XML 63 R40.htm IDEA: XBRL DOCUMENT v3.24.0.1

Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value

The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows:

									December 31,
									2023												2022
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Financial assets:
Loans held for sale
Loans held for sale, at fair value (a) (e)			3, 2						$	674.2					$	674.2					$	617.8					$	617.8
Loans held for sale, at lower of cost or fair value (b)			3						3.1						3.1						4.9						4.9
Total Loans held for sale									$	677.3					$	677.3					$	622.7					$	622.7
Loans held for investment, at fair value
Loans held for investment - Reverse mortgages (a)			3						$	7,970.0					$	7,970.0					$	7,504.1					$	7,504.1
Loans held for investment - Restricted for securitization investors (a)			3						5.6						5.6						6.7						6.7
Total Loans held for investment, at fair value									$	7,975.5					$	7,975.5					$	7,510.8					$	7,510.8
Advances, net (c)			3						$	678.8					$	678.8					$	718.9					$	718.9
Receivables, net (c)			3						$	154.8					$	154.8					$	180.8					$	180.8
Financial liabilities:
Advance match funded liabilities (c)			3						$	499.7					$	499.7					$	513.7					$	513.7
Financing liabilities, at fair value:
HMBS-related borrowings (a)			3						$	7,797.3					$	7,797.3					$	7,326.8					$	7,326.8
Other financing liabilities:
Financing liability - Pledged MSR liability (a)			3						645.5						645.5						931.7						931.7
Financing liability - Excess Servicing Spread (ESS) (a)			3						248.9						248.9						199.0						199.0
Financing liability - Owed to securitization investors (a)			3						5.6						5.6						6.7						6.7
Total Other financing liabilities									$	900.0					$	900.0					$	1,137.4					$	1,137.4
Mortgage loan financing facilities (c) (d)			3						$	710.6					$	717.6					$	702.7					$	702.7
MSR financing facilities (c) (d)			3						$	916.2					$	900.3					$	953.8					$	932.1
Senior notes:
PHH Senior secured notes due 2026 (c) (d)			2						$	356.1					$	326.0					$	369.4					$	331.4
OFC Senior secured notes due 2027 (c) (d)			3						239.7						230.5						230.2						223.9
Total Senior notes									$	595.8					$	556.5					$	599.6					$	555.2

									December 31,
									2023												2022
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Derivative financial instrument assets (liabilities), net
Interest rate lock commitments (IRLCs) (a)			3						$	5.6					$	5.6					$	(0.7)					$	(0.7)
Forward sales of loans (a)			1						(0.1)						(0.1)						0.5						0.5
TBA / Forward mortgage-backed securities (MBS) trades (a)			1						9.6						9.6						(0.7)						(0.7)
Interest rate swap futures (a)			1						3.9						3.9						(13.6)						(13.6)
TBA forward pipeline trades (a)			1						(6.3)						(6.3)						6.6						6.6
Option contracts (a)			1						1.9						1.9						—						—
Other (a)			3						(0.1)						(0.1)						(0.1)						(0.1)
MSRs (a)			3						$	2,272.2					$	2,272.2					$	2,665.2					$	2,665.2

(a)Measured at fair value on a recurring basis in our financial statements.

(b)Measured at fair value on a non-recurring basis in our financial statements.

(c)Disclosed, but not measured at fair value in our financial statements.

(d)The carrying values are net of unamortized debt issuance costs and discount. See Note 14 — Borrowings for additional information. 

(e)The newly originated portfolio of GSE and forward Ginnie Mae loans held for sale pending securitization with the Agencies is classified as Level 2; all other loans are classified as Level 3.

Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present a reconciliation of the changes in fair value of certain Level 3 assets and liabilities that we measure at fair value on a recurring basis (refer to the respective notes for other Level 3 assets and liabilities):

																											Loans Held for Sale - Fair Value												ESS Financing Liability						IRLCs
Year Ended December 31, 2023
Beginning balance																											$	32.1											$	(199.0)					$	(0.7)
Purchases, issuances, sales and settlements
Purchases and other																											364.2												—						—
Issuances (1)																											—												(68.7)						39.3
Sales																											(102.4)												—						—
Settlements																											(60.5)												29.9						—
Transfers from (to):
Loans held for sale, at fair value (1)																											—												—						(64.9)
Loans held for investment, at fair value																											4.5												—						—
Receivables, net																											(34.7)												—						—
REO (Other assets)																											(15.2)												—						—
Advances (Capitalization upon Ginnie Mae modifications)																											4.4												—						—
Other																											(0.9)												—						—
Net addition (disposition/derecognition)																											159.3												(38.7)						(25.6)
Included in earnings:
Change in fair value (1)																											11.7												(11.1)						32.0
Ending balance																											$	203.1											$	(248.9)					$	5.6

																											Loans Held for Sale - Fair Value												ESS Financing Liability						IRLCs
Year Ended December 31, 2022
Beginning balance																											$	220.9											$	—					$	18.1
Purchases, issuances, sales and settlements
Purchases and other																											140.4												—						—
Issuances (1)																											—												(200.9)						168.0
Sales																											(318.0)												—						—
Settlements																											—												6.6						—
Transfers:
Loans held for sale, at fair value (1)																											—												—						(141.5)
Receivables, net																											(4.2)												—						—
Other assets																											(0.3)												(6.1)						—
Net addition (disposition/derecognition)																											(182.1)												(200.5)						26.5
Included in earnings:
Change in fair value (1)																											(6.8)												1.4						(45.3)
Ending balance																											$	32.1											$	(199.0)					$	(0.7)

															Loans Held for Sale - Fair Value						Mortgage-Backed Securities												IRLCs
Year Ended December 31, 2021
Beginning balance															$	51.1					$	2.0											$	22.7
Purchases, issuances, sales and settlements
Purchases															436.2						—												—
Issuances (1)															—						—												627.7
Sales															(260.0)						(1.6)												—
Settlements																					—												—
Transfers:
Loans held for sale, at fair value (1)															—						—												(591.7)
Receivables, net															(1.6)						—												—
Other assets															(0.4)						—												—
Net addition (disposition/derecognition)															174.1						(1.6)												36.0
Included in earnings:
Change in fair value (1)															(4.3)						(0.4)												(40.6)
Ending balance															$	220.9					$	—											$	18.1

(1)IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $6.3 million, $(18.8) million and $(4.6) million for 2023, 2022 and 2021, respectively. See Note 17 — Derivative Financial Instruments and Hedging Activities.

Summary of Estimated Change in the Value of MSRs Carried at Fair Value

The following table summarizes the estimated change in the value of the MSRs as of December 31, 2023 given hypothetical increases in lifetime prepayments and yield assumptions:

Adverse change in fair value			10%						20%
Change in weighted average prepayment speeds (in percentage points)			0.9						1.9
Change in fair value due to change in weighted average prepayment speeds			$	(65.5)					$	(127.3)
Change in weighted average discount rate (in percentage points)			0.9						1.9
Change in fair value due to change in weighted average discount rate			$	(68.6)					$	(131.9)

Loans Held for Investment

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

			December 31,
Significant unobservable assumptions			2023						2022
Life in years
Range			0.8 to 7.9						1.0 to 7.6
Weighted average			5.2						5.0
Conditional prepayment rate, including voluntary and involuntary prepayments
Range			12.0% to 35.4%						13.2% to 45.0%
Weighted average			17.2		%				18.0		%
Discount rate			4.9		%				5.1		%

Fair Value Mortgage Servicing Rights

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

			December 31,
			2023												2022
Significant unobservable assumptions			Agency						Non-Agency						Agency						Non-Agency
Weighted average prepayment speed			7.7		%				7.9		%				6.9		%				7.9		%
Weighted average lifetime delinquency rate			1.3		%				10.0		%				1.4		%				10.1		%
Weighted average discount rate			9.2		%				11.4		%				9.6		%				10.6		%
Weighted average cost to service (in dollars)			$	71					$	192					$	72					$	201

HMBS - Related Borrowings

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

			December 31,
Significant unobservable assumptions			2023						2022
Life in years
Range			0.8 to 7.9						1.0 to 7.6
Weighted average			5.2						5.0
Conditional prepayment rate
Range			12.0% to 35.4%						13.2% to 45.0%
Weighted average			17.2		%				18.0		%
Discount rate			4.9		%				5.0		%

Mortgage Servicing Rights Pledged

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Significant Assumptions used in Valuation

			December 31,
Significant unobservable assumptions			2023						2022
Weighted average prepayment speed			6.5		%				7.6		%
Weighted average delinquency rate			2.8		%				7.1		%
Weighted average subservicing life (in years)			4.3						5.6
Weighted average discount rate			9.6		%				10.2		%
Weighted average cost to service (in dollars)			$	130					$	174

X

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisLineItems
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisValuationTechniquesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-11

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

+ Details

Name:	us-gaap_ScheduleOfSensitivityAnalysisOfFairValueOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_LoansHeldforInvestmentReverseMortgagesMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_FairValueMortgageServicingRightsMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_HMBSRelatedBorrowingsMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_FinancialInstrumentAxis=ocn_MortgageServicingRightsPledgedMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: