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CUSTOMER CONCENTRATION | 3 Months Ended
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Mar. 31, 2024
Risks and Uncertainties [Abstract] |
CUSTOMER CONCENTRATION | CUSTOMER CONCENTRATION Ocwen Ocwen Financial Corporation (together with its subsidiaries, “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others. During the three months ended March 31, 2024, Ocwen was our largest customer, accounting for 45% of our total revenue. Ocwen purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Ocwen Services Agreements”) with terms extending through August 2030. Certain of the Ocwen Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced and subserviced by Ocwen when Ocwen engages us as the service provider, and revenue earned directly from Ocwen, pursuant to the Ocwen Services Agreements. For the three months ended March 31, 2024 and 2023, we recognized revenue from Ocwen of $17.7 million and $17.6 million, respectively. Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows:
|  |  |  | Three months ended March 31,
|  |  |  |  |  | 2024 |  | 2023
Servicer and Real Estate |  |  |  |  |  | 56 | % |  | 55 | %
Origination |  |  |  |  |  | — | % |  | — | %
Corporate and Others |  |  |  |  |  | — | % |  | — | %
Consolidated revenue |  |  |  |  |  | 45 | % |  | 45 | %
We earn additional revenue related to the portfolios serviced and subserviced by Ocwen when a party other than Ocwen or the MSRs owner selects Altisource as the service provider. For the three months ended March 31, 2024 and 2023, we recognized $2.8 million and $2.9 million, respectively, of such revenue. These amounts are not included in deriving revenue from Ocwen and revenue from Ocwen as a percentage of revenue discussed above. As of March 31, 2024, accounts receivable from Ocwen totaled $4.9 million, $4.2 million of which was billed and $0.7 million of which was unbilled. As of December 31, 2023, accounts receivable from Ocwen totaled $3.4 million, $2.2 million of which was billed and $1.2 million of which was unbilled. Rithm Rithm Capital Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “Rithm”) (formerly New Residential Investment Corp.) is an asset manager focused on the real estate and financial services industries. Ocwen has disclosed that Rithm is one of its largest servicing clients. As of December 31, 2023, Ocwen reported that approximately 16% of loans serviced and subserviced by Ocwen (measured in unpaid principal balance (“UPB”)) and approximately 67% of all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”). Rithm purchases brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the subservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with terms extending through August 2025. For the three months ended March 31, 2024 and 2023, we recognized revenue from Rithm of $0.7 million and $0.8 million, respectively, under the Brokerage Agreement. For the three months ended March 31, 2024 and 2023, we recognized additional revenue of $2.9 million and $3.3 million, respectively, relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//275/tableOfContent + Details
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