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Borrowings (Tables) | 6 Months Ended
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Jun. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Match Funded Liabilities |
Advance Match Funded Liabilities |  | Borrowing Capacity |  | Outstanding Balance
Borrowing Type |  |  |  | Maturity |  | Amort. Date (1) |  | Total |  | Available (2) |  | June 30, 2023 |  | Dec. 31, 2022
Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2015-VF5 |  |  |  | Aug. 2053 |  | Aug. 2023 |  | $ | 450.0 |  |  | $ | 67.8 |  |  | $ | 382.2 |  |  | $ | 422.5 |
Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 |  |  |  | Aug. 2053 |  | Aug. 2023 |  | 90.0 |  |  | 42.7 |  |  | 47.3 |  |  | 90.0 |
EBO Advance facility (3) |  |  |  | May 2026 |  | NA |  | 14.4 |  |  | 13.5 |  |  | 0.9 |  |  | 1.2 |
|  |  |  |  |  |  |  | $ | 554.4 |  |  | $ | 124.0 |  |  | $ | 430.4 |  |  | $ | 513.7 |
Weighted average interest rate (4) |  |  |  |  |  |  |  | 8.15 | % |  | 7.09 | %
(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. 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, 2023, 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)We entered into a loan and security agreement to finance the acquisition of advances in connection with the early buyout of certain fixed-rate, fully-amortizing FHA-insured residential mortgage loans. At June 30, 2023, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. (4)The weighted average interest rate, excluding the effect of the amortization of prepaid lender fees. At June 30, 2023 and December 31, 2022, the balance of unamortized prepaid lender fees was $0.5 million and $2.3 million, respectively, and are included in Other assets in our consolidated balance sheets.
Mortgage Loan Financing Facilities, net |  |  |  |  | Available Borrowing Capacity |  | Outstanding Balance
Borrowing Type |  | Collateral |  | Maturity |  |  |  | Un-committed |  | Committed (1) |  | June 30, 2023 |  | Dec. 31, 2022
$175 million Master repurchase agreement |  | Loans held for sale (LHFS), Receivables and REO |  | Aug. 2023 |  |  |  | $ | 125.0 |  |  | $ | 39.3 |  |  | $ | 10.7 |  |  | $ | 142.2 |
Master repurchase agreement (2) |  | LHFS and Loans Held for Investment (LHFI) |  | N/A |  |  |  | — |  |  | — |  |  | — |  |  | 100.3 |
$50 million Mortgage warehouse agreement (3) |  | LHFS |  | N/A |  |  |  | 50.0 |  |  | — |  |  | — |  |  | — |
$400 million Participation agreement (4) |  | LHFS |  | November 2023 |  |  |  | 91.9 |  |  | — |  |  | 308.1 |  |  | 64.3 |
$173 million Master repurchase agreement (5) |  | LHFS, LHFI and Receivables |  | August 2023 |  |  |  | — |  |  | 1.3 |  |  | 171.7 |  |  | 26.1 |
Master repurchase agreement (6) |  | LHFS |  | June 2024 |  |  |  | — |  |  | 1.0 |  |  | — |  |  | — |
$50 million Mortgage warehouse agreement (7) |  | LHFI |  | October 2023 |  |  |  | — |  |  | 36.0 |  |  | 14.0 |  |  | 7.8 |
$204 million Mortgage warehouse agreement (8) |  | LHFS and LHFI |  | March 2024 |  |  |  | 137.1 |  |  | — |  |  | 66.9 |  |  | 44.2 |
$230 million Mortgage warehouse agreement (9) |  | LHFS and Receivables |  | (9) |  |  |  | 216.0 |  |  | — |  |  | 14.0 |  |  | 21.9 |
Master repurchase agreement (10) |  | LHFS |  | (10) |  |  |  | — |  |  | — |  |  | 100.4 |  |  | — |
$50 million Loan and security agreement (11) |  | LHFS and Receivables |  | March 2024 |  |  |  | — |  |  | 42.5 |  |  | 7.5 |  |  | 7.2 |
$700 million Master repurchase agreement (12) |  | LHFS and LHFI |  | April 2024 |  |  |  | 116.6 |  |  | — |  |  | 583.4 |  |  | 288.8 |
$200 million Master repurchase agreement (13) |  | LHFS, Receivables and REO |  | April 2024 |  |  |  | 200.0 |  |  | — |  |  | — |  |  | — |
OLIT Asset-Backed Notes (14) |  | Reverse LHFS, Receivables and REO |  | June 2036 |  |  |  | — |  |  | — |  |  | 264.9 |  |  | — |
Total Mortgage Loan Financing Facilities, net |  |  |  | $ | 936.5 |  |  | $ | 120.1 |  |  | $ | 1,541.6 |  |  | $ | 702.7 |
Unamortized discount and debt issuance costs - OLIT Notes |  | $ | (26.6) |  |  | $ | — |
Total Mortgage Loan Financing Facilities, net |  | $ | 1,515.0 |  |  | $ | 702.7 |
Weighted average interest rate (15) |  | 6.03 | % |  | 5.74 | %
(1)Of the borrowing capacity on mortgage loan financing facilities extended on a committed basis, $1.7 million of the available borrowing capacity could be used at June 30, 2023 based on the amount of eligible collateral that could be pledged. (2)On February 9, 2023, we voluntarily allowed the facility to mature. (3) This agreement has no stated maturity dat e. (4)In June 2023, the maturity date of this facility was extended to July 22, 2023 and the uncommitted borrowing capacity was increased to $400.0 million. In July 2023, the maturity date was further extended to November 30, 2023 and the uncommitted borrowing capacity was increased to $650.0 million. (5)In June 2023, the maturity date of this facility was extended to July 22, 2023 and further extended to August 22, 2023 in July 2023. (6)In June 2023, the maturity date of this facility was extended to June 22, 2024. (7)In June 2023, the maturity date of this facility was extended to July 14, 2023. In July 2023, the maturity date was further extended to October 12, 2023 and the committed borrowing capacity was reduced to $40.0 million. (8)In May 2023, the maturity date of this facility was extended to March 31, 2024 and the interest rate margin was revised. (9)The agreement has no stated maturity date, however each transaction has a maximum duration of four years. (10)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. Each certificate is renewed monthly and the interest rate for this facility is 1 month Term Secured Overnight Financing Rate (SOFR) plus applicable margin. See Note 2 – Securitizations and Variable Interest Entities for additional information. (11)This revolving facility agreement provides committed borrowing capacity secured by eligible HECM loans that are active buyouts, as defined in the agreement. In April 2023, the maturity date of this facility was extended to March 31, 2024. (12)In April 2023, the maturity date of this facility was extended to April 6, 2024. (13)On April 3, 2023, we entered into a master repurchase agreement with a total uncommitted borrowing capacity of $200.0 million to finance the purchase of reverse mortgage loans held for sale, claim receivables from HUD and REOs at an interest rate of 1M Term SOFR plus applicable margin. (14)In June 2023, OLIT issued different classes of Asset-Backed Notes at a discount, with a stated interest rate of 3.0% and a mandatory call date of June 2026. Payments of interest and principal are made from available funds from a pool of reverse mortgage buyout loans and REOs in accordance with the indenture priority of payments. Also see Note 2 – Securitizations and Variable Interest Entities. (15)The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At June 30, 2023 and December 31, 2022, unamortized prepaid lender fees were $1.5 million and $0.5 million, respectively, and are included in Other assets in our consolidated balance sheets.
MSR Financing Facilities, net |  |  |  |  |  | Available Borrowing Capacity |  | Outstanding Balance
Borrowing Type |  | Collateral |  |  |  | Maturity |  | Un-committed |  | Committed (1) |  | June 30, 2023 |  | Dec. 31, 2022
$265 million Agency MSR financing facility (2) |  | MSRs |  |  |  | June 2024 |  | $ | — |  |  | $ | 27.2 |  |  | $ | 237.8 |  |  | $ | 309.8 |
$200 million Ginnie Mae MSR financing facility (3) |  | MSRs, Advances |  |  |  | April 2024 |  | 38.2 |  |  | — |  |  | 161.8 |  |  | 157.9 |
Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 (4) |  | MSRs |  |  |  | Feb. 2025 |  | — |  |  | — |  |  | 47.4 |  |  | 56.7 |
Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) |  | MSRs |  |  |  | Feb. 2028 |  | — |  |  | — |  |  | 30.9 |  |  | 33.4 |
$400 million Agency MSR financing facility - revolving loan (6) |  | MSRs |  |  |  | Dec. 2025 |  | — |  |  | 12.6 |  |  | 387.4 |  |  | 396.8 |
Total MSR financing facilities |  |  |  |  | $ | 38.2 |  |  | $ | 39.7 |  |  | 865.3 |  |  | 954.6 |
Unamortized debt issuance costs - PLS Notes (7) |  |  |  |  |  | (0.6) |  |  | (0.8) |
Total MSR financing facilities, net |  |  |  |  |  |  |  |  | $ | 864.8 |  |  | $ | 953.8 |
Weighted average interest rate (8) |  |  |  |  |  |  |  | 7.88% |  | 7.31%
(1)Of the borrowing capacity on MSR financing facilities extended on a committed basis, $18.1 million of the available borrowing capacity could be used at June 30, 2023 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. See Note 2 – Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. In June 2023, the maturity date of this facility was extended to June 28, 2024, the committed borrowing capacity was reduced by $185.0 million to $265.0 million, and the interest rate margin was revised. (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. In April 2023, the maturity date of this facility was extended to April 26, 2024. (4)The single class PLS Notes are an amortizing debt instrument with an original principal amount of $75.0 million and a fixed interest rate of 5.114%. 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. 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 revolving loan secured by a lien on certain of PMC’s Agency MSRs and is subject to daily margining requirements. Any outstanding borrowings on the revolving loan will convert into a term loan in November 2024. (7)At June 30, 2023 and December 31, 2022, unamortized prepaid lender fees related to revolving type MSR financing facilities were $5.0 million and $4.9 million, respectively, and are included in Other assets in our consolidated balance sheets. (8)Weighted average interest rate excluding the effect of the amortization of debt issuance costs and prepaid lender fees.
Schedule of Senior Notes |
Senior Notes | Interest Rate (1) |  | Maturity | Outstanding Balance
| June 30, 2023 |  | December 31, 2022
PMC Senior Secured Notes (2) | 7.875% |  | March 2026 | $ | 375.0 |  |  | $ | 375.0 |
OFC Senior Secured Notes (due to related parties) (3) | 12% paid in cash or 13.25% paid-in-kind (see below) |  | March 2027 | 285.0 |  |  | 285.0 |
Principal balance |  |  |  | 660.0 |  |  | 660.0 |
Discount |  |  |  |  |  |
PMC Senior Secured Notes |  |  |  | (1.1) |  |  | (1.3) |
OFC Senior Secured Notes |  |  |  | (43.3) |  |  | (47.3) |
|  |  |  | (44.4) |  |  | (48.6) |
Unamortized debt issuance costs |  |  |  |  |  |
PMC Senior Secured Notes |  |  |  | (3.7) |  |  | (4.3) |
OFC Senior Secured Notes |  |  |  | (6.9) |  |  | (7.5) |
|  |  |  | (10.6) |  |  | (11.8) |
|  |  |  | $ | 605.0 |  |  | $ | 599.6 |
(1)Excluding the effect of the amortization of debt issuance costs and discount. (2)Redeemable at 103.938% and 101.969% before March 15, 2024 and March 15, 2025, respectively, at par thereafter. The Indenture contains customary covenants that limit the ability of PHH Corporation (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. (3)Redeemable at par plus a make-whole premium prior to March 4, 2026, at par thereafter. The make-whole premium represents the present value of all scheduled interest payments due through March 4, 2026. The Notes are solely the obligation of Ocwen and are secured by a pledge of substantially all of the assets of Ocwen, including its directly held subsidiaries.
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, 2023:
| Assets |  | Pledged Assets |  | Collateralized Borrowings |  |  |  | Unencumbered Assets (1) |  |  |
Cash | $ | 213.4 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 213.4 |  |  |  |
Restricted cash | 119.1 |  |  | 119.1 |  |  | 50.8 |  |  |  |  | — |  |  |  |
Loans held for sale | 1,356.5 |  |  | 1,320.9 |  |  | 1,309.0 |  |  |  |  | 35.6 |  |  |  |
Loans held for investment - securitized (2) | 7,553.7 |  |  | 7,553.7 |  |  | 7,486.4 |  |  |  |  | — |  |  |  |
Loans held for investment - unsecuritized | 121.0 |  |  | 86.6 |  |  | 79.7 |  |  |  |  | 34.5 |  |  |  |
MSRs (3) | 1,643.8 |  |  | 1,654.4 |  |  | 1,094.7 |  |  |  |  | 0.3 |  |  |  |
Advances, net | 602.7 |  |  | 552.9 |  |  | 459.6 |  |  |  |  | 49.8 |  |  |  |
Receivables, net | 188.6 |  |  | 83.7 |  |  | 87.7 |  |  |  |  | 104.9 |  |  |  |
REO | 18.0 |  |  | 13.6 |  |  | 14.5 |  |  |  |  | 4.4 |  |  |  |
Total (4) | $ | 11,816.8 |  |  | $ | 11,384.8 |  |  | $ | 10,582.3 |  |  |  |  | $ | 443.0 |  |  |  |
(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 MAV, Rithm and others, 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 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.
| June 30, 2023
Specified net servicing advances | $ | 191.3
Specified deferred servicing fee | 4.0
Specified MSR value less borrowings | 644.6
Specified unrestricted cash balances | 118.5
Specified advance facility reserves | 14.6
Specified loan value | 83.2
Specified residual value | —
Total | $ | 1,056.2

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