The following is a reconciliation of the calculation of basic EPS to diluted EPS for the three and nine months ended September 30:



	Three Months					Nine Months
	2014			2013		2014		2013
Basic EPS:
Net income (loss) attributable to Ocwen common stockholders	$	(76,189	)	$	54,725	$	49,273	$	164,120

Weighted average shares of common stock	130,551,197			135,787,834		133,318,381		135,705,892

Basic EPS	$	(0.58	)	$	0.40	$	0.37	$	1.21

Diluted EPS (1):
Net income (loss) attributable to Ocwen common stockholders	$	(76,189	)	$	54,725	$	49,273	$	164,120
Preferred stock dividends (1) (2)	—			—		—		—
Adjusted net income (loss) attributable to Ocwen	$	(76,189	)	$	54,725	$	49,273	$	164,120

Weighted average shares of common stock	130,551,197			135,787,834		133,318,381		135,705,892
Effect of dilutive elements (1):
Preferred Shares (1) (2)	—			—		—		—
Stock options	—			4,263,965		3,558,689		4,030,297
Common stock awards	—			5,396		4,256		11,301
Dilutive weighted average shares of common stock	130,551,197			140,057,195		136,881,326		139,747,490

Diluted EPS	$	(0.58	)	$	0.39	$	0.36	$	1.17

Stock options excluded from the computation of diluted EPS:
Anti-dilutive (3)	91,250			—		47,083		—
Market-based (4)	295,000			547,500		295,000		547,500


(1)	For the three months ended September 30, 2014, we have excluded the effect of the Preferred Shares, stock options and common stock awards from the computation of diluted EPS because of the anti-dilutive effect of our reported net loss.

(2)

The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. For purposes of computing diluted EPS, we assume the conversion of the Preferred Shares into shares of common stock unless the effect is anti-dilutive. Conversion of the Preferred Shares has not been assumed for the nine months ended September 30, 2014 and the three and nine months ended September 30, 2013 because the effect would have been antidilutive.


(3)	These options were anti-dilutive because their exercise price was greater than the average market price of our stock.


(4)	Shares that are issuable upon the achievement of certain performance criteria related to Ocwen’s stock price and an annualized rate of return to investors.