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Borrowings (Tables)
 12 Months Ended
Dec. 31, 2016
Debt Instrument, Redemption [Line Items]  
Schedule of Match Funded Liabilities
Match funded liabilities are comprised of the following at December 31:
Borrowing Type
 
Interest Rate
 
Maturity (1)
 
Amortization Date (1)
 
Available Borrowing Capacity (2)
 
2016
 
2015
Advance Receivables Backed Notes, Series 2014-VF3,
Class A (4)
 
1ML (3) + 185 bps
 
Aug. 2047
 
Aug. 2017
 
$
53,287

 
$
59,892

 
$
132,651

Advance Receivables Backed Notes - Series 2014-VF3,
Class B (4)
 
1ML + 250 bps
 
Aug. 2047
 
Aug. 2017
 
2,458

 
2,879

 
6,330

Advance Receivables Backed Notes - Series 2014-VF3,
Class C (4)
 
1ML + 380 bps
 
Aug. 2047
 
Aug. 2017
 
2,716

 
3,189

 
6,977

Advance Receivables Backed Notes - Series 2014-VF3,
Class D (4)
 
1ML + 545 bps
 
Aug. 2047
 
Aug. 2017
 
7,145

 
8,434

 
18,427

Advance Receivables Backed Notes - Series 2014-VF4,
Class A (4)
 
1ML + 185 bps
 
Aug. 2047
 
Aug. 2017
 
53,287

 
59,892

 
132,651

Advance Receivables Backed Notes - Series 2014-VF4,
Class B (4)
 
1ML + 250 bps
 
Aug. 2047
 
Aug. 2017
 
2,458

 
2,879

 
6,330

Advance Receivables Backed Notes - Series 2014-VF4,
Class C (4)
 
1ML + 380 bps
 
Aug. 2047
 
Aug. 2017
 
2,716

 
3,189

 
6,977

Advance Receivables Backed Notes - Series 2014-VF4,
Class D (4)
 
1ML + 545 bps
 
Aug. 2047
 
Aug. 2017
 
7,145

 
8,434

 
18,427

Advance Receivables Backed Notes - Series 2015-VF5,
Class A (4)
 
1ML + 185 bps
 
Aug. 2047
 
Aug. 2017
 
53,287

 
59,892

 
132,652

Advance Receivables Backed Notes - Series 2015-VF5,
Class B (4)
 
1ML + 250 bps
 
Aug. 2047
 
Aug. 2017
 
2,458

 
2,879

 
6,330

Advance Receivables Backed Notes - Series 2015-VF5,
Class C (4)
 
1ML + 380 bps
 
Aug. 2047
 
Aug. 2017
 
2,716

 
3,189

 
6,977

Borrowing Type
 
Interest Rate
 
Maturity (1)
 
Amortization Date (1)
 
Available Borrowing Capacity (2)
 
2016
 
2015
Advance Receivables Backed Notes - Series 2015-VF5,
Class D (4)
 
1ML + 545 bps
 
Aug. 2047
 
Aug. 2017
 
7,145

 
8,434

 
18,427

Advance Receivables Backed Notes - Series 2015-T1,
Class A (5)
 
2.5365%
 
Sep. 2046
 
Sep. 2016
 
—

 
—

 
244,809

Advance Receivables Backed Notes - Series 2015-T1,
Class B (5)
 
3.0307%
 
Sep. 2046
 
Sep. 2016
 
—

 
—

 
10,930

Advance Receivables Backed Notes - Series 2015-T1,
Class C (5)
 
3.5240%
 
Sep. 2046
 
Sep. 2016
 
—

 
—

 
12,011

Advance Receivables Backed Notes - Series 2015-T1,
Class D (5)
 
4.1000%
 
Sep. 2046
 
Sep. 2016
 
—

 
—

 
32,250

Advance Receivables Backed Notes - Series 2015-T2,
Class A (5)
 
2.5320%
 
Nov. 2046
 
Nov. 2016
 
—

 
—

 
161,973

Advance Receivables Backed Notes - Series 2015-T2,
Class B (5)
 
3.3720%
 
Nov. 2046
 
Nov. 2016
 
—

 
—

 
7,098

Advance Receivables Backed Notes - Series 2015-T2,
Class C (5)
 
3.7660%
 
Nov. 2046
 
Nov. 2016
 
—

 
—

 
8,113

Advance Receivables Backed Notes - Series 2015-T2,
Class D (5)
 
4.2580%
 
Nov. 2046
 
Nov. 2016
 
—

 
—

 
22,816

Advance Receivables Backed Notes - Series 2015-T3,
Class A (5)
 
3.2110%
 
Nov. 2047
 
Nov. 2017
 
—

 
310,195

 
310,195

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

Advance Receivables Backed Notes - Series 2016-T1,
Class A (5)
 
2.5207%
 
Aug. 2048
 
Aug. 2018
 
—

 
216,700

 
—

Advance Receivables Backed Notes - Series 2016-T1,
Class B (5)
 
3.0643%
 
Aug. 2048
 
Aug. 2018
 
—

 
9,000

 
—

Advance Receivables Backed Notes - Series 2016-T1,
Class C (5)
 
3.6067%
 
Aug. 2048
 
Aug. 2018
 
—

 
10,800

 
—

Advance Receivables Backed Notes - Series 2016-T1,
Class D (5)
 
4.2462%
 
Aug. 2048
 
Aug. 2018
 
—

 
28,500

 
—

Advance Receivables Backed Notes - Series 2016-T2,
Class A (5)
 
2.7215%
 
Aug. 2049
 
Aug. 2019
 
—

 
188,300

 
—

Advance Receivables Backed Notes - Series 2016-T2,
Class B (5)
 
3.2647%
 
Aug. 2049
 
Aug. 2019
 
—

 
8,500

 
—

Borrowing Type
 
Interest Rate
 
Maturity (1)
 
Amortization Date (1)
 
Available Borrowing Capacity (2)
 
2016
 
2015
Advance Receivables Backed Notes - Series 2016-T2,
Class C (5)
 
3.8066%
 
Aug. 2049
 
Aug. 2019
 
—

 
10,300

 
—

Advance Receivables Backed Notes - Series 2016-T2,
Class D (5)
 
4.4456%
 
Aug. 2049
 
Aug. 2019
 
—

 
27,900

 
—

Total Ocwen Master Advance Receivables Trust (OMART)
 
 
 
 
 
 
 
196,818

 
1,123,182

 
1,393,156

 
 
 
 
 
 
 
 
 
 
 
 
 
Advance Receivables Backed Notes, Series 2014-VF1,
Class A
 
Cost of Funds + 230 bps
 
Dec. 2047
 
Dec. 2017
 
8,171

 
43,229

 
31,343

Advance Receivables Backed Notes, Series 2014-VF1,
Class B
 
Cost of Funds + 360 bps
 
Dec. 2047
 
Dec. 2017
 
597

 
3,403

 
4,157

Advance Receivables Backed Notes, Series 2014-VF1,
Class C
 
Cost of Funds + 410 bps
 
Dec. 2047
 
Dec. 2017
 
879

 
4,421

 
4,564

Advance Receivables Backed Notes, Series 2014-VF1,
Class D
 
Cost of Funds + 470 bps
 
Dec. 2047
 
Dec. 2017
 
2,260

 
12,040

 
11,351

Total Ocwen Servicer Advance Receivables Trust III (OSART III) (6)
 
 
 
 
 
 
 
11,907

 
63,093

 
51,415

 
 
 
 
 
 
 
 
 
 
 
 
 
Advance Receivables Backed Notes, Series 2015-VF1, Class A
 
1ML + 240 bps
 
Jun. 2047
 
Jun. 2017
 
44,395

 
74,605

 
112,882

Advance Receivables Backed Notes, Series 2015-VF1, Class B
 
1ML + 340 bps
 
Jun. 2047
 
Jun. 2017
 
8,091

 
7,909

 
12,268

Advance Receivables Backed Notes, Series 2015-VF1, Class C
 
1ML + 400 bps
 
Jun. 2047
 
Jun. 2017
 
3,594

 
3,406

 
5,951

Advance Receivables Backed Notes, Series 2015-VF1, Class D
 
1ML + 480 bps
 
Jun. 2047
 
Jun. 2017
 
9,198

 
8,802

 
8,377

Total Ocwen Freddie Advance Funding (OFAF) (7)
 
 
 
 
 
 
 
65,278

 
94,722

 
139,478

 
 
 
 
 
 
 
 
$
274,003

 
$
1,280,997

 
$
1,584,049

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
3.21
%
 
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 December 31, 2016, none of the available borrowing capacity could be used based on the amount of eligible collateral that had been pledged.
(3)
1ML was 0.77% and 0.43% at December 31, 2016 and 2015, respectively.
(4)
On August 12, 2016, the supplemental indentures for the OMART facility variable funding notes were amended to reduce the borrowing capacity of each series from $200.0 million to $140.0 million or a total decrease in borrowing capacity of $180.0 million. There is a ceiling of 75 bps for 1ML 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-T3 Notes and the Series 2016-T1 and T2 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. On August 12, 2016, we issued the Series 2016-T1 and 2016-T2 Notes with a total borrowing capacity of $500.0 million. The proceeds from these notes were used to prepay at par the $500.0 million of Series 2015-T1 and 2015-T2 notes that were outstanding.
(6)
On December 15, 2016, we extended the term of this facility for an additional year and reduced the maximum borrowing capacity under the facility from $90.0 million to $75.0 million. There is a ceiling of 75 bps for 1ML in determining the interest rate for these variable rate notes.
(7)
On March 31, 2016, the combined borrowing capacity of the Series 2015-VF1 Notes was increased to $160.0 million. On June 10, 2016, the term of this facility was extended for an additional year. There is a ceiling of 125 bps for 1ML in determining the interest rate for these notes.
Schedule of Financing Liabilities
Financing liabilities are comprised of the following at December 31:
Borrowings
 
Collateral
 
Interest Rate
 
Maturity
 
2016
 
2015
Financing liability – MSRs pledged
 
MSRs
 
(1)
 
(1)
 
$
477,707

 
$
541,704

Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (2)
 
MSRs
 
(2)
 
Feb. 2028
 
81,131

 
96,546

Financing liability – Advances pledged (3)
 
Advances on loans
 
(3)
 
(3)
 
20,193

 
59,643

HMBS-related borrowings (4)
 
Loans held for investment
 
1ML + 260 bps
 
(4)
 
3,433,781

 
2,391,362

 
 
 
 
 
 
 
 
$
4,012,812

 
$
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. 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. This financing liability has no contractual maturity.
(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 Borrowing Capacity (1)
 
2016
 
2015
Senior secured term loan (SSTL):
 
 
 
 
 
 
 
 
 
 
 
 
SSTL (2)
 
(2)
 
1-Month Euro-dollar rate + 425 bps with a Eurodollar floor of 125 bps
 
Feb. 2018
 
$
—

 
$
—

 
$
398,454

SSTL (2)
 
(2)
 
1-Month Euro-dollar rate + 500 bps with a Eurodollar floor of 100 bps (2)
 
Dec. 2020
 
—

 
335,000

 
—

 
 
 
 
 
 
 
 
—

 
335,000

 
398,454

 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage loan warehouse facilities:
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase agreement (3)
 
Loans held for sale (LHFS)
 
1ML + 200 - 345 bps
 
Sep. 2017
 
37,630

 
12,370

 
42,973

Master repurchase agreement (4)
 
LHFS
 
1ML + 200 bps; 1ML floor of 0.0%
 
Jan. 2017 (4)
 
26,457

 
173,543

 
156,226

Participation agreement (5)
 
LHFS
 
N/A
 
Apr. 2017 (5)
 
—

 
44,413

 
49,897

Participation agreement (5)
 
LHFS
 
N/A
 
Apr. 2017 (5)
 
—

 
48,326

 
73,049

Mortgage warehouse agreement (6)
 
LHFS (reverse mortgages)
 
1ML + 275 bps; 1ML floor of 300 or 350 bps
 
Aug. 2017
 
—

 
26,254

 
63,175

Master repurchase agreement (7)
 
LHFS (reverse mortgages)
 
1ML + 275 bps; 1ML floor of 25 bps
 
Jan. 2018
 
49,877

 
50,123

 
—

 
 
 
 
 
 
 
 
113,964

 
355,029

 
385,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
113,964

 
690,029

 
783,774

Unamortized debt issuance costs - SSTL
 
 
 
(7,612
)
 
(20,012
)
Discount - SSTL
 
 
 
(3,874
)
 
(1,351
)
 
 
 
 
 
 
 
 


 
$
678,543

 
$
762,411

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
4.56
%
 
4.38
%
(1)
For our mortgage loan warehouse facilities, available borrowing capacity does not consider the amount of the facility that the lender has extended on an uncommitted basis.
(2)
On December 5, 2016, we entered into an Amended and Restated Senior Secured Term Loan Facility Agreement (the Amended and Restated Agreement). The Amended and Restated Agreement establishes a new SSTL with a borrowing capacity of $335.0 million and a maturity date of December 5, 2020. We used the proceeds of the new SSTL to repay our obligations under the prior SSTL and to pay certain fees and expenses of the transaction. We may request increases to the loan amount of up to $100.0 million, with additional increases subject to certain limitations. We are required to make quarterly payments on the SSTL in an amount of $4.2 million commencing on March 31, 2017.
The borrowings under the SSTL are secured by a first priority security interest in substantially all of the assets of Ocwen, OLS and the other guarantors thereunder, excluding among other things, 35% of the capital stock of foreign subsidiaries, securitization assets and equity interests of securitization entities, assets securing permitted funding indebtedness and non-recourse indebtedness, REO assets, servicing agreements where an acknowledgment from the GSE has not been obtained, as well as other customary carve-outs.
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 (1ML)), plus a margin of 4.00% and subject to a base rate floor of 2.00% or (b) the one month Eurodollar rate, plus a margin of 5.00% and subject to a one month Eurodollar floor of 1.00%. To date we have elected option (b) to determine the interest rate.
The amended and restated agreement includes covenants that are substantially similar to the prior senior secured term loan, including the requirement that Ocwen maintain a loan-to-value ratio at a 40% level as of the last date of any fiscal quarter throughout the term of the SSTL.
(3)
Fifty percent of the maximum borrowing amount of $100.0 million is available on a committed basis and fifty percent is available at the discretion of the lender. On September 29, 2016, we renewed this facility through September 28, 2017 with no change in interest rates or maximum borrowing capacity. We use this facility to fund the repurchase of certain loans from Ginnie Mae guaranteed securitizations in connection with loan modifications and loan resolution activity as part of our contractual obligations as the servicer of the loans.
(4)
Under this repurchase agreement, the lender provides financing on a committed basis for $200.0 million. On November 28, 2016, we extended the term of this agreement to January 31, 2017 with no change in rates or maximum borrowing capacity, although a LIBOR floor of 0.0% was added to the terms of the facility effective September 30, 2016. On January 31, 2017, the term of this agreement was further extended to February 28, 2017.
(5)
Under these participation agreements, the lender provides financing for a combined total of $250.0 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 26, 2016, the term of these agreements was extended to April 30, 2017.
(6)
Under this participation agreement, the lender provides financing for $110.0 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 August 17, 2016, the term of this agreement was extended to August 17, 2017.
(7)
We entered into this agreement on January 5, 2016. The lender provides financing on a committed basis for $100.0 million. On December 23, 2016, the term of this agreement was extended to January 2, 2018. The other terms remained unchanged.
Schedule of Senior Notes
Senior notes, net are comprised of the following at December 31:
 
2016
 
2015
6.625% Senior unsecured notes
$
3,122

 
$
350,000

8.375% Senior secured notes
346,878

 
—

 
350,000

 
$
350,000

Unamortized debt issuance costs
(3,211
)
 
(4,489
)
 
$
346,789

 
$
345,511
Schedule of Aggregate Long-term Borrowings
Aggregate expected maturities of our borrowings at December 31, 2016 are included in the table below. Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience.
 
 
Expected Maturity Date (1) (2) (3)
 
 
 
 
 
 
2017
 
2018
 
2019
 
2020
 
2021
 
There- after
 
Total
Balance
 
Fair
Value
Match funded liabilities
 
$
780,997

 
$
265,000

 
$
235,000

 
$
—

 
$
—

 
$
—

 
$
1,280,997

 
$
1,275,059

Other secured borrowings
 
321,656

 
66,873

 
16,750

 
284,750

 
—

 
—

 
690,029

 
682,703

Senior notes
 
—

 
—

 
3,122

 
—

 
—

 
346,878

 
350,000

 
355,303

 
 
$
1,102,653

 
$
331,873

 
$
254,872

 
$
284,750

 
$
—

 
$
346,878

 
$
2,321,026

 
$
2,313,065

(1)
Amounts are exclusive of any related discount or unamortized debt issuance costs.
(2)
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.
(3)
Excludes financing liabilities, which we recognized in connection with asset sales transactions that we accounted for as financings. Financing liabilities include $477.7 million recorded in connection with sales of Rights to MSRs and $3.4 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.
6.625 Senior Notes, Due 2019 [Member]  
Debt Instrument, Redemption [Line Items]  
Schedule of Redemption Prices
The redemption prices during the twelve-month periods beginning on May 15th of each year are as follows:
Year
 
Redemption Price
2016
 
104.969%
2017
 
103.313%
2018 and thereafter
 
100.000%
8.375% Senior Secured Notes Due In 2022 [Member]  
Debt Instrument, Redemption [Line Items]  
Schedule of Redemption Prices
The redemption prices during the twelve-month periods beginning on November 15th of each year are as follows:
Year
 
Redemption Price
2018
 
106.281%
2019
 
104.188%
2020
 
102.094%
2021 and thereafter
 
100.000%