—		5,806



Change in fair value included in earnings	—		—		(5,640)		(406)		(13,923)
Calls and other	—		—		4		—		—

	—		—		(5,636)		(406)		(13,923)

Ending balance	$	8,820	$	(8,820)	$	71,367	$	1,613	$	14,589


	Loans Held for Investment - Restricted for Securitization Investors		Financing Liability - Owed to Securitization Investors		Loans Held for Sale - Fair Value		Mortgage-Backed Securities		IRLCs
Three months ended March 31, 2020
Beginning balance	$	23,342	$	(22,002)	$	—	$	2,075	$	—





Settlements	(781)		637		—		—		—








Change in fair value included in earnings	—		—				(405)		—



Transfers in and / or out of Level 3	—		—		25,582		—		10,478
Ending balance	$	22,561	$	(21,365)	$	25,582	$	1,670	$	10,478

Schedule of Significant Assumptions used in Valuation


Significant unobservable assumptions	March 31, 2021		December 31, 2020
Life in years
Range	0.9 to 7.9		0.9 to 8.0
Weighted average	5.5		5.9
Conditional prepayment rate, including voluntary and involuntary prepayments
Range	10.7% to 37.6%		10.6% to 28.8%
Weighted average	16.5	%	15.4	%
Discount rate	2.4	%	1.9	%


Significant unobservable assumptions	March 31, 2021						December 31, 2020
	Agency			Non-Agency			Agency			Non-Agency
Weighted average prepayment speed	10.0		%	11.4		%	11.8		%	11.5		%
Weighted average lifetime delinquency rate	2.6		%	27.8		%	3.0		%	28.0		%


Weighted average discount rate	9.2		%	11.5		%	9.2		%	11.4		%
Weighted average cost to service (in dollars)	$	76		$	270		$	79		$	270


Significant unobservable assumptions	March 31, 2021		December 31, 2020
Life in years
Range	0.9 to 8.0		0.9 to 8.0
Weighted average	5.9		5.9
Conditional prepayment rate
Range	10.7% to 37.6%		10.6% to 28.8%
Weighted average	16.5	%	15.4	%
Discount rate	2.3	%	1.7	%


Significant unobservable assumptions	March 31, 2021			December 31, 2020
Weighted average prepayment speed	11.4		%	11.5		%
Weighted average delinquency rate	29.5		%	29.8		%


Weighted average discount rate	11.5		%	11.4		%
Weighted average cost to service (in dollars)	$	286		$	287

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 as of March 31, 2021 given hypothetical shifts in lifetime prepayments and yield assumptions:


Adverse change in fair value	10%		20%
Weighted average prepayment speeds	$	(42,029)	$	(82,863)
Weighted average discount rate	(30,387)		(58,785)

Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Loans Held for Sale Fair Value


Loans Held for Sale - Fair Value	Three Months Ended March 31,
	2021		2020
Beginning balance	$	366,364	$	208,752
Originations and purchases	3,333,901		831,474
Proceeds from sales	(3,169,015)		(805,202)
Principal collections	(5,418)		(6,833)
Transfers from (to):
Loans held for investment, at fair value	901		578

Receivables, net	(8,633)		(31,302)
REO (Other assets)	(2,052)		(768)
Gain (loss) on sale of loans	(13,732)		6,418
Decrease in fair value of loans	(5,256)		(1,642)
Other	3,754		2,117
Ending balance (1)	$	500,814	$	203,592

(1)At March 31, 2021 and 2020, the balances include $(12.0) million and $(9.4) 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,
	2021		2020
Beginning balance - before Valuation Allowance	$	27,652	$	73,160
Purchases	98		—
Proceeds from sales	(4,840)		(30,492)
Principal collections	(214)		(651)
Transfers from (to):
Receivables, net	—		266


Gain on sale of loans	389		1,842

Other	(614)		5,079
Ending balance - before Valuation Allowance	22,471		49,204

Beginning balance - Valuation Allowance	$	(6,180)	$	(6,643)
Provision	703		(570)
Transfer to (from) Liability for indemnification obligations (Other liabilities)	15		(25)
Sales of loans	—		457

Ending balance - Valuation Allowance	(5,462)		(6,781)

Ending balance, net	$	17,009	$	42,423

Schedule of Gains on Loans Held for Sale, Net


Gain on Loans Held for Sale, Net	Three Months Ended March 31,
	2021		2020
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	34,260	$	6,561

Gain (loss) on sale of forward mortgage loans	(18,567)		6,418
Gain on sale of repurchased Ginnie Mae loans	4,900		1,842

	20,593		14,821
Change in fair value of IRLCs	(8,618)		5,714
Change in fair value of loans held for sale	(4,981)		159
Gain (loss) on economic hedge instruments (1)	—		(7,192)
Other	(1,273)		(171)
	$	5,721	$	13,331

Reverse Mortgages (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Loans Held For Investment and HMBS Related Borrowings


	Three Months Ended March 31,
	2021				2020
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	6,997,127	$	(6,772,711)	$	6,269,596	$	(6,063,434)
Cumulative effect of fair value election (1)	—		—		47,038		—
Originations	326,735		—		294,932		—
Securitization of HECM loans accounted for as a financing	—		(287,830)		—		(312,249)
Additional proceeds from securitization of HECM loans and tails	—		(12,565)		—		(8,414)
Repayments (principal payments received)	(314,153)		311,562		(175,095)		172,429
Transfers to:
Loans held for sale, at fair value	(901)		—		(578)		—
Receivables, net	(116)		—		(129)		—
Other assets	(111)		—		(265)		—
Change in fair value included in earnings	35,793		(16,651)		133,322		(111,423)
Ending Balance	$	7,044,374	$	(6,778,195)	$	6,568,821	$	(6,323,091)
Securitized loans (pledged to HMBS-Related Borrowings)	$	6,874,880	$	(6,778,195)	$	6,438,810	$	(6,323,091)
Unsecuritized loans	169,494				130,011
Total	$	7,044,374			$	6,568,821

Schedule of Reverse Mortgage Revenue, Net


Reverse Mortgage Revenue, net	Three Months Ended March 31,
	2021		2020
Gain on new originations (1)	$	17,107	$	16,784
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	2,035		5,115

Change in fair value included in earnings, net	19,142		21,899
Loan fees and other	2,684		898
	$	21,826	$	22,797

(1)Includes the changes in fair value of newly originated loans held for investment in the period through securitization date.

Advances (Tables)

3 Months Ended

Mar. 31, 2021

Advances [Abstract]

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


	March 31, 2021		December 31, 2020
Principal and interest	$	258,428	$	277,132
Taxes and insurance	348,659		364,593
Foreclosures, bankruptcy, REO and other	185,750		192,787
	792,837		834,512
Allowance for losses	(6,159)		(6,273)
Advances, net	$	786,678	$	828,239

Schedule of Activity in Advances

The following table summarizes the activity in net advances:


	Three Months Ended March 31,
	2021		2020
Beginning balance	$	828,239	$	1,056,523



New advances	203,400		243,545
Sales of advances	(133)		(228)
Collections of advances and other	(244,942)		(277,585)

Net decrease in allowance for losses	114		2,552
Ending balance	$	786,678	$	1,024,807

Schedule of Changes in Allowance For Losses


Allowance for Losses	Three Months Ended March 31,
	2021		2020
Beginning balance	$	6,273	$	9,925
Provision	1,502		(761)
Net charge-offs and other	(1,616)		(1,791)
Ending balance	$	6,159	$	7,373

Mortgage Servicing (Tables)

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

Schedule of Activity Related to MSRs - Fair Value Measurement Method


MSRs – Fair Value Measurement Method	Three Months Ended March 31,
	2021						2020
	Agency		Non-Agency		Total		Agency		Non-Agency		Total
Beginning balance	$	578,957	$	715,860	$	1,294,817	$	714,006	$	772,389	$	1,486,395


Sales and other transfers	—		—		—		—		(56)		(56)
Additions:
Recognized on the sale of residential mortgage loans	34,260		—		34,260		5,930		—		5,930
Purchase of MSRs	36,778		—		36,778		31,490		—		31,490
Servicing transfers and adjustments (1)	29		(557)		(528)		(263,630)		(893)		(264,523)
Changes in fair value:
Changes in valuation inputs or assumptions (2)	82,486		1,529		84,015		(166,532)		5,871		(160,661)
Realization of expected cash flows (2)	(23,847)		(25,278)		(49,125)		(27,037)		(21,310)		(48,347)
Ending balance	$	708,663	$	691,554	$	1,400,217	$	294,227	$	756,001	$	1,050,228

Schedule of Composition of Servicing UPB


	March 31, 2021		December 31, 2020		March 31, 2020






Owned MSRs	91,284,985		$	90,174,495	$	70,741,200
NRZ pledged MSRs (1)	61,841,181		64,061,198		70,914,910
Total MSR UPB	$	153,126,166	$	154,235,693	$	141,656,110

(1)MSRs subject to sale agreements with NRZ that do not meet sale accounting criteria. See Note 8 — Rights to MSRs.

Schedule of Components of Servicing and Subservicing Fees


Servicing Revenue	Three Months Ended March 31,
	2021		2020
Loan servicing and subservicing fees
Servicing	$	63,892	$	55,408
Subservicing	3,487		5,190
NRZ	80,385		119,669
	147,764		180,267
Ancillary income
Late charges	9,231		14,639
Custodial accounts (float earnings)	1,008		6,141
Loan collection fees	2,949		4,256

Recording fees	3,651		2,558
Other, net	7,135		3,622
	23,974		31,216
	$	171,738	$	211,483

Rights to MSRs (Tables)

3 Months Ended

Mar. 31, 2021

Transfers and Servicing [Abstract]

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


Balance Sheets	March 31, 2021		December 31, 2020
MSRs, at fair value	$	550,364	$	566,952

Due from NRZ (Receivables): Advance funding, subservicing fees and reimbursable expenses	11,653		4,611


Due to NRZ (Other liabilities)	$	94,535	$	94,691

Financing liability - MSRs pledged, at fair value: Original Rights to MSRs Agreements	550,364		566,952


	Three Months Ended March 31,
	2021		2020
Statements of Operations
Servicing fees collected on behalf of NRZ	$	80,385	$	119,669
Less: Subservicing fee retained by Ocwen	23,991		29,331
Net servicing fees remitted to NRZ	56,394		90,338

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements (1)	(1,551)		(7,068)
2017 Agreements and New RMSR Agreements	—		(903)
PMC MSR Agreements	—		40,720
	(1,551)		32,749
Runoff and settlement:
Original Rights to MSRs Agreements (1)	17,616		15,741
2017 Agreements and New RMSR Agreements	—		25,142
PMC MSR Agreements	—		7,492
	17,616		48,375

Other	2,479		2,620

Pledged MSR liability expense	$	37,850	$	6,594

Schedule of Activity Related to Financing Liability - MSRs Pledged


	Three Months Ended
	March 31, 2021		March 31, 2020
Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements		Original Rights to MSRs Agreements		2017 Agreements and New RMSR Agreements		PMC MSR Agreements		Total
Beginning Balance	$	566,952	$	603,046	$	35,445	$	312,102	$	950,593


Sales	—		—		—		(226)		(226)
Changes in fair value:
Original Rights to MSRs Agreements (2)	1,551		7,068		—		—		7,068
2017 Agreements and New RMSR Agreements	—		—		903		—		903
PMC MSR Agreements	—		—		—		(40,720)		(40,720)
Runoff and settlement:
Original Rights to MSRs Agreements (2)	(17,616)		(15,741)		—		—		(15,741)
2017 Agreements and New RMSR Agreements	—		—		(25,142)		—		(25,142)
PMC MSR Agreements	—		—		—		(7,492)		(7,492)
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements	—		—		—		(263,664)		(263,664)
Calls (1):
Original Rights to MSRs Agreements	(523)		(2,668)		—		—		(2,668)
2017 Agreements and New RMSR Agreements	—		—		(1,227)		—		(1,227)

Ending Balance	$	550,364	$	591,705	$	9,979	$	—	$	601,684

(2)Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the three months ended March 31,2020 in the table above has been recast to conform to current year disclosure, resulting in a $2.0 million gain reclassified from Runoff and settlement to Changes in fair value.

