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NOTE 17 OTHER LIABILITIES

12 Months Ended

Dec. 31, 2011

Other Liabilities Disclosure [Text Block]

NOTE 17 OTHER LIABILITIES

Other liabilities were comprised of the following at December 31:

		2011				2010
Accrued expenses (1)(2)		$	53,516			$	54,122
Payable to servicing and subservicing investors (3)			28,824				22,443
Checks held for escheat (1)			24,687				18,087
Derivatives, at fair value (4)			20,276				15,670
Servicing liabilities (1)(5)			9,662				3,415
Liability for selected tax items (6)			4,524				2,913
Payable to Altisource (7)			4,274				3,877
Accrued interest payable			4,140				4,830
Deferred income (8)			660				10,394
Other			8,086				6,980
		$	158,649			$	142,731

(1)	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 2. We also assumed servicing liabilities with a fair value of $8,972 and an obligation for checks held for escheat of $6,145.

(2)	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.

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

(4)	The balances represent the fair values of interest rate swaps and foreign exchange forward contracts. See Note 19 for additional information regarding these derivatives.

(5)	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.

(6)	See Note 23 for information on the liability for selected tax items.

(7)	See Note 28 for additional information regarding our relationship with Altisource and transactions between Ocwen and Altisource.

(8)	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 15 for additional information on the fee reimbursement advance facility.