EX-12.1 2 ex12_1.htm EXHIBIT 12.1

Exhibit 12.1

Ocwen Financial Corporation
Ratio of Earnings to Fixed Charges
(Dollars in thousands)

|  | Fiscal Year Ended December 31, |  |  | Nine Months Ended September 30, |
|  | 2010 |  |  | 2011 |  |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |
Income (loss) from continuing operations before income taxes (1) |  |  | 37,783 |  |  |  | 123,741 |  |  |  | 257,394 |  |  |  | 350,957 |  |  |  | (443,226 | ) |  |  | (589) |
Interest expensed and capitalized |  |  | 85,923 |  |  |  | 132,770 |  |  |  | 223,455 |  |  |  | 395,586 |  |  |  | 541,757 |  |  |  | 362,606 |
Interest component of rental expense |  |  | 4,101 |  |  |  | 1,854 |  |  |  | 4,883 |  |  |  | 9,102 |  |  |  | 6,283 |  |  |  | 5,589 |
Total fixed charges (2) |  |  | 90,024 |  |  |  | 134,624 |  |  |  | 228,338 |  |  |  | 404,688 |  |  |  | 548,040 |  |  |  | 368,195 |
Earnings available to cover fixed charges |  |  | 127,807 |  |  |  | 258,365 |  |  |  | 485,732 |  |  |  | 755,645 |  |  |  | 104,418 |  |  |  | 367,606 |
Preferred dividend requirement |  |  | — |  |  |  | — |  |  |  | 145 |  |  |  | 12,020 |  |  |  | 2,802 |  |  |  | — |
Ratio of pretax income to net income (3) |  |  | 1.17 |  |  |  | 1.57 |  |  |  | 1.42 |  |  |  | 1.14 |  |  |  | 0.94 |  |  |  | 0.03 |
Preferred dividend factor |  |  | — |  |  |  | — |  |  |  | 206 |  |  |  | 13,703 |  |  |  | 2,634 |  |  |  | — |
Total fixed charges |  |  | 90,024 |  |  |  | 134,624 |  |  |  | 228,338 |  |  |  | 404,688 |  |  |  | 548,040 |  |  |  | 368,195 |
Combined fixed charges and preferred dividends |  |  | 90,024 |  |  |  | 134,624 |  |  |  | 228,544 |  |  |  | 418,391 |  |  |  | 550,674 |  |  |  | 368,195 |
Ratio of earnings to combined fixed charges and preferred dividends (4) |  |  | 1.42 |  |  |  | 1.92 |  |  |  | 2.13 |  |  |  | 1.81 |  |  |  | (5 | ) |  |  | (6) |

(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 and excluding interest on deposits, amortization of capitalized debt expenses as well as the interest component of rental expense.

(3) | The ratio of pretax income to net income is determined by dividing income from continuing operations before income taxes by net income from continuing operations.

(4) | 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.

(5) | 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 $445.9 million to achieve coverage of 1:1.

(6) | Due to our loss for the nine months ended September 30, 2015, the ratio of earnings to fixed charges and preferred dividends was less than 1:1. We would have had to generate additional earnings of $0.6 million to achieve coverage of 1:1.