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Borrowings (Tables) | 3 Months Ended
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Mar. 31, 2017
Debt Disclosure [Abstract] |
Schedule of Match Funded Liabilities |
|  |  |  |  |  |  |  | March 31, 2017 |  | December 31, 2016
Borrowing Type |  | Maturity (1) |  | Amorti- zation Date (1) |  | Available Borrowing Capacity (2) |  | Weighted Average Interest Rate (3) |  | Balance |  | Weighted Average Interest Rate (3) |  | Balance
Advance Financing Facilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Advance Receivables Backed Notes - Series 2014-VF3 (4) |  | Aug. 2047 |  | Aug. 2017 |  | $ | 88,625 |  |  | 3.12 | % |  | $ | 51,375 |  |  | 3.12 | % |  | $ | 74,394 |
Advance Receivables Backed Notes - Series 2014-VF4 (4) |  | Aug. 2047 |  | Aug. 2017 |  | 88,625 |  |  | 3.12 |  |  | 51,375 |  |  | 3.12 |  |  | 74,394 |
Advance Receivables Backed Notes - Series 2015-VF5 (4) |  | Aug. 2047 |  | Aug. 2017 |  | 88,626 |  |  | 3.12 |  |  | 51,374 |  |  | 3.12 |  |  | 74,394 |
Advance Receivables Backed Notes - Series 2015-T3 (5) |  | Nov. 2047 |  | Nov. 2017 |  | — |  |  | 3.48 |  |  | 400,000 |  |  | 3.48 |  |  | 400,000 |
Advance Receivables Backed Notes - Series 2016-T1 (5) |  | Aug. 2048 |  | Aug. 2018 |  | — |  |  | 2.77 |  |  | 265,000 |  |  | 2.77 |  |  | 265,000 |
Advance Receivables Backed Notes - Series 2016-T2 (5) |  | Aug. 2049 |  | Aug. 2019 |  | — |  |  | 2.99 |  |  | 235,000 |  |  | 2.99 |  |  | 235,000 |
Total Ocwen Master Advance Receivables Trust (OMART) |  |  |  |  |  | 265,876 |  |  | 3.14 |  |  | 1,054,124 |  |  | 3.14 |  |  | 1,123,182 |
Ocwen Servicer Advance Receivables Trust III (OSART III) - Advance Receivables Backed Notes, Series 2014-VF1 (6) |  | Dec. 2047 |  | Dec. 2017 |  | 14,052 |  |  | 4.18 | % |  | 60,948 |  |  | 4.03 | % |  | 63,093 |
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (7) |  | Jun. 2047 |  | Jun. 2017 |  | 78,873 |  |  | 3.75 | % |  | 81,127 |  |  | 3.54 | % |  | 94,722 |
|  |  |  |  |  | 358,801 |  |  | 3.23 | % |  | 1,196,199 |  |  | 3.21 | % |  | 1,280,997 |
Automotive Dealer Loan Financing Facility: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan Series 2017-1 |  | Feb. 2021 |  | Feb. 2019 |  | 40,493 |  |  | 6.55 | % |  | 9,507 |  |  | — | % |  | — |
Loan Series 2017-2 |  | Mar. 2021 |  | Mar. 2019 |  | 40,494 |  |  | 5.98 |  |  | 9,506 |  |  | — |  |  | — |
Total Automotive Capital Asset Receivables Trust (ACART) (8) |  |  |  |  |  | 80,987 |  |  | 6.26 | % |  | 19,013 |  |  | — | % |  | — |
|  |  |  |  |  | $ | 439,788 |  |  | 3.28 | % |  | $ | 1,215,212 |  |  | 3.21 | % |  | $ | 1,280,997 |
(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, 2017, none of the available borrowing capacity of our advance financing notes could be used based on the amount of eligible collateral that had been pledged.
(3) | 1ML was 0.98% and 0.77% at March 31, 2017 and December 31, 2016, respectively.
(4) | The borrowing capacity of each series of variable rate notes is $140.0 million. There is a ceiling of 75 bps for 1ML in determining the interest rate for the notes. Rates on the individual notes are based on 1ML plus a margin of 185 to 545 basis points (bps).
(5) | Under the terms of the agreement, we must continue to borrow the full amount of the Series 2015-T3, Series 2016-T1 and Series 2016-T2 fixed-rate term 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 notes. The Series 2016-T1 and 2016-T2 notes have a total borrowing capacity of $500.0 million. The Series 2015-T3 notes have a borrowing capacity of $400.0 million. Rates on the individual notes range from 2.5207% to 4.6870%
(6) | The maximum borrowing capacity under this facility is $75.0 million. There is a ceiling of 75 bps for 1ML in determining the interest rate for these variable rate notes. Rates on the individual notes are based on the lender’s cost of funds plus a margin of 230 to 470 bps.
(7) | The combined borrowing capacity of the Series 2015-VF1 Notes is $160.0 million. There is a ceiling of 125 bps for 1ML in determining the interest rate for these variable rate notes. Rates on the individual notes are based on 1ML plus a margin of 240 to 480 bps.
(8) | We entered into the loan agreements for the Series 2017-1 Notes on February 24, 2017 and for the Series 2017-2 Notes on March 17, 2017. The committed borrowing capacity for each of the Series 2017-1 and Series 2017-2 variable rate notes is $50.0 million. We may from time to time request increases in the aggregate maximum borrowing capacity of the facility to a maximum aggregate borrowing capacity of $200.0 million. Rates on the Series 2017-1 notes are based on 1ML plus a margin of 500 bps and rates on the Series 2017-2 notes are based on the lender’s cost of funds plus a margin of 500 bps.
