Commitments

6 Months Ended

Jun. 30, 2022


Note 21 — Commitments

Unfunded Lending Commitments

We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $1.7 billion at June 30, 2022. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. During the six months ended June 30, 2022, we funded $114.6 million out of the $1.5 billion borrowing capacity as of December 31, 2021. We also had short-term commitments to lend $526.2 million and $31.2 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at June 30, 2022. 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). Our subservicing clients bear the financial obligation and risks associated with purchasing loans out of securitization pools within the portfolio we subservice.

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


	Six Months Ended June 30, 2022
	Active			Inactive			Total
	Number	Amount		Number	Amount		Number	Amount
Beginning balance	138	$	35,322	448	$	93,813	586	$	129,135
Additions	262	70,611		106	26,014		368	96,625
Recoveries, net (1)	(215)	(58,179)		(106)	(23,067)		(321)	(81,246)
Transfers	(11)	(3,656)		11	3,656		—	—
Changes in value	—	69		—	(1,836)		—	(1,767)
Ending balance	174	$	44,167	459	$	98,580	633	$	142,747

(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 June 30, 2022, our servicing portfolio included significant client relationships with NRZ which represented 18% and 28% of our servicing portfolio UPB and loan count, respectively, and approximately 69% of all delinquent loans that Ocwen services. Our Subservicing Agreements and Servicing Addendum with NRZ are in their Second Terms that end December 31, 2023. At the end of the Second Term, subject to notice by October 1, 2023, NRZ has the right to terminate the Subservicing Agreements and Servicing Addendum for convenience. If NRZ exercised its right to terminate all or some of the agreements for convenience at the end of the Second Term on December 31, 2023, we might need to right-size certain aspects of our servicing business as well as the related corporate support functions. Receivables and Other liabilities recorded on our consolidated balance sheets as well as the impacts to our consolidated statements of operations in connection with our NRZ agreements are disclosed in Note 8 — MSR Transfers Not Qualifying for Sale Accounting.