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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income Before Taxes | The components of income (loss) before income taxes were as follows:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Domestic | $ | (68.3) |  |  | $ | 14.0 |  |  | $ | (13.9) |
Foreign | 10.2 |  |  | 10.9 |  |  | 9.5 |
| $ | (58.1) |  |  | $ | 24.9 |  |  | $ | (4.4) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 2.1 |  |  | $ | 0.2 |  |  | $ | (20.1) |
State | 0.3 |  |  | (0.8) |  |  | (1.3) |
Foreign | 3.6 |  |  | (0.2) |  |  | 1.6 |
| 6.0 |  |  | (0.8) |  |  | (19.8) |
Deferred: |  |  |  |  |
Federal | (14.6) |  |  | 4.7 |  |  | (2.3) |
State | (2.6) |  |  | (0.7) |  |  | — |
Foreign | (0.5) |  |  | 0.6 |  |  | 0.2 |
Provision for (reversal of) valuation allowance on deferred tax assets | 17.3 |  |  | (3.9) |  |  | 2.3 |
| (0.4) |  |  | 0.7 |  |  | 0.2 |
Other | — |  |  | (0.7) |  |  | (2.8) |
Total | $ | 5.6 |  |  | $ | (0.8) |  |  | $ | (22.4) |
Schedule of Effective Income Tax Reconciliation | The following table presents a reconciliation of the Income tax provision at the U.S. federal statutory tax rate to our Income tax provision at our actual effective income tax rate:
| Years Ended December 31, |
| 2023 |  | 2022 |  | 2021
| $ | % |  | $ | % |  | $ | %
Expected income tax expense (benefit) at statutory rate | $ | (12.2) |  | 21 | % |  | $ | 5.2 |  | 21 | % |  | $ | (0.9) |  | 21 | %
Differences between expected and actual income tax expense: |  |  |  |  |  |  |  |
CARES Act (1) | — |  | — |  |  | (0.1) |  | — |  |  | (12.6) |  | 289 |
Provision for (reversal of) valuation allowance on deferred tax assets | 17.3 |  | (30) |  |  | (3.9) |  | (16) |  |  | 2.3 |  | (54) |
Provision for (reversal of) liability for uncertain tax positions | 1.1 |  | (2) |  |  | (3.4) |  | (14) |  |  | (8.7) |  | 199 |
Interest on refund claims due from tax authorities | — |  | — |  |  | (0.7) |  | (3) |  |  | (2.8) |  | 64 |
Other provision to return differences | (0.1) |  | — |  |  | (0.2) |  | (1) |  |  | (1.0) |  | 22 |
Foreign tax differential including effectively connected income and foreign withholding taxes (2) | 1.2 |  | (2) |  |  | 2.3 |  | 9 |  |  | 1.4 |  | (31) |
State tax, after Federal tax benefit | (1.8) |  | 3 |  |  | (0.3) |  | (1) |  |  | 0.2 |  | (5) |
Benefit of state NOL carryback claims and amended return filings | — |  | — |  |  | (1.2) |  | (5) |  |  | (1.8) |  | 41 |
Executive compensation disallowance | 1.6 |  | (3) |  |  | 1.6 |  | 6 |  |  | 1.4 |  | (32) |
Excess tax benefits from share-based compensation | (1.9) |  | 3 |  |  | (0.4) |  | (2) |  |  | (0.5) |  | 12 |
Other permanent differences | — |  | — |  |  | 0.1 |  | — |  |  | 0.2 |  | (3) |
Foreign tax credit (generation) utilization | 0.1 |  | — |  |  | 0.1 |  | — |  |  | — |  | — |
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion | — |  | — |  |  | 0.1 |  | — |  |  | 0.2 |  | (4) |
Other | 0.3 |  | — |  |  | — |  | — |  |  | 0.2 |  | (5) |
Actual income tax expense (benefit) | $ | 5.6 |  | (10) | % |  | $ | (0.8) |  | (3) | % |  | $ | (22.4) |  | 514 | %
(1) We recognized $12.6 million of income tax benefit in 2021 relating to CARES Act claims that represents the release of valuation allowances against certain NOL deferred tax assets that became more likely than not to be realizable as a result of certain provisions of the CARES Act as well as a permanent income tax benefit related to the carryback of NOLs created in a tax year that was subject to U.S. federal tax at 21% to a tax year subject to tax at 35%. During the years ended December 31, 2023, 2022 and 2021, we collected nil, $11.3 million and $24.6 million, respectively, of these tax refunds associated with the NOLs generated in 2018, 2019 and 2020 carried back to prior tax years in application of the CARES Act. (2) Ocwen is a global company with operations in the U.S., USVI, India and the Philippines, among other jurisdictions. In the effective tax rate reconciliation above, we first calculate income tax expense attributable to worldwide continuing operations at the U.S. statutory tax rate. The foreign tax rate differential therefore represents the difference in tax expense between jurisdictional income taxed at the U.S. statutory rate and each respective jurisdictional statutory rate.
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following:
| December 31,
| 2023 |  | 2022
Deferred tax assets |  |  |
Net operating loss carryforwards - federal and foreign | $ | 106.8 |  |  | $ | 107.9 |
Net operating loss carryforwards and credits - state and local | 82.0 |  |  | 90.3 |
Interest expense disallowance | 123.0 |  |  | 72.6 |
Reserve for servicing exposure | 5.8 |  |  | 5.7 |
Accrued legal settlements | 4.8 |  |  | 10.0 |
Partnership losses | — |  |  | 5.4 |
Stock-based compensation expense | 11.4 |  |  | 10.4 |
Accrued incentive compensation | 4.5 |  |  | 3.7 |
Accrued other liabilities | 4.4 |  |  | 5.4 |
Lease liabilities | 0.9 |  |  | 1.0 |
Intangible asset amortization | 7.2 |  |  | 6.3 |
Foreign deferred assets | 3.4 |  |  | 3.2 |
Tax residuals and deferred income on tax residuals | 1.4 |  |  | 1.5 |
Bad debt and allowance for loan losses | 11.0 |  |  | 8.2 |
Other | 1.7 |  |  | 4.1 |
| 368.3 |  |  | $ | 335.7 |
Deferred tax liabilities |  |  |
Mortgage servicing rights amortization | 175.0 |  |  | 153.1 |
Partnership losses | 3.9 |  |  | — |
Other | 1.2 |  |  | 1.5 |
| 180.1 |  |  | 154.6 |
| 188.2 |  |  | 181.1 |
Valuation allowance | (185.1) |  |  | (178.5) |
Deferred tax assets, net | $ | 3.1 |  |  | $ | 2.6 |
Schedule of Unrecognized Tax Benefits | The following table presents the activity related to unrecognized tax benefits for uncertain tax positions:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Beginning balance | $ | 8.7 |  |  | $ | 11.5 |  |  | $ | 20.6 |
Additions for tax positions of current year | — |  |  | — |  |  | — |
Additions for tax positions of prior years | — |  |  | — |  |  | 0.2 |
Reductions for tax positions of prior years | — |  |  | — |  |  | (6.4) |
Reductions for settlements | — |  |  | (2.1) |  |  | (0.6) |
Lapses in statute of limitations | — |  |  | (0.7) |  |  | (2.4) |
Ending balance (1) | $ | 8.7 |  |  | $ | 8.7 |  |  | $ | 11.5 |
(1)At December 31, 2023 and 2022, the balance is included in the Liability for uncertain tax positions in Other liabilities.

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