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Mortgage Servicing
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
Mortgage Servicing
Note 7 – Mortgage Servicing
MSRs – At Fair Value
Three Months Ended September 30,
20232022
AgencyNon-AgencyTotalAgencyNon-AgencyTotal
Beginning balance$1,967.4 $708.4 $2,675.7 $1,816.6 $669.1 $2,485.7 
Sales— — — — — — 
Additions:
Recognized on the sale of residential mortgage loans71.4 — 71.4 70.2 — 70.2 
Purchases35.7 — 35.7 75.5 — 75.5 
Servicing transfers and adjustments (1)— — — (39.1)(0.1)(39.1)
Net additions (sales)107.1 — 107.1 106.6 (0.1)106.6 
Changes in fair value recognized in earnings:
Changes in valuation inputs or assumptions 127.9 9.9 137.7 99.1 91.5 190.6 
Realization of expected cash flows (52.4)(8.3)(60.7)(46.9)(21.8)(68.7)
Fair value gains (losses) recognized in earnings75.4 1.6 77.0 52.2 69.8 121.9 
Ending balance$2,149.9 $709.9 $2,859.8 $1,975.4 $738.8 $2,714.2 
MSRs – At Fair Value
Nine Months Ended September 30,
20232022
AgencyNon-AgencyTotalAgencyNon-AgencyTotal
Beginning balance$1,931.8 $733.5 $2,665.2 $1,571.8 $678.3 $2,250.1 
Sales0.1 — — (149.3)— (149.4)
Additions:
Recognized on the sale of residential mortgage loans134.0 — 134.0 176.2 — 176.2 
Purchases79.8 — 79.8 159.1 — 159.1 
Servicing transfers and adjustments (1)(32.6)— (32.6)(24.3)(0.9)(25.2)
Net additions (sales)181.2 — 181.2 161.7 (0.9)160.7 
Changes in fair value recognized in earnings:
Changes in valuation inputs or assumptions 189.2 1.7 190.9 379.5 132.9 512.4 
Realization of expected cash flows (152.3)(25.2)(177.5)(137.6)(71.5)(209.1)
Fair value gains (losses) recognized in earnings36.9 (23.5)13.4 241.9 61.4 303.4 
Ending balance$2,149.9 $709.9 $2,859.8 $1,975.4 $738.8 $2,714.2 
(1)During the nine months ended September 30, 2023 and 2022, we derecognized $32.5 million and $39.0 million, respectively, of Agency MSRs previously sold to MAV in transactions which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $2.3 billion and $2.9 billion, respectively, from our balance sheet together with the associated Pledged MSR liability upon the sale of the MSRs by MAV to a third party. See Note 8 — Other Financing Liabilities, at Fair Value for further information.
The following table summarizes delinquency status of the loans underlying our MSRs:
September 30, 2023December 31, 2022
Delinquent loansAgencyNon - AgencyTotalAgencyNon - AgencyTotal
Total UPB (in billions)
$143.1 $57.9 $201.1 $137.6 $62.0 $199.6 
30 days1.9 %9.7 %5.2 %1.7 %8.5 %4.8 %
60 days0.5 3.9 1.9 0.5 3.3 1.8 
90 days or more1.0 8.5 4.2 1.1 8.6 4.5 
Total 30-60-90 days or more3.4 %22.0 %11.4 %3.3 %20.4 %11.1 %
MSR UPB and Fair Value
September 30, 2023December 31, 2022September 30, 2022
Fair ValueUPB ($ billions)Fair ValueUPB ($ billions)Fair ValueUPB ($ billions)
Owned MSRs$1,717.6 $119.4 $1,710.6 $126.2 $1,743.0 $123.4 
Rithm and others transferred MSRs (1) (2)709.1 $52.4 601.2 $47.3 604.7 $48.4 
MAV transferred MSRs (1)433.1 $29.2 353.4 $26.1 366.6 $26.2 
Total MSRs$2,859.8 $201.1 $2,665.2 $199.6 $2,714.2 $198.0 
(1)MSRs subject to sale agreements that do not meet sale accounting criteria. See Note 8 — Other Financing Liabilities, at Fair Value.
(2)At September 30, 2023, the UPB of MSRs transferred to Rithm for which title is retained by Ocwen was $10.1 billion.
We purchased MSRs with a UPB of $6.9 billion and $13.7 billion from unrelated third-parties during the nine months ended September 30, 2023 and 2022, respectively. We sold MSRs, servicing released, with a UPB of $40.7 million and $11.1 billion during the nine months ended September 30, 2023 and 2022, respectively, to unrelated third parties.
Servicing Revenue

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Loan servicing and subservicing fees
Servicing
87.7 83.3 267.2 252.8 
Subservicing17.4 18.9 55.4 53.9 
MAV Subservicing
2.0 1.4 5.8 3.7 
MAV Servicing (1)
17.2 17.8 49.1 51.0 
Rithm (1)
56.4 63.4 175.1 195.2 
180.7 184.8 552.6 556.6 
Ancillary income
Custodial accounts (float earnings)31.5 7.5 77.9 10.3 
Late charges9.8 10.6 28.8 32.3 
Reverse subservicing ancillary fees8.1 4.9 26.1 14.3 
Loan collection fees2.3 2.6 7.2 8.5 
Recording fees1.3 1.8 3.8 7.7 
Boarding and deboarding fees1.4 0.8 3.2 4.4 
GSE forbearance fees0.2 0.2 0.7 0.6 
Other, net2.4 2.3 7.2 8.6 
57.1 30.7 155.0 86.7 
Total Servicing and subservicing fees$237.8 $215.6 $707.5 $643.3 
(1)Includes servicing fees related to transferred MSRs that do not achieve sale accounting. 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 and tax and insurance payments) are held in escrow by unaffiliated banks and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $2.3 billion, $1.5 billion and $2.0 billion at September 30, 2023, December 31, 2022 and September 30, 2022, respectively.
The following tables present the components of MSR valuation adjustments, net:
Three Months Ended September 30, 2023
Three Months Ended September 30, 2022
Rates and assumptionsRealization of expected cash flowsTotalRates and assumptionsRealization of expected cash flowsTotal
Owned MSR (1)
$137.7 $(60.7)$77.0 $187.9 $(68.6)$119.2 
Transferred MSR (2)(3)
(45.5)17.6 (27.8)(91.1)23.6 (67.5)
ESS financing liability (2)(4.6)7.6 3.1 (0.7)0.6 (0.1)
Derivative fair value gain (loss) (MSR economic hedges)(68.6)— (68.6)(23.8)— (23.8)
MSR valuation adjustments, net$19.1 $(35.4)$(16.4)$72.3 $(44.4)$27.9 

Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Rates and assumptionsRealization of expected cash flowsTotalRates and assumptionsRealization of expected cash flowsTotal
Owned MSR (1)
$191.0 $(177.3)$13.7 $509.7 $(209.1)$300.6 
Transferred MSR (2)(3)
(88.3)47.8 (40.5)(188.3)80.6 (107.7)
ESS financing liability (2)(10.2)22.5 12.3 (0.7)0.6 (0.1)
Derivative fair value gain (loss) (MSR economic hedges)(119.7)— (119.7)(107.5)— (107.5)
MSR valuation adjustments, net$(27.2)$(107.0)$(134.2)$213.2 $(127.8)$85.4 
(1)Includes $0.0 million and $(0.3) million for the three and nine months ended September 30, 2023, respectively, and $2.7 million and $2.8 million during the three and nine months ended September 30, 2022, respectively, of fair value changes on the reverse MSR liability and other.
(2)Also refer to Note 8 — Other Financing Liabilities, at Fair Value for additional information related to the ESS financing liability and Pledged MSR liability, including a tabular presentation of activity of the Pledged MSR liability for the reported periods.
(3)MSR transfers that do not achieve sale accounting.