Rights to MSRs (Tables)

3 Months Ended

Mar. 31, 2020

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	March 31, 2020		December 31, 2019
MSRs, at fair value (1)	$	591,705	$	915,148

Due from NRZ (Receivables)
Sales and transfers of MSRs (2)	$	22,631	$	24,167
Subservicing fees and reimbursable expenses	1,601		9,197
	$	24,232	$	33,364

Due to NRZ (Other liabilities)	$	98,555	$	63,596

Financing liability - MSRs pledged, at fair value
Original Rights to MSRs Agreements	$	591,705	$	603,046
2017 Agreements and New RMSR Agreements (3)	9,979		35,445
PMC MSR Agreements (1)	—		312,102
	$	601,684	$	950,593


(1)	On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC MSR Agreements. While the MSRs and the Rights to MSRs associated with these loans are derecognized from our balance sheet at March 31, 2020, we continue to service these loans until deboarding, and account for them as a subservicing relationship.


(2)	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.


(3)	$10.0 million of income is expected to be recognized for the quarter ended June 30, 2020 as a reduction in the financing liability based on the remaining term of the original agreements.



	Three Months Ended March 31,
	2020			2019
Statements of Operations
Servicing fees collected on behalf of NRZ (1)	$	119,669		$	155,847
Less: Subservicing fee retained by Ocwen (1)	29,331			37,407
Net servicing fees remitted to NRZ	90,338			118,440

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements	(9,120		)	121
2017 Agreements and New RMSR Agreements	(903		)	(6,980		)
PMC MSR Agreements (1)	40,720			33,096
	30,697			26,237
Runoff and settlement:
Original Rights to MSRs Agreements	17,793			9,035
2017 Agreements and New RMSR Agreements	25,142			23,320
PMC MSR Agreements (1)	7,492			17,774
	50,427			50,129

Other	2,620			(1,882		)

Pledged MSR liability expense	$	6,594		$	43,956

(1)

On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC MSR Agreements. As the MSRs and the Rights to MSRs associated with these loans were derecognized from our consolidated balance sheet on February 20, 2020, we did not report the associated servicing fees collected on behalf of, and remitted to NRZ, or the change in fair value, runoff and settlement of the financing liability subsequent to February 20, 2020.

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, 2019	$	603,046		$	35,445		$	312,102		$	950,593
Additions	—			—			—			—
Receipt of lump-sum cash payments	—			—			—			—
Sales	—			—			(226		)	(226		)
Changes in fair value:
Original Rights to MSRs Agreements	9,120			—			—			9,120
2017 Agreements and New RMSR Agreements	—			903			—			903
PMC MSR Agreements	—			—			(40,720		)	(40,720		)
Runoff and settlement:
Original Rights to MSRs Agreements	(17,793		)	—			—			(17,793		)
2017 Agreements and New RMSR Agreements	—			(25,142		)	—			(25,142		)
PMC MSR Agreements	—			—			(7,492		)	(7,492		)
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements	—			—			(263,664		)	(263,664		)
Calls (1):
Original Rights to MSRs Agreements	(2,668		)	—			—			(2,668		)
2017 Agreements and New RMSR Agreements	—			(1,227		)	—			(1,227		)
Balance at March 31, 2020	$	591,705		$	9,979		$	—		$	601,684



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
Purchases	—			—			577			577
Changes in fair value:
Original Rights to MSRs Agreements	(121		)	—			—			(121		)
2017 Agreements and New RMSR Agreements	—			6,980			—			6,980
PHH MSR Agreements	—			—			(33,096		)	(33,096		)
Runoff and settlement:
Original Rights to MSRs Agreements	(9,035		)	—			—			(9,035		)
2017 Agreements and New RMSR Agreements	—			(23,320		)	—			(23,320		)
PHH MSR Agreements	—			—			(17,774		)	(17,774		)
Calls (1):
Original Rights to MSRs Agreements	(3,269		)	—			—			(3,269		)
2017 Agreements and New RMSR Agreements	—			(2,582		)	—			(2,582		)
Balance at March 31, 2019	$	424,086		$	119,932		$	407,198		$	951,216


(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