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NOTE 15 OTHER BORROWINGS | 3 Months Ended
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Mar. 31, 2013
Secured and Unsecured Debt Other [Abstract] |
OTHER BORROWINGS |
Note 15 | Other Borrowings
Lines of credit and other secured and unsecured borrowings are comprised of the following at the dates indicated:
|  |  |  |  |  |  |  | Available |  |  | Balance Outstanding |
Borrowings |  | Collateral |  | Interest Rate |  | Maturity |  | Borrowing Capacity |  |  | March 31, 2013 |  |  | December 31, 2012 |
Servicing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | 1ML + 550 bps with a LIBOR floor of 150 bps |  |  |  |  |  |  |  |  |  |  |  |  |  |
SSTL (1) |  | (1) |  | (1) |  | Sept. 2016 |  | $ | — |  |  | $ | — |  |  | $ | 314,229 |
SSTL (2) |  | (2) |  | (2) |  | Feb. 2018 |  |  | — |  |  |  | 1,300,000 |  |  |  | — |
Senior unsecured term loan (3) |  |  |  | 1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps |  | Mar. 2017 |  |  | — |  |  |  | — |  |  |  | 75,000 |
Financing liability – MSRs pledged (4) |  | MSRs (4) |  | (4) |  | (4) |  |  | — |  |  |  | 393,776 |  |  |  | 303,705 |
Financing liability – MSRs pledged (5) |  | MSRs (5) |  | (5) |  | (5) |  |  | — |  |  |  | 1,890 |  |  |  | 2,603 |
Promissory note (6) |  | MSRs |  | 1ML + 350 bps |  | May 2017 |  |  | — |  |  |  | 18,467 |  |  |  | 18,466 |
|  |  |  |  |  |  |  |  | — |  |  |  | 1,714,133 |  |  |  | 714,003 |
Lending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Master repurchase agreement (7) |  | Loans held for sale (LHFS) |  | 1ML + 175 bps |  | Mar. 2014 |  |  | 194,788 |  |  |  | 105,212 |  |  |  | 88,122 |
Participation agreement (8) |  | LHFS |  | N/A |  | Apr. 2013 |  |  | — |  |  |  | 50,682 |  |  |  | 58,938 |
Master repurchase agreement (9) |  | LHFS |  | 1ML + 200 bps |  | May 2013 |  |  | 195,996 |  |  |  | 54,004 |  |  |  | 133,995 |
Master repurchase agreement |  | LHFS |  | 1ML + 200 bps |  | Jul. 2013 |  |  | 232,392 |  |  |  | 67,608 |  |  |  | 107,020 |
|  |  |  |  |  |  |  |  | 623,176 |  |  |  | 277,506 |  |  |  | 388,075 |
Corporate Items and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under an agreement to repurchase (10) |  | Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes |  | Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps |  | Monthly |  |  | — |  |  |  | 2,592 |  |  |  | 2,833 |
|  |  |  |  |  |  |  |  | 623,176 |  |  |  | 1,994,231 |  |  |  | 1,104,911 |
Discount (1)(2) |  |  |  |  |  |  |  |  | — |  |  |  | (6,337 | ) |  |  | (8,232 | )
|  |  |  |  |  |  |  | $ | 623,176 |  |  | $ | 1,987,894 |  |  | $ | 1,096,679 |
| (1) | In February 2013, we repaid this loan in full and wrote off the remaining discount as part of the loss on extinguishment.
| (2) | On February 15, 2013, we entered into a new SSTL facility agreement and borrowed $1.3 billion that was used principally to fund the ResCap Acquisition and repay the balance of the previous SSTL. The loan was issued with an original issue discount of $6.5 million that we are amortizing over the term of the loan. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $3.3 million. In addition, we are required to use the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal. Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold. The borrowings are secured by a first priority security interest in substantially all of the assets of Ocwen. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate in effect on such day, (ii) the federal funds rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 2.75% and a base rate floor of 2.25% or (b) the one month Eurodollar rate, plus a margin of 3.75% with a 1-Month LIBOR floor of 1.25%.
| (3) | We repaid this loan in full in February 2013.
| (4) | As part of the HLSS Transactions, we transfer certain Rights to MSRs to HLSS. Because we have not yet transferred legal title to the MSRs, we account for these transfers as financings with the proceeds from the sale of the Rights to MSRs recorded as a financing liability. The financing liability is amortized using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. The liability has no contractual maturity but is amortized over the estimated life of transferred Rights to MSRs. The balance of the liability is reduced each month based on the change in the estimated fair value of the transferred rights to MSRs. See Note 4 – Asset Sales and Financing for additional information.
| (5) | We sold MSRs for certain loans to an unrelated third party in December 2012; however, we are required to repurchase the MSRs for any loans that cannot be refinanced by the purchaser under the federal government’s Home Affordable Refinance Program (HARP). As a result, the sale is being accounted for as a financing. The financing liability is being amortized using the interest method with the servicing income that is remitted to the purchaser representing payments of principal and interest.
| (6) | Prepayments of the balance on this note may be required if the borrowing base, as defined, falls below the amount of the note outstanding.
| (7) | On March 19, 2013, we extended the Master Repurchase Agreement to March 18, 2014.
| (8) | Under this participation agreement, the lender provides financing on an uncommitted basis for up to $100.0 million at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. However, the transaction does not qualify for sales accounting treatment as is, therefore, accounted for as a financing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. In April 2013, we extended the participation agreement maturity date to May 31, 2014.
| (9) | On January 25, 2013, we extended the Master Repurchase Agreement maturity date to May 3, 2013.
| (10) | This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral.

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- Definition The disclosure for information about secured debt, including repayment terms, interest rates, collateral provided, unused borrowing capacity, restrictions on use of assets and activities, and other matters important to the users of the financial statements, such as the effects of refinancing and non-compliance with debt covenants. + References No definition available. + Details
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