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



	Three Months						Nine Months
	2015			2014			2015			2014
Basic earnings per share:
Net income (loss) attributable to Ocwen common stockholders	$	(66,869	)	$	(76,189	)	$	(22,776	)	$	49,273

Weighted average shares of common stock	125,383,639			130,551,197			125,322,742			133,318,381

Basic earnings (loss) per share	$	(0.53	)	$	(0.58	)	$	(0.18	)	$	0.37

Diluted earnings per share (1):
Net income (loss) attributable to Ocwen common stockholders	$	(66,869	)	$	(76,189	)	$	(22,776	)	$	49,273
Preferred stock dividends (2)	—			—			—			—
Adjusted net income (loss) attributable to Ocwen	$	(66,869	)	$	(76,189	)	$	(22,776	)	$	49,273

Weighted average shares of common stock	125,383,639			130,551,197			125,322,742			133,318,381
Effect of dilutive elements (1):
Preferred stock (2)	—			—			—			—
Stock options	—			—			—			3,558,689
Common stock awards	—			—			—			4,256
Dilutive weighted average shares of common stock	125,383,639			130,551,197			125,322,742			136,881,326

Diluted earnings (loss) per share	$	(0.53	)	$	(0.58	)	$	(0.18	)	$	0.36

Stock options and common stock awards excluded from the computation of diluted earnings per share:
Anti-dilutive (3)	2,037,872			91,250			1,965,049			47,083
Market-based (4)	924,438			295,000			924,438			295,000


(1)	For the three and nine months ended September 30, 2015 and for three months ended September 30, 2014, we have excluded the effect of preferred stock, stock options and common stock awards from the computation of diluted earnings per share because of the anti-dilutive effect of our reported net loss.

(2)

Prior to the conversion of our remaining preferred stock into common stock in July 2014, we computed the effect on diluted earnings per share using the if-converted method. For purposes of computing diluted earnings per share, we assume the conversion of the preferred stock into shares of common stock unless the effect is anti-dilutive. Conversion of the preferred stock was not assumed for the nine months ended September 30, 2014 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.