Altisource Portfolio Solutions (ASPS) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document and Entity Information
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	1,462,418
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		18,877,614
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 134,948,000	$ 179,327,000
Available for sale securities	45,174,000	0
Accounts receivable, net	101,580,000	105,023,000
Prepaid expenses and other current assets	31,927,000	21,751,000
Total current assets	313,629,000	306,101,000
Premises and equipment, net	109,785,000	119,121,000
Goodwill	89,905,000	82,801,000
Intangible assets, net	162,976,000	197,003,000
Deferred tax assets, net	4,847,000	3,619,000
Other assets	12,190,000	13,153,000
Total assets	693,332,000	721,798,000
Current liabilities:
Accounts payable and accrued expenses	101,361,000	91,871,000
Current portion of long-term debt	5,945,000	5,945,000
Deferred revenue	10,927,000	15,060,000
Other current liabilities	13,846,000	16,266,000
Total current liabilities	132,079,000	129,142,000
Long-term debt, less current portion	468,689,000	522,233,000
Other non-current liabilities	13,790,000	18,153,000
Commitments, contingencies and regulatory matters (Note 22)
Equity:
Common stock ($1.00 par value; 25,413 shares authorized and issued and 18,878 outstanding as of September 30, 2016; 25,413 shares authorized and issued and 19,021 outstanding as of December 31, 2015)	25,413,000	25,413,000
Additional paid-in capital	101,013,000	96,321,000
Retained earnings	359,435,000	369,270,000
Accumulated other comprehensive loss	(2,156,000)	0
Treasury stock, at cost (6,535 shares as of September 30, 2016 and 6,392 shares as of December 31, 2015)	(406,559,000)	(440,026,000)
Altisource equity	77,146,000	50,978,000
Non-controlling interests	1,628,000	1,292,000
Total equity	78,774,000	52,270,000
Total liabilities and equity	$ 693,332,000	$ 721,798,000

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	25,413,000	25,413,000
Common stock, shares issued (in shares)	25,413,000	25,413,000
Common stock, shares outstanding (in shares)	18,878,000	19,021,000
Treasury stock, shares (in shares)	6,535,000	6,392,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 252,745	$ 272,776	$ 758,676	$ 781,579
Cost of revenue	174,002	173,850	517,236	514,835
Gross profit	78,743	98,926	241,440	266,744
Selling, general and administrative expenses	53,886	51,338	161,709	155,310
Change in the fair value of Equator Earn Out	0	0	0	(7,591)
Income from operations	24,857	47,588	79,731	119,025
Other income (expense), net:
Interest expense	(5,952)	(7,041)	(18,481)	(21,396)
Loss on HLSS equity securities and dividends received, net	0	0	0	(1,854)
Other income (expense), net	(109)	653	2,608	1,477
Total other income (expense), net	(6,061)	(6,388)	(15,873)	(21,773)
Income before income taxes and non-controlling interests	18,796	41,200	63,858	97,252
Income tax provision	(7,324)	(3,303)	(12,808)	(8,101)
Net income	11,472	37,897	51,050	89,151
Net income attributable to non-controlling interests	(883)	(851)	(1,973)	(2,457)
Net income attributable to Altisource	$ 10,589	$ 37,046	$ 49,077	$ 86,694
Earnings per share:
Basic (in usd per share)	$ 0.57	$ 1.94	$ 2.63	$ 4.42
Diluted (in usd per share)	$ 0.54	$ 1.82	$ 2.49	$ 4.19
Weighted average shares outstanding:
Basic (in shares)	18,715	19,091	18,669	19,608
Diluted (in shares)	19,568	20,411	19,738	20,688
Comprehensive income:
Unrealized gain (loss) on securities, net of income tax benefit (provision) of $(2,070), $0, $889, $0	$ 5,016	$ 0	$ (2,156)	$ 0
Comprehensive income, net of tax	16,488	37,897	48,894	89,151
Comprehensive income attributable to non-controlling interests	(883)	(851)	(1,973)	(2,457)
Comprehensive income attributable to Altisource	$ 15,605	$ 37,046	$ 46,921	$ 86,694

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Income tax benefit (provision) on securities	$ (2,070)	$ 0	$ 889	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Treasury stock, at cost	Non-controlling interests
Balance at Dec. 31, 2014	$ 41,443	$ 25,413	$ 91,509	$ 367,967	$ 0	$ (444,495)	$ 1,049
Balance (in shares) at Dec. 31, 2014		25,413
Increase (Decrease) in Equity
Net income	89,151			86,694			2,457
Other comprehensive loss, net of tax	0
Distributions to non-controlling interest holders	(2,144)						(2,144)
Share-based compensation expense	3,258		3,258
Exercise of stock options	332			(2,054)		2,386
Issuance of restricted shares for CastleLine acquisition	14,427			(21,612)		36,039
Repurchase of shares	(48,971)					(48,971)
Balance at Sep. 30, 2015	97,496	$ 25,413	94,767	430,995	0	(455,041)	1,362
Balance (in shares) at Sep. 30, 2015		25,413
Balance at Dec. 31, 2015	52,270	$ 25,413	96,321	369,270	0	(440,026)	1,292
Balance (in shares) at Dec. 31, 2015		25,413
Increase (Decrease) in Equity
Net income	51,050			49,077			1,973
Other comprehensive loss, net of tax	(2,156)				(2,156)
Distributions to non-controlling interest holders	(1,637)						(1,637)
Share-based compensation expense	4,692		4,692
Exercise of stock options	8,876			(58,912)		67,788
Repurchase of shares	(34,321)					(34,321)
Balance at Sep. 30, 2016	$ 78,774	$ 25,413	$ 101,013	$ 359,435	$ (2,156)	$ (406,559)	$ 1,628
Balance (in shares) at Sep. 30, 2016		25,413

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 51,050	$ 89,151
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,521	27,637
Amortization of intangible assets	36,432	27,995
Loss on HLSS equity securities and dividends received, net	0	1,854
Change in the fair value of acquisition related contingent consideration	(1,174)	(7,302)
Share-based compensation expense	4,692	3,258
Bad debt expense	763	3,477
Gain on early extinguishment of debt	(5,464)	(1,986)
Amortization of debt discount	307	379
Amortization of debt issuance costs	850	1,045
Deferred income taxes	17	54
Loss on disposal of fixed assets	30	50
Changes in operating assets and liabilities:
Accounts receivable	3,505	(19,681)
Prepaid expenses and other current assets	(10,167)	2,001
Other assets	496	2,085
Accounts payable and accrued expenses	7,005	(20,876)
Other current and non-current liabilities	(9,828)	10
Net cash provided by operating activities	106,035	109,151
Cash flows from investing activities:
Additions to premises and equipment	(16,525)	(27,670)
Acquisition of businesses, net of cash acquired	(9,617)	(11,193)
Purchase of available for sale securities	(48,219)	(29,966)
Proceeds received from sale of and dividends from HLSS equity securities	0	28,112
Other investing activities	266	722
Net cash used in investing activities	(74,095)	(39,995)
Cash flows from financing activities:
Repayment and repurchases of long-term debt	(49,237)	(29,087)
Proceeds from stock option exercises	8,876	332
Purchase of treasury stock	(34,321)	(48,971)
Distributions to non-controlling interests	(1,637)	(2,144)
Other financing activities	0	(500)
Net cash used in financing activities	(76,319)	(80,370)
Net decrease in cash and cash equivalents	(44,379)	(11,214)
Cash and cash equivalents at the beginning of the period	179,327	161,361
Cash and cash equivalents at the end of the period	134,948	150,147
Supplemental cash flow information:
Interest paid	17,244	19,770
Income taxes paid, net	14,178	6,638
Non-cash investing and financing activities:
Acquisition of businesses with restricted shares	0	14,427
Increase (decrease) in payables for purchases of premises and equipment	$ 2,458	$ (5,326)

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	ORGANIZATION AND BASIS OF PRESENTATION Description of Business Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. Altisource’s proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics improve outcomes for marketplace participants. We were formed under the laws of Luxembourg and are publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” We conduct our operations through three reportable segments: Mortgage Services, Financial Services and Technology Services. In addition, we report our corporate related expenditures and eliminations separately (see Note 23 for a description of our business segments). Basis of Accounting and Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation. Altisource consolidates two cooperative entities which are managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource: Best Partners Mortgage Cooperative, Inc., a mortgage cooperative doing business as Lenders One ® (“Lenders One”) and Best Partners Mortgage Brokers Cooperative, Inc., a mortgage cooperative doing business as Wholesale One ® (“Wholesale One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option) and to Wholesale One under a management agreement that ends on July 8, 2039 (with automatic renewals for three successive five-year periods). The management agreements between MPA and Lenders One and between MPA and Wholesale One, pursuant to which MPA is the management company, represent variable interests in variable interest entities. MPA is the primary beneficiary of Lenders One and Wholesale One as it has the power to direct the activities that most significantly impact each of these cooperatives’ economic performance and the right to receive benefits from each of these cooperatives. As a result, Lenders One and Wholesale One are presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of September 30, 2016 , Lenders One had total assets of $4.0 million and total liabilities of $1.9 million . As of December 31, 2015 , Lenders One had total assets of $4.9 million and total liabilities of $3.7 million . As of September 30, 2016 and December 31, 2015 , Wholesale One had less than $0.1 million in total assets and less than $0.1 million in total liabilities. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , as filed with the SEC on March 15, 2016. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. Recently Adopted Accounting Pronouncement On January 1, 2016, Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, became effective. As a result of this accounting change, the Company now presents debt issuance costs, net as a direct deduction from the related debt (see Note 12 ). Prior to January 1, 2016, debt issuance costs, net were included in other assets. We adopted the standard retrospectively. Accordingly, prior period amounts were reclassified to conform to the current presentation. Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This standard establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of this standard is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This standard will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. It also amends certain financial statement presentation and disclosure requirements associated with the fair value of financial instruments. This standard will be effective for annual periods beginning after December 31, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This standard introduces a new lessee model that brings substantially all leases on the balance sheet. The standard will require companies to recognize lease assets and lease liabilities on their balance sheets and disclose key information about leasing arrangements in their financial statements. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This standard clarifies guidance on principal versus agent considerations in connection with revenue recognition. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard will require companies to recognize all award-related excess tax benefits and tax deficiencies in their income statements, classify any excess tax benefits as an operating activity in their statements of cash flows, provide companies with the option of estimating forfeitures or recognizing forfeitures as they occur, modify the statutory tax withholding requirements and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in their statements of cash flows. This standard will be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . This standard provides guidance on identifying performance obligations in a contract with a customer and clarifying several licensing considerations, including whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time) and guidance on sales-based and usage-based royalties. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . This standard addresses collectability, sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition and completed contracts at transition. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard will require that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position.

CUSTOMER CONCENTRATION

CUSTOMER CONCENTRATION	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATION	CUSTOMER CONCENTRATION Ocwen Financial Corporation together with its subsidiaries (“Ocwen”) is our largest customer. Ocwen purchases certain mortgage services and technology services from us under the terms of master services agreements and amendments thereto (collectively, the “Service Agreements”) with terms extending through August 2025. Certain of the Service Agreements, among other things, contain a “most favored nation” provision and the parties to the Service Agreements have the right to renegotiate pricing. Certain of the Service Agreements also prohibit Ocwen from establishing fee-based businesses that would directly or indirectly compete with Altisource’s services with respect to the Homeward Residential, Inc. and Residential Capital, LLC servicing portfolios acquired by Ocwen in December 2012 and February 2013, respectively. In addition, Ocwen purchases certain origination services from Altisource under an agreement that extends through January 2017. Revenue from Ocwen primarily consists of revenue earned directly from Ocwen and revenue earned from the loans serviced by Ocwen when Ocwen designates us as the service provider. Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Mortgage Services 59 % 64 % 59 % 63 % Financial Services 16 % 16 % 17 % 20 % Technology Services 41 % 51 % 41 % 52 % Consolidated revenue 56 % 60 % 56 % 59 % For the nine months ended September 30, 2016 and 2015 , we generated revenue from Ocwen of $422.2 million and $464.8 million , respectively ( $141.6 million and $163.8 million for the third quarter of 2016 and 2015 , respectively). Services provided to Ocwen during such periods and reported in the Mortgage Services segment included real estate asset management and sales, residential property valuation, trustee management services, property inspection and preservation services and insurance services. Services provided to Ocwen and reported in the Financial Services segment included mortgage charge-off collections. Services provided to Ocwen and reported in the Technology Services segment included information technology infrastructure management and software applications. As of September 30, 2016 , accounts receivable from Ocwen totaled $32.6 million , $21.8 million of which was billed and $10.8 million of which was unbilled. As of December 31, 2015 , accounts receivable from Ocwen totaled $38.2 million , $20.4 million of which was billed and $17.8 million of which was unbilled. We earn additional revenue related to the portfolios serviced by Ocwen when a party other than Ocwen selects Altisource as the service provider. For the nine months ended September 30, 2016 and 2015 , we recognized revenue of $146.0 million and $164.7 million , respectively ( $48.0 million and $56.7 million for the third quarter of 2016 and 2015 , respectively), related to the portfolios serviced by Ocwen when a party other than Ocwen selected Altisource as the service provider. These amounts are not included in deriving revenue from Ocwen as a percentage of revenue in the table above.

TRANSACTIONS WITH RELATED PARTI

TRANSACTIONS WITH RELATED PARTIES	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
TRANSACTIONS WITH RELATED PARTIES	TRANSACTIONS WITH RELATED PARTIES Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen and Chairman of each of Home Loan Servicing Solutions, Ltd. (“HLSS”), Altisource Residential Corporation (“Residential”) and Altisource Asset Management Corporation (“AAMC”). Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, HLSS, Residential and AAMC and is no longer a member of the Board of Directors of any of these companies. Consequently, these companies are no longer related parties of Altisource, as defined by FASB ASC Topic 850, Related Party Disclosures . The disclosures in this note are limited to the periods that each of Ocwen, HLSS, Residential and AAMC were related parties of Altisource and are not necessarily reflective of current activities with these former related parties. Ocwen Revenue For the period from January 1, 2015 through January 16, 2015, we estimated that we generated revenue from Ocwen of $22.9 million . Services provided to Ocwen during such period included real estate asset management and sales, residential property valuation, trustee management services, property inspection and preservation, insurance services, charge-off mortgage collections, information technology infrastructure management and software applications. We record revenue we earn from Ocwen under the Service Agreements at rates we believe to be comparable market rates as we believe they are consistent with the fees we charge to other customers and/or fees charged by our competitors for comparable services. Cost of Revenue and Selling, General and Administrative Expenses At times, we have used Ocwen’s contractors and/or employees to support Altisource related services. Ocwen generally billed us for these contractors and/or employees based on their fully-allocated cost. Additionally, through March 31, 2015, we purchased certain data relating to Ocwen’s servicing portfolio in connection with a Data Access and Services Agreement. Based upon our previously provided notice, the Data Access and Services Agreement was terminated effective March 31, 2015. For the period from January 1, 2015 through January 16, 2015, we estimated that we incurred $1.9 million of expenses related to these items. These amounts are reflected as a component of cost of revenue in the condensed consolidated statements of operations and comprehensive income. We provided certain other services to Ocwen and Ocwen provided certain other services to us in connection with Support Services Agreements. These services primarily included such areas as vendor management, corporate services and facilities related services. Billings for these services were generally based on the fully-allocated cost of providing the service based on an estimate of the time and expense of providing the service or estimates thereof. Of the January 2015 billings to Ocwen, we estimated that $0.1 million related to the period from January 1, 2015 through January 16, 2015. Of the January 2015 billings from Ocwen, we estimated that $0.3 million related to the period from January 1, 2015 through January 16, 2015. These amounts are reflected as a component of selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. HLSS Prior to April 2015, HLSS was a publicly traded company whose primary objective was the acquisition of mortgage servicing rights and related servicing advances, loans held for investment and other residential mortgage related assets. We provided HLSS certain finance, human resources, tax and facilities services and sold information technology services to HLSS under a support services agreement. For the period from January 1, 2015 through January 16, 2015, our billings to HLSS were immaterial. Residential and AAMC Residential is focused on providing quality, affordable rental homes to families throughout the United States. AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles that own real estate related assets. Its initial client is Residential. We have agreements and amendments thereto, which extend through 2027, to provide Residential with renovation management, lease management, property management, real estate owned asset management, title insurance, settlement and valuation services. In addition, we have agreements with Residential and AAMC pursuant to which we may provide services such as finance, human resources, facilities, technology and insurance risk management. Further, we have separate agreements for certain services related to income tax matters, trademark licenses and technology products and services. For the period from January 1, 2015 through January 16, 2015, we estimated that we generated revenue from Residential of $1.0 million . This amount is reflected in revenue in the condensed consolidated statements of operations and comprehensive income. This excludes revenue from services we provide to Residential’s loans serviced by Ocwen or other loan servicers where we were retained by Ocwen or Residential’s other loan servicers. For the period from January 1, 2015 through January 16, 2015, our billings to AAMC were immaterial.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Granite Acquisition On July 29, 2016 , we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for $9.6 million in cash at closing. Granite provides residential and commercial loan disbursement processing, risk mitigation and construction inspection services to lenders. The Granite acquisition is not material in relation to the Company’s results of operations or financial position. The preliminary allocation of the purchase price is as follows: (in thousands) Accounts receivable, net $ 1,103 Prepaid expenses 25 Other assets 25 Premises and equipment, net 299 Goodwill 8,449 9,901 Accounts payable and accrued expenses (111 ) Other current liabilities (173 ) Purchase price $ 9,617 RentRange, Investability and Onit Solutions Acquisitions On October 9, 2015, we acquired GoldenGator, LLC (doing business as RentRange ® ) (“RentRange”), REIsmart, LLC (doing business as Investability ™ ) (“Investability”) and Onit Solutions, LLC, a support company for RentRange and Investability (collectively “RentRange and Investability”) for $24.8 million . RentRange is a leading provider of rental home data and information to the financial services and real estate industries, delivering a wide assortment of address and geography level data, analytics and rent-based valuation solutions for single and multi-family properties. Investability is an online residential real estate search and acquisition platform that utilizes data and analytics to allow real estate investors to access the estimated cash flow, capitalization rate, net yield and market value of properties for sale in the United States. The purchase price was composed of $17.5 million in cash and 247 thousand shares of restricted common stock of the Company with a value of $7.3 million as of the closing date. Upon issuance, the restricted shares were subject to transfer restrictions and potential forfeiture provisions. These restrictions and forfeiture provisions will lapse over a four year period, subject to the recipients meeting certain continued employment conditions with the Company and the satisfaction of certain acquisition related escrow release conditions. During the third quarter of 2016, management adjusted the allocation of the purchase price based upon information that subsequently became available relating to acquisition date working capital and the purchase price allocation to intangible assets. The working capital adjustment resulted in an obligation of the sellers to pay the Company $0.2 million . RentRange and Investability are not material in relation to the Company’s results of operations or financial position. The initial and final allocation of the purchase price is as follows: (in thousands) Initial purchase price allocation Adjustments Final purchase price allocation Cash $ 3 $ — $ 3 Accounts receivable, net 245 (76 ) 169 Premises and equipment, net 2,471 (1,067 ) 1,404 Other assets 199 (196 ) 3 Trademarks and trade names 1,205 — 1,205 Databases/other 910 1,035 1,945 Non-compete agreements 330 — 330 Customer relationships 255 — 255 Goodwill 19,565 50 19,615 25,183 (254 ) 24,929 Accounts payable and accrued expenses (391 ) 46 (345 ) Purchase price $ 24,792 $ (208 ) $ 24,584 CastleLine Acquisition On July 17, 2015, we acquired CastleLine Holdings, LLC and its subsidiaries (“CastleLine”) for $33.4 million . CastleLine is a specialty risk management and insurance services firm that provides financial products and services to parties involved in the origination, underwriting, purchase and securitization of residential mortgages. The purchase consideration was composed of $12.3 million of cash at closing, $10.5 million of cash payable over four years from the acquisition date and 495 thousand shares of restricted common stock of the Company, that were subject to transfer restrictions, with a value of $14.4 million as of the closing date. Of the cash payable following acquisition, $3.8 million is contingent on certain future employment conditions of certain of the sellers, and therefore excluded from the purchase price. During the second quarter of 2016, management adjusted the allocation of the purchase price based upon information that subsequently became available relating to acquisition date working capital and the purchase price allocation to intangible assets. The CastleLine acquisition is not material in relation to the Company’s results of operations or financial position. The initial and final allocation of the purchase price is as follows: (in thousands) Initial purchase price allocation Adjustments Final purchase price allocation Cash $ 1,088 $ — $ 1,088 Accounts receivable, net 510 (410 ) 100 Prepaid expenses 66 (46 ) 20 Restricted cash 2,501 — 2,501 Non-compete agreements 1,105 25 1,130 Databases/other 465 1,335 1,800 Customer relationships 395 — 395 Trademarks and trade names 150 10 160 Deferred taxes — 356 356 Goodwill 28,125 (1,395 ) 26,730 34,405 (125 ) 34,280 Accounts payable and accrued expenses (875 ) 38 (837 ) Deferred revenue (87 ) 87 — Purchase price $ 33,443 $ — $ 33,443

