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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
			2021						2020						2019
Domestic			$	(13,901)					$	(118,043)					$	(93,487)
Foreign			9,530						12,359						(33,004)
			$	(4,371)					$	(105,684)					$	(126,491)

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows:

			Years Ended December 31,
			2021						2020						2019
Current:
Federal			$	(20,134)					$	(67,080)					$	873
State			(1,310)						348						4,460
Foreign			1,554						2,600						7,181
			(19,890)						(64,132)						12,514
Deferred:
Federal			(2,265)						(26,029)						(40,429)
State			(31)						(2,115)						(914)
Foreign			167						(1,445)						11,993
Provision for (reversal of) valuation allowance on deferred tax assets			2,344						28,215						32,470
			215						(1,374)						3,120
Other			(2,774)						—						—
Total			$	(22,449)					$	(65,506)					$	15,634

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,
			2021						2020						2019
Expected income tax expense (benefit) at statutory rate			$	(918)					$	(22,194)					$	(26,563)
Differences between expected and actual income tax expense:
CARES Act			(12,631)						(79,049)						—
Provision for (reversal of) valuation allowance on deferred tax assets			2,344						28,214						32,470
Provision for (reversal of) liability for uncertain tax positions			(8,700)						13,062						4,198
Interest on refund claims due from tax authorities			(2,774)						—						—
Other provision to return differences			(954)						(3,347)						1,242
Foreign tax differential including effectively connected income (1)			1,401						(2,511)						15,979
State tax, after Federal tax benefit			212						(1,396)						(619)
Benefit of state NOL carryback claims and amended return filings			(1,803)						—						—
Executive compensation disallowance			1,384						594						1,344
Excess tax benefits from share-based compensation			(518)						424						381
Other permanent differences			150						382						66
Foreign tax credit (generation) utilization			(49)						(13)						263
Revaluation of deferred tax assets related to legal entity mergers			(5)						(2)						(25,509)
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion			175						182						11,859
U.S. Tax Reform - BEAT Tax			—						—						(555)
Bargain purchase gain disallowance			—						—						80
Other			237						148						998
Actual income tax expense (benefit)			$	(22,449)					$	(65,506)					$	15,634

(1)The foreign tax differential includes expense recognized in 2019 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 was $2.6 million.

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:

			December 31,
			2021						2020
Deferred tax assets
Net operating loss carryforwards - federal and foreign			$	54,569					$	40,557
Net operating loss carryforwards and credits - state and local			70,680						67,293
Interest expense disallowance			39,277						23,112
Reserve for servicing exposure			6,752						10,273
Accrued legal settlements			9,905						9,200
Partnership losses			8,553						7,316
Stock-based compensation expense			9,857						6,486
Accrued incentive compensation			6,698						6,240
Accrued other liabilities			5,900						5,722
Lease liabilities			2,549						4,943
Intangible asset amortization			4,964						4,541
Foreign deferred assets			3,763						3,731
Tax residuals and deferred income on tax residuals			1,460						2,968
Bad debt and allowance for loan losses			4,014						—
Other			5,133						6,035
			234,074						198,417
Deferred tax liabilities
Mortgage servicing rights amortization			57,324						8,123
Bad debt and allowance for loan losses			—						1,951
Other			1,312						1,151
			58,636						11,225
			175,438						187,192
Valuation allowance			(172,109)						(183,649)
Deferred tax assets, net			$	3,329					$	3,543

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,
			2021						2020						2019
Beginning balance			$	20,638					$	10,589					$	9,622
Additions for tax positions of current year			—						—						207
Additions for tax positions of prior years			178						15,242						3,110
Reductions for tax positions of prior years			(6,361)						(219)						—
Reductions for settlements			(555)						(3,067)						(1,293)
Lapses in statute of limitations			(2,365)						(1,907)						(1,057)
Ending balance (1)			$	11,535					$	20,638					$	10,589

(1)At December 31, 2021 and 2020, $11.3 million and $12.8 million, respectively, of the balance is included in the Liability for uncertain tax positions in Other liabilities, with the remaining $0.2 million and $7.8 million, respectively, included as a reduction of Income taxes receivable in Receivables.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns.

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