Schedule of Unpaid Principal Balance of Loans Serviced on Behalf of Others

As of March 31, 2021, the UPB of loans serviced on behalf of NRZ comprised the following:


Ocwen servicer of record (MSR title retained by Ocwen) - Ocwen MSR (1) (2)	$	13,673,665
NRZ servicer of record (MSR title transferred to NRZ) - Ocwen MSR (1)	48,153,327
Ocwen subservicer	2,505,208
Total NRZ UPB	$	64,332,200

(1)The MSR sale transactions did not achieve sale accounting treatment.

(2)NRZ’s associated outstanding servicing advances were approximately $535.5 million as of March 31, 2021.

Receivables (Tables)

3 Months Ended

Mar. 31, 2021

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

Schedule of Receivables


	March 31, 2021		December 31, 2020
Servicing-related receivables:
Government-insured loan claims - Forward	$	101,598	$	103,058
Government-insured loan claims - Reverse	29,138		32,887

Due from custodial accounts	18,596		19,393
Subservicing fees and reimbursable expenses - Due from NRZ	11,653		4,611
Reimbursable expenses	11,360		4,970
Other	4,850		1,087
	177,195		166,006
Income taxes receivable	39,233		57,503

Other receivables	2,828		3,200
	219,256		226,709
Allowance for losses	(41,047)		(39,044)
	$	178,209	$	187,665

Schedule of Changes in Allowance For Losses


Allowance for Losses	Three Months Ended March 31,
	2021		2020
Beginning balance	$	6,273	$	9,925
Provision	1,502		(761)
Net charge-offs and other	(1,616)		(1,791)
Ending balance	$	6,159	$	7,373

Government Insured Loans Claims

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,
	2021		2020
Beginning balance	$	38,339	$	56,868
Provision	4,958		5,072
Charge-offs and other, net	(2,860)		(3,837)
Ending balance	$	40,437	$	58,103

Other Assets (Tables)

3 Months Ended

Mar. 31, 2021

Other Assets [Abstract]

Schedule of Other Assets


	March 31, 2021		December 31, 2020
Contingent loan repurchase asset	$	399,126	$	480,221
Prepaid expenses	26,725		21,176
Derivatives, at fair value	15,483		23,246
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,173		15,173
REO	8,827		7,771
Prepaid lender fees, net	7,071		9,556
Deferred tax asset, net	3,634		3,543
Security deposits	2,072		2,222

Mortgage backed securities, at fair value	1,613		2,019




Other	5,147		6,556
	$	484,871	$	571,483

Borrowings (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Match Funded Liabilities


Advance Match Funded Liabilities		Borrowing Capacity			March 31, 2021					December 31, 2020
Borrowing Type	Maturity (1)	Amort. Date (1)	Total		Available (2)			Weighted Average Interest Rate		Balance			Weighted Average Interest Rate		Balance














Advance Receivables Backed Notes - Series 2015-VF5 (3)	Jun. 2051	Jun. 2021	$	250,000	$	190,479		4.22	%	$	59,521		4.26	%	$	89,396




















Advance Receivables Backed Notes, Series 2020-T1 (4)	Aug. 2052	Aug. 2022	475,000		—			1.49	%	475,000			1.49	%	475,000
Total Ocwen Master Advance Receivables Trust (OMART)		725,000	190,479		1.79		%	534,521		1.93		%	564,396









Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)	Jun. 2051	Jun. 2021	70,000		54,084			3.22	%	15,916			3.26	%	16,892





			$	795,000	$	244,563		1.83	%	$	550,437		1.96	%	$	581,288

(3)Interest is computed based on the lender’s cost of funds plus a margin of 400 bps.

(4)The weighted average rate of the notes at March 31, 2021 is 1.49%, with rates on the individual classes of notes ranging from 1.28% to 5.42%.

(5)Interest is computed based on the lender’s cost of funds plus a margin of 300 bps.

Schedule of Financing Liabilities


Financing Liabilities				Outstanding Balance
Borrowing Type	Collateral	Interest Rate	Maturity	March 31, 2021		December 31, 2020
HMBS-related borrowings, at fair value (1)	Loans held for investment	1ML + 245 bps (1)	(1)	$	6,778,195	$	6,772,711
Other financing liabilities, at fair value
MSRs pledged (Rights to MSRs), at fair value:
Original Rights to MSRs Agreements	MSRs	(2)	(2)	550,364		566,952





Financing liability - Owed to securitization investors, at fair value:

Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (3)	Loans held for investment	4.25% - 5.75% fixed; 1ML plus 0.45% variable	Oct. 2033	8,820		9,770


Total Other financing liabilities, at fair value				559,184		576,722

				$	7,337,379	$	7,349,433

Schedule of Other Secured Borrowings

Other Secured Borrowings

Available Borrowing Capacity

Outstanding Balance

Borrowing Type

Collateral

Interest Rate (1)

Maturity

Uncommitted

Committed (2)

March 31, 2021

December 31, 2020

SSTL (3)

(3)

1-Month Euro-dollar rate + 600 bps with a Eurodollar floor of 100 bps (3)

May 2022 (3)

—

185,000


Other Secured Borrowings				Available Borrowing Capacity		Outstanding Balance
Borrowing Type	Collateral	Interest Rate (1)	Maturity	Uncommitted	Committed (2)	March 31, 2021	December 31, 2020
Master repurchase agreement (4)	Loans held for sale (LHFS)	1ML + 220 - 375 bps	June 2022	85,109	—	189,891	195,773
Mortgage warehouse agreement (5)	LHFS (reverse)	Greater of 1ML + 250 bps or 3.50%	August 2021	—	1,000	—	—
Master repurchase agreement (6)	LHFS (forward and reverse)	1ML + 325 bps forward; 1ML + 350 bps reverse	Nov. 2021	50,000	38,660	161,340	80,081
Master repurchase agreement (7)	N/A	SOFR + 190 bps; SOFR floor 25 bps	N/A	50,000	—	—	—
Participation agreement (8)	LHFS	(8)	June 2021	120,000	—	—	—
Master repurchase agreement (8)	LHFS	(8)	June 2021	—	49,231	40,769	63,281
Master repurchase agreement	LHFS	1 ML + 250 bps	June 2021	—	1,000	—	—
Mortgage warehouse agreement (9)	LHFS	1ML + 350 bps; Floor 5.25%	Jan. 2022	—	35,042	14,958	11,715
Mortgage warehouse agreement (10)	LHFS (reverse)	1ML + 250 bps; 3.25% floor	Oct. 2021	519	—	99,481	73,134
Mortgage warehouse agreement (11)	LHFS	(11)	N/A	48,671	—	51,329	27,729
Master repurchase agreement (12)	LHFS	1ML + 150 - 200 bps; Floor 250 bps	N/A	—	—	51,664	—
Total mortgage loan warehouse facilities		2.93% (17)		354,299	124,933	609,432	451,713


Other Secured Borrowings				Available Borrowing Capacity					Outstanding Balance
Borrowing Type	Collateral	Interest Rate (1)	Maturity	Uncommitted		Committed (2)			March 31, 2021			December 31, 2020

Agency MSR financing facility (13)	MSRs, Advances	1ML + 450 bps	June 2021	—		—			250,000			210,755
Ginnie Mae MSR financing facility (14)	MSRs, Advances	1ML + 450 bps; 1ML floor 0.50%	Dec. 2021	25,216		—			99,784			112,022
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (15)	MSRs	5.07%	Nov. 2024	—		—			62,297			68,313
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (16)	MSRs	(16)	Feb. 2028	—		—			45,273			47,476
Total MSR financing facilities		4.77% (17)		25,216		—			457,354			438,566
				$	379,515	$	124,933		1,066,786			1,075,279
Unamortized debt issuance costs - SSTL and PLS Notes (18)									(764)			(5,761)
Discount - SSTL									—			(357)
									$	1,066,022		$	1,069,161

Weighted average interest rate						3.68		%	4.55		%

(1)1ML was 0.11% and 0.14% at March 31, 2021 and December 31, 2020, respectively.

(9)Under this agreement, the lender provides financing for up to $50.0 million on a committed basis. On January 15, 2021, the maturity date of this facility was extended to January 15, 2022.

(17)Weighted average interest rate at March 31, 2021, excluding the effect of debt issuance costs and discount.

(18)Balance at December 31, 2020 includes $4.9 million related to SSTL.

Schedule of Senior Notes


Senior Notes	Interest Rate	Maturity	Outstanding Balance
			March 31, 2021		December 31, 2020

PMC Senior Secured Notes	7.875%	March 2026	$	400,000	$	—
OFC Senior Secured Notes (1)	12% paid in cash or 13.25% paid-in-kind (see below)	March 2027	199,500		—
PHH Senior Notes	6.375%	August 2021	—		21,543
PMC Senior Secured Notes	8.375%	November 2022	—		291,509
Principal balance			599,500		313,052
Discount (2)
PMC Senior Secured Notes			(2,025)		—
OFC Senior Secured Notes (1)			(40,707)		—
			(42,732)		—
Unamortized debt issuance costs (2)
PMC Senior Secured Notes			(6,598)		(968)
OFC Senior Secured Notes			(7,243)		—
			(13,841)		(968)
Fair value adjustments			—		(186)
			$	542,927	$	311,898

(2)The discount and debt issuance costs are being amortized to interest expense through the maturity of the respective notes.

Schedule of Redemption Prices


Redemption Year	Redemption Price
2023	103.938	%
2024	101.969
2025 and thereafter	100.000

- Definition

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
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities


	March 31, 2021		December 31, 2020
Contingent loan repurchase liability	$	399,126	$	480,221
Due to NRZ - Advance collections, servicing fees and other	94,535		94,691
Other accrued expenses	63,648		87,898
Liability for indemnification obligations	43,289		41,920
Accrued legal fees and settlements	40,356		38,932
Servicing-related obligations	39,930		35,237
Checks held for escheat	39,842		35,654
Liability for uncertain tax positions	24,386		16,188
Lease liability	23,922		27,393
MSR purchase price holdback	16,140		20,923
Derivatives, at fair value	10,012		4,638
Liability for unfunded India gratuity plan	5,797		6,051
Accrued interest payable	5,502		4,915
Liability for unfunded pension obligation	12,587		12,662



Other	15,941		16,652
	$	835,013	$	923,975

Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Activity


	March 31, 2021					December 31, 2020
	Maturities	Notional		Fair value		Maturities	Notional		Fair value
Derivative Assets
Forward sales of Reverse loans	Apr. 2021 to May .2021	$	70,000	$	100	Jan. 2021	$	30,000	$	34
Forward loans IRLCs	Jul. 2021	916,930		13,622		Apr. 2021	619,713		22,224
Reverse loans IRLCs	Apr. 2021	50,197		967		Jan. 2021	11,692		482
TBA forward MBS trades	Apr. 2021 to May .2021	590,000		794		N/A	—		—
Interest rate swap futures	N/A	—		—		Mar. 2021	593,500		504
Other	N/A	—		—			—		2
Total		$	1,627,127	$	15,483		$	1,254,905	$	23,246

Derivative Liabilities
Forward sales of Reverse loans	Apr. 2021	$	35,000	$	(152)	Jan. 2021	$	20,000	$	(84)
TBA forward MBS trades	Apr. 2021	10,000		(314)		Jan. 2021	400,000		(4,554)
Interest rate swap futures	Jun. 2021	1,400,000		(9,532)		N/A	—		—

Other	N/A	—		(14)		N/A	—		—
Total		$	1,445,000	$	(10,012)		$	420,000	$	(4,638)

The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations.

