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Borrowings (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Match Funded Liabilities
Advance Match Funded Liabilities
Borrowing CapacityOutstanding Balance
Borrowing TypeMaturity (1)Amort. Date (1)Total Available (2)June 30, 2022December 31, 2021
Advance Receivables Backed Notes - Series 2015-VF5 (3)Jun. 2052Aug. 2022$80,000 $73,165 $6,835 $14,231 
Advance Receivables Backed Notes, Series 2020-T1 (4)Aug. 2052Aug. 2022430,000 — 430,000 475,000 
Total Ocwen Master Advance Receivables Trust (OMART)510,000 73,165 436,835 489,231 
Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5)
Aug. 2052Aug. 202240,000 1,348 38,652 23,065 
EBO Advance facility (6)May 2026May 202620,000 18,509 $1,491 $— 
Total Servicing Advance Financing Facilities$570,000 $93,022 $476,978 $512,297 
Weighted average interest rate (7)1.65 %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 June 30, 2022, none of the available borrowing capacity of the OMART and OGAF advance financing notes could be used based on the amount of eligible collateral.
(3)On June 30, 2022, the amortization date was extended to August 15, 2022. 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)On May 2, 2022, we entered into a loan and security agreement and issued a $1.7 million promissory note to the lender. The facility has total uncommitted borrowing capacity of $20.0 million to finance the acquisition of advances in connection with the early buyout of certain fixed-rate, fully-amortizing FHA-insured residential mortgage loans, at an interest rate of 1M Term Secured Overnight Financing Rate (SOFR) plus applicable margin. At June 30, 2022, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral.
(7)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 June 30, 2022 and December 31, 2021, the balance of unamortized prepaid lender fees was $0.3 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)June 30, 2022Dec. 31, 2021
Master repurchase agreement (2)Loans held for sale (LHFS), Receivables and REOAug. 2022$115,000 $71,047 $88,953 $109,437 
Master repurchase agreement (3)LHFS and Loans Held for Investment (LHFI)Dec. 2022250,000 112,213 87,787 160,882 
Master repurchase agreement (4)LHFSN/A50,000 — — — 
Participation agreement (5)LHFSJune 2023150,000 — — 45,186 
Master repurchase agreement (5)LHFSJune 2023— 42,415 130,585 1,766 
Master repurchase agreementLHFSJune 2023— 1,000 — — 
Mortgage warehouse agreement (6)LHFS and LHFIMar. 2023— 36,742 13,258 11,792 
Mortgage warehouse agreement (7)LHFS and LHFIMar. 2023146,523 — 57,477 87,813 
Mortgage warehouse agreement (8)LHFS and Receivables(8)200,764 — 29,236 192,023 
Master repurchase agreement (9)LHFS(9)— — 126,098 459,344 
Loan and security agreement (10)LHFS and ReceivablesMar. 2023— 25,133 24,867 16,834 
Master repurchase agreement (11)LHFSApr. 2023128,993 — 221,007 — 
Total mortgage loan warehouse facilities$1,041,280 $288,549 $779,270 $1,085,076 
Weighted average interest rate (12)3.25 %2.61 %
(1)Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, $1.9 million of the available borrowing capacity could be used at June 30, 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. On June 29, 2022, the maturity date of the facility was extended to August 1, 2022 and the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin. On July 29, 2022, the total maximum borrowing under this agreement was reduced to $175.0 million and the maturity date was extended to August 31, 2022. The borrowing available on a committed basis was reduced to $50.0 million and uncommitted capacity was increased to $125.0 million.
(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 SOFR. The interest rate for this facility is SOFR plus applicable margin, with a SOFR floor of 25 bps.
(5)The uncommitted borrowing capacity under the participation agreement is $150.0 million. On June 23, 2022, the maturity date of the participation agreement was extended to June 22 2023. Also on June 23, 2022, the committed borrowing capacity under the repurchase agreement was increased from $100.0 million to $173.0 million, the maturity date was extended to June 22, 2023, and, the interest rate was modified to 1M Term SOFR plus applicable margin, with an interest rate floor for Ginnie Mae modifications, Ginnie Mae buyouts
and RMBS bond clean-up loans. The previous interest rate on the repurchase agreement was the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor for new originations and less applicable margin with an interest rate floor for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean-up loans. The interest rate on the participation agreement was modified to the greater of the stated interest rate of the mortgage loans less an agreed upon servicing fee percentage or the 1M Term SOFR, plus the applicable margin. The previous interest rate was the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor 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 1M Term SOFR plus applicable margin with an interest rate floor. 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 1M Term SOFR plus applicable margin, with an interest rate floor. On June 16, 2022, the maturity date of the facility was extended to March 16, 2023.
(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. On May 2, 2022, $20.0 million of the uncommitted capacity of this facility was assigned to a new EBO advance facility.
(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. During first quarter of 2022, we voluntarily reduced the trust certificates by $175.0 million and by an additional $150.0 million during second quarter of 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. On April 29, 2022, the maturity date was extended to March 16, 2023 and the interest rate was modified from Prime Rate plus applicable margin (with an interest rate floor) to 1M Term SOFR plus applicable margin, with an interest rate floor..
(11)On April 11, 2022, we entered into a warehouse line (master repurchase agreement) with a total borrowing capacity of $350.0 million, of which $100.0 million is committed, to finance loans held for sale and loans held for investment at an interest rate of daily simple SOFR plus applicable margin.
(12)1ML was 1.79% and 0.10% at June 30, 2022 and December 31, 2021, respectively. Prime Rate was 3.25% at December 31, 2021, 1M Term SOFR was 1.69% and 0.55% at June 30, 2022 and December 31, 2021, respectively. The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At June 30, 2022 and December 31, 2021, unamortized prepaid lender fees were $1.1 million and $1.2 million, respectively, and are included in Other assets in our consolidated balance sheets.
MSR financing facilities, netAvailable Borrowing CapacityOutstanding Balance
Borrowing TypeCollateralMaturityUncommittedCommitted (1)June 30, 2022December 31, 2021
Agency MSR financing facility (2)MSRsJune 2023$— $60,963 $389,037 $317,523 
Ginnie Mae MSR financing facility (3)MSRs, AdvancesFeb. 202349,525 — 125,475 131,694 
Ocwen Excess Spread-Collateralized Notes, Series 2019/2022-PLS1 (4)MSRsFeb. 2025— — 67,131 41,663 
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5)MSRsFeb. 2028— — 36,047 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$49,525 $68,892 $988,939 901,658 
Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7)(1,227)(898)
Total MSR financing facilities, net$987,712 $900,760 
Weighted average interest rate (8) (9)5.36%3.71%
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, $10.6 million of the available borrowing capacity could be used at June 30, 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. On June 30, 2022, the maturity date was extended to June 30, 2023, the maximum amount which we may borrow pursuant to the repurchase agreements was increased to $450.0 million (from $350.0 million) on a committed basis and the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin. 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.
(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 June 30, 2022 and December 31, 2021, unamortized debt issuance costs included $1.2 million and $0.9 million, respectively. on the PLS Notes and the Agency MSR financing facility - term loan. At June 30, 2022 and December 31, 2021, unamortized prepaid lender fees related to revolving type MSR financing facilities were $5.4 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 1.79% and 0.10% at June 30, 2022 and December 31, 2021, respectively. The 1-year swap rate was 3.48% and 0.19% at June 30, 2022 and December 31, 2021, respectively. 1M Term SOFR was 1.69% and 0.55% at June 30, 2022 and December 31, 2021, respectively.
Schedule of Senior Notes
Senior NotesInterest Rate (1)MaturityOutstanding Balance
June 30, 2022December 31, 2021
PMC Senior Secured Notes7.875%March 2026$375,000 $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 balance660,000 685,000 
Discount (2)
PMC Senior Secured Notes(1,482)(1,758)
OFC Senior Secured Notes (3)(50,786)(54,176)
(52,268)(55,934)
Unamortized debt issuance costs (2)
PMC Senior Secured Notes(4,794)(5,687)
OFC Senior Secured Notes(8,049)(8,582)
(12,843)(14,269)
$594,889 $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 June 30, 2022:
AssetsPledged
Assets		Collateralized BorrowingsUnencumbered Assets (1)
Cash$255,885 $— $— $255,885 
Restricted cash66,690 66,690 — — 
Loans held for sale687,465 639,721 628,269 47,745 
Loans held for investment - securitized (2)7,220,774 7,220,774 7,155,251 — 
Loans held for investment - unsecuritized155,754 124,547 114,966 31,207 
MSRs (3)1,552,622 1,558,594 959,066 7,016 
Advances, net647,167 554,007 506,851 93,159 
Receivables, net178,480 33,155 32,221 145,324 
REO9,443 5,412 3,814 4,031 
Total (4)$10,774,280 $10,202,900 $9,400,438 $584,368 
(1)Certain assets are pledged as collateral to the $375.0 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. Pledged assets exceed the MSR asset balance due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral.
(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 The OFC Senior Secured Notes due 2027 have a second lien priority on specified assets carried on PMC’s balance sheet, as defined under the OFC Senior Secured Note Agreement and listed in the table below, and have a priority lien on the following assets: investments by OFC in subsidiaries not guaranteeing the $375.0 million PMC Senior Secured Notes, including PHH and MAV; cash and investment accounts at OFC; and certain other assets, including receivables.
June 30, 2022
Specified net servicing advances$116,635
Specified deferred servicing fee22,260
Specified MSR value less borrowings683,270
Specified unrestricted cash balances96,686
Specified advance facility reserves6,931
Specified loan value99,034
Specified residual value67,464
Specified fair value of marketable securities—
Total (PMC)$1,092,279