XML 30 R46.htm IDEA: XBRL DOCUMENT v3.3.0.814

Fair Value (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2015

Dec. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Assets and Liabilities

The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not carried, at fair value are as follows at the dates indicated:

			September 30, 2015								December 31, 2014
	Level		Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets:
Loans held for sale:
Loans held for sale, at fair value (a)	2		$	235,909			$	235,909			$	401,120			$	401,120
Loans held for sale, at lower of cost or fair value (b)	3		291,063				291,063				87,492				87,492
Total Loans held for sale			$	526,972			$	526,972			$	488,612			$	488,612
Loans held for investment - Reverse mortgages, at fair value (a)	3		$	2,319,515			$	2,319,515			$	1,550,141			$	1,550,141
Advances and match funded advances (c)	3		2,472,996				2,472,996				3,303,356				3,303,356
Receivables, net (c)	3		361,572				361,572				270,596				270,596
Mortgage-backed securities, at fair value (a)	3		8,541				8,541				7,335				7,335
Financial liabilities:
Match funded liabilities (c)	3		$	1,589,846			$	1,589,901			$	2,090,247			$	2,090,247
Financing liabilities:
HMBS-related borrowings, at fair value (a)	3		$	2,229,604			$	2,229,604			$	1,444,252			$	1,444,252
Financing liability - MSRs pledged (a)	3		560,059				560,059				614,441				614,441
Other (c)	3		163,855				144,725				199,948				189,648
Total Financing liabilities			$	2,953,518			$	2,934,388			$	2,258,641			$	2,248,341
Other secured borrowings:
Senior secured term loan (c)	2		$	702,918			$	702,397			$	1,273,219			$	1,198,227
Other (c)	3		298,152				298,152				460,472				460,472
Total Other secured borrowings			$	1,001,070			$	1,000,549			$	1,733,691			$	1,658,699
Senior unsecured notes (c)	2		$	350,000			$	321,563			$	350,000			$	321,563
Derivative financial instruments assets (liabilities) (a):
Interest Rate Lock Commitments (IRLCs)	2		$	10,010			$	10,010			$	6,065			$	6,065
Forward MBS trades	1		(3,438		)		(3,438		)		(2,854		)		(2,854		)
Interest rate caps	3		1,501				1,501				567				567
MSRs:
MSRs, at fair value (a)	3		$	787,344			$	787,344			$	93,901			$	93,901
MSRs, at amortized cost (c) (d)	3		365,951				404,533				1,820,091				2,237,703
Total MSRs			$	1,153,295			$	1,191,877			$	1,913,992			$	2,331,604

(a) Measured at fair value on a recurring basis.

(b) Measured at fair value on a non-recurring basis.

(c) Disclosed, but not carried, at fair value. 

(d) The balance at September 30, 2015 includes our impaired government-insured stratum of amortization method MSRs, which is measured at fair value on a non-recurring basis. The carrying value of this stratum at September 30, 2015 was $144.2 million, net of a valuation allowance of $25.1 million.

The carrying amounts and the estimated fair values of financial instruments and certain nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not carried, at fair value are as follows at December 31:

			2014								2013
	Level		Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets:
Loans held for sale:
Loans held for sale, at fair value (a)	2		$	401,120			$	401,120			$	503,753			$	503,753
Loans held for sale, at lower of cost or fair value (b)	3		87,492				87,492				62,907				62,907
Total Loans held for sale			$	488,612			$	488,612			$	566,660			$	566,660
Loans held for investment - Reverse mortgages, at fair value (a)	3		$	1,550,141			$	1,550,141			$	618,018			$	618,018
Advances and match funded advances (c)	3		3,303,356				3,303,356				3,443,215				3,443,215
Receivables, net (c)	3		270,596				270,596				152,516				152,516
Mortgage-backed securities, at fair value (a)	3		7,335				7,335				—				—
Financial liabilities:
Match funded liabilities (c)	3		$	2,090,247			$	2,090,247			$	2,364,814			$	2,364,814
Financing liabilities:
HMBS-related borrowings, at fair value (a)	3		$	1,444,252			$	1,444,252			$	615,576			$	615,576
Financing liability - MSRs pledged (a)	3		614,441				614,441				633,804				633,804
Other (c)	3		199,948				189,648				17,593				17,593
Total Financing liabilities			$	2,258,641			$	2,248,341			$	1,266,973			$	1,266,973
Other secured borrowings:
Senior secured term loan (c)	2		$	1,273,219			$	1,198,227			$	1,284,901			$	1,270,108
Other (c)	3		460,472				460,472				492,768				492,768
Total Other secured borrowings			$	1,733,691			$	1,658,699			$	1,777,669			$	1,762,876
Senior unsecured notes (c)	2		$	350,000			$	321,563			$	—			$	—
Derivative financial instruments assets (liabilities) (a):
Interest Rate Lock Commitments (IRLCs)	2		$	6,065			$	6,065			$	8,433			$	8,433
Forward mortgage-backed securities (MBS) trades	1		(2,854		)		(2,854		)		6,905				6,905
Interest rate caps	3		567				567				442				442
MSRs:
MSRs, at fair value (a)	3		$	93,901			$	93,901			$	116,029			$	116,029
MSRs, at amortized cost (c)	3		1,820,091				2,237,703				1,953,352				2,441,719
Total MSRs			$	1,913,992			$	2,331,604			$	2,069,381			$	2,557,748

(a) Measured at fair value on a recurring basis.

(b) Measured at fair value on a non-recurring basis.

(c) Disclosed, but not carried, at fair value.

Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities

The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis for the three and nine months ended September 30, 2015 and 2014.

	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Mortgage-Backed Securities				Financing Liability - MSRs Pledged				Derivatives				MSRs				Total
Three months ended September 30, 2015
Beginning balance	$	2,097,192			$	(1,987,998	)		$	8,157			$	(581,219	)		$	155			$	814,450			$	350,737
Purchases, issuances, sales and settlements:
Purchases	—				—				—				—				2,084				—				2,084
Issuances	250,600				(271,068		)		—				—				—				—				(20,468		)
Sales	—				—				—				—				—				(2,329		)		(2,329		)
Settlements	(41,582		)		43,725				—				21,160				—				—				23,303
	209,018				(227,343		)		—				21,160				2,084				(2,329		)		2,590
Total realized and unrealized gains and (losses):
Included in earnings	13,305				(14,263		)		384				—				(738		)		(24,777		)		(26,089		)
Included in Other comprehensive income	—				—				—				—				—				—				—
	13,305				(14,263		)		384				—				(738		)		(24,777		)		(26,089		)
Transfers in and / or out of Level 3	—				—				—				—				—				—				—
Ending balance	$	2,319,515			$	(2,229,604	)		$	8,541			$	(560,059	)		$	1,501			$	787,344			$	327,238

	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Mortgage-Backed Securities				Financing Liability - MSRs Pledged				Derivatives				MSRs				Total
Three months ended September 30, 2014
Beginning balance	$	1,107,626			$	(1,033,712	)		$	7,502			$	(629,579	)		$	97			$	104,220			$	(443,846	)
Purchases, issuances, sales and settlements:
Purchases	—				—				—				—				—				—				—
Issuances	208,566				(190,452		)		—				—				—				—				18,114
Sales	—				—				—				—								—				—
Settlements	(27,592		)		12,690				—				10,724				—				(934		)		(5,112		)
	180,974				(177,762		)		—				10,724				—				(934		)		13,002
Total realized and unrealized gains and (losses):
Included in earnings	26,724				(24,620		)		(124		)		—				(6		)		(1,338		)		636
Included in Other comprehensive income	—				—				—				—				—				—				—
	26,724				(24,620		)		(124		)		—				(6		)		(1,338		)		636
Transfers in and / or out of Level 3	—				—				—				—				—				—				—
Ending balance	$	1,315,324			$	(1,236,094	)		$	7,378			$	(618,855	)		$	91			$	101,948			$	(430,208	)

	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Mortgage-backed Securities				Financing Liability - MSRs Pledged				Derivatives				MSRs				Total
Nine months ended September 30, 2015
Beginning balance	$	1,550,141			$	(1,444,252	)		$	7,335			$	(614,441	)		$	567			$	93,901			$	(406,749	)
Purchases, issuances, sales and settlements:
Purchases	—				—				—				—				2,201				—				2,201
Issuances	781,002				(803,924		)		—				—				—				(1,139		)		(24,061		)
Transfer from MSRs carried at amortized cost	—				—				—				—				—				839,157				839,157
Sales	—				—				—				—				—				(71,318		)		(71,318		)
Settlements (1)	(105,505		)		107,522				—				54,382				346				—				56,745
	675,497				(696,402		)		—				54,382				2,547				766,700				802,724
Total realized and unrealized gains and (losses): (2)
Included in earnings	93,877				(88,950		)		1,206				—				(1,613		)		(73,257		)		(68,737		)
Included in Other comprehensive income (loss)	—				—				—				—				—				—				—
	93,877				(88,950		)		1,206				—				(1,613		)		(73,257		)		(68,737		)
Transfers in and / or out of Level 3	—				—				—				—				—				—				—
Ending Balance	$	2,319,515			$	(2,229,604	)		$	8,541			$	(560,059	)		$	1,501			$	787,344			$	327,238

	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Mortgage-backed Securities				Financing Liability - MSRs Pledged				Derivatives				MSRs				Total
Nine months ended September 30, 2014
Beginning balance	$	618,018			$	(615,576	)		$	—			$	(633,804	)		$	442			$	116,029			$	(514,891	)
Purchases, issuances, sales and settlements:
Purchases	—				—				7,677				—				23				—				7,700
Issuances	565,670				(572,031		)		—				—				—				—				(6,361		)
Transfer from loans held for sale, at fair value	110,874				—				—				—				—				—				110,874
Sales	—				—				—				—				—				—				—
Settlements	(56,193		)		25,725				—				14,949				—				(934		)		(16,453		)
	620,351				(546,306		)		7,677				14,949				23				(934		)		95,760
Total realized and unrealized gains and (losses):
Included in earnings	76,955				(74,212		)		(299		)		—				(374		)		(13,147		)		(11,077		)
Included in Other comprehensive income (loss)	—				—				—				—				—				—				—
	76,955				(74,212		)		(299		)		—				(374		)		(13,147		)		(11,077		)
Transfers in and / or out of Level 3	—				—				—				—				—				—				—
Ending balance	$	1,315,324			$	(1,236,094	)		$	7,378			$	(618,855	)		$	91			$	101,948			$	(430,208	)

(1) In the event of a transfer to another party of servicing related to Rights to MSRs, we are required to reimburse New Residential Investment Corp. (NRZ) at predetermined contractual rates for the loss of servicing revenues. Settlements for Financing liability - MSRs pledged for the nine months ended September 30, 2015 includes $2.2 million of such reimbursements.

(2) Total losses attributable to derivative financial instruments still held at September 30, 2015 were $1.3 million for the nine months ended September 30, 2015.

The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis:

Year Ended December 31, 2014	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Mortgage-Backed Securities				Financing Liability - MSRs Pledged				Derivatives				MSRs				Total
Beginning balance	$	618,018			$	(615,576	)		$	—			$	(633,804	)		$	442			$	116,029			$	(514,891	)
Purchases, issuances, sales and settlements:
Purchases	—				—				7,677				—				787				—				8,464
Issuances	816,881				(783,009		)		—				—				—				—				33,872
Transfer from Loans held for sale, at fair value	110,874				—				—				—				—								110,874
Sales	—				—				—				—				—				—				—
Settlements (1)	(99,923		)		47,077				—				19,363				—				—				(33,483		)
	827,832				(735,932		)		7,677				19,363				787				—				119,727
Total realized and unrealized gains and (losses) (2):
Included in earnings	104,291				(92,744		)		(342		)		—				(662		)		(22,128		)		(11,585		)
Included in Other comprehensive income	—				—				—				—				—				—				—
	104,291				(92,744		)		(342		)		—				(662		)		(22,128		)		(11,585		)
Transfers in and / or out of Level 3	—				—				—				—				—				—				—
Ending balance	$	1,550,141			$	(1,444,252	)		$	7,335			$	(614,441	)		$	567			$	93,901			$	(406,749	)

Year Ended December 31, 2013	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Financing Liability - MSRs Pledged				Derivatives, net				MSRs				Total
Beginning balance	$	—			$	—			$	(303,705	)		$	(10,668	)		$	85,213			$	(229,160	)
Purchases, issuances, sales and settlements:
Purchases	10,251				(10,179		)		—				498				—				570
Issuances	609,555				(604,991		)		(417,167		)		—				—				(412,603		)
Sales	—				—				—				24,156				—				24,156
Settlements	(5,886		)		5,440				87,068				(1,241		)		—				85,381
	613,920				(609,730		)		(330,099		)		23,413				—				(302,496		)
Total realized and unrealized gains and (losses):
Included in earnings	4,098				(5,846		)		—				60				30,816				29,128
Included in Other comprehensive income	—				—				—				(12,363		)		—				(12,363		)
	4,098				(5,846		)		—				(12,303		)		30,816				16,765
Transfers in and / or out of Level 3	—				—				—				—				—				—
Ending balance	$	618,018			$	(615,576	)		$	(633,804	)		$	442			$	116,029			$	(514,891	)

Year Ended December 31, 2012	Loans Held for Investment - Reverse Mortgages				HMBS-Related Borrowings				Financing Liability - MSRs Pledged				Derivatives, net				MSRs				Total
Beginning balance	$	—			$	—			$	—			$	(16,676	)		$	—			$	(16,676	)
Purchases, issuances, sales and settlements:
Purchases	—				—				—				4,946				85,183				90,129
Issuances	—				—				(316,607		)		—				—				(316,607		)
Sales	—				—				—				(405		)		—				(405		)
Settlements	—				—				12,902				2,451				—				15,353
	—				—				(303,705		)		6,992				85,183				(211,530		)
Total realized and unrealized gains and (losses) (2):
Included in earnings	—				—				—				7,331				30				7,361
Included in Other comprehensive income	—				—				—				(8,315		)		—				(8,315		)
	—				—				—				(984		)		30				(954		)
Transfers in and / or out of Level 3	—				—				—				—				—				—
Ending balance	$	—			$	—			$	(303,705	)		$	(10,668	)		$	85,213			$	(229,160	)

(1) In the event of a transfer of servicing to another party related to Rights to MSRs, we are required to reimburse the owner of the Rights to MSRs at predetermined contractual rates for the loss of servicing revenues. Settlements for Financing liability - MSRs pledged for the year ended December 31, 2014 include $2.0 million of such reimbursements.

(2) Total losses attributable to derivative financial instruments still held at December 31, 2014 and 2012 were $0.7 million and $1.2 million, respectively.

Mortgage Servicing Rights - Amortized Costs [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

The more significant assumptions used in the September 30, 2015 valuation include:

Weighted average prepayment speed		12.67		%
Weighted average delinquency rate		14.39		%
Advance financing cost		5-year swap
Interest rate for computing float earnings		5-year swap
Weighted average discount rate		9.30		%
Weighted average cost to service (in dollars)		$	98

Fair Value Mortgage Servicing Rights [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

The primary assumptions used in the September 30, 2015 valuation include:

		Agency				Non Agency
Weighted average prepayment speed		10.80		%		16.48		%
Weighted average delinquency rate		1.10		%		29.80		%
Advance financing cost		5-year swap				1ML plus 3.5%
Interest rate for computing float earnings		5-year swap				1ML
Weighted average discount rate		9.00		%		14.94		%
Weighted average cost to service (in dollars)		$	70			$	336

Mortgage Servicing Rights Pledged [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

The more significant assumptions used in determination of the price of the underlying MSRs at September 30, 2015 include:

Weighted average prepayment speed		16.98		%
Weighted average delinquency rate		30.75		%
Advance financing cost		1 ML plus 3.5%
Interest rate for computing float earnings		1ML
Weighted average discount rate		14.77		%
Weighted average cost to service (in dollars)		$	341

X

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

No definition available.

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisLineItems
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (bbb)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisValuationTechniquesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (c)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 3



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 12



-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258



Reference 3: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 11



-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611



Reference 4: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 45



-Paragraph 2



-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610



Reference 5: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 30



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612



Reference 6: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 10



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_MortgageServicingRightsAmortizedCostsMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_FairValueMortgageServicingRightsMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_MortgageServicingRightsPledgedMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: