Rights to MSRs (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Interest Expense Related to Financial Liability

The following tables present selected assets and liabilities recorded on our consolidated balance sheets as well as the impacts to our consolidated statements of operations in connection with our NRZ agreements.


	Years Ended December 31,
	2020		2019		2018
Balance Sheets
MSRs, at fair value (1)	$	566,952	$	915,148	$	894,002
Due from NRZ (Receivables)
Sales and transfers of MSRs (2)	—		24,167		23,757
Advance funding, subservicing fees and reimbursable expenses	4,611		9,197		30,845
	$	4,611	$	33,364	$	54,602

Due to NRZ (Other liabilities)	$	94,691	$	63,596	$	53,001
Financing liability - MSRs pledged, at fair value
Original Rights to MSRs Agreements	$	566,952	$	603,046	$	436,511
2017 Agreements and New RMSR Agreements	—		35,445		138,854
PMC MSR Agreements (1)	—		312,102		457,491
	$	566,952	$	950,593	$	1,032,856

Statements of Operations
Servicing fees collected on behalf of NRZ (1)	$	383,685	$	577,015	$	539,039
Less: Subservicing fee retained (1)	104,848		139,343		142,334
Net servicing fees remitted to NRZ	278,837		437,672		396,705

Less: Reduction (increase) in financing liability
Changes in fair value:
Original Rights to MSRs Agreements	(21,964)		(229,198)		171
2017 Agreements and New RMSR Agreements	(903)		(5,866)		14,369
PMC MSR Agreements (1)	40,720		82,078		4,729
	17,853		(152,986)		19,269
Runoff and settlement:
Original Rights to MSRs Agreements	56,302		48,729		58,837
2017 Agreements and New RMSR Agreements	35,121		101,003		134,509
PMC MSR Agreements (1)	7,492		64,631		18,420
	98,915		214,363		211,766

Other	9,735		4,206		(6,000)

Pledged MSR liability expense	$	152,334	$	372,089	$	171,670

(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 were derecognized from our balance sheet, we continued to service these loans until completing deboarding on October 1, 2020, and accounted for them as a subservicing relationship.

(2)Balance represented 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.

Schedule of Activity Related to Rights to Mortgage Servicing Rights


	Year Ended December 31, 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
Additions	—		—		—		—
Sales	—		—		(226)		(226)
Changes in fair value:
Original Rights to MSRs Agreements	21,964		—		—		21,964
2017 Agreements and New RMSR Agreements	—		903		—		903
PMC MSR Agreements	—		—		(40,720)		(40,720)
Runoff and settlement:
Original Rights to MSRs Agreements	(56,302)		—		—		(56,302)
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	(1,756)		—		—		(1,756)
2017 Agreements and New RMSR Agreements	—		(1,227)		—		(1,227)
PMC MSR Agreements	—		—		—		—
Ending balance	$	566,952	$	—	$	—	$	566,952


	Year Ended December 31, 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
Additions	—		—		1,276		1,276


Sales	—		—		44		44
Changes in fair value:
Original Rights to MSRs Agreements	229,198		—		—		229,198
2017 Agreements and New RMSR Agreements	—		5,866		—		5,866
PMC MSR Agreements	—		—		(82,078)		(82,078)
Runoff and settlement:
Original Rights to MSRs Agreements	(48,730)		—		—		(48,730)
2017 Agreements and New RMSR Agreements	—		(101,003)		—		(101,003)
PMC MSR Agreements	—		—		(64,631)		(64,631)
Calls (1):	—		—		—
Original Rights to MSRs Agreements	(13,933)		—		—		(13,933)
2017 Agreements and New RMSR Agreements	—		(8,272)		—		(8,272)
PMC MSR Agreements	—		—		—		—
Ending balance	$	603,046	$	35,445	$	312,102	$	950,593


	Year Ended December 31, 2018
Financing Liability - MSRs Pledged	Original Rights to MSRs Agreements		2017 Agreements and New RMSR Agreements		PMC MSR Agreements		Total
Beginning balance	$	499,042	$	9,249	$	—	$	508,291
Additions	—		—		667		667
Assumed in connection with the acquisition of PHH	—		—		481,020		481,020
Receipt of lump-sum cash payments	—		279,586		—		279,586

Changes in fair value:
Original Rights to MSRs Agreements	(171)		—		—		(171)
2017 Agreements and New RMSR Agreements	—		(14,369)		—		(14,369)
PMC MSR Agreements	—		—		(4,729)		(4,729)
Runoff and settlement:
Original Rights to MSRs Agreements	(58,837)		—		—		(58,837)
2017 Agreements and New RMSR Agreements	—		(134,509)		—		(134,509)
PMC MSR Agreements	—		—		(18,420)		(18,420)
Calls (1):
Original Rights to MSRs Agreements	(3,523)		—		—		(3,523)
2017 Agreements and New RMSR Agreements	—		(1,103)		—		(1,103)
PMC MSR Agreements	—		—		(1,047)		(1,047)
Ending balance	$	436,511	$	138,854	$	457,491	$	1,032,856

(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.

UPB of Loans Serviced on behalf of NRZ

As of December 31, 2020, the UPB of loans serviced on behalf of NRZ comprised the following:


Ocwen servicer of record (MSR title retained by Ocwen) - Ocwen MSR (1) (2)	$	14,114,602
NRZ servicer of record (MSR title transferred to NRZ) - Ocwen MSR (1)	49,866,082
Ocwen subservicer	3,130,704
Total NRZ UPB at December 31, 2020	$	67,111,388

(1)The MSR sale transactions did not achieve sale accounting treatment.

(2)NRZ’s associated outstanding servicing advances were approximately $575.9 million as of December 31, 2020.