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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of Income Before Taxes | For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Domestic | $ | (118,043) |  |  | $ | (93,487) |  |  | $ | 11,477 |
Foreign | 12,359 |  |  | (33,004) |  |  | (82,953) |
| $ | (105,684) |  |  | $ | (126,491) |  |  | $ | (71,476) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | (67,080) |  |  | $ | 873 |  |  | $ | (7,670) |
State | 348 |  |  | 4,460 |  |  | 356 |
Foreign | 2,600 |  |  | 7,181 |  |  | 11,132 |
| (64,132) |  |  | 12,514 |  |  | 3,818 |
Deferred: |  |  |  |  |
Federal | (25,762) |  |  | (40,429) |  |  | 23,991 |
State | (2,047) |  |  | (914) |  |  | 319 |
Foreign | (1,445) |  |  | 11,993 |  |  | (4,252) |
Provision for (reversal of) valuation allowance on deferred tax assets | 27,880 |  |  | 32,470 |  |  | (23,347) |
| (1,374) |  |  | 3,120 |  |  | (3,289) |
Total | $ | (65,506) |  |  | $ | 15,634 |  |  | $ | 529 |
Schedule of Effective Income Tax Reconciliation | Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Expected income tax expense (benefit) at statutory rate | $ | (22,194) |  |  | $ | (26,563) |  |  | $ | (15,010) |
Differences between expected and actual income tax expense: |  |  |  |  |
CARES Act | (63,954) |  |  | — |  |  | — |
Provision for (reversal of) valuation allowance on deferred tax assets (1) | 27,880 |  |  | 32,470 |  |  | (23,347) |
Provision for (reversal of) liability for uncertain tax positions | (2,033) |  |  | 4,198 |  |  | (3,987) |
Other provision to return differences | (3,347) |  |  | 1,242 |  |  | (6,559) |
Foreign tax differential including effectively connected income (2) | (2,511) |  |  | 15,979 |  |  | 22,990 |
State tax, after Federal tax benefit | (1,700) |  |  | (784) |  |  | 675 |
Executive compensation disallowance | 594 |  |  | 1,344 |  |  | 959 |
Excess tax benefits from share-based compensation | 424 |  |  | 381 |  |  | (356) |
Other permanent differences | 382 |  |  | 66 |  |  | 122 |
Foreign tax credit (generation) utilization | (13) |  |  | 263 |  |  | (25,601) |
Revaluation of deferred tax assets related to legal entity mergers | (2) |  |  | (25,509) |  |  | — |
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion | 182 |  |  | 11,859 |  |  | — |
U.S. Tax Reform - Change in Federal rate | — |  |  | — |  |  | (10,666) |
U.S. Tax Reform - Transition Tax | — |  |  | — |  |  | 14,412 |
U.S. Tax Reform - BEAT Tax | — |  |  | (555) |  |  | 1,076 |
Reduction in tax attributes for Section 382 & 383 limitations | — |  |  | — |  |  | 55,668 |
Bargain purchase gain disallowance | — |  |  | 80 |  |  | (13,448) |
Subpart F income | — |  |  | — |  |  | 3,222 |
Other | 786 |  |  | 1,163 |  |  | 379 |
Actual income tax expense (benefit) | $ | (65,506) |  |  | $ | 15,634 |  |  | $ | 529 |
(1)The benefit recorded for the provision for valuation allowance in 2018 relates primarily to a reduction in the valuation allowance necessary as a result of the reduction in tax attributes due to Section 382 & 383 limitations. This benefit is partially offset by an increase in valuation allowance necessary for current year losses and for adjustments to provisional amounts recorded under SAB 118 at December 31, 2017 when accounting for the effects of tax reform passed on December 22, 2017. (2)The foreign tax differential includes expense recognized in 2019 and a benefit recognized in 2018 for taxable income or losses earned by Ocwen Mortgage Servicing, Inc. (OMS) prior to the merger of OMS into OVIS in 2019, which are taxable in the U.S. as effectively connected income (ECI). The impact of ECI to income tax expense (benefit) for 2019 and 2018 was $2.6 million and $(3.3) million, respectively.
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following:
| December 31,
| 2020 |  | 2019
Deferred tax assets |  |  |
Net operating loss carryforwards - federal and foreign | $ | 40,557 |  |  | $ | 64,817 |
Net operating loss carryforwards and credits - state and local | 67,293 |  |  | 70,254 |
Interest expense disallowance | 23,112 |  |  | 12,423 |
Reserve for servicing exposure | 10,273 |  |  | 7,711 |
Accrued legal settlements | 9,200 |  |  | 6,028 |
Partnership losses | 7,316 |  |  | 7,029 |
Stock-based compensation expense | 6,486 |  |  | 5,297 |
Accrued incentive compensation | 6,240 |  |  | 5,063 |
Accrued other liabilities | 5,722 |  |  | 6,377 |
Lease liabilities | 4,943 |  |  | 5,459 |
Intangible asset amortization | 4,541 |  |  | 4,946 |
Foreign deferred assets | 3,731 |  |  | 3,620 |
Tax residuals and deferred income on tax residuals | 2,968 |  |  | 2,885 |
Foreign tax credit | 107 |  |  | 94 |
Bad debt and allowance for loan losses | — |  |  | 2,530 |
Deferred income | — |  |  | 8,493 |
Other | 5,928 |  |  | 8,708 |
| 198,417 |  |  | 221,734 |
Deferred tax liabilities |  |  |
Mortgage servicing rights amortization | 8,123 |  |  | 16,358 |
Bad debt and allowance for loan losses | 1,951 |  |  | — |
Foreign undistributed earnings | 287 |  |  | 1,615 |
Other | 864 |  |  | 1,151 |
| 11,225 |  |  | 19,124 |
| 187,192 |  |  | 202,610 |
Valuation allowance | (183,649) |  |  | (200,441) |
Deferred tax assets, net | $ | 3,543 |  |  | $ | 2,169 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 10,589 |  |  | $ | 9,622 |  |  | $ | 2,281 |
Additions for tax positions of current year | — |  |  | 207 |  |  | 412 |
Additions for tax positions of prior years | 15,242 |  |  | 3,110 |  |  | 1,354 |
Reductions for tax positions of prior years | (219) |  |  | — |  |  | (236) |
Reductions for settlements | (3,067) |  |  | (1,293) |  |  | (3,188) |
Lapses in statute of limitations | (1,907) |  |  | (1,057) |  |  | (4,109) |
Additions - PHH acquisition | — |  |  | — |  |  | 13,108 |
Ending balance (1) | $ | 20,638 |  |  | $ | 10,589 |  |  | $ | 9,622 |
(1)$12.8 million of the balance at December 31, 2020 is included in the Liability for uncertain tax positions in Other liabilities, with the remaining $7.8 million balance included as a reduction of Income taxes receivable in Receivables. The balance at December 31, 2019 is included in the Liability for uncertain tax positions in Other liabilities.

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