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v3.22.2.2

Mortgage Servicing | 9 Months Ended
--- | ---
Sep. 30, 2022
Transfers and Servicing [Abstract] |
Mortgage Servicing |
Note 7 – Mortgage Servicing
MSRs – At Fair Value | Three Months Ended September 30,
2022 |  | 2021
| Agency |  | Non-Agency |  | Total |  | Agency |  | Non-Agency |  | Total
Beginning balance | $ | 1,816,604 |  |  | $ | 669,075 |  |  | $ | 2,485,679 |  |  | $ | 1,408,420 |  |  | $ | 664,098 |  |  | $ | 2,072,518 |
Sales of MSRs | 3 |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | — |
Additions: |  |  |  |  |  |  |  |  |  |  |
Recognized on the sale of residential mortgage loans | 70,225 |  |  | — |  |  | 70,225 |  |  | 66,420 |  |  | — |  |  | 66,420 |
Purchase of MSRs | 75,461 |  |  | — |  |  | 75,461 |  |  | 36,153 |  |  | — |  |  | 36,153 |
Servicing transfers and adjustments (1) | (39,052) |  |  | (83) |  |  | (39,135) |  |  | 17 |  |  | (4,723) |  |  | (4,706) |
Changes in fair value: |  |  |  |  |  |  |  |  |  |  |
Changes in valuation inputs or assumptions | 99,099 |  |  | 91,546 |  |  | 190,645 |  |  | 6,983 |  |  | 67,836 |  |  | 74,819 |
Realization of expected cash flows | (46,891) |  |  | (21,762) |  |  | (68,653) |  |  | (38,186) |  |  | (30,758) |  |  | (68,944) |
Ending balance | $ | 1,975,449 |  |  | $ | 738,776 |  |  | $ | 2,714,225 |  |  | $ | 1,479,807 |  |  | $ | 696,453 |  |  | $ | 2,176,260 |
MSRs – At Fair Value | Nine Months Ended September 30,
2022 |  | 2021
| Agency |  | Non-Agency |  | Total |  | Agency |  | Non-Agency |  | Total
Beginning balance | $ | 1,571,837 |  |  | $ | 678,310 |  |  | $ | 2,250,147 |  |  | $ | 578,957 |  |  | $ | 715,860 |  |  | $ | 1,294,817 |
Sales of MSRs | (149,336) |  |  | (24) |  |  | (149,360) |  |  | — |  |  | — |  |  | — |
Additions: |  |  |  |  |  |  |  |  |  |  |
Recognized on the sale of residential mortgage loans | 176,190 |  |  | — |  |  | 176,190 |  |  | 136,482 |  |  | — |  |  | 136,482 |
Purchase of MSRs | 159,123 |  |  | — |  |  | 159,123 |  |  | 806,469 |  |  | — |  |  | 806,469 |
Servicing transfers and adjustments (1) | (24,331) |  |  | (907) |  |  | (25,238) |  |  | 73 |  |  | (6,913) |  |  | (6,841) |
Changes in fair value: |  |  |  |  |  |  |  |  |  |  |
Changes in valuation inputs or assumptions | 379,530 |  |  | 132,888 |  |  | 512,418 |  |  | 47,132 |  |  | 73,306 |  |  | 120,438 |
Realization of expected cash flows | (137,564) |  |  | (71,491) |  |  | (209,055) |  |  | (89,306) |  |  | (85,800) |  |  | (175,106) |
Ending balance | $ | 1,975,449 |  |  | $ | 738,776 |  |  | $ | 2,714,225 |  |  | $ | 1,479,807 |  |  | $ | 696,453 |  |  | $ | 2,176,260 |
(1)Servicing transfers and adjustments for the three months ended September 30, 2022 include a $39.0 million derecognition of MSRs previously sold to MAV in a transaction which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $2.9 billion from our balance sheet upon the sale of the MSRs by MAV to a third party in the three months ended September 30, 2022. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for further information. The following table summarizes delinquency status of the loans underlying our MSRs:
| September 30, 2022 |  | December 31, 2021
Delinquent loans | Agency |  | Non - Agency |  | Total |  | Agency |  | Non - Agency |  | Total
30 days | 1.5 | % |  | 7.6 | % |  | 4.3 | % |  | 1.4 | % |  | 7.2 | % |  | 4.1 | %
60 days | 0.4 |  |  | 2.9 |  |  | 1.5 |  |  | 0.4 |  |  | 2.8 |  |  | 1.6 |
90 days or more | 1.2 |  |  | 8.2 |  |  | 4.4 |  |  | 1.9 |  |  | 8.0 |  |  | 4.8 |
Total 30-60-90 days or more | 3.1 | % |  | 18.7 | % |  | 10.2 | % |  | 3.7 | % |  | 18.0 | % |  | 10.5 | %
MSR UPB and Fair Value
| September 30, 2022 |  | December 31, 2021 |  | September 30, 2021
| Fair Value | UPB |  | Fair Value | UPB |  | Fair Value | UPB
Owned MSRs | $ | 1,742,978 |  | $ | 123,440,335 |  |  | $ | 1,422,546 |  | $ | 127,919,800 |  |  | $ | 1,457,347 |  | $ | 136,316,900 |
Rithm transferred MSRs (1) (2) | 604,654 |  | 48,354,675 |  |  | 558,940 |  | 53,652,843 |  |  | 574,020 |  | 56,141,289 |
MAV transferred MSRs (1) | 366,593 |  | 26,194,483 |  |  | 268,661 |  | 24,018,904 |  |  | 144,893 |  | 13,570,892 |
Total | $ | 2,714,225 |  | $ | 197,989,493 |  |  | $ | 2,250,147 |  | $ | 205,591,547 |  |  | $ | 2,176,260 |  | $ | 206,029,081 |
(1)MSRs subject to sale agreements with Rithm and MAV that do not meet sale accounting criteria. During the nine months ended September 30, 2022 , we transferred MSRs with a UPB of $7.1 billion to MAV. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. (2)At September 30, 2022, the UPB of MSRs transferred to Rithm for which title is retained by Ocwen was $11.0 billion and the UPB of MSRs transferred to Rithm for which title has passed was $37.3 billion. We purchased MSRs with a UPB of $13.7 billion and $72.2 billion from unrelated third-parties during the nine months ended September 30, 2022 and 2021, respectively. We sold MSRs, service released, with a UPB of $11.1 billion and $18.0 million during the nine months ended September 30, 2022 and 2021, respectively, to unrelated third parties. Servicing Revenue
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2022 |  | 2021 |  | 2022 |  | 2021
Loan servicing and subservicing fees |  |  |  |  |  |  |
Servicing | $ | 83,348 |  |  | $ | 103,094 |  |  | $ | 252,773 |  |  | $ | 246,363 |
Subservicing | 18,858 |  |  | 2,867 |  |  | 53,890 |  |  | 8,971 |
MAV (1) | 19,275 |  |  | 1,575 |  |  | 54,735 |  |  | 1,575 |
Rithm (1) | 63,362 |  |  | 75,034 |  |  | 195,237 |  |  | 233,135 |
| 184,844 |  |  | 182,570 |  |  | 556,635 |  |  | 490,044 |
Ancillary income |  |  |  |  |  |  |
Late charges | 10,559 |  |  | 10,656 |  |  | 32,317 |  |  | 31,335 |
Reverse subservicing ancillary fees | 4,918 |  |  | — |  |  | 14,308 |  |  | — |
Recording fees | 1,819 |  |  | 3,726 |  |  | 7,693 |  |  | 10,579 |
Loan collection fees | 2,644 |  |  | 2,858 |  |  | 8,463 |  |  | 8,568 |
Boarding and deboarding fees | 769 |  |  | 1,627 |  |  | 4,394 |  |  | 6,830 |
Custodial accounts (float earnings) | 7,521 |  |  | 1,234 |  |  | 10,307 |  |  | 3,547 |
GSE forbearance fees | 219 |  |  | 262 |  |  | 583 |  |  | 1,334 |
Other, net | 2,268 |  |  | 3,652 |  |  | 8,616 |  |  | 10,525 |
| 30,718 |  |  | 24,016 |  |  | 86,681 |  |  | 72,720 |
Total Servicing and subservicing fees | $ | 215,562 |  |  | $ | 206,585 |  |  | $ | 643,316 |  |  | $ | 562,764 |
(1)Includes servicing fees related to transferred MSRs and subservicing fees. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. Float balances (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers on behalf of investors) are held in escrow by unaffiliated banks and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $2.0 billion, $2.1 billion and $3.3 billion at September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -Subparagraph (c)(3) -URI 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