XML 61 R40.htm IDEA: XBRL DOCUMENT v3.19.2

Mortgage Servicing (Tables)

6 Months Ended

Jun. 30, 2019

Transfers and Servicing [Abstract]

Schedule of Activity Related to MSRs - Amortization Method

MSRs – Amortization Method	Six Months Ended June 30,
	2019				2018
Beginning balance	$	—			$	336,882
Fair value election - transfer of MSRs carried at fair value (1)	—				(361,670		)
Decrease in impairment valuation allowance (1) (2)	—				24,788
Ending balance	$	—			$	—

(1) Effective January 1, 2018, we elected fair value accounting for our MSRs previously accounted for using the amortization method, which included Agency MSRs and government-insured MSRs. This irrevocable election applies to all subsequently acquired or originated servicing assets and liabilities that have characteristics consistent with each of these classes. We recorded a cumulative-effect adjustment of $82.0 million to retained earnings as of January 1, 2018 to reflect the excess of the fair value of the Agency MSRs over their carrying amount. We also recognized the tax effect of this adjustment through an increase in retained earnings of $6.8 million and a deferred tax asset for the same amount. However, we established a full valuation allowance on the resulting deferred tax asset through a reduction in retained earnings. The government-insured MSRs were impaired by $24.8 million at December 31, 2017; therefore, these MSRs were already effectively carried at fair value.

(2) Impairment valuation allowance balance of $24.8 million was reclassified to reduce the carrying value of the related MSRs on January 1, 2018 in connection with our fair value election.

Schedule of Activity Related to MSRs - Fair Value Measurement Method

MSRs – Fair Value Measurement Method	Six Months Ended June 30,
	2019												2018
	Agency				Non-Agency				Total				Agency				Non-Agency				Total
Beginning balance	$	865,587			$	591,562			$	1,457,149			$	11,960			$	660,002			$	671,962
Fair value election - transfer from MSRs carried at amortized cost	—				—				—				336,882				—				336,882
Cumulative effect of fair value election	—				—				—				82,043				—				82,043
Sales and other transfers	(29		)		(541		)		(570		)		—				(155		)		(155		)
Additions:
Recognized on the sale of residential mortgage loans	2,698				—				2,698				5,885				—				5,885
Purchase of MSRs	114,302				87				114,389				—				—				—
Servicing transfers and adjustments	—				(4,767		)		(4,767		)		—				(2,375		)		(2,375		)
Changes in fair value (1):
Changes in valuation inputs or other assumptions	(171,676		)		12,583				(159,093		)		20,460				4,989				25,449
Realization of expected future cash flows and other changes	(65,147		)		(32,026		)		(97,173		)		(29,633		)		(46,063		)		(75,696		)
Ending balance	$	745,735			$	566,898			$	1,312,633			$	427,597			$	616,398			$	1,043,995

(1) Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.

Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced

The following table presents the composition of our residential primary servicing and subservicing portfolios as measured by UPB, including foreclosed real estate and small-balance commercial loans. The UPB amounts in the table below are not included on our unaudited consolidated balance sheets.

UPB at June 30, 2019
Servicing	$	80,141,128
Subservicing	27,432,019
NRZ	121,709,898
	$	229,283,045
UPB at December 31, 2018
Servicing	$	72,378,693
Subservicing	53,104,560
NRZ	130,517,237
	$	256,000,490
UPB at June 30, 2018
Servicing	$	70,796,834
Subservicing	1,600,289
NRZ	94,729,891
	$	167,127,014

Schedule of Components of Servicing and Subservicing Fees

Servicing Revenue	Three Months Ended June 30,								Six Months Ended June 30,
	2019				2018				2019				2018
Loan servicing and subservicing fees
Servicing	$	54,609			$	55,783			$	107,038			$	114,779
Subservicing	4,203				871				10,410				1,786
NRZ	141,091				126,712				296,938				253,729
	199,903				183,366				414,386				370,294
Late charges	13,242				15,315				28,682				29,904
Custodial accounts (float earnings)	13,341				8,461				25,275				15,724
Loan collection fees	3,401				4,767				7,750				9,785
Home Affordable Modification Program (HAMP) fees (1)	1,565				4,153				3,342				8,256
Other, net	7,730				6,165				15,610				10,402
	$	239,182			$	222,227			$	495,045			$	444,365

(1) The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification.

X

- Definition

Tabular disclosure of loans serviced by property type.

+ References

No definition available.

+ Details

Name:	ocn_ScheduleOfLoansServicedByPropertyTypeTableTextBlock
Namespace Prefix:	ocn_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of fees generated during the reporting period for servicing subservicing of assets.

+ References

No definition available.

+ Details

Name:	ocn_ScheduleOfServicingAndSubservicingFeesTableTextBlock
Namespace Prefix:	ocn_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=68078379&loc=d3e122739-111746

+ Details

Name:	us-gaap_ScheduleOfServicingAssetsAtAmortizedValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 3
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=68078379&loc=d3e122625-111746

+ Details

Name:	us-gaap_ScheduleOfServicingAssetsAtFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_TransfersAndServicingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration