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Employee Compensation and Benefit Plans (Tables) | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Schedule of Change in Benefit Obligation, Plan Assets and Funded Status for Pension Plans | The following table shows the total change in the benefit obligation, plan assets and funded status for the pension plans:
| December 31, |  |  |  |
| 2020 |  | 2019 |  |  |  |
Benefit obligation | $ | 58,965 |  |  | $ | 54,603 |  |  |  |  |
Fair value of plan assets | 46,303 |  |  | 41,220 |  |  |  |  |
Unfunded status recognized in Other liabilities | $ | (12,662) |  |  | $ | (13,383) |  |  |  |  |
Amounts recognized in Accumulated other comprehensive income | $ | 8,484 |  |  | $ | 6,864 |  |  |  |  |
Change in Benefit Obligation, Plan Assets and Funded Status for Gratuity Plan | The following table shows the total change in the benefit obligation, plan assets and funded status for the Gratuity Plan:
| December 31, |  |  |  |
| 2020 |  | 2019 |  |  |  |
Benefit obligation | $ | 6,091 |  |  | $ | 5,370 |  |  |  |  |
Fair value of plan assets | 40 |  |  | 39 |  |  |  |  |
Unfunded status recognized in Other liabilities | $ | (6,051) |  |  | $ | (5,331) |  |  |  |  |
Schedule of Stock Options Vesting | Outstanding equity awards granted under the 2007 Equity Plan and the 2017 Equity Plan had the following characteristics in common:
Type of Award |  | Percent of Total Equity Award |  | Vesting Period
2011 - 2014 Awards: |  |  |  |
Options: |  |  |  |
Servicing Condition - Time-based |  | 43 | % |  | Ratably over four years (25% on each of the four anniversaries of the grant date)
Market Condition: |  |  |  |
Market performance-based |  | 50 |  |  | Over three years beginning with 25% vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition)
Extraordinary market performance-based |  | 7 |  |  | Over three years beginning with 25% vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition)
Total Award |  | 100 | % |  |
2015 - 2016 Awards: |  |  |  |
Options: |  |  |  |
Service Condition - Time-based |  | 100 | % |  | Ratably over four years (25% vesting on each of the first four anniversaries of the grant date.)
2017 - 2020 Awards: |  |  |  |
Options: |  |  |  |
Service Condition - Time-based |  | 9 | % |  | Ratably over three years (1/3 vesting on each of the first three anniversaries of the grant date).
Stock Units: |  |  |  |
Service Condition - Time-based |  | 47 |  |  | Over three years with 1/3 vesting on each of the first three anniversaries of the grant date.
Market Condition: |  |  |  |
Time-based vesting schedule and Market performance-based vesting date |  | 18 |  |  | Vest over four years with 25% vesting on each of the four anniversaries of the grant date. However, none are considered vested until the first trading day (if any) on or before the 4 th anniversary of the award date on which the average stock price equals or exceeds the price set in the individual award agreement, at which time all units that have met their time-based vesting schedule vest immediately with the remainder vesting in accordance with their time-based schedule.
Time-based vesting schedule and Market performance-based vesting date |  | 26 |  |  | Cliff-vest 100% after three years. Vesting of units credited based on Total Shareholder Return (TSR) for any performance period is subject to continued service through the third anniversary of the grant. There is no interim or ratable vesting. The number of performance-based awards that will vest is determined by Ocwen’s TSR, either absolute or relative to Ocwen’s compensation peer group, during each performance period.
Total Award |  | 100 | % |  |
Schedule of Stock Option Activity |
| Years Ended December 31,
Stock Options | 2020 |  | 2019 |  | 2018
| Number of Options |  | Weighted Average Exercise Price |  | Number of Options |  | Weighted Average Exercise Price |  | Number of Options |  | Weighted Average Exercise Price
Outstanding at beginning of year | 131,962 |  |  | $ | 282.30 |  |  | 139,507 |  |  | $ | 288.30 |  |  | 447,244 |  |  | $ | 149.55 |
Granted (1) | — |  |  | — |  |  | 3,427 |  |  | 31.20 |  |  | 23,226 |  |  | 54.90 |
Exercised | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Forfeited / Expired (2) | (7,096) |  |  | 423.80 |  |  | (10,972) |  |  | 280.35 |  |  | (330,963) |  |  | 84.30 |
Outstanding at end of year (3)(4) | 124,866 |  |  | $ | 274.30 |  |  | 131,962 |  |  | $ | 282.30 |  |  | 139,507 |  |  | $ | 288.30 |
Exercisable at end of year (3)(4)(5) | 110,484 |  |  | $ | 283.08 |  |  | 105,384 |  |  | $ | 302.40 |  |  | 101,336 |  |  | $ | 319.35 |
(1)Stock options granted in 2019 include 2,212 options awarded to Ocwen’s Chief Financial Officer at a strike price of $32.55 equal to the closing price of our common stock on the effective date of her employment. Stock options granted in 2018 include 17,799 options awarded to Ocwen’s current Chief Executive Officer (CEO) at an exercise price of $61.80 equal to the closing price of our common stock on the effective date of his employment, which was the closing date of the PHH acquisition. (2)Includes 0 and 4,913 options which expired unexercised in 2020 and 2019, because their exercise price was greater than the market price of Ocwen’s stock. (3)At December 31, 2020, 5,167 options with a market condition for vesting based on an average common stock trading price of $484.19, had not met their performance criteria. Outstanding and exercisable stock options at December 31, 2020 have a net aggregate intrinsic value of $0. A total of 51,563 market-based options were outstanding at December 31, 2020, of which 46,396 were exercisable. (4)At December 31, 2020, the weighted average remaining contractual term of options outstanding and options exercisable was 3.06 years and 2.66 years, respectively. (5)The total fair value of stock options that vested and became exercisable during 2020, 2019 and 2018, based on grant-date fair value, was $0.3 million, $0.6 million and $0.6 million, respectively.
Schedule of Stock Unit Activity |
| Years Ended December 31,
Stock Units - Equity Awards | 2020 |  | 2019 |  | 2018
| Number of Stock Units |  | Weighted Average Grant Date Fair Value |  | Number of Stock Units |  | Weighted Average Grant Date Fair Value |  | Number of Stock Units |  | Weighted Average Grant Date Fair Value
Unvested at beginning of year | 177,275 |  |  | $ | 39.45 |  |  | 196,453 |  |  | $ | 56.25 |  |  | 183,595 |  |  | $ | 55.35 |
Granted (1)(2) | 150,000 |  |  | 8.78 |  |  | 83,797 |  |  | 30.00 |  |  | 120,625 |  |  | 53.55 |
Vested (3)(4) | (62,954) |  |  | 42.25 |  |  | (75,846) |  |  | 46.20 |  |  | (53,124) |  |  | 41.70 |
Forfeited/Cancelled (1) | (2,674) |  |  | 26.85 |  |  | (27,129) |  |  | 143.70 |  |  | (54,642) |  |  | 68.55 |
Unvested at end of year (5)(6) | 261,647 |  |  | $ | 21.74 |  |  | 177,275 |  |  | $ | 39.45 |  |  | 196,453 |  |  | $ | 56.25 |
(1)Upon the resignation of Ocwen’s former CEO on June 30, 2018, 25,168 unvested stock units which would have been forfeited immediately were modified to allow continued vesting in accordance with the original terms. This had the equivalent effect of canceling the original award and granting a new award. (2)Stock units granted in 2020 and 2019 include 150,000 and 75,377 units, respectively, granted to Ocwen’s CEO under the new long-term incentive (LTI) program described below. Stock units granted in 2018 include 65,534 units granted to Ocwen’s current CEO on the effective date of his employment, which was the closing date of the PHH acquisition. (3)The total intrinsic value of stock units vested, which is defined as the market value of the stock on the date of vesting, was $1.0 million, $2.1 million and $3.3 million for 2020, 2019 and 2018, respectively. (4)The total fair value of the stock units that vested during 2020, 2019 and 2018, based on grant-date fair value, was $2.7 million, $3.5 million and $2.2 million, respectively. (5)Excluding the 125,395 market-based stock awards that have not met their performance criteria, the net aggregate intrinsic value of stock awards outstanding at December 31, 2020 was $3.9 million. At December 31, 2020, 2,666, 6,201 and 3,840 stock units with a market condition for vesting based on an average common stock trading price of $175.80, $87.00 and $65.10, respectively, as well as 37,688 stock units requiring an average common stock trading price of $38.34 to vest a minimum of 50% of units, had not yet met the market condition (and time-vesting requirements, where applicable). The performance for 75,000 stock units is measured based on TSR relative to Ocwen’s compensation peer group TSR over the four performance periods. (6)At December 31, 2020, the weighted average remaining contractual term of share units outstanding was 1.4 years.
Stock Units Liability Awards |
| Years Ended December 31,
Stock Units - Liability Awards | 2020 |  | 2019
Unvested units at beginning of year | 243,441 |  |  | — |
Granted | 601,787 |  |  | 251,076 |
Vested | (21,909) |  |  | — |
Forfeited/Cancelled | (94,954) |  |  | (7,635) |
Conversion of fractional stock units on reverse stock split | 8 |  |  | — |
Unvested units at end of year | 728,373 |  |  | 243,441 |
Schedule of Assumptions used to Value Stock Option Awards Granted | The following assumptions were used to value awards:
|  | Years Ended December 31, |  |  |  |
|  | 2020 |  | 2019 |  |  | 2018 |  |  |  |  |
|  | Monte Carlo |  | Black-Scholes | Monte Carlo |  |  | Black-Scholes | Monte Carlo |  |  |  |  |  |  |  |
Risk-free interest rate |  | 0.08% - 0.29% |  | 2.60% | 1.16% - 2.40% |  |  | 2.79% – 3.14% | 1.15% – 1.18% |  |  |  |  |  |  |  |
Expected stock price volatility (1) |  | 88.7% - 94.1% |  | 68% | 72.5% - 75.9% |  |  | 67% | 71% - 74% |  |  |  |  |  |  |  |
Expected dividend yield |  | —% |  | —% | —% |  |  | —% | —% |  |  |  |  |  |  |  |
Expected life (in years) (2) |  | (3) |  | 8.5 | (3) |  |  | 8.5 | (3) |  |  |  |  |  |  |  |
Contractual life (in years) |  | N/A |  | N/A | N/A |  |  | N/A | N/A |  |  |  |  |  |  |  |
Fair value |  | $24.36 - $38.75 |  | $20.55 - $23.25 | $26.25 - $33.75 |  |  | $22.95 - $44.40 | $27.60 - $72.00 |  |  |  |  |  |  |  |
(1)We generally estimate volatility based on the historical volatility of Ocwen’s common stock over the most recent period that corresponds with the estimated expected life of the option. For awards valued using a Monte Carlo simulation, volatility is computed as a blend of historical volatility and implied volatility based on traded options on Ocwen’s common stock. (2)For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. No option awards were granted during the year ended December 31, 2020. (3)The stock units that contain both a service condition and a market-based condition are valued using the Monte Carlo simulation. The expected term is derived from the output of the simulation and represents the expected time to meet the market-based vesting condition. For equity awards with both service and market conditions, the requisite service period is the longer of the derived or explicit service period. In this case, the explicit service condition (vesting period) is the requisite service period, and the graded vesting method is used for expense recognition.
Schedule of Equity-based Compensation Expense Related to Stock Options and Stock Awards and Related Excess Tax Benefit | The following table summarizes Ocwen's stock-based compensation expense included as a component of Compensation and benefits expense in the consolidated statements of operations:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Compensation expense - Equity awards |  |  |  |  |
Stock option awards | $ | (431) |  |  | $ | (121) |  |  | $ | (368) |
Stock awards | 2,832 |  |  | 2,818 |  |  | 2,734 |
| $ | 2,401 |  |  | $ | 2,697 |  |  | $ | 2,366 |
Compensation expense - Liability awards | 5,642 |  |  | 1,082 |  |  | — |
(Tax deficiency) excess tax benefit related to share-based awards | (424) |  |  | (381) |  |  | 294 |

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- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2439-114920 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2410-114920 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2417-114920 + Details
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