AVAILABLE FOR SALE SECURITIES

AVAILABLE FOR SALE SECURITIES	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
AVAILABLE FOR SALE SECURITIES	AVAILABLE FOR SALE SECURITIES During the nine months ended September 30, 2016 , we purchased 4.1 million shares of Residential common stock for $48.2 million ( no comparative amount in the third quarter of 2016 ). This investment is classified as available for sale and reflected in the condensed consolidated balance sheets at fair value at the balance sheet date ( $45.2 million as of September 30, 2016 ) ( no comparative amount as of December 31, 2015 ). Unrealized gains and losses on available for sale securities are reflected in other comprehensive income, unless there is an impairment that is other than temporary. In the event that a decline in market value is other than temporary, we would record a charge to earnings and a new cost basis in the investment would be established. During the nine months ended September 30, 2016 , we incurred expenses of $3.4 million and earned dividends of $1.0 million related to this investment ( no comparative amounts in 2015 ).

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 63,066 $ 67,021 Unbilled 48,288 56,458 111,354 123,479 Less: allowance for doubtful accounts (9,774 ) (18,456 ) Total $ 101,580 $ 105,023 Unbilled receivables consist primarily of certain asset management and default management services for which we generally recognize revenues over the service delivery period but bill following completion of the service. We also include amounts in unbilled receivables that are earned during a month and billed in the following month.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, Maintenance agreements, current portion $ 7,213 $ 7,000 Short-term investments in real estate 8,695 — Income taxes receivable 3,132 633 Prepaid expenses 6,166 7,873 Other current assets 6,721 6,245 Total $ 31,927 $ 21,751

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT, NET	PREMISES AND EQUIPMENT, NET Premises and equipment, net consists of the following: (in thousands) September 30, December 31, Computer hardware and software $ 163,140 $ 177,010 Office equipment and other 19,586 21,720 Furniture and fixtures 13,792 14,443 Leasehold improvements 35,726 35,503 232,244 248,676 Less: accumulated depreciation and amortization (122,459 ) (129,555 ) Total $ 109,785 $ 119,121 Depreciation and amortization expense amounted to $27.5 million and $27.6 million for the nine months ended September 30, 2016 and 2015 , respectively ( $9.2 million and $9.2 million for the third quarter of 2016 and 2015 , respectively), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive income.

GOODWILL AND INTANGIBLE ASSETS,

GOODWILL AND INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS, NET	GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following is a summary of goodwill by segment: (in thousands) Mortgage Services Financial Services Total Balance as of December 31, 2015 $ 80,423 $ 2,378 $ 82,801 Acquisition of CastleLine (1) (1,395 ) — (1,395 ) Acquisitions of RentRange and Investability (2) 50 — 50 Acquisition of Granite 8,449 — 8,449 Balance as of September 30, 2016 $ 87,527 $ 2,378 $ 89,905 (1) During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See Note 4 . (2) During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See Note 4 . Intangible assets, net Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) September 30, December 31, September 30, December 31, September 30, December 31, Definite lived intangible assets: Trademarks and trade names 13 $ 15,254 $ 15,244 $ (7,419 ) $ (6,491 ) $ 7,835 $ 8,753 Customer related intangible assets 10 274,428 274,428 (146,890 ) (113,725 ) 127,538 160,703 Operating agreement 20 35,000 35,000 (11,667 ) (10,354 ) 23,333 24,646 Non-compete agreements 4 1,460 1,435 (405 ) (115 ) 1,055 1,320 Intellectual property 10 300 300 (78 ) (55 ) 222 245 Other intangible assets 5 3,745 1,375 (752 ) (39 ) 2,993 1,336 Total $ 330,187 $ 327,782 $ (167,211 ) $ (130,779 ) $ 162,976 $ 197,003 Amortization expense for definite lived intangible assets was $36.4 million and $28.0 million for the nine months ended September 30, 2016 and 2015 , respectively ( $11.5 million and $10.1 million for the third quarter of 2016 and 2015 , respectively). Expected annual definite lived intangible asset amortization for 2016 through 2020 is $47.7 million , $34.6 million , $26.1 million , $20.7 million and $16.8 million , respectively.

