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Borrowings (Tables) | 3 Months Ended
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Mar. 31, 2016
Debt Disclosure [Abstract] |
Schedule of Match Funded Liabilities | Match funded liabilities are comprised of the following at the dates indicated:
Borrowing Type |  | Interest Rate |  | Maturity (1) |  | Amortization Date (1) |  | Available Borrowing Capacity (2) |  | March 31, 2016 |  | December 31, 2015
Advance Receivables Backed Notes - Series 2014-VF3, Class A |  | 1-Month LIBOR (1ML)(3) + 235 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | $ | 47,741 |  |  | $ | 113,944 |  |  | $ | 132,651 |
Advance Receivables Backed Notes - Series 2014-VF3, Class B |  | 1ML + 300 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,172 |  |  | 5,452 |  |  | 6,330 |
Advance Receivables Backed Notes - Series 2014-VF3, Class C |  | 1ML + 425 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,426 |  |  | 6,009 |  |  | 6,977 |
Borrowing Type |  | Interest Rate |  | Maturity (1) |  | Amortization Date (1) |  | Available Borrowing Capacity (2) |  | March 31, 2016 |  | December 31, 2015
Advance Receivables Backed Notes - Series 2014-VF3, Class D |  | 1ML + 575 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 6,404 |  |  | 15,852 |  |  | 18,427 |
Advance Receivables Backed Notes - Series 2014-VF4, Class A |  | 1ML + 235 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 47,741 |  |  | 113,944 |  |  | 132,651 |
Advance Receivables Backed Notes - Series 2014-VF4, Class B |  | 1ML + 300 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,172 |  |  | 5,452 |  |  | 6,330 |
Advance Receivables Backed Notes - Series 2014-VF4, Class C |  | 1ML + 425 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,426 |  |  | 6,009 |  |  | 6,977 |
Advance Receivables Backed Notes - Series 2014-VF4, Class D |  | 1ML + 575 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 6,404 |  |  | 15,852 |  |  | 18,427 |
Advance Receivables Backed Notes - Series 2015-VF5, Class A |  | 1ML + 235 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 47,742 |  |  | 113,943 |  |  | 132,652 |
Advance Receivables Backed Notes - Series 2015-VF5, Class B |  | 1ML + 300 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,172 |  |  | 5,452 |  |  | 6,330 |
Advance Receivables Backed Notes - Series 2015-VF5, Class C |  | 1ML + 425 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 2,426 |  |  | 6,009 |  |  | 6,977 |
Advance Receivables Backed Notes - Series 2015-VF5, Class D |  | 1ML + 575 bps (4) |  | Sep. 2046 |  | Sep. 2016 |  | 6,404 |  |  | 15,852 |  |  | 18,427 |
Advance Receivables Backed Notes - Series 2015-T1, Class A (5) |  | 2.5365% |  | Sep. 2046 |  | Sep. 2016 |  | — |  |  | 244,809 |  |  | 244,809 |
Advance Receivables Backed Notes - Series 2015-T1, Class B (5) |  | 3.0307% |  | Sep. 2046 |  | Sep. 2016 |  | — |  |  | 10,930 |  |  | 10,930 |
Advance Receivables Backed Notes - Series 2015-T1, Class C (5) |  | 3.5240% |  | Sep. 2046 |  | Sep. 2016 |  | — |  |  | 12,011 |  |  | 12,011 |
Advance Receivables Backed Notes - Series 2015-T1, Class D (5) |  | 4.1000% |  | Sep. 2046 |  | Sep. 2016 |  | — |  |  | 32,250 |  |  | 32,250 |
Advance Receivables Backed Notes - Series 2015-T2, Class A (5) |  | 2.5320% |  | Nov. 2046 |  | Nov. 2016 |  | — |  |  | 161,973 |  |  | 161,973 |
Advance Receivables Backed Notes - Series 2015-T2, Class B (5) |  | 3.3720% |  | Nov. 2046 |  | Nov. 2016 |  | — |  |  | 7,098 |  |  | 7,098 |
Advance Receivables Backed Notes - Series 2015-T2, Class C (5) |  | 3.7660% |  | Nov. 2046 |  | Nov. 2016 |  | — |  |  | 8,113 |  |  | 8,113 |
Advance Receivables Backed Notes - Series 2015-T2, Class D (5) |  | 4.2580% |  | Nov. 2046 |  | Nov. 2016 |  | — |  |  | 22,816 |  |  | 22,816 |
Advance Receivables Backed Notes - Series 2015-T3, Class A (5) |  | 3.2110% |  | Nov. 2047 |  | Nov. 2017 |  | — |  |  | 310,195 |  |  | 310,195 |
Borrowing Type |  | Interest Rate |  | Maturity (1) |  | Amortization Date (1) |  | Available Borrowing Capacity (2) |  | March 31, 2016 |  | December 31, 2015
Advance Receivables Backed Notes - Series 2015-T3, Class B (5) |  | 3.7040% |  | Nov. 2047 |  | Nov. 2017 |  | — |  |  | 17,695 |  |  | 17,695 |
Advance Receivables Backed Notes - Series 2015-T3, Class C (5) |  | 4.1960% |  | Nov. 2047 |  | Nov. 2017 |  | — |  |  | 19,262 |  |  | 19,262 |
Advance Receivables Backed Notes - Series 2015-T3, Class D (5) |  | 4.6870% |  | Nov. 2047 |  | Nov. 2017 |  | — |  |  | 52,848 |  |  | 52,848 |
Total Ocwen Master Advance Receivables Trust (OMART) |  |  |  |  |  |  |  | 176,230 |  |  | 1,323,770 |  |  | 1,393,156 |
Advance Receivables Backed Notes, Series 2014-VF1, Class A |  | Cost of Funds + 270 bps |  | Dec. 2046 |  | Dec. 2016 |  | — |  |  | 58,221 |  |  | 31,343 |
Advance Receivables Backed Notes, Series 2014-VF1, Class B |  | Cost of Funds + 425 bps |  | Dec. 2046 |  | Dec. 2016 |  | — |  |  | 6,044 |  |  | 4,157 |
Advance Receivables Backed Notes, Series 2014-VF1, Class C |  | Cost of Funds + 470 bps |  | Dec. 2046 |  | Dec. 2016 |  | — |  |  | 6,783 |  |  | 4,564 |
Advance Receivables Backed Notes, Series 2014-VF1, Class D |  | Cost of Funds + 520 bps |  | Dec. 2046 |  | Dec. 2016 |  | — |  |  | 18,952 |  |  | 11,351 |
Total Ocwen Servicer Advance Receivables Trust III (OSART III) (6) |  |  |  |  |  |  |  | — |  |  | 90,000 |  |  | 51,415 |
Advance Receivables Backed Notes, Series 2015-VF1, Class A |  | 1ML + 212.5 bps |  | Jun. 2046 |  | Jun. 2016 |  | 29,242 |  |  | 100,323 |  |  | 112,882 |
Advance Receivables Backed Notes, Series 2015-VF1, Class B |  | 1ML + 300 bps |  | Jun. 2046 |  | Jun. 2016 |  | 3,087 |  |  | 10,637 |  |  | 12,268 |
Advance Receivables Backed Notes, Series 2015-VF1, Class C |  | 1ML + 350 bps |  | Jun. 2046 |  | Jun. 2016 |  | 1,906 |  |  | 5,134 |  |  | 5,951 |
Advance Receivables Backed Notes, Series 2015-VF1, Class D |  | 1ML + 425 bps |  | Jun. 2046 |  | Jun. 2016 |  | 2,439 |  |  | 7,232 |  |  | 8,377 |
Total Ocwen Freddie Advance Funding Facility (OFAF) (7) |  |  |  |  |  |  |  | 36,674 |  |  | 123,326 |  |  | 139,478 |
|  |  |  |  |  |  |  | $ | 212,904 |  |  | $ | 1,537,096 |  |  | $ | 1,584,049 |
Weighted average interest rate |  |  |  |  |  |  |  |  |  | 3.17 | % |  | 3.15 | %
(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 March 31, 2016, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.
(3) | 1-Month LIBOR was 0.44% and 0.43% at March 31, 2016 and December 31, 2015, respectively.
(4) | There is a ceiling of 75 bps for 1 ML in determining the interest rate for these variable rate notes.
(5) | Under the terms of the agreement, we must continue to borrow the full amount of the Series 2015-T1, T2 and T3 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.
(6) | On March 31, 2016, the maximum borrowing under the OSART III facility was increased to $90.0 million.
(7) | On March 31, 2016, the combined borrowing capacity of the Series 2015-VF1 Notes was increased to $160.0 million.
Schedule of Financing Liabilities | Financing liabilities are comprised of the following at the dates indicated:
Borrowings |  | Collateral |  | Interest Rate |  | Maturity |  | March 31, 2016 |  | December 31, 2015
Servicing: |  |  |  |  |  |  |  |  |  |
Financing liability – MSRs pledged |  | MSRs |  | (1) |  | (1) |  | $ | 523,503 |  |  | $ | 541,704 |
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (2) |  | MSRs |  | (2) |  | Feb. 2028 |  | 93,217 |  |  | 96,546 |
Financing liability – Advances pledged (3) |  | Advances on loans |  | (3) |  | (3) |  | 54,826 |  |  | 59,643 |
|  |  |  |  |  |  |  | 671,546 |  |  | 697,893 |
Lending: |  |  |  |  |  |  |  |  |  |
HMBS-related borrowings (4) |  | Loans held for investment |  | 1ML + 248 bps |  | (4) |  | 2,648,100 |  |  | 2,391,362 |
|  |  |  |  |  |  |  | $ | 3,319,646 |  |  | $ | 3,089,255 |
(1) | This financing liability arose in connection with the NRZ/HLSS Transactions and has no contractual maturity or repayment schedule. 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 the dates indicated:
Borrowings |  | Collateral |  | Interest Rate |  | Maturity |  | Available Borrowing Capacity |  | March 31, 2016 |  | December 31, 2015
Servicing: |  |  |  |  |  |  |  |  |  |  |  |
SSTL (1) |  | (1) |  | 1-Month Euro-dollar rate + 425 bps with a Eurodollar floor of 125 bps (1) |  | Feb. 2018 |  | $ | — |  |  | $ | 379,895 |  |  | $ | 398,454 |
Repurchase agreement (2) |  | Loans held for sale (LHFS) |  | 1ML + 200 - 345 bps |  | Sep. 2016 |  | 15,549 |  |  | 34,451 |  |  | 42,973 |
|  |  |  |  |  |  |  | 15,549 |  |  | 414,346 |  |  | 441,427 |
Lending: |  |  |  |  |  |  |  |  |  |  |  |
Master repurchase agreement (3) |  | LHFS |  | 1ML + 200 bps |  | Aug. 2016 |  | 70,238 |  |  | 129,762 |  |  | 156,226 |
Participation agreement (4) |  | LHFS |  | N/A |  | Apr. 2016 (4) |  | — |  |  | 28,824 |  |  | 49,897 |
Participation agreement (5) |  | LHFS |  | N/A |  | Apr. 2016 (5) |  | — |  |  | 115,107 |  |  | 73,049 |
Mortgage warehouse agreement (6) |  | LHFS (reverse mortgages) |  | 1ML + 275 bps; floor of 350 bps |  | May 2016 |  | — |  |  | — |  |  | 63,175 |
Master repurchase agreement (7) |  | LHFS (reverse mortgages) |  | 1ML + 275 bps; 1ML floor of 25 bps |  | Jan. 2017 |  | 48,742 |  |  | 51,258 |  |  | — |
|  |  |  |  |  |  |  | 118,980 |  |  | 324,951 |  |  | 342,347 |
|  |  |  |  |  |  |  | 134,529 |  |  | 739,297 |  |  | 783,774 |
Unamortized debt issuance costs - SSTL |  | — |  |  | (19,321 | ) |  | (20,012 | )
Discount - SSTL |  | — |  |  | (1,146 | ) |  | (1,351 | )
|  |  |  |  |  |  |  | $ | 134,529 |  |  | $ | 718,830 |  |  | $ | 762,411 |
Weighted average interest rate |  |  |  |  |  |  |  |  |  | 4.46 | % |  | 4.38 | %
(1) | 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 subject to a base rate floor of 2.25% or (b) the one month Eurodollar rate, plus a margin of 4.25% and subject to a one month Eurodollar floor of 1.25%. To date we have elected option (b) to determine the interest rate.
We entered into Amendment No. 5 to Senior Secured Term Loan Facility Agreement (the Amendment) effective as of March 28, 2016. The Amendment, among other things:
• | permanently removes the consolidated total debt to consolidated tangible net worth ratio, corporate leverage ratio and interest coverage ratio financial covenants;
• | maintains the loan-to-value ratio covenant at its current 40% level throughout the remaining term of the SSTL;
• | limits the repurchase of Ocwen’s common stock or options to an amount not to exceed the sum of (i) $20 million plus (ii) an amount equal to (x) $20 million times (y) the aggregate amount of prepayments on the SSTL made after March 28, 2016 divided by $50 million;
• | limits the repurchase of Ocwen’s 6.625% Senior Notes (the Senior Unsecured Notes) due 2019 to an amount not to exceed the sum of (i) $30 million plus (ii) an amount equal to (x) $30 million times (y) the aggregate amount of prepayments on the SSTL made after March 28, 2016 divided by $50 million;
• | requires that we make a prepayment on the SSTL in an amount equal to $6.3 million (for a total of $19.0 million) on each of May 31, 2016, July 29, 2016 and September 30, 2016; and
• | provides for a fee payable to the consenting lenders equal to 1.0% of the aggregate amount of such consenting lenders’ SSTL loans outstanding.
(2) | The maximum borrowing under this facility is 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) | 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 April 11, 2016, we negotiated an extension of this agreement to May 15, 2016 and reduced the maximum borrowing to $75.0 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 April 11, 2016, we negotiated an extension of this agreement to May 15, 2016 and increased the maximum borrowing to $175.0 million.
(6) | Borrowing capacity of $100.0 million under this facility is available at the discretion of the lender.
(7) | We entered into this agreement on January 5, 2016. The lender provides financing on a committed basis for $100.0 million.

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- Definition Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(b),22(b)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(e),(f)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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