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v3.22.4

Mortgage Servicing | 12 Months Ended
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Dec. 31, 2022
Transfers and Servicing [Abstract] |
Mortgage Servicing | Note 7 — Mortgage Servicing During each period, we remeasure our MSRs at fair value, which contemplates the receipt or nonreceipt of the servicing income for that period. The servicing income, including expectations of future servicing cash flows, are inputs for the measurement of the MSR fair value. The net result on the statement of operations is that we record the contractual cash received in each period as revenue within Servicing and subservicing fees, partially offset by the remeasurement of the MSR fair value within MSR valuation adjustments, net.
Mortgage Servicing Rights – Fair Value Measurement Method | Years Ended December 31,
2022 |  | 2021 |  | 2020
| Agency |  | Non-Agency |  | Total |  | Agency |  | Non-Agency |  | Total |  | Agency |  | Non-Agency |  | Total
Beginning balance | $ | 1,571.8 |  |  | $ | 678.3 |  |  | $ | 2,250.1 |  |  | $ | 578.9 |  |  | $ | 715.9 |  |  | $ | 1,294.8 |  |  | $ | 714.0 |  |  | $ | 772.4 |  |  | $ | 1,486.4 |
Sales | (154.4) |  |  | — |  |  | (154.4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.1) |  |  | (0.1) |
Additions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recognized on the sale of residential mortgage loans | 234.7 |  |  | — |  |  | 234.7 |  |  | 222.7 |  |  | — |  |  | 222.7 |  |  | 68.7 |  |  | — |  |  | 68.7 |
Purchase of MSRs | 181.6 |  |  | — |  |  | 181.6 |  |  | 844.1 |  |  | — |  |  | 844.1 |  |  | 285.1 |  |  | — |  |  | 285.1 |
Servicing transfers and adjustments (1) | (24.3) |  |  | (0.9) |  |  | (25.3) |  |  | 0.1 |  |  | (10.9) |  |  | (10.8) |  |  | (266.2) |  |  | 0.4 |  |  | (265.8) |
Net additions (sales) | 237.6 |  |  | (0.9) |  |  | 236.6 |  |  | 1,067.0 |  |  | (10.9) |  |  | 1,056.0 |  |  | 87.6 |  |  | 0.3 |  |  | 87.9 |
Changes in fair value recognized in earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Changes in valuation inputs or assumptions | 307.8 |  |  | 146.2 |  |  | 454.0 |  |  | 62.4 |  |  | 87.1 |  |  | 149.5 |  |  | (145.3) |  |  | 37.3 |  |  | (108.1) |
Realization of cash flows | (185.4) |  |  | (90.1) |  |  | (275.5) |  |  | (136.5) |  |  | (113.7) |  |  | (250.2) |  |  | (77.4) |  |  | (94.0) |  |  | (171.4) |
Fair value gains (losses) recognized in earnings | 122.4 |  |  | 56.1 |  |  | 178.5 |  |  | (74.1) |  |  | (26.7) |  |  | (100.7) |  |  | (222.7) |  |  | (56.8) |  |  | (279.5) |
Ending balance | $ | 1,931.8 |  |  | $ | 733.5 |  |  | $ | 2,665.2 |  |  | $ | 1,571.8 |  |  | $ | 678.3 |  |  | $ | 2,250.1 |  |  | $ | 578.9 |  |  | $ | 715.9 |  |  | $ | 1,294.8 |
(1)Servicing transfers and adjustments for 2022 include a $39.0 million derecognition of Agency 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. Servicing transfers and adjustments for 2020 include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the PMC subservicing agreement by Rithm. See Note 8 — Other Financing Liabilities, at Fair Value for further information.
| December 31, 2022 |  | December 31, 2021
Delinquent loans | Agency |  | Non - Agency |  | Total |  | Agency |  | Non - Agency |  | Total
30 days | 1.7 | % |  | 8.5 | % |  | 4.8 | % |  | 1.4 | % |  | 7.2 | % |  | 4.1 | %
60 days | 0.5 |  |  | 3.3 |  |  | 1.8 |  |  | 0.4 |  |  | 2.8 |  |  | 1.6 |
90 days or more | 1.1 |  |  | 8.6 |  |  | 4.5 |  |  | 1.9 |  |  | 8.0 |  |  | 4.8 |
Total 30-60-90 days or more | 3.3 | % |  | 20.4 | % |  | 11.1 | % |  | 3.7 | % |  | 18.0 | % |  | 10.5 | %
| December 31, 2022 |  | December 31, 2021
| Fair Value |  | UPB ($ billions) |  | Fair Value |  | UPB ($ billions)
Owned MSRs | $ | 1,710.6 |  |  | $ | 126.2 |  |  | $ | 1,422.5 |  |  | $ | 127.9 |
Rithm transferred MSRs (1) (2) | 601.2 |  |  | 47.3 |  |  | 558.9 |  |  | 53.7 |
MAV transferred MSRs (1) | 353.4 |  |  | 26.1 |  |  | 268.7 |  |  | 24.0 |
Total MSRs | $ | 2,665.2 |  |  | $ | 199.6 |  |  | $ | 2,250.1 |  |  | $ | 205.6 |
(1)MSRs subject to sale agreements with Rithm and MAV that do not meet sale accounting criteria. During 2022 and 2021, we transferred MSRs with a UPB of $7.4 billion and $24.9 billion to MAV. See Note 8 — Other Financing Liabilities, at Fair Value. (2)At December 31, 2022, the UPB of MSRs transferred to Rithm for which title is retained by Ocwen was $10.8 billion and the UPB of MSRs transferred to Rithm for which title has passed was $36.4 billion. We purchased MSRs with a UPB of $15.7 billion, $75.6 billion and $31.7 billion during 2022, 2021 and 2020, respectively. Purchases during 2021 include a bulk MSR acquisition of performing GSE loans from an unrelated third-party effective June 1, 2021, with a UPB and fair value of $46.8 billion and $575.3 million, respectively. We sold MSRs with a UPB of $11.7 billion, $32.0 million and $80.0 million during 2022, 2021 and 2020, respectively, to unrelated third parties, mostly to Freddie Mac under the Voluntary Partial Cancellation (VPC) program for delinquent loans. The geographic concentration of the UPB of residential loans and real estate we serviced and subserviced at December 31, 2022 was as follows:
(Dollars in billions) (Count in thousands) | Amount |  | Count
California | $ | 68.9 |  |  | 224.8 |
Texas | 20.8 |  |  | 117.6 |
Florida | 19.3 |  |  | 109.1 |
New York | 19.2 |  |  | 69.9 |
New Jersey | 14.1 |  |  | 56.1 |
Other | 147.5 |  |  | 801.3 |
| $ | 289.8 |  |  | 1,378.8 |
| Years Ended December 31,
Servicing Revenue | 2022 |  | 2021 |  | 2020
Loan servicing and subservicing fees |  |  |  |  |
Servicing | $ | 337.8 |  |  | $ | 339.2 |  |  | $ | 216.3 |
Subservicing | 72.9 |  |  | 21.1 |  |  | 28.9 |
MAV (1) | 72.8 |  |  | 15.7 |  |  | — |
Rithm (1) | 255.0 |  |  | 304.2 |  |  | 383.7 |
Total loan servicing and subservicing fees | 738.5 |  |  | 680.3 |  |  | 628.8 |
Ancillary income |  |  |  |  |
Late charges | 41.0 |  |  | 40.9 |  |  | 47.7 |
Custodial accounts (float earnings) | 26.2 |  |  | 4.7 |  |  | 9.9 |
Reverse subservicing ancillary income | 20.4 |  |  | 1.4 |  |  | — |
Loan collection fees | 11.1 |  |  | 11.7 |  |  | 12.9 |
Recording fees | 8.5 |  |  | 16.0 |  |  | 14.3 |
Boarding and deboarding fees | 5.8 |  |  | 10.5 |  |  | 11.1 |
GSE forbearance fees | 0.8 |  |  | 1.5 |  |  | 1.2 |
Other | 10.3 |  |  | 14.8 |  |  | 11.3 |
Total ancillary income | 124.1 |  |  | 101.6 |  |  | 108.5 |
| $ | 862.6 |  |  | $ | 781.9 |  |  | $ | 737.3 |
(1)Includes servicing fees related to transferred MSRs and subservicing fees. See Note 8 — Other Financing Liabilities, at Fair Value. Float balances on which we earn interest, referred to as float earnings (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 consolidated balance sheets. Float balances amounted to $1.54 billion, $2.07 billion and $1.74 billion at December 31, 2022, 2021 and 2020, 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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