Rights to MSRs (Tables)

6 Months Ended

Jun. 30, 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	June 30, 2020		December 31, 2019
MSRs, at fair value (1)	$	582,558	$	915,148

Due from NRZ (Receivables)
Sales and transfers of MSRs (2)	$	—	$	24,167
Subservicing fees and reimbursable expenses	1,160		9,197
	$	1,160	$	33,364

Due to NRZ (Other liabilities)	$	106,295	$	63,596

Financing liability - MSRs pledged, at fair value
Original Rights to MSRs Agreements	$	582,558	$	603,046
2017 Agreements and New RMSR Agreements (3)	—		35,445
PMC MSR Agreements (1)	—		312,102
	$	582,558	$	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 June 30, 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 Ocwen’s acquisition of PHH.


(3)	Income was recognized through April 30, 2020 as a reduction in the financing liability based on the term of the original agreements.



	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Statements of Operations
Servicing fees collected on behalf of NRZ (1)	$	88,405	$	141,091		$	208,073		$	296,938
Less: Subservicing fee retained by Ocwen (1)	25,523		35,905			54,855			73,312
Net servicing fees remitted to NRZ	62,882		105,186			153,218			223,626

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements	1,019		(1,671		)	(8,101		)	(1,550		)
2017 Agreements and New RMSR Agreements	—		4,634			(903		)	(2,346		)
PMC MSR Agreements (1)	—		47,782			40,720			80,878
	1,019		50,745			31,716			76,982
Runoff and settlement:
Original Rights to MSRs Agreements	8,128		11,412			25,921			20,447
2017 Agreements and New RMSR Agreements	9,979		26,062			35,121			49,382
PMC MSR Agreements (1)	—		15,814			7,492			33,588
	18,107		53,288			68,534			103,417

Other	2,070		(1,777		)	4,688			(3,659		)

Pledged MSR liability expense	$	41,686	$	2,930		$	48,280		$	46,886


(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 do 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



	Six Months Ended June 30, 2020
Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			PMC MSR Agreements			Total
Beginning Balance	$	603,046		$	35,445		$	312,102		$	950,593
Sales	—			—			(226		)	(226		)
Changes in fair value:
Original Rights to MSRs Agreements	8,101			—			—			8,101
2017 Agreements and New RMSR Agreements	—			903			—			903
PMC MSR Agreements	—			—			(40,720		)	(40,720		)
Runoff and settlement:
Original Rights to MSRs Agreements	(25,921		)	—			—			(25,921		)
2017 Agreements and New RMSR Agreements	—			(35,121		)	—			(35,121		)
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 June 30, 2020	$	582,558		$	—		$	—		$	582,558



	Six Months Ended June 30, 2019
Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements			2017 Agreements and New RMSR Agreements			PMC MSR Agreements			Total
Beginning Balance	$	436,511		$	138,854		$	457,491		$	1,032,856
Purchases	—			—			876			876
Changes in fair value:
Original Rights to MSRs Agreements	1,550			—			—			1,550
2017 Agreements and New RMSR Agreements	—			2,346			—			2,346
PHH MSR Agreements	—			—			(80,878		)	(80,878		)
Runoff and settlement:
Original Rights to MSRs Agreements	(20,447		)	—			—			(20,447		)
2017 Agreements and New RMSR Agreements	—			(49,382		)	—			(49,382		)
PHH MSR Agreements	—			—			(33,588		)	(33,588		)
Calls (1):
Original Rights to MSRs Agreements	(4,705		)	—			—			(4,705		)
2017 Agreements and New RMSR Agreements	—			(3,715		)	—			(3,715		)
Balance at June 30, 2019	$	412,909		$	88,103		$	343,901		$	844,913

(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 securitizatio