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Business Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Schedule of Purchase Price Allocation of Assets Acquired and Liabilities Assumed
Purchase Price Allocation
October 4, 2018
 
Adjustments
 
Revised
Cash
$
423,088

 
$
—

 
$
423,088

Restricted cash
38,813

 
—

 
38,813

MSRs
518,127

 
—

 
518,127

Advances, net
96,163

 
—

 
96,163

Loans held for sale
42,324

 
358

 
42,682

Receivables, net
46,838

 
(96
)
 
46,742

Premises and equipment, net
15,203

 
—

 
15,203

REO
3,289

 
—

 
3,289

Other assets
6,293

 
—

 
6,293

Assets related to discontinued operations
2,017

 
—

 
2,017

Financing liabilities (MSRs pledged, at fair value)
(481,020
)
 
—

 
(481,020
)
Other secured borrowings, net
(27,594
)
 
—

 
(27,594
)
Senior notes, net (Senior unsecured notes)
(120,624
)
 
—

 
(120,624
)
Accrued legal fees and settlements
(9,960
)
 
—

 
(9,960
)
Other accrued expenses
(36,889
)
 
—

 
(36,889
)
Loan repurchase and indemnification liability
(27,736
)
 
—

 
(27,736
)
Unfunded pension liability
(9,815
)
 
—

 
(9,815
)
Other liabilities
(34,131
)
 
(643
)
 
(34,774
)
Liabilities related to discontinued operations
(21,954
)
 
—

 
(21,954
)
Total identifiable net assets
422,432

 
(381
)
 
422,051

Total consideration paid to seller
(358,396
)
 
—

 
(358,396
)
Bargain purchase gain
$
64,036

 
$
(381
)
 
$
63,655
Schedule of Supplemental Pro forma Information
The table below presents supplemental pro forma information for Ocwen for the three and six months ended June 30, 2018 as if the PHH acquisition occurred on January 1, 2017. Pro forma adjustments include the following:
Description
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
Increase in MSR valuation adjustments, net for acquired MSRs to conform the accounting for MSRs to the valuation policies of Ocwen
$
6,829

 
$
1,082

Adjust interest expense for a total net decline (1)
9,879

 
12,216

Report Ocwen and PHH acquisition-related charges for professional services as if they had been incurred in 2017 rather than 2018
5,481

 
9,164

Total net increase in revenue (2)
47,552

 
81,460

Adjust depreciation expense to amortize internally developed software acquired from PHH on a straight-line basis based on a useful life of three years
245

 
490

Income tax benefit based on management’s estimate of the blended applicable statutory tax rates and observing the continued need for a valuation allowance (3)
580

 
1,458

(1)
Primarily pertains to fair value adjustments of $10.1 million and $12.7 million for the three and six months ended June 30, 2018, respectively, related to the assumed MSR secured liability using valuation assumptions consistent with Ocwen’s methodology.
(2)
Primarily pertains to an increase to revenue of $42.6 million and $87.4 million for the three and six months ended June 30, 2018, respectively, for the gross-up of PHH MSRs sold and accounted for as a secured borrowing. The offset of the remaining adjustments are expenses, interest income and interest expense, with no net effect on earnings.
(3)
The net income tax benefit recorded as a result of pro forma adjustments represents lower current federal tax under the new base erosion and anti-abuse tax (BEAT) provision of the 2017 Tax Cuts and Jobs Act (Tax Act) assuming Ocwen and PHH would file a consolidated federal tax return beginning January 1, 2017. The pro forma tax adjustments contemplate the effects of the Tax Act.
Schedule of Pro Forma Results of Operations
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
Revenues
$
335,846

 
$
680,368

Net loss from continuing operations
(57,225
)
 
(68,426
)