Borrowings (Tables)

3 Months Ended

Mar. 31, 2015

Match funded liabilities are comprised of the following at the dates indicated:



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)		March 31, 2015			December 31, 2014
Advance Receivable Backed Notes Series 2012-ADV1 (3)	1ML (3) + 175 bps	Jun. 2017	Jun. 2015	$	51,658	$	348,342		$	373,080
Advance Receivable Backed Note (4)	1ML + 300 bps	Dec. 2015	Dec. 2014	—		—			494
Advance Receivables Backed Notes, Series 2013-VF2, Class A	1ML + 167 bps (5)	Oct. 2045	Oct. 2015	68,214		495,786			519,634
Advance Receivables Backed Notes, Series 2013-VF2, Class B	1ML + 300 bps (6)	Oct. 2045	Oct. 2015	4,584		31,416			32,919
Advance Receivables Backed Notes - Series 2014-VF3, Class A	1ML + 175 bps (7)	Oct. 2045	Oct. 2015	72,799		527,201			552,553
Advance Receivables Backed Notes - Series 2014-VF4	1ML + 175 bps (8)	Oct. 2045	Oct. 2015	72,799		527,201			552,553
Advance Receivables Backed Notes, Series 2014-VF1, Class A (9)	Cost of Funds + 275 bps	Dec. 2045	Dec. 2015	54,270		25,673			21,192
Advance Receivables Backed Notes, Series 2014-VF1, Class B (9)	Cost of Funds + 325 bps	Dec. 2045	Dec. 2015	—		16,289			13,598
Advance Receivables Backed Notes, Series 2014-VF1, Class C (9)	Cost of Funds + 375 bps	Dec. 2045	Dec. 2015	—		12,220			10,224
Advance Receivables Backed Notes, Series 2014-VF1, Class D (9)	Cost of Funds + 470 bps	Dec. 2045	Dec. 2015	—		16,548			14,000
				$	324,324	$	2,000,676		$	2,090,247

Weighted average interest rate						1.99		%	1.97		%

(1)

The amortization date of our advance financing facilities is the date on which the revolving period ends under each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In two advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed.


(2)	Borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. At March 31, 2015, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged


(3)	1-Month LIBOR (1ML) was 0.18% and 0.17% at March 31, 2015 and December 31, 2014, respectively.


(4)	We voluntarily terminated this facility on January 15, 2015.


(5)	The interest margin on this note is scheduled to increase to 191 bps on July 15, 2015, to 215 bps on August 15, 2015 and to 239 bps on September 15, 2015.


(6)	The interest margin on this note is scheduled to increase to 343 bps on July 15, 2015, to 386 bps on August 15, 2015 and to 429 bps on September 15, 2015.


(7)	The interest margin on this note is scheduled to increase to 200 bps on July 15, 2015, to 225 bps on August 15, 2015 and to 250 bps on September 15, 2015.


(8)	The interest margin on this note is scheduled to increase to 200 bps on July 15, 2015, to 212 bps on August 15, 2015 and to 250 bps on September 15, 2015.


(9)	Beginning April 23, 2015, the maximum borrowing under this facility will decrease by $6.3 million per month until it is reduced to $75.0 million.

Schedule of Financing Liabilities

Financing liabilities are comprised of the following at the dates indicated:



Borrowings	Collateral	Interest Rate	Maturity	March 31, 2015		December 31, 2014
Servicing:
Financing liability – MSRs pledged	MSRs	(1)	(1)	$	594,495	$	614,441
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (2)	MSRs	(2)	Feb. 2028	107,408		111,459
Financing Liability – Advances Pledged (3)	Advances on loans	(3)	(3)	84,307		88,489
				786,210		814,389

Lending:
HMBS-related borrowings (4)	Loans held for investment (LHFI)	1ML + 245 bps	(4)	1,702,397		1,444,252

				$	2,488,607	$	2,258,641


(1)	This financing liability arose in connection with the HLSS Transaction financing liabilities and has no contractual maturity. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows underlying the related MSRs.

