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Borrowings (Tables)
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Match Funded Liabilities
Advance Match Funded LiabilitiesBorrowing CapacityDecember 31, 2020December 31, 2019
Borrowing TypeMaturity (1)Amorti-zation Date (1)TotalAvailable (2)Weighted Average Int. Rate BalanceWeighted Average Int. Rate Balance
Advance Financing Facilities
Advance Receivables Backed Notes - Series 2015-VF5 (3)Jun. 2051Jun. 2021$250,000 $160,604 4.26 %$89,396 3.36 %$190,555 
Advance Receivables Backed Notes, Series 2020-T1 (4)Aug. 2052Aug. 2022475,000 — 1.49 475,000 — — 
Advance Receivables Backed Notes, Series 2019-T1 (4)Aug. 2050Aug. 2020— — — — 2.62 185,000 
Advance Receivables Backed Notes, Series 2019-T2 (4)Aug. 2051Aug. 2021— — — — 2.53 285,000 
Total Ocwen Master Advance Receivables Trust (OMART)
725,000 160,604 1.93 %564,396 2.79 %660,555 
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)
Jun. 2051Jun. 202170,000 53,108 3.26 16,892 3.53 18,554 
$795,000 $213,712 1.96 %$581,288 2.81 %$679,109 
(1)The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing note may not be used to fund new advances.
(2)Borrowing capacity under the OMART and OFAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2020, none of the available borrowing capacity of the OMART and OFAF advance financing notes could be used based on the amount of eligible collateral.
(3)On May 7, 2020, we renewed this facility through June 30, 2021, and increased the total borrowing capacity of the Series 2015-VF5 variable notes from $200.0 million to $500.0 million, with interest computed based on the lender’s cost of funds plus a margin of 400 bps. On August 17, 2020, we reduced the total borrowing capacity to $250.0 million in conjunction with the issuance of new fixed-rate term notes with a borrowing capacity of $475.0 million, as disclosed in (4) below.
(4)On August 12, 2020, we issued fixed-rate term notes with a total borrowing capacity of $475.0 million (Series 2020 T-1). The weighted average rate of the notes at December 31, 2020 is 1.49% with rates on the individual classes of notes ranging from 1.28% to 5.42%. The Series 2019-T1 and 2019-T2 fixed-rate term notes were redeemed on August 17, 2020. (5)On May 7, 2020, we renewed this facility through June 30, 2021 and increased the borrowing capacity from $60.0 million to $70.0 million with interest computed based on the lender’s cost of funds plus a margin of 300 bps.
Schedule of Financing Liabilities
Financing LiabilitiesOutstanding Balance at December 31,
Borrowing TypeCollateralInterest RateMaturity20202019
HMBS-related borrowings, at fair value (1)Loans held for investment1ML + 245 bps(1)$6,772,711 $6,063,435 
Other financing liabilities, at fair value
MSRs pledged (Rights to MSRs), at fair value:
Original Rights to MSRs Agreements (2)MSRs (2)(2)566,952 603,046 
2017 Agreements and New RMSR Agreements (3) MSRs(3)(3)— 35,445 
PMC MSR Agreements (2)MSRs(2)(2)— 312,102 
566,952 950,593 
Financing liability - Owed to securitization investors, at fair value:
IndyMac Mortgage Loan Trust (INDX 2004-AR11) (4)Loans held for investment (4)(4)— 9,794 
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (4)Loans held for investment (4)(4)9,770 12,208 
9,770 22,002 
Total Other financing liabilities, at fair value576,722 972,595 
$7,349,433 $7,036,030 
(1)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS which did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheet and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests have no maturity dates, and the borrowings mature as the related loans are repaid.
(2)This pledged MSR liability is recognized due to the accounting treatment of MSR sale transactions with NRZ which did not qualify as sales for accounting purposes. Under this accounting treatment, the MSRs transferred to NRZ remain on the consolidated balance sheet and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related MSRs. This financing liability has no contractual maturity or repayment schedule. The PMC liability was derecognized upon termination of the agreement by NRZ on February 20, 2020. See Note 10 — Rights to MSRs for additional information.
(3)Represented a liability which arose in connection with lump sum payments received in 2017 upon transfer of legal title of the MSRs related to the Rights to MSRs transactions to NRZ and in 2018 in connection with the execution of the New RMSR Agreements as compensation for foregoing certain payments under the Original Rights to MSRs Agreements. The balance of the liability was adjusted each reporting period to its fair value through the term of the original agreements on April 30, 2020. See Note 10 — Rights to MSRs for additional information.
(4)Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our consolidated financial statements, as more fully described in Note 4 — Securitizations and Variable Interest Entities. In June 2020, we sold the beneficial interests held in the INDX 2004-AR11 securitization trust and deconsolidated the trust. The certificates in the RAST 2003-A11 Trust pay interest based on fixed rates ranging between 4.25% and 5.75% and a variable rate based on 1ML plus 0.45%. The maturity of the certificates occurs upon maturity of the loans held by the trust. The remaining loans in the RAST 2003-A11 Trust have maturity dates extending through October 2033.
Schedule of Other Secured Borrowings
Other Secured Borrowings Available Borrowing CapacityOutstanding Balance December 31,
Borrowing TypeCollateralInterest Rate (1) MaturityUncommittedCommitted (2)20202019
SSTL (3)(3)1-Month Euro-dollar rate + 600 bps; Euro-dollar floor 100 bps (3)May 2022$— $— $185,000$326,066
Master repurchase agreement (4)Loans held for sale (LHFS)1ML + 220 - 375 bpsJune 202179,227 — 195,77391,573
Mortgage warehouse agreement (5)LHFS (reverse)Greater of 1ML + 250 bps or 3.50%; LIBOR floor 0%August 2021— 1,000 — 72,443
Master repurchase agreement (6)LHFS (forward and reverse)1ML + 325 bps forward; 1ML + 350 bps reverseNov. 202150,000 119,919 80,081139,227
Master repurchase agreement (7)LHFS (reverse)Prime + 0%; 4.0% floorJanuary 2020— — — 898
Master repurchase agreement (8)N/ASOFR + 190 bps; SOFR floor 25 bpsN/A50,000 — — —
Participation agreement (9)LHFS(9)June 2021120,000 — —17,304
Master repurchase agreement (9)LHFS(9)June 2021— 26,719 63,281— 
Master repurchase agreementLHFS1 ML + 250 bpsMarch 2021— 1,000 — — 
Mortgage warehouse agreement (10)LHFS1ML + 350 bps; 5.25% floorJan. 2022— 38,285 11,71510,780
Mortgage warehouse agreement (11)LHFS (reverse)1ML + 250 bps; 3.25% floorOct. 202126,866 — 73,134— 
Mortgage warehouse agreement (12)LHFS(12)N/A72,271 — 27,729— 
Total Mortgage loan warehouse facilities3.33% (17)398,364 186,923 451,713332,225
Other Secured Borrowings Available Borrowing CapacityOutstanding Balance December 31,
Borrowing TypeCollateralInterest Rate (1) MaturityUncommittedCommitted (2)20202019
Agency MSR financing facility (13)MSRs, Advances1ML + 450 bpsJune 2021— 39,245 210,755147,706
Ginnie Mae MSR financing facility (14)MSRs, Advances1ML + 450 bps; 0.50% floorDec. 202112,978 — 112,02272,320
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (15)MSRs5.07%Nov. 2024— — 68,31394,395
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (16)MSRs(16)Feb. 2028— — 47,47657,594
Total MSR financing facilities4.82% (17)12,978 39,245 438,566372,015
$411,342 $226,168 1,075,2791,030,306
Unamortized debt issuance costs - SSTL and PLS Notes (18)(5,761)(3,381)
Discount - SSTL(357)(1,134)
$1,069,161$1,025,791
Weighted average interest rate4.55 %4.74 %
(1)1ML was 0.14% and 1.76% at December 31, 2020 and 2019, respectively.
(2)Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, none of the available borrowing capacity could be used at December 31, 2020 based on the amount of eligible collateral that could be pledged.
(3)On January 27, 2020, we entered into a Joinder and Second Amendment Agreement (the Amendment) which amends the Amended and Restated SSTL Facility Agreement dated as of December 5, 2016, as amended by a Joinder and Amendment Agreement dated as of March 18, 2019. The Amendment provided for a net prepayment of $126.1 million of the outstanding balance at December 31, 2019 such that the facility has a maximum outstanding balance of $200.0 million. The Amendment also (i) extended the maturity of the remaining outstanding loans under the SSTL to May 15, 2022, (ii) provides that the loans under the SSTL bear interest at the one-month Eurodollar Rate or the Base Rate (as defined in the SSTL), at our option, plus a margin of 6.00% per annum for Eurodollar Rate loans or 5.00% per annum for Base Rate loans (increasing to a margin of 6.50% per annum for Eurodollar Rate loans or 5.50% per annum for Base Rate loans on January 27, 2021), (iii) provides for a prepayment premium of 2.00% until January 27, 2022 and (iv) requires quarterly principal payments of $5.0 million. The applicable interest rate was 7.0% at December 31, 2020.
(4)The maximum borrowing under this agreement is $275.0 million, of which $110.0 million is available on a committed basis and the remainder is available at the discretion of the lender.
(5)On March 12, 2020, we voluntarily reduced the maximum borrowing capacity from $100.0 million to $1.0 million to in connection with Liberty’s transfer of substantially all of its assets, liabilities, contracts and employees to PMC effective March 15, 2020. On August 10, 2020, the maturity date of this agreement was extended to August 13, 2021. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing.
(6)The maximum borrowing under this agreement is $250.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. The agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transaction does not qualify for sale accounting treatment and is accounted for as a secured borrowing. On November 19, 2020, the maturity date was extended to November 18, 2021 and the interest rate was increased to 1ML plus 3.25% for borrowings secured by forward mortgage loans and 1ML plus 3.50% for reverse mortgage loans.
(7)This facility expired on January 22, 2020 and was not renewed.
(8)The lender provides financing for up to $50.0 million at the discretion of the lender. The agreement has no stated maturity date. Interest on this facility is based on the Secured Overnight Financing Rate (SOFR).
(9)Under the original terms, the lender provided $300.0 million of borrowing capacity on an uncommitted basis. On June 25, 2020, this facility was amended to be comprised of two lines, a $120.0 million uncommitted participation agreement and a $90.0 million committed repurchase agreement. The maturity date of the facility was extended to June 24, 2021. The agreements allow the lender to acquire a 100% beneficial interest in the underlying mortgage loans. The transactions do not qualify for sale accounting treatment and are accounted for as secured borrowings. The lender earns the stated interest rate of the underlying mortgage loans less 35 bps with a floor of 3.50%, while the loans are financed under both the participation and repurchase agreements.
(10)Under this agreement, the lender provides financing for up to $50.0 million on a committed basis. On January 15, 2021, the maturity date of this facility was extended to January 15, 2022.
(11)On March 12, 2020, we entered into a mortgage loan warehouse agreement to fund reverse mortgage loan draws by borrowers subsequent to origination. Under this agreement, the lender provides financing for up to $100.0 million on an uncommitted basis. In October 2020, the maturity date was extended to October 24, 2021 and the capacity was temporarily increased to $150.0 million until
December 4, 2020 when it was reduced to $100.0 million. On February 1, 2021, the capacity was temporarily increased to $150.0 million until February 28, 2021 when it will be reduced to $100.0 million.
(12)On September 30, 2020, we entered into a $100.0 million uncommitted repurchase agreement to finance the purchase of EBO loans from Ginnie Mae. The agreement has no stated maturity date, however each transaction has a maximum duration of four years. The cost of this line is set at each transaction date and is based on the interest rate on the collateral.
(13)PMC’s obligations under this facility are secured by a lien on the related MSRs. Ocwen guarantees the obligations of PMC under this facility. On May 7, 2020, we renewed the facility through June 30, 2021 and reduced the maximum amount which we may borrow pursuant to the repurchase agreements from $300.0 million to $250.0 million on a committed basis. We also pledged the membership interest of the depositor for our OMART advance financing facility as additional collateral to this facility. See Note 4 — Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of our MSR financing facilities. Declines in fair value of our MSRs due to declines in market interest rates, assumption updates or other factors require that we provide additional collateral to our lenders under these facilities.
(14)In connection with this facility, PMC entered into a repurchase agreement pursuant to which PMC has sold a participation certificate representing certain economic interests in the Ginnie Mae MSRs and has agreed to repurchase such participation certificate at a future date at the repurchase price set forth in the repurchase agreement. PMC’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs. Ocwen guarantees the obligations of PMC under the facility. On June 30, 2020, we amended the facility to increase the borrowing capacity from $100.0 million to $127.5 million on an uncommitted basis, accelerate the maturity date to December 27, 2020 and include Ginnie Mae servicing advances as additional collateral. On December 23, 2020, the maturity date was extended to December 27, 2021 and the borrowing capacity was reduced to $125.0 million. See (13) above regarding daily margining requirements.
(15) PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Ocwen guarantees the obligations of PLS Issuer under the facility. The Class A PLS Notes issued pursuant to the credit agreement had an initial principal amount of $100.0 million and amortize in accordance with a pre-determined schedule subject to modification under certain events. See Note 4 — Securitizations and Variable Interest Entities for additional information. See (13) above regarding daily margining requirements.
(16)OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes.
(17)Weighted average interest rate at December 31, 2020, excluding the effect of debt issuance costs and discount.
(18)Includes $4.9 million and $2.2 million at December 31, 2020 and 2019, respectively, related to SSTL.
Schedule of Senior Notes
Senior Notes
Outstanding Balance at December 31,
Interest RateMaturity20202019
Senior unsecured notes (1) (3)6.375%Aug. 202121,543 21,543 
Senior secured notes (2) (3)8.375%Nov. 2022291,509 291,509 
313,052 313,052 
Unamortized debt issuance costs(968)(1,470)
Purchase accounting fair value adjustments (1)(186)(497)
$311,898 $311,085 
(1)These notes were originally issued by PHH and subsequently assumed by Ocwen in connection with its acquisition of PHH. We are amortizing the fair value purchase accounting adjustments over the remaining term of the notes. We have the option to redeem the notes, in whole or in part, at a redemption price equal to 100.0% of the principal amount plus any accrued and unpaid interest.
(2)During July and August 2019, we repurchased a total of $39.4 million of our 8.375% Senior secured notes in the open market for a price of $34.3 million. We recognized a gain of $5.1 million on these repurchases which is reported in Gain on repurchases of senior secured notes in the consolidated statement of operations.
(3)See Note 28 — Subsequent Events for information regarding our intention to redeem our senior notes.
Schedule of Assets Held as Collateral Related to Secured Borrowings
Our assets held as collateral related to secured borrowings, committed under sale or other contractual obligations and which may be subject to secured liens under the SSTL and Senior Secured Notes are as follows at December 31, 2020:
Collateral for Secured Borrowings
Total AssetsMatch Funded LiabilitiesFinancing LiabilitiesMortgage Loan Warehouse/MSR FacilitiesSales and Other Commitments (1)Other (2)
Cash$284,802 $— $— $— $— $284,802 
Restricted cash72,463 14,195 — 5,945 52,323 — 
MSRs (3)1,294,817 — 566,952 728,420 — — 
Advances, net828,239 651,576 — 82,147 — 94,516 
Loans held for sale387,836 — — 359,131 — 28,705 
Loans held for investment7,006,897 — 6,882,022 96,302 — 28,573 
Receivables, net187,665 — — 47,187 — 140,478 
Premises and equipment, net
16,925 — — — — 16,925 
Other assets571,483 — — 6,334 497,616 67,533 
Total assets$10,651,127 $665,771 $7,448,974 $1,325,466 $549,939 $661,532 
(1)Sales and Other Commitments include Restricted cash and deposits held as collateral to support certain contractual obligations, and Contingent loan repurchase assets related to the Ginnie Mae EBO program for which a corresponding liability is recognized in Other liabilities.
(2)The borrowings under the SSTL are secured by a first priority security interest in substantially all of the assets of Ocwen, PHH, PMC and the other guarantors thereunder, excluding among other things, 35% of the voting capital stock of foreign subsidiaries, securitization assets and equity interests of securitization entities, assets securing permitted funding indebtedness and non-recourse indebtedness, REO assets, as well as other customary carve-outs (collectively, the Collateral). The Collateral is subject to certain permitted liens set forth under the SSTL and related security agreement. The Senior Secured Notes are guaranteed by Ocwen and the other guarantors that guarantee the SSTL, and the borrowings under the Senior Secured Notes are secured by a second priority security interest in the Collateral. Assets securing borrowings under the SSTL and Senior Secured Notes may include amounts presented in Other as well as certain assets presented in Collateral for Secured Borrowings and Sales and Other Commitments, subject to permitted liens as defined in the applicable debt documents. The amounts presented here may differ in their calculation and are not intended to represent amounts that may be used in connection with covenants under the applicable debt documents.
(3)MSRs pledged as collateral for secured borrowings in connection with the Rights to MSRs transactions with NRZ which are accounted for as secured financings. Certain MSR cohorts with a negative fair value of $0.6 million that would be presented as Other are excluded from the eligible collateral of the facilities and are comprised of $16.3 million of positive fair value related to RMBS and $16.9 million of negative fair value related to private EBO and PLS MSRs.
Schedule of Aggregate Long-term Borrowings
Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience.
Expected Maturity Date (1) (2) (3)
20212022202320242025ThereafterTotal
Balance		Fair
Value
Advance match funded liabilities$106,288 $475,000 $— $— $— $— $581,288 $581,997 
Other secured borrowings
821,141 206,662 — — — 47,476 1,075,279 1,043,212 
Senior notes
21,543 291,509 — — — — 313,052 320,879 
$948,972 $973,171 $— $— $— $47,476 $1,969,619 $1,946,088 
(1)Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment.
(2)For match funded liabilities, the Expected Maturity Date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.
(3)Excludes financing liabilities recognized in connection with asset sales transactions accounted for as financings, including $567.0 million recorded in connection with sales of Rights to MSRs and MSRs and $6.8 billion recorded in connection with the securitizations of HMBS. These financing liabilities have no contractual maturity and are amortized over the life of the underlying assets.