XML 43 R19.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Other Financing Liabilities, at Fair Value | 12 Months Ended
--- | ---
Dec. 31, 2024
Transfers and Servicing [Abstract] |
Other Financing Liabilities, at Fair Value | Note 8 — Other Financing Liabilities, at Fair Value The following table presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 14 — Borrowings for ESS financing liability carried at amortized cost).
|  |  |  |  |  |  | Outstanding Balance at December 31,
Borrowing Type | Collateral |  |  |  | Maturity |  | 2024 |  | 2023
MSR transfers not qualifying for sale accounting (1)(3): |  |  |  |  |  |  |  |  |
Pledged MSR liability, at fair value - MAV | MSRs |  |  |  | (1) |  | $ | 322.7 |  |  | $ | 409.2 |
Rights to MSRs Agreements, at fair value - Rithm | MSRs |  |  |  | (1) |  | 115.1 |  |  | 121.0 |
Pledged MSR liability, at fair value - Others | MSRs |  |  |  | (1) |  | 145.8 |  |  | 115.3 |
Total Pledged MSR liability, at fair value |  |  |  |  |  |  | 583.5 |  |  | 645.5 |
ESS financing liability, at fair value (2) | MSRs |  |  |  | (2) |  | 263.3 |  |  | 248.9 |
Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) | Loans held for investment |  |  |  | November 2033 |  | — |  |  | 5.6 |
Total Other financing liabilities, at fair value |  |  |  |  |  |  | $ | 846.9 |  |  | $ | 900.0 |
(1)MSRs transferred in transactions which do not qualify for sale accounting treatment. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. (2)Consists of the obligation to remit to third parties a specified percentage of future servicing fee collections (servicing spread) on reference pools of MSRs, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense. (3)Fair value gains and losses of the Pledged MSR liability and ESS financing liability are recognized in MSR valuation adjustments, net in our consolidated statements of operations - see Note 9 — MSR Valuation Adjustments, Net. $33.4 billion UPB of MSR and Pledged MSR liability associated with Rithm servicing agreements were derecognized on December 31, 2023 as MSR sale accounting criteria were met. Effective January 1, 2024, as PHH continues to subservice the portfolio, our statement of operations reflects subservicing fee revenue as opposed to the gross presentation of servicing fee revenue and separate offsetting presentation of servicing fee remittances within Pledged MSR liability expense prior to January 1, 2024. The following table presents the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with MAV and other unrelated parties, including Rithm, that do not qualify for sale accounting.
| Years Ended December 31,
Pledged MSR Liability | 2024 |  | 2023 |  | 2022
Beginning balance | $ | 645.5 |  |  | $ | 931.7 |  |  | $ | 797.1 |
MSR transfers |  |  |  |  |
MSR transfers to MAV | — |  |  | 81.1 |  |  | 85.6 |
MSR transfers to Rithm and Others | 26.2 |  |  | 100.0 |  |  | 0.6 |
Total MSR transfers | 26.2 |  |  | 181.0 |  |  | 86.3 |
Derecognition of financing liability |  |  |  |  |
Derecognition of financing liability - Rithm (1) | (0.1) |  |  | (421.7) |  |  | (0.7) |
Derecognition of financing liability - MAV (2) | (85.7) |  |  | (32.5) |  |  | (39.0) |
Total derecognition of financing liability | (85.7) |  |  | (454.3) |  |  | (39.7) |
Fair value (gain) loss |  |  |  |  |
Changes in fair value due to inputs and assumptions | 40.3 |  |  | 51.3 |  |  | 192.1 |
Realization of expected cash flows | (42.8) |  |  | (64.2) |  |  | (104.1) |
Total fair value (gain) loss | (2.4) |  |  | (12.9) |  |  | 88.0 |
Ending balance (3) | $ | 583.5 |  |  | $ | 645.5 |  |  | $ | 931.7 |
(1)On December 31, 2023, we derecognized a portion of the Rithm Pledged MSR liability with a UPB of $33.4 billion as MSR sale accounting criteria were met upon the renewal of the servicing agreements. (2)During 2024, 2023 and 2022, we derecognized a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to third parties with a UPB of $5.5 billion, $2.3 billion and $2.9 billion, respectively. (3)The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by PHH and other contractual cash flows. The following tables present the Pledged MSR liability expense recorded in connection with the MSR sale agreements with MAV, Rithm and others that do not qualify for sale accounting and the ESS financing liabilities.
| Year Ended December 31, 2024
| Rithm and Others |  | MAV |  | Total
Servicing fees collected on behalf of MAV, Rithm and others | $ | 75.3 |  |  | $ | 63.8 |  |  | $ | 139.1 |
Less: Subservicing fee retained by Onity | (17.7) |  |  | (8.9) |  |  | (26.6) |
Ancillary fee/income and other settlement (including expense reimbursement) | 12.1 |  |  | (1.0) |  |  | 11.1 |
Transferred MSR net servicing fee remittance | $ | 69.7 |  |  | $ | 54.0 |  |  | 123.7 |
ESS servicing spread remittance |  |  |  |  | 51.8 |
Pledged MSR liability expense |  |  |  |  | $ | 175.4 |
| Year Ended December 31, 2023 |  |
| Rithm and Others (1) |  | MAV |  | Total |
Servicing fees collected on behalf of MAV, Rithm and others | $ | 241.5 |  |  | 67.4 |  |  | $ | 308.9 |  |  |
Less: Subservicing fee retained by Onity | (68.4) |  |  | (9.2) |  |  | (77.6) |  |  |
Ancillary fee/income and other settlement (including expense reimbursement) | 14.3 |  |  | (0.8) |  |  | 13.5 |  |  |
Transferred MSR net servicing fee remittance | $ | 187.4 |  |  | $ | 57.5 |  |  | 244.8 |  |  |
ESS servicing spread remittance |  |  |  |  | 51.5 |  |  |
Pledged MSR liability expense |  |  |  |  | $ | 296.3 |  |  |
(1)Includes $175.5 million of servicing fees collected on behalf of Rithm, $50.7 million of subservicing fee retained and $124.9 million of net servicing fee remittance related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023.
| Year Ended December 31, 2022
| Rithm and Others (1) |  | MAV |  | Total
Servicing fees collected on behalf of Rithm and MAV | $ | 255.0 |  |  | 67.5 |  |  | $ | 322.5 |
Less: Subservicing fee retained by Onity | (74.0) |  |  | (8.8) |  |  | (82.8) |
Ancillary fee/income and other settlement (including expense reimbursement) | 5.7 |  |  | 0.4 |  |  | 6.1 |
Transferred MSR net servicing fee remittance | $ | 186.7 |  |  | $ | 59.1 |  |  | 245.9 |
ESS servicing spread remittance |  |  |  |  | 9.1 |
Pledged MSR liability expense |  |  |  |  | $ | 255.0 |
(1)Includes $194.7 million of servicing fees collected on behalf of Rithm, $56.0 million of subservicing fee retained and $138.7 million of net servicing fee remittance related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. MAV (Related Party) Transactions PHH entered into agreements to sell MSR portfolios to its related party MAV, on a bulk and flow basis, for which PHH has been retained as subservicer. While MSR legal title has transferred to MAV, the transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreement. See Note 12 — Investment in Equity Method Investee and Related Party Transactions. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheet. Rithm Transactions Starting in 2012, Onity and PHH entered into agreements to sell MSRs and the related servicing advances to Rithm, for which PHH has been retained as subservicer. As of December 31, 2023 and 2024, all transactions met sale accounting treatment, except for the agreement to sell a $9.1 billion MSR portfolio to Rithm, referred to as Rights to MSRs (or RMSR). While most of the economics and risks of the MSR and related advances have contractually transferred to Rithm, the MSR legal title was retained by Onity and the third-party consents required for title transfer were not obtained, causing the transactions to be accounted for as secured financing. Accordingly, we continue to report $115.1 million MSR and an associated Pledged MSR liability on our consolidated balance sheet. Prior to December 31, 2023, while MSR legal title had transferred to Rithm, other MSR sale transactions with a UPB of $33.4 billion did not qualify for sale accounting treatment, primarily due to the length of the non-cancellable term of the subservicing agreements. On December 31, 2023, we derecognized $421.7 million non-Agency MSRs and Pledged MSR liability associated with Rithm subservicing agreements with a UPB of $33.4 billion for which MSR sale accounting criteria were then met. Specifically, after certain contractual amendments, starting on December 31, 2023, the parties have the right to cancel or decline to renew the servicing agreements within a reasonable period of time. We have accounted for these agreements as subservicing since December 31, 2023. The RMSR agreement and subservicing agreements are subject to automatic one-year renewals, unless Onity provides seven months’ advance notice of termination, or Rithm provides three months’ advance notice of termination. In November 2024, Onity and Rithm agreed to extend the subservicing agreements through February 1, 2026, with subsequent, automatic one-year renewals if notice of termination is not provided by July 1, 2025 by Onity or November 1, 2025 by Rithm. In connection with the November 2024 renewal, the parties made changes to certain economic terms of the agreements including a reduction to Onity’s subservicing fees. If Rithm exercises its termination right of the $9.1 billion RMSR agreement, Rithm has the option of seeking (i) the transfer of the MSRs through a sale to a third party of its Rights to MSRs (together with a transfer of Onity’s title to those MSRs) or (ii) a substitute RMSR arrangement that substantially replicates the Rights to MSRs structure under which we would transfer title to the MSRs to a successor servicer and Rithm would continue to own the economic rights and obligations related to the MSRs. In the case of option (i), we have a purchase option as specified in the RMSR Agreements. If Rithm is not able to sell the Rights to MSRs or establish a substitute RMSR arrangement with another servicer, Rithm has the right to revoke its termination notice and re-instate the applicable servicing addendum or to establish a subservicing arrangement whereby the MSRs remaining subject to the RMSR Agreements would be transferred to up to three subservicers who would subservice under Onity’s oversight. If such a subservicing arrangement were established, Onity would receive an oversight fee and reimbursement of expenses. We may also agree on alternative arrangements that are not contemplated under our existing agreements or that are variations of those contemplated under our existing agreements. Other MSR Capital Partner Transactions PHH entered into agreements to sell MSR portfolios to different unrelated third parties, referred to as MSR capital partners, on a bulk and flow basis, for which PHH has been retained as subservicer. While MSR legal title has transferred to the MSR capital partners, the transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreements. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheets.

X
- Definition This represents the disclosure of the rights to mortgage servicing rights sold and subsequent transfer of servicing assets, unpaid principal balance of assets upon receiving the consents and changes in the financing liabilities related to rights to mortgage servicing rights sold. + References No definition available. + Details
Name: | ocn_RightsToMortgageServicingRightsTextBlock
Namespace Prefix: | ocn_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration