Reverse Mortgages

3 Months Ended

Sep. 30, 2022

Note 5 - Reverse Mortgages


	Three Months Ended September 30,
	2023				2022
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	7,674.8	$	(7,486.4)	$	7,376.5	$	(7,155.3)

Originations	264.4		—		349.1		—
Securitization of HECM loans accounted for as a financing (including realized fair value changes)	—		(281.3)		—		(357.7)
Additional proceeds from securitization of HECM loans and tails	—		(0.9)		—		(7.8)

Repayments (principal payments received)	(280.0)		277.3		(326.3)		326.3
Transfers to:
Loans held for sale, at fair value	(1.5)		—		(6.5)		—
Receivables, net	(0.6)		—		(16.7)		—
REO (Other assets)	—		—		(0.1)		—
Change in fair value included in earnings (1)	120.6		(122.4)		19.6		(13.9)
Ending balance	$	7,777.6	$	(7,613.6)	$	7,395.5	$	(7,208.4)
Securitized loans (pledged to HMBS-related borrowings)	$	7,671.1	$	(7,613.6)	$	7,268.0	$	(7,208.4)
Unsecuritized loans	106.5				127.5
Total	$	7,777.6			$	7,395.5



	Nine Months Ended September 30,
	2023				2022
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	7,504.1	$	(7,326.8)	$	7,199.8	$	(6,885.0)

Originations	771.8		—		1,494.0		—
Securitization of HECM loans accounted for as a financing (including realized fair value changes)	—		(783.7)		—		(1,507.6)
Additional proceeds from securitization of HECM loans and tails	—		(7.1)		—		(30.1)
Acquisition	—		—		211.3		(209.1)
Repayments (principal payments received)	(807.3)		802.4		(1,321.4)		1,319.8
Transfers to:
Loans held for sale, at fair value	(4.6)		—		(26.2)		—
Receivables, net	(2.6)		—		(66.1)		—
REO (Other assets)	(0.1)		—		(0.2)		—
Change in fair value included in earnings (1)	316.3		(298.5)		(95.5)		103.6
Ending balance	$	7,777.6	$	(7,613.6)	$	7,395.5	$	(7,208.4)
Securitized loans (pledged to HMBS-related borrowings)	$	7,671.1	$	(7,613.6)	$	7,268.0	$	(7,208.4)
Unsecuritized loans	106.5				127.5
Total	$	7,777.6			$	7,395.5

(1)See further breakdown of the net gain (loss) in the table below.


Gain (Loss) on Reverse Loans Held for Investment and HMBS-related Borrowings, Net	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Gain on new originations (1)	$	4.4	$	9.3	$	13.9	$	42.6
Gain on tail securitizations (2)	2.8		2.6		8.9		9.3
Net interest income (servicing fee) (3)	5.9		5.5		17.7		16.3
Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net	(14.8)		(11.8)		(22.6)		(60.1)

Fair value gains (losses) included in earnings (2)	(1.7)		5.7		17.8		8.1
Loan fees and other	1.3		1.2		3.7		9.3
	$	(0.4)	$	6.9	$	21.5	$	17.4

(1)Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date.

(2)Includes the cash realized gains upon securitization of tails (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above).

(3)Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above). The net interest income includes the servicing fee Ocwen is contractually entitled to on securitized loans.