EX-12.1 2 a20141231ex121.htm EXHIBIT 12.1
EXHIBIT 12.1
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)

| 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010
Earnings: |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income taxes (1) | $ | (443,226 | ) |  | $ | 350,957 |  |  | $ | 257,394 |  |  | $ | 123,741 |  |  | $ | 37,783 |
Add: |  |  |  |  |  |  |  |  |
Interest expensed and capitalized, except interest on deposits and amortization of capitalized debt expenses | 541,757 |  |  | 395,586 |  |  | 223,455 |  |  | 132,770 |  |  | 85,923 |
Interest component of rental expense | 6,283 |  |  | 9,102 |  |  | 4,883 |  |  | 1,854 |  |  | 4,101 |
Total fixed charges (2) | 548,040 |  |  | 404,688 |  |  | 228,338 |  |  | 134,624 |  |  | 90,024 |
Earnings for computation purposes | $ | 104,814 |  |  | $ | 755,645 |  |  | $ | 485,732 |  |  | $ | 258,365 |  |  | $ | 127,807 |
Preferred dividend requirements | $ | 2,802 |  |  | $ | 12,020 |  |  | $ | 145 |  |  | $ | — |  |  | $ | — |
Ratio of pretax income to net income (3) | 0.94 |  |  | 1.14 |  |  | 1.42 |  |  | 1.57 |  |  | 1.17 |
Preferred dividend factor | 2,634 |  |  | 13,703 |  |  | 206 |  |  | — |  |  | — |
Total fixed charges | 548,040 |  |  | 404,688 |  |  | 228,338 |  |  | 134,624 |  |  | 90,024 |
Combined fixed charges and preferred dividends | $ | 550,674 |  |  | $ | 418,391 |  |  | $ | 228,544 |  |  | $ | 134,624 |  |  | $ | 90,024 |
Ratio of earnings to combined fixed charges and preferred dividends (4) | (4) |  | 1.81 |  | 2.13 |  | 1.92 |  | 1.42

(1) | Excludes income or loss from equity investees but includes any distributions received representing a return on capital.

(2) | Fixed charges represent total interest expensed and capitalized, including interest on deposits, amortization of capitalized debt expenses as well as the interest component of rental expense.

(3) | The ratios of earnings to combined fixed charges and preferred dividends were computed by dividing (x) income from continuing operations before income taxes plus fixed charges by (y) combined fixed charges and preferred dividends.

(4) | Due to our losses in 2014, the ratio of earnings to fixed charges was less than 1:1. We would have had to generate additional earnings of $443.2 million to achieve coverage of 1:1.