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NOTE 27 BUSINESS SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2011
Segment Reporting Disclosure [Text Block] | NOTE 27 BUSINESS SEGMENT REPORTING 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. 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. A brief description of our current business segments is as follows: Servicing. 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. Corporate Items and Other. 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. 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. Our recently acquired equity investment in Correspondent One is also included in Corporate Items and Other. 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. 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. Financial information for our segments is as follows:
|  | Servicing |  |  | Mortgage Services |  |  | Financial Services |  |  | Technology Products |  |  | Corporate Items and Other |  |  | Corporate Eliminations |  |  | Business Segments Consolidated |
Results of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (1) (2) |  | $ | 494,871 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,348 |  |  | $ | (1,289 | ) |  | $ | 495,930 |
Operating expenses (1) (3) (4) |  |  | 231,238 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,971 |  |  |  | (625 | ) |  |  | 239,584 |
Income (loss) from operations |  |  | 263,633 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6,623 | ) |  |  | (664 | ) |  |  | 256,346 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 110 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,766 |  |  |  | — |  |  |  | 8,876 |
Interest expense |  |  | (132,574 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (196 | ) |  |  | — |  |  |  | (132,770 | )
Other (1) (2) (5) (6) |  |  | 4,711 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (14,832 | ) |  |  | 664 |  |  |  | (9,457 | )
Other income (expense), net |  |  | (127,753 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6,262 | ) |  |  | 664 |  |  |  | (133,351 | )
Income (loss) from continuing operations before income taxes |  | $ | 135,880 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (12,885 | ) |  | $ | — |  |  | $ | 122,995 |
For the year ended December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (1) (2) |  | $ | 359,798 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,112 |  |  | $ | (1,529 | ) |  | $ | 360,381 |
Operating expenses (1) (3) |  |  | 200,108 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 37,130 |  |  |  | (764 | ) |  |  | 236,474 |
Income (loss) from operations |  |  | 159,690 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (35,018 | ) |  |  | (765 | ) |  |  | 123,907 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 207 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,652 |  |  |  | — |  |  |  | 10,859 |
Interest expense |  |  | (80,514 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,409 | ) |  |  | — |  |  |  | (85,923 | )
Other (1) (2) (6) |  |  | (1,188 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (9,266 | ) |  |  | 765 |  |  |  | (9,689 | )
Other income (expense), net |  |  | (81,495 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,023 | ) |  |  | 765 |  |  |  | (84,753 | )
Income (loss) from continuing operations before income taxes |  | $ | 78,195 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (39,041 | ) |  | $ | — |  |  | $ | 39,154 |
For the year ended December 31, 2009 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (1) (2) |  | $ | 272,725 |  |  | $ | 54,052 |  |  | $ | 40,293 |  |  | $ | 28,331 |  |  | $ | 2,917 |  |  | $ | (17,590 | ) |  | $ | 380,728 |
Operating expenses (1) (3)(7) |  |  | 129,252 |  |  |  | 37,040 |  |  |  | 45,002 |  |  |  | 18,638 |  |  |  | 22,247 |  |  |  | (16,525 | ) |  |  | 235,654 |
Income (loss) from operations |  |  | 143,473 |  |  |  | 17,012 |  |  |  | (4,709 | ) |  |  | 9,693 |  |  |  | (19,330 | ) |  |  | (1,065 | ) |  |  | 145,074 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 266 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 8,518 |  |  |  | — |  |  |  | 8,786 |
Interest expense |  |  | (59,458 | ) |  |  | (28 | ) |  |  | (1,285 | ) |  |  | (289 | ) |  |  | (1,894 | ) |  |  | — |  |  |  | (62,954 | )
Other (1) (2) (6) |  |  | 3,400 |  |  |  | 829 |  |  |  | 25 |  |  |  | 186 |  |  |  | (3,150 | ) |  |  | 1,065 |  |  |  | 2,355 |
Other income (expense), net |  |  | (55,792 | ) |  |  | 803 |  |  |  | (1,260 | ) |  |  | (103 | ) |  |  | 3,474 |  |  |  | 1,065 |  |  |  | (51,813 | )
Income (loss) from continuing operations before income taxes |  | $ | 87,681 |  |  | $ | 17,815 |  |  | $ | (5,969 | ) |  | $ | 9,590 |  |  | $ | (15,856 | ) |  | $ | — |  |  | $ | 93,261 |
|  | Servicing |  |  | Corporate Items and Other |  |  | Corporate Eliminations |  |  | Business Segments Consolidated |
Total Assets |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2011 |  | $ | 4,310,354 |  |  | $ | 426,803 |  |  | $ | — |  |  | $ | 4,737,157 |
December 31, 2010 |  | $ | 2,495,966 |  |  | $ | 425,443 |  |  | $ | — |  |  | $ | 2,921,409 |
December 31, 2009 |  | $ | 1,191,212 |  |  | $ | 578,138 |  |  | $ | — |  |  | $ | 1,769,350 |
(1) | Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered. Intersegment billings are as follows:
|  | Servicing |  |  | Mortgage Services |  |  | Technology Products |  |  | Corporate Items and Other |  |  | Business Segments Consolidated |
For the year ended December 31, 2011 |  | $ | 1,170 |  |  | $ | — |  |  | $ | — |  |  | $ | 119 |  |  | $ | 1,289 |
For the year ended December 31, 2010 |  |  | 1,356 |  |  |  | — |  |  |  | — |  |  |  | 173 |  |  |  | 1,529 |
For the year ended December 31, 2009 |  |  | 5,668 |  |  |  | 59 |  |  |  | 20,425 |  |  |  | 471 |  |  |  | 26,623 |
(2) | Servicing has a contractual right to receive interest income on float balances. However, Corporate controls investment decisions associated with the float balances. Accordingly, Servicing receives revenues generated by those investments that are associated with float balances but are reported in Corporate Items and Other. Gains and losses associated with corporate investment decisions are recognized in Corporate Items and Other.
(3) | Depreciation and amortization expense are as follows:
|  | Servicing |  |  | Mortgage Services |  |  | Financial Services |  |  | Technology Products |  |  | Corporate Items and Other |  |  | Business Segments Consolidated |
For the year ended December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation expense |  | $ | 2,410 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,750 |  |  | $ | 4,160 |
Amortization of MSRs |  |  | 42,996 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,996 |
Amortization of debt discount |  |  | 8,853 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,853 |
Amortization of debt issuance costs – senior secured term loan |  |  | 9,764 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,764 |
For the year ended December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation expense |  | $ | 5,916 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,596 |  |  | $ | 7,512 |
Amortization of MSRs |  |  | 31,455 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,455 |
Amortization of debt discount |  |  | 5,217 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 172 |  |  |  | 5,389 |
Amortization of debt issuance costs – senior secured term loan |  |  | 2,086 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,086 |
For the year ended December 31, 2009: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation expense |  | $ | 54 |  |  | $ | 19 |  |  | $ | 283 |  |  | $ | 3,204 |  |  | $ | 1,182 |  |  | $ | 4,742 |
Amortization of MSRs |  |  | 32,228 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32,228 |
Amortization of intangibles |  |  | — |  |  |  | — |  |  |  | 1,624 |  |  |  | — |  |  |  | — |  |  |  | 1,624 |
Amortization of debt discount |  |  | 3,437 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,735 |  |  |  | 5,172 |
(4) | Operating expenses for 2011 and 2010 include non-recurring transaction-related expenses associated with the Litton and HomEq acquisitions of $50,340 and $52,603, respectively, recorded in the Servicing segment.
(5) | Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects.
(6) | Other income (expense) for 2010 and 2009 includes gains (losses) on auction rate securities of $(7,909) and $11,863, respectively, recorded in Corporate Items and Other.
(7) | Operating expenses for 2009 include advisory expenses related to the Separation transaction of $3,477 recorded in Corporate Items and Other.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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