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

Gain / (Loss)

Amount

Financial Statement Line

Amount

Financial Statement Line

Derivative Assets (Liabilities)

Forward loans IRLCs

(8,602)

Gain on loans held for sale, net

5,714

Gain on loans held for sale, net

Reverse loans IRLCs

485

Reverse mortgage revenue, net

(115)

Reverse mortgage revenue, net

Interest rate swap futures and TBA forward MBS trades

—

Gain on loans held for sale, net (Economic hedge)

(7,192)

Gain on loans held for sale, net (Economic hedge)

Interest rate swap futures and TBA forward MBS trades

(13,682)

MSR valuation adjustments, net

35,291

MSR valuation adjustments, net

Forward sales of Reverse loans

(2)

Reverse mortgage revenue, net

(143)

Reverse mortgage revenue, net

Other

(16)

Gain on loans held for sale, net

—

Gain on loans held for sale, net

Total

(21,816)

33,555

Interest Expense (Tables)

3 Months Ended

Mar. 31, 2021

Other Income and Expenses [Abstract]

Schedule of Components of Interest Expense


	Three Months Ended March 31,
	2021		2020
Senior notes	$	9,495	$	6,661
Mortgage loan warehouse facilities	5,283		3,460
MSR financing facilities	4,572		5,037
Advance match funded liabilities	4,496		5,665
SSTL	2,957		6,794

Other	1,649		2,365
	$	28,452	$	29,982

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

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

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


	Three Months Ended March 31,
	2021		2020
Basic earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589

Basic earnings (loss) per share	$	0.98	$	(2.84)

Diluted earnings (loss) per share
Net income (loss)	$	8,543	$	(25,489)

Weighted average shares of common stock	8,688,009		8,990,589
Effect of dilutive elements
Common stock warrants	34,309		—

Common stock awards	155,174		—
Dilutive weighted average shares of common stock	8,877,492		8,990,589

Diluted earnings (loss) per share	$	0.96	$	(2.84)

Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive (1)	180,225		249,188
Market-based (2)	157,581		125,397

(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, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Financial information for our segments is as follows:


	Three Months Ended March 31, 2021
Results of Operations	Servicing		Originations			Corporate Items and Other		Corporate Eliminations (1)		Business Segments Consolidated
Servicing and subservicing fees	$	169,354	$	2,384		$	—	$	—	$	171,738
Reverse mortgage revenue, net	2,035		19,791			—		—		21,826
Gain on loans held for sale, net	3,521		37,593			—		(35,393)		5,721
Other revenue, net	502		6,518			1,289		—		8,309
Revenue	175,412		66,286			1,289		(35,393)		207,594

MSR valuation adjustments, net	(22,690)		8,505			—		35,393		21,208

Operating expenses	82,753		37,328			19,548		—		139,629

Other (expense) income:
Interest income	1,257		2,566			113		—		3,936
Interest expense	(20,309)		(3,552)			(4,591)		—		(28,452)
Pledged MSR liability expense	(37,883)		—			33		—		(37,850)
Loss on extinguishment of debt	—		—			(15,458)		—		(15,458)


Other	452		50			(212)		—		290
Other expense, net	(56,483)		(936)			(20,115)		—		(77,534)

Income (loss) before income taxes	$	13,486	$	36,527		$	(38,374)	$	—	$	11,639

	Three Months Ended March 31, 2020
Results of Operations	Servicing		Originations			Corporate Items and Other		Corporate Eliminations (1)		Business Segments Consolidated
Servicing and subservicing fees	$	211,469	$	1		$	13	$	—	$	211,483
Reverse mortgage revenue, net	16,673		6,124			—		—		22,797
Gain on loans held for sale, net	229		13,102			—		—		13,331
Other revenue, net	1,159		2,445		—	2,627		—		6,231
Revenue	229,530		21,672			2,640		—		253,842

MSR valuation adjustments, net	(174,448)		328			—		—		(174,120)

Operating expenses	84,479		22,952			29,783		—		137,214

Other (expense) income:
Interest income	2,529		1,623			1,243		—		5,395
Interest expense	(24,581)		(2,433)			(2,968)		—		(29,982)
Pledged MSR liability expense	(6,623)		—			29		—		(6,594)



Other	3,655		(22)			(2,305)		—		1,328
Other expense, net	(25,020)		(832)			(4,001)		—		(29,853)

Loss before income taxes	$	(54,417)	$	(1,784)		$	(31,144)	$	—	$	(87,345)


Total Assets	Servicing		Originations		Corporate Items and Other		Business Segments Consolidated
March 31, 2021	$	9,869,673	$	525,610	$	376,505	$	10,771,788

December 31, 2020	$	9,847,603	$	379,233	$	424,291	$	10,651,127

March 31, 2020	$	9,321,628	$	205,198	$	459,198	$	9,986,024


Depreciation and Amortization Expense	Servicing		Originations		Corporate Items and Other		Business Segments Consolidated
Three months ended March 31, 2021
Depreciation expense	$	209	$	24	$	2,626	$	2,859

Amortization of debt issuance costs and discount	129		—		1,495		1,624

Three months ended March 31, 2020
Depreciation expense	$	215	$	37	$	3,745	$	3,997

Amortization of debt issuance costs and discount	112		—		2,550		2,662

Commitments (Tables)

3 Months Ended

Mar. 31, 2021

Other Commitments [Abstract]

Schedule of Activity Related to HMBS Repurchases

Activity with regard to HMBS repurchases, primarily MCA repurchases, are as follows:


	Three Months Ended March 31, 2021
	Active			Inactive			Total
	Number	Amount		Number	Amount		Number	Amount
Beginning balance	141	$	29,852	317	$	56,449	458	$	86,301
Additions	66	16,448		66	14,422		132	30,870
Recoveries, net (1)	(58)	(16,805)		(39)	(3,828)		(97)	(20,633)
Transfers	(12)	(3,727)		12	3,727		—	—
Changes in value	—	9		—	(897)		—	(888)
Ending balance	137	$	25,777	356	$	69,873	493	$	95,650

(1)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, 2021

Loss Contingency [Abstract]

Schedule of Indemnification Obligations

The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations:


	Three Months Ended March 31,
	2021		2020
Beginning balance (1)	$	40,374	$	50,838
Provision (reversal) for representation and warranty obligations	400		(768)
New production liability	1,273		170


Charge-offs and other (2)	(358)		(3,161)
Ending balance (1)	$	41,689	$	47,079

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

Organization and Basis of Presentation - Narrative (Details)		3 Months Ended
	Aug. 13, 2020	Mar. 31, 2021 Employee
Description of Business and Basis of Presentation [Line Items]
Total number of employees		4,900
Reverse stock split ratio	0.07
INDIA
Description of Business and Basis of Presentation [Line Items]
Total number of employees		3,000
PHILIPPINES
Description of Business and Basis of Presentation [Line Items]
Total number of employees		400
Minimum
Description of Business and Basis of Presentation [Line Items]
Percentage of foreign based employees engaged in supporting loan servicing operations		69.00%

Securitizations and Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Average period to securitization	30 days
MSRs retained	$ 34,260	$ 6,561
Percentage of loan transferred through securitization 60 days or more past due	5.50%		6.80%
Ginnie Mae Loans
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Percentage of loan transferred through securitization 60 days or more past due	15.20%		17.10%

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, 2021	Mar. 31, 2020
Transfers and Servicing [Abstract]
Proceeds received from securitizations	$ 3,248,918	$ 820,001
Servicing fees collected	13,178	12,252
Purchases of previously transferred assets, net of claims reimbursed	(3,239)	(2,607)
Cash flows between transferor and transferee proceeds and payment related to transfers accounted for sales	$ 3,258,857	$ 829,646

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, 2021	Dec. 31, 2020
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
UPB of loans transferred	$ 20,175,148	$ 18,062,856
Maximum exposure to loss	20,510,468	18,343,246
GinnieMae
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
UPB of loans transferred	4,000,000	4,100,000
Mortgage Servicing Rights - Fair Value
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Carrying value of assets	194,600	137,029
Advances and Match Funded Advances
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Carrying value of assets	$ 140,720	$ 143,361

Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Debt service accounts	$ 15,930		$ 15,868
Prepaid lender fees, net	7,071	$ 9,556
Advance match funded liabilities (related to VIEs)	550,437	581,288
Variable Interest Entity, Primary Beneficiary \| Advance Match Funded Liabilities
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Match funded advances (Advances, net)	623,570	651,576
Debt service accounts	7,186	14,195
Prepaid lender fees, net	2,957	4,253
Prepaid Interest	263	291
Advance match funded liabilities (related to VIEs)	$ 550,437	$ 581,288

Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Agency MSR Financing Facility (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Mortgage servicing rights (MSRs), at fair value	$ 1,400,217	$ 1,294,817
Unamortized debt issuance costs (Other secured borrowings, net)	7,071	9,556
Debt service accounts	15,930		$ 15,868
Variable Interest Entity, Primary Beneficiary \| Secured Debt \| Agency Mortgage Servicing Rights Financing Facility
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Mortgage servicing rights (MSRs), at fair value	584,872	476,371
Unamortized debt issuance costs (Other secured borrowings, net)	606	1,183
Debt service accounts	213	211
Short-term debt	$ 250,000	$ 210,755

Securitizations and Variable Interest Entities - Carrying Value and Classification of Assets And Liabilities of PLS Notes Facility (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Mortgage servicing rights (MSRs), at fair value	$ 1,400,217	$ 1,294,817
Debt service accounts	15,930		$ 15,868
Unamortized debt issuance costs (Other secured borrowings, net)	7,071	9,556
Secured Debt
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Outstanding borrowings (Other secured borrowings, net)	1,066,022	1,069,161
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A \| Secured Debt
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Outstanding borrowings (Other secured borrowings, net)	62,297	68,313
Variable Interest Entity, Primary Beneficiary \| Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A \| Secured Debt
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Mortgage servicing rights (MSRs), at fair value	123,422	129,204
Debt service accounts	2,410	2,385
Outstanding borrowings (Other secured borrowings, net)	62,297	68,313
Unamortized debt issuance costs (Other secured borrowings, net)	$ 764	$ 894

Fair Value - Schedule of Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans held for sale
Loans held for sale, at fair value	$ 500,814	$ 366,364	$ 203,592	$ 208,752
Financial liabilities:
Advance match funded liabilities	550,437	581,288
HMBS-related borrowings	6,778,195	6,772,711	6,323,091	6,063,434
Financing liabilities:
Other financing liabilities, at fair value	559,184	576,722
Total Financing liabilities	7,337,379	7,349,433
Other secured borrowings:
Total Other secured borrowings	1,066,022	1,069,161
Senior Notes [Abstract]
Senior notes, net	542,927	311,898
Derivative financial instruments assets (liabilities):
Interest rate swap futures	10,012	4,638
Mortgage servicing rights
Mortgage servicing rights, at fair value	1,400,217	1,294,817	$ 1,050,228	$ 1,486,395
Carrying Value
Loans held for sale
Total Loans held for sale	517,823	387,836
Loans held for investment	7,053,194	7,006,897
Financing liabilities:
Total Financing liabilities	7,337,379	7,349,433
Other secured borrowings:
Total Other secured borrowings	1,066,022	1,069,161
Senior Notes [Abstract]
Senior notes, net	542,927	311,898
Fair Value
Loans held for sale
Total Loans held for sale	517,823	387,836
Loans held for investment	7,053,194	7,006,897
Financing liabilities:
Total Financing liabilities	7,337,379	7,349,433
Other secured borrowings:
Total Other secured borrowings	1,037,199	1,043,212
Senior Notes [Abstract]
Senior notes, net	579,855	320,879
Level 2 \| Carrying Value
Loans held for sale
Loans held for sale, at fair value	500,814	366,364
Corporate bonds	211	211
Other secured borrowings:
Senior secured term loan	0	179,776
Senior Notes [Abstract]
Senior secured notes	391,377	311,898
Derivative financial instruments assets (liabilities):
Forward trades - Loans held for sale	(52)	(50)
Level 2 \| Fair Value
Loans held for sale
Loans held for sale, at fair value	500,814	366,364
Corporate bonds	211	211
Other secured borrowings:
Senior secured term loan	0	184,639
Senior Notes [Abstract]
Senior secured notes	399,537	320,879
Derivative financial instruments assets (liabilities):
Forward trades - Loans held for sale	(52)	(50)
Level 3 \| Carrying Value
Loans held for sale
Loans held for sale, at lower of cost or fair value	17,009	21,472
Loans held for investment	7,044,374	6,997,127
Advances (including match funded)	786,678	828,239
Receivables, net	178,209	187,665
Mortgage-backed securities, at fair value	1,613	2,019
Financial liabilities:
Advance match funded liabilities	550,437	581,288
HMBS-related borrowings	6,778,195	6,772,711
Other secured borrowings:
Other	1,066,022	889,385
Derivative financial instruments assets (liabilities):
Interest rate lock commitments	14,589	22,706
Other	(14)	0
Mortgage servicing rights
Mortgage servicing rights, at fair value	1,400,217	1,294,817
Level 3 \| Carrying Value \| Second Lien
Senior Notes [Abstract]
Senior secured notes	151,550	0
Level 3 \| Fair Value
Loans held for sale
Loans held for sale, at lower of cost or fair value	17,009	21,472
Loans held for investment	7,044,374	6,997,127
Advances (including match funded)	786,678	828,239
Receivables, net	178,209	187,665
Mortgage-backed securities, at fair value	1,613	2,019
Financial liabilities:
Advance match funded liabilities	550,862	581,997
HMBS-related borrowings	6,778,195	6,772,711
Other secured borrowings:
Other	1,037,199	858,573
Derivative financial instruments assets (liabilities):
Interest rate lock commitments	14,589	22,706
Other		0
Mortgage servicing rights
Mortgage servicing rights, at fair value	1,400,217	1,294,817
Level 3 \| Fair Value \| Second Lien
Senior Notes [Abstract]
Senior secured notes	180,318	0
Level 1 \| Carrying Value
Derivative financial instruments assets (liabilities):
TBA Forward Mortgage Backed Securities Assets Trades	480
TBA/Forward Mortgage Backed Securities Trades		(4,554)
Interest rate swap futures	(9,532)	504
Level 1 \| Fair Value
Derivative financial instruments assets (liabilities):
TBA Forward Mortgage Backed Securities Assets Trades	480
TBA/Forward Mortgage Backed Securities Trades		(4,554)
Interest rate swap futures	(9,532)	504
Loans Held for Investment Securitization Trusts \| Level 3 \| Carrying Value
Loans held for sale
Loans held for investment	8,820	9,770
Loans Held for Investment Securitization Trusts \| Level 3 \| Fair Value
Loans held for sale
Loans held for investment	8,820	9,770
Financing Liability - MSRs Pledged \| Level 3 \| Carrying Value
Financing liabilities:
Other financing liabilities, at fair value	550,364	566,952
Financing Liability - MSRs Pledged \| Level 3 \| Fair Value
Financing liabilities:
Other financing liabilities, at fair value	550,364	566,952
Financing Liability Owed to Securitization Investors \| Level 3 \| Carrying Value
Financing liabilities:
Other financing liabilities, at fair value	8,820	9,770
Financing Liability Owed to Securitization Investors \| Level 3 \| Fair Value
Financing liabilities:
Other financing liabilities, at fair value	$ 8,820	$ 9,770

