Borrowings (Tables)

12 Months Ended

Dec. 31, 2015

Match funded liabilities are comprised of the following at December 31:



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)		2015		2014
Ocwen Freddie Servicer Advance Receivables Trust Series 2012-ADV1 (3)	1-Month LIBOR (1ML) (4) + 175 bps	Jun. 2017	Jun. 2015	$	—	$	—	$	373,080

Ocwen Servicer Advance Funding (SBC) Note (5)	1ML + 300 bps	Dec. 2015	Dec. 2014	—		—		494

Advance Receivables Backed Notes, Series 2013-VF2, Class A (6)	Cost of Funds + 239 bps	Oct. 2045	Oct. 2015	—		—		519,634
Advance Receivables Backed Notes, Series 2013-VF2, Class B (6)	Cost of Funds + 429 bps	Oct. 2045	Oct. 2015	—		—		32,919
Advance Receivables Backed Notes, Series 2014-VF3, Class A (7)	1ML + 235 bps (7)	Sep. 2046	Sep. 2016	29,034		132,651		552,553
Advance Receivables Backed Notes - Series 2014-VF3, Class B (7)	1ML + 300 bps (7)	Sep. 2046	Sep. 2016	1,294		6,330		—
Advance Receivables Backed Notes - Series 2014-VF3, Class C (7)	1ML + 425 bps (7)	Sep. 2046	Sep. 2016	1,458		6,977		—
Advance Receivables Backed Notes - Series 2014-VF3, Class D (7)	1ML + 575 bps (7)	Sep. 2046	Sep. 2016	3,829		18,427		—



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)	2015	2014
Advance Receivables Backed Notes - Series 2014-VF4, Class A (8)	1ML + 235 bps (8)	Sep. 2046	Sep. 2016	29,034	132,651	552,553
Advance Receivables Backed Notes - Series 2014-VF4, Class B (8)	1ML + 300 bps (8)	Sep. 2046	Sep. 2016	1,294	6,330	—
Advance Receivables Backed Notes - Series 2014-VF4, Class C (8)	1ML + 425 bps (8)	Sep. 2046	Sep. 2016	1,458	6,977	—
Advance Receivables Backed Notes - Series 2014-VF4, Class D (8)	1ML + 575 bps (8)	Sep. 2046	Sep. 2016	3,829	18,427	—
Advance Receivables Backed Notes - Series 2015-VF5, Class A (9)	1ML + 235 bps (9)	Sep. 2046	Sep. 2016	29,033	132,652	—
Advance Receivables Backed Notes - Series 2015-VF5, Class B (9)	1ML + 300 bps (9)	Sep. 2046	Sep. 2016	1,294	6,330	—
Advance Receivables Backed Notes - Series 2015-VF5, Class C (9)	1ML + 425 bps (9)	Sep. 2046	Sep. 2016	1,458	6,977	—
Advance Receivables Backed Notes - Series 2015-VF5, Class D (9)	1ML + 575 bps (9)	Sep. 2046	Sep. 2016	3,829	18,427	—
Advance Receivables Backed Notes - Series 2015-T1, Class A (9)	2.5365%	Sep. 2046	Sep. 2016	—	244,809	—
Advance Receivables Backed Notes - Series 2015-T1, Class B (9)	3.0307%	Sep. 2046	Sep. 2016	—	10,930	—
Advance Receivables Backed Notes - Series 2015-T1, Class C (9)	3.5240%	Sep. 2046	Sep. 2016	—	12,011	—
Advance Receivables Backed Notes - Series 2015-T1, Class D (9)	4.1000%	Sep. 2046	Sep. 2016	—	32,250	—
Advance Receivables Backed Notes - Series 2015-T2, Class A (10)	2.5320%	Nov. 2046	Nov. 2016	—	161,973	—
Advance Receivables Backed Notes - Series 2015-T2, Class B (10)	3.3720%	Nov. 2046	Nov. 2016	—	7,098	—
Advance Receivables Backed Notes - Series 2015-T2, Class C (10)	3.7660%	Nov. 2046	Nov. 2016	—	8,113	—
Advance Receivables Backed Notes - Series 2015-T2, Class D (10)	4.2580%	Nov. 2046	Nov. 2016	—	22,816	—
Advance Receivables Backed Notes - Series 2015-T3, Class A (10)	3.2110%	Nov. 2047	Nov. 2017	—	310,195	—
Advance Receivables Backed Notes - Series 2015-T3, Class B (10)	3.7040%	Nov. 2047	Nov. 2017	—	17,695	—



