Note 16 – Basic and Diluted Earnings (Loss) per Share

Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the period. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Ocwen by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options and restricted stock awards. For the three and six months ended June 30, 2018 and 2017, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Basic loss per share
Net loss attributable to Ocwen stockholders	$	(29,831	)	$	(44,507	)	$	(27,283	)	$	(77,231	)

Weighted average shares of common stock	133,856,132			124,582,280			133,490,828			124,300,171

Basic loss per share	$	(0.22	)	$	(0.36	)	$	(0.20	)	$	(0.62	)

Diluted loss per share
Net loss attributable to Ocwen stockholders	$	(29,831	)	$	(44,507	)	$	(27,283	)	$	(77,231	)

Weighted average shares of common stock	133,856,132			124,582,280			133,490,828			124,300,171
Effect of dilutive elements
Stock option awards	—			—			—			—
Common stock awards	—			—			—			—
Dilutive weighted average shares of common stock	133,856,132			124,582,280			133,490,828			124,300,171

Diluted loss per share	$	(0.22	)	$	(0.36	)	$	(0.20	)	$	(0.62	)

Stock options and common stock awards excluded from the computation of diluted earnings per share
Anti-dilutive (1)	6,492,703			6,709,154			6,498,025			4,382,684
Market-based (2)	645,984			862,446			645,984			862,446


(1)	Stock options were anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock.


(2)	Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.