Fair Value - Schedule of Fair Value Assets and Liabilities (Footnote) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 04, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes, net	$ 542,927		$ 311,898
7.875% Senior Notes, Due 2026 \| Secured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes, net	400,000	$ 400,000	0
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 \| Secured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes, net	199,500	$ 199,500	0
Level 3 \| Loans Held for Sale - Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans related to Ginnie Mae guaranteed securitizations	71,367		51,072	$ 25,582	$ 0
Ginnie Mae Loans \| Level 3 \| Loans Held for Sale - Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans related to Ginnie Mae guaranteed securitizations	$ 71,400		$ 51,100

Fair Value - Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Loans Held for Inv. - Restricted for Securitization Investors
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 9,770	$ 23,342
Purchases, issuances, sales and settlements
Purchases	0
Issuances	0
Sales	0
Settlements	(950)	(781)
Loans held for sale, at fair value	0
Other assets	0
Purchases, issuances, sales and settlements, total	(950)
Total realized and unrealized gains and (losses):
Change in fair value	0	0
Calls and other	0
Total realized and unrealized gains (losses) included in earnings	0
Transfers in and / or out of Level 3		0
Ending balance	8,820	22,561
Financing Liability Owed to Securitization Investors
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	(9,770)	(22,002)
Purchases, issuances, sales and settlements
Purchases	0
Issuances	0
Sales	0
Settlements	950	637
Loans held for sale, at fair value	0
Other assets	0
Purchases, issuances, sales and settlements, total	950
Total realized and unrealized gains and (losses):
Change in fair value	0	0
Calls and other	0
Total realized and unrealized gains (losses) included in earnings	0
Transfers in and / or out of Level 3		0
Ending balance	(8,820)	(21,365)
Loans Held for Sale - Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	51,072	0
Purchases, issuances, sales and settlements
Purchases	58,916
Issuances	0
Sales	(32,889)
Settlements	0
Loans held for sale, at fair value	0
Other assets	(96)
Purchases, issuances, sales and settlements, total	25,931
Total realized and unrealized gains and (losses):
Change in fair value	(5,640)
Calls and other	4
Total realized and unrealized gains (losses) included in earnings	(5,636)
Transfers in and / or out of Level 3		25,582
Ending balance	71,367	25,582
Mortgage-Backed Securities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2,019	2,075
Purchases, issuances, sales and settlements
Purchases	0
Issuances	0
Sales	0
Settlements	0	0
Loans held for sale, at fair value	0
Other assets	0
Purchases, issuances, sales and settlements, total	0
Total realized and unrealized gains and (losses):
Change in fair value	(406)	(405)
Calls and other	0
Total realized and unrealized gains (losses) included in earnings	(406)
Ending balance	1,613	1,670
IRLCs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	22,706	0
Purchases, issuances, sales and settlements
Purchases	0
Issuances	134,370
Sales	0
Settlements	0
Loans held for sale, at fair value	(128,564)
Other assets	0
Purchases, issuances, sales and settlements, total	5,806
Total realized and unrealized gains and (losses):
Change in fair value	(13,923)
Calls and other	0
Total realized and unrealized gains (losses) included in earnings	(13,923)
Transfers in and / or out of Level 3		10,478
Ending balance	$ 14,589	$ 10,478

Fair Value - Schedule of Estimated Change in Fair Value of MSRs (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Transfers and Servicing [Abstract]
Weighted average prepayment speeds, 10%	$ (42,029)
Weighted average prepayment speeds, 20%	(82,863)
Weighted average discount rate, 10%	(30,387)
Weighted average discount rate, 20%	$ (58,785)

Loans Held for Sale - Schedule of Loans Held for Sale Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Movement In Loans Held For Sale At Fair Value [Roll Forward]
Beginning balance	$ 366,364	$ 208,752
Originations and purchases	3,333,901	831,474
Proceeds from sales	(3,169,015)	(805,202)
Principal collections	(5,418)	(6,833)
Loans held for investment, at fair value	901	578
Receivables, net	(8,633)	(31,302)
REO (Other assets)	(2,052)	(768)
Gain (loss) on sale of loans	(13,732)	6,418
Decrease in fair value of loans	(5,256)	(1,642)
Other	3,754	2,117
Ending balance	$ 500,814	$ 203,592

Loans Held for Sale - Schedule of Loans Held for Sale Fair Value (Footnote) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Receivables [Abstract]
Increase (decrease) in fair value of loans held for sale	$ (12.0)	$ (9.4)

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, 2021	Mar. 31, 2020
Movement In Loans Held For Sale At Fair Value [Roll Forward]
Beginning balance - before Valuation Allowance	$ 27,652	$ 73,160
Purchases	98	0
Proceeds from sales	(4,840)	(30,492)
Principal collections	(214)	(651)
Receivables, net	0	266
Gain on sale of loans	389	1,842
Other	(614)	5,079
Ending balance - before Valuation Allowance	22,471	49,204
Ending balance, net	$ 17,009	$ 42,423

Loans Held for Sale - Schedule of Changes in Valuation Allowance (Details) - Valuation Allowance for Loans Held for Sale - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance - Valuation Allowance	$ (6,180)	$ (6,643)
Provision	703	(570)
Transfer to (from) Liability for indemnification obligations (Other liabilities)	15	(25)
Sales of loans	0	457
Ending balance - Valuation Allowance	$ (5,462)	$ (6,781)

Loans Held for Sale - Schedule of Gains on Loans Held for Sale, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
MSRs retained on transfers of forward mortgage loans	$ 34,260	$ 6,561
Gain on sales of loans, net	20,593	14,821
Change in fair value of IRLCs	(8,618)	5,714
Change in fair value of loans held for sale	(4,981)	159
Gain (loss) on economic hedge instruments	0	(7,192)
Other	(1,273)	(171)
Gain on loans held for sale, net	5,721	13,331
Intersegment Eliminations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on loans held for sale, net	(35,393)	0
Gains on derivatives	(35,400)
Gain (loss) on Sale of Forward Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	(18,567)	6,418
Repurchased Ginnie Mae Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sales of loans, net	$ 4,900	$ 1,842

Reverse Mortgages - Schedule of Loans Held For Investment and HMBS Related Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Receivables [Abstract]
Loans held for investment - reverse mortgages, beginning balance	$ 6,997,127	$ 6,269,596
Cumulative effect of fair value election		47,038
Originations	326,735	294,932
Repayments (principal payments received)	(314,153)	(175,095)
Loans held for sale, at fair value	(901)	(578)
Receivables, net	(116)	(129)
REO (Other assets)	(111)	(265)
Change in fair value	35,793	133,322
Securitized loans (pledged to HMBS-Related Borrowings)	6,874,880	6,438,810
Un-securitized loans	169,494	130,011
Loans held for investment, reverse mortgages, ending balance	7,044,374	6,568,821
Home Equity Conversion Mortgage-Backed Securities Related Borrowings At Fair Value	(6,772,711)	(6,063,434)
Securitization of HECM loans accounted for as a financing	(287,830)	(312,249)
Additional proceeds from securitization of HECM loans and tails	(12,565)	(8,414)
Repayments (principal payments received)	311,562	172,429
Change in fair value	(16,651)	(111,423)
Home Equity Conversion Mortgage-Backed Securities Related Borrowings At Fair Value	(6,778,195)	(6,323,091)
Securitized loans (pledged to HMBS-Related Borrowings)	$ (6,778,195)	$ (6,323,091)

Reverse Mortgages - Schedule of Reverse Mortgage Revenue, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Receivables [Abstract]
Gain on new originations	$ 17,107	$ 16,784
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	2,035	5,115
Change in fair value included in earnings, net	19,142	21,899
Loan fees and other	2,684	898
Reverse mortgage revenue, net	$ 21,826	$ 22,797

- Definition

A gain (loss) realized on a transfer, accounted for as a sale, of all or a portion of financial assets in which the transferor surrenders control and receives consideration other than a beneficial interest in the assets transferred. Reflects the amount of sales proceeds in excess of, or deficient from, the sum of the carrying amounts of transferred financial assets plus transaction costs.

