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Borrowings (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Financing Liabilities
The following tables presents transferred MSR liabilities recorded in connection with MSR sales and transfers that do not qualify for sale accounting and liabilities of consolidated mortgage-backed securitization trusts.
Outstanding Balance
Borrowing TypeCollateralMaturityMarch 31, 2022December 31, 2021
Original Rights to MSRs Agreements, at fair value - NRZ (1)MSRs (1)$545,306 $558,940 
Pledged MSR liability, at fair value - MAV (1)MSRs(1)319,009 238,144 
864,315 797,084 
Financing liability - Owed to securitization investors, at fair value:
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2)Loans held for investment Oct. 20337,721 7,879 
Total Other financing liabilities, at fair value$872,036 $804,963 
(1)See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for additional information.
(2)Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that we include in our unaudited consolidated financial statements. Holders of the debt issued by the consolidated securitization trust entities have recourse only to the assets of the SPE for satisfaction of the debt and have no recourse against the assets of Ocwen. Similarly, the general creditors of Ocwen have no claim on the assets of the trusts. The certificates in the trust pay interest based on fixed rates ranging between 4.25% and 5.75% and a variable rate based on 1ML plus applicable margin, and include principal-only certificates that are not entitled to receive distributions of interest. The maturity of the certificates occurs upon maturity of the loans held by the trust.
Schedule of Match Funded Liabilities
Advance Match Funded Liabilities
Borrowing CapacityOutstanding Balance
Borrowing TypeMaturity (1)Amort. Date (1)Total Available (2)March 31, 2022December 31, 2021
Advance Receivables Backed Notes - Series 2015-VF5 (3)Jun. 2052Jun. 2022$80,000 $67,213 $12,787 $14,231 
Advance Receivables Backed Notes, Series 2020-T1 (4)Aug. 2052Aug. 2022445,000 — 445,000 475,000 
Total Ocwen Master Advance Receivables Trust (OMART)525,000 67,213 457,787 489,231 
Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)
Aug. 2052Aug. 202240,000 477 39,523 23,065 
Total Servicing Advance Financing Facilities$565,000 $67,690 $497,310 $512,297 
Weighted average interest rate (6)1.57 %1.54 %
(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. After the amortization date for each note, 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)The committed borrowing capacity under the OMART and OGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At March 31, 2022, $1.6 million of the available borrowing capacity of the OMART and OGAF 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 applicable margin.
(4)The interest rates on the individual classes of notes range between 1.28% to 5.42%.
(5)Interest is computed based on the lender’s cost of funds plus applicable margin. On January 31, 2022, we amended the Ocwen Freddie Advance Funding (OFAF) advance facility to include Fannie Mae advances as eligible collateral and renamed the facility Ocwen GSE Advance Funding (OGAF).
(6)The weighted average interest rate, excluding the effect of the amortization of prepaid lender fees, is computed using the outstanding balance of each respective note and its interest rate at the financial statement date. At March 31, 2022 and December 31, 2021, the balance of unamortized prepaid lender fees was $0.9 million and $1.3 million, respectively, and are included in Other assets in our consolidated balance sheets.
Schedule of Mortgage Loan Warehouse, MSR Financing Facilities and SSTL
Mortgage Loan Warehouse FacilitiesAvailable Borrowing Capacity Outstanding Balance
Borrowing TypeCollateralMaturityUncommittedCommitted (1)March 31, 2022Dec. 31, 2021
Master repurchase agreement (2)Loans held for sale (LHFS), Receivables and REOJune 2022$115,000 $53,249 $106,751 $109,437 
Master repurchase agreement (3)LHFS and Loans Held for Investment (LHFI)Dec. 2022231,396 — 218,604 160,882 
Master repurchase agreement (4)N/AN/A50,000 — — — 
Participation agreement (5)LHFSJune 2022150,000 — — 45,186 
Master repurchase agreement (5)LHFSJune 2022— 62,459 37,541 1,766 
Master repurchase agreement LHFSJune 2022— 1,000 — — 
Mortgage warehouse agreement (6)LHFSMar. 2023— 43,133 6,867 11,792 
Mortgage warehouse agreement (7)LHFS and LHFIDec. 2022135,638 — 68,362 87,813 
Mortgage warehouse agreement (8)LHFS and Receivables(8)44,617 — 205,383 192,023 
Master repurchase agreement (9)LHFS(9)— — 280,271 459,344 
Loan and security agreement (10)LHFS and ReceivablesApr. 2022— 14,659 35,341 16,834 
Total mortgage loan warehouse facilities$726,651 $174,500 $959,121 $1,085,076 
Weighted average interest rate (11)2.90 %2.61 %
(1)Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, $5.4 million of the available borrowing capacity could be used at March 31, 2022 based on the amount of eligible collateral that could be pledged.
(2)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. The interest rate for this facility was 1ML plus applicable margin.
(3)The maximum borrowing under this agreement is $450.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. The interest rate for this facility was 1ML plus applicable margin.
(4)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). The interest rate for this facility was SOFR plus applicable margin, with a SOFR floor of 25 bps.
(5)The uncommitted borrowing capacity under the participation agreement is $150.0 million and the committed borrowing capacity under the repurchase agreement is $100.0 million. The interest rate on repurchase agreement is the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor of 3.00% for new originations and less applicable margin with an interest rate floor of 3.25% for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean up loans. The interest rate on the participation agreement is the stated interest rate of the mortgage loans, less applicable margin with a floor of 3.00% for new originations. The agreements allow the lender to acquire a 100% beneficial interest in the underlying mortgage loans.
(6)Under this agreement, the lender provides financing for up to $50.0 million on a committed basis. The interest rate for this facility was modified to SOFR plus applicable margin with an interest rate floor of 5.00%. On January 14, 2022, the maturity date of this facility was extended to March 16, 2022 when it was further extended to March 16, 2023.
(7)Under this agreement, the lender provides financing for up to $204.0 million on an uncommitted basis. On February 20, 2022, the interest rate for this facility was modified to SOFR plus applicable margin, with an interest rate floor of 2.45%.
(8)The total borrowing capacity of this facility, all of which is uncommitted, was increased from $200.0 million to $250.0 million on January 5, 2022. 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 and type of the collateral.
(9)This repurchase agreement 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 transferred to a trust which issues a trust certificate that is pledged as the collateral for the borrowings. See Note 2 – Securitizations and Variable Interest Entities for additional information. Each certificate is renewed monthly and the interest rate for this facility is 1ML plus applicable margin. We voluntarily reduced the trust certificates by $75.0 million on January 27, 2022 and by an additional $100.0 million on February 28, 2022. Subsequently, we further voluntarily reduced the certificates by $50.0 million on April 22, 2022.
(10)This revolving facility agreement provides up to $50.0 million of committed borrowing capacity secured by eligible HECM loans that are active buyouts (ABO), as defined in the agreement. The interest rate for this facility is Prime Rate plus applicable margin, with an interest rate floor of 450 bps.
(11)1ML was 0.45% and 0.10% at March 31, 2022 and December 31, 2021, respectively. Prime Rate was 3.25% at March 31, 2022 and December 31, 2021. The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At March 31, 2022 and December 31, 2021, unamortized prepaid lender fees were $1.0 million and $1.2 million, respectively, and are included in Other assets in our consolidated balance sheets.
MSR financing facilities, netAvailable Borrowing CapacityOutstanding Balance
Borrowing TypeCollateralMaturityUncommittedCommitted (1)March 31, 2022December 31, 2021
Agency MSR financing facility (2)MSRsJune 2022$— $67,649 $282,351 $317,523 
Ginnie Mae MSR financing facility (3)MSRs, AdvancesFeb. 202345,104 — 129,896 131,694 
Ocwen Excess Spread-Collateralized Notes, Series 2019/2022-PLS1 (4)MSRsFeb. 2025— — 72,838 41,663 
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5)MSRsFeb. 2028— — 37,643 39,529 
Agency MSR financing facility - revolving loan (6)MSRsJune 2026— 7,929 277,071 277,071 
Agency MSR financing facility - term loan (6)MSRsJune 2023— — 94,178 94,178 
Total MSR financing facilities$45,104 $75,578 $893,977 901,658 
Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7)(1,342)(898)
Total MSR financing facilities, net$892,635 $900,760 
Weighted average interest rate (8) (9)3.39%3.71%
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, $40.4 million of the available borrowing capacity could be used at March 31, 2022 based on the amount of eligible collateral that could be pledged.
(2)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 $350.0 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 the facility. 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. The interest rate for this facility is 1ML plus applicable margin.
(3)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 servicing advances 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 and servicing advances. Ocwen guarantees the obligations of PMC under the facility. See (2) above regarding daily margining requirements. On January 31, 2022, the maturity date of this facility was extended to February 28, 2022. On February 28, 2022, the maturity date was extended to February 28, 2023, the borrowing capacity was increased from $150.0 million to $175.0 million ($50.0 million available on a committed basis) and the interest rate was modified to adjusted daily simple SOFR plus applicable margin (adjusted SOFR floor of 25 bps).
(4)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 a fixed interest rate of 5.07%. On March 15, 2022, we replaced the existing notes with a new series of notes (Series 2022-PLS1) at an initial principal amount of $75.0 million and a fixed interest rate of 5.114%. The principal balance amortizes in accordance with a predetermined schedule subject to modification under certain events, with a final payment due in February 2025. See Note 2 – Securitizations and Variable Interest Entities for additional information.
(5)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.
(6)This facility includes a $94.2 million ($135.0 million original balance) term loan and a $285.0 million revolving loan secured by a lien on PMC’s Agency MSRs. See (2) above regarding daily margining requirements. The interest rate for this facility is the 1-year swap rate plus applicable margin.
(7)At March 31, 2022 and December 31, 2021, unamortized debt issuance costs included $1.3 million and $0.9 million, respectively. on the PLS Notes and the Agency MSR financing facility - term loan. At March 31, 2022 and December 31, 2021, unamortized prepaid lender fees related to revolving type MSR financing facilities were $4.2 million and $4.7 million, respectively, and are included in Other assets in our consolidated balance sheets.
(8)Weighted average interest rate at, excluding the effect of the amortization of debt issuance costs and prepaid lender fees.
(9)1ML was 0.45% and 0.10% at March 31, 2022 and December 31, 2021, respectively. The 1-year swap rate was 0.19% at March 31, 2022 and December 31, 2021, respectively.
Schedule of Senior Notes
Senior NotesInterest Rate (1)MaturityOutstanding Balance
March 31, 2022December 31, 2021
PMC Senior Secured Notes7.875%March 2026$400,000 $400,000 
OFC Senior Secured Notes (due to related parties)
12% paid in cash or 13.25% paid-in-kind (see below)
March 2027285,000 285,000 
Principal balance685,000 685,000 
Discount (2)
PMC Senior Secured Notes(1,670)(1,758)
OFC Senior Secured Notes (3)(52,480)(54,176)
(54,150)(55,934)
Unamortized debt issuance costs (2)
PMC Senior Secured Notes(5,402)(5,687)
OFC Senior Secured Notes(8,316)(8,582)
(13,718)(14,269)
$617,132 $614,797 
(1)Excluding the effect of the amortization of debt issuance costs and discount.
(2)The discount and debt issuance costs are amortized to interest expense through the maturity of the respective notes.
(3)Includes original issue discount (OID) and additional discount related to the concurrent issuance of warrants and common stock. See below for additional information.
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 
Schedule of Assets Held as Collateral Related to Secured Borrowings
Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at March 31, 2022:
AssetsPledged
Assets		Collateralized BorrowingsUnencumbered Assets (1)
Cash$268,691 $— $— $268,691 
Restricted cash76,294 76,294 — — 
Loans held for sale725,051 686,640 709,719 38,412 
Loans held for investment - securitized (2)7,202,045 7,202,045 7,118,844 — 
Loans held for investment - unsecuritized249,510 214,352 195,781 35,158 
MSRs (3)1,435,181 1,434,480 814,530 701 
Advances, net729,973 609,225 576,757 120,747 
Receivables, net213,460 51,623 49,122 161,836 
REO11,158 6,560 4,498 4,598 
Total (4)$10,911,363 $10,281,220 $9,469,251 $630,143 
(1)Certain assets are pledged as collateral to the $400.0 million PMC Senior Secured Notes and $285.0 million OFC Senior Secured (second lien) Notes.
(2)Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PMC in connection with certain claims relating to the performance and obligations of PMC as both issuer of HMBS and servicer of HECMs underlying HMBS.
(3)Excludes MSRs transferred to NRZ and MAV and associated Pledged MSR liability recorded as sale accounting criteria are not met.
(4)The total of selected assets disclosed in the above table does not represent the total consolidated assets of Ocwen. For example, the total excludes premises and equipment and certain other assets.
Schedule of Second Lien Priority on Specified Assets Carried on Balance Sheet
March 31, 2022
Specified net servicing advances$157,311
Specified deferred servicing fee23,081
Specified MSR value less borrowings731,436
Specified unrestricted cash balances155,785
Specified advance facility reserves6,574
Specified loan value68,526
Specified residual value40,200
Specified fair value of marketable securities—
Total (PMC)$1,182,912