OTHER ASSETS

OTHER ASSETS	9 Months Ended
	Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER ASSETS	OTHER ASSETS Other assets consist of the following: (in thousands) September 30, December 31, Security deposits $ 5,599 $ 5,341 Maintenance agreements, non-current portion 1,177 1,570 Restricted cash 4,505 4,801 Other 909 1,441 Total $ 12,190 $ 13,153

ACCOUNTS PAYABLE, ACCRUED EXPEN

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following: (in thousands) September 30, December 31, Accounts payable $ 16,940 $ 11,644 Accrued expenses - general 34,148 30,347 Accrued salaries and benefits 46,417 46,564 Income taxes payable 3,856 3,316 Total $ 101,361 $ 91,871 Other current liabilities consist of the following: (in thousands) September 30, December 31, Unfunded cash account balances $ 2,995 $ 6,395 Other 10,851 9,871 Total $ 13,846 $ 16,266

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consists of the following: (in thousands) September 30, December 31, Senior secured term loan $ 481,140 $ 536,598 Less: debt issuance costs, net (4,778 ) (6,184 ) Less: unamortized discount, net (1,728 ) (2,236 ) Net long-term debt 474,634 528,178 Less: current portion (5,945 ) (5,945 ) Long-term debt, less current portion $ 468,689 $ 522,233 On November 27, 2012, Altisource Solutions S.à r.l., a wholly-owned subsidiary of Altisource Portfolio Solutions S.A., entered into a senior secured term loan agreement with Bank of America, N.A., as administrative agent, and certain lenders. Altisource Portfolio Solutions S.A. and certain wholly-owned subsidiaries are guarantors of the term loan (collectively, the “Guarantors”). We subsequently amended the senior secured term loan agreement to increase the principal amount of the senior secured term loan and, among other changes, re-establish the $200.0 million incremental term loan facility accordion, lower the interest rate, extend the maturity date by approximately one year and increase the maximum amount of Restricted Junior Payments (as defined in the senior secured term loan agreement; other capitalized terms, unless defined herein, are defined in the senior secured term loan agreement). After giving effect to the third amendment entered into on August 1, 2014, the term loan must be repaid in equal consecutive quarterly principal installments of $1.5 million , which commenced on September 30, 2014, with the balance due at maturity. All amounts outstanding under the senior secured term loan agreement will become due on the earlier of (i) December 9, 2020 and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders or as otherwise provided in the senior secured term loan agreement upon the occurrence of any event of default under the senior secured term loan agreement. In addition to the scheduled principal payments, subject to certain exceptions, the term loan is subject to mandatory prepayment upon issuances of debt, casualty and condemnation events and sales of assets, as well as from a percentage of Consolidated Excess Cash Flow if the leverage ratio is greater than 3.00 to 1.00 , as calculated in accordance with the provisions of the senior secured term loan agreement (the percentage increases if the leverage ratio exceeds 3.50 to 1.00 ). No mandatory prepayments were owed for the nine months ended September 30, 2016 . During the nine months ended September 30, 2016 , we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2% , recognizing a net gain of $5.5 million on the early extinguishment of debt ( no repurchases in the third quarter of 2016 ). During the nine months ended September 30, 2015 , we repurchased portions of our senior secured term loan with an aggregate par value of $27.0 million at a weighted average discount of 9.8% , recognizing a net gain of $2.0 million on the early extinguishment of debt (repurchased aggregate par value of $11.0 million at a weighted average discount of 11.0% , recognizing a net gain of $0.9 million on the early extinguishment of debt for the third quarter of 2015 ). The net gains were included in other income (expense), net in the condensed consolidated statements of operations and comprehensive income. The term loan bears interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate . Adjusted Eurodollar Rate loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted Eurodollar Rate for the applicable interest period and (y) 1.00% plus (ii) a 3.50% margin. Base Rate loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Base Rate and (y) 2.00% plus (ii) a 2.50% margin. The interest rate at September 30, 2016 was 4.50% . Term loan payments are guaranteed by the Guarantors and are secured by a pledge of all equity interests of certain subsidiaries as well as a lien on substantially all of the assets of Altisource Solutions S.à r.l. and the Guarantors, subject to certain exceptions. The senior secured term loan agreement includes covenants that restrict or limit, among other things, our ability to: create liens and encumbrances; incur additional indebtedness; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; change lines of business; amend material debt agreements or other material contracts; engage in certain transactions with affiliates; enter into sale/leaseback transactions; grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions; make changes to our fiscal year and engage in mergers and consolidations. The senior secured term loan agreement contains certain events of default, including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the senior secured term loan agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of covenants, (iv) failure to pay principal or interest on any other debt that equals or exceeds $40.0 million when due, (v) default on any other debt that equals or exceeds $40.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events, (viii) entry by a court of one or more judgments against us in an amount in excess of $40.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events and (x) the failure of certain Loan Documents to be in full force and effect. If any event of default occurs and is not cured within applicable grace periods set forth in the senior secured term loan agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. As of September 30, 2016 , debt issuance costs were $4.8 million , net of $5.5 million of accumulated amortization. As of December 31, 2015 , debt issuance costs were $6.2 million , net of $4.1 million of accumulated amortization. Interest expense on the term loans totaled $18.5 million and $21.4 million for the nine months ended September 30, 2016 and 2015 , respectively ( $6.0 million and $7.0 million for the third quarter of 2016 and 2015 , respectively).

OTHER NON-CURRENT LIABILITIES

OTHER NON-CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
OTHER NON-CURRENT LIABILITIES	OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following: (in thousands) September 30, December 31, Acquisition related obligations $ 3,191 $ 8,422 Other non-current liabilities 10,599 9,731 Total $ 13,790 $ 18,153

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The following table presents the carrying amount and estimated fair value of financial instruments held by the Company as of September 30, 2016 and December 31, 2015 . The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP are as follows: September 30, 2016 December 31, 2015 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 134,948 $ 134,948 $ — $ — $ 179,327 $ 179,327 $ — $ — Restricted cash 4,505 4,505 — — 4,801 4,801 — — Available for sale securities 45,174 45,174 — — — — — — Liabilities: Acquisition contingent consideration 2,757 — — 2,757 3,932 — — 3,932 Long-term debt 481,140 — 452,272 — 536,598 — 469,523 — Fair Value Measurements on a Recurring Basis Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair value due to the short-term nature of these instruments and were measured using Level 1 inputs. Available for sale securities are carried at fair value and consist of 4.1 million shares of Residential common stock. Available for sale securities are measured using Level 1 inputs as these securities have quoted prices in active markets. The fair value of our long-term debt is based on quoted market prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs. In accordance with ASC Topic 805, Business Combinations , liabilities for contingent consideration are reflected at fair value and adjusted each reporting period with the change in fair value recognized in earnings. Liabilities for acquisition related contingent consideration were recorded in connection with the acquisitions of certain assets and assumption of certain liabilities of Mortgage Builder Software, Inc. and Owners Advantage, LLC in 2014. We measure the liabilities for acquisition related contingent consideration using Level 3 inputs as they are determined based on the present value of future estimated payments, which include sensitivities pertaining to discount rates and financial projections. During the nine months ended September 30, 2015 , we reached an agreement with the former owners of Equator, LLC (“Equator”) to extinguish any liability for the Equator related contingent consideration (“Equator Earn Out”) in exchange for $0.5 million . In connection with this settlement, we reduced the liability for the Equator Earn Out to $0 and recognized a $7.6 million reduction in operating expenses in the condensed consolidated statements of operations and comprehensive income. There were no transfers between different levels during the periods presented.

SHAREHOLDERS_ EQUITY AND SHARE-

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Stock Repurchase Plan On May 18, 2016 , our shareholders approved a new share repurchase program, which replaced the previous share repurchase program. Under the new program, we are authorized to purchase up to 4.6 million shares of our common stock, based on a limit of 25% of the outstanding shares of common stock on the date of approval at a minimum price of $1.00 per share and a maximum price of $500.00 per share. This is in addition to amounts previously purchased under prior programs. Under the existing and prior programs, we purchased 1.3 million shares of common stock at an average price of $26.94 per share during the nine months ended September 30, 2016 and 1.8 million shares at an average price of $27.90 per share during the nine months ended September 30, 2015 ( 0.5 million shares at an average price of $28.68 per share for the third quarter of 2016 and 0.2 million shares at an average price of $26.88 per share for the third quarter of 2015 ). As of September 30, 2016 , approximately 4.0 million shares of common stock remain available for repurchase under the new program. Our senior secured term loan limits the amount we can spend on share repurchases and may prevent repurchases in certain circumstances. As of September 30, 2016 , approximately $379 million was available to repurchase our common stock under our senior secured term loan. Share-Based Compensation We issue share-based awards in the form of stock options and certain other equity-based awards for certain employees, officers and directors. We recorded share-based compensation expense of $4.7 million and $3.3 million for the nine months ended September 30, 2016 and 2015 , respectively ( $1.1 million and $1.9 million for the third quarter of 2016 and 2015, respectively). As of September 30, 2016 , estimated unrecognized compensation costs related to share-based awards amounted to $7.3 million , which we expect to recognize over a weighted average remaining requisite service period of approximately 2.23 years . Stock Options Stock option grants are composed of a combination of service-based, market-based and performance-based options. Service-Based Options. These options generally vest over three or four years with equal annual cliff-vesting and expire on the earlier of ten years after the date of grant or following termination of service. A total of 0.9 million service-based awards were outstanding at September 30, 2016 . Market-Based Options . These option grants generally have two components, each of which vests only upon the achievement of certain criteria. The first component, which we refer to internally as “ordinary performance” grants, consists of two-thirds of the market-based grant and begins to vest if the stock price is at least double the exercise price, as long as the stock price realizes a compounded annual gain of at least 20% over the exercise price. The remaining third of the market-based options, which we refer to internally as “extraordinary performance” grants, begins to vest if the stock price is at least triple the exercise price, as long as the stock price realizes a compounded annual gain of at least 25% over the exercise price. Market-based awards vest in three or four year installments with the first installment vesting upon the achievement of the criteria and the remaining installments vesting thereafter in annual installments. Market-based options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service or in the final three years of the option term, in which case vesting will generally continue in accordance with the provisions of the award agreement. A total of 1.1 million market-based awards were outstanding at September 30, 2016 . Performance-Based Options. These option grants begin to vest upon the achievement of certain business unit specific financial measures. Generally, 25% of the awards vest upon the achievement of the performance criteria and the remaining 75% vest thereafter in three equal annual installments. The award of performance-based options is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is below a certain threshold, the award is cancelled. The options expire on the earlier of ten years after the date of grant or following termination of service. A total of 0.1 million performance-based awards were outstanding at September 30, 2016 . The Company granted 0.1 million stock options (at a weighted average exercise price of $29.22 per share) and 0.7 million stock options (at a weighted average exercise price of $23.19 per share) during the nine months ended September 30, 2016 and 2015 , respectively. The fair values of the service-based and performance-based options were determined using the Black-Scholes option pricing model and the fair value of the market-based options was determined using a lattice (binomial) model. The following assumptions were used to determine the fair value as of the grant date: Nine months ended Nine months ended Black-Scholes Binomial Black-Scholes Binomial Risk-free interest rate (%) 1.25 - 1.89 0.23 - 1.97 1.50 - 1.78 0.02 - 2.26 Expected stock price volatility (%) 59.75 - 62.14 59.76 - 62.14 55.06 - 58.58 55.06 - 57.60 Expected dividend yield — — — — Expected option life (in years) 6.00 - 6.25 4.54 - 4.88 6.00 - 6.25 4.10 - 4.88 Fair value $11.15 - $18.60 $11.06 - $19.27 $10.01 - $17.34 $9.91 - $16.13 We determined the expected option life of all service-based stock option grants using the simplified method. We use the simplified method because we believe that our historical data does not provide a reasonable basis upon which to estimate expected option life. The following table summarizes the weighted average grant date fair value of stock options granted per share, the total intrinsic value of stock options exercised and the grant date fair value of stock options that vested during the period presented: Nine months ended September 30, (in thousands, except per share amounts) 2016 2015 Weighted average grant date fair value of stock options granted per share $ 16.85 $ 12.62 Intrinsic value of options exercised 17,280 232 Grant date fair value of stock options that vested 2,372 1,195 The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years ) Aggregate intrinsic value ( in thousands) Outstanding at December 31, 2015 3,163,125 $ 20.13 4.94 $ 35,842 Granted 142,654 29.22 Exercised (1,110,193 ) 9.57 Forfeited (115,539 ) 36.53 Outstanding at September 30, 2016 2,080,047 $ 25.48 5.55 $ 22,595 Exercisable at September 30, 2016 1,274,537 $ 20.17 3.62 $ 18,372 Other Share-Based Awards The Company’s other share-based and similar types of awards are composed of restricted shares and, through August 29, 2016, Equity Appreciation Rights (“EAR”). Effective August 29, 2016, the EAR plans were terminated. The restricted shares are service-based awards that vest over one to four years with either annual cliff-vesting, vesting of all of the restricted shares at the end of the vesting period or vesting beginning after two years of service. The Company granted 13 thousand restricted shares (at a weighted average price of $26.66 per share) during the nine months ended September 30, 2016 . The following table summarizes the activity related to our restricted shares: Number of restricted shares Outstanding at December 31, 2015 272,326 Granted 12,878 Issued (18,774 ) Forfeited (15,400 ) Outstanding at September 30, 2016 251,030 Share-based compensation expense for stock options and restricted shares is recorded net of estimated forfeiture rates ranging from 0% to 40% .

REVENUE REVENUE

REVENUE REVENUE	9 Months Ended
	Sep. 30, 2016
Revenue [Abstract]
REVENUE	REVENUE Revenue includes service revenue, reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services, but we pass such costs directly on to our customers without any additional markup. Non-controlling interests represent the earnings of Lenders One and Wholesale One, consolidated entities not owned by Altisource, and are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1 ). The components of revenue were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Service revenue $ 239,782 $ 245,469 $ 715,386 $ 689,880 Reimbursable expenses 12,080 26,456 41,317 89,242 Non-controlling interests 883 851 1,973 2,457 Total $ 252,745 $ 272,776 $ 758,676 $ 781,579

COST OF REVENUE

COST OF REVENUE	9 Months Ended
	Sep. 30, 2016
Cost of Revenue [Abstract]
COST OF REVENUE	COST OF REVENUE Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service and operations roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Compensation and benefits $ 66,357 $ 62,997 $ 201,193 $ 197,213 Outside fees and services 77,445 66,952 222,574 175,021 Reimbursable expenses 12,080 26,456 41,317 89,242 Technology and telecommunications 11,502 10,630 32,145 32,878 Depreciation and amortization 6,618 6,815 20,007 20,481 Total $ 174,002 $ 173,850 $ 517,236 $ 514,835

SELLING, GENERAL AND ADMINISTRA

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	9 Months Ended
	Sep. 30, 2016
Selling, General and Administrative Expense [Abstract]
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include payroll and employee benefits associated with personnel employed in executive, finance, law, compliance, human resources, vendor management, risk management, sales and marketing roles. This category also includes occupancy costs, professional fees, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Compensation and benefits $ 14,145 $ 13,906 $ 42,460 $ 40,305 Occupancy related costs 8,903 9,808 26,785 30,509 Amortization of intangible assets 11,465 10,118 36,432 27,995 Professional services 4,097 4,008 17,533 18,637 Marketing costs 9,275 7,325 21,438 18,598 Depreciation and amortization 2,557 2,390 7,514 7,156 Other 3,444 3,783 9,547 12,110 Total $ 53,886 $ 51,338 $ 161,709 $ 155,310

LOSS ON HLSS EQUITY SECURITIES

LOSS ON HLSS EQUITY SECURITIES AND DIVIDENDS RECEIVED	9 Months Ended
	Sep. 30, 2016
Other than Temporary Impairment Loss on Securities [Abstract]
LOSS ON HLSS EQUITY SECURITIES AND DIVIDENDS RECEIVED	LOSS ON HLSS EQUITY SECURITIES AND DIVIDENDS RECEIVED During March 2015, we purchased 1.6 million shares of HLSS common stock in the open market for $30.0 million . This investment was classified as available for sale. On April 6, 2015, HLSS completed the sale of substantially all of its assets to New Residential Investment Corp. (“ NRZ ”) and adopted a plan of complete liquidation and dissolution. During April 2015, we received liquidating dividends and other dividends from HLSS totaling $20.4 million and we sold all of our 1.6 million shares of HLSS common stock in the open market for $7.7 million . As a result of these transactions, we recognized a net loss of $1.9 million for the nine months ended September 30, 2015 ( no comparative amounts in 2016 ) in connection with our investment in HLSS.

OTHER INCOME (EXPENSE), NET

OTHER INCOME (EXPENSE), NET	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
OTHER INCOME (EXPENSE), NET	OTHER INCOME (EXPENSE), NET Other income (expense), net consists of the following: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Gain on early extinguishment of debt $ — $ 872 $ 5,464 $ 1,986 Expenses related to the purchase of available for sale securities — — (3,356 ) — Interest income 11 39 28 101 Other, net (120 ) (258 ) 472 (610 ) Total $ (109 ) $ 653 $ 2,608 $ 1,477

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities using the treasury stock method. Basic and diluted EPS are calculated as follows: Three months ended Nine months ended (in thousands, except per share data) 2016 2015 2016 2015 Net income attributable to Altisource $ 10,589 $ 37,046 $ 49,077 $ 86,694 Weighted average common shares outstanding, basic 18,715 19,091 18,669 19,608 Dilutive effect of stock options and restricted shares 853 1,320 1,069 1,080 Weighted average common shares outstanding, diluted 19,568 20,411 19,738 20,688 Earnings per share: Basic $ 0.57 $ 1.94 $ 2.63 $ 4.42 Diluted $ 0.54 $ 1.82 $ 2.49 $ 4.19 For the nine months ended September 30, 2016 and 2015 , 0.4 million options and 0.6 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS ( 0.4 million options and 0.4 million options for the third quarter of 2016 and 2015 , respectively). These options were anti-dilutive and excluded from the computation of diluted EPS because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS are 0.4 million options and 0.3 million options for the nine months ended September 30, 2016 and 2015 , respectively ( 0.4 million and 0.3 million options for the third quarter of 2016 and 2015 , respectively), granted for shares that begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met.

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS	COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS Litigation From time to time, we are involved in legal and administrative proceedings arising in the course of our business. We record a liability for these matters if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range. On September 8, 2014, the West Palm Beach Firefighters’ Pension Fund filed a putative securities class action suit against Altisource Portfolio Solutions S.A. and certain of its current or former officers and directors in the United States District Court for the Southern District of Florida alleging violations of the Securities Exchange Act of 1934 and Rule 10b-5 with regard to disclosures concerning pricing and transactions with related parties that allegedly inflated Altisource Portfolio Solutions S.A. share prices. The Court subsequently appointed the Pension Fund for the International Union of Painters and Allied Trades District Council 35 and the Annuity Fund for the International Union of Painters and Allied Trades District Council 35 as Lead Plaintiffs. On January 30, 2015, Lead Plaintiffs filed an amended class action complaint which added Ocwen Financial Corporation as a defendant, and seeks a determination that the action may be maintained as a class action on behalf of purchasers of Altisource Portfolio Solutions S.A. securities between April 25, 2013 and December 21, 2014 and an unspecified amount of damages. Altisource Portfolio Solutions S.A. moved to dismiss the suit on March 23, 2015. On September 4, 2015, the Court granted the defendants’ motion to dismiss, finding that the Lead Plaintiffs’ amended complaint failed to state a claim as to any of the defendants, but permitting the Lead Plaintiffs to file another amended complaint. Lead Plaintiffs subsequently filed second and third amended complaints with substantially similar claims and theories. Altisource Portfolio Solutions S.A. moved to dismiss the third amended complaint on October 22, 2015. On December 22, 2015, the Court issued an order dismissing with prejudice all claims against Ocwen Financial Corporation and certain claims against Altisource Portfolio Solutions S.A. and the officer and director defendants, but denying the motion to dismiss as to other claims. Altisource Portfolio Solutions S.A. intends to continue to vigorously defend this suit. On February 11, 2015, W.A. Sokolowski, an alleged shareholder of Ocwen Financial Corporation, filed an amended shareholder derivative complaint in the United States District Court for the Southern District of Florida against Ocwen Financial Corporation (as a nominal defendant), certain of its current or former officers and directors, Altisource Portfolio Solutions S.A. and other companies. The suit seeks recovery of an unspecified amount of damages for alleged breaches of fiduciary duty by Ocwen Financial Corporation’s officers and directors, which were allegedly aided and abetted by Altisource Portfolio Solutions S.A. and other defendants. Altisource Portfolio Solutions S.A. filed a motion to dismiss the complaint on November 9, 2015. While that motion was pending, additional lawsuits alleging similar claims for alleged breaches of fiduciary duties by current or former Ocwen Financial Corporation officers and directors were filed in or transferred to the Court. The Court subsequently consolidated these actions and denied Altisource Portfolio Solutions S.A.’s motion to dismiss the Sokolowski complaint without prejudice to re-file following appointment of lead counsel for the consolidated action and the filing or designation of an operative complaint. Lead counsel for plaintiffs filed their Consolidated Verified Shareholder Derivative Complaint (the “Consolidated Complaint”) on March 8, 2016. The Consolidated Complaint alleges claims that Altisource Portfolio Solutions S.A., its subsidiary Beltline Road Insurance Agency, Inc. and other defendants aided and abetted alleged breaches of fiduciary duties by Ocwen Financial Corporation officers and directors and/or were unjustly enriched in connection with business dealings with Ocwen Financial Corporation. The Consolidated Complaint also seeks contribution from Altisource Portfolio Solutions S.A., its subsidiary Beltline Road Insurance Agency, Inc. and other defendants for amounts Ocwen Financial Corporation paid in connection with a settlement with the New York State Department of Financial Services. Altisource Portfolio Solutions S.A. and Beltline Road Insurance Agency, Inc. filed motions to dismiss the Consolidated Complaint on May 13, 2016 and intend to vigorously defend the lawsuit. The Court disclosed that the parties reached a settlement in a settlement conference on October 13, 2016. The Court docket provides that a Stipulation of Settlement is due on or before November 18, 2016, and a Final Approval Hearing will be held before the Court on January 18, 2017. On March 26, 2015, Robert Moncavage, an alleged shareholder of Ocwen Financial Corporation, filed an amended shareholder derivative complaint in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida against Ocwen Financial Corporation (as a nominal defendant), certain of its current or former officers and directors, Altisource Portfolio Solutions S.A. and other companies. The suit seeks recovery of an unspecified amount of damages for alleged breaches of fiduciary duties by the current or former Ocwen Financial Corporation officers and directors, which were allegedly aided and abetted by Altisource Portfolio Solutions S.A. and other defendants. On November 9, 2015, the Court entered an order staying all proceedings in the case pending further order of the Court. If the litigation proceeds, Altisource Portfolio Solutions S.A. intends to vigorously defend the lawsuit and to move to dismiss all claims against it. Altisource is unable to predict the outcomes of these lawsuits or reasonably estimate the potential loss, if any, arising from the suits, given that the motion to dismiss in the second case has not been adjudicated, a stay has been entered in the third case and significant legal and factual issues remain to be determined in all three cases. In addition to the matters referenced above, we are involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows. Regulatory Matters Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries. Ocwen Related Matters Ocwen is our largest customer and 56% of our revenue for the nine months ended September 30, 2016 ( 56% of revenue for the third quarter of 2016 ) was from Ocwen. Additionally, 19% of our revenue for the nine months ended September 30, 2016 ( 19% of revenue for the third quarter of 2016 ) was earned on the portfolios serviced by Ocwen, when a party other than Ocwen selected Altisource as the service provider. Ocwen has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, requests for information and other actions and is subject to pending legal proceedings that have or could result in adverse regulatory or other actions against Ocwen. While not all inclusive, regulatory actions to date have included subjecting Ocwen to independent oversight of its operations and placing certain restrictions on its ability to acquire servicing rights. Ocwen may become subject to future federal and state regulatory investigations, inquiries, requests for information and legal proceedings, any of which could also result in adverse regulatory or other actions against Ocwen. As a result of the sale of substantially all of the assets of HLSS to NRZ in April of 2015, NRZ owned the rights to approximately 78% of Ocwen’s non-government-sponsored enterprise (“non-GSE”) servicing rights as of June 30, 2016. Under an agreement between NRZ and Ocwen, NRZ has the right (not necessarily the obligation or ability) to transfer servicing away from Ocwen if Ocwen does not maintain certain minimum servicer ratings on or after April 6, 2017. Any or all of the foregoing may have significant adverse effects on Ocwen’s business and our continuing relationships with Ocwen. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services (including information technology and software services), it may be required to seek changes to its existing pricing structure with us, it may lose or sell some or all of its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or volume of services they purchase from us or the loss of other customers. If any of the following events occurred, Altisource’s revenue would be significantly lower and our results of operations would be materially adversely affected, including from the possible impairment or write-off of goodwill, intangible assets, property and equipment, other assets and accounts receivable: • Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us • Ocwen loses or sells a significant portion or all of its non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider • Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio • Altisource fails to be retained as a service provider • The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue Management cannot predict the outcome of the above Ocwen related matters or the impact they may have on Altisource. However, in the event these Ocwen related matters materially negatively impact Altisource, we believe the impact to Altisource would occur over an extended period of time and the variable nature of our cost structure would allow us to realign our cost structure in line with remaining revenue. In this regard, we have a plan that we believe would allow us to efficiently execute on this realignment. We believe that transfers of Ocwen’s servicing rights to a successor servicer(s) would take an extended period of time because of the approval required from many parties, including regulators, rating agencies, RMBS trustees, lenders and others. During this period of time, we believe we would continue to generate revenue from the services we provide to the transferred portfolio. Additionally, we have several strategic initiatives that focus on diversifying and growing our revenue and customer base. Our major strategic initiatives include growing our: • Servicer Solutions business • Origination Solutions business • Consumer Real Estate Solutions business • Real Estate Investor Solutions business We have an established sales and marketing strategy to support each of these initiatives. Management believes our plans, together with current liquidity and cash flows from operations will be sufficient to meet working capital, capital expenditures, debt service and other cash needs. However, there can be no assurance that our plans will be successful or our operations will be profitable. Escrow and Trust Balances We hold customers’ assets in escrow and trust accounts at various financial institutions pending completion of certain real estate activities. We also hold cash in trust accounts at various financial institutions where contractual obligations mandate maintaining dedicated bank accounts for our Financial Services segment’s collections. These amounts are held in escrow and trust accounts for limited periods of time and are not included in the condensed consolidated balance sheets. Amounts held in escrow and trust accounts were $65.6 million and $66.6 million at September 30, 2016 and December 31, 2015 , respectively.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our Chief Operating Decision Maker) to evaluate operating performance and to assess the allocation of our resources. We classify our businesses into three reportable segments. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies that span the mortgage and real estate lifecycle. The Financial Services segment provides collection and customer relationship management services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and the utility, insurance and hotel industries. The Technology Services segment provides software and data analytics solutions that support