Schedule of Financing Liabilities |
Borrowings |  | Collateral |  | Interest Rate |  | Maturity |  | March 31, 2017 |  | December 31, 2016
Financing liability – MSRs pledged |  | MSRs |  | (1) |  | (1) |  | $ | 459,187 |  |  | $ | 477,707 |
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (2) |  | MSRs |  | (2) |  | Feb. 2028 |  | 78,990 |  |  | 81,131 |
Financing liability – Advances pledged (3) |  | Advances on loans |  | (3) |  | (3) |  | 17,966 |  |  | 20,193 |
HMBS-related borrowings (4) |  | Loans held for investment |  | 1ML + 263 bps |  | (4) |  | 3,739,265 |  |  | 3,433,781 |
|  |  |  |  |  |  |  | $ | 4,295,408 |  |  | $ | 4,012,812 |
(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 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 |
Borrowings |  | Collateral |  | Interest Rate |  | Maturity |  | Available Borrowing Capacity (1) |  | March 31, 2017 |  | December 31, 2016
Senior secured term loan (SSTL) |  |  |  |  |  |  |  |  |  |  |  |
SSTL (2) |  | (2) |  | 1-Month Euro-dollar rate + 500 bps with a Eurodollar floor of 100 bps (2) |  | Dec. 2020 |  | $ | — |  |  | $ | 330,813 |  |  | $ | 335,000 |
Mortgage loan warehouse facilities: |  |  |  |  |  |  |  |  |  |  |  |
Repurchase agreement (3) |  | Loans held for sale (LHFS) |  | 1ML + 200 - 345 bps |  | Sep. 2017 |  | 36,824 |  |  | 13,176 |  |  | 12,370 |
Master repurchase agreements (4) |  | LHFS |  | 1ML + 200 bps; 1ML floor of 0.0% |  | Feb. 2018 |  | 69,600 |  |  | 130,400 |  |  | 173,543 |
Participation agreements (5) |  | LHFS |  | N/A |  | Apr. 2017 (5) |  | — |  |  | 163,956 |  |  | 92,739 |
Participation agreements (6) |  | LHFS (reverse mortgages) |  | 1ML + 275 bps; 1ML floor of 300 or 350 bps |  | Aug. 2017 |  | — |  |  | 48,709 |  |  | 26,254 |
Master repurchase agreement (7) |  | LHFS (reverse mortgages) |  | 1ML + 275 bps; 1ML floor of 25 bps |  | Jan. 2018 |  | 37,925 |  |  | 62,075 |  |  | 50,123 |
|  |  |  |  |  |  |  | 144,349 |  |  | 418,316 |  |  | 355,029 |
|  |  |  |  |  |  |  | $ | 144,349 |  |  | 749,129 |  |  | 690,029 |
Unamortized debt issuance costs - SSTL |  |  |  | (7,079 | ) |  | (7,612 | )
Discount - SSTL |  |  |  | (3,603 | ) |  | (3,874 | )
|  |  |  |  |  |  |  |  |  |  | $ | 738,447 |  |  | $ | 678,543 |
Weighted average interest rate |  |  |  |  |  |  |  |  |  | 4.70 | % |  | 4.56 | %
(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. Of the borrowing capacity extended on a committed basis, $0.8 million could be used at March 31, 2017 based on the amount of eligible collateral that had been pledged.
(2) | On December 5, 2016, we entered into an Amended and Restated Senior Secured Term Loan Facility Agreement that established a new SSTL with a borrowing capacity of $335.0 million and a maturity date of December 5, 2020. We may request increases to the loan amount of up to $100.0 million in total, with additional increases subject to certain limitations. We are required to make quarterly payments on the SSTL in an amount of $4.2 million the first of which was paid 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 2.00%. To date we have elected option (b) to determine the interest rate.
(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. 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 February 24, 2017, we executed a $200.0 million warehouse facility to replace the existing facility of the same size and with the same lender with a maturity date of February 23, 2018.
(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 25, 2017, the term of these participation agreements was extended to April 30, 2018.
(6) | Under this participation agreement, the lender provides uncommitted reverse mortgage financing for $110.0 million at the discretion of the lender. The lender has indicated to us that it does not currently intend to lend more than $20.0 million under this facility. 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.
(7) | The lender provides financing on a committed basis for $100.0 million.
Schedule of Senior Notes | Senior Notes
| March 31, 2017 |  | December 31, 2016
6.625% Senior unsecured notes due May 15, 2019 | $ | 3,122 |  |  | $ | 3,122 |
8.375% Senior secured notes due November 15, 2022 | 346,878 |  |  | 346,878 |
| 350,000 |  |  | $ | 350,000 |
Unamortized debt issuance costs | (3,071 | ) |  | (3,211 | )
| $ | 346,929 |  |  | $ | 346,789 |
Schedule of Redemption Prices | The redemption prices during the twelve-month periods beginning on November 15 of each year are as follows:
Year |  | Redemption Price
2018 |  | 106.281%
2019 |  | 104.188%
2020 |  | 102.094%
2021 and thereafter |  | 100.000%

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