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Borrowings (Tables)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Match Funded Liabilities
Advance Match Funded Liabilities
Borrowing CapacityMarch 31, 2021December 31, 2020
Borrowing TypeMaturity (1)Amort. Date (1)Total Available (2)Weighted Average Interest Rate BalanceWeighted Average Interest RateBalance
Advance Receivables Backed Notes - Series 2015-VF5 (3)Jun. 2051Jun. 2021$250,000 $190,479 4.22 %$59,521 4.26 %$89,396 
Advance Receivables Backed Notes, Series 2020-T1 (4)Aug. 2052Aug. 2022475,000 — 1.49 %475,000 1.49 %475,000 
Total Ocwen Master Advance Receivables Trust (OMART)725,000 190,479 1.79 %534,521 1.93 %564,396 
Ocwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)
Jun. 2051Jun. 202170,000 54,084 3.22 %15,916 3.26 %16,892 
$795,000 $244,563 1.83 %$550,437 1.96 %$581,288 
(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 March 31, 2021, 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)Interest is computed based on the lender’s cost of funds plus a margin of 400 bps.
(4)The weighted average rate of the notes at March 31, 2021 is 1.49%, with rates on the individual classes of notes ranging from 1.28% to 5.42%.
(5)Interest is computed based on the lender’s cost of funds plus a margin of 300 bps.
Schedule of Financing Liabilities
Financing LiabilitiesOutstanding Balance
Borrowing TypeCollateralInterest RateMaturityMarch 31, 2021December 31, 2020
HMBS-related borrowings, at fair value (1)Loans held for investment
1ML + 245 bps (1)
(1)$6,778,195 $6,772,711 
Other financing liabilities, at fair value
MSRs pledged (Rights to MSRs), at fair value:
Original Rights to MSRs AgreementsMSRs (2)(2)550,364 566,952 
Financing liability - Owed to securitization investors, at fair value:
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (3)Loans held for investment
4.25% - 5.75% fixed; 1ML plus 0.45% variable
Oct. 20338,820 9,770 
Total Other financing liabilities, at fair value559,184 576,722 
$7,337,379 $7,349,433 
(1)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS which did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. Interest rate is a weighted average based on the pass-through rate of the loans. See Note 2 – Securitizations and Variable Interest Entities.
(2)This pledged MSR liability is recognized due to the accounting treatment of MSR sale transactions with NRZ which did not qualify as sales for accounting purposes. Under this accounting treatment, the MSRs transferred to NRZ remain on the consolidated balance sheet and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related MSRs. This financing liability has no contractual maturity or repayment schedule. See Note 8 — Rights to MSRs for additional information.
(3)Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our unaudited consolidated financial statements, as more fully described in Note 2 – Securitizations and Variable Interest Entities.
Schedule of Other Secured Borrowings
Other Secured BorrowingsAvailable Borrowing Capacity Outstanding Balance
Borrowing TypeCollateralInterest Rate (1)MaturityUncommittedCommitted (2)March 31, 2021December 31, 2020
SSTL (3)(3)
1-Month Euro-dollar rate + 600 bps with a Eurodollar floor of 100 bps (3)
May 2022 (3)$— $— $— $185,000 
Other Secured BorrowingsAvailable Borrowing Capacity Outstanding Balance
Borrowing TypeCollateralInterest Rate (1)MaturityUncommittedCommitted (2)March 31, 2021December 31, 2020
Master repurchase agreement (4)Loans held for sale (LHFS)
1ML + 220 - 375 bps
June 202285,109 — 189,891 195,773 
Mortgage warehouse agreement (5)LHFS (reverse)
Greater of 1ML + 250 bps or 3.50%
August 2021— 1,000 — — 
Master repurchase agreement (6)LHFS (forward and reverse)
1ML + 325 bps forward; 1ML + 350 bps reverse
Nov. 202150,000 38,660 161,340 80,081 
Master repurchase agreement (7)N/A
SOFR + 190 bps; SOFR floor 25 bps
N/A50,000 — — — 
Participation agreement (8)LHFS(8)June 2021120,000 — — — 
Master repurchase agreement (8)LHFS(8)June 2021— 49,231 40,769 63,281 
Master repurchase agreementLHFS
1 ML + 250 bps
June 2021— 1,000 — — 
Mortgage warehouse agreement (9)LHFS
1ML + 350 bps; Floor 5.25%
Jan. 2022— 35,042 14,958 11,715 
Mortgage warehouse agreement (10)LHFS (reverse)
1ML + 250 bps; 3.25% floor
Oct. 2021519 — 99,481 73,134 
Mortgage warehouse agreement (11)LHFS(11)N/A48,671 — 51,329 27,729 
Master repurchase agreement (12)LHFS
1ML + 150 - 200 bps; Floor 250 bps
N/A— — 51,664 — 
Total mortgage loan warehouse facilities
2.93% (17)
354,299 124,933 609,432 451,713 
Other Secured BorrowingsAvailable Borrowing Capacity Outstanding Balance
Borrowing TypeCollateralInterest Rate (1)MaturityUncommittedCommitted (2)March 31, 2021December 31, 2020
Agency MSR financing facility (13)MSRs, Advances
1ML + 450 bps
June 2021— — 250,000 210,755 
Ginnie Mae MSR financing facility (14)MSRs, Advances
1ML + 450 bps; 1ML floor 0.50%
Dec. 202125,216 — 99,784 112,022 
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (15)MSRs5.07%Nov. 2024— — 62,297 68,313 
Secured Notes, Ocwen Asset Servicing Income Series, Series 2014-1 (16)MSRs(16)Feb. 2028— — 45,273 47,476 
Total MSR financing facilities
4.77% (17)
25,216 — 457,354 438,566 
$379,515 $124,933 1,066,786 1,075,279 
Unamortized debt issuance costs - SSTL and PLS Notes (18)(764)(5,761)
Discount - SSTL— (357)
$1,066,022 $1,069,161 
Weighted average interest rate3.68 %4.55 %
(1)1ML was 0.11% and 0.14% at March 31, 2021 and December 31, 2020, 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 March 31, 2021 based on the amount of eligible collateral that could be pledged.
(3)On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance. The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million.
(4)The maximum borrowing under this agreement is $275.0 million, of which $160.0 million is available on a committed basis and the remainder is available at the discretion of the lender. On March 31, 2021, we renewed the facility and the maturity date was extended to June 30, 2022.
(5)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.
(7)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).
(8)This facility is comprised of two lines, a $120.0 million uncommitted participation agreement and a $90.0 million committed repurchase agreement. 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% for new originations and 3.75% for Ginnie Mae modifications, while the loans are financed under both the participation and repurchase agreements.
(9)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.
(10)Under this agreement, the lender provides financing for up to $100.0 million on an uncommitted basis. On February 1, 2021, the borrowing capacity was temporarily increased from $100.0 million to $150.0 million until February 28, 2021 when it was reduced to $100.0 million. On March 30, 2021, the borrowing capacity was temporarily increased to $150.0 million effective April 1, 2021 until May 30, 2021.
(11)This facility provides up to $100.0 million of uncommitted borrowing capacity. 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.
(12)We entered into a repurchase agreement on March 29, 2021 which provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 30-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are sold to a trust which trust issues a trust certificate that is pledged as the collateral for the borrowings.
(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. The maximum amount which we may borrow pursuant to the repurchase agreements is $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 2 – 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. On March 31, 2021, the facility was upsized to $350.0 million, the interest rate reduced to 1ML plus 325bps, and the maturity was renewed to June 30, 2022. These changes became effective on April 15, 2021.
(14)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. The borrowing capacity is $125.0 million on an uncommitted basis. 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 2 – 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 March 31, 2021, excluding the effect of debt issuance costs and discount.
(18)Balance at December 31, 2020 includes $4.9 million related to SSTL.
Schedule of Senior Notes
Senior NotesInterest RateMaturityOutstanding Balance
March 31, 2021December 31, 2020
PMC Senior Secured Notes7.875%March 2026$400,000 $— 
OFC Senior Secured Notes (1)
12% paid in cash or 13.25% paid-in-kind (see below)
March 2027199,500 — 
PHH Senior Notes 6.375%August 2021— 21,543 
PMC Senior Secured Notes 8.375%November 2022— 291,509 
Principal balance599,500 313,052 
Discount (2)
PMC Senior Secured Notes(2,025)— 
OFC Senior Secured Notes (1)(40,707)— 
(42,732)— 
Unamortized debt issuance costs (2)
PMC Senior Secured Notes(6,598)(968)
OFC Senior Secured Notes(7,243)— 
(13,841)(968)
Fair value adjustments— (186)
$542,927 $311,898 
(1)At date of issuance on March 4, 2021, the discount included $24.5 million original issue discount (OID) on the OFC Senior Secured Notes and $16.5 million of additional discount related to the concurrent issuance of warrants. See below for additional information.
(2)The discount and debt issuance costs are being amortized to interest expense through the maturity of the respective notes.
Schedule of Redemption Prices
On or after March 15, 2023, PMC may redeem some or all of the PMC Senior Secured Notes at its option at the following redemption prices, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date if redeemed during the 12-month period beginning on March 15th of the years indicated below:
Redemption YearRedemption Price
2023103.938 %
2024101.969 
2025 and thereafter100.000