Note 21 — Interest Expense

The following table presents the components of interest expense for the years ended December 31:



	2013		2012		2011
Match funded liabilities	$	75,979	$	122,292	$	93,051
Financing liabilities (1) (2)	228,985		54,710		—
Other secured borrowings	81,851		41,510		32,985
Debt securities:
3.25% Convertible Notes (3)	—		153		1,834
10.875% Capital Securities (4)	—		1,894		2,840
Other	8,771		2,896		2,060
	$	395,586	$	223,455	$	132,770

(1)

Includes interest expense of $228.6 million and $54.7 million in 2013 and 2012, respectively, related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below. As discussed in Note 1A — Restatement and Revision of Previously Issued Consolidated Financial Statements, we are restating our previously issued audited Consolidated Financial Statements as of December 31, 2013 and for the year then ended to correct an error in applying the interest method to financing liabilities in connection with Rights to MSRs sold to HLSS. Interest expense on the HLSS Transaction financing liabilities for the year ended December 31, 2013 has been restated.



	2013		2012
Servicing fees collected on behalf of HLSS	$	633,377	$	117,789
Less: Subservicing fee retained by Ocwen	317,723		50,162
Net servicing fees remitted to HLSS	315,654		67,627
Less: Reduction in financing liability	87,069		12,917
Interest expense on HLSS financing liability	$	228,585	$	54,710


(2)	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues. See Note 2 — Securitizations and Variable Interest Entities for additional information.


(3)	We redeemed the remaining 3.25% Convertible Notes outstanding on March 28, 2012.


(4)	We redeemed the remaining 10.875% Capital Securities outstanding on August 31, 2012.