(2)

OASIS noteholders are entitled to receive a monthly payment amount equal to the sum of: (a) the designated servicing fee amount (21 basis points of the UPB of the reference pool of Freddie Mac mortgages); (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. The notes have a final stated maturity of February 2028. We accounted for this transaction as a financing. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the security.


(3)	Certain sales of advances in 2014 did not qualify for sales accounting treatment and were accounted for as a financing.


(4)	Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS. The beneficial interests have no maturity dates, and the borrowings mature as the related loans are repaid.

Schedule of Other Secured Borrowings

Other secured borrowings are comprised of the following at the dates indicated:



Borrowings	Collateral	Interest Rate	Maturity	Available Borrowing Capacity		March 31, 2015		December 31, 2014
Servicing:
SSTL (1)	(1)	1-Month Euro-dollar rate + 375 bps with a Eurodollar floor of 125 bps (1)	Feb. 2018	$	—	$	1,200,174	$	1,277,250
Repurchase agreement (2)	Loans held for sale (LHFS)	1ML + 200 - 345 bps	Jun. 2015	15,747		34,253		32,018
				15,747		1,234,427		1,309,268



Borrowings	Collateral	Interest Rate	Maturity	Available Borrowing Capacity		March 31, 2015			December 31, 2014

Lending:
Master repurchase agreement (3)	LHFS	1ML + 175 bps	Jun. 2015	—		192,222			208,010
Participation agreement (4)	LHFS	N/A	Apr. 2016	—		13,548			41,646
Participation agreement (5)	LHFS	N/A	Apr. 2016	—		38,717			196
Master repurchase agreement (6)	LHFS	1ML + 175 - 275 bps	Jul. 2015	19,508		55,492			102,073
Master repurchase agreement (7)	LHFI	1ML + 275bps	Jul. 2015	—		39,463			52,678
Mortgage warehouse agreement (8)	LHFI	1ML + 275 bps; floor of 350 bps	May 2015	—		33,513			23,851
				19,508		372,955			428,454

				35,255		1,607,382			1,737,722
Discount (1)				—		(3,675		)	(4,031		)
				$	35,255	$	1,603,707		$	1,733,691

Weighted average interest rate						4.37		%	4.33		%


(1)	On March 2, 2015, we entered into an amendment to the SSTL facility agreement. Among other things, the amendment:

•

eliminates the dollar cap on the general asset sale basket and requires Ocwen to use 75% of the net cash proceeds from permitted asset sales under such general asset basket to prepay the loans under the SSTL and, subject to certain conditions, permits Ocwen to use up to 25% of such net cash proceeds to reinvest in assets used in the business of OLS and its subsidiaries within 120 days of receipt thereof (subject to an extension of up to 90 days if a binding agreement is entered into within such 120 days); and


•	increases the quarterly covenant levels of the corporate leverage ratio to 3.5-to-1 for the fiscal quarter ended March 31, 2015 and thereafter.


(2)	Under this repurchase agreement, the lender provides financing on a committed basis for $50.0 million and, at the discretion of the lender, on an uncommitted basis for an additional $50.0 million.


(3)	Under this repurchase agreement, the lender provides financing on a committed basis for $150.0 million and, at the discretion of the lender, on an uncommitted basis for an additional $150.0 million.

(4)

Under this participation agreement, the lender provides financing on an uncommitted basis for $50.0 million at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. On April 16, 2015, the maximum borrowing capacity was increased to $100.0 million.

(5)

Under this participation agreement, the lender provides financing on an uncommitted basis for $150.0 million at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement.


(6)	Under this repurchase agreement, the lender provides financing on a committed basis for $75.0 million and, at the discretion of the lender, on an uncommitted basis for an additional $75.0 million. On April 16, 2015, this facility was terminated.


(7)	On April 16, 2015, the maximum borrowing capacity under this agreement was reduced to $37.5 million all of which is on a committed basis.


(8)	Borrowing capacity of $60.0 million under this facility is available on an uncommitted basis at the discretion of the lender.