Commitments

9 Months Ended

Sep. 30, 2021


Note 21 — Commitments

Unfunded Lending Commitments

We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $2.1 billion at September 30, 2021. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. During the nine months ended September 30, 2021, we funded $147.6 million out of the $2.0 billion borrowing capacity as of December 31, 2020. We also had short-term commitments to lend $1.2 billion and $80.5 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at September 30, 2021. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, referred to as warehouse lines.

HMBS Issuer Obligations

As an HMBS issuer, we are required to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of a reverse mortgage loan is equal to or greater than 98% of the maximum claim amount (MCA repurchases), or when they become inactive (the borrower is deceased, no longer occupies the property or is delinquent on tax and insurance payments).

Activity with regard to HMBS repurchases, primarily MCA repurchases, are as follows:


	Nine Months Ended September 30, 2021
	Active			Inactive			Total
	Number	Amount		Number	Amount		Number	Amount
Beginning balance	141	$	29,852	317	$	56,449	458	$	86,301
Additions	217	57,684		203	41,956		420	99,640
Recoveries, net (1)	(221)	(50,748)		(130)	(18,244)		(351)	(68,992)
Transfers	(18)	(6,261)		18	6,261		—	—
Changes in value	—	9		—	(2,494)		—	(2,485)
Ending balance	119	$	30,536	408	$	83,928	527	$	114,464

(1)Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable.

NRZ Relationship

Our Servicing segment has exposure to concentration risk and client retention risk. As of September 30, 2021, our servicing portfolio included significant client relationships with NRZ which represented 24% and 34% of our servicing portfolio UPB and loan count, respectively, and approximately 62% of all 30-day delinquent loans that Ocwen services. The current terms of our agreements with NRZ extend through July 2022. Currently, subject to proper notice (generally 180 days’ notice), the payment of termination fees and certain other provisions, NRZ has rights to terminate the legacy Ocwen agreements for convenience.