+ References + Details

Advances - Schedule of Advances Paid on Behalf of Borrowers or on Foreclosed Properties (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Advances On Behalf of Borrowers [Line Items]
Advances, gross	$ 792,837	$ 834,512
Allowance for losses	(6,159)	(6,273)	$ (7,373)	$ (9,925)
Advances, net	786,678	828,239
Principal and Interest
Advances On Behalf of Borrowers [Line Items]
Advances, gross	258,428	277,132
Taxes and Insurance
Advances On Behalf of Borrowers [Line Items]
Advances, gross	348,659	364,593
Foreclosures, Bankruptcy, REO and Other
Advances On Behalf of Borrowers [Line Items]
Advances, gross	$ 185,750	$ 192,787

Advances - Schedule of Activity in Advances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Advances [Roll Forward]
Beginning balance	$ 828,239	$ 1,056,523
New advances	203,400	243,545
Sales of advances	(133)	(228)
Collections of advances and other	(244,942)	(277,585)
Net decrease (increase) in allowance for losses	114	2,552
Ending balance	$ 786,678	$ 1,024,807

Advances - Schedule of Changes in Allowance for Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 6,273	$ 9,925
Provision	1,502	(761)
Net charge-offs and other	(1,616)	(1,791)
Ending balance	$ 6,159	$ 7,373

Mortgage Servicing - Schedule of Activity Related to MSRs - Fair Value Measurement Method (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	$ 1,294,817	$ 1,486,395
Sales and other transfers	0	(56)
Recognized on the sale of residential mortgage loans	34,260	5,930
Purchase of MSRs	36,778	31,490
Servicing transfers and adjustments	(528)	(264,523)
Changes in fair value:
Changes in valuation inputs or other assumptions	84,015	(160,661)
Realization of expected future cash flows and other changes	(49,125)	(48,347)
Ending balance	1,400,217	1,050,228
Reclassification to changes in valuation inputs or assumptions	4,500
Fair Value Agency Mortgage Servicing Rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	578,957	714,006
Sales and other transfers	0	0
Recognized on the sale of residential mortgage loans	34,260	5,930
Purchase of MSRs	36,778	31,490
Servicing transfers and adjustments	29	(263,630)
Changes in fair value:
Changes in valuation inputs or other assumptions	82,486	(166,532)
Realization of expected future cash flows and other changes	(23,847)	(27,037)
Ending balance	708,663	294,227
Fair Value Non-Agency Mortgage Servicing Rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	715,860	772,389
Sales and other transfers	0	(56)
Recognized on the sale of residential mortgage loans	0	0
Purchase of MSRs	0	0
Servicing transfers and adjustments	(557)	(893)
Changes in fair value:
Changes in valuation inputs or other assumptions	1,529	5,871
Realization of expected future cash flows and other changes	(25,278)	(21,310)
Ending balance	$ 691,554	$ 756,001

Mortgage Servicing - Schedule of Activity Related to MSRs - Fair Value Measurement Method (Footnote) (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 20, 2020	Mar. 31, 2021	Mar. 31, 2020
Servicing Assets at Fair Value [Line Items]
Servicing transfers and adjustments		$ 528	$ 264,523
New Residential Investment Corp
Servicing Assets at Fair Value [Line Items]
Servicing transfers and adjustments	$ 263,700

Mortgage Servicing - Schedule of Composition of Servicing UPB (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Transfers and Servicing [Abstract]
Owned MSRs	$ 91,284,985	$ 90,174,495	$ 70,741,200
NRZ pledged MSRs	61,841,181	64,061,198	70,914,910
Total recognized MSRs	$ 153,126,166	$ 154,235,693	$ 141,656,110

Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Transfers and Servicing [Abstract]
Servicing	$ 63,892	$ 55,408
Subservicing	3,487	5,190
NRZ	80,385	119,669
Servicing and Subservicing fees, total	147,764	180,267
Late charges	9,231	14,639
Custodial accounts (float earnings)	1,008	6,141
Loan collection fees	2,949	4,256
Recording Fees	3,651	2,558
Other, net	7,135	3,622
Ancillary income	23,974	31,216
Servicing and subservicing fees	$ 171,738	$ 211,483

Mortgage Servicing - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Transfers and Servicing [Abstract]
UPB of MSRs sold	$ 7.2	$ 17.6
Float balances	2,400.0	1,900.0	$ 1,700.0
UPB of loans acquired	$ 6,000.0	$ 2,900.0

Rights to MSRs - Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Servicing Liabilities at Fair Value [Line Items]
MSRs, at fair value	$ 1,400,217	$ 1,050,228	$ 1,294,817	$ 1,486,395
Due from NRZ	11,653		4,611
Other financing liabilities, at fair value	559,184		576,722
Interest expense	37,850	6,594
PMC MSR Agreements
Servicing Liabilities at Fair Value [Line Items]
Changes in fair value	0	40,720
Runoff and settlement	0	7,492
New Residential Investment Corp
Servicing Liabilities at Fair Value [Line Items]
MSRs, at fair value	550,364		566,952
Due to NRZ	94,535		94,691
Servicing fees collected on behalf of NRZ	80,385	119,669
Less: Subservicing fee retained by Ocwen	23,991	29,331
Net servicing fees remitted to NRZ	56,394	90,338
Changes in fair value	(1,551)	32,749
Runoff and settlement	17,616	48,375
Other	2,479	2,620
Interest expense	37,850	6,594
New Residential Investment Corp \| Subservicing Fees and Reimbursable Expenses
Servicing Liabilities at Fair Value [Line Items]
Due from NRZ	11,653		4,611
New Residential Investment Corp \| Original Rights to MSRs Agreements
Servicing Liabilities at Fair Value [Line Items]
Other financing liabilities, at fair value	550,364		$ 566,952
Changes in fair value	(1,551)	(7,068)
Runoff and settlement	17,616	15,741
New Residential Investment Corp \| Original Rights to MSRs Agreements \| Reclassification
Servicing Liabilities at Fair Value [Line Items]
Changes in fair value		2,000
New Residential Investment Corp \| 2017 Agreements and New RMSR Agreements
Servicing Liabilities at Fair Value [Line Items]
Changes in fair value	0	(903)
Runoff and settlement	$ 0	$ 25,142

Rights to MSRs - Schedule of Activity Related to Financing Liability - MSRs Pledged (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Servicing Assets at Fair Value [Line Items]
Beginning balance, Financing Liability		$ 950,593
Sales		(226)
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements	$ 0	(263,344)
Ending balance, Financing Liability		601,684
New Residential Investment Corp
Servicing Assets at Fair Value [Line Items]
Changes in fair value	(1,551)	32,749
Original Rights to MSRs Agreements
Servicing Assets at Fair Value [Line Items]
Beginning balance, Financing Liability	566,952	603,046
Changes in fair value	1,551	7,068
Runoff and settlement	(17,616)	(15,741)
Calls	(523)	(2,668)
Ending balance, Financing Liability	550,364	591,705
Original Rights to MSRs Agreements \| New Residential Investment Corp
Servicing Assets at Fair Value [Line Items]
Changes in fair value	(1,551)	(7,068)
Original Rights to MSRs Agreements \| New Residential Investment Corp \| Reclassification
Servicing Assets at Fair Value [Line Items]
Changes in fair value		2,000
2017 Agreements and New RMSR Agreements
Servicing Assets at Fair Value [Line Items]
Beginning balance, Financing Liability		35,445
Changes in fair value		903
Runoff and settlement		(25,142)
Calls		(1,227)
Ending balance, Financing Liability		9,979
PMC MSR Agreements
Servicing Assets at Fair Value [Line Items]
Beginning balance, Financing Liability		312,102
Sales		(226)
Changes in fair value		(40,720)
Runoff and settlement		(7,492)
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements		(263,664)
Ending balance, Financing Liability		0
Changes in fair value	$ 0	$ 40,720

Rights to MSRs - UPB of Loans Serviced on behalf of NRZ (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold	$ 64,300,000
New Residential Investment Corp
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold	64,332,200
Outstanding servicing advances	535,500
New Residential Investment Corp \| Mortgage Servicing Rights Title Retained
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold	13,673,665
New Residential Investment Corp \| Mortgage Servicing Rights Title Transferred
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold	48,153,327
New Residential Investment Corp \| Subservicing Assets
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold	$ 2,505,208

Rights to MSRs - Narrative (Details) $ in Thousands				1 Months Ended
Rights to MSRs - Narrative (Details) $ in Thousands	Oct. 01, 2020 USD ($) Loan	Sep. 01, 2020 USD ($) Loan	Mar. 29, 2019	Jan. 31, 2018 USD ($)	Sep. 30, 2017 USD ($)	Mar. 31, 2021 USD ($)	Feb. 20, 2020 USD ($)
Servicing Assets at Fair Value [Line Items]
Proceeds from sale of mortgage servicing rights accounted for as financing				$ 279,600	$ 54,600
UPB of rights to MSRs sold						$ 64,300,000
Initial term to subservice mortgage servicing rights (years)			3 years
Unpaid principal balance of loans related to termination							$ 34,200,000
New Residential Investment Corp
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold						64,332,200
Unpaid principal balance of loans related to termination	$ 16,000,000	$ 18,200,000
Number of loans de-boarded from servicing portfolio \| Loan	136,500	133,718
New Residential Investment Corp \| Mortgage Servicing Rights Title Retained
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold						13,673,665
2017 Agreements and New RMSR Agreements \| New Residential Investment Corp \| Mortgage Servicing Rights Title Retained
Servicing Assets at Fair Value [Line Items]
UPB of rights to MSRs sold						$ 13,700,000

Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Government-insured loan claims - Forward	$ 101,598	$ 103,058
Government-insured loan claims - Reverse	29,138	32,887
Due from custodial accounts	18,596	19,393
Subservicing fees and reimbursable expenses - Due from NRZ	11,653	4,611
Reimbursable expenses	11,360	4,970
Other	4,850	1,087
Servicing receivable, total	177,195	166,006
Income taxes receivable	39,233	57,503
Other receivables	2,828	3,200
Other receivables, gross	219,256	226,709
Allowance for losses	(41,047)	(39,044)
Receivables, net	$ 178,209	$ 187,665

Receivables - Narrative (Detail) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Servicing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for financing notes	$ 40.4	$ 38.3

Receivables - Schedule of Changes in allowance of Government-Insured Loan Claims (Details) - Government Insured Loans Claims - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 38,339	$ 56,868
Provision	4,958	5,072
Charge-offs and other, net	(2,860)	(3,837)
Ending balance	$ 40,437	$ 58,103

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other Assets [Abstract]
Contingent loan repurchase asset	$ 399,126	$ 480,221
Prepaid expenses	26,725	21,176
Derivatives, at fair value	15,483	23,246
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,173	15,173
REO	8,827	7,771
Prepaid lender fees, net	7,071	9,556
Deferred tax asset, net	3,634	3,543
Security deposits	2,072	2,222
Mortgage backed securities, at fair value	1,613	2,019
Other	5,147	6,556
Other assets	$ 484,871	$ 571,483

Borrowings - Schedule of Match Funded Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Advance match funded liabilities (related to VIEs)	$ 550,437	$ 581,288
Advance Match Funded Liabilities
Debt Instrument [Line Items]
Borrowing Capacity	795,000
Available borrowing capacity	$ 244,563
Weighted average interest rate	1.83%	1.96%
Advance match funded liabilities (related to VIEs)	$ 550,437	$ 581,288
Total Ocwen Master Advance Receivables Trust (OMART)
Debt Instrument [Line Items]
Borrowing Capacity	725,000
Available borrowing capacity	$ 190,479
Weighted average interest rate	1.79%	1.93%
Advance match funded liabilities (related to VIEs)	$ 534,521	$ 564,396
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes - Series 2015-VF5
Debt Instrument [Line Items]
Borrowing Capacity	250,000
Available borrowing capacity	$ 190,479
Weighted average interest rate	4.22%	4.26%
Advance match funded liabilities (related to VIEs)	$ 59,521	$ 89,396
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes, Series 2020-T1
Debt Instrument [Line Items]
Borrowing Capacity	475,000
Available borrowing capacity	$ 0
Weighted average interest rate	1.49%	1.49%
Advance match funded liabilities (related to VIEs)	$ 475,000	$ 475,000
Total Ocwen Freddie Advance Funding Facility (OFAF) \| Advance Receivables Backed Notes, Series 2015-VF1
Debt Instrument [Line Items]
Borrowing Capacity	70,000
Available borrowing capacity	$ 54,084
Weighted average interest rate	3.22%	3.26%
Advance match funded liabilities (related to VIEs)	$ 15,916	$ 16,892

Borrowings - Schedule of Match Funded Liabilities (Footnote) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Advance match funded liabilities	$ 550,437,000	$ 581,288,000
Advance Receivables Backed Notes - Series 2015-VF5
Debt Instrument [Line Items]
Basis spread on variable rate	4.00%
Advance Receivables Backed Notes, Series 2015-VF1
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Advance Match Funded Liabilities
Debt Instrument [Line Items]
Available borrowing capacity based on amount of eligible collateral	$ 0
Available borrowing capacity	244,563,000
Maximum borrowing capacity	795,000,000
Advance match funded liabilities	$ 550,437,000	$ 581,288,000
Weighted average interest rate	1.83%	1.96%
Total Ocwen Master Advance Receivables Trust (OMART)
Debt Instrument [Line Items]
Available borrowing capacity	$ 190,479,000
Maximum borrowing capacity	725,000,000
Advance match funded liabilities	$ 534,521,000	$ 564,396,000
Weighted average interest rate	1.79%	1.93%
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes - Series 2015-VF5
Debt Instrument [Line Items]
Available borrowing capacity	$ 190,479,000
Maximum borrowing capacity	250,000,000
Advance match funded liabilities	$ 59,521,000	$ 89,396,000
Weighted average interest rate	4.22%	4.26%
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes, Series 2020-T1
Debt Instrument [Line Items]
Available borrowing capacity	$ 0
Maximum borrowing capacity	475,000,000
Advance match funded liabilities	$ 475,000,000	$ 475,000,000
Weighted average interest rate	1.49%	1.49%
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes, Series 2020-T1 \| Minimum
Debt Instrument [Line Items]
Weighted average interest rate	1.28%
Total Ocwen Master Advance Receivables Trust (OMART) \| Advance Receivables Backed Notes, Series 2020-T1 \| Maximum
Debt Instrument [Line Items]
Weighted average interest rate	5.42%

Borrowings - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Mar. 04, 2021	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Senior notes, net		$ 542,927	$ 311,898
Covenant compliance, consolidated tangible net worth at period end		$ 275,000
Warrants exercise price	$ 26.82
Warrants to purchase, common stock shares	1,184,768
Fair value of warrants issued	$ 16,500
6.375% Senior Notes, Due 2021
Debt Instrument [Line Items]
Redemption price	100.00%
8.375% Senior Secured Notes Due In 2022
Debt Instrument [Line Items]
Redemption price		102.094%
Loss on debt extinguishment	$ 7,100
7.875% Senior Notes, Due 2026
Debt Instrument [Line Items]
Redemption price	7.875%
7.875% Senior Notes, Due 2026 \| Prior to March 15, 2023
Debt Instrument [Line Items]
Redemption price		100.00%
Percentage of premium on outstanding principal amount		1.00%
7.875% Senior Notes, Due 2026 \| On or Prior to March 15, 2023
Debt Instrument [Line Items]
Redemption price		107.875%
Redemption price, percentage of principal amount		35.00%
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Debt Instrument [Line Items]
Interest rate (as a percent)		12.00%
Minimum unrestricted cash		$ 50,000
Covenant compliance, consolidated tangible net worth at period end		275,000
Fair value of warrants issued	$ 16,500	16,500
Proceeds from issuance of debt and warrants	175,000
Proceeds from issuance of senior secured notes	158,500
Debt issuance cost in connection with warrants	800
Discount		(24,500)
Senior Notes
Debt Instrument [Line Items]
Senior notes, net		599,500	313,052
Discount		(42,732)	0
Senior Notes \| 7.875% Senior Notes, Due 2026
Debt Instrument [Line Items]
Discount	(2,100)	(2,025)	0
Senior Notes \| 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Debt Instrument [Line Items]
Discount		(40,707)	0
Secured Debt \| 8.375% Senior Secured Notes Due In 2022
Debt Instrument [Line Items]
Senior notes, net		$ 0	291,509
Interest rate (as a percent)		8.375%
Secured Debt \| 7.875% Senior Notes, Due 2026
Debt Instrument [Line Items]
Senior notes, net	400,000	$ 400,000	0
Interest rate (as a percent)		7.875%
Secured Debt \| 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Debt Instrument [Line Items]
Senior notes, net	199,500	$ 199,500	$ 0
Secured Debt \| 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 \| Prior to March 4, 2022
Debt Instrument [Line Items]
Interest rate (as a percent)		7.00%
Minimum
Debt Instrument [Line Items]
Restrictive liquidity requirements		$ 125,000
Minimum \| 7.875% Senior Notes, Due 2026 \| On or Prior to March 15, 2023
Debt Instrument [Line Items]
Percentage of principal amount outstanding post redemption		65.00%
Senior Secured Term Loan
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 8,400

Borrowings - Schedule of Financing Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
HMBS-related borrowings	$ 6,778,195	$ 6,772,711	$ 6,323,091	$ 6,063,434
Other financing liabilities, at fair value	559,184	576,722
Total Financing liabilities	7,337,379	7,349,433
Residential Asset Securitization Trust
Debt Instrument [Line Items]
Other financing liabilities, at fair value	8,820	9,770
Secured Debt
Debt Instrument [Line Items]
Total Financing liabilities	457,354	438,566
Secured Debt \| Mortgage Loan Warehouse Facilities
Debt Instrument [Line Items]
Total Financing liabilities	609,432	451,713
Master Repurchase Agreement \| Secured Debt
Debt Instrument [Line Items]
Total Financing liabilities	0	0
Mortgage Warehouse Agreement \| Secured Debt
Debt Instrument [Line Items]
Total Financing liabilities	14,958	11,715
Mortgage Warehouse Agreement \| Secured Debt
Debt Instrument [Line Items]
Total Financing liabilities	$ 99,481	73,134
Total Servicing Lines of Credit \| Mortgage Loan Warehouse Facilities
Debt Instrument [Line Items]
Interest rate (as a percent)	4.77%
Original Rights to MSRs Agreements \| Financing Liability - MSRs Pledged
Debt Instrument [Line Items]
Other financing liabilities, at fair value	$ 550,364	$ 566,952
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	0.11%	0.14%
London Interbank Offered Rate (LIBOR) \| HMBS-Related Borrowings
Debt Instrument [Line Items]
Basis spread on variable rate	2.45%
London Interbank Offered Rate (LIBOR) \| Residential Asset Securitization Trust
Debt Instrument [Line Items]
Basis spread on variable rate	0.45%
London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
Interest rate at index floor rate	0.25%
London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
Interest rate at index floor rate	5.25%
London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement \| Secured Debt
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Interest rate at index floor rate	3.25%
London Interbank Offered Rate (LIBOR) \| Ginnie Mae Mortgage Servicing Rights Financing Facility \| Secured Debt \| Mortgage Loan Warehouse Facilities
Debt Instrument [Line Items]
Basis spread on variable rate	4.50%
Interest rate at index floor rate	0.50%
London Interbank Offered Rate (LIBOR) \| Minimum \| Residential Asset Securitization Trust
Debt Instrument [Line Items]
Debt instrument, interest rate	4.25%
London Interbank Offered Rate (LIBOR) \| Maximum \| Residential Asset Securitization Trust
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, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Other secured borrowings	$ 7,337,379	$ 7,349,433
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A
Line of Credit Facility [Line Items]
Interest rate (as a percent)	5.07%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.11%	0.14%
Secured Debt
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	$ 25,216
Available borrowing capacity	0
Other secured borrowings	457,354	$ 438,566
Long-term Debt	1,066,022	1,069,161
Unamortized debt issuance costs - SSTL	(764)	(5,761)
Discount - SSTL	$ 0	$ (357)
Weighted average interest rate	3.68%	4.55%
Secured Debt \| Senior Secured Term Loan
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	$ 0
Available borrowing capacity	0
Other secured borrowings	0	$ 185,000
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	85,109
Available borrowing capacity	0
Other secured borrowings	189,891	195,773
Secured Debt \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	1,000
Other secured borrowings	0	0
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	50,000
Available borrowing capacity	38,660
Other secured borrowings	161,340	80,081
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	50,000
Available borrowing capacity	0
Other secured borrowings	0	0
Secured Debt \| Participation Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	120,000
Available borrowing capacity	0
Other secured borrowings	0	0
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	49,231
Other secured borrowings	40,769	63,281
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	1,000
Other secured borrowings	0	0
Secured Debt \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	35,042
Other secured borrowings	14,958	11,715
Secured Debt \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	519
Available borrowing capacity	0
Other secured borrowings	99,481	73,134
Secured Debt \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	48,671
Available borrowing capacity	0
Other secured borrowings	51,329	27,729
Secured Debt \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	0
Other secured borrowings	51,664	0
Secured Debt \| Agency Mortgage Servicing Rights Financing Facility
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	0
Other secured borrowings	250,000	210,755
Secured Debt \| Ginnie Mae Mortgage Servicing Rights Financing Facility
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	25,216
Available borrowing capacity	0
Long-term Debt	99,784	112,022
Secured Debt \| Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	0
Long-term Debt	62,297	68,313
Secured Debt \| OASIS Series 2014-1
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	0
Available borrowing capacity	0
Long-term Debt	45,273	47,476
Secured Debt \| Total Servicing Lines of Credit
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	379,515
Available borrowing capacity	124,933
Short term and long term debt	$ 1,066,786	1,075,279
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.90%
Interest rate at index floor rate	0.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.50%
Interest rate at index floor rate	5.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Interest rate at index floor rate	3.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Interest rate at index floor rate	2.50%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Agency Mortgage Servicing Rights Financing Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	4.50%
Secured Debt \| Eurodollar \| Senior Secured Term Loan
Line of Credit Facility [Line Items]
Basis spread on variable rate	6.00%
Interest rate at index floor rate	1.00%
Secured Debt \| Minimum \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Secured Debt \| Minimum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.25%
Secured Debt \| Minimum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Secured Debt \| Maximum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.50%
Secured Debt \| Maximum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Mortgage Loan Warehouse Facilities
Line of Credit Facility [Line Items]
Available borrowing capacity	$ 0
Mortgage Loan Warehouse Facilities \| Total Servicing Lines of Credit
Line of Credit Facility [Line Items]
Interest rate (as a percent)	4.77%
Mortgage Loan Warehouse Facilities \| Secured Debt
Line of Credit Facility [Line Items]
Uncommitted available borrowing capacity	$ 354,299
Available borrowing capacity	124,933
Other secured borrowings	$ 609,432	$ 451,713
Weighted average interest rate	2.93%
Mortgage Loan Warehouse Facilities \| Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Line of Credit Facility [Line Items]
Interest rate at index floor rate	3.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| London Interbank Offered Rate (LIBOR) \| Ginnie Mae Mortgage Servicing Rights Financing Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	4.50%
Interest rate at index floor rate	0.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| Eurodollar
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| Minimum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.20%
Mortgage Loan Warehouse Facilities \| Secured Debt \| Maximum \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.75%

Borrowings - Schedule of Other Secured Borrowings (Footnote) (Details) - USD ($)		3 Months Ended	12 Months Ended
	Mar. 04, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 30, 2021	Feb. 28, 2021	Feb. 01, 2021	Jan. 31, 2021
Senior Secured Term Loan
Debt Instrument [Line Items]
Repayment of SSTL	$ 185,000,000.0
Loss on debt extinguishment	$ 8,400,000
Percentage of prepayment premium	2.00%
Redemption premium	$ 3,700,000
Master Repurchase Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 275,000,000.0
Borrowings available on committed basis		$ 160,000,000.0
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A
Debt Instrument [Line Items]
Interest rate (as a percent)		5.07%
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		0.11%	0.14%
Secured Debt
Debt Instrument [Line Items]
Available borrowing capacity		$ 0
Unamortized debt issuance costs		764,000	$ 5,761,000
Secured Debt \| Senior Secured Term Loan
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Available borrowing capacity		1,000,000
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Available borrowing capacity		38,660,000
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Available borrowing capacity		49,231,000
Secured Debt \| Participation Agreement
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Available borrowing capacity		35,042,000
Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Available borrowing capacity		0
Secured Debt \| Agency Mortgage Servicing Rights Financing Facility
Debt Instrument [Line Items]
Available borrowing capacity		0
Maximum borrowing capacity		350,000,000.0		$ 250,000,000.0
Secured Debt \| Ginnie Mae Mortgage Servicing Rights Financing Facility
Debt Instrument [Line Items]
Available borrowing capacity		0
Maximum borrowing capacity		125,000,000.0
Secured Debt \| Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A
Debt Instrument [Line Items]
Available borrowing capacity		0
Debt instrument, face amount		$ 100,000,000.0
Secured Debt \| Eurodollar \| Senior Secured Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate		6.00%
Interest rate at index floor rate		1.00%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Master Repurchase Agreement
Debt Instrument [Line Items]
Basis spread on variable rate		1.90%
Interest rate at index floor rate		0.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Basis spread on variable rate		3.50%
Interest rate at index floor rate		5.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%
Interest rate at index floor rate		3.25%
Secured Debt \| London Interbank Offered Rate (LIBOR) \| Agency Mortgage Servicing Rights Financing Facility
Debt Instrument [Line Items]
Basis spread on variable rate		4.50%
Secured Debt \| Senior Secured Term Loan
Debt Instrument [Line Items]
Unamortized debt issuance costs			$ 4,900,000
Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Beneficial interest		100.00%
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 250,000,000.0
Borrowings available on committed basis		$ 200,000,000.0
Beneficial interest		100.00%
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50,000,000.0
Secured Debt \| Master Repurchase Agreement
Debt Instrument [Line Items]
Borrowings available on committed basis		90,000,000.0
Secured Debt \| Participation Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 120,000,000.0
Beneficial interest		100.00%
Mortgage Loan Warehouse Facilities
Debt Instrument [Line Items]
Available borrowing capacity		$ 0
Mortgage Loan Warehouse Facilities \| Secured Debt
Debt Instrument [Line Items]
Available borrowing capacity		$ 124,933,000
Mortgage Loan Warehouse Facilities \| Secured Debt \| Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate		3.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| Eurodollar \| Repurchased Ginnie Mae Loans
Debt Instrument [Line Items]
Basis spread on variable rate		3.75%
Mortgage Loan Warehouse Facilities \| Secured Debt \| London Interbank Offered Rate (LIBOR) \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Interest rate at index floor rate		3.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| London Interbank Offered Rate (LIBOR) \| Ginnie Mae Mortgage Servicing Rights Financing Facility
Debt Instrument [Line Items]
Basis spread on variable rate		4.50%
Interest rate at index floor rate		0.50%
Mortgage Loan Warehouse Facilities \| Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Borrowings available on committed basis		$ 50,000,000.0
Mortgage Loan Warehouse Facilities \| Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		100,000,000.0		$ 150,000,000.0	$ 100,000,000.0	$ 150,000,000.0	$ 100,000,000.0
Mortgage Loan Warehouse Facilities \| Secured Debt \| Mortgage Warehouse Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 100,000,000.0

Borrowings - Schedule of Senior Notes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 04, 2021
Debt Instrument [Line Items]
Senior notes	$ 542,927	$ 311,898
Senior Notes
Debt Instrument [Line Items]
Senior notes	599,500	313,052
Discount	(42,732)	0
Unamortized debt issuance costs	(13,841)	(968)
Fair value adjustments	0	(186)
Long-term Debt	542,927	311,898
7.875% Senior Notes, Due 2026 \| Secured Debt
Debt Instrument [Line Items]
Senior notes	$ 400,000	0	$ 400,000
Interest rate (as a percent)	7.875%
7.875% Senior Notes, Due 2026 \| Senior Notes
Debt Instrument [Line Items]
Discount	$ (2,025)	0	(2,100)
Unamortized debt issuance costs	(6,598)
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Debt Instrument [Line Items]
Discount	$ (24,500)
Interest rate (as a percent)	12.00%
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 \| Secured Debt
Debt Instrument [Line Items]
Senior notes	$ 199,500	0	$ 199,500
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 \| Senior Notes
Debt Instrument [Line Items]
Discount	(40,707)	0
Unamortized debt issuance costs	$ (7,243)	0
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 \| Payment in Kind (PIK) Note
Debt Instrument [Line Items]
Interest rate (as a percent)	13.25%
6.375% Senior Notes, Due 2021 \| Senior Unsecured Notes
Debt Instrument [Line Items]
Senior notes	$ 0	21,543
Interest rate (as a percent)	6.375%
8.375% Senior Secured Notes Due In 2022 \| Secured Debt
Debt Instrument [Line Items]
Senior notes	$ 0	291,509
Interest rate (as a percent)	8.375%
8.375% Senior Secured Notes Due In 2022 \| Senior Notes
Debt Instrument [Line Items]
Unamortized debt issuance costs		$ (968)

Borrowings - Schedule of Senior Notes (Footnote) (Details) - USD ($) $ in Millions		3 Months Ended
	Mar. 04, 2021	Mar. 31, 2021
Debt Instrument [Line Items]
Fair value of warrants issued	$ (16.5)
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Debt Instrument [Line Items]
Discount		$ 24.5
Fair value of warrants issued	$ (16.5)	$ (16.5)

Borrowings - Schedule of Redemption Prices (Details)	3 Months Ended
Borrowings - Schedule of Redemption Prices (Details)	Mar. 31, 2021
2023
Debt Instrument [Line Items]
Redemption price	103.938%
2024
Debt Instrument [Line Items]
Redemption price	101.969%
2025 and thereafter
Debt Instrument [Line Items]
Redemption price	100.00%

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Contingent loan repurchase liability	$ 399,126	$ 480,221
Due to NRZ - Advance collections and servicing fees	94,535	94,691
Other accrued expenses	63,648	87,898
Liability for indemnification obligations	43,289	41,920
Accrued legal fees and settlements	40,356	38,932
Servicing-related obligations	39,930	35,237
Checks held for escheat	39,842	35,654
Liability for uncertain tax positions	24,386	16,188
Lease liability	23,922	27,393
MSR purchase price holdback	16,140	20,923
Derivatives, at fair value	10,012	4,638
Liability for unfunded India gratuity plan	5,797	6,051
Accrued interest payable	5,502	4,915
Liability for unfunded pension obligation	12,587	12,662
Other	15,941	16,652
Other liabilities ($10,012 and $4,638 carried at fair value)	$ 835,013	$ 923,975

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Mar. 04, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Aug. 13, 2020	Aug. 12, 2020	Feb. 03, 2020
Subsidiary, Sale of Stock [Line Items]
Share repurchase program authorized amount								$ 5.0
Shares repurchased (shares)				377,484
Repurchase of common stock				$ 4.5
Average price paid per share				$ 11.90
Payments for commissions				$ 0.1
Additional shares issued on reverse stock split rounding			4,692
Common stock outstanding before stock split							130,013,696
Common stock, shares, outstanding		8,701,530			8,687,750	8,672,272
Common stock, shares authorized		13,333,333				13,333,333	200,000,000
Common stock, par value		$ 0.01
Warrants to purchase, common stock shares	1,184,768
Percentage ownership upon exercise of warrants	12.00%
Warrants exercise price	$ 26.82
Fair value of warrants issued	$ (16.5)
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027
Subsidiary, Sale of Stock [Line Items]
Fair value of warrants issued	(16.5)	$ (16.5)
Debt issuance cost in connection with warrants	$ 0.8
Maximum \| Shareholders Approval
Subsidiary, Sale of Stock [Line Items]
Ownership percentage on exercise of warrant	19.90%
Maximum \| Regulatory Approvals
Subsidiary, Sale of Stock [Line Items]
Ownership percentage on exercise of warrant	9.90%

Derivative Financial Instruments and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Derivative Notional Balance
Notional balance	$ 1,627,127		$ 1,254,905
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	15,483		23,246
Derivative liability, notional amount	1,445,000		420,000
Derivative liability, fair value	(10,012)		(4,638)
Gains (losses) on derivatives	(21,816)	$ 33,555
Forward Sales Of Reverse Loans
Derivative Notional Balance
Notional balance	70,000		30,000
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	100		34
Derivative liability, notional amount	35,000		20,000
Derivative liability, fair value	(152)		(84)
Gains (losses) on derivatives	(2)	(143)
Forward loans IRLCs
Derivative Notional Balance
Notional balance	916,930		619,713
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	13,622		22,224
Gains (losses) on derivatives	(8,602)	5,714
Reverse loans IRLCs
Derivative Notional Balance
Notional balance	50,197		11,692
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	967		482
Gains (losses) on derivatives	485	(115)
TBA forward MBS trades
Derivative Notional Balance
Notional balance	590,000		0
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	794		0
Derivative liability, notional amount	10,000		400,000
Derivative liability, fair value	(314)		(4,554)
Interest Rate Swap
Derivative Notional Balance
Notional balance	0		593,500
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	0		504
Derivative liability, notional amount	1,400,000		0
Derivative liability, fair value	(9,532)		0
Gains (losses) on derivatives	0	(7,192)
Interest Rate Swap Futures And TBA Forward MBS Trades
Fair value of derivative assets (liabilities) at:
Gains (losses) on derivatives	(13,682)	35,291
Other
Derivative Notional Balance
Notional balance	0		0
Fair value of derivative assets (liabilities) at:
Derivatives, at fair value	0		2
Derivative liability, notional amount	0		0
Derivative liability, fair value	(14)		$ 0
Gains (losses) on derivatives	$ (16)	$ 0

Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unpaid principal balance of mortgage servicing rights portfolio hedged	$ 68,000.0
Foreign currency re-measurement exchange gains (losses)	$ 0.2	$ (0.9)

Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt securities:
Interest expense	$ 28,452	$ 29,982
Senior Notes
Debt securities:
Interest expense	9,495	6,661
Mortgage Loan Warehouse Facilities
Debt securities:
Interest expense	5,283	3,460
MSR Financing Facilities
Debt securities:
Interest expense	4,572	5,037
Advance Match Funded Liabilities
Debt securities:
Interest expense	4,496	5,665
Senior Secured Term Loan
Debt securities:
Interest expense	2,957	6,794
Other
Debt securities:
Interest expense	$ 1,649	$ 2,365

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 3,096	$ (61,856)
Coronavirus Aid, Relief, And Economic Security Act (CARES Act)
Income Tax Contingency [Line Items]
Income tax expense (benefit)	(64,800)
Coronavirus Aid, Relief, And Economic Security Act (CARES Act) \| Domestic Tax Authority
Income Tax Contingency [Line Items]
Income tax expense (benefit)	(62,900)
Coronavirus Aid, Relief, And Economic Security Act (CARES Act) \| Foreign Tax Authority
Income Tax Contingency [Line Items]
Income tax expense (benefit)	(1,900)
Exclusive of Impact of CARES Act
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 3,100	$ 2,900

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

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, 2021	Mar. 31, 2020
Basic earnings (loss) per share
Net income (loss)	$ 8,543	$ (25,489)
Weighted average shares of common stock	8,688,009	8,990,589
Basic income (loss) per share	$ 0.98	$ (2.84)
Common stock warrants	34,309	0
Common stock awards	155,174	0
Dilutive weighted average shares of common stock	8,877,492	8,990,589
Diluted income (loss) per share	$ 0.96	$ (2.84)
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive Securities (in shares)	180,225	249,188
Market Based
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share
Anti-dilutive Securities (in shares)	157,581	125,397

Business Segment Reporting - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 207,594,000	$ 253,842,000
Income (loss) before income taxes	$ 11,639,000	(87,345,000)
Interest expense related to fund servicing advances and other servicing assets		10,500,000
Reverse Servicing
Segment Reporting Information [Line Items]
Revenues		16,000,000.0
Income (loss) before income taxes		$ 12,200,000

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Results of Operations
Servicing and subservicing fees	$ 171,738	$ 211,483
Reverse mortgage revenue, net	21,826	22,797
Gain on loans held for sale, net	5,721	13,331
Other revenue, net	8,309	6,231
Revenues	207,594	253,842
MSR valuation adjustments, net	21,208	(174,120)
Operating expenses	139,629	137,214
Other (expense) income:
Interest income	3,936	5,395
Interest expense	(28,452)	(29,982)
Pledged MSR liability expense	(37,850)	(6,594)
Loss on extinguishment of debt	(15,458)	0
Other	290	1,328
Total other expense, net	(77,534)	(29,853)
Income (loss) before income taxes	11,639	(87,345)
Total Assets
Balance	10,771,788	9,986,024	$ 10,651,127
Operating Segments \| Servicing
Results of Operations
Servicing and subservicing fees	169,354	211,469
Reverse mortgage revenue, net	2,035	16,673
Gain on loans held for sale, net	3,521	229
Other revenue, net	502	1,159
Revenues	175,412	229,530
MSR valuation adjustments, net	(22,690)	(174,448)
Operating expenses	82,753	84,479
Other (expense) income:
Interest income	1,257	2,529
Interest expense	(20,309)	(24,581)
Pledged MSR liability expense	(37,883)	(6,623)
Loss on extinguishment of debt	0
Other	452	3,655
Total other expense, net	(56,483)	(25,020)
Income (loss) before income taxes	13,486	(54,417)
Total Assets
Balance	9,869,673	9,321,628	9,847,603
Operating Segments \| Originations
Results of Operations
Servicing and subservicing fees	2,384	1
Reverse mortgage revenue, net	19,791	6,124
Gain on loans held for sale, net	37,593	13,102
Other revenue, net	6,518	2,445
Revenues	66,286	21,672
MSR valuation adjustments, net	8,505	328
Operating expenses	37,328	22,952
Other (expense) income:
Interest income	2,566	1,623
Interest expense	(3,552)	(2,433)
Pledged MSR liability expense	0	0
Loss on extinguishment of debt	0
Other	50	(22)
Total other expense, net	(936)	(832)
Income (loss) before income taxes	36,527	(1,784)
Total Assets
Balance	525,610	205,198	379,233
Operating Segments \| Corporate Items and Other
Results of Operations
Servicing and subservicing fees	0	13
Reverse mortgage revenue, net	0	0
Gain on loans held for sale, net	0	0
Other revenue, net	1,289	2,627
Revenues	1,289	2,640
MSR valuation adjustments, net	0	0
Operating expenses	19,548	29,783
Other (expense) income:
Interest income	113	1,243
Interest expense	(4,591)	(2,968)
Pledged MSR liability expense	33	29
Loss on extinguishment of debt	(15,458)
Other	(212)	(2,305)
Total other expense, net	(20,115)	(4,001)
Income (loss) before income taxes	(38,374)	(31,144)
Total Assets
Balance	376,505	459,198	$ 424,291
Intersegment Eliminations
Results of Operations
Servicing and subservicing fees	0	0
Reverse mortgage revenue, net	0	0
Gain on loans held for sale, net	(35,393)	0
Other revenue, net	0	0
Revenues	(35,393)	0
MSR valuation adjustments, net	35,393	0
Operating expenses	0	0
Other (expense) income:
Interest income	0	0
Interest expense	0	0
Pledged MSR liability expense	0	0
Loss on extinguishment of debt	0
Other	0	0
Total other expense, net	0	0
Income (loss) before income taxes	$ 0	$ 0

Business Segment Reporting - Schedule of Segment Reporting Information (Footnote) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Intersegment Eliminations
Segment Reporting Information [Line Items]
Gains on derivatives	$ (35.4)

Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Depreciation expense	$ 2,859	$ 3,997
Amortization of debt issuance costs and discount	1,624	2,662
Servicing
Segment Reporting Information [Line Items]
Depreciation expense	209	215
Amortization of debt issuance costs and discount	129	112
Originations
Segment Reporting Information [Line Items]
Depreciation expense	24	37
Amortization of debt issuance costs and discount	0	0
Corporate and Other
Segment Reporting Information [Line Items]
Depreciation expense	2,626	3,745
Amortization of debt issuance costs and discount	$ 1,495	$ 2,550

Regulatory Requirements - Narrative (Details) - USD ($)	1 Months Ended
Regulatory Requirements - Narrative (Details) - USD ($)	Oct. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]
Net worth requirement		$ 272,000,000.0
Cash and cash equivalents		259,108,000	$ 284,802,000
PHH Mortgage Corporation
Public Utilities, General Disclosures [Line Items]
Net worth		524,200,000
Restrictive liquidity requirements		27,200,000
Cash and cash equivalents		$ 227,000,000.0
CA DBO
Public Utilities, General Disclosures [Line Items]
Litigation settlement expense	$ 62,000

Commitments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Mar. 04, 2021	Mar. 31, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Threshold of outstanding principal balance on maximum claim amount (as a percent)		98.00%
Proceeds from partnership contribution		$ 250.0
Warrants exercise price	$ 26.82
Maximum \| Shareholders Approval
Other Commitments [Line Items]
Ownership percentage on exercise of warrant	19.90%
Ocwen Financial Corporation
Other Commitments [Line Items]
Ownership percentage		15.00%
Floating Rate Reverse Mortgage Loans
Other Commitments [Line Items]
Additional borrowing capacity to borrowers		$ 2,100.0	$ 2,000.0
Funded amount in connection with reverse mortgage loans		47.8
Forward Mortgage Loan Interest Rate Lock Commitments
Other Commitments [Line Items]
Short-term commitments to lend		916.9
Reverse loans IRLCs
Other Commitments [Line Items]
Short-term commitments to lend		$ 50.2
New Residential Investment Corp
Other Commitments [Line Items]
Servicing agreements notice of termination		180 days
Oaktree
Other Commitments [Line Items]
Ownership percentage		85.00%
Percentage of outstanding common stock agreed to sell		4.90%
Sale of stock, price per share		$ 23.15
Warrants exercise price		$ 24.31
Warrants issued, percentage of outstanding common stock		3.00%
Customer Concentration Risk \| Unpaid Principal Balance \| New Residential Investment Corp
Other Commitments [Line Items]
Concentration risk (percent)		36.00%
Customer Concentration Risk \| Loan Count \| New Residential Investment Corp
Other Commitments [Line Items]
Concentration risk (percent)		45.00%
Customer Concentration Risk \| Delinquent Loans \| New Residential Investment Corp
Other Commitments [Line Items]
Concentration risk (percent)		64.00%

Commitments - Schedule of Activity Related to HMBS Repurchases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) loan Securities
Long-term Purchase Commitment [Line Items]
Beginning balance, repurchase securities, number \| Securities	458
Additions, repurchase securities, number \| Securities	132
Recoveries, net, repurchase securities, number \| Securities	(97)
Transfers, repurchase securities, number \| Securities	0
Change in value, repurchase securities, number \| Securities	0
Ending balance, repurchase securities, number \| Securities	493
Beginning balance, repurchase securities, amount	$ 86,301
Additions, repurchase securities, amount	30,870
Recoveries, repurchase securities, amount	(20,633)
Transfers, repurchase securities, amount	0
Change in value, repurchase securities, amount	(888)
Ending balance, repurchase securities, amount	$ 95,650
Active
Long-term Purchase Commitment [Line Items]
Beginning balance, repurchase securities, number \| loan	141
Additions, repurchase securities, number \| loan	66
Recoveries, net, repurchase securities, number \| loan	(58)
Transfers, repurchase securities, number \| loan	(12)
Change in value, repurchase securities, number \| loan	0
Ending balance, repurchase securities, number \| Securities	137
Beginning balance, repurchase securities, amount	$ 29,852
Additions, repurchase securities, amount	16,448
Recoveries, repurchase securities, amount	(16,805)
Transfers, repurchase securities, amount	(3,727)
Change in value, repurchase securities, amount	9
Ending balance, repurchase securities, amount	$ 25,777
Inactive
Long-term Purchase Commitment [Line Items]
Beginning balance, repurchase securities, number \| loan	317
Additions, repurchase securities, number \| loan	66
Recoveries, net, repurchase securities, number \| loan	(39)
Transfers, repurchase securities, number \| loan	12
Change in value, repurchase securities, number \| loan	0
Ending balance, repurchase securities, number \| Securities	356
Beginning balance, repurchase securities, amount	$ 56,449
Additions, repurchase securities, amount	14,422
Recoveries, repurchase securities, amount	(3,828)
Transfers, repurchase securities, amount	3,727
Change in value, repurchase securities, amount	(897)
Ending balance, repurchase securities, amount	$ 69,873

Contingencies - Narrative (Details)			1 Months Ended	3 Months Ended
Contingencies - Narrative (Details)	Oct. 15, 2020 USD ($)	Apr. 20, 2017 States	Apr. 30, 2017 USD ($)	Mar. 31, 2021 USD ($) Loan States	Mar. 31, 2020 USD ($) Loan
Loss Contingencies [Line Items]
Accrued penalty				$ 40,400,000
Number of states charging with regulatory action \| States		29
Warranty repurchase demands unpaid principal balance				$ 53,600,000	$ 44,700,000
Warranty repurchase demands number of loans \| Loan				275	277
PHH Corporation
Loss Contingencies [Line Items]
Accrued penalty				$ 2,500,000
Florida Attorney General
Loss Contingencies [Line Items]
Injunctive and equitable relief, costs, and civil money penalties sought			$ 10,000
Litigation settlement expense	$ 5,200,000
Debt forgiveness to certain borrowers	1,000,000.0
Obligation in case of not satisfying the initial debt forgiveness	$ 1,000,000.0
Multistate Mortgage Committee
Loss Contingencies [Line Items]
Number of states who are part of confidential supervisory memorandum of understanding \| States				6

Contingencies - Schedule of Indemnification Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Indemnification Obligations Liability [Roll Forward]
Beginning balance	$ 40,374	$ 50,838
Provision (reversal) for representation and warranty obligations	400	(768)
New production liability	1,273	170
Charge-offs and other	(358)	(3,161)
Ending balance	$ 41,689	$ 47,079

Subsequent Events - Narrative (Details) $ / shares in Units, $ in Millions	May 03, 2021 USD ($) $ / shares States shares	Mar. 31, 2021 $ / shares	Mar. 04, 2021 $ / shares shares
Subsequent Event [Line Items]
Warrants to purchase, common stock shares \| shares			1,184,768
Warrants exercise price \| $ / shares			$ 26.82
Oaktree
Subsequent Event [Line Items]
Ownership percentage		85.00%
Sale of stock, price per share \| $ / shares		$ 23.15
Warrants exercise price \| $ / shares		$ 24.31
Subsequent Event
Subsequent Event [Line Items]
Number of states where approval to purchase agency MSR’s pending \| States	1
Term of warrants	4 years
Subsequent Event \| MAV Canopy HoldCo I, LLC
Subsequent Event [Line Items]
Non-controlling ownership percentage	15.00%
Subsequent Event \| Oaktree
Subsequent Event [Line Items]
Stock issued, shares \| shares	426,705
Ownership percentage	4.90%
Sale of stock, price per share \| $ / shares	$ 23.15
Stock issued, value \| $	$ 9.9
Warrants to purchase, common stock shares \| shares	261,248
Warrants exercise price \| $ / shares	$ 24.31
Debt instrument, face amount \| $	$ 85.5
Proceeds from issuance of senior debt \| $	75.0
Discount \| $	10.5
Subsequent Event \| MSR Asset Vehicle LLC
Subsequent Event [Line Items]
Members' equity \| $	$ 5.0

Fair Value - Schedule of Significant Assumptions used in Valuation (Details)	Mar. 31, 2021 USD ($) years	Dec. 31, 2020 USD ($) years
Loans Held for Investment Reverse Mortgages \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	5.5	5.9
Loans Held for Investment Reverse Mortgages \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.165	0.154
Loans Held for Investment Reverse Mortgages \| Measurement Input, Discount Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.024	0.019
Loans Held for Investment Reverse Mortgages \| Minimum \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.9	0.9
Loans Held for Investment Reverse Mortgages \| Minimum \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.107	0.106
Loans Held for Investment Reverse Mortgages \| Maximum \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	7.9	8.0
Loans Held for Investment Reverse Mortgages \| Maximum \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.376	0.288
Fair Value Agency Mortgage Servicing Rights \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.100	0.118
Fair Value Agency Mortgage Servicing Rights \| Measurement Input, Default Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.026	0.030
Fair Value Agency Mortgage Servicing Rights \| Measurement Input, Discount Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.092	0.092
Fair Value Agency Mortgage Servicing Rights \| Measurement Input, Weighted Average Cost to Service
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input \| $	76	79
Fair Value Non-Agency Mortgage Servicing Rights \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.114	0.115
Fair Value Non-Agency Mortgage Servicing Rights \| Measurement Input, Default Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.278	0.280
Fair Value Non-Agency Mortgage Servicing Rights \| Measurement Input, Discount Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.115	0.114
Fair Value Non-Agency Mortgage Servicing Rights \| Measurement Input, Weighted Average Cost to Service
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input \| $	270	270
HMBS-Related Borrowings \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	5.9	5.9
HMBS-Related Borrowings \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.165	0.154
HMBS-Related Borrowings \| Measurement Input, Discount Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.023	0.017
HMBS-Related Borrowings \| Minimum \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.9	0.9
HMBS-Related Borrowings \| Minimum \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.107	0.106
HMBS-Related Borrowings \| Maximum \| Measurement Input, Expected Term
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	8.0	8.0
HMBS-Related Borrowings \| Maximum \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.376	0.288
Mortgage Servicing Rights Pledged \| Measurement Input, Prepayment Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.114	0.115
Mortgage Servicing Rights Pledged \| Measurement Input, Default Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.295	0.298
Mortgage Servicing Rights Pledged \| Measurement Input, Discount Rate
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input	0.115	0.114
Mortgage Servicing Rights Pledged \| Measurement Input, Weighted Average Cost to Service
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Measurement input \| $	286	287