Interest Expense (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2015

Dec. 31, 2014

Other Income and Expenses [Abstract]

Schedule of Components of Interest Expense

The following table presents the components of interest expense for the three and nine months ended September 30:



	Three months				Nine Months
	2015		2014		2015		2014
Financing liabilities (1)(2)(3)	$	73,866	$	88,246	$	222,067	$	281,930
Other secured borrowings	19,822		20,790		68,447		62,359
Match funded liabilities	15,425		15,097		45,379		46,762
6.625% Senior unsecured notes	6,741		6,141		19,521		9,466
Other	2,459		2,775		7,192		8,612
	$	118,313	$	133,049	$	362,606	$	409,129


(1)	Includes interest expense related to financing liabilities recorded in connection with the NRZ/HLSS Transactions as indicated in the table below.



	Three months				Nine Months
	2015		2014		2015		2014
Servicing fees collected on behalf of NRZ	$	175,994	$	177,113	$	531,399	$	553,423
Less: Subservicing fee retained by Ocwen	91,597		83,550		272,802		266,514
Net servicing fees remitted to NRZ	84,397		93,563		258,597		286,909
Less: Reduction in financing liability	21,160		8,736		52,159		12,960
Interest expense on NRZ financing liability	$	63,237	$	84,827	$	206,438	$	273,949


(2)	Includes $8.2 million and $8.5 million for the three and nine months ended September 30, 2015, respectively, of fees incurred in connection with our agreement to compensate NRZ for certain increased costs associated with its servicing advance financing facilities that are the direct result of a downgrade of our S&P servicer rating.


(3)	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues.

The following table presents the components of interest expense for the years ended December 31:



	2014		2013		2012
Match funded liabilities	$	61,576	$	75,979	$	122,292
Financing liabilities (1) (2)	371,852		228,985		54,710
Other secured borrowings	82,837		81,851		41,510
6.625% Senior Unsecured Notes	15,595		—		—
3.25% Convertible Notes (3)	—		—		153
10.875% Capital Securities (4)	—		—		1,894
Other	9,897		8,771		2,896
	$	541,757	$	395,586	$	223,455


(1)	Includes interest expense related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below:



	2014		2013		2012
Servicing fees collected on behalf of HLSS	$	736,122	$	633,377	$	117,789
Less: Servicing fee retained by Ocwen	358,053		317,723		50,162
Net servicing fees remitted to HLSS	378,069		315,654		67,627
Less: Reduction in financing liability	17,374		87,068		12,917
Interest expense on HLSS financing liability	$	360,695	$	228,586	$	54,710

The reduction in financing liability for 2014 does not include $2.0 million in reimbursements to HLSS for the loss of servicing revenues when we were terminated as servicer and the related Rights to MSRs had been sold to HLSS.


(2)	Interest expense that we expect to be paid on the HMBS-related borrowings is included with net fair value gains in Other revenues.


(3)	We redeemed the remaining 3.25% Convertible Notes outstanding on March 28, 2012.


(4)	We redeemed the remaining 10.875% Capital Securities outstanding on August 31, 2012.

Schedule of Interest Expense Related to Financing Liabilities Recorded in Connection with the HLSS Transactions



	Three months				Nine Months
	2015		2014		2015		2014
Servicing fees collected on behalf of NRZ	$	175,994	$	177,113	$	531,399	$	553,423
Less: Subservicing fee retained by Ocwen	91,597		83,550		272,802		266,514
Net servicing fees remitted to NRZ	84,397		93,563		258,597		286,909
Less: Reduction in financing liability	21,160		8,736		52,159		12,960
Interest expense on NRZ financing liability	$	63,237	$	84,827	$	206,438	$	273,949

Includes interest expense related to financing liabilities recorded in connection with the HLSS Transactions as indicated in the table below:



	2014		2013		2012
Servicing fees collected on behalf of HLSS	$	736,122	$	633,377	$	117,789
Less: Servicing fee retained by Ocwen	358,053		317,723		50,162
Net servicing fees remitted to HLSS	378,069		315,654		67,627
Less: Reduction in financing liability	17,374		87,068		12,917
Interest expense on HLSS financing liability	$	360,695	$	228,586	$	54,710