Borrowing Type	Interest Rate	Maturity (1)	Amortization Date (1)	Available Borrowing Capacity (2)		2015			2014
Advance Receivables Backed Notes - Series 2015-T3, Class C (10)	4.1960%	Nov. 2047	Nov. 2017	—		19,262			—
Advance Receivables Backed Notes - Series 2015-T3, Class D (10)	4.6870%	Nov. 2047	Nov. 2017	—		52,848			—
Total Ocwen Master Advance Receivables Trust (OMART)				106,844		1,393,156			1,657,659

Advance Receivables Backed Notes, Series 2014-VF1, Class A (11)	Cost of Funds + 265 bps	Dec. 2046	Dec. 2016	14,350		31,343			21,192
Advance Receivables Backed Notes, Series 2014-VF1, Class B (11)	Cost of Funds + 425 bps	Dec. 2046	Dec. 2016	1,902		4,157			13,598
Advance Receivables Backed Notes, Series 2014-VF1, Class C (11)	Cost of Funds + 465 bps	Dec. 2046	Dec. 2016	2,096		4,564			10,224
Advance Receivables Backed Notes, Series 2014-VF1, Class D (11)	Cost of Funds + 515 bps	Dec. 2046	Dec. 2016	5,237		11,351			14,000
Total Ocwen Servicer Advance Receivables Trust III (OSARTIII)				23,585		51,415			59,014

Advance Receivables Backed Notes, Series 2015-VF1, Class A	1ML + 212.5 bps	Jun. 2046	Jun. 2016	8,584		112,882			—
Advance Receivables Backed Notes, Series 2015-VF1, Class B	1ML + 300 bps	Jun. 2046	Jun. 2016	599		12,268			—
Advance Receivables Backed Notes, Series 2015-VF1, Class C	1ML + 350 bps	Jun. 2046	Jun. 2016	649		5,951			—
Advance Receivables Backed Notes, Series 2015-VF1, Class D	1ML + 425 bps	Jun. 2046	Jun. 2016	690		8,377			—
Total Ocwen Freddie Advance Funding (OFAF) (12)				10,522		139,478			—
				$	140,951	$	1,584,049		$	2,090,247

Weighted average interest rate						3.15		%	1.97		%

(1)

The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed.


(2)	Borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. At December 31, 2015, $24.5 million of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.


(3)	We repaid this facility in full in June 2015 from the proceeds of the OFAF facility.


(4)	1-Month LIBOR was 0.43% and 0.17% at December 31, 2015 and 2014, respectively.


(5)	We voluntarily terminated this advance facility on January 30, 2015.


(6)	The OMART Series 2013-VF2 Notes were repaid in full on September 18, 2015.

(7)

On September 18, 2015, the Series 2014-VF3 Notes, Class B, C and D Notes, a series of variable funding notes under our OMART facility, were issued, and the existing Class A Note was canceled and a new Class A Note was issued. During 2015, we negotiated a series of reductions in the combined maximum borrowing capacity of the Series 2014-VF3 Notes from $600.0 million at December 31, 2014 to $200.0 million at December 31, 2015. There is a ceiling of 75 bps for 1 ML in determining the interest rate for these variable rate Notes.

(8)

Effective July 1, 2015, the single outstanding Series 2014-VF4 Note under our OMART facility was replaced by four Notes - Class A, B, C and D. During 2015, we negotiated a series of reductions in the combined maximum borrowing capacity of the Series 2014-VF4 Notes from $600.0 million at December 31, 2014 to $200.0 million at December 31, 2015. There is a ceiling of 75 bps for 1 ML in determining the interest rate for variable rate Notes.

(9)

The Series 2015-VF5 Notes and the Series 2015-T1 Notes under our OMART facility were issued on September 18, 2015. Under the terms of the agreement, we must continue to borrow the full amount of the Series 2015-T1 Notes until the amortization date. If there is insufficient collateral to support the level of borrowing, the excess cash proceeds are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the term notes. We negotiated a series of reductions in the combined maximum borrowing capacity of the Series 2015-VF5 Notes from $450.0 million at September 18, 2015 to $200.0 million at December 31, 2015. There is a ceiling of 75 bps for 1 ML in determining the interest for variable rate Notes.

