XML 140 R40.htm IDEA: XBRL DOCUMENT v3.19.3
Rights to MSRs (Tables)
9 Months Ended
Sep. 30, 2019
Transfers and Servicing [Abstract]  
Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements
The following tables present selected assets and liabilities recorded on our unaudited consolidated balance sheets as well as the impacts to our unaudited consolidated statements of operations in connection with our NRZ agreements.

Balance Sheets
September 30, 2019
 
December 31, 2018
MSRs, at fair value
$
925,507

 
$
894,002

 
 
 
 
Due from NRZ (Receivables)
 
 
 
Sales and transfers of MSRs (1)
$
25,531

 
$
23,757

Advance funding, subservicing fees and reimbursable expenses
7,615

 
30,845

 
$
33,146

 
$
54,602

 
 
 
 
Due to NRZ (Other liabilities)
$
63,304

 
$
53,001

 
 
 
 
Financing liability - MSRs pledged, at fair value
 
 
 
Original Rights to MSRs Agreements
$
627,287

 
$
436,511

2017 Agreements and New RMSR Agreements (2)
61,445

 
138,854

PMC MSR Agreements
298,220

 
457,491

 
$
986,952

 
$
1,032,856

(1)
Balance represents the holdback of proceeds from PMC MSR sales and transfers to address indemnification claims and mortgage loan document deficiencies. These sales were executed by PMC prior to the acquisition date.
(2)
$104.7 million and $34.1 million is expected to be recognized as a reduction in the financing liability and interest expense for the years ended December 31, 2019 and 2020, respectively.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Statements of Operations
 
 
 
 
 
 
 
Servicing fees collected on behalf of NRZ
$
146,567

 
$
120,593

 
$
443,505

 
$
374,322

Less: Subservicing fee retained by Ocwen
35,462

 
33,335

 
108,774

 
101,997

Net servicing fees remitted to NRZ
111,105

 
87,258

 
334,731

 
272,325

 
 
 
 
 
 
 
 
Less: Reduction (increase) in financing liability
 
 
 
 
 
 
 
Changes in fair value:
 
 
 
 
 
 
 
Original Rights to MSRs Agreements
(228,644
)
 
4,844

 
(230,193
)
 
(3,938
)
2017 Agreements and New RMSR Agreements
(2,216
)
 
(2,163
)
 
(4,562
)
 
15,261

PMC MSR Agreements
30,156

 

 
111,034

 

 
(200,704
)
 
2,681

 
(123,721
)
 
11,323

Runoff and settlement:
 
 
 
 
 
 
 
Original Rights to MSRs Agreements
11,170

 
15,896

 
31,617

 
50,739

2017 Agreements and New RMSR Agreements
26,705

 
33,724

 
76,087

 
103,390

PMC MSR Agreements
15,881

 

 
49,469

 

 
53,756

 
49,620

 
157,173

 
154,129

 
 
 
 
 
 
 
 
Other
1,637

 
(1,760
)
 
(2,022
)
 
(4,383
)
 
 
 
 
 
 
 
 
Interest expense
$
256,416

 
$
36,717

 
$
303,301

 
$
111,256

Schedule of Activity Related to Rights to Mortgage Servicing Rights
Financing Liability - MSRs Pledged
Original Rights to MSRs Agreements
 
2017 Agreements and New RMSR Agreements
 
PMC MSR Agreements
 
Total
Balance at December 31, 2018
$
436,511

 
$
138,854

 
$
457,491

 
$
1,032,856

Additions

 

 
1,221

 
1,221

Sales

 

 
11

 
11

Changes in fair value:
 
 
 
 
 
 

Original Rights to MSRs Agreements
230,193

 

 

 
230,193

2017 Agreements and New RMSR Agreements

 
4,562

 

 
4,562

PMC MSR Agreements

 

 
(111,034
)
 
(111,034
)
Runoff and settlement:
 
 
 
 
 
 

Original Rights to MSRs Agreements
(31,617
)
 

 

 
(31,617
)
2017 Agreements and New RMSR Agreements

 
(76,087
)
 

 
(76,087
)
PMC MSR Agreements

 

 
(49,469
)
 
(49,469
)
Calls (1):
 
 
 
 
 
 

Original Rights to MSRs Agreements
(7,800
)
 

 

 
(7,800
)
2017 Agreements and New RMSR Agreements

 
(5,884
)
 

 
(5,884
)
Balance at September 30, 2019
$
627,287

 
$
61,445

 
$
298,220

 
$
986,952

Financing Liability - MSRs Pledged
Original Rights to MSRs Agreements
 
2017 Agreements and New RMSR Agreements
 
Total
Balance at December 31, 2017
$
499,042

 
$
9,249

 
$
508,291

Receipt of lump-sum cash payments

 
279,586

 
279,586

Changes in fair value:
 
 
 
 
 
Original Rights to MSRs Agreements
3,938

 

 
3,938

2017 Agreements and New RMSR Agreements

 
(15,261
)
 
(15,261
)
Runoff and settlement:
 
 
 
 
 
Original Rights to MSRs Agreements
(50,739
)
 

 
(50,739
)
2017 Agreements and New RMSR Agreements

 
(103,390
)
 
(103,390
)
Calls (1):
 
 
 
 
 
Original Rights to MSRs Agreements
(1,396
)
 

 
(1,396
)
2017 Agreements and New RMSR Agreements

 
(830
)
 
(830
)
Balance at September 30, 2018
$
450,845

 
$
169,354

 
$
620,199

(1)
Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements. Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization.