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Borrowings | 12 Months Ended
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Dec. 31, 2022
Debt Disclosure [Abstract] |
Borrowings | Note 13 — Borrowings
Advance Match Funded Liabilities |  | Borrowing Capacity |  |  |  | Outstanding Balance at December 31,
Borrowing Type |  | Maturity (1) |  | Amort. Date (1) |  | Total |  | Available (2) |  |  |  | 2022 |  |  |  | 2021
Advance Receivables Backed Notes - Series 2015-VF5 (3) |  | Aug. 2053 |  | Aug. 2023 |  | $ | 450.0 |  |  | $ | 27.5 |  |  |  |  | $ | 422.5 |  |  |  |  | $ | 14.2 |
Advance Receivables Backed Notes, Series 2020-T1 (4) |  | N/A |  | N/A |  | — |  |  | — |  |  |  |  | — |  |  |  |  | 475.0 |
Total Ocwen Master Advance Receivables Trust (OMART) |  | 450.0 |  |  | 27.5 |  |  |  |  | 422.5 |  |  |  |  | 489.2 |
Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (5) |  | Aug. 2053 |  | Aug. 2023 |  | 90.0 |  |  | — |  |  |  |  | 90.0 |  |  |  |  | 23.1 |
EBO Advance facility (6) |  | May 2026 |  | NA |  | 14.4 |  |  | 13.2 |  |  |  |  | 1.2 |  |  |  |  | — |
|  |  |  |  |  | $ | 554.4 |  |  | $ | 40.7 |  |  |  |  | $ | 513.7 |  |  |  |  | $ | 512.3 |
Weighted average interest rate (7) |  |  |  |  |  |  |  | 7.09 | % |  |  |  | 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 December 31, 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)Interest is computed based on the lender’s cost of funds plus applicable margin. Effective August 15, 2022, we extended the amortization date of Series 2015-VF5 variable funding notes to August 14, 2023, increased the borrowing capacity from $80.0 million to $450.0 million and modified the interest rate margins. (4)We voluntarily repaid the outstanding balance of the Series 2020-T1 term notes at the amortization date in August 2022 and replaced with variable funding notes. See (3) above. The range of interest rates on the individual classes of the repaid notes was 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). On August 26, 2022, the amortization date of the facility was extended to August 25, 2023, the committed borrowing capacity was increased from $40.0 million to $50.0 million and the interest rate margin was modified. On November 30, 2022, the committed borrowing capacity was further increased to $90.0 million. (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 $14.4 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 December 31, 2022, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. (7)1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and 2021, respectively. 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 December 31, 2022 and 2021, the balance of unamortized prepaid lender fees was $2.3 million and $1.3 million, respectively, and are included in Other assets in our consolidated balance sheets.
Mortgage Loan Warehouse Facilities |  |  |  | Available Borrowing Capacity |  | Outstanding Balance at December 31, |  |
Borrowing Type |  | Collateral |  |  |  | Maturity |  | Un-committed |  | Committed (1) |  | 2022 |  | 2021 |  |
Master repurchase agreement (2) |  | Loans held for sale (LHFS), Receivables and REO |  |  |  | August 2023 |  | $ | 32.8 |  |  | $ | — |  |  | $ | 142.2 |  | $ | 109.4 |  |
Master repurchase agreement (3) |  | LHFS and Loans held for investment (LHFI) |  |  |  | February 2023 |  | 250.0 |  |  | 99.7 |  |  | 100.3 |  | 160.9 |  |
Master repurchase agreement (4) |  | LHFS |  |  |  | N/A |  | 50.0 |  |  | — |  |  | — |  |  | — |  |
Participation agreement (5) |  | LHFS |  |  |  | June 2023 |  | 185.7 |  |  | — |  |  | 64.3 |  | 45.2 |  |
Master repurchase agreement (5) |  | LHFS and LHFI |  |  |  | June 2023 |  | — |  |  | 146.9 |  |  | 26.1 |  | 1.8 |  |  |
Master repurchase agreement |  | LHFS |  |  |  | June 2023 |  | — |  |  | 1.0 |  |  | — |  |  | — |  |  |
Mortgage warehouse agreement (6) |  | LHFS and LHFI |  |  |  | March 2023 |  | — |  |  | 42.2 |  |  | 7.8 |  | 11.8 |  |
Mortgage warehouse agreement (7) |  | LHFS and LHFI |  |  |  | March 2023 |  | 159.8 |  |  | — |  |  | 44.2 |  | 87.8 |  |  |
Mortgage warehouse agreement (8) |  | LHFS and Receivables |  |  |  | (8) |  | 208.1 |  |  | — |  |  | 21.9 |  | 192.0 |  |  |
Master repurchase agreement (9) |  | LHFS |  |  |  | (9) |  | — |  |  | — |  |  | — |  | 459.3 |  |  |
Loan and security agreement (10) |  | LHFS and Receivables |  |  |  | March 2023 |  | — |  |  | 42.8 |  |  | 7.2 |  | 16.8 |  |  |
Master repurchase agreement (11) |  | LHFS |  |  |  | April 2023 |  | 211.2 |  |  | — |  |  | 288.8 |  | — |  |  |
Total Mortgage loan warehouse facilities |  |  |  |  |  | $ | 1,097.6 |  |  | $ | 332.6 |  |  | $ | 702.7 |  | $ | 1,085.1 |  |
Weighted average interest rate (12) |  |  |  |  |  |  |  | 5.74 | % |  | 2.61 | % |  |
(1)Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, $11.1 million of the available borrowing capacity could be used at December 31, 2022 based on the amount of eligible collateral that could be pledged. (2)On June 29, 2022, 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 from $275.0 million to $175.0 million. The borrowing available on a committed basis was reduced to $50.0 million and uncommitted capacity was increased to $125.0 million. On August 31, 2022, along with maturity date extension, the applicable interest rate margins were modified. (3)On December 9, 2022, along with maturity date extension, the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin and specified margin adjustment (effective from November 14, 2022). On February 9, 2023, we voluntarily allowed the facility to mature and reduced the borrowed amount on the facility to zero. (4)This agreement has no stated maturity date and interest is based on the SOFR, plus applicable margin, with a SOFR floor. (5)On September 16, 2022, the uncommitted borrowing capacity under the participation agreement of $150.0 million was increased to $250.0 million. On June 23, 2022, along with the maturity date extension, 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. Effective February 9, 2023, the uncommitted borrowing capacity was increased to $350.0 million through June 22, 2023. On June 23, 2022, the committed borrowing capacity under the repurchase agreement was increased from $100.0 million to $173.0 million. Also on June 23, 2022, along with the maturity date extension, 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 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 participation and repurchase agreements allow the lender to acquire a 100% beneficial interest in the underlying mortgage loans. (6)During 2022, the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. (7)On February 20, 2022, the interest rate for this facility was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. (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 e ach transaction date and is based on the interest rate and type of the collateral. On May 2, 2022, the facility capacity was reduced to $230.0 million simultaneous with establishing the 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 2022, we voluntarily reduced the trust certificates by $450.0 million. (10)This revolving facility agreement is secured by eligible HECM loans that are active buyouts (ABO), as defined in the agreement. On April 29, 2022, along with maturity date extension, 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. On January 19, 2023, the temporary increase of the uncommitted capacity to $400.0 million was further extended through April 30, 2023. (12)1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. Prime Rate was 3.25% at December 31, 2021. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and 2021, respectively. The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At December 31, 2022 and 2021, unamortized prepaid lender fees were $0.5 million and $1.2 million, respectively, and are included in Other assets in our consolidated balance sheets.
MSR Financing Facilities, net |  |  |  | Available Borrowing Capacity |  | Outstanding Balance at December 31,
Borrowing Type |  | Collateral |  |  |  | Maturity |  | Un-committed |  | Committed (1) |  | 2022 |  | 2021
Agency MSR financing facility (2) |  | MSRs |  |  |  | June 2023 |  | $ | — |  |  | $ | 140.2 |  |  | $ | 309.8 |  | $ | 317.5
Ginnie Mae MSR financing facility (3) |  | MSRs, Advances |  |  |  | April 2023 |  | 17.1 |  |  | — |  |  | 157.9 |  | 131.7
Ocwen Excess Spread-Collateralized Notes, Series 2019/2022-PLS1 (4) |  | MSRs |  |  |  | February 2025 |  | — |  |  | — |  |  | 56.7 |  | 41.7
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) |  | MSRs |  |  |  | February 2028 |  | — |  |  | — |  |  | 33.4 |  | 39.5
Agency MSR financing facility - revolving loan (6) |  | MSRs |  |  |  | December 2025 |  | — |  |  | 3.2 |  |  | 396.8 |  | 277.1
Agency MSR financing facility - term loan (6) |  | MSRs |  |  |  | N/A |  | — |  |  | — |  |  | — |  | 94.2
Total MSR financing facilities |  |  |  |  |  | $ | 17.1 |  |  | $ | 143.4 |  |  | $ | 954.6 |  |  | $ | 901.7 |
Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7) |  |  |  |  |  |  |  | (0.8) |  | (0.9)
Total MSR financing facilities, net |  |  |  |  |  |  |  |  | $ | 953.8 |  | $ | 900.8
Weighted average interest rate (8) (9) |  |  |  |  |  |  |  | 7.31% |  | 3.71%
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, none of the available borrowing capacity could be used at December 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. On June 30, 2022, along with the maturity date extension, 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 February 28, 2022, along with the maturity date extension, 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 from 1ML plus applicable margin to adjusted daily simple SOFR plus applicable margin (with an adjusted SOFR floor). Effective February 28, 2023, the maturity date of this facility was extended to April 28, 2023 and the borrowing capacity was increased to $200.0 million ($50.0 million available on a committed basis). (4)The single class PLS Notes are an amortizing debt instrument with an initial principal amount of $100.0 million and a fixed interest rate of 5.07%. The PLS Notes are issued by a trust (PLS Issuer) that is included in our consolidated financial statements, and 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. On March 15, 2022, we replaced the existing notes (Series 2019-PLS1) with a new series of notes 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 originally included a $135.0 million term loan and a $285.0 million revolving loan secured by a lien on certain of PMC’s Agency MSRs. See (2) above regarding daily margining requirements. On September 1, 2022, the interest rate for this facility was modified from 1-year swap rate plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. On November 29, 2022, along with the maturity date extension, the term loan was repaid and the revolving loan capacity was increased to $400.0 million. Any outstanding borrowings on the revolving loan will convert into a term loan upon the two-year anniversary of the November 2022 amendment. (7)At December 31, 2022 and 2021, unamortized prepaid lender fees related to revolving type MSR financing facilities were $4.9 million and $4.7 million, respectively, and are included in Other assets in our consolidated balance sheets. (8)Weighted average interest rate at December 31, 2022 and December 31, 2021, excluding the effect of the amortization of debt issuance costs and prepaid lender fees. (9)1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. The 1-year swap rate was 0.19% at December 31, 2021. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and December 31, 2021, respectively. Senior Secured Term Loan, net On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance of our Senior Secured Term Loan (SSTL). The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million.
Senior Notes |  |  |  |  | Outstanding Balance at December 31,
| Interest Rate (1) |  | Maturity |  | 2022 |  | 2021
PMC Senior Secured Notes | 7.875% |  | March 2026 |  | $ | 375.0 |  |  | $ | 400.0 |
OFC Senior Secured Notes (due to related parties) | 12% paid in cash or 13.25% paid-in-kind (see below) |  | March 2027 |  | 285.0 |  |  | 285.0 |
Principal balance |  |  |  |  | 660.0 |  |  | 685.0 |
Discount (2) |  |  |  |  |  |  |
PMC Senior Secured Notes |  |  |  |  | (1.3) |  |  | (1.8) |
OFC Senior Secured Notes (3) |  |  |  |  | (47.3) |  |  | (54.2) |
|  |  |  |  | (48.6) |  |  | (55.9) |
Unamortized debt issuance costs (2) |  |  |  |  |  |  |
PMC Senior Secured Notes |  |  |  |  | (4.3) |  |  | (5.7) |
OFC Senior Secured Notes |  |  |  |  | (7.5) |  |  | (8.6) |
|  |  |  |  | (11.8) |  |  | (14.3) |
|  |  |  |  | $ | 599.6 |  |  | $ | 614.8 |
(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. Redemption of 6.375% Senior Unsecured Notes due 2021 and 8.375% Senior Secured Notes due 2022 On March 4, 2021, we redeemed all of PHH’s outstanding 6.375% Senior Notes due August 2021 at a price of 100% of the principal amount, plus accrued and unpaid interest, and all of PMC’s 8.375% Senior Secured Notes due November 2022 at a price of 102.094% of the principal amount, plus accrued and unpaid interest. The redemption resulted in our recognition of a $7.1 million loss on debt extinguishment. Issuance of 7.875% Senior Secured Notes due 2026 On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of 7.875% senior secured notes due March 15, 2026 (the PMC Senior Secured Notes) at a discount of $2.1 million. The PMC Senior Secured Notes are guaranteed on a senior secured basis by Ocwen and PHH and were sold in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). Interest on the PMC Senior Secured Notes accrues at a rate of 7.875% per annum and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. 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 Year |  | Redemption Price
2023 |  | 103.938 | %
2024 |  | 101.969 |
2025 and thereafter |  | 100.000 |
The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH and its restricted subsidiaries (including PMC) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Ocwen’s affiliates. In 2022, we repurchased a total of $25.0 million of the PMC Senior Secured Notes in the open market for a price of $23.6 million, and recognized a $0.9 million gain on debt extinguishment, net of the respective write-off of unamortized discount and debt issuance costs. Issuance of OFC Senior Secured Notes On March 4, 2021, Ocwen completed the private placement of $199.5 million aggregate principal amount of senior secured notes (the OFC Senior Secured Notes) with an OID of $24.5 million to certain entities owned by funds and accounts managed by Oaktree Capital Management, L.P. (the Oaktree Investors). Concurrent with the issuance of the OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors warrants to purchase shares of its common stock. The $158.5 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. On May 3, 2021, Ocwen issued to Oaktree the second tranche of the OFC Senior Secured Notes in an aggregate principal amount of $85.5 million with an OID of $10.5 million. Concurrent with the issuance of the second tranche of OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors shares and warrants to purchase shares of its common stock. The $68.0 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. See Note 15 — Stockholders’ Equity for additional information regarding the issuance of common stock and warrants. The OFC Senior Secured Notes mature on March 4, 2027 with no amortization of principal. Interest is payable quarterly in arrears on the last business day of each March, June, September and December and accrues at the rate of 12% per annum to the extent interest is paid in cash or 13.25% per annum to the extent interest is “paid-in-kind” through an increase in the principal amount or the issuance of additional notes (PIK Interest). A minimum amount of interest is required to be paid in cash equal to the lesser of (i) 7% per annum of the outstanding principal amount of the OFC Senior Secured Notes and (ii) the total amount of unrestricted cash of Ocwen and its subsidiaries less the greater of $125.0 million and the minimum liquidity amounts required by any agency. The OFC Senior Secured Notes are solely the obligation of Ocwen and are secured by a pledge of substantially all of the assets of Ocwen, including a pledge of the equity of Ocwen’s directly held subsidiaries. The lien on Ocwen’s assets securing the OFC Senior Secured Notes is junior to the lien securing Ocwen’s guarantee of the 7.875% PMC Senior Secured Notes described above. The OFC Senior Secured Notes are not guaranteed by any of Ocwen’s subsidiaries nor are they secured by a pledge or lien on any assets of Ocwen’s subsidiaries. Prior to March 4, 2026, we are permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par, plus a make-whole premium, plus accrued and unpaid interest. The make-whole premium represents the present value of all scheduled interest payments due through March 4, 2026. On and after March 4, 2026, we will be permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par plus accrued and unpaid interest. Credit Ratings Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligations. At December 31, 2022, and affirmed on January 24, 2023, the S&P issuer credit rating for Ocwen was “B-”. On January 24, 2022, S&P raised the assigned rating of the PMC Senior Secured Notes from “B-” to ‘B’ and maintained a stable issuer outlook citing improved profitability and an increase in assets. On January 24, 2023, S&P affirmed the “B” rating. Moody’s reaffirmed their ratings of Caa1 and revised their outlook to Stable from Negative on February 24, 2021. On August 15, 2022, Moody’s reaffirmed PMC’s long-term corporate family ratings of Caa1 and revised their outlook to Positive from Stable. It is possible that additional actions by credit rating agencies could have a material adverse impact on our liquidity and funding position, including materially changing the terms on which we may be able to borrow money. Covenants Under the terms of our debt agreements, we are subject to various affirmative and negative covenants. Collectively, these covenants include: •Financial covenants, including, but not limited to, specified levels of net worth, liquidity and leverage; •Covenants to operate in material compliance with applicable laws; •Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Ocwen and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Ocwen and its subsidiaries or of PHH or PMC and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates; •Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and •Requirements to provide audited financial statements within specified timeframes, including requirements that Ocwen’s financial statements and the related audit report be unqualified as to going concern. The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at December 31, 2022 is a minimum of $300.0 million tangible net worth for both Ocwen and PMC, as defined in certain of our mortgage warehouse, MSR financing and advance financing facilities agreements. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at December 31, 2022 is for a minimum of $75.0 million for both Ocwen consolidated liquidity and PMC consolidated liquidity, as defined, under certain of our MSR financing facilities and mortgage warehouse agreements. The minimum tangible net worth and liquidity requirements at PMC are subject to the minimum requirement set forth by the Agencies. See Note 23 — Regulatory Requirements. As a result of the covenants to which we are subject, we may be limited in the manner in which we conduct our business and may be limited in our ability to engage in favorable business and investment activities or raise certain types of capital to finance future operations or satisfy future liquidity needs. In addition, breaches or events that may result in a default under our debt agreements include, among other things, nonpayment of principal or interest, noncompliance with our covenants, breach of representations, the occurrence of a material adverse change, insolvency, bankruptcy, certain material judgments and changes of control. Covenants and default provisions of this type are commonly found in debt agreements such as ours. Certain of these covenants and default provisions are open to subjective interpretation and, if our interpretation was contested by a lender, a court may ultimately be required to determine compliance or lack thereof. In addition, our debt agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. If we fail to comply with our debt agreements and are unable to avoid, remedy or secure a waiver of any resulting default, we may be subject to adverse action by our lenders, including termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting our obligations and other legal remedies. Our lenders can waive their contractual rights in the event of a default. We believe we were in compliance with all of the covenants in our debt agreements as of the date of these consolidated financial statements. Collateral 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 December 31, 2022:
| Assets |  | Pledged Assets |  | Collateralized Borrowings |  |  |  | Unencumbered Assets (1) |  |  |
Cash | $ | 208.0 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 208.0 |  |  |  |
Restricted cash | 66.2 |  |  | 66.2 |  |  | — |  |  |  |  | — |  |  |  |
Loans held for sale | 622.7 |  |  | 592.4 |  |  | 572.4 |  |  |  |  | 30.3 |  |  |  |
Loans held for investment - securitized (2) | 7,392.6 |  |  | 7,392.6 |  |  | 7,326.8 |  |  |  |  | — |  |  |  |
Loans held for investment - unsecuritized | 111.5 |  |  | 67.5 |  |  | 60.9 |  |  |  |  | 44.0 |  |  |  |
MSRs (3) | 1,710.6 |  |  | 1,725.8 |  |  | 1,115.9 |  |  |  |  | — |  |  |  |
Advances, net | 718.9 |  |  | 667.2 |  |  | 551.4 |  |  |  |  | 51.7 |  |  |  |
Receivables, net | 180.8 |  |  | 67.0 |  |  | 65.7 |  |  |  |  | 113.8 |  |  |  |
REO | 9.8 |  |  | 4.3 |  |  | 3.8 |  |  |  |  | 5.5 |  |  |  |
Total (4) | $ | 11,021.1 |  |  | $ | 10,582.9 |  |  | $ | 9,696.8 |  |  |  |  | $ | 453.4 |  |  |  |
(1)Certain assets are pledged as collateral to the PMC Senior Secured Notes and 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 Rithm 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. The OFC Senior Secured Notes due 2027 have a second lien priority on specified security interests, 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 PMC Senior Secured Notes, including PHH and MAV; cash and investment accounts at OFC; and certain other assets, including receivables.
| As of December 31, 2022
Specified net servicing advances | $ | 228.1
Specified deferred servicing fee | 3.7
Specified MSR value less borrowings | 690.4
Specified unrestricted cash balances | 124.1
Specified advance facility reserves | 15.8
Specified loan value | 99.7
Specified residual value | —
Total | $ | 1,161.7
Maturities of Borrowings and Management’s Plans to Address Maturing Borrowings Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience.
| Expected Maturity Date (1) (2) |  |  |  |
| 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | Thereafter |  | Total Balance |  | Fair Value
Advance match funded liabilities | $ | 512.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 513.7 |  |  | $ | 513.7 |
Mortgage loan warehouse facilities | 702.7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 702.7 |  |  | 702.7 |
MSR financing facilities | 485.2 |  |  | 13.8 |  |  | 422.2 |  |  | — |  |  | — |  |  | 33.4 |  |  | 954.6 |  |  | 932.1 |
Senior notes | — |  |  | — |  |  | — |  |  | 375.0 |  |  | 285.0 |  |  | — |  |  | 660.0 |  |  | 555.2 |
| $ | 1,700.5 |  |  | $ | 13.8 |  |  | $ | 422.2 |  |  | $ | 376.2 |  |  | $ | 285.0 |  |  | $ | 33.4 |  |  | $ | 2,831.0 |  |  | $ | 2,703.7 |
(1)Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment. (2)For match funded liabilities, the Expected Maturity Date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. Our MSR financing facilities provide funding based on an advance rate of MSR value that is subject to periodic mark-to-market valuation adjustments. In the normal course, MSR value is expected to decline over time due to runoff of the loan balances in our servicing portfolio. As a result, we anticipate having to repay a portion of our MSR debt over a given time period. The requirements to repay MSR debt including those due to unfavorable fair value adjustment, for example due to a decline in market interest rates, may require us to allocate a substantial amount of our available liquidity or future cash flows to meet these requirements.

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