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.