XML 123 R97.htm IDEA: XBRL DOCUMENT v2.4.0.8
NOTE 15 OTHER BORROWINGS (Detail) (USD $)
9 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 23, 2013
Dec. 31, 2012
Sep. 30, 2013
Uncommitted Line Of Credit
Mar. 19, 2013
Master repurchase agreement
Mar. 18, 2013
Master repurchase agreement
Sep. 30, 2013
SSTL
Sep. 30, 2013
SSTL
Option a (i)
Sep. 30, 2013
SSTL
Option (a) ii
Sep. 30, 2013
SSTL
Option a (iii)
Sep. 30, 2013
SSTL
Option b
Sep. 30, 2013
SSTL
Rescap Acquisition
Debt Instrument [Line Items]                        
Debt instrument, borrowings       $ 100,000,000 $ 300,000,000 $ 120,000,000           $ 1,300,000,000
Debt instrument, unamortized discount (5,679,000) [1],[2]   (8,232,000) [1],[2]                 6,500,000
Debt instrument, frequency of periodic payment                       Quarterly
Principal amount of borrowings in consecutive quarterly installments                       3,300,000
Borrowings, description of variable rate basis               the prime rate in effect on such day the federal funds rate in effect on such day the one-month Eurodollar rate (1-Month LIBOR)] the one-month Eurodollar rate (1-Month LIBOR)]  
Borrowings, basis spread on variable rate                 0.50% 2.75% 3.75%  
Borrowings, index floor rate                   2.25% 1.25%  
Percentage of beneficial interest acquirable on underlying mortgage loans       100.00%                
Gain on retirement of financing liability 4,500,000                      
Number of shares issued upon conversion   3,145,640                    
Common stock to be repurchased             $ 1,500,000,000          
[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 generally 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, and 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. However, for assets sales that are part of an HLSS Transaction, we have the option, within 180 days, either to invest the net cash proceeds in MSRs or related assets, such as advances, or to repay loan principal. 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%. To date we have elected option (b) to determine the interest rate. On September 23, 2013, we entered into Amendment No. 1 to the Senior Secured Term Loan Facility Agreement and Amendment No. 1 to the related Pledge and Security Agreement. These amendments: permit repurchases of all of the Preferred Stock, which may be converted to common stock prior to repurchase, and up to $1.5 billion of common stock, subject, in each case, to pro forma financial covenant compliance;eliminate the dollar cap on Junior Indebtedness (as defined in the SSTL) but retain the requirement for any such issuance to be subject to pro forma covenant compliance; include a value for whole loans (i.e., loans held for sale) in collateral value for purposes of calculating the loan-to-value ratio and include specified deferred servicing fees and the fair value of specified mortgage servicing rights in net worth for purposes of calculating the ratio of consolidated total debt to consolidated tangible net worth; and modify the applicable quarterly covenant levels for the corporate leverage ratio, ratio of consolidated total debt to consolidated tangible net worth and loan-to-value ratio.