(10)

On November 13, 2015, we issued the Series 2015-T2 and Series 2015 T-3 Notes under our OMART facility. Under the terms of the agreement, we must continue to borrow the full amount of the Series 2015-T2 and T-3 Notes until the amortization date. If there is insufficient collateral to support the level of borrowing, the excess cash proceeds are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the term notes.


(11)	Beginning April 23, 2015, the maximum borrowing under the OSART III facility decreased by $6.3 million per month until it reduced to $75.0 million. On December 21, 2015, we renewed this facility for an additional year and maintained the maximum borrowing capacity.

(12)

We entered into OFAF facility on June 10, 2015, and issued the Series 2015-T1 and Series 2015-T2 Term Notes on June 26, 2015. The Series 2015-T2 Notes with a combined borrowing capacity of $155.0 million were fully repaid on September 15, 2015, and the Series 2015-T1 Notes with a combined borrowing capacity of $70.0 million were fully repaid on November 16, 2015. On November 20, 2015, the combined borrowing capacity of the Series 2015-VF1 Notes issued under this facility was reduced to $150.0 million.

Schedule of Financing Liabilities

Financing liabilities are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	2015		2014
Servicing:
Financing liability – MSRs pledged	MSRs	(1)	(1)	$	541,704	$	614,441
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (2)	MSRs	(2)	Feb. 2028	96,546		111,459
Financing liability – Advances pledged (3)	Advances on loans	(3)	(3)	59,643		88,489
				697,893		814,389

Lending:
HMBS-related borrowings (4)	Loans held for investment	1ML + 248 bps	(4)	2,391,362		1,444,252

				$	3,089,255	$	2,258,641


(1)	This financing liability arose in connection with the NRZ/HLSS Transactions and has no contractual maturity. The balance of the liability is adjusted each reporting period to its fair value based on the present value of the estimated future cash flows underlying the related MSRs.

(2)

OASIS noteholders are entitled to receive a monthly payment amount equal to the sum of: (a) the designated servicing fee amount (21 basis points of the UPB of the reference pool of Freddie Mac mortgages); (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. The notes have a final stated maturity of February 2028. We accounted for this transaction as a financing. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the security.


(3)	Certain sales of advances in 2014 did not qualify for sales accounting treatment and were accounted for as a financing.


(4)	Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS. The beneficial interests have no maturity dates, and the borrowings mature as the related loans are repaid.

Schedule of Other Secured Borrowings

Other secured borrowings are comprised of the following at December 31:



Borrowings	Collateral	Interest Rate	Maturity	Available Committed Borrowing Capacity		2015		2014
Servicing:
SSTL (1)	(1)	1-Month Euro-dollar rate + 425 bps with a Eurodollar floor of 125 bps	Feb. 2018	$	—	$	398,454	$	1,277,250
Repurchase agreement (2)	Loans held for sale (LHFS)	1ML + 200 - 345 bps	Sep. 2016	7,027		42,973		32,018
				7,027		441,427		1,309,268



Borrowings	Collateral	Interest Rate	Maturity	Available Committed Borrowing Capacity		2015			2014
Lending:
Master repurchase agreement (3)	LHFS	1ML + 200 bps	Aug. 2016	43,774		156,226			208,010
Participation agreement (4)	LHFS	N/A	Apr. 2016	—		49,897			41,646
Participation agreement (5)	LHFS	N/A	Apr. 2016	—		73,049			196
Master repurchase agreement (6)	LHFS	1ML + 175 - 275 bps	Jul. 2015	—		—			102,073
Master repurchase agreement (7)	LHFS	1ML + 275bps	Jul. 2015	—		—			52,678
Mortgage warehouse agreement (8)	LHFS	1ML + 275 bps; floor of 350 bps	May 2016	—		63,175			23,851
				43,774		342,347			428,454

				50,801		783,774			1,737,722
Discount (1)				—		(1,351		)	(4,031		)
				$	50,801	$	782,423		$	1,733,691

Weighted average interest rate						4.38		%	4.33		%

(1)

On February 15, 2013, we entered into a new SSTL facility agreement and borrowed $1.3 billion that was used principally to fund the ResCap Acquisition and repay the balance of the previous SSTL. The loan was issued with an original issue discount of $6.5 million that we are amortizing over the term of the loan. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $3.3 million. The borrowings are secured by a first priority security interest in substantially all of the assets of Ocwen. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate in effect on such day, (ii) the federal funds rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 3.25% and a base rate floor of 2.25% or (b) the one month Eurodollar rate, plus a margin of 4.25% and a one month Eurodollar floor of 1.25%. To date we have elected option (b) to determine the interest rate.

On October 16, 2015, OLS, as borrower, Ocwen and certain subsidiaries of Ocwen, as guarantors, entered into Amendment No. 4 to the Senior Secured Term Loan Facility Agreement and Amendment No. 2 to the Pledge and Security Agreement (the Amendment) with the lenders party thereto and Barclays Bank PLC, as administrative agent and collateral agent, pursuant to which certain amendments were made to (i) the SSTL and (ii) the related Pledge and Security Agreement. Effective as of October 20, 2015, the Amendment, among other things:


•	waived, until the fiscal quarter ending June 30, 2017, the interest coverage ratio and corporate leverage ratio financial covenants;


•	established a process for designating foreign subsidiaries as subsidiary guarantors under the SSTL;


•	increased our capacity to make certain permitted investments under the investment covenant;


•	expanded our ability to exclude certain assets from the collateral securing the SSTL, to the extent necessary to meet regulatory minimum net worth requirements;


•	increased the applicable interest rate margin by 0.50%;


•	required that we use 100% of the net cash proceeds from future asset sales permitted under the general asset sale basket to prepay the loans under the SSTL;


•	provided for a fee, payable to the lenders on March 31, 2017, equal to 3.0% of the aggregate amount of SSTL loans outstanding as of such date; and


•	made certain conforming modifications as well as adjustments to definitions.

(2)

On September 20, 2015, this repurchase agreement was renewed through September 29, 2016. On November 20, 2015, the maximum borrowing under this facility was limited to the lesser of $100.0 million or $550.0 million less the lender’s current lending to Ocwen under advance funding facilities. Fifty percent of the maximum borrowing is available on a committed basis and fifty percent is available at the discretion of the lender.


(3)	On August 25, 2015, this repurchase agreement was renewed through August 23, 2016. Under this repurchase agreement, the lender provides financing on a committed basis for $200.0 million.

(4)

Under this participation agreement, the lender provides financing for $100.0 million at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. On March 10, 2015, the maturity date of this agreement was extended to April 30, 2016, and the maximum borrowing was reduced to $50.0 million. On April 16, 2015, the maximum borrowing capacity was increased to $100.0 million.

(5)

Under this participation agreement, the lender provides financing for $150.0 million at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. On March 10, 2015, the maturity date of this agreement was extended to April 30, 2016.


(6)	On April 16, 2015, this facility was voluntarily terminated.


(7)	This facility was voluntarily terminated on its maturity date.


(8)	Borrowing capacity of $100.0 million under this facility is available at the discretion of the lender. This facility was renewed on August 24, 2015.

Schedule of Redemption Prices

The redemption prices during the twelve-month periods beginning on May 15^th of each year are as follows:



Year		Redemption Price
2016		104.969%
2017		103.313%
2018 and thereafter		100.000%

Schedule of Aggregate Long-term Borrowings

Aggregate long-term borrowings by maturity date at December 31, 2015 are as follows:



	Expected Maturity Date (1) (2)
	2016		2017		2018		2019		2020		There- after		Total Balance		Fair Value
Match funded liabilities	$	1,184,049	$	400,000	$	—	$	—	$	—	$	—	$	1,584,049	$	1,581,786
Other secured borrowings	397,660		12,361		372,402		—		—		—		782,423		783,276
Senior unsecured notes	—		—		—		350,000		—		—		350,000		318,063
	$	1,581,709	$	412,361	$	372,402	$	350,000	$	—	$	—	$	2,716,472	$	2,683,125


(1)	For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.

(2)

Excludes financing liabilities, which we recognized in connection with asset sales transactions that we accounted for as financings. Financing liabilities include $541.7 million recorded in connection with sales of MSRs and Rights to MSRs and $2.4 billion recorded in connection with the securitizations of HMBS. The MSR-related financing liabilities have no contractual maturity and are amortized over the life of the transferred Rights to MSRs. The HMBS-related financing liabilities have no contractual maturity and are amortized as the related loans are repaid.