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Rights to MSRs - Schedule of Activity Related to Rights to Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Servicing Assets at Fair Value [Line Items]    
Beginning balance, Financing Liability [1],[2] $ (477,707)  
Receipt of lump sum payment in connection with transfer of MSRs to NRZ [1],[2],[3] (54,601)  
Calls, Financing Liability [1],[2],[4] 4,478  
Sales and other transfers, MSRs (2,672) $ (1,474)
Changes in valuation inputs or other assumptions [5] 2,172 (4,654)
Changes in valuation inputs or other assumptions, Financing liabilities [1],[2] 27,024  
Realization of expected future cash flows and other changes [5] (80,609) $ (58,954)
Realization of expected future cash flows and other changes, Financing liabilities [1],[2] 0  
Runoff, settlements and other, Financing Liability [1],[2] 52,963  
Ending balance, Financing Liability [1],[2] (447,843)  
2012 - 2013 Agreements [Member]    
Servicing Assets at Fair Value [Line Items]    
Advances 2,727,107  
UPB [Member] | 2017 Agreements [Member]    
Servicing Assets at Fair Value [Line Items]    
Beginning balance, UPB 0  
Transfers upon receipt of consents, UPB 15,872,374  
Calls, UPB [4] (134,705)  
Sales and other transfers, UPB 0  
Runoff, settlements and other, UPB (217,048)  
Ending balance, UPB 15,520,621  
UPB [Member] | 2012 - 2013 Agreements [Member]    
Servicing Assets at Fair Value [Line Items]    
Beginning balance, UPB 118,712,748  
Transfers upon receipt of consents, UPB (15,872,374)  
Calls, UPB [4] (1,132,497)  
Sales and other transfers, UPB (57,793)  
Runoff, settlements and other, UPB (11,613,047)  
Ending balance, UPB 90,037,037  
Carrying Value [Member] | 2017 Agreements [Member]    
Servicing Assets at Fair Value [Line Items]    
Beginning balance, MSRs 0  
Transfers upon receipt of consents, MSRs 31,253  
Calls, MSRs [4] (322)  
Sales and other transfers, MSRs 0  
Changes in valuation inputs or other assumptions [3] (2,444)  
Realization of expected future cash flows and other changes [3] (1,459)  
Runoff, settlements and other, MSRs 0  
Ending balance, MSRs 27,028  
Carrying Value [Member] | 2012 - 2013 Agreements [Member]    
Servicing Assets at Fair Value [Line Items]    
Beginning balance, MSRs 477,707  
Transfers upon receipt of consents, MSRs (31,253)  
Calls, MSRs [4] (4,156)  
Sales and other transfers, MSRs 0  
Changes in valuation inputs or other assumptions [3] (1,471)  
Realization of expected future cash flows and other changes [3] (52,266)  
Decrease in impairment valuation allowance 13,769  
Runoff, settlements and other, MSRs 1,529  
Ending balance, MSRs $ 403,859  
[1] Carried at fair value in accordance with fair value election.
[2] Under ASC 470-50, Debt - Modifications and Extinguishments, Ocwen is deemed to have had a significant modification and debt extinguishment in connection with the Rights to MSRs secured financing liability. Because the secured financing liability is accounted for at fair value, there was no gain or loss recognized in connection with this debt extinguishment. As permitted by ASC 825-10-25, Financial Instruments - Recognition - Fair Value Option, a significant modification of debt is an event that creates a fair value option election date.
[3] The amount of the lump sum payment is based on a contractual schedule that approximates the net present value of the difference in cash flows under the 2017 Agreements versus the 2012 - 2013 Agreements, and was determined based on the weighted average characteristics, such as contractual servicing fee rates and delinquency, of the MSRs underlying the Rights to MSRs. The difference between the characteristics of the MSRs underlying the Rights to MSRs that are transferred in any period, relative to the weighted average loan characteristics used to determine the lump sum payment, will result in an increase (characteristics of transferred MSRs compare favorably to the weighted average) or decrease (characteristics of transferred MSRs compare unfavorably to the weighted average) in the fair value of the financing liability. The fair value of the portion of the financing liability recognized in connection with the September 1, 2017 transfer declined $37.6 million primarily due to the transferred MSRs having a contractual servicing fee rate of 33.4 bps as compared to the weighted average of 47.1 bps.
[4] Represents the UPB and carrying value of MSRs in connection with clean-up call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the 2012 - 2013 Agreements. Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization. Income recognized in connection with clean-up calls is reported in other income in our unaudited consolidated statements of operations.
[5] Changes in fair value are recognized in Servicing and origination expense in the unaudited consolidated statements of operations.