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Borrowings (Tables)
 12 Months Ended
Dec. 31, 2018
Debt Instrument, Redemption [Line Items]  
Schedule of Match Funded Liabilities
Match Funded Liabilities

 
 
 
 
 
 
 
December 31, 2018
 
December 31, 2017
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-VF4 (4)
 
Aug. 2048
 
Aug. 2018
 
$
—

 
—
%
 
$
—

 
4.29
%
 
$
67,095

Advance Receivables Backed Notes - Series 2015-VF5 (4)
 
Dec. 2049
 
Dec. 2019
 
8,441

 
4.06

 
216,559

 
4.29

 
67,095

Advance Receivables Backed Notes - Series 2016-T1 (5)
 
Aug. 2048
 
Aug. 2018
 
—

 
—

 
—

 
2.77

 
265,000

Advance Receivables Backed Notes - Series 2016-T2 (5)
 
Aug. 2049
 
Aug. 2019
 
—

 
2.99

 
235,000

 
2.99

 
235,000

Advance Receivables Backed Notes - Series 2017-T1 (5)
 
Sep. 2048
 
Sep. 2018
 
—

 
—

 
—

 
2.64

 
250,000

Advance Receivables Backed Notes, Series 2018-T1 (5)
 
Aug. 2049
 
Aug. 2019
 
—

 
3.50

 
150,000

 
—

 
—

Advance Receivables Backed Notes, Series 2018-T2 (5)
 
Aug. 2050
 
Aug. 2020
 
—

 
3.81

 
150,000

 
—

 
—

Total Ocwen Master Advance Receivables Trust (OMART)
 
 
 
 
 
8,441

 
3.56

 
751,559

 
3.02

 
884,190

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ocwen Servicer Advance Receivables Trust III (OSART III) - Advance Receivables Backed Notes, Series 2014-VF1 (6)
 
Dec. 2048
 
Dec. 2018
 
—

 
—

 
—

 
4.63

 
33,768

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (7)
 
Jun. 2049
 
Jun. 2019
 
38,275

 
5.03

 
26,725

 
3.54

 
56,078

Total Servicing Advance Financing Facilities
 
 
 
 
 
46,716

 
3.61
%
 
778,284

 
3.16
%
 
974,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automotive Capital Asset Receivables Trust (ACART) - Loan Series 2017-1 (8)
 
Feb. 2021
 
Feb. 2019
 
—

 
—
%
 
—

 
6.77
%
 
24,582

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
46,716

 
3.61
%
 
$
778,284

 
3.25
%
 
$
998,618

(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 eligible collateral to pledge. Collateral may only be pledged to one facility. At December 31, 2018, 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 2.50% and 1.56% at December 31, 2018 and 2017, respectively.
(4)
Effective January 1, 2018, the borrowing capacity of the Series 2014-VF4 and the Series 2015-VF5 variable rate notes were each reduced from $105.0 million to $70.0 million. The interest rate was based on 1ML, with a ceiling of 125 basis points (bps) plus a margin of 235 to 635 bps. On July 13, 2018, we increased the borrowing capacity of the Series 2015-VF5 variable notes to $225.0 million and extended the amortization date to December 15, 2019, with interest computed based on the lender’s cost of funds plus a margin of 105 to 250 bps. The increased capacity was used on July 16, 2018 to redeem the Series 2016-T1 term notes with an outstanding balance of $265.0 million and an amortization date of August 15, 2018. We also voluntarily terminated the Series 2014-VF4 variable notes on July 16, 2018.
(5)
Under the terms of the agreement, we must continue to borrow the full amount of the Series 2016-T2, 2018-T1 and 2018-T2 fixed-rate term notes until the amortization date. If there is insufficient eligible collateral to support the level of borrowing, the excess cash proceeds in an amount necessary to make up the deficit are not distributed to Ocwen but are held by the trustee, and interest expense continues to be based on the full amount of the outstanding notes. The Series 2016-T2, 2018-T1 and 2018-T2 term notes have a total combined borrowing capacity of $535.0 million. Rates on the individual classes of notes range from 2.72% to 4.53%. The Series 2016-T1 and Series 2017-T1 term notes were redeemed on July 16, 2018 and August 14, 2018, respectively. On August 15, 2018, we issued two $150.0 million fixed-rate term notes (Series 2018 T-1 and Series 2018-T2) with amortization dates of August 15, 2019 and August 17, 2020, respectively
(6)
We voluntarily terminated the Series 2014-VF1 variable notes on December 5, 2018. The maximum borrowing capacity under this facility was $55.0 million. There was a ceiling of 300 bps for 3ML in determining the interest rate for these variable rate notes. Rates on the individual notes were based on the lender’s cost of funds plus a margin of 235 to 475 bps.
(7)
On June 7, 2018, borrowing capacity was reduced from $110.0 million to $65.0 million with interest computed based on the lender’s cost of funds plus a margin of 180 to 450 bps. There is a ceiling of 300 bps for 3ML in determining the interest rate for these variable rate notes.
(8)
On January 23, 2018, we voluntarily terminated the Loan Series 2017-1 Notes.
Schedule of Financing Liabilities
Financing Liabilities
 
 
 
 
 
 
 
Outstanding Balance at December 31,
Borrowing Type
 
Collateral
 
Interest Rate
 
Maturity
 
2018
 
2017
HMBS-Related Borrowings, at fair value (1)
 
Loans held for investment
 
1ML + 260 bps
 
(1)
 
$
5,380,448

 
$
4,601,556

 
 
 
 
 
 
 
 
 
 
 
Other Financing Liabilities
 
 
 
 
 
 
 
 
 
 
MSRs pledged, at fair value
 
 
 
 
 
 
 
 
 
 
Original Rights to MSRs Agreements
 
MSRs
 
(2)
 
(2)
 
436,511

 
499,042

2017 Agreements and New RMSR Agreements
 
MSRs
 
(3)
 
(3)
 
138,854

 
9,249

PHH MSR Agreements
 
MSRs
 
(4)
 
(4)
 
457,491

 
—

 
 
 
 
 
 
 
 
1,032,856

 
508,291

Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (5)
 
MSRs
 
(5)
 
Feb. 2028
 
65,523

 
72,575

Financing liability - Owed to securitization investors, at fair value:
 
 
 
 
 
 
 
 
 
 
IndyMac Mortgage Loan Trust (INDX 2004-AR11) (6)
 
Loans held for investment
 
(6)
 
(6)
 
11,012

 
—

Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (6)
 
Loans held for investment
 
(6)
 
(6)
 
13,803

 
—

 
 
 
 
 
 
 
 
24,815

 
—

Advances pledged (7)
 
Advances on loans
 
(7)
 
(7)
 
4,419

 
12,652

 
 
 
 
 
 
 
 
1,127,613

 
593,518

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
6,508,061

 
$
5,195,074

(1)
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.
(2)
This financing liability 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.
(3)
This financing liability arose in connection with lump sum payments received upon transfer of legal title of the MSRs related to the Rights to MSRs transactions to NRZ in September 2017. In connection with the execution of the New RMSR Agreements in January 2018, we received a lump sum payment of $279.6 million as compensation for foregoing certain payments under the Original Rights to MSRs Agreements. 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. The expected maturity of the liability is April 30, 2020, the date through which we were scheduled to be the servicer on loans underlying the Rights to MSRs per the Original Rights to MSRs Agreements.
(4)
Represents a liability for sales of MSRs that are accounted for as a secured borrowing which we assumed in connection with the acquisition of PHH. Under this accounting treatment, the MSRs transferred to NRZ remain on the consolidated balance sheet and the proceeds from the sale are recognized as a secured liability. We elected to record the liability at fair value consistent with the related MSRs.
(5)
OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 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. 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 notes.
(6)
Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our unaudited consolidated financial statements, as more fully described in Note 3 — Securitizations and Variable Interest Entities. The holders of these certificates have no recourse against the assets of Ocwen. The certificates in the INDX 2004-AR11 Trust pay interest based on variable rates which are generally based on weighted average net mortgage rates and which range between 3.68% and 4.26% at December 31, 2018. The certificates in the RAST 2003-A11 Trust pay interest based on fixed rates ranging between 4.25% and 5.75% and a variable rate based on 1ML plus 0.45%. The maturity of the certificates occurs upon maturity of the loans held by the trust. The remaining loans in the INDX 2004-AR11 Trust and RAST 2003-A11 Trust have maturity dates extending through November 2034 and October 2033, respectively.
(7)
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. The effective interest rate is based on 1ML plus a margin of 450 bps.
Schedule of Other Secured Borrowings
Other Secured Borrowings
 
 
 
 
 
 
 
 
 
Outstanding Balance at December 31,
Borrowing Type
 
Collateral
 
Interest Rate
 
Termination / Maturity
 
Available Borrowing Capacity (1)
 
2018
 
2017
SSTL (2)
 
(2)
 
1-Month Euro-dollar rate + 500 bps with a Eurodollar floor of 100 bps (2)
 
Dec. 2020
 
$
—

 
$
231,500

 
$
298,251

 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage loan warehouse facilities
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase agreement (3)
 
Loans held for sale (LHFS)
 
1ML + 195 - 300 bps
 
Sep. 2019
 
25,307

 
74,693

 
8,221

Participation agreements (4)
 
LHFS
 
N/A
 
(4)
 
—

 
42,331

 
161,433

Mortgage warehouse agreement (5)
 
LHFS (reverse mortgages)
 
1ML + 275 bps; 1ML floor of 350 bps
 
Aug. 2019
 
—

 
8,009

 
32,042

Master repurchase agreement (6)
 
LHFS (forward and reverse mortgages)
 
1ML + 225 bps forward; 1ML + 275 bps reverse
 
Dec. 2019
 
169,320

 
30,680

 
54,086

Master repurchase agreement (7)
 
LHFS (reverse mortgages)
 
Prime + 0.0% (4.0% floor)
 
Jan. 2020
 
—

 
—

 
—

Master repurchase agreement (8)
 
N/A
 
1ML + 170bps
 
N/A
 
—

 
—

 
—

 
 
 
 
 
 
 
 
194,627

 
155,713

 
255,782

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
194,627

 
387,213

 
554,033

Unamortized debt issuance costs - SSTL
 
(3,098
)
 
(5,423
)
Discount - SSTL
 
(1,577
)
 
(2,760
)
 
 
 
 
 
 
 
 


 
$
382,538

 
$
545,850

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
5.49
%
 
5.22
%
(1)
Available borrowing capacity for our mortgage loan warehouse facilities 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, $62.4 million could be used at December 31, 2018 based on the amount of eligible collateral that could be pledged.
(2)
Under the terms of the Amended and Restated Senior Secured Term Loan Facility Agreement with an original borrowing capacity of $335.0 million, 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 principal payments of $4.2 million on the SSTL.
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) 1ML, plus a margin of 4.00% and subject to a base rate floor of 2.00% or (b) 1ML, plus a margin of 5.00% and subject to a 1ML floor of 1.00%. To date we have elected option (b) to determine the interest rate.
(3)
On September 28, 2018, we renewed this facility through September 27, 2019. In connection with the renewal, we increased the maximum borrowing amount from $137.5 million to $175.0 million, of which $100.0 million is available on a committed basis and the remainder is available at the discretion of the lender.
(4)
Under these participation agreements, the lender provides financing for a combined total of $250.0 million at the discretion of the lender. The participation agreements allow 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 May 31, 2018, we renewed these facilities through April 30, 2019 ($175.0 million) and May 31, 2019 ($75.0 million).
(5)
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. On August 15, 2018, we renewed these facilities through August 15, 2019.
(6)
On December 7, 2018, we renewed this facility through December 6, 2019. In connection with the renewal, we increased the maximum borrowing amount from $150.0 million to $250.0 million, of which $200.0 million is available on a committed basis and the remainder is available at the discretion of the lender. The 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.
(7)
Under this agreement, the lender provides financing for up to $50.0 million at the discretion of the lender. On January 23, 2019, we renewed this facility through January 22, 2020.
(8)
This agreement was originally entered into by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. The lender provides financing for up to $200.0 million at the discretion of the lender. The agreement has no stated maturity date.
Schedule of Senior Notes
Senior Notes

 
 
 
 
Outstanding Balance at December 31,
 
Interest Rate
 
Maturity
 
2018
 
2017
Senior unsecured notes:
 
 
 
 
 
 
 
Ocwen (1)
6.625%
 
May 2019
 
$
—

 
$
3,122

PHH (2)
7.375%
 
Sep. 2019
 
97,521

 
—

PHH (2)
6.375%
 
Aug. 2021
 
21,543

 
—

 
 
 
 
 
119,064

 
3,122

 
 
 
 
 
 
 
 
Senior secured notes (3)
8.375%
 
Nov. 2022
 
330,878

 
346,878

 
 
 
 
 
449,942

 
350,000

Unamortized debt issuance costs
 
(2,075
)
 
(2,662
)
Fair value adjustments (2)
 
 
 
 
860

 
—

 
 
 
 
 
$
448,727

 
$
347,338

(1)
On December 21, 2018, we redeemed all of the remaining Senior unsecured notes due in May 2019, at a redemption price of 100.0% of the outstanding principal balance plus accrued and unpaid interest.
(2)
These notes were originally issued by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. We recorded the notes at their respective fair values on the date of acquisition, and we are amortizing the resulting fair value adjustments over the remaining term of the notes. We have the option to redeem the notes due in August 2021, in whole or in part, on or after January 1, 2019 at a redemption price equal to 100.0% of the principal amount plus any accrued and unpaid interest.
(3)
In 2016, OLS completed a debt-for-debt exchange offer whereby OLS issued $346.9 million aggregate principal amount of 8.375% Senior Secured Second Lien Notes that mature November 15, 2022 (Senior Secured Notes) in exchange for $346.9 million aggregate principal amount (or 99.1%) of Ocwen’s Senior Unsecured Notes. Interest is payable semiannually on each May 15 and November 15, and commenced on May 15, 2017. In December 2018, Ocwen repurchased $16.0 million of the Senior Secured Notes at a price of 96.0%.
Schedule of Assets Held as Collateral Related to Secured Borrowings
Our assets held as collateral related to secured borrowings, committed under sale or other contractual obligations and which may be subject to secured liens under the SSTL and Senior Secured Notes are as follows at December 31, 2018:
 
 
 
Collateral for Secured Borrowings
 
 
 
 
 
Total Assets
 
Match Funded Liabilities
 
Financing Liabilities
 
Mortgage Loan Warehouse Facilities
 
Sales and Other Commitments (1)
 
Other (2)
Cash
$
329,132

 
$
—

 
$
—

 
$
—

 
$
—

 
$
329,132

Restricted cash
67,878

 
20,968

 
—

 
5,658

 
41,252

 
—

Mortgage servicing rights
1,457,149

 
—

 
985,576

 
—

 
9,867

 
461,706

Advances, net
249,382

 
—

 
11,162

 
—

 
31,216

 
207,004

Match funded assets
937,294

 
937,294

 
—

 
—

 
—

 
—

Loans held for sale
242,622

 
—

 
—

 
143,704

 
—

 
98,918

Loans held for investment
5,498,719

 
—

 
5,406,968

 
33,567

 
—

 
58,184

Receivables, net
198,262

 
—

 
—

 
—

 
—

 
198,262

Premises and equipment, net
33,417

 
—

 
—

 
—

 
—

 
33,417

Other assets
379,567

 
—

 
—

 
—

 
320,032

 
59,535

Assets related to discontinued operations
794

 
—

 
—

 
—

 
—

 
794

Total Assets
$
9,394,216

 
$
958,262

 
$
6,403,706

 
$
182,929

 
$
402,367

 
$
1,446,952

(1)
Sales and Other Commitments include MSRs and related advances committed under sale agreements, Restricted cash and deposits held as collateral to support certain contractual obligations, and Contingent loan repurchase assets related to the Ginnie Mae early buyout program for which a corresponding liability is recognized in Other liabilities.
(2)
The borrowings under the SSTL are secured by a first priority security interest in substantially all of the assets of Ocwen, OLS, PHH, PMC and the other guarantors thereunder, excluding among other things, 35% of the voting capital stock of foreign subsidiaries, securitization assets and equity interests of securitization entities, assets securing permitted funding indebtedness and non-recourse indebtedness, REO assets, Agency MSRs with respect to which an acknowledgment agreement acknowledging such security interest has not been obtained, as well as other customary carve-outs (collectively, the Collateral). The Collateral is subject to certain permitted liens set forth under the SSTL and related security agreement. The Senior Secured Notes are guaranteed by Ocwen and the other guarantors that guarantee the SSTL, and the borrowings under the Senior Secured Notes are secured by a second priority security interest in the Collateral. Security interests securing borrowings under the SSTL and Senior Secured Notes may include amounts presented in Other as well as certain assets presented in Collateral for Secured Borrowings and Sales and Other Commitments, subject to permitted liens as defined in the applicable debt documents. The amounts presented here may differ in their calculation and are not intended to represent amounts that may be used in connection with covenants under the applicable debt documents.
Schedule of Aggregate Long-term Borrowings
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)
 
 
 
 
2019
 
2020
 
2021
 
2022
 
Total
Balance
 
Fair
Value
Match funded liabilities
$
628,284

 
$
150,000

 
$
—

 
$
—

 
$
778,284

 
$
776,485

Other secured borrowings
172,463

 
214,750

 

 
—

 
387,213

 
383,162

Senior notes
97,521

 
—

 
21,543

 
330,878

 
449,942

 
426,147

 
$
898,268

 
$
364,750

 
$
21,543

 
$
330,878

 
$
1,615,439

 
$
1,585,794

(1)
Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment.
(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 recognized in connection with asset sales transactions accounted for as financings, including $1.0 billion recorded in connection with sales of Rights to MSRs and MSRs and $5.4 billion recorded in connection with the securitizations of HMBS. These financing liabilities have no contractual maturity and are amortized over the life of the underlying assets.
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