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Ocwen is headquartered in Atlanta, Georgia with offices in West Palm Beach and Orlando, Florida, Houston, Texas, McDonough, Georgia, and Washington, DC and support operations in India and Uruguay. Ocwen is a Florida corporation organized in February 1988. Ocwen Loan Servicing, LLC (OLS), a wholly-owned subsidiary of Ocwen, is licensed to service mortgage loans in all 50 states, the District of Columbia and two U.S. territories. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> At December 31, 2011, Ocwen owned all of the outstanding stock of its primary operating subsidiaries: OLS and Ocwen Financial Solutions. Ocwen also holds a 49% equity interest in Correspondent One S.A. (Correspondent One), an entity formed with Altisource Portfolio Solutions S.A. (Altisource) in March 2011, a 27% interest in Ocwen Structured Investments, LLC (OSI) and an approximate 25% interest in Ocwen Nonperforming Loans, LLC (ONL) and Ocwen REO, LLC (OREO). </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On September 1, 2011, Ocwen completed its acquisition (the Litton Acquisition) of (i) all the outstanding partnership interests of Litton Loan Servicing LP (Litton), a subsidiary of The Goldman Sachs Group, Inc. (Goldman Sachs) and a provider of servicing and subservicing of primarily non-prime residential mortgage loans and (ii) certain interest-only servicing securities (the Litton IO Strips) previously owned by Goldman Sachs &amp; Co., also a subsidiary of Goldman Sachs (collectively referred to as Litton Loan Servicing Business). See Note&#160;2 for additional information regarding the Litton Acquisition. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On September 1, 2010, Ocwen, through OLS, completed its acquisition (the HomEq Acquisition) of the U.S. non-prime mortgage servicing business known as &#8220;HomEq Servicing&#8221; including, but not limited to, the mortgage servicing rights and associated servicer advances of the business as well as the servicing platforms based in Sacramento, California and Raleigh, North Carolina. See Note&#160;2 for additional information regarding the HomEq Acquisition. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On August 10, 2009, Ocwen completed the distribution of its Ocwen Solutions line of business, except for BMS Holdings and GSS, via&#160;the spin-off of a separate&#160;publicly-traded company, Altisource. Altisource common stock is listed on the NASDAQ market under the ticker symbol &#8220;ASPS.&#8221; All of the shares of Altisource common stock were distributed to OCN&#8217;s shareholders of record as of August 4, 2009 (the Separation). The assets and liabilities of Altisource were eliminated from Ocwen&#8217;s Consolidated Balance Sheet effective at the close of business on August 9, 2009. Beginning August 10, 2009, the operating results of Altisource are no longer included in Ocwen&#8217;s operating results. The historical operating results of Altisource are not reported by Ocwen as a discontinued operation because of the significance of the continuing involvement between Altisource and Ocwen under the long-term services agreements described in Note&#160;28. Accordingly, for periods prior to August 10, 2009, the historical operating results of Altisource are presented in continuing operations. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Principles of Consolidation</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our financial statements include the accounts of Ocwen and its majority-owned subsidiaries. We apply the equity method of accounting to investments when the entity is not a variable interest entity (VIE), and we are able to exercise significant influence, but not control, over the policies and procedures of the entity but own 50% or less of the voting securities. We account for our investments in OSI, ONL, OREO and Correspondent One using the equity method. We have eliminated intercompany accounts and transactions in consolidation. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Variable Interest Entities</i> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We evaluate each special purpose entity (SPE) for classification as a VIE. When an SPE meets the definition of a VIE and we determine that Ocwen is the primary beneficiary, we include the SPE in our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We have determined that the SPEs created in connection with the match funded financing facilities discussed below are VIEs of which we are the primary beneficiary. We have also determined that we are the primary beneficiary for certain residential mortgage loan securitization trusts. The accounts of these SPEs are included in our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Securitizations or Asset Backed Financing Arrangements</i> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen or its subsidiaries have been a transferor in connection with a number of securitizations or asset-backed financing arrangements. We have continuing involvement with the financial assets of eight of the securitizations and three of the asset-backed financing arrangements. We also hold residual interests in and are the servicer for three securitizations where we were not a transferor. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We have aggregated these securitizations and asset-backed financing arrangements into two groups: (1) securitizations of residential mortgage loans and (2) financings of advances on loans serviced for others. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Securitizations of Residential Mortgage Loans.</i> In prior years, we securitized residential mortgage loans using certain trusts. These transactions were accounted for as sales even though we continued to be involved with the trusts, typically by acting as the servicer or sub-servicer for the loans held by the trust and by retaining a beneficial ownership interest in the trust. The beneficial interests we held consisted of both subordinate and residual securities that were either retained at the time of the securitization or subsequently acquired. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As a result of our adoption of Accounting Standards Update (ASU) No. 2009-16 (Accounting Standards Codification (ASC) 860, Transfers and Servicing) and ASU 2009-17 (ASC 810, Consolidation), we have included four of these trusts in our consolidated financial statements. For each of these four trusts, we have determined that our involvement represents a variable interest and that we are the primary beneficiary. 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</td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,330 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Excludes the four consolidated trusts. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> With regard to both the consolidated and the unconsolidated securitization trusts, we have no obligation to provide financial support to the trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt and have no recourse against the assets of Ocwen. Similarly, the general creditors of Ocwen have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement is limited to the carrying values of our investments in the residual and subordinate securities of the trusts, our mortgage servicing rights (MSRs) that are related to the trusts and our advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. At December 31, 2011 and 2010, our investment in the securities of the trusts was $2,513 and $2,691, respectively, all of which is eliminated in consolidation. See Note&#160;5 and Note&#160;8 for additional information regarding Advances and Mortgage servicing rights. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Financings of Advances on Loans Serviced for Others.</i> Match funded advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. These SPEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of four advance facility agreements. We classify the transferred advances on our Consolidated Balance Sheet as Match funded advances and the related liabilities as Match funded liabilities. Collections on the advances pledged to the SPEs are used to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Ocwen. However, OLS has guaranteed the payment of the obligations under the securitization documents of one of the entities, Ocwen Servicer Advance Funding (Wachovia), LLC (OSAFW). The maximum amount payable under the guarantee is limited to 10% of the notes outstanding at the end of the facility&#8217;s revolving period on July 1, 2013. As of December 31, 2011, OSAFW had $130,492 of notes outstanding. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table summarizes the assets and liabilities of the SPEs formed in connection with our match funded advance facilities, at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Match funded advances </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 3,629,911 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,924,052 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other assets </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 139,352 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 103,448 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt; padding-left:11pt"> Total assets </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,769,263 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 2,027,500 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Match funded liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 2,558,951 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,482,529 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Due to affiliates (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,131,661 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 262,900 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other liabilities </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,985 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 2,890 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt; padding-left:11pt"> Total liabilities </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,692,597 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,748,319 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Amounts are payable to Ocwen and its consolidated affiliates and eliminated in consolidation. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> See Note&#160;6 and Note&#160;13 for additional information regarding Match funded advances and Match funded liabilities. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Reclassification</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Within the liabilities section of the Consolidated Balance Sheet at December 31, 2010, we reclassified Servicer liabilities balance of $2,492 to Other liabilities. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Within the operating activities section of the Consolidated Statements of Cash Flows for 2010 and 2009, we made the following reclassifications to conform to the 2011 presentation: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="text-align:left; width:3%; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> Reclassified Amortization of debt issuance costs &#8211; senior secured term loan from Increase in receivables and other assets, net; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> Reclassified Gain on extinguishment of debt and Unrealized losses on derivative financial instruments from Other, net. </td> </tr> </table><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Cash</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Cash includes both interest-bearing and non-interest-bearing demand deposits with financial institutions with original maturities of 90 days or less. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Trading Securities</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Trading securities includes other investments with original maturities of three months or less that we do not treat as cash equivalents. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We account for investments in auction rate, investment grade, residual and subordinate securities as trading securities at fair value. We report changes in fair value in gain (loss) on trading securities in the period of the change. We determine fair value based either on third party dealer quotations, where available, or on internal values determined using market based assumptions. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We recognize interest income on subordinate and residual securities through an &#8220;effective yield&#8221; method with changes in expected future cash flows reflected in the yield on a prospective basis. We adjust the prospective yield each time the estimates of expected future cash flows change or the actual cash flows differ from projections. We use the newly calculated yield in the accrual of interest income for subsequent reporting periods. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Loans Held for Resale</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We classify loans that we do not intend to hold to maturity as loans held for resale, and we report them at the lower of cost or fair value computed on an aggregate basis. We account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in gain (loss) on loans held for resale, net, in the period in which the change occurs. We have deferred loan origination fees and direct loan origination costs until the loans are sold. These fees and costs are included in the carrying value of the loans when determining a valuation allowance. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent greater than 89 days or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse interest accrued but not received. We return loans to accrual status only when we reinstate the loan and have no significant uncertainty as to collectibility. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Mortgage Servicing Rights</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> MSRs are an intangible asset representing the right to service a portfolio of mortgage loans. We generally obtain MSRs by purchasing them from the owners of the mortgage loans. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> An agreement between the various parties to a mortgage securitization transaction typically specifies the rights and obligations of the holder of the MSRs which include guidelines and procedures for servicing the loans. Two examples of these guidelines and procedures include remittance and reporting requirements. Assets serviced for others are not included on our balance sheet. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Custodial accounts, which hold funds representing collections of principal and interest we receive from borrowers, are escrowed with an unaffiliated bank and excluded from our balance sheet. Custodial accounts amounted to approximately $555,500 and $320,300 at December 31, 2011 and 2010, respectively. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We account for our residential and commercial classes of servicing assets using the amortization method. All newly acquired MSRs are initially measured at fair value. We amortize the balance of servicing assets or liabilities in proportion to and over the period of estimated net servicing income or net servicing loss and assess servicing assets or liabilities for impairment or increased obligation based on fair value at each reporting date. We determine estimated net servicing income using the estimated future balance of the underlying mortgage loan portfolio, which, absent new purchases, declines over time from prepayments and scheduled loan amortization. We adjust amortization prospectively in response to changes in estimated projections of future cash flows. We perform an impairment analysis based on the difference between the carrying amount and estimated fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans (see Note&#160;3&#8212;Fair Value&#8212;Mortgage Servicing Rights). </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Mortgage Servicing Fees and Advances</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We earn fees for servicing mortgage loans. We collect servicing fees, generally expressed as a percent of unpaid principal balance from the borrowers&#8217; payments. We also include late fees, prepayment penalties, float earnings and other ancillary fees in servicing income. We recognize servicing fees as revenue when the fees are earned which is generally when the borrowers&#8217; payments are collected or when loans are modified or liquidated through the sale of the underlying real estate collateral or otherwise. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> During any period in which the borrower does not make payments, most of our servicing agreements require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, pay property taxes and insurance premiums and process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing contract. Each servicing contract is associated with specific loans, identified as a pool. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> When we make an advance on a loan under each servicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from investors, for foreclosed loans. Most of our servicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans, which are the subject of that servicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We record a charge to earnings to the extent that we believe advances are uncollectible under the provisions of each servicing contract taking into consideration historical loss and delinquency experience, length of delinquency and the amount of the advance. However, we are generally only obligated to advance funds to the extent that we believe the advances are recoverable from expected proceeds from the loan. We assess collectibility using proprietary cash flow projection models which incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, time to a foreclosure sale, estimated costs of foreclosure action, future property tax payments and the value of the underlying property net of carrying costs, commissions and closing costs. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Goodwill</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired. In 2009 the entire balance of goodwill, which related to our former Ocwen Solutions line of business, was distributed to Altisource as part of the Separation. At December 31, 2011, the $78,432 balance of goodwill is comprised of $12,810 recorded in connection with the HomEq Acquisition on September 1, 2010 and $65,622 recorded in connection with the Litton Acquisition on September 1, 2011, both of which are included in the Servicing segment </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We test goodwill for impairment annually or sooner if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Effective with our adoption of <i>ASU 2011-08 (ASC 350, Intangibles &#8211; Goodwill and Other): Testing Goodwill for Impairment</i> in the fourth quarter of 2011, we have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not (defined as having a likelihood of more than 50 percent) less than the carrying value, a two-step quantitative test is required. Otherwise, no further testing is required. Factors that we consider in the qualitative assessment include general economic conditions, conditions of the industry and market in which we operate, regulatory developments, cost factors and our overall financial performance. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In the first step of the two-step quantitative assessment, we compare the fair value of the reporting unit with its net carrying value, including goodwill. If the net carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of impairment loss, if any. The second step requires allocation of the reporting unit&#8217;s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of the reporting unit&#8217;s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In performing the quantitative two-step impairment analysis for goodwill, we use an approach based on the fair value of the assets and liabilities. We perform this analysis using projections of future income discounted at a market rate. The determination of market discount rates is subjective and could vary based on the nature of the underlying business, stage of development and revenue to date. The projections of future cash flows and assumptions concerning future operating performance and economic conditions may differ from actual results. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font-family:Times New Roman,Times,Serif"> <font style="font-size:10pt">We perform our annual impairment test of goodwill as of August 31</font><font style="font-size:70%; vertical-align:0">st</font> <font style="font-size:10pt">of each year. Based on our 2011 annual assessment, we determined that goodwill was not impaired. Beginning in 2012, our annual impairment test will include the goodwill related to the Litton Acquisition.</font> </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Premises and Equipment</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on the straight-line method as follows: </p><br/><table cellpadding="0" cellspacing="0" align="center" style="width:90%; font:10pt times new roman"> <tr style="vertical-align:top"> <td style="text-align:left; width:28%"> Buildings </td> <td style="text-align:left; width:13%"> &#160;39 years </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="text-align:left; width:35%"> Office equipment </td> <td style="text-align:left; width:21%"> 5 years </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> Land improvements </td> <td style="text-align:left"> &#160;39 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> Computer hardware and software </td> <td style="text-align:left"> 2 &#8211; 3 years </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> Furniture and fixtures &#160; </td> <td style="text-align:left"> &#160;5 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> Leasehold improvements </td> <td style="text-align:left"> Term of the lease not&#160;to exceed useful life </td> </tr> </table><br/><p style="text-align:left; font:10pt Times New Roman,Times,Serif"> <b>Investment in Unconsolidated Entities</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We account for our investments in unconsolidated entities using the equity method. These investments include both entities in which we hold a significant, but less than controlling, ownership interest and VIEs in which we are not deemed to be the primary beneficiary. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that any other-than-temporary decline in value may have occurred. We stop recording our share of investee losses if our share of losses reduces our investment to zero unless we have guaranteed the obligations of or are otherwise committed to provide further financial support to the investee. If the investee subsequently reports net income, we will only continue to record our share of the net income after our share of net income equals the share of net losses not recognized during the periods that the recording of losses was suspended. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Litigation</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish reserves for settlements, judgments on appeal and filed and/or threatened claims for which we believe it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize our legal costs associated with loss contingencies as they are incurred. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Derivative Financial Instruments</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We recognize all derivatives on our consolidated balance sheet at fair value. On the date we enter into a derivative contract, we designate and document each derivative contract as one of the following at the time the contract is executed: (a) a hedge of a recognized asset or liability (fair value hedge); (b) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); (c) a hedge of a net investment in a foreign operation; or (d) a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, the documentation must include the risk management objective and strategy. We assess and document quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, we use statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. For a fair value hedge, we record changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations. For a cash flow hedge, to the extent that it is effective, we record changes in the estimated fair value of the derivative in other comprehensive income. We subsequently reclassify these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, we report changes in the fair values in current period Other income (expense), net. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> If a derivative instrument in a cash flow hedge is terminated or the hedge designation is removed, we reclassify related amounts in accumulated other comprehensive income into earnings in the same period or periods during which the cash flows that were hedged affect earnings. In a period where we determine that it is probable that a hedged forecasted transaction will not occur, such as variable-rate interest payments on debt that has been repaid in advance, any related amounts in accumulated other comprehensive income are reclassified into earnings in that period. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Match Funded Liabilities, Lines of Credit, Investment Line and Other Secured Borrowings</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Match funded liabilities, lines of credit and other secured borrowings are collateralized by specific assets. Under the terms of these borrowing agreements, we are subject to various qualitative and quantitative covenants. 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text-align:right"> 55,303 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 55,611 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 315,165 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 26,119 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,181,874 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,212,116 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:4%"> (1) </td> <td style="width:96%; text-align:left; text-indent:0pt"> The 3.25% Contingent Convertible Senior Unsecured Notes (Convertible Notes) mature on August 1, 2024. However, the table above reflects an expected maturity date of March 28, 2012 because we provided notice of redemption to the holders on February 27, 2012 stating our election to redeem all of the outstanding Convertible notes on March 28, 2012. See Note&#160;18 and Note 32 for additional information. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The interest rate for 1-Month LIBOR was 0.30% and 0.26%, respectively, at December 31, 2011 and 2010. See Note&#160;13, Note&#160;15 and Note&#160;16 for additional information regarding the terms of our borrowings. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Foreign Currency Translation</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Where the functional currency is not the U.S. dollar, we translate assets and liabilities of foreign entities into U.S. dollars at the current rate of exchange existing at the balance sheet date, while revenues and expenses are translated at average monthly exchange rates. We report the resulting translation adjustments as a component of accumulated other comprehensive income in stockholders&#8217; equity. Where the functional currency of a foreign entity is the U.S. dollar, re-measurement adjustments of foreign-denominated amounts are included in the results of operations. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Income Taxes</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We file consolidated federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We account for income taxes using the asset and liability method which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Basic and Diluted Earnings per Share</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of the outstanding options to purchase common stock using the treasury stock method. The computation of diluted earnings per share also includes the potential shares of converted common stock associated with our Convertible Notes using the if-converted method. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Use of Estimates</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The preparation of financial statements in conformity with generally accepted accounting principles requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly significant in the near or medium term relate to fair value measurements, the provision for potential losses that may arise from litigation proceedings, the amortization of MSRs and the valuation of goodwill and deferred tax assets. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Stock-Based Compensation</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. For stock option awards with a service condition, we recognize the cost of the awards as compensation expense ratably over the vesting period. For stock options awarded with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from the lattice (binomial) options pricing model. When options with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Recent Accounting Pronouncements</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU No. 2010-06 (ASC 820, Fair Value Measurements and Disclosures): Improving Disclosures about Fair Value Measurements</i>. ASU 2010-06 revised the disclosure requirements concerning fair value measurements. Effective for our financial statements for the interim period beginning January 1, 2011, the presentation of purchases, sales, issuances and settlements within Level 3 are required to be presented on a gross rather than net basis. See Note&#160;3 for our fair value disclosures related to financial instruments. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU No. 2010-20 (ASC 310, Receivables)</i>: <i>Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses</i>. ASU 2010-20 requires disclosure of disaggregated information for both the financing receivables and the related allowance for credit losses. The disclosure requirements specifically do not apply to trade receivables with contractual maturities of one year or less that arose from the sale of goods or services, except for credit card receivables. The disclosure requirements also do not apply to mortgage banking activities, including the long-term servicing of loans, and certain disclosures are not required for receivables measured at the lower of cost or market. The disclosures about activity that occurred during a reporting period, such as the allowance rollforward and modification disclosures became effective for our financial statements for the interim period beginning January 1, 2011. See Note&#160;9 for our disclosures related to receivables. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU 2010-28 (ASC 350, Intangibles &#8211; Goodwill and Other): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts</i>. The amendments in this update affect all entities that have recognized goodwill and have one or more reporting units whose carrying amount for purposes of performing Step 1 of the goodwill impairment test is zero or negative. For those reporting units, Step 2 of the goodwill impairment test is required if it is more likely than not that a goodwill impairment exists. This update became effective for our financial statements for the interim period beginning January 1, 2011. Our adoption of this standard did not have a material effect on our financial position or results of operations. Our recognized goodwill relates to our acquisitions of HomEq Servicing in 2010 and Litton in 2011 and is included in the Servicing segment, which does not have a negative or zero carrying value. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Accounting Standards Update (ASU) 2011-02 (ASC 310, Receivables): A Creditor&#8217;s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.</i> The amendments in this ASU clarify the guidance on a creditor&#8217;s evaluation of whether it has granted a concession and whether a debtor is experiencing financial difficulties. If the restructuring is considered a troubled debt restructuring, creditors are required to make certain disclosures in their financial statements. In addition, the calculation of the allowance for credit losses for that receivable follows the impairment guidance specific to impaired receivables. Our adoption of this standard on July 1, 2011 did not have a material impact on our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU 2011-03 (ASC 860, Transfers and Servicing): Reconsideration of Effective Control for Repurchase Agreements</i>. ASC 860 prescribes when an entity may or may not recognize a sale upon the transfer of financial assets subject to repurchase agreements. That determination is based, in part, on whether the entity has maintained effective control over the transferred financial assets. Repurchase agreements are accounted for as secured financings if the transferee has not surrendered control over the transferred assets. The amendments in this ASU remove from the assessment of effective control the criterion relating to the transferor&#8217;s ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. The Financial Accounting Standards Board (FASB) concluded that this criterion is not a determining factor of effective control. Consequently, the amendments in this update also eliminate the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Our adoption of the provisions in this ASU effective for the interim period beginning January 1, 2012 is not expected to have a material impact on our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU 2011-04 (ASC 820, Fair Value Measurement): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs</i>. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments clarify the FASB&#8217;s intent about the application of existing fair value measurement and disclosure requirements and prescribe certain additional disclosures about fair value measurements, including: for fair value measurements within Level 3 of the fair value hierarchy, disclosing the valuation process used and the sensitivity of fair value measurement to changes in unobservable inputs; and for items not carried at fair value but for which fair value must be disclosed, categorization by level of the fair value hierarchy. Our adoption of this standard effective for the interim period beginning January 1, 2012 is not expected to have a material impact on our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU 2011-05 (ASC 220, Comprehensive Income): Presentation of Comprehensive Income</i>, Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders&#8217; equity. This ASU eliminates that option. This ASU also requires consecutive presentation of the statement of net income and other comprehensive income and requires that an entity present reclassification adjustments from other comprehensive income to net income by component on the face of both the statement in which net income is presented and the statement in which other comprehensive income is presented. ASU 2011-12, which was issued on December 23, 2011, defers indefinitely the provision regarding the presentation of reclassification adjustments. Our adoption of this standard effective for the interim period beginning January 1, 2012 is not expected to have a material impact on our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>ASU 2011-08 (ASC 350, Intangibles &#8211; Goodwill and Other): Testing Goodwill for Impairment.</i> With this ASU, the FASB has taken action to reduce the cost and complexity of the annual goodwill impairment test by providing reporting entities with the option of performing a &#8220;qualitative&#8221; assessment of impairment to determine if any further quantitative testing for impairment may be necessary. An entity can choose to apply the qualitative assessment to all, some or none of its reporting units. The ASU is effective for reporting periods beginning after December 15, 2011; however, an entity can early adopt the revised standard even if its annual impairment test date is before September 15, 2011, the date that the ASU was issued. Our early adoption of this standard during the fourth quarter of 2011 did not have a material impact on our consolidated financial statements. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;2 ACQUISITIONS</b> </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Litton Acquisition</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As disclosed in Note&#160;1, Ocwen completed its acquisition of the Litton Loan Servicing Business on September 1, 2011. The transaction was completed in accordance with the provisions of the Purchase Agreement (the Agreement) between Ocwen and Goldman Sachs dated June 5, 2011. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen completed the acquisition in order to expand its Servicing segment. The Litton Acquisition resulted in the acquisition by Ocwen of a servicing portfolio of approximately 245,000 primarily non-prime residential mortgage loans with approximately $38.6 billion in unpaid principal balance (UPB) and the servicing platform of Litton Loan Servicing Business based in Houston, Texas and McDonough, Georgia. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The base purchase price for the Litton Acquisition was $247,154, which was paid in cash by Ocwen at closing. In addition, Ocwen repaid at closing Litton&#8217;s $2,423,123 outstanding debt on an existing servicing advance financing facility that was provided by an affiliate of Goldman Sachs and entered into a new advance financing facility under which it borrowed $2,126,742 from Goldman Sachs. On September 1, 2011, Ocwen and certain of its subsidiaries also entered into a $575,000 senior secured term loan facility agreement to fund the base purchase price and the amount by which the repayment of Litton&#8217;s advance financing facility debt exceeded the proceeds from the new advance financing facility. Borrowings under the senior secured term loan facility are net of an original issue discount of $11,500, which is being amortized over the life of the loan. See Note&#160;13 and Note&#160;15 for additional details of the new advance financing facility and the senior secured term loan. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The actual base purchase price was increased by $214 as a result of post-closing adjustments specified in the Agreement for changes in Litton&#8217;s estimated closing date net worth, servicing portfolio UPB and advance balances, among others. We do not anticipate any significant adjustments to the purchase price subsequent to December 31, 2011. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The transaction has been accounted for using the acquisition method of accounting which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the preliminary estimate of the fair values of assets acquired and liabilities assumed as part of the Litton Acquisition: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> Cash </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 23,791 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Advances </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,468,137 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> MSRs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 144,314 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Premises and equipment, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,386 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Other assets </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,829 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Servicing liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8,972 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Checks held for escheat </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (6,145 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Accrued expenses </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (25,471 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total identifiable net assets </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,604,869 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Goodwill </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 65,622 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total consideration </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,670,491 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Litton debt repaid to Goldman Sachs at closing </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (2,423,123 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt; padding-left:11pt"> Base purchase price, as adjusted </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 247,368 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). We do not anticipate any significant adjustments to the allocation of the purchase price subsequent to December 31, 2011. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Consistent with our fair value policy for MSRs as disclosed in Note&#160;3, we estimated the fair value of the MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The initial valuation of premises and equipment was based on the in-use valuation premise, where the fair value of an asset is based on the highest and best use of the asset that would provide maximum value to market participants principally through its use with other assets as a group. This valuation presumed the continued operation of the Litton Loan Servicing Business platform as installed or otherwise configured for use. The acquired premises and equipment consisted primarily of computer hardware and software. During the fourth quarter of 2011, we ceased operation of the Litton Loan Servicing Business platform and sold the computer hardware and software to Altisource for a cash purchase price of $418. The proceeds received were significantly less than the appraised value at the time the transaction closed, as this appraisal reflected the value of each asset as part of a working platform which was no longer the case once we ceased operating the Litton Loan Servicing Business in the fourth quarter.&#160; These assets were initially valued at $21,302 on September 1, 2011. As a result of the sale, we reduced the provisional fair value assigned to these assets at the acquisition date to a value that reflects their subsequent sales price and increased the amount allocated to goodwill. In addition, certain of the acquired premises and equipment are no longer in use and have been written down to their salvage value. For those that will be abandoned after year end but before the end of their previously estimated useful life, depreciation has been adjusted to reflect the shortened life. Ocwen is considering subleasing office space acquired as part of the Litton Acquisition. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Advances are non-interest bearing receivables that are expected to have a short average collections period and were, therefore, valued at their face amount, consistent with Ocwen&#8217;s fair value policy for servicing advances. Other assets and liabilities that are expected to have a short life were also valued at the face value of the specific assets and liabilities purchased, including receivables, prepaid expenses, accounts payable and accrued expenses. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business. The goodwill portion of the purchase price allocation shown in the table above pertains to the Servicing segment. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The acquisition of Litton is treated as an asset acquisition for U.S. tax purposes. We expect the opening tax basis for the acquired assets and liabilities to be the fair value as shown in the table above. We expect the MSRs and goodwill to be treated as intangible assets acquired in connection with the purchase of a trade or business and as such, amortized over 15 years for tax purposes. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Additionally, the Agreement provides that the severance plans of Litton and Goldman Sachs remain in effect for one year. We recognized severance expense of $10,119 during 2011 as steps taken to reorganize and streamline the operations of Litton obligated Ocwen to pay severance under those plans. Severance expense is included in Compensation and benefits in our Consolidated Statements of Operations. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In connection with the establishment of the match funded advance facility Ocwen funded a reserve in the initial amount of $42,535 which is held by the facility Indenture Trustee for the benefit of the note holders. Ocwen also paid Barclays an $11,500 arrangement fee in connection with the senior secured term loan agreement. This fee along with the discount and certain other professional fees incurred in connection with the establishment of the facility are being amortized over the five-year life of the loan. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As part of the Litton Acquisition, Goldman Sachs and Ocwen have agreed to indemnification provisions for the benefit of the other party. Additionally, Goldman Sachs has agreed to retain certain contingent liabilities for fines and penalties that could potentially be imposed by certain government authorities relating to Litton&#8217;s pre-closing foreclosure and servicing practices. Further, Goldman Sachs and Ocwen have agreed to share certain losses arising out of third-party claims in connection with Litton&#8217;s pre-closing performance under its servicing agreements. Goldman Sachs has agreed to be liable for (i) 80% of any such losses until the amount paid by Goldman Sachs is equal to 80% of the Goldman Shared Loss Cap and (ii) thereafter, 20% of any such losses until the amount paid by Goldman Sachs is equal to the Goldman Shared Loss Cap. Ocwen has agreed to be liable for (i) 20% of any such losses until the amount paid by Ocwen is equal to 20% of the Goldman Shared Loss Cap, (ii)&#160;thereafter, 80% of any such losses until the amount paid by Ocwen is equal to the Goldman Shared Loss Cap and (iii)&#160;thereafter, 100% of any such losses in excess of the Goldman Shared Loss Cap. The &#8220;Goldman Shared Loss Cap&#8221; is currently approximately $123,684 or 50% of the adjusted base purchase price of the Litton Acquisition, but which may be further adjusted if any additional adjustments to the purchase price are made. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In connection with the Litton Acquisition, Ocwen, Goldman Sachs Bank USA, Litton and the New York State Banking Department have entered into an agreement (the NY Agreement) that sets forth certain loan servicing practices and operational requirements. No fines, penalties or other payments were assessed against Ocwen or Litton under the terms of the NY Agreement. We do not believe that our commitments under the NY Agreement will have a material impact on our financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the revenue and earnings of the Litton Loan Servicing Business that is included in our Consolidated Statement of Operations from the acquisition date of September 1, 2011 through December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> Revenues </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 62,750 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Net loss (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (20,910 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen&#8217;s platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents supplemental pro forma information as if the acquisition of Litton occurred on January 1, 2010. Pro forma adjustments include: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="width:3%; text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> conforming revenues to the revenue recognition policy followed by Ocwen rather than the policies followed by Litton; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> conforming the accounting for MSRs to the valuation and amortization policy of Ocwen rather than the policies followed by Litton; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> reversing depreciation recognized by Litton and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> adjusting interest expense to eliminate the pre-acquisition interest expense of Litton and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2010; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> reporting acquisition-related charges, including severance paid to Litton employees and fees for professional services related to the acquisition as if they had been incurred in 2010 rather than 2011. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The pro forma consolidated results are not indicative of what Ocwen&#8217;s consolidated net earnings would have been had Ocwen completed the acquisition of Litton on January 1, 2010 because of differences in servicing practices and cost structure between Ocwen and Litton. In addition, the pro forma consolidated results do not purport to project the future results of Ocwen combined nor do they reflect the expected realization of any cost savings associated with the Litton Acquisition. </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010 (1)</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center"> (Unaudited) </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center"> (Unaudited) </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Revenues </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 642,033 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 632,721 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Net income (loss) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 52,407 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (169,886 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> In December 2010, Litton deemed goodwill to be wholly impaired and wrote off the balance of $154,065. Litton also recorded a provision for losses on servicing advances of $33,734 in 2010. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Through December 31, 2011, we incurred approximately $1,170 of fees for professional services related to the Litton Acquisition that are included in Operating expenses. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>HomEq Acquisition</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On September 1, 2010, Ocwen completed the HomEq Acquisition. The sellers were Barclays Bank PLC, a corporation organized under the laws of England and Wales (Barclays), and Barclays Capital Real Estate Inc., a corporation organized under the laws of the State of Delaware (BCRE). The HomEq Acquisition was completed in accordance with the provisions of the Asset Purchase Agreement dated May 28, 2010 among Barclays, BCRE, OLS and Ocwen. This transaction did not result in the transfer of ownership of any legal entities. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen acquired HomEq Servicing in order to grow its Servicing segment. With the close of the HomEq Acquisition, Ocwen boarded 134,000 residential mortgage loans with an aggregate unpaid principal balance of $22,400,000 onto its servicing platform. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> OLS paid an initial aggregate purchase price of $1,196,747 in cash upon completion of the HomEq Acquisition. Of this amount, $852,617 was funded by notes issued by a new $1,011,000 structured servicing advance financing facility, $150,000 was paid from funds held in escrow in accordance with the terms of the new $350,000 senior secured term loan facility and $194,130 consisted of cash and funds borrowed pursuant to the senior secured term loan facility. See Note&#160;13 and Note&#160;15 for additional details regarding the terms of the notes supporting these facilities. The initial purchase price was reduced by $29,625 pursuant to an initial true-up of advances as reflected in the table below. We recorded a receivable of $1,449 as of December 31, 2010 for amounts due to us for further true-up under adjustment mechanisms and repurchase rights as provided in the Asset Purchase Agreement. We collected this receivable in 2011. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The transaction has been accounted for using the acquisition method of accounting which requires, among other things, the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the fair values of assets acquired and liabilities assumed as part of the HomEq Acquisition: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> Mortgage servicing rights </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 84,324 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Advances </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,063,180 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Receivables </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,957 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Premises and equipment, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6,728 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Checks held for escheat </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (4,616 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Accrued bonus </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (3,037 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Servicing liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (709 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other liabilities </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (964 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total identifiable net assets </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,152,863 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Goodwill </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 12,810 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Total consideration </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,165,673 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We estimated the fair value of the MSRs and consistent with Ocwen&#8217;s methodology as disclosed above and in Note&#160;3. Receivables were valued at their face amount because of the short period between the acquisition date and realization. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The valuation of premises and equipment was based on the in-use valuation premise where the highest and best use of the assets would provide maximum value to market participants principally through its use with other assets as a group. This valuation presumed the continued operation of the HomEq platform as installed or otherwise configured for use. The acquired premises and equipment consisted primarily of leasehold improvements. As disclosed in Note&#160;10, subsequent to the acquisition we vacated the leased premises following termination of the former HomEq employees and recorded a charge of $5,840 to write off the leasehold improvements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Other liabilities that are expected to have a short life were valued at the face value of the specific liabilities purchased, including checks held for escheat, accrued bonuses and other liabilities. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The goodwill portion of the purchase price allocation shown in the table above pertains to the Servicing segment. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The acquisition of HomEq is treated as an asset acquisition for U.S. tax purposes. We expect the opening tax basis for the acquired assets and liabilities to be the fair value, which is shown in the table above. We expect the mortgage servicing rights and goodwill to be treated as intangible assets acquired in connection with the purchase of a trade or business and as such, amortized over 15 years for tax purposes. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The asset purchase agreement provided for a 90-day true-up process for Advances and Mortgage servicing rights under limited circumstances. Payment for advances in the amount of $3,500 was held back in an escrow account under a four-year agreement during which Ocwen can seek reimbursement for existing and future uncollectible advances on certain pooling and servicing agreements under limited circumstances. Notwithstanding this holdback amount, the agreement provides for the reimbursement of uncollectible advances under all pooling and servicing agreements under limited circumstances. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Severance payments for all HomEq Servicing employees who entered an employment agreement with Ocwen were recorded as steps were taken that obligated Ocwen to pay severance for all such employees. Severance expense of $20,727 is included in Compensation and benefits in our Consolidated Statement of Operations. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In connection with the establishment of the match funded advance facility Ocwen paid Barclays a $10,110 securitization fee and funded a reserve in the initial amount of $14,342 held by the facility Indenture Trustee for the benefit of the note holders. The securitization fee along with and certain other professional fees paid in connection with the establishment of the facility will be amortized over the expected three-year life of the notes. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen has no material financial obligation for litigation related to the operations of HomEq prior to the closing. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the revenue and earnings of HomEq Servicing that are included in our Consolidated Statement of Operations from the acquisition date of September 1, 2010 through December 31, 2010: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> Revenues </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 43,127 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Net loss (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (26,953 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; font-family:Times New Roman,Times,Serif"> (1) </td> <td style="font-family:Times New Roman,Times,Serif; text-align:left; text-indent:0pt; width:95%"> Net loss includes non-recurring transaction-related expenses of $51,136, including (i) $32,954 of severance and other compensation related to HomEq employees who accepted employment with Ocwen, (ii) $7,794 of lease termination costs, (iii) $5,840 of depreciation resulting from the write off of leasehold improvements, (iv) $5,486 of amortization of the acquired MSRs and (v) $2,556 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the HomEq loans on Ocwen&#8217;s platform. We computed income taxes using a combined statutory rate of 37% for federal and state income taxes. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents supplemental pro forma information as if the acquisition HomEq Servicing occurred on January 1, 2009. Pro forma adjustments are the same as those described above for the Litton Acquisition. In addition, the pro forma adjustments include reversing revenues recognized by HomEq for business not acquired by Ocwen. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The pro forma consolidated results are not indicative of what Ocwen&#8217;s consolidated net earnings would have been had Ocwen completed the acquisition HomEq Servicing on January 1, 2009 because of differences in servicing practices and cost structure between Ocwen and HomEq Servicing. In addition, the pro forma consolidated results do not purport to project the future results of Ocwen combined nor do they reflect the expected realization of any cost savings associated with the HomEq Acquisition. </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center"> (Unaudited) </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center"> (Unaudited) </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Revenues </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 458,548 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 591,505 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Net income (loss) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 42,786 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (26,824 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Through December 31, 2010, we incurred approximately $3,977 of fees for professional services related to the HomEq Acquisition which are also included in Operating expenses. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Facility Closure Costs</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> During 2010, we accrued facility closure costs primarily consisting of severance, Worker Adjustment and Retraining Notification Act (WARN Act) compensation and lease termination costs for closure of the leased HomEq facilities. Following the acquisition, we terminated the former HomEq employees and vacated the leased facilities. Following the Litton Acquisition we also incurred severance and WARN Act compensation during 2011 related to terminated employees. The following table provides a reconciliation of the beginning and ending liability balances for HomEq and Litton employee termination benefits and for HomEq lease termination costs: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Employee<br /> termination<br /> benefits (1)</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Lease<br /> termination<br /> costs (2)</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Total</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt"> Liability balance as at January 1, 2010 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Additions charged to operations (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,954 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,794 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 40,748 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Payments </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (31,622 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (31,622 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Liability balance as at December 31, 2010 (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,332 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,794 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,126 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Additions charged to operations (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 33,127 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 33,127 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Amortization of discount </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 99 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 99 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Payments </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (29,296 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (2,606 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (31,902 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Liability balance as at December 31, 2011 (3) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,163 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,287 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 10,450 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Employee termination benefits include severance expense of $20,727 and $10,119 related to HomEq Servicing and Litton, respectively. The remaining liability of $1,332 for employee termination benefits related to the HomEq Acquisition was settled in 2011. &#160;We expect to pay the remaining liability of $5,163 for employee termination benefits related to the Litton Acquisition during the first quarter of 2012. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> The lease agreements that we assumed for the HomEq facilities expire in 2017 and 2018. In December 2010, we exercised our option to terminate the HomEq lease agreements effective in 2013 and provided formal notice to the lessors. At that time, we recorded a charge of $7,794 to establish a reserve for the remaining lease payments discounted through the early termination date, including early termination penalties due in 2013. These charges are reported in Occupancy and equipment expense. See Note&#160;30 for additional information regarding these leases. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> All charges were recorded in the Servicing segment. The liabilities are included in Other liabilities in the Consolidated Balance Sheet. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In addition to the HomEq facility closure costs described above, we recorded a depreciation charge of $5,840 to write off the leasehold improvements related to the closed HomEq facilities. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;3 FAIR VALUE</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The carrying amounts and the estimated fair values of our financial instruments are as follows at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; text-align:center; padding-left:11pt; text-indent:-11pt"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Carrying</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Fair</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Carrying</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Fair</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Financial assets: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:56%; text-indent:-11pt; padding-left:22pt"> Loans held for resale </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 20,633 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 20,633 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 25,803 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 25,803 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Loans, net &#8211; restricted for securitization investors </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 58,560 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 55,165 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 67,340 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 64,795 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Advances </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,733,502 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,733,502 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,108,885 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,108,885 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Receivables, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 83,202 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 83,202 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 69,518 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 69,518 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Financial liabilities: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Match funded liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 2,558,951 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 2,569,131 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,482,529 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,486,476 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Lines of credit and other secured borrowings </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 540,369 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 550,860 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 246,073 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 252,722 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-left:22pt; text-indent:-11pt"> Secured borrowings &#8211; owed to securitization investors </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 53,323 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 52,652 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 62,705 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 62,105 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Debt securities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 82,554 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 92,125 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 82,554 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 75,325 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Derivative financial instruments, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (16,676 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (16,676 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (15,351 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (15,351 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs.&#160;Observable inputs are inputs that reflect the assumptions 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&#8217;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.&#160;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.&#160;The three broad categories are: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:4%"> &#160; </td> <td style="text-align:left; width:9%; text-indent:0pt"> Level 1: </td> <td style="text-align:left; width:87%; text-indent:0pt"> Quoted prices in active markets for identical assets or liabilities. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left; text-indent:0pt"> Level 2: </td> <td style="text-align:left; text-indent:0pt"> Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left; text-indent:0pt"> Level 3: </td> <td style="text-align:left; text-indent:0pt"> Unobservable inputs for the asset or liability. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Where available, we utilize quoted market prices or observable inputs rather than unobservable inputs to determine fair value. We classify assets in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents assets and liabilities measured at fair value categorized by input level within the fair value hierarchy: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Carrying<br /> value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Level 1</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Level 2</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Level 3</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:-11pt; padding-left:11pt"> At December 31, 2011: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; font-style:italic; text-indent:-11pt; padding-left:11pt"> Measured at fair value on a recurring basis: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:56%; text-indent:-11pt; padding-left:22pt"> Derivative financial instruments, net (1) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (16,676 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (16,676 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; font-style:italic; text-indent:-11pt; padding-left:11pt"> Measured at fair value on a non-recurring basis: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Loans held for resale (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,633 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,633 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Mortgage servicing rights (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 214 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 214 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:-11pt; padding-left:11pt"> At December 31, 2010: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-style:italic; text-indent:-11pt; padding-left:11pt"> Measured at fair value on a recurring basis: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Derivative financial instruments, net (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (15,351 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (15,351 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-style:italic; text-indent:-11pt; padding-left:11pt"> Measured at fair value on a non-recurring basis: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Loans held for resale (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 25,803 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 25,803 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Mortgage servicing rights (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 334 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 334 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> The derivative financial instruments are not exchange-traded and therefore quoted market prices or other observable inputs are not available. Therefore, we classify derivatives within Level 3 of the fair value hierarchy. Fair value is based on certain information provided by third-party pricing sources. See Note&#160;19 for additional information on derivative financial instruments. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Loans held for resale are measured at fair value on a non-recurring basis. All loans held for resale were measured at fair value because the cost exceeded the estimated fair value. Current market illiquidity has reduced the availability of observable pricing data. Consequently, we classify these loans within Level 3 of the fair value hierarchy. See Note&#160;4 for additional information on loans held for resale. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> The carrying value of MSRs at December 31, 2011 and 2010 is net of a valuation allowance for impairment of $2,290 and $2,864, respectively. The carrying value of the impaired stratum, net of the valuation allowance, was $214 and $334 at December 31, 2011 and 2010, respectively. The estimated fair value exceeded amortized cost for all other strata. See Note&#160;8 for additional information on MSRs. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following tables present a reconciliation of the changes in fair value of Level 3 assets that we measure at fair value on a recurring basis: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:left; margin-bottom:0"> <b>For the year ended December 31, 2011:</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Derivative<br /> Financial<br /> Instruments</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:77%; text-indent:0pt"> Beginning balance </td> <td style="text-align:left; width:14%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:8%; text-align:right"> (15,351 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Purchases, issuances, sales and settlements: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Purchases </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,688 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Issuances </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Sales </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Settlements </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 85 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,773 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Total realized and unrealized gains and (losses) (1): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Included in Other, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (5,881 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Included in Other comprehensive income (loss) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 783 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (5,098 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Transfers in and / or out of Level 3 </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Ending balance </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (16,676 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> <b>&#160;</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Trading Securities</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> <b>&#160;</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> <b>&#160;</b> </td> </tr> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:left; margin-bottom:0"> <b>For the year ended December 31, 2010:</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Derivative<br /> Financial<br /> Instruments</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Auction<br /> Rate</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Securities</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Subordinates<br /> and<br /> Residuals</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Total</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:56%; text-indent:0pt"> Beginning balance (2) (3) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (45 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 247,464 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 59 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 247,478 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Purchases, issuances, sales and settlements: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Purchases </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Issuances </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Sales </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (146,810 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (146,810 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Settlements </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (738 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (92,745 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (93,483 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (738 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (239,555 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (240,293 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Total realized and unrealized gains and (losses) (1): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Included in Gain (loss) on trading securities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (7,909 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (59 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (7,968 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Included in Other, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (133 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (133 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Included in Other comprehensive income (loss) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (14,435 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (14,435 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (14,568 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (7,909 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (59 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (22,536 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; 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padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Ending balance </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (15,351 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (15,351 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; 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</td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 243,863 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Purchases, issuances, sales and settlements: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; 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</td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Sales </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (3,700 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (3,700 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Settlements </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (3,700 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (3,700 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Total realized and unrealized gains and (losses): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Included in Gain (loss) on trading securities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; 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</td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 588 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Included in Other comprehensive income (loss) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 588 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; 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padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Ending balance </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 781 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 247,464 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,692 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 251,937 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Total losses attributable to derivative financial instruments still held at December 31, 2011 and 2010 were $5,114 and $13,775, respectively. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> The fair values of derivative financial instruments as of January 1, 2010 were adjusted to include $(826) related to an interest rate swap that is held by one of the newly consolidated securitization trusts. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> Effective January 1, 2010, we eliminated our investment in subordinate and residual securities that were issued by consolidated securitization trusts as more fully described in Note&#160;1&#8212;Securitizations of Residential Mortgage Loans. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The methodologies that we use and key assumptions that we make to estimate the fair value of instruments are described in more detail by instrument below: </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Derivative Financial Instruments</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Exchange-traded derivative financial instruments are valued based on quoted market prices. If quoted market prices or other observable inputs are not available, fair value is based on certain information provided by third-party pricing sources. We review this information to ensure that it provides a reasonable basis for estimating fair value. Our review is designed to identify information that appears stale, information that has changed significantly from the prior period, and other indicators that the information may not be accurate. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Loans Held for Resale</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Loans held for resale are reported at the lower of cost or fair value. We account for the excess of cost over fair value as a valuation allowance with changes in the valuation allowance included in Loss on loans held for resale, net, in the period in which the change occurs. All loans held for resale were measured at fair value because their cost of $34,890 exceeded their estimated fair value of $20,633 at December 31, 2011. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> When we enter into an agreement to sell a loan to an investor at a set price, the loan is valued at the commitment price. The fair value of loans for which we do not have a firm commitment to sell is based upon a discounted cash flow analysis. We stratify our fair value estimate of uncommitted loans held for resale based upon the delinquency status of the loans. We base the fair value of our performing loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions include collateral and loan characteristics, prevailing market conditions and the creditworthiness of the borrower. The fair value of our non-performing loans is determined based upon the underlying collateral of the loan and the estimated period and cost of disposition of the collateral. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Loans &#8211; Restricted for Securitization Investors</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Loans &#8211; restricted for securitization investors are reported at cost, less an allowance for loan losses and are comprised of loans that are secured by first or second liens on one- to four-family residential properties. We base the fair value of our loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions include expected prepayment rates and delinquency and cumulative loss curves. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Mortgage Servicing Rights</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We estimate the fair value of our MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience, both of which we derive from our historical experience and available market data. Other assumptions used in our internal valuation are: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="width:3%"> &#9679; </td> <td style="width:43%"> Cost of servicing </td> <td style="width:3%"> &#160; </td> <td style="width:3%; font-family:Times New Roman,Times,Serif"> &#9679; </td> <td style="width:44%"> Interest rate used for computing float earnings </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#9679; </td> <td> Discount rate </td> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> Compensating interest expense </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#9679; </td> <td> Interest rate used for computing the cost of Servicing advances </td> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> Collection rate of other ancillary fees </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, prepayment penalties, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We develop the discount rate internally, and we consider external market-based assumptions in determining the interest rate for the cost of financing advances, the interest rate for float earnings and the cost of servicing. The more significant assumptions used in the December 31, 2011 valuation include prepayment speeds ranging from 13.96% to 21.71% (depending on loan type) and delinquency rates ranging from 15.61% to 25.49% (depending on loan type). Other assumptions include an interest rate of 1-month LIBOR plus 4% for computing the cost of financing advances, an interest rate of 1-month LIBOR for computing float earnings and a discount rate of 20%. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans. The risk factors used to assign loans to strata include the credit score (FICO) of the borrower, the loan to value ratio and the default risk. Our strata include: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="width:3%; font-family:Times New Roman,Times,Serif"> &#9679; </td> <td style="width:43%"> Subprime </td> <td style="width:3%"> &#160; </td> <td style="width:3%; font-family:Times New Roman,Times,Serif"> &#9679; </td> <td style="width:44%"> Re-performing </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> ALT A </td> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> Special servicing </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> High-loan-to-value </td> <td> &#160; </td> <td style="font-family:Times New Roman,Times,Serif"> &#9679; </td> <td> Other </td> </tr> </table><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Advances</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We value advances that we make on loans that we service for others at their carrying amounts because they have no stated maturity, generally are realized within a relatively short period of time and do not bear interest. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Receivables</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Borrowings</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Borrowings not subject to a hedging relationship are carried at amortized cost. We base the fair value of our debt securities on quoted market prices. The carrying value of match funded liabilities and secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other match funded or secured borrowings that bear interest at a fixed rate, we determine fair value by discounting the contractual future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We carry certain zero-coupon long-term secured borrowings with an implicit fixed rate at a discounted value and determine fair value by discounting the contractual future principal repayments at a market rate that is commensurate with the risk of the estimated cash flows. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;4 LOANS HELD FOR RESALE</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Loans held for resale primarily represent subprime single family residential loans that we do not intend to hold to maturity. The carrying value of these loans amounted to $20,633 and $25,803 at December 31, 2011 and 2010, respectively. The balances at December 31, 2011 and 2010 are net of valuation allowances of $14,257 and $14,611, respectively. Loans held for resale at December 31, 2011 and 2010 include non-performing loans with a carrying value of $8,553 and $11,247, respectively. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;5 ADVANCES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Advances, representing payments made on behalf of borrowers or on foreclosed properties, as more fully described in Note&#160;1&#8212;Mortgage Servicing Fees and Advances, consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Servicing: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt; padding-left:11pt"> Principal and interest </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 30,462 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 82,060 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Taxes and insurance </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 33,387 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 49,785 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Foreclosures and bankruptcy costs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,390 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 27,163 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 27,442 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 21,701 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 99,681 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 180,709 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Corporate Items and Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,910 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,124 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 103,591 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 184,833 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Servicing advances of $75,489 were pledged as collateral under the term reimbursement advance borrowing as of December 31, 2010. This borrowing was repaid in full in 2011. See Note&#160;15 for additional information. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;6 MATCH FUNDED ADVANCES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Match funded advances on residential loans we service for others, as more fully described in Note&#160;1&#8212; Principles of Consolidation&#8212;Financings of Advances on Loans Serviced for Others, are comprised of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="width:78%; text-align:left"> Principal and interest </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,679,536 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 947,990 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Taxes and insurance </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,452,707 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 684,928 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Foreclosures and bankruptcy costs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 259,231 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 140,181 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Real estate servicing costs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 121,705 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 116,064 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 116,732 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 34,889 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,629,911 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,924,052 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;7 LOANS &#8211; RESTRICTED FOR SECURITIZATION INVESTORS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Loans &#8211; restricted for securitization investors are held by four securitization trusts that we include in our consolidated financial statements, as more fully described in Note&#160;1&#8212;Securitizations of Residential Mortgage Loans. Loans &#8211; restricted for securitization investors consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Single family residential loans (1) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 61,262 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 69,718 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Allowance for loans losses </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (2,702 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (2,378 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 58,560 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 67,340 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Includes nonperforming loans of $11,861 and $12,933 at December 31, 2011 and 2010, respectively. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We report loans held by the consolidated securitization trusts at cost, less an allowance for loan losses. We consider loans held by the trusts to be nonperforming if they are delinquent greater than 89 days or if the loan is in foreclosure or in bankruptcy. We do not accrue for interest on nonperforming loans. In situations where the trusts foreclose upon the collateral, we classify the loans as real estate, a component of Other assets. We report as Other, net the losses that are realized by the trusts on loans or real estate resolved through repayment of less than the unpaid principal balance of the loan in full plus any costs incurred by the servicer to resolve the loan or real estate. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We maintain an allowance for loan losses for loans and real estate held by the trusts at a level that based upon our evaluation of known and inherent risks in the collateral of the trusts we consider to be adequate to provide for probable losses. We base our ongoing evaluation of the allowance for loan losses upon an analysis of the collateral of the trusts, historical loss experience, economic conditions and trends, collateral values and other relevant factors. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> At December 31, 2011 and 2010, the trusts held 1,405 and 1,591 loans, respectively, that are secured by first or second liens on one- to four-family residential properties. At December 31, 2011, these loans have a weighted average coupon rate of 9.05% and a weighted average remaining life of 129 months. This compares to a weighted average coupon rate of 9.07% and a weighted average remaining life of 136 months as of December 31, 2010. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;8 MORTGAGE SERVICING</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Servicing Assets.</i> Servicing assets, or MSRs, are comprised of a single residential class. We no longer own commercial servicing assets following the sale of those assets in 2008. The following table summarizes the activity in the carrying value of residential servicing assets for the years ended December 31, 2009, 2010 and 2011: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; font-weight:bold; text-indent:0pt"> Balance at December 31, 2008 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 139,500 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Purchases </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10,241 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Servicing transfers and adjustments </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (20 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Decrease in impairment valuation allowance </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 670 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Amortization (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (32,589 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:0pt"> Balance at December 31, 2009 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 117,802 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Purchases (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 107,749 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Servicing transfers and adjustments </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (29 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Decrease in impairment valuation allowance </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 90 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Amortization (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (31,627 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:0pt"> Balance at December 31, 2010 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 193,985 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Purchases (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 144,314 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Decrease in impairment valuation allowance </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 574 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Amortization (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (45,721 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; font-weight:bold; text-indent:0pt"> Balance at December 31, 2011 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 293,152 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> Purchases for 2010 include $84,324 of residential MSRs acquired as part of the HomEq Acquisition. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> Purchases for 2011 represent the residential MSRs acquired as a part of the Litton Acquisition. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2011, is projected as follows over the next five years: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> 2012 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 57,148 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2013 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 46,094 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2014 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 37,178 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2015 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 29,986 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2016 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 24,186 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the composition of our servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents purchased MSRs while subservicing generally represents all other MSRs. </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; font-weight:bold; text-indent:0pt"> UPB of Assets Serviced: </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Residential</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Commercial</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Total</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Balance at December 31, 2009 </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt; padding-left:22pt"> Servicing </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 27,408,436 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 27,408,436 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:22pt"> Subservicing </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 22,571,641 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 211,603 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 22,783,244 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 49,980,077 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 211,603 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 50,191,680 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Balance at December 31, 2010 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:22pt"> Servicing </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 51,252,380 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 51,252,380 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:22pt"> Subservicing </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 22,634,011 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 434,305 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 23,068,316 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 73,886,391 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 434,305 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 74,320,696 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Balance at December 31, 2011 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:22pt"> Servicing </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 78,675,160 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 78,675,160 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:22pt"> Subservicing </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 23,524,062 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 290,863 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 23,814,925 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 102,199,222 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 290,863 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 102,490,085 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Residential assets serviced consist principally of mortgage loans, primarily subprime, but also include foreclosed real estate. Commercial assets subserviced consist of foreclosed real estate. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> At December 31, 2011, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Amount</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Count</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> California </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 20,605,264 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right"> 74,944 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Florida </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,338,397 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 72,393 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> New York </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,204,876 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 37,687 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Texas </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,341,919 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 63,003 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Illinois </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,547,186 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 30,658 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 51,161,580 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 392,938 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 102,199,222 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 671,623 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Consisted of loans and properties in 45 other states, the District of Columbia and two U.S. territories. No other single location had aggregate loans and properties over $3,700,655. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Valuation Allowance for Impairment.</i> During 2008, we established a valuation allowance for impairment of $3,624 on the high-loan-to-value stratum of our mortgage servicing rights as the estimated fair value was less than the carrying value. Changes in the valuation allowance for impairment are reflected in Servicing and origination expenses in the Consolidated Statement of Operations. Net of the valuation allowance of $2,290 and $2,864, the carrying value of this stratum was $214 and $334 at December 31, 2011 and 2010, respectively. For all other strata, the fair value exceeded the carrying value. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The estimated fair value of residential MSRs at December 31, 2011, 2010 and 2009 was $340,015, $237,407 and $127,268, respectively. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Servicing Liabilities.</i> Servicing liabilities are included in Other liabilities. See Note&#160;17 for additional information. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;9 RECEIVABLES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Receivables consisted of the following at the dates indicated: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Receivables</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Allowance for<br /> Credit Losses</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Net</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="border-bottom:black 1pt solid"> <p style="margin:0"> <b>December 30, 2011</b> </p> </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:65%; text-indent:0pt"> Servicing (1) </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 53,852 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (1,648 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 52,204 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Income taxes receivable </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 21,518 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 21,518 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Affordable housing (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,568 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (5,019 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 549 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Due from Altisource (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,309 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,309 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other receivables (4) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 7,884 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,262 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 6,622 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 91,131 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (7,929 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 83,202 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="border-bottom:black 1pt solid"> <p style="margin:0"> <b>December 31, 2010</b> </p> </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Servicing (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 59,436 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (262 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 59,174 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Income taxes receivable </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,620 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,620 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Affordable housing (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6,882 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (5,866 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,016 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Due from Altisource (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,445 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,445 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other receivables </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,586 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,323 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,263 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 76,969 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (7,451 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 69,518 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> The balances at December 31, 2011 and 2010 arise from our Servicing business and primarily include reimbursable expenditures due from investors and amounts to be recovered from the custodial accounts of the trustees. </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> The balances at December 31, 2011 and 2010 primarily represent annual payments to be received through June 2014 for proceeds from sales of investments in affordable housing properties. None of these receivables is delinquent. </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> See Note&#160;28 for additional information regarding our relationship with Altisource and transactions between Ocwen and Altisource. </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> The balance includes the interest rate cap we entered into in 2011 which had a fair value of $3,600 at December 31, 2011. See Note&#160;19 for additional information regarding our derivative financial instruments. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Receivable balances are evaluated individually. The change in the allowance for credit losses for 2011 and the balance of the related receivables at those dates were as follows (the disclosure requirements for the allowance for credit losses do not apply to mortgage banking activities, including the long-term servicing of loans, such as the activities of our Servicing segment): </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Affordable<br /> Housing</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Other</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Total</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt"> Allowance for credit losses balance at December 31, 2010 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 5,866 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,323 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 7,189 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Charge offs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Recoveries </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (48 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (140 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (188 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Provision (reversal), net </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (799 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 87 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (712 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Allowance for credit losses balance at December 31, 2011 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,019 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,262 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 6,281 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Receivables balance at December 31, 2011 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,568 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 7,884 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 13,452 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;10 PREMISES AND EQUIPMENT</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our premises and equipment are summarized as follows at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Computer hardware and software </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 15,208 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 14,619 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Leasehold improvements </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6,894 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6,626 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Furniture and fixtures </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,559 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6,528 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Office equipment and other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 5,932 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,439 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 36,593 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 31,212 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Less accumulated depreciation and amortization </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (29,243 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (25,737 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 7,350 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,475 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In 2011, we acquired premises and equipment with a fair value of $3,386 as part of the Litton Acquisition. These assets consisted primarily of computer hardware and software and furniture and fixtures. As disclosed in Note&#160;2, during the fourth quarter of 2011, we sold the computer hardware and software we acquired from Litton to Altisource for cash proceeds equal to the net book value of $418 which approximates the acquisition fair value, as adjusted. In 2010, we sold the equipment we acquired in the HomEq Acquisition to Altisource for cash proceeds equal to the acquisition fair value of $888. As a result, we recognized no gain or loss on these sales. &#160; </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Depreciation and other amortization expense amounted to $4,160, $7,512 and $4,742 for 2011, 2010 and 2009. Depreciation for 2011 includes a charge of $1,967 to write-down certain furniture and fixtures acquired from Litton that we ceased to use during the four quarter. Depreciation expense for 2010 includes a charge of $5,840 to write off leasehold improvements related to HomEq facilities that we vacated following termination of the former HomEq employees. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;11 INVESTMENT IN UNCONSOLIDATED ENTITIES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Investment in unconsolidated entities consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Asset Management Vehicles: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt; padding-left:11pt"> Investment in OSI (1) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 7,561 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 7,572 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Investment in ONL and affiliates (2) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,475 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,420 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 9,036 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 11,992 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Corporate Items and Other: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Investment in Correspondent One (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 14,470 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 80 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 14,471 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 80 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 23,507 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 12,072 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Equity in earnings (losses) of unconsolidated entities was as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%"> OSI (1) (4) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,001 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,195 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (1,756 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> ONL and affiliates (2) (4) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,217 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 176 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,177 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Correspondent One (3) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (530 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (746 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,371 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (2,933 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Our investment in OSI represents a 27% equity interest. OSI invests in the lower tranches and residuals of residential mortgage-backed securities, the related mortgage servicing rights and other similar assets. During 2011, we received distributions from OSI totaling $750. We have no remaining commitment to invest in OSI. On December 22, 2011, we acquired a 2% ownership interest held by another investor in OSI. </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> Our investment in ONL and affiliates represent equity interests of approximately 25%. ONL resolves non-performing loans purchased at a discount. An affiliate purchases real estate for sale, including real estate that ONL may obtain through foreclosure. During 2011, we received distributions totaling $1,665 from ONL and affiliates. We have no remaining commitment to invest in ONL. </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> In March 2011, we acquired a 50% interest in Correspondent One. Correspondent One facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. During 2011, we funded all of our committed $15,000 investment. Subsequent investments in Correspondent One by unrelated third parties reduced our interest to 49% as of December 31, 2011. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left"> (4) </td> <td style="width:95%; text-align:left; text-indent:0pt"> We earn loan servicing and management fees from OSI and from ONL and affiliates. In determining the amount of consolidated equity in earnings to recognize, we add back our share of the loan servicing and management fee expense recognized by OSI, ONL and affiliates. During 2011, 2010, 2009, OLS earned fees of $2,645, $3,064 and $4,481, respectively, from OSI and from ONL and affiliates. On a consolidated basis, we have recognized approximately 75% of the loan servicing and management fee revenue. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Summarized combined financial information of our unconsolidated entities at and for the years ended December 31 is as follows: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009 (1)</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:0pt"> Operations </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt; padding-left:11pt"> Revenues, net, and investment income, net </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 4,892 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 7,287 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (9,641 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Losses on investments and derivatives, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8,458 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (4,470 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (10,611 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Net income (loss) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (4,651 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,817 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (42,206 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:0pt"> Financial Condition </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total assets </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 66,405 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 49,354 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,001,751 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,915 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,245 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 987,784 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Total equity </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 64,490 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 48,109 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 13,967 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; font-family:Times New Roman,Times,Serif"> (1) </td> <td style="font-family:Times New Roman,Times,Serif; text-align:left; text-indent:0pt; width:95%"> For 2009, the amounts presented include BHI Liquidation, Inc. (formerly BMS Holdings, Inc.), in which we have an equity interest of approximately 45%. BMS Holdings, Inc. had total assets of $940,618, total liabilities of $986,592, equity of $(45,974), net revenues of $(17,625), income on investments and derivatives of $13,642 and a net loss of $25,937. As a result of accumulated losses, we reduced our investment in BHI Liquidation, Inc. to zero in the second quarter of 2008 and have not recognized any equity in its income or losses since that time. Effective October 1, 2010, BHI Liquidation, Inc. transferred its interests in Bankruptcy Management Solutions, Inc. (the operating entity) to debt holders as part of a restructuring plan and no longer has any assets or operations. </td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman,Times,Serif; width:100%; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:top"> <td style="text-align:right; width:45pt; font-family:Times New Roman,Times,Serif; font-weight:bold"> NOTE&#160;12&#160; </td> <td style="font-family:Times New Roman,Times,Serif; font-weight:bold; text-align:left; text-indent:0pt"> OTHER ASSETS </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Other assets consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:77%; text-indent:0pt"> Debt service accounts (1) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 115,867 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 86,234 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Interest earning collateral deposits (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 27,191 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 25,738 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Prepaid lender fees and debt issuance costs, net (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 27,113 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 22,467 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Real estate, net </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,368 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,682 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Term note (4) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,600 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Prepaid expenses and other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 12,403 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 13,561 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 185,942 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 158,282 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Under our four advance funding facilities, we are contractually required to remit collections on pledged advances to the trustee within two days of receipt. The collected funds are not applied to reduce the related match funded debt until the payment dates specified in the indenture. The balances also include amounts that have been set aside from the proceeds of our four match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest. These funds are held in interest earning accounts. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> The balances include $19,623 and $18,684 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2011 and 2010, respectively. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> Unamortized costs at December 31, 2011 and 2010 relate to match funded liabilities and other secured borrowings of the Servicing segment. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> In September 2011, we collected this term note in full and repaid a five-year note that was payable to the same counterparty. We originally issued a $7,000 note receivable in March 2009 with a maturity date of April 1, 2014 in connection with advances funded by the Ocwen Servicer Advance Funding, LLC (OSAF) term note pledged as collateral. See Note&#160;15 for additional information. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;13 MATCH FUNDED LIABILITIES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Match funded liabilities, as more fully described in Note&#160;1&#8212;Principles of Consolidation &#8211; Financings of Advances on Loans Serviced for Others, are comprised of the following: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; text-align:left; vertical-align:top"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt; text-align:left; vertical-align:bottom"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="padding-bottom:1pt; text-align:center; vertical-align:bottom"> &#160; </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="padding-bottom:1pt; text-align:center; vertical-align:bottom"> &#160; </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center"> <b>Unused</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid; padding-bottom:1pt; text-align:center"> <b>Balance Outstanding</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid; padding-bottom:1pt; text-align:center; vertical-align:bottom"> <b>Borrowing Type</b> </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; padding-bottom:1pt; text-align:center; vertical-align:bottom"> <b>Interest Rate</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="border-bottom:black 1pt solid; padding-bottom:1pt; text-align:center; vertical-align:bottom"> <b>Maturity (1)</b> </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="border-bottom:black 1pt solid; padding-bottom:1pt; text-align:center; vertical-align:bottom"> <b>Amortization<br /> Date (1)</b> </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Borrowing<br /> Capacity (2)</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>December 31,<br /> 2011</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center"> &#160; </td> <td style="padding-bottom:1pt; text-align:center"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>December 31,<br /> 2010</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:26%; padding-left:9pt; text-indent:-9pt; vertical-align:top"> Promissory Note (3) </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="width:11%; text-align:left; vertical-align:bottom"> &#160;3.3875% </td> <td style="width:7%; text-align:left; vertical-align:bottom"> &#160; </td> <td nowrap="nowrap" style="width:2%; text-align:left"> &#160; </td> <td style="width:10%; text-align:center; vertical-align:bottom"> Sept. 2013 </td> <td style="width:2%"> &#160; </td> <td style="width:10%; text-align:center; text-indent:0pt; vertical-align:bottom"> Sept. 2013 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 342,699 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:8%; text-align:right"> 1,784,043 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-left:9pt; text-indent:-9pt; vertical-align:top"> Advance Receivable Backed Note Series 2009-3 (4) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left; vertical-align:bottom"> &#160;4.14% </td> <td style="text-align:left; vertical-align:bottom"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; vertical-align:bottom"> July 2023 </td> <td> &#160; </td> <td style="text-align:center; vertical-align:bottom"> July 2012 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 210,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 210,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; vertical-align:top"> <p style="margin:0"> Variable Funding </p> <p style="margin:0"> Note Series 2009-2 (5) </p> </td> <td style="text-align:left"> &#160; </td> <td colspan="2" style="text-align:left; text-indent:0pt; vertical-align:bottom"> 1-Month LIBOR + 350 bps </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; vertical-align:bottom"> Nov. 2023 </td> <td> &#160; </td> <td style="text-align:center; vertical-align:bottom"> Nov. 2012 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 100,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; vertical-align:top"> <p style="margin:0"> Variable Funding </p> <p style="margin:0"> Note Series 2009-1 (6) </p> </td> <td style="text-align:left"> &#160; </td> <td colspan="2" style="text-align:left; text-indent:0pt; vertical-align:bottom"> Commercial paper rate + 200 bps or 1-Month LIBOR plus 325 bps </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; vertical-align:bottom"> Dec. 2023 </td> <td> &#160; </td> <td style="text-align:center; vertical-align:bottom"> Dec. 2012 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 788,313 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,687 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,095 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; 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text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:center; vertical-align:bottom"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:center; vertical-align:bottom"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,565,520 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 2,558,951 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,482,529 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; vertical-align:top"> &#160; </td> <td> &#160; </td> <td style="text-align:left; vertical-align:bottom"> &#160; </td> <td style="text-align:left; vertical-align:bottom"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; vertical-align:bottom"> &#160; </td> <td> &#160; </td> <td style="text-align:center; vertical-align:bottom"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td colspan="11" nowrap="nowrap" style="text-align:left; text-indent:0pt"> Weighted average interest rate </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3.50 </td> <td nowrap="nowrap" style="text-align:left"> % </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3.71 </td> <td nowrap="nowrap" style="text-align:left"> % </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In two advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> Unused borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; width:95%; text-indent:0pt"> This note was issued in connection with the financing of advances acquired in connection with the acquisition of Litton on September 1, 2011. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> These notes were issued under the Term Asset-Backed Securities Loan Facility program administered by the Federal Reserve Bank of New York. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (5) </td> <td style="text-align:left; text-indent:0pt"> In accordance with the terms of the note purchase agreement, the maximum funding obligation of this note increased from $88,000 to $100,000 in November 2011. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (6) </td> <td style="text-align:left; text-indent:0pt"> The interest rate for this note is determined using a commercial paper rate that reflects the borrowing costs of the lender plus a margin of 200 bps or 1-Month LIBOR plus 325 bps if the lender funds its lending other than through commercial paper. On December 9, 2011, the maximum borrowing under this note was increased to $800,000, and the amortization date was extended to December 2012. Beginning June 15, 2012, maximum borrowing capacity under this note will be reduced to the extent that the lender&#8217;s commitment under any other advance facilities of Ocwen or its affiliates exceeds $200,000. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (7) </td> <td style="text-align:left; text-indent:0pt"> This note entered into its amortization period in February 2011. 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In addition, the annual facility fee, which is payable in monthly installments, was reduced from 1.30% of the maximum borrowing capacity to 1.00%. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;14 SECURED BORROWINGS &#8211; OWED TO SECURITIZATION INVESTORS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Secured borrowings &#8211; owed to securitization investors of $53,323 and $62,705 at December 31, 2011 and 2010, respectively, consist of certificates that represent beneficial ownership interests in four securitization trusts that we include in our consolidated financial statements, as more fully described in Note&#160;1&#8212;Securitizations of Residential Mortgage Loans. The holders of these certificates have no recourse against the assets of Ocwen. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The trusts consist principally of mortgage loans that are secured by first and second liens on one-to-four-family residential properties. Except for the residuals, the certificates generally pay interest based on 1-Month LIBOR plus a margin of from 8 to 250 basis points. 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</td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; vertical-align:top"> &#160; </td> <td style="padding-bottom:1pt; text-align:left; vertical-align:top"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt; text-align:left; vertical-align:top"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; 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text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left; vertical-align:top"> &#160; </td> <td style="text-align:left; vertical-align:top"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left; vertical-align:top"> &#160; </td> <td style="text-align:left; vertical-align:top"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td colspan="16" nowrap="nowrap" style="text-align:left; text-indent:0pt"> Weighted average interest rate </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6.96 </td> <td nowrap="nowrap" style="text-align:left"> % </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8.90 </td> <td nowrap="nowrap" style="text-align:left"> % </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> On June 9, 2011, we terminated this facility and repaid the outstanding balance. We amortized the remaining balance of the original issue discount and the remaining unamortized prepaid debt issuance costs through this date. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> On September 1, 2011, we entered into a new senior secured term loan facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition. The loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%. We are required to repay the principal amount of the loan in consecutive quarterly installments of $14,375 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016. The loan is secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> During September 2011, we repaid this facility in full and recognized a gain of $2,405 on the extinguishment of debt, including the write off of the unamortized balances of the discount and related deferred income. We were amortizing the discount to interest expense over the five-year term of the advance. Under the agreement that governed this advance, a portion of the annual payment was forgiven if the annual net written premium by the lender for insurance on serviced loans and real estate exceeded $100,000. In the first quarter of 2011, the lender forgave $1,246 of the outstanding debt balance based on the net written premium for the contract year ended March 31, 2011, which we also recognized as a gain on extinguishment debt. These gains are reported in Other income (expense). </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> This note that was issued by OSAF was secured by advances on loans serviced for others, similar to match funded advances and liabilities. The lender pledged its interest in this note as collateral against a $7,000 term note receivable from the lender that we held. Both this note and the term note receivable were fully repaid in September 2011 as disclosed in Note&#160;12. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (5) </td> <td style="text-align:left; text-indent:0pt"> In August 2010, we obtained financing under a repurchase agreement for the Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $29,351. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral. Borrowings mature and are renewed monthly. The borrowings secured by the Class A-2 notes bear interest at 1-Month LIBOR + 200 basis points and borrowings secured by the Class A-3 notes bear interest at 1-Month LIBOR + 300 basis points. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;16 DEBT SECURITIES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Debt securities consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> 3.25% Contingent Convertible Senior Unsecured Notes due August 1, 2024 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 56,435 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 56,435 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> 10.875% Capital Securities due August 1, 2027 </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 26,119 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 26,119 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 82,554 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 82,554 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>3.25% Convertible Notes.</i> In July 2004, OCN issued $175,000 aggregate principal amount of 3.25% Convertible Notes due August 1, 2024. The Convertible Notes are senior general unsecured obligations not guaranteed by any of our subsidiaries and bear interest at the rate of 3.25% per year. We amortized the debt discount over the period from the date of issuance to August 1, 2009, the first date at which holders could require us to repurchase their notes. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Interest expense on the Convertible Notes for the year ended December 31, 2009 includes amortization of debt discount of $1,735. We recognized interest on the debt at an effective annual rate of 8.25% from the date of issuance to August 1, 2009. Since August 1, 2009, the effective interest rate on the debt is the coupon rate of 3.25%. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Holders may convert all or a portion of their notes into shares of our common stock under the following circumstances: (1) at any time during any calendar quarter (and only during such calendar quarter) commencing after December 31, 2004, if the closing sale price of our common stock for at least 20 consecutive trading days in a period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than 125% of the conversion price per share of common stock on such last day; (2) subject to certain exceptions, during the five business day period after any five-consecutive-trading-day period in which the trading price per $1,000 (in dollars) principal amount of the notes for each day of the five-consecutive-trading-day period was less than 98% of the product of the closing sale price of our common stock and the number of shares issuable upon conversion of $1,000 (in dollars) principal amount of the notes; (3) if the notes have been called for redemption; or (4) upon the occurrence of specified corporate transactions. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The conversion rate is 82.1693 shares of our common stock per $1,000 (in dollars) principal amount of the notes, subject to adjustment. Events that may cause the conversion rate to be adjusted primarily relate to cash dividends or other distributions to holders of our common stock. Upon conversion, we may, at our option, choose to deliver, in lieu of our common stock, cash or a combination of cash and common stock. At December 31, 2011 and 2010, the if-converted value of the Convertible Notes was $67,147 and $44,239, respectively. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On June 26, 2009, we provided notice to holders of the Convertible Notes of their right to request that we repurchase all or a portion of their notes for cash on August 3, 2009 at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest, if any. There were no material redemptions on August 3, 2009. Holders that did not choose to exercise their repurchase right on August 3, 2009 will receive the same right to request that we repurchase all or a portion of their notes for cash on August 1, 2014 and August 1, 2019. A similar right is also available to holders of the Convertible Notes in the event of a &#8220;fundamental change.&#8221; A &#8220;fundamental change&#8221; is a change of control or a termination of trading in our common stock. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Beginning August 1, 2009, we may redeem all or a portion of the notes for cash for a price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest, if any. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>10.875% Capital Securities.</i> In August 1997, Ocwen Capital Trust (OCT) issued $125,000 of 10.875% Capital Securities (the Capital Securities). OCT invested the proceeds from issuance of the Capital Securities in 10.875% Junior Subordinated Debentures issued by OCN. The Junior Subordinated Debentures, which represent the sole assets of OCT, will mature on August 1, 2027. For financial reporting purposes, we treat OCT as a subsidiary and, accordingly, the accounts of OCT are included in our consolidated financial statements. We consolidate OCT because we own all of the beneficial ownership interests represented by common securities that were issued by OCT (Common Securities) and have repurchased 79% of the Capital Securities that were originally issued. We eliminate intercompany balances and transactions with OCT, including the balance of Junior Subordinated Debentures outstanding, in our consolidated financial statements. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Holders of the Capital Securities are entitled to receive cumulative cash distributions accruing from the date of original issuance and payable semiannually in arrears on February 1 and August 1 of each year at an annual rate of 10.875% of the liquidation amount of $1,000 (in dollars) per Capital Security. OCN guarantees payment of distributions out of moneys held by OCT and payments on liquidation of OCT or the redemption of Capital Securities to the extent OCT has funds available. If OCN does not make principal or interest payments on the Junior Subordinated Debentures, OCT will not have sufficient funds to make distributions on the Capital Securities in which event the guarantee shall not apply to such distributions until OCT has sufficient funds available. Accumulated distributions payable on the Capital Securities amounted to $1,184 at December 31, 2011 and 2010, and are included in Other liabilities. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We have the right to defer payment of interest on the Junior Subordinated Debentures at any time or from time to time for a period not exceeding 10 consecutive semiannual periods with respect to each deferral period provided that no extension period may extend beyond the stated maturity of the Junior Subordinated Debentures. Upon the termination of any such extension period and the payment of all amounts then due on any interest payment date, we may elect to begin a new extension period. Accordingly, there could be multiple extension periods of varying lengths throughout the term of the Junior Subordinated Debentures. If we defer interest payments on the Junior Subordinated Debentures, distributions on the Capital Securities will also be deferred, and we may not, nor may any of our subsidiaries, (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, their capital stock or (ii) make any payment of principal, interest or premium, if any, on or repay, repurchase or redeem any debt securities that rank pari passu with or junior to the Junior Subordinated Debentures. During an extension period, interest on the Junior Subordinated Debentures will continue to accrue at the rate of 10.875% per annum, compounded semiannually. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We may redeem the Junior Subordinated Debentures before maturity at our option subject to the receipt of any necessary prior regulatory approval, in whole or in part at the redemption prices (expressed as a percentage of the principal amount) set forth below, plus accrued interest thereon, if redeemed during the twelve-month period beginning on August 1 of the years indicated below: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; font-weight:bold"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="3" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Percentages</b> </p> </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="width:89%; text-align:left"> 2011 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right"> 103.263 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> % </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> 2012 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 102.719 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> 2013 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 102.175 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> 2014 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 101.631 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> 2015 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 101.088 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> 2016 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 100.544 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> 2017 to maturity </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 100.000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We may also redeem the Junior Subordinated Debentures at any time upon the occurrence and continuation of a special event (defined as a tax event, regulatory capital event or an investment company event) at 100%. The Capital Securities are subject to mandatory redemption upon repayment of the Junior Subordinated Debentures in an amount equal to the amount of the related Junior Subordinated Debentures maturing or being redeemed and at a redemption price equal to the redemption price of the Junior Subordinated Debentures, plus accumulated and unpaid distributions thereon to the date of redemption. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;17 OTHER LIABILITIES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Other liabilities were comprised of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Accrued expenses (1)(2) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 53,516 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 54,122 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Payable to servicing and subservicing investors (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 28,824 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 22,443 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Checks held for escheat (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 24,687 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 18,087 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Derivatives, at fair value (4) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,276 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 15,670 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Servicing liabilities (1)(5) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,662 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,415 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Liability for selected tax items (6) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,524 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,913 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Payable to Altisource (7) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,274 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,877 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Accrued interest payable </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,140 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,830 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Deferred income (8) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 660 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10,394 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 8,086 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 6,980 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 158,649 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 142,731 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> We assumed $25,471 of accrued expenses in connection with the Litton Acquisition, including accruals for employee salaries, benefits and other related compensation costs, legal fees and litigation reserves. At December 31, 2011, accrued expenses related to Litton were $16,236 including $5,163 related to employee termination benefits as disclosed in Note&#160;2. We also assumed servicing liabilities with a fair value of $8,972 and an obligation for checks held for escheat of $6,145. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> The balance at December 31, 2011 and 2010 includes $5,550 and $24,366, respectively, of litigation reserves. During 2011, we paid the settlement of one legal proceeding and the judgment in another case. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> The balances represent the fair values of interest rate swaps and foreign exchange forward contracts. See Note&#160;19 for additional information regarding these derivatives. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (5) </td> <td style="text-align:left; text-indent:0pt"> We recognize a servicing liability for those agreements that are not expected to compensate us adequately for performing the servicing. During 2011, 2010 and 2009, amortization of servicing liabilities exceeded the amount of charges we recognized to increase servicing liability obligations by $2,725, $172 and $361, respectively. Amortization of mortgage servicing rights is reported net of this amount in the Consolidated Statement of Operations. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (6) </td> <td style="text-align:left; text-indent:0pt"> See Note&#160;23 for information on the liability for selected tax items. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (7) </td> <td style="text-align:left; text-indent:0pt"> See Note&#160;28 for additional information regarding our relationship with Altisource and transactions between Ocwen and Altisource. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (8) </td> <td style="text-align:left; text-indent:0pt"> The balance at December 31, 2010 included $9,508 of deferred income associated with the fee reimbursement advance facility that was being amortized to earnings over the five-year life of the related debt as a reduction of interest expense. The unamortized balance was written off upon the repayment of the related debt during 2011 and included in the gain on extinguishment of debt. See Note&#160;15 for additional information on the fee reimbursement advance facility. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;18 EQUITY</b> </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Common Stock</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On May 9, 2000, we announced that our Board of Directors authorized the repurchase of up to 6,000,000 of our issued and outstanding shares of common stock. To date, we have repurchased 431,100 shares under this plan (all in 2004). We may still purchase a total of 5,568,900 shares under this plan. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In a private placement transaction that closed on April 3, 2009, OCN sold 5,471,500 shares of its common stock for a price of $11.00 per share. We realized $60,165 in proceeds from this issuance. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On April 3, 2009, OCN repurchased from William C. Erbey, its Chairman of the Board and then Chief Executive Officer, 1,000,000 shares of its common stock at a per-share price of $11.00. We used a portion of the proceeds received from the above-described private placement transaction to acquire the shares from Mr. Erbey. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On August 18, 2009, OCN completed the public offering of 32,200,000 shares of common stock at a per share price of $9.00, including 4,200,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $274,964 from the offering after deducting underwriting fees and other incremental costs directly related to the offering. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On November 9, 2011, OCN completed the public offering of 28,750,000 shares of common stock at a per share price of $13.00, including 3,750,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $354,445 from the offering after deducting underwriting fees and other incremental costs directly related to the offering. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Accumulated Other Comprehensive Loss</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The components of accumulated other comprehensive loss, net of income taxes, were as follows at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Unrealized losses on cash flow hedges </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 7,760 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 9,239 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 136 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 153 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 7,896 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 9,392 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;19 DERIVATIVE FINANCIAL INSTRUMENTS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Because our current derivative agreements are not exchange-traded, we are exposed to credit loss in the event of nonperformance by the counterparty to the agreements. We control this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of our contracts does not represent our exposure to credit loss. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160; <b>Foreign Currency Exchange Rate Risk Management</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In August and October 2011, we entered into foreign exchange forward contracts with a notional amount of $59,400 to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL, through February 2013. These contracts replaced those that expired in April 2011. We did not designate the foreign exchange contracts as hedges. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160; <b>Interest Rate Management</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In our Servicing segment, during 2010, we entered into three interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. In 2011, we entered into an additional four interest rate swaps and one interest rate cap. The cap was not designated as a hedge. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following summarizes our use of swaps at December 31, 2011 to hedge the effects of changes in the interest rate environment on borrowings under our advance funding facilities: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Purpose</b> </p> </td> <td style="border-bottom:black 1pt solid; text-align:center; vertical-align:bottom"> <p style="margin-top:0; margin-bottom:0"> <b>Date<br /> Opened</b> </p> </td> <td style="border-bottom:black 1pt solid; text-align:center; vertical-align:bottom"> <p style="margin-top:0; margin-bottom:0"> <b>Effective<br /> Date (1)</b> </p> </td> <td style="border-bottom:black 1pt solid; 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font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Fair<br /> Value</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; padding-left:9pt; text-indent:-9pt"> Not designated as hedges: </td> <td style="text-align:center; vertical-align:top"> &#160; </td> <td style="text-align:center; vertical-align:top"> &#160; </td> <td style="text-align:center; vertical-align:top"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center; vertical-align:top"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; vertical-align:top"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:27%; padding-bottom:1pt; padding-left:9pt; text-indent:-9pt"> Hedge the effects of a change in 1-Month LIBOR on borrowing under a $265,000 advance funding facility (2) </td> <td style="width:12%; padding-bottom:1pt; text-align:center; text-indent:0pt; vertical-align:top"> April 2010 </td> <td style="width:12%; padding-bottom:1pt; text-align:center; text-indent:0pt; vertical-align:top"> July 2010 </td> <td style="width:10%; padding-bottom:1pt; text-align:center; text-indent:0pt; vertical-align:top"> July 2013 </td> <td style="width:2%; padding-bottom:1pt"> &#160; </td> <td style="width:1%; text-align:center; vertical-align:top"> &#160; </td> <td style="width:6%; padding-bottom:1pt; text-align:center; vertical-align:top"> 2.0590% </td> <td nowrap="nowrap" style="width:1%; 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vertical-align:top"> <p style="margin:0"> May 2010 and </p> <p style="margin:0"> June 2010 </p> </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> September 2010 </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> August 2013 </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:center; text-indent:0pt; vertical-align:top"> 1.5750%<br /> and 1.5275% </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> 1-Month<br /> LIBOR </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 439,955 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (6,368 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; 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padding-left:9pt; text-indent:-9pt"> Hedge the effects of changes in 1-Month LIBOR on LIBOR-based advance funding facilities </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> October 2011 </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> June 2013 </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> January 2015 </td> <td> &#160; </td> <td style="text-align:center; vertical-align:top"> &#160; </td> <td style="text-align:center; vertical-align:top"> 0.9780% </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt; vertical-align:top"> 1-Month<br /> LIBOR </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 100,946 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (759 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; 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</td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 501,838 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (294 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td colspan="9" nowrap="nowrap" style="text-align:left; padding-bottom:1pt; font-weight:bold; text-indent:0pt"> Total designated as hedges </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,143,685 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (8,162 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td colspan="9" nowrap="nowrap" style="text-align:left; padding-bottom:2.5pt; font-weight:bold; text-indent:0pt"> Total </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,393,685 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (14,491 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> The effective date of the swap is the date from which monthly settlements begin to be computed. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> We originally designated this swap as a cash flow hedge; however, the hedging relationship failed to meet the effectiveness criterion both for the third quarter of 2011 and on a prospective basis beyond the third quarter because declines in advances pledged as collateral to the hedged debt resulted in lower than anticipated borrowings. As a result, we discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization will continue until the related advance facility matures in July 2013. The balance outstanding under the advance facility at December 31, 2011 was $130,492. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (3) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Projected net interest settlements on the swaps for the next twelve months total approximately $4,263 of payments to the counterparty. The balance outstanding under the advance facility at December 31, 2011 was $382,729. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> Projected net settlements on the swap for the next twelve months total approximately $869 of payments to the counterparties. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table summarizes the use of derivatives during 2011: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Interest<br /> Rate Cap</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Foreign<br /> Exchange<br /> Forwards</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Interest<br /> Rate Swaps</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt"> Notional balance at December 31, 2010 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 6,400 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 846,888 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Additions </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,600,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 59,400 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 703,730 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Maturities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (19,600 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (156,933 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Terminations </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Notional balance at December 31, 2011 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,600,000 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 46,200 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 1,393,685 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Fair value of derivative assets (liabilities) at (1): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:9pt"> December 31, 2011 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,600 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (5,785 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (14,491 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:9pt"> December 31, 2010 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 319 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (15.670 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> Maturity </td> <td> &#160; </td> <td colspan="2" style="text-align:center"> May 2014 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align:center"> February<br /> 2012 to<br /> February<br /> 2013 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align:center"> July 2013 to January 2015 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:59%; padding-left:9pt; text-indent:-9pt"> Net realized and unrealized gains (losses) on derivative financial instruments that are not designated as hedges (1) </td> <td style="text-align:left; width:10%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (4,488 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 17 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 588 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-left:9pt; text-indent:-9pt"> Unrealized losses arising from ineffectiveness of interest rate swaps designated as cash flow hedges </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,393 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (150 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:9pt; text-indent:-9pt"> Amortization of deferred losses included in accumulated other comprehensive income related to a discontinued hedging relationship </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,545 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (7,426 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (133 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 588 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Included in Accumulated other comprehensive loss at December 31, 2011 and December 31, 2010, respectively, were $12,114 and $14,435 of deferred unrealized losses, before taxes of $4,354 and $5,196, respectively, on the interest rate swaps that we designated as cash flow hedges. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;20 SERVICING AND SUBSERVICING FEES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the components of servicing and subservicing fees for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%"> Loan servicing and subservicing fees </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 341,438 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 226,284 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 175,691 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Home Affordable Modification Program (HAMP) fees </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 42,025 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,363 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,581 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Late charges </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 38,557 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,760 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 28,292 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Loan collection fees </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,223 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,958 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,569 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Custodial accounts (float earnings) (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,105 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,843 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,803 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Receivables management and recovery fees (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 29,207 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 23,527 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 18,491 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 13,324 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 458,875 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 321,699 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 264,467 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> For 2010 and 2009, float earnings included $901 and $4,745, respectively, of interest income from our investment in auction rate securities. We liquidated our remaining investment in auction rate securities in 2010, and therefore, we did not recognize any interest income from these securities in 2011. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> These fees were earned by the Financial Services segment which we distributed as part of the Separation. See Note&#160;27 for additional information regarding this former business segment. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;21 INTEREST INCOME</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the components of interest income for each category of our interest-earning assets for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%"> Interest earning cash and short-term investments </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 756 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,190 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,543 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Trading securities - Subordinates and residuals </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,600 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Loans held for resale </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,291 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,398 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,643 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Loans, net - restricted for securitization investors </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 5,829 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 6,271 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 8,876 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 10,859 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 8,786 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;22 INTEREST EXPENSE</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table presents the components of interest expense for each category of our interest-bearing liabilities for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%"> Match funded liabilities </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 93,051 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 61,656 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 46,068 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Secured borrowings &#8211; owed to securitization investors </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 670 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 632 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Lines of credit and other secured borrowings </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,985 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 17,553 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,161 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left"> Debt securities: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-left:11pt"> Convertible Notes </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,834 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,834 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,898 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-left:11pt"> Capital Securities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,840 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,954 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,728 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left"> Investment line </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 376 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,618 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Escrow deposits </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,390 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 918 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 481 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 132,770 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 85,923 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 62,954 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;23 INCOME TAXES</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> For income tax purposes, the domestic and foreign components of income from continuing operations before taxes were as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="width:67%; text-align:left"> Domestic </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 118,708 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 33,394 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 89,847 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> Foreign </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,287 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 5,760 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,414 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 122,995 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 39,154 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 93,261 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The components of income tax expense (benefit) on continuing operations were as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Current: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt; padding-left:11pt"> Federal </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 13,894 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 8,836 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 51,341 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> State </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (195 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,049 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 300 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Foreign </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,079 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 2,033 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 933 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 14,778 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 11,918 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 52,574 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Deferred: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Federal </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 29,440 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (6,953 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 40,067 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> State </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 368 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (145 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,564 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Foreign </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 86 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 725 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,095 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Provision for valuation allowance on deferred tax assets </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 29,894 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (6,373 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 43,536 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Total </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 44,672 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,545 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 96,110 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Income tax expense differs from the amounts computed by applying the U.S. Federal corporate income tax rate of 35% as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt"> Expected income tax expense at statutory rate </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 43,049 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 13,704 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 32,641 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Differences between expected and actual income tax expense: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Indefinite deferral on earnings of non-U.S. affiliates </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,006 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> State tax, after Federal tax benefit </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 254 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 610 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,274 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Low-income housing tax credits </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (23 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Tax effect of Altisource Separation </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 749 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 48,577 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Provision for (reversal of) liability for selected tax items </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,611 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (9,126 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,196 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Permanent differences </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 61 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 878 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Foreign tax differential </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (716 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (197 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (161 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Provision-to-return and other </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (580 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Stock-based compensation tax expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (510 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 413 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (493 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 122 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt; padding-left:22pt"> Actual income tax expense </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 44,672 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 5,545 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 96,110 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Net deferred tax assets were comprised of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Deferred tax assets: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt; padding-left:11pt"> Mortgage servicing rights amortization </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 32,654 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 41,532 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Net operating loss carryforward </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 18,078 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,087 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Net unrealized gains and losses on securities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,828 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 11,397 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Partnership losses </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,960 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,007 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Bad debt and allowance for loan losses </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,020 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,716 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Accrued other liabilities </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,122 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,901 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Interest rate swaps </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,371 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,196 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Tax residuals and deferred income on tax residuals </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,941 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,847 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> State taxes </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,456 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Stock-based compensation expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,874 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,460 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Accrued incentive compensation </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,755 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,610 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Foreign deferred assets </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,512 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,598 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Accrued lease termination costs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,910 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,728 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Intangible asset amortization </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,641 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,276 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Valuation allowance on real estate </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 884 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,258 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Deferred income or loss on servicing advance receivables </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,745 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Capital losses </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,455 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Other </td> <td style="text-align:left; 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</td> <td style="border-bottom:black 1pt solid; text-align:right"> 138,878 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Deferred tax liabilities: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Deferred income or loss on servicing advance receivables </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,030 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Other </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 160 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 162 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 7,190 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 162 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt; padding-left:11pt"> Net deferred tax assets </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 107,968 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 138,716 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that the deferred tax asset can be realized in future periods. Among the factors considered in this evaluation are estimates of future taxable income, future reversals of temporary differences, tax character and the impact of tax planning strategies that may be implemented, if warranted. As a result of this evaluation, we concluded that no valuation allowance was necessary at December 31, 2011 and 2010. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We recognized total interest and penalties of $1,257, $182 and $278 in 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, accruals for interest and penalties were $1,636 and $379, respectively. As of December 31, 2011 and 2010, we had a total liability for selected tax items of $4,524 and $2,913, respectively, all of which if recognized would affect the effective tax rate. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2008 through the present and our India corporate tax returns for the years ended March 31, 2004 through the present. Our U.S. federal tax return for the years ended December 31, 2008 and 2009 are currently under examination. A reconciliation of the beginning and ending amount of the liability for selected tax items is as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:78%; text-indent:0pt"> Balance at January 1 </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 2,913 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 15,326 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Additions based on tax positions related to current year </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 683 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Additions for tax positions of prior years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,817 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 105 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Reductions for tax positions of prior years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (206 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8,884 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Lapses in statutes of limitation </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (4,317 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Balance at December 31 </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 4,524 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 2,913 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> At December 31, 2011, we a had net operating loss carryforward tax benefit of $18,078 that related to realized built-in losses from the acquisition of Ocwen Asset Investment Corporation in 1999.&#160; Utilization of these carryforwards is subject to an annual IRC section 382 limitation of $5,700. These carryforwards will expire beginning 2019 through 2024. We have no remaining capital loss carryforwards or tax credit carryforwards related to low-income housing tax credits. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;24 DISCONTINUED OPERATIONS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On December 3, 2009, we finalized and consummated the transaction to dispose of our investment in Bankhaus Oswald Kruber GmbH &amp; Co. KG (BOK), a German banking entity, for proceeds of $11,443 and recognized a pre-tax gain of $4,034 on the disposition. Management concluded that BOK met and continued to meet the definition of a discontinued operation through the date of disposition. Accordingly, the results of BOK are classified as discontinued in the accompanying consolidated financial statements. For segment reporting purposes, the operations of BOK are included in Corporate Items and Other. Results of discontinued operations, including both the operations of BOK and the gain on the disposition of BOK, for the years ended December 31 are as follows: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:67%; text-indent:0pt"> Revenue </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 78 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Operating expenses </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 298 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:18pt"> Loss from operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (220 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Other income, net (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,709 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:18pt"> Income before income taxes </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,489 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Income tax expense (benefit) (2) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (4,383 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,368 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:18pt"> Net income </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 4,383 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,121 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Other income for 2009 includes the gain of $4,034 gain that we recognized on the disposition of our investment in BOK. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> We recorded an income tax benefit of $4,383 in 2010 to recognize the effect of additional tax losses. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;25 BASIC AND DILUTED EARNINGS PER SHARE</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Basic EPS excludes common stock equivalents and is calculated by dividing net income attributable to OCN by the weighted average number of common shares outstanding during the year. We calculate diluted EPS by dividing net income attributable to OCN, as adjusted to add back interest expense net of income tax on the Convertible Notes, by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options, restricted stock awards and the Convertible Notes. The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2010</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>2009</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-decoration:underline; text-indent:0pt"> Basic EPS: </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:67%; padding-bottom:2.5pt; text-indent:0pt"> Net income attributable to OCN </td> <td style="text-align:left; width:2%; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; width:1%; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; width:7%; text-align:right"> 78,331 </td> <td nowrap="nowrap" style="width:1%; padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; width:2%; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; width:1%; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; width:7%; text-align:right"> 37,984 </td> <td nowrap="nowrap" style="width:1%; padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; width:2%; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; width:1%; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; width:7%; text-align:right"> 297 </td> <td nowrap="nowrap" style="width:1%; padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Weighted average shares of common stock </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 104,507,055 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 100,273,121 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 78,252,000 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Basic EPS </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 0.75 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 0.38 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-decoration:underline; text-indent:0pt"> Diluted EPS: </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Net income attributable to OCN </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 78,331 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 37,984 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 297 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Interest expense on Convertible Notes, net of income tax (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,187 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,122 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Adjusted net income attributable to OCN </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 79,518 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 39,106 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 297 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Weighted average shares of common stock </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 104,507,055 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 100,273,121 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 78,252,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Effect of dilutive elements: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Convertible Notes (1) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,637,224 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4,637,224 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Stock options (2) (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,711,682 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,571,282 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt; padding-left:11pt"> Common stock awards </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,388 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Dilutive weighted average shares of common stock </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 111,855,961 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 107,483,015 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 78,252,000 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Diluted EPS </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 0.71 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 0.36 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Stock options excluded from the computation of diluted EPS: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Anti-dilutive (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 27,031 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 557,080 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt; padding-left:11pt"> Market-based (3) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 468,750 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,615,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,788,750 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> The effect of our Convertible Notes on diluted EPS is computed using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, are added back to net income. Conversion of the Convertible Notes into shares of common stock has not been assumed for purposes of computing diluted EPS for the 2009 because the effect would be anti-dilutive. The effect is anti-dilutive whenever interest expense on the Convertible Notes, net of income tax, per common share obtainable on conversion exceeds basic EPS. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:5%; text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; width:95%; text-indent:0pt"> These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> Shares that are issuable upon the achievement of certain performance criteria related to OCN&#8217;s stock price and an annualized rate of return to investors. See Note&#160;26 for additional information regarding these market-condition options. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;26 EMPLOYEE COMPENSATION AND BENEFIT PLANS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We maintain a defined contribution plan to provide post retirement benefits to our eligible employees. We also maintain additional compensation plans for certain employees. We designed these plans to facilitate a pay-for-performance policy, further align the interests of our officers and key employees with the interests of our shareholders and assist in attracting and retaining employees vital to our long-term success. These plans are summarized below. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160; <b>Retirement Plan</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We maintain a defined contribution 401(k) plan. We match 50% of each employee&#8217;s contributions, limited to 2% of the employee&#8217;s compensation. Our contributions to the 401(k) plan were $238, $233 and $403 for the years ended December 31, 2011, 2010 and 2009, respectively. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160; <b>Annual Incentive Plan</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan (the AIP) is our primary incentive compensation plan for executives and other key employees. Under the terms of the AIP, participants can earn cash and equity-based awards as determined by the Compensation Committee of the Board of Directors. The awards are generally based on objective performance criteria established by the Committee which includes corporate profitability, growth in our core businesses, meeting budget objectives and achieving cost savings through Six Sigma initiatives. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. In 2007, the stockholders approved the 2007 Equity Incentive Plan (the 2007 Equity Plan) to replace the 1991 Non-Qualified Stock Option Plan. The 2007 Equity Plan authorizes the grant of stock options, restricted stock or other equity-based awards to employees. At December 31, 2011, there were 11,073,599 shares of common stock remaining available for future issuance under the 2007 Equity Plan. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> For the past five years we have awarded annual incentive compensation entirely in cash. However, in July 2008, November 2009 and October 2011, we awarded stock options to members of senior management under the 2007 Equity Plan. These awards had the following characteristics in common: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Type of Award</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Percent of<br /> Options<br /> Awarded</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Vesting Period</b> </p> </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; padding-left:9pt; text-indent:-9pt"> Service Condition: </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:28%; padding-left:18pt; text-indent:-9pt; vertical-align:top"> Time-Based </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right; vertical-align:top"> 25 </td> <td nowrap="nowrap" style="width:1%; text-align:right; vertical-align:top"> % </td> <td style="text-align:left; width:3%"> &#160; </td> <td style="text-align:left; width:57%; text-indent:0pt"> Ratably over four years (&#188; on each of the four anniversaries of the grant date) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; padding-left:9pt; text-indent:-9pt"> Market Condition: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr> <td style="text-align:left; vertical-align:top; padding-left:18pt; text-indent:-9pt"> Performance-Based </td> <td style="text-align:left; vertical-align:bottom"> &#160; </td> <td style="vertical-align:bottom; text-align:left"> &#160; </td> <td style="vertical-align:top; text-align:right"> 50 </td> <td nowrap="nowrap" style="vertical-align:bottom; text-align:left"> &#160; </td> <td style="text-align:left; vertical-align:bottom"> &#160; </td> <td style="text-align:left; vertical-align:bottom; text-indent:0pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr style="background-color:#eaf9e8"> <td style="text-align:left; vertical-align:top; padding-bottom:1pt; padding-left:18pt; text-indent:-9pt"> Extraordinary Performance-Based </td> <td style="text-align:left; vertical-align:bottom; padding-bottom:1pt"> &#160; </td> <td style="vertical-align:bottom; border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="vertical-align:top; border-bottom:black 1pt solid; text-align:right"> 25 </td> <td nowrap="nowrap" style="vertical-align:bottom; padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; vertical-align:bottom; padding-bottom:1pt"> &#160; </td> <td style="text-align:left; vertical-align:bottom; padding-bottom:1pt; text-indent:0pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; font-weight:bold; padding-left:9pt; text-indent:-9pt"> Total award </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 100 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> % </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Stock options awarded prior to 2008 generally vest ratably over a five&#8211;year period including the award year. The contractual term of all options granted is ten years from the grant date, except where employment terminates by reason of retirement, in which case the time-based options will terminate no later than three years after such retirement or the end of the option term, whichever is earlier. The terms of the market-based options do not include a retirement provision. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Stock option activity for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; 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text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 8,084,953 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> 5.03 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 9,278,581 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> 4.97 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; 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</td> <td style="padding-bottom:2.5pt; text-align:right"> 5.13 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 3,486,405 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> 4.98 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $4,114, $4,265 and $2,306 for 2011, 2010 and 2009, respectively. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> In connection with the exercise of stock options during 2011 and 2010, employees delivered 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 410,977 and 752,595 net shares of stock were issued in 2011 and 2010, respectively, related to the exercise of stock options. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> Excluding 468,750 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2011 was $70,152 and $47,358, respectively. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (4) </td> <td style="text-align:left; text-indent:0pt"> The total fair value of stock options that vested and became exercisable during 2011, 2010 and 2009, based on grant-date fair value, was $1,342, $1,948 and $2,294, respectively. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Stock options outstanding at December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="8" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Options Outstanding</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="6" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Options Exercisable</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align:bottom"> <td style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Award Year</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Exercise</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Price<br /> Range</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Number (1)</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Weighted</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Average</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Exercise</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Price</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life (2)</b> </p> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; 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text-align:left"> $ </td> <td style="width:11%; text-align:right"> 12.83 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right"> 545,000 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 12.83 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="width:11%; text-align:center; text-indent:0pt"> 10 years </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2009 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.82 &#8211; 10.67 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 215,625 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6.99 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 7 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 29,375 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6.81 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2008 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.82 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,872,000 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.82 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 7 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,655,750 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.82 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2006 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7.16 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 308,753 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7.16 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 5 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 308,753 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7.16 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2005 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5.81 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 245,420 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5.81 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 4 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 245,420 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5.81 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2004 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.84 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 173,546 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.84 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 3 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 173,546 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 4.84 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2003 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3.72&#8211;6.47 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 191,812 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5.97 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 2 years </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 191,812 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5.97 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2002 </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1.13&#8211;1.69 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 201,097 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1.49 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:center; text-indent:0pt"> 1 year </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 201,097 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1.49 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> 2001 </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> 3.49&#8211;4.22 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 141,475 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> 3.78 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:center; text-indent:0pt"> (3) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 141,475 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> 3.78 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 7,894,728 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 4,947,228 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:2.5pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> A total of 4,992,312 market-based options were outstanding at December 31, 2011, of which 2,579,813 were exercisable. None of the market performance criteria have been met for the 60,000 market-based options granted in 2009 at an exercise price of $10.67 or the 408,750 market-based options granted in 2011 at exercise price of $12.83. For all other market-based options, which were granted at an exercise price of $4.82, the two levels of market performance criteria were met in August 2009 and October 2011. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> At December 31, 2011, the weighted average remaining contractual term of options outstanding and options exercisable was 6.2 years and 5.7 years, respectively. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> These stock options were exercised in 2012 prior to their expiration date of January 31, 2012. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As a result of the Separation, OCN stock option awards are held by both Ocwen and Altisource employees as follows at December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:89%; text-indent:0pt"> Held by Ocwen employees </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:7%; text-align:right"> 6,051,495 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Held by Altisource employees </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,843,233 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Total outstanding </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 7,894,728 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In addition, at December&#160;31, 2011, Ocwen employees held 1,701,312 options to purchase Altisource common stock. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We are responsible for fulfilling all stock incentive awards related to OCN common stock, and Altisource is responsible for fulfilling all stock incentive awards related to Altisource common stock regardless of whether such stock incentive awards are held by our or Altisource&#8217;s employees. Notwithstanding the foregoing, our stock-based compensation expense, resulting from awards outstanding at the Separation date, is based on the stock incentive awards held by our employees regardless of whether such awards were issued by Ocwen or Altisource. Accordingly, stock-based compensation that we recognize as expense with respect to Altisource stock incentive awards is included in Additional paid-in capital on our Consolidated Balance Sheet. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Compensation expense related to options is measured based on the grant-date fair value of the options using an appropriate valuation model based on the vesting condition of the award. The fair value of the time-based options was determined using the Black-Scholes options pricing model, while a lattice (binomial) model was used to determine the fair value of the market-based options. 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font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Black-Scholes</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin:0"> <b>Binomial</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:42%; text-indent:0pt"> Risk-free interest rate </td> <td style="width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:9%; text-align:right"> 1.57 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> % </td> <td style="width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:12%; text-align:right"> 0.35% &#8211; 2.74 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> % </td> <td style="width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:9%; text-align:right"> 2.51 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> % </td> <td style="width:2%"> &#160; </td> <td style="width:1%; text-align:left"> &#160; </td> <td style="width:12%; text-align:right"> 0.38% &#8211; 3.94 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> % </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Expected stock price volatility (1) </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 41 </td> <td nowrap="nowrap" style="text-align:left"> % </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 30% - 41 </td> <td nowrap="nowrap" style="text-align:left"> % </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 38 </td> <td nowrap="nowrap" style="text-align:left"> % </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 38% &#8211; 46 </td> <td nowrap="nowrap" style="text-align:left"> % </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Expected dividend yield </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Expected option life (in years) (2) </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 6.5 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:right; text-indent:0pt"> 4.25 &amp; 5.75 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:right; text-indent:0pt"> 4.5 &amp; 5.5 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Contractual life (in years) </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Fair value </td> <td> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 5.51 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:right; text-indent:0pt"> $4.66 &amp; $4.09 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 3.96 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" style="text-align:right; text-indent:0pt"> $3.99 &amp; $3.40 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (1) </td> <td style="width:95%; text-align:left; text-indent:0pt"> We estimate volatility based on the historical volatility of OCN&#8217;s common stock over the most recent period that corresponds with the estimated expected life of the option. </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="font:10pt times new roman; width:100%"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%"> (2) </td> <td style="width:95%; text-align:left; text-indent:0pt"> For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The following table sets forth equity-based compensation related to stock options and stock awards and the related excess tax benefit for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; font-weight:bold; text-align:center; text-indent:0pt"> 2011 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; 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</td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:61%; padding-left:9pt; text-indent:0pt"> Stock option awards </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 926 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 1,088 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 1,802 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-left:22pt; text-indent:0pt"> Stock awards </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 28 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> Excess tax benefit related to share-based awards </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,142 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,157 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 551 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As of December 31, 2011, unrecognized compensation costs related to non-vested stock options amounted to $2,927, which will be recognized over a weighted-average remaining requisite service period of approximately 2.27 years. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;27 BUSINESS SEGMENT REPORTING</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Effective January 1, 2011, we realigned our business segments in response to the growth in our core servicing business and the continuing reductions in our equity investments in asset management vehicles and our remaining investments in subprime loans and residual securities. Effective with this realignment, our former Loans and Residuals segment and Asset Management Vehicles segment are included in Corporate Items and Other. Our business segments reflect the internal reporting that we use to evaluate operating performance of products and services and to assess the allocation of our resources. Segment results for prior periods have been restated to conform to the current segment structure. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Due to the Separation, as of August 10, 2009, neither the assets and liabilities, nor the subsequent operations of the former Ocwen Solutions line of business comprising the Mortgage Services, Financial Services and Technology Products segments are included in our results. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> A brief description of our current business segments is as follows: </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Servicing.</i> This segment provides loan servicing for a fee, including asset management and resolution services, primarily to owners of subprime residential mortgages. In most cases, we provide these services either because we purchased the MSR from the owner of the mortgage or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Subprime loans represent residential loans that were made to borrowers who generally did not qualify under guidelines of Fannie Mae and Freddie Mac (nonconforming loans) or have subsequently become delinquent. This segment is primarily comprised of our core residential servicing business. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> <i>Corporate Items and Other.</i> We report items of revenue and expense that are not directly related to a business, business activities that are individually insignificant, interest income on short-term investments of cash and certain corporate expenses in Corporate Items and Other. Debt securities, which are comprised of the 3.25% Convertible Notes and the 10.875% Capital Securities, are also included in Corporate Items and Other. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Effective with the segment realignment discussed above, Corporate Items and Other includes the former Loans and Residuals segment and the former Asset Management Vehicles segment<i>.</i> Our recently acquired equity investment in Correspondent One is also included in Corporate Items and Other. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The former Loans and Residuals segment included our investments in subprime residential loans held for resale and subprime residual mortgage backed trading securities related to our former subprime loan origination operation and whole loan purchase and securitization activities. The Loans and Residuals segment also included the four loan securitization trusts that we began including in our consolidated financial statements effective January 1, 2010. The former Asset Management Vehicles segment was comprised of our 27% equity investment in OSI and approximately a 25% equity investment in ONL and OREO. These unconsolidated entities are engaged in the management of residential assets. Other business activities included in Corporate Items and Other that are not considered to be of continuing significance include our affordable housing investment activities. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We allocate interest income and expense to each business segment for funds raised or funding of investments made, including interest earned on cash balances and short-term investments and interest incurred on corporate debt. We also allocate expenses generated by corporate support services to each business segment. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Financial information for our segments is as follows: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:9pt times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Servicing</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Mortgage<br /> Services</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Financial<br /> Services</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Technology<br /> Products</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Corporate<br /> Items and<br /> Other</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Corporate<br /> Eliminations</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <b>Business<br /> Segments<br /> Consolidated</b> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; padding-right:-4.35pt; text-indent:-11pt; padding-left:11pt"> Results of Operations </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td colspan="4" nowrap="nowrap" style="text-align:left; text-decoration:underline; text-indent:0pt"> For the year ended December 31, 2011 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td colspan="2" nowrap="nowrap" style="padding-bottom:1pt"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:23%; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Revenue (1) (2) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 494,871 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 2,348 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> (1,289 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> ) </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 495,930 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:22pt; text-indent:-11pt"> Operating expenses (1) (3) (4) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 231,238 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 8,971 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (625 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 239,584 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Income (loss) from operations </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 263,633 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (6,623 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (664 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 256,346 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest income </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 110 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,766 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,876 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (132,574 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (196 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (132,770 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Other (1) (2) (5) (6) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,711 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (14,832 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 664 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (9,457 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:44pt"> Other income (expense), net </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (127,753 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (6,262 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 664 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (133,351 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; padding-left:22pt; text-indent:-11pt"> Income (loss) from continuing operations before income taxes </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 135,880 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (12,885 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 122,995 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td colspan="4" nowrap="nowrap" style="text-align:left; text-decoration:underline; text-indent:0pt"> For the year ended December 31, 2010 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; 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</td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Revenue (1) (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 359,798 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 2,112 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (1,529 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 360,381 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:22pt; text-indent:-11pt"> Operating expenses (1) (3) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 200,108 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 37,130 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (764 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 236,474 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; 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text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (35,018 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (765 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 123,907 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest income </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 207 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10,652 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 10,859 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (80,514 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (5,409 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (85,923 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Other (1) (2) (6) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,188 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (9,266 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 765 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (9,689 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:44pt"> Other income (expense), net </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (81,495 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (4,023 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 765 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (84,753 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; padding-left:22pt; text-indent:-11pt"> Income (loss) from continuing operations before income taxes </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 78,195 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (39,041 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 39,154 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td colspan="4" nowrap="nowrap" style="text-align:left; text-decoration:underline; text-indent:0pt"> For the year ended December 31, 2009 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="padding-bottom:1pt"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="padding-bottom:1pt; text-align:right"> &#160; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Revenue (1) (2) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 272,725 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 54,052 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 40,293 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 28,331 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 2,917 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (17,590 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 380,728 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Operating expenses (1) (3)(7) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 129,252 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 37,040 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 45,002 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 18,638 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 22,247 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (16,525 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 235,654 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Income (loss) from operations </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 143,473 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 17,012 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (4,709 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 9,693 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (19,330 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,065 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 145,074 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:22pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest income </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 266 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,518 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,786 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Interest expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (59,458 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (28 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,285 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (289 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (1,894 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (62,954 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:33pt"> Other (1) (2) (6) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,400 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 829 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 25 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 186 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (3,150 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,065 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 2,355 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-right:-4.35pt; text-indent:-11pt; padding-left:44pt"> Other income (expense), net </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (55,792 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 803 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1,260 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (103 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 3,474 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 1,065 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (51,813 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; padding-left:22pt; text-indent:-11pt"> Income (loss) from continuing operations before income taxes </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 87,681 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 17,815 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (5,969 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 9,590 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (15,856 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 93,261 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; 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text-align:left"> $ </td> <td style="width:7%; text-align:right"> 4,737,157 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:0pt; padding-left:11pt"> December 31, 2010 </td> <td style="text-align:left"> &#160; 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</td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-right:-4.35pt; text-indent:0pt; padding-left:11pt"> December 31, 2009 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,191,212 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 578,138 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; 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</td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; width:34%; text-indent:-11pt; padding-left:22pt"> Depreciation expense </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 2,410 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 1,750 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:2%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:7%; text-align:right"> 4,160 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of MSRs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 42,996 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 42,996 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of debt discount </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,853 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 8,853 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of debt issuance costs &#8211; senior secured term loan </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,764 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,764 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:-11pt; padding-left:11pt"> For the year ended December 31, 2010: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Depreciation expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 5,916 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,596 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 7,512 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of MSRs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 31,455 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 31,455 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of debt discount </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,217 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 172 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,389 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of debt issuance costs &#8211; senior secured term loan </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,086 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,086 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; font-weight:bold; text-indent:-11pt; padding-left:11pt"> For the year ended December 31, 2009: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Depreciation expense </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 54 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 19 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 283 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 3,204 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 1,182 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 4,742 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of MSRs </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,228 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 32,228 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of intangibles </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,624 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,624 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Amortization of debt discount </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,437 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#8212; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 1,735 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 5,172 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (4) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Operating expenses for 2011 and 2010 include non-recurring transaction-related expenses associated with the Litton and HomEq acquisitions of $50,340 and $52,603, respectively, recorded in the Servicing segment. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (5) </td> <td style="text-align:left; text-indent:0pt"> Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (6) </td> <td style="text-align:left; text-indent:0pt"> Other income (expense) for 2010 and 2009 includes gains (losses) on auction rate securities of $(7,909) and $11,863, respectively, recorded in Corporate Items and Other. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (7) </td> <td style="text-align:left; text-indent:0pt"> Operating expenses for 2009 include advisory expenses related to the Separation transaction of $3,477 recorded in Corporate Items and Other. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;28 RELATED PARTY TRANSACTIONS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Although Altisource is a separate company from Ocwen after the Separation, Altisource and Ocwen have the same Chairman of the Board, William C. Erbey. As a result, he has obligations to Ocwen as well as to Altisource. Mr. Erbey currently owns approximately 14% of the common stock of Ocwen and owns approximately 23% of the common stock of Altisource. </p><br/><p style="text-align:left; text-indent:27pt; margin:0; font:10pt Times New Roman,Times,Serif"> For purposes of governing certain of the ongoing relationships between Ocwen and Altisource after the Separation, and to provide for an orderly transition to the status of two independent companies, we entered into certain agreements with Altisource. Under these agreements, Altisource and Ocwen provide to each other services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, law, strategic planning, compliance and other areas where we, and Altisource, may need transition assistance and support following the Separation. Altisource also provides certain technology products and support services to us, including the REALSuite&#8482; of applications that support our Servicing business. In addition, in the third quarter of 2011, Ocwen and Altisource entered into a Data Access and Services Agreement under which Ocwen agreed to make available to Altisource certain data from Ocwen&#8217;s servicing portfolio in exchange for a per asset fee. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Certain services provided by Altisource under these contracts are charged to the borrower and/or loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160;Our business is currently dependent on many of the services and products provided under these long-term contracts which are effective for up to eight years with renewal rights. We believe the rates charged under these agreements are market rates as they are materially consistent with one or more of the following: the fees charged by Altisource to other customers for comparable services and the rates Ocwen pays to or observes from other service providers. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> For the years ended December 31, 2011 and 2010, we generated revenues of $12,242 and $13,520 respectively, under our agreements with Altisource, principally from fees for providing referral services to Altisource. We also incurred expenses of $23,226 and $20,082 for the years ended December 31, 2011 and 2010, respectively, principally for technology products and support services including the REALSuite&#8482; of products that support our Servicing business. For the period from August 10, 2009 through December 31, 2009, we generated $3,534 of revenues and incurred $6,858 of expenses under our agreements with Altisource. At December 31, 2011 and 2010, the net payable to Altisource was $1,965 and $1,433, respectively. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In addition to the revenues and expenses we recorded associated with the agreements discussed above, during 2011 and 2010 we sold certain equipment to Altisource that we had acquired from Litton and HomEq. Also, in 2010 we entered into an agreement to sublease from Altisource our principal executive office space in Atlanta, Georgia. See Note&#160;2 and Note&#160;10 for additional information regarding these transactions. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As disclosed in Note&#160;11, Ocwen and Altisource each hold a 49% equity interest in Correspondent One. Correspondent One facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2011, Ocwen had invested $15,000 in Correspondent One. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;29 REGULATORY REQUIREMENTS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our business is subject to extensive regulation by federal, state and local governmental authorities, including the Federal Trade Commission (FTC), the federal Consumer Financial Protection Bureau (CFPB), the SEC and various state agencies that license, audit and conduct examinations of our mortgage servicing and collection activities in a number of states. From time to time, we also receive requests from federal, state and local agencies for records, documents and information relating to our policies, procedures and practices regarding our loan servicing and debt collection business activities. We incur significant ongoing costs to comply with new and existing laws and governmental regulation of our business. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We must comply with a number of federal, state and local consumer protection laws including, among others, the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, Homeowners Protection Act, the Federal Trade Commission Act and, more recently, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and state foreclosure laws. These statutes apply to debt collection, use of credit reports, safeguarding of non&#8722;public personally identifiable information about our customers, foreclosure and claims handling, investment of and interest payments on escrow balances and escrow payment features, and mandate certain disclosures and notices to borrowers. These requirements can and do change as statutes and regulations are enacted, promulgated or amended. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Our failure to comply with applicable federal, state and local consumer protection laws can lead to: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="text-align:left; width:3%; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> civil and criminal liability; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> loss of our licenses and approvals to engage in the servicing of residential mortgage loans; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> damage to our reputation in the industry; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> inability to raise capital; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> administrative fines and penalties and litigation, including class action lawsuits; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> governmental investigations and enforcement actions. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The recent trend among federal, state and local lawmakers and regulators has been toward increasing laws, regulations and investigative proceedings with regard to the residential real estate lenders and servicers. Over the past few years, state and federal lawmakers and regulators have adopted a variety of new or expanded laws and regulations, including the Dodd-Frank Act discussed below. The changes in these regulatory and legal requirements, including changes in their enforcement, could materially and adversely affect our business and our financial condition, liquidity and results of operations. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On July 21, 2010, the Dodd-Frank Act was signed into law by President Obama. The Dodd-Frank Act constitutes a sweeping reform of the regulation and supervision of financial institutions, as well as the regulation of derivatives, capital market activities and consumer financial services. Many provisions of the Dodd-Frank Act are required to be implemented through rulemaking by the appropriate federal regulatory agency and will take effect over several years. The ultimate impact of the Dodd-Frank Act and its effects on our business will therefore not be fully known for an extended period of time. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The Dodd-Frank Act is extensive and significant legislation that, among other things: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="text-align:left; width:3%; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> creates an inter-agency body that is responsible for monitoring the activities of the financial system and recommending a framework for substantially increased regulation of large interconnected financial services firms; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> creates a liquidation framework for the resolution of certain bank holding companies and other large and interconnected nonbank financial companies; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> strengthens the regulatory oversight of securities and capital markets activities by the SEC; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> creates the CFPB, a new federal entity responsible for regulating consumer financial services. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The CFPB will directly impact the regulation of residential mortgage servicing in a number of ways. First, the CFPB will have rulemaking authority with respect to many of the federal consumer protection laws applicable to mortgage servicers, including TILA and RESPA. Second, the CFPB will have supervision, examination and enforcement authority over consumer financial products and services offered by certain non-depository institutions and large insured depository institutions. The CFPB&#8217;s jurisdiction will include those persons originating, brokering or servicing residential mortgage loans and those persons performing loan modification or foreclosure relief services in connection with such loans. We expect that OLS will be subject to supervision, examination and enforcement by the CFPB. </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr> <td style="text-align:center; width:100%"> F-53 <hr noshade="noshade" size="2" style="color:Black; width:100%" /> </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Title XIV of the Dodd-Frank Act contains the Mortgage Reform and Anti-Predatory Lending Act (Mortgage Act). The Mortgage Act imposes a number of additional requirements on servicers of residential mortgage loans, such as OLS, by amending certain existing provisions and adding new sections to TILA and RESPA. The penalties for noncompliance with TILA and RESPA are also significantly increased by the Mortgage Act and could lead to an increase in lawsuits against mortgage servicers. Like other parts of the Dodd-Frank Act, the Mortgage Act generally requires that implementing regulations be issued before many of its provisions are effective. Therefore, many of these provisions in the Mortgage Act will not be effective until 2013 or early 2014. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> When fully implemented, the Mortgage Act will prevent servicers of residential mortgage loans from taking certain actions, including the following: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="text-align:left; width:3%; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> force-placing insurance, unless there is a reasonable belief that the borrower has failed to comply with a contract&#8217;s requirement to maintain insurance; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> charging a fee for responding to a valid qualified written request; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> failing to take timely action to respond to the borrower&#8217;s request to correct errors related to payment, payoff amounts, or avoiding foreclosure; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> failing to respond within ten (10) business days of a request from the borrower to provide contact information about the owner or assignee of loan; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> failing to return an escrow balance or provide a credit within twenty (20) business days of a residential mortgage loan being paid off by the borrower. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In addition to these restrictions, the Mortgage Act imposes certain new requirements and/or shortens the existing response time for servicers of residential mortgage loans. These new requirements include the following: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="width:4%"> &#160; </td> <td style="text-align:left; width:3%; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; width:93%; text-indent:0pt"> acknowledging receipt of a qualified written request under RESPA within five (5) business days and providing a final response within thirty (30) business days; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> promptly crediting mortgage payments received from the borrower on the date of receipt except where payment does not conform to previously established requirements; and </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td style="text-align:left; font-family:Symbol; text-indent:0pt"> &#183; </td> <td style="text-align:left; text-indent:0pt"> sending an accurate payoff statement within a reasonable period of time but in no case more than seven (7) business days after receipt of a written request from the borrower. </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We expect to continue incurring significant ongoing operational and system costs in order to prepare for compliance with these new laws and regulations. Furthermore, there may be additional federal or states laws enacted that place additional obligations on servicers of residential mortgage loans. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Effective June 30, 2005, we voluntarily terminated our status as a federal savings bank. Prior to returning our original thrift charter to the Office of Thrift Supervision (OTS), we operated as a federal savings bank, and Ocwen was a registered savings and loan holding company. Our primary regulatory authority was the OTS. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We continued the Bank&#8217;s non-depository businesses, including its residential mortgage servicing business, under OLS, a licensed mortgage servicer in all 50 states, the District of Columbia and two U.S. territories. We entered into various agreements to obtain the approval of the OTS for our plan. We directly or indirectly received assignment of all of the assets, liabilities and business (the Assignment). We entered into an agreement (the Guaranty) in favor of the OTS and any holders of claims with respect to the liabilities we assumed in connection with the Assignment. The Guaranty contained affirmative covenants relating to the maintenance of a $5,000 cash collateral account, reporting requirements, transactions with affiliates, preservation of the existence of our subsidiaries and maintenance of not less than $35,000 of unencumbered financial assets. As of December 31, 2011, we believe that we were in compliance with all of the covenants specified in the Guaranty. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The Guaranty also contained negative covenants that restrict our ability to (i) incur indebtedness if certain financial ratios are not achieved or if we fail to maintain a specified minimum net worth, (ii) enter into merger transactions or a sale of substantially all of our assets, (iii) sell, lease, transfer or otherwise dispose of our assets, or (iv) pay dividends or acquire our capital stock. We agreed not to declare or pay any dividends on or acquire any of our capital stock or other ownership interests or make any distributions or return of capital to our stockholders, partners or members, except for (i) such dividends or distributions that are payable only in OCN&#8217;s common stock or (ii) such declarations, dividends, acquisitions, distributions or returns of capital in cash or other property if we maintain a minimum net worth of $333,000 and rating of B2 from Moody&#8217;s and B- from S&amp;P on our unsecured, non credit-enhanced debt and any such capital distributions do not exceed our consolidated net income for the year plus our retained earnings for the two preceding years. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The Guaranty provided that it would remain in effect until the later of (a) the sixth anniversary of the date on which the Bank&#8217;s federal bank charter was cancelled or (b) the date on which we have paid in full (i) any obligations that arise out of certain assumed liabilities with respect to which a claim has been asserted on or prior to the sixth anniversary of the date on which our federal bank charter was cancelled and (ii) all other amounts payable by us under the Guaranty. The Guaranty expired by its terms on February 29, 2012. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> There are a number of foreign regulations that are applicable to our operations in India, including acts that govern licensing, employment, safety, taxes, insurance, and the basic law which governs the creation, continuation and the winding up of companies as well as the relationships between the shareholders, the company, the public and the government. The Central Act is applicable to all of India, while various state acts may be applicable to certain locations in India. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;30 COMMITMENTS AND CONTINGENCIES</b> </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Litigation</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Since April 2004, we have been included as a defendant in litigation in federal court in Chicago which consolidated certain class actions and individual actions brought by borrowers in various federal and state courts challenging the defendants&#8217; mortgage servicing practices, including charging improper or unnecessary fees, misapplying borrower payments and similar allegations (the MDL Proceeding). We believe the allegations in the MDL Proceeding are without merit and have defended against them vigorously. In the interests of obtaining finality and cost certainty with regard to this complex and protracted litigated matter, however, defendants, including Ocwen, entered into a definitive written agreement with plaintiffs&#8217; counsel with respect to a class settlement. Ocwen&#8217;s portion of the proposed settlement payment is $5,163 plus certain other non-cash consideration and administrative costs. On July 1, 2011, the Court granted final approval to this class settlement. Defendants, including Ocwen, have paid their respective portions of the settlement into escrow and notice of the settlement has been provided to potential class members. On July 6, 2011, the Court entered final judgment and no appeals were filed. While there are some claims that are subject to opt-outs by individual plaintiffs, these are not viewed as material at this time. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In September 2006, the Bankruptcy Trustee in Chapter 7 proceedings involving American Business Financial Services, Inc. (ABFS) brought an action against multiple defendants, including Ocwen, in Bankruptcy Court. The action arises out of Debtor-in-Possession financing to ABFS by defendant Greenwich Capital Financial Products, Inc. and the subsequent purchases by Ocwen of MSRs and certain residual interests in mortgage-backed securities previously held by ABFS. The Trustee filed an amended complaint in March 2007 alleging various claims against Ocwen including turnover, fraudulent transfers, accounting, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, fraud, civil conspiracy and conversion. The Trustee seeks compensatory damages in excess of $100,000 and punitive damages jointly and severally against all defendants. In April 2008, Ocwen filed an answer denying all charges and a counterclaim for breach of contract, fraud, negligent misrepresentation and indemnification in connection with the MSR purchase transaction. Fact&#160;discovery is complete and both Ocwen and the Trustee have filed motions for partial summary judgment. We believe that the Trustee&#8217;s allegations against Ocwen are without merit and intend to continue to vigorously defend against this matter. We are unable to provide any estimate of possible loss or range of possible loss at this time. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We are subject to various other pending legal proceedings, including those subject to loss sharing provisions of the Litton Acquisition more fully described in Note&#160;2. In our opinion, the resolution of those proceedings will not have a material effect on our financial condition, results of operations or cash flows. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> &#160; <b>Tax Matters</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On December 21, 2009, the India tax authorities issued a draft income tax assessment order (the First Order) with respect to assessment year 2006 &#8211; 2007. The proposed adjustment would impose upon OFSPL additional tax of INR 41,760 ($784) and interest of INR 18,297 ($344) for the Assessment Year 2006 &#8211; 2007, and penalties may be assessed. OCN and OFSPL intend to vigorously contest this Order and any imposition of tax and interest and do not believe they have violated any statutory provision or rule. OFSPL has filed an application with the Dispute Resolution Panel for the First Order. OFSPL received the final assessment order (the Second Order) on November 24, 2010, with a demand of INR 64,085 ($1,203), reflecting tax of INR 41,712 ($783) and interest of INR 22,373 ($420). In response, OFSPL petitioned for assistance to be provided by the Competent Authority under the Mutual Agreement Procedures of the U.S./India income tax treaty, furnished a Bank Guarantee for INR 76,754 ($1,441) related to transfer pricing matters and paid INR 7,647 ($144) towards non-transfer pricing issues. Furthermore, OFSPL has submitted an appeal of the Second Order to the Income Tax Appellate Tribunal. &#160; </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On January 4, 2011, OFSPL received a draft assessment order (the Third Order) with respect to assessment year 2007 &#8211; 2008. The proposed adjustment would impose upon OFSPL additional tax of INR 63,885 ($1,199) and interest of INR 28,748 ($540). OFSPL filed an application and received no relief from the Dispute Resolution Panel for the Third Order. OFSPL filed an appeal of the Third Order with the Income Tax Appellate Tribunal on December 20, 2011 and is in the process of filing a further appeal under the Mutual Agreement Procedures of the U.S./India income tax treaty. Due to the uncertainties inherent in the Appeals and Competent Authority processes, Ocwen and OFSPL cannot currently estimate any additional exposure beyond the amount currently detailed in the Orders. We also cannot predict when these tax matters will be resolved. Competent Authority assistance requests under the Mutual Agreement Procedures should preserve Ocwen&#8217;s right to offset any potential increase in India taxes against Ocwen&#8217;s U.S. taxes. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Other Information</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In July 2010, OLS received two subpoenas from the Federal Housing Finance Agency (FHFA) as conservator for Freddie Mac and Fannie Mae in connection with ten private label mortgage securitization transactions where Freddie Mac and Fannie Mae have invested. The transactions include mortgage loans serviced but not originated by OLS or its affiliates. There is no allegation of wrongdoing in the subpoenas against OLS, and we are cooperating with the FHFA&#8217;s requests. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On November 24, 2010, OLS received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) requesting documents and information regarding various servicing activities. There is no allegation of wrongdoing against OLS in the FTC CID, and we are cooperating with the FTC&#8217;s request. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On November 7, 2011, OLS received a CID from the Attorney General&#8217;s Office of the Commonwealth of Massachusetts requesting documents and information regarding certain foreclosures executed in Massachusetts. There is no allegation of wrongdoing against OLS in the Massachusetts Attorney General CID, and we are cooperating with the Massachusetts Attorney General&#8217;s request. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On January 18, 2012, OLS received a subpoena from the New York Department of Financial Services requesting documents regarding OLS&#8217; policies, procedures and practices regarding lender placed or &#8220;force placed&#8221; insurance which is required to be provided for borrowers who allow their hazard insurance policies to lapse. There is no allegation of wrongdoing against OLS in the subpoena, and we are cooperating with the New York Department of Financial Service&#8217;s request. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Recent inquiries into&#160;servicer foreclosure processes could result in actions by state or federal governmental bodies, regulators or the courts that could result in temporary moratoria on mortgage foreclosures or an extension of foreclosure timelines, which may be applicable generally to the servicing industry or to us in particular.&#160; In addition, a number of our match funded advance facilities contain provisions that limit the eligibility of advances to be financed based on the length of time that advances are outstanding, and three of our match funded advance facilities have provisions that limit new borrowings if average foreclosure timelines extend beyond a certain time period, either of which, if such provisions applied, could adversely affect liquidity by reducing our average effective advance rate.&#160; In addition, governmental bodies may impose regulatory fines or penalties as a result of our foreclosure processes or impose additional requirements or restrictions on such activities which could increase our operating expenses.&#160; Increases in the amount of advances and the length of time to recover advances, fines or increases in operating expenses, and decreases in the advance rate and availability of financing for advances would lead to increased borrowings, reduced cash and higher interest expense which&#160; could negatively impact our liquidity and profitability. With respect to the Servicing segment, Ocwen is not the title owner of record for any foreclosed real estate, and neither Ocwen nor any of its subsidiaries make any type of direct title warranty to a subsequent purchaser of foreclosed real estate. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen has been a party to loan sales and securitizations dating back to the 1990s.&#160; The majority of securities issued in these transactions has been retired and are not subject to putback risk. There is one remaining securitization with an original UPB of approximately $200,000 where Ocwen provided representations and warranties and the loans were originated in the last decade.&#160; Ocwen performed due diligence on each of the loans included in this securitization. The outstanding UPB of this securitization was $47,670 at December 31, 2011, and the outstanding balance of the notes was $48,462. Ocwen is not aware of any inquiries or claims regarding loan putbacks for any transaction where we made representations and warranties. We do not expect loan putbacks to result in any material change to our financial position, operating results or liquidity. </p><br/><p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>Commitments</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2018 exclusive of renewal option periods. Our annual aggregate minimum rental commitments under these leases are summarized as follows: </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:88%; text-indent:0pt"> 2012 </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 6,237 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2013 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 7,457 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2014 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,700 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2015 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 3,485 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:0pt"> 2016 </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,924 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:0pt"> Thereafter </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 2,265 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:0pt"> Total minimum lease payments </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 26,068 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In connection with the HomEq Acquisition<b>&#160;</b>we assumed the obligation for the lease agreements associated with the former HomEq facilities located in Raleigh, North Carolina and Sacramento, California. Although these agreements expire in 2017 and 2018, respectively, we have exercised our option to terminate the leases effective in 2013. The rental commitments in the table above for operating leases include the remaining monthly payments and the early termination penalties due through the early termination dates in 2013 for these leases. These amounts total $2,668 and $3,579 for 2012 and 2013, respectively. As part of the Litton Acquisition, we assumed the leases associated with the former Litton facilities located in Houston, Texas and McDonough, Georgia. These agreements expire in 2012 and 2017, respectively. The lease associated with the Houston, Texas facility will likely not be renewed upon expiration. The table above includes total rental commitments of $7,294 related to these leases. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> In December 2010, we entered into an agreement with Altisource to sublease of 2,094 square feet of space as our principal executive office in Atlanta, Georgia. Under the terms of the agreement, Ocwen is responsible for monthly base rent of $3 plus a proportionate amount of maintenance costs and other shared services. The sublease is in effect through October 2014. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> We converted rental commitments for our facilities outside the United States of America to U.S. dollars using exchange rates in effect at December 31, 2011. Rent expense for 2011, 2010 and 2009 was $5,578, $12,315 and $6,156, respectively. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On October 19, 2011, Ocwen entered into a purchase agreement with SCI Services, Inc. (SCI), Saxon Capital Holdings, LLC (Saxon Capital) and Morgan Stanley Capital Holdings, LLC (Morgan Stanley) to acquire (i) all of the issued and outstanding stock of SCI and (ii) certain MSRs owned by Morgan Stanley and its affiliates (the Saxon Acquisition). SCI is a subsidiary of Saxon Capital and the parent company of Saxon Mortgage Services, Inc., a provider of servicing and subservicing of primarily non-prime residential mortgage loans. Morgan Stanley is the parent company of Saxon Capital Holdings, LLC. The Saxon Acquisition will result in the acquisition of a servicing portfolio of approximately $26,800,000 in UPB as of June 30, 2011, of which Ocwen subserviced approximately $10,800,000 as of June 30, 2011. The Saxon Acquisition also includes approximately $12,900,000 of loans that SCI subservices for Morgan Stanley and others. This subservicing may be transferred to Ocwen, pending approval by the owners of the servicing, or will be subserviced by Ocwen under short-term agreements. The base purchase price for the Saxon Transaction is $59,300. In addition, Ocwen will pay approximately $292,200 for the portion of the approximately $1,392,000 of Saxon servicing advance receivables that were not financed by third parties. We expect to complete the Saxon Acquisition in March 2012. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen is funding the amounts for the Saxon Acquisition through a combination of cash on-hand, cash generated through operations, available credit, an additional $200,000 borrowing under our senior secured term loan facility and additional borrowing under existing servicing advance facilities. The additional $200,000 borrowing under the senior secured term loan will increase mandatory principal repayments by $5,263 per quarter. The new borrowings bear interest at the same rate(s) as the initial term loan and have the same maturity date. See Note&#160;15 for additional information regarding the terms of the senior secured term loan. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As a part of the Saxon Acquisition, the sellers and Ocwen have agreed to indemnification provisions for the benefit of the other party. While the sellers have agreed to retain certain contingent liabilities for losses, fines and penalties that could result from claims by government authorities and certain third parties relating to SCI&#8217;s pre-closing foreclosure, servicing and loan origination practices, the sellers and Ocwen have agreed to share certain losses arising out of potential third-party claims in connection with SCI&#8217;s pre-closing performance under its servicing agreements. The sellers have agreed to be liable for (i) 75% of any such losses until the amount paid by the sellers is equal to 60% of the Saxon Shared Loss Cap of $83,000 and (ii) thereafter, 25% of any such losses until the amount paid by the sellers is equal to the Saxon Shared Loss Cap. Ocwen has agreed to be liable for (i) first, 25% of any such losses until the amount paid by the sellers is equal to 60% of the Saxon Shared Loss Cap, (ii) second, 75% of any such losses until the amount paid by the sellers is equal to the Saxon Shared Loss Cap and (iii) thereafter, 100% of any such losses in excess of the Saxon Shared Loss Cap. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On November 4, 2011, Ocwen entered into a servicing rights purchase agreement with JPMorgan Chase, N.A. (JPMCB) to acquire less than 2% of JPMCB&#8217;s mortgage servicing portfolio which includes servicing rights for certain third party private securitizations in which neither JPMCB nor any of its affiliated entities were issuers or loan sellers. The transaction relates to MSRs for approximately 82,000 non-prime loans with a UPB of approximately $15,000,000 as of September 30, 2011 (the JPMCB MSR Transaction). The purchase price, subject to adjustment at closing and inclusive of servicing advance receivables, is approximately $950,000, which will be payable in cash by Ocwen.&#160; Ocwen expects to finance $625,000 of the purchase price through an existing servicing advance facility.&#160; We do not expect any adjustment to the purchase price to be material. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As part of the JPMCB MSR Transaction, JPMCB and Ocwen have agreed to indemnification provisions for the benefit of the other party.&#160; There is no assurance that JPMCB will fulfill its indemnification obligations. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The JPMCB MSR Transaction is expected to close in early April 2012; however the JPMCB MSR Transaction may close in phases on more than one date.&#160; Closing of the JPMCB MSR Transaction is subject to closing conditions, including but not limited to obtaining applicable third party authorizations and amendments.&#160; There can be no assurance that the JPMCB MSR Transaction will be consummated as proposed or at all. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> Ocwen is funding the amounts for the JPMCB MSR Transaction through a combination of cash on-hand, cash generated through operations, available credit, additional borrowing under our September 1, 2011 senior secured term loan facility and servicing advance facilities. </p><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;31 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)</b> </p><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif; font-size:10pt; font-family:times new roman"> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> &#160; </td> <td style="padding-bottom:1pt; font-weight:bold"> &#160; </td> <td colspan="14" nowrap="nowrap" style="border-bottom:black 1pt solid"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>Quarters Ended</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-bottom:1pt; text-align:center; padding-left:11pt; text-indent:-11pt"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>December 31,</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>September 30,</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>June 30,</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:center; font-weight:bold"> <b>&#160;</b> </td> <td style="padding-bottom:1pt; font-weight:bold; text-align:center"> <b>&#160;</b> </td> <td colspan="2" nowrap="nowrap" style="border-bottom:black 1pt solid; text-align:center"> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>March 31,</b> </p> <p style="margin-top:0; text-align:center; margin-bottom:0"> <b>2011</b> </p> </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left; font-weight:bold"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; width:52%; text-indent:-11pt; padding-left:11pt"> Revenue </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 156,625 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 122,462 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 105,837 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> <td style="text-align:left; width:1%"> &#160; </td> <td style="width:1%; text-align:left"> $ </td> <td style="width:9%; text-align:right"> 111,006 </td> <td nowrap="nowrap" style="width:1%; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:11pt"> Operating expenses (1) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 90,481 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 65,650 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 42,254 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 41,199 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income from operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 66,144 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 56,812 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 63,583 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 69,807 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:11pt"> Other expense </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (47,625 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (27,861 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (22,547 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (35,318 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-left:11pt; text-indent:-11pt"> Income from continuing operations before income taxes </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 18,519 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 28,951 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 41,036 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 34,489 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:11pt"> Income tax expense (benefit) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 8,864 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 8,730 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 14,653 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 12,425 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income from continuing operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,655 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,221 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 26,383 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 22,064 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> Income (loss) from discontinued operations, net of taxes </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; 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</td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (4 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 7 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (5 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 10 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; font-weight:bold; text-indent:-11pt; padding-left:11pt"> Net income attributable to OCN </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 9,651 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 20,228 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 26,378 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 22,074 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Basic earnings per share </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income from continuing operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.08 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.20 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.26 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.22 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:22pt"> Income from discontinued operations </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; 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text-align:right"> 0.26 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 0.22 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Diluted earnings per share </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; 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padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 63,265 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 93,374 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 44,658 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 35,177 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income from operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 50,008 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 2,195 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 31,295 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 40,409 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:11pt"> Other expense </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (34,849 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (22,907 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (18,033 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (8,964 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-left:11pt; text-indent:-11pt"> Income (loss) from continuing operations before income taxes </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 15,159 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (20,712 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 13,262 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 31,445 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:11pt"> &#160;Income tax expense (benefit) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 5,235 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (7,487 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (2,777 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 10,574 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income (loss) from continuing operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,924 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (13,225 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 16,039 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,871 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> Income from discontinued operations, net of taxes </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 4,383 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Net income (loss) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 9,924 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> (8,842 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 16,039 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> 20,871 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; padding-left:11pt; text-indent:-11pt"> Net loss (income) attributable to non-controlling interests </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (3 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 7 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (1 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> (11 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> ) </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; font-weight:bold; text-indent:-11pt; padding-left:11pt"> Net income (loss) attributable to OCN </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 9,921 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> (8,835 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> ) </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 16,038 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:2.5pt"> &#160; </td> <td style="border-bottom:black 2.5pt double; text-align:left"> $ </td> <td style="border-bottom:black 2.5pt double; text-align:right"> 20,860 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="padding-left:11pt; text-indent:-11pt"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:11pt"> Basic earnings per share: </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:right"> &#160; </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; text-indent:-11pt; padding-left:22pt"> Income (loss)from continuing operations </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.10 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> (0.13 </td> <td nowrap="nowrap" style="text-align:left"> ) </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.16 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> <td style="text-align:left"> &#160; </td> <td style="text-align:left"> $ </td> <td style="text-align:right"> 0.21 </td> <td nowrap="nowrap" style="text-align:left"> &#160; </td> </tr> <tr style="background-color:#eaf9e8; vertical-align:bottom"> <td style="text-align:left; padding-bottom:1pt; text-indent:-11pt; padding-left:22pt"> Income from discontinued operations </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> 0.04 </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> <td style="text-align:left; padding-bottom:1pt"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:left"> &#160; </td> <td style="border-bottom:black 1pt solid; text-align:right"> &#8212; </td> <td nowrap="nowrap" style="padding-bottom:1pt; text-align:left"> &#160; </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left; padding-bottom:2.5pt; text-indent:-11pt; padding-left:22pt"> Net income (loss) attributable to OCN </td> <td style="text-align:left; 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text-align:right"> 0.20 </td> <td nowrap="nowrap" style="padding-bottom:2.5pt; text-align:left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="width:100%; font:10pt Times New Roman,Times,Serif"> <tr style="vertical-align:top"> <td style="text-align:left; width:5%; text-indent:0pt"> (1) </td> <td style="text-align:left; width:95%; text-indent:0pt"> Operating expenses for 2011 include non-recurring costs of $50,340 that we incurred as a result of the Litton Acquisition, including $472, $18,746 and $31,122 in the second, third and fourth quarters, respectively. See Note&#160;2 for additional information on the Litton Acquisition. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (2) </td> <td style="text-align:left; text-indent:0pt"> As a result of the HomEq Acquisition, we incurred non-recurring costs of $52,603 during 2010, including $1,250, $33,901 and $17,452 in the second, third and fourth quarters, respectively. See Note&#160;2 for additional information on the HomEq Acquisition. </td> </tr> <tr style="vertical-align:top"> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align:top"> <td style="text-align:left; text-indent:0pt"> (3) </td> <td style="text-align:left; text-indent:0pt"> In connection with litigation matters, we established $24,166 of additional reserves in 2010, including $5,163 in the second quarter, $18,413 in the third quarter and $590 in the fourth quarter. See Note&#160;30 for additional information on litigation. </td> </tr> </table><br/> <p style="text-align:left; text-indent:0pt; margin:0; font:10pt Times New Roman,Times,Serif"> <b>NOTE&#160;32 SUBSEQUENT EVENTS</b> </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On January 27, 2012, Ocwen terminated its foreign exchange forward contracts which had a notional balance of $46,200 at December 31, 2011 and recognized a gain of $3,359. See Note&#160;19 for additional information on these derivative financial instruments. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On February 10, 2012, OLS entered into an agreement to sell to HLSS Holdings, LLC (HLSS Holdings), a wholly owned subsidiary of Home Loan Servicing Solutions, Ltd. (HLSS), the right to receive the servicing fees, excluding ancillary income, relating to certain mortgage servicing (Rights to MSRs) for approximately $16 billion of UPB and related servicing advances that Ocwen acquired in connection with the HomEq Acquisition. With the exception of the Class D Term Note, HLSS Holdings will also assume the related match funded liabilities under the structured servicing advance financing facility that Ocwen entered into to fund the advances that were acquired. We refer to this sale to HLSS Holdings of the Rights to MSRs and related servicing advances and the assumption of the HomEq Servicing advance facility by HLSS Holdings as the HLSS Transaction. Prior to the closing of the HLSS Transaction, Ocwen will repay the Class D Term Notes which had an outstanding balance of $11,638 at December 31, 2011. See Note&#160;13 for additional information regarding the match funded liabilities to be assumed by HLSS Holdings. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> OLS also entered into an agreement with HLSS Holdings for the provision of certain professional services to OLS and the provision by OLS of certain professional services to HLSS Holdings. Services provided by HLSS Holdings include pricing and valuation analysis of potential MSR acquisitions, treasury management services and other similar services. Services provided by OLS include legal, licensing and regulatory compliance support services, risk management services and other similar services. This agreement has an initial term of six years and is subject to termination by either party upon the occurrence of certain events. The fees charged by OLS and HLSS Holdings are based on the actual costs incurred by the party providing the service plus an additional markup of 15%. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> As part of the HLSS Transaction, OLS will retain legal ownership of the MSRs and continue to service the related mortgage loans. However, OLS will service the loans for a reduced fee because HLSS Holdings will assume the match funded liabilities as well as the obligation to make and finance future servicing advances related to the MSRs. OLS will be obligated to transfer legal ownership of the MSRs to HLSS Holdings if and when the required third party consents are obtained. At that time, OLS would commence subservicing the MSRs under essentially the same terms and conditions pursuant to a subservicing agreement with HLSS Holdings, which was also executed on February 10, 2012. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> The HLSS Transaction will not close until HLSS completes an initial public offering of its ordinary shares and other closing conditions are satisfied. The HLSS Transaction will result in cash proceeds of approximately $181,000 to Ocwen, 25% of which will be used to reduce the balance on Ocwen&#8217;s senior secured term loan that it entered into on September 1, 2011 as required under the terms of the related loan agreement. The remainder will be used for general corporate purposes. See Note&#160;15 for additional information regarding the senior secured term loan. As of December 31, 2011, Ocwen had paid fees of $1,479 on behalf of HLSS for organizational costs and costs associated with HLSS&#8217; planned initial public offering. This amount is included in Other receivables. Ocwen may make additional payments on behalf of HLSS until the initial public offering is completed at which time Ocwen expects to be reimbursed by HLSS. </p><br/><p style="text-align:left; text-indent:18pt; margin:0; font:10pt Times New Roman,Times,Serif"> On February 27, 2012, we provided notice of redemption to all the holders of our 3.25% Convertible Notes stating our election to redeem all of the $56,435 outstanding notes on March 28, 2012 (Redemption Date).&#160; Holders can have their notes redeemed at a price of 100% of principal outstanding, plus any accrued and unpaid interest. The Convertible Notes called for redemption may be converted at any time prior to the close of business on the business day prior to the Redemption Date.&#160; Holders may convert their notes to shares of our common stock, at a conversion rate of 82.1693 per $1,000 (in dollars) principal amount of the Convertible Notes (representing a conversion price of $12.17 per share). Upon conversion, we can choose to satisfy all or any portion of the conversion obligation in cash.&#160; We expect most of the holders to elect conversion and we plan to satisfy the entire conversion obligation in shares.&#160; Assuming all holders elect to convert, the number of shares of common stock outstanding is expected to increase by 4,637,224. See Note&#160;16 for additional information regarding the Convertible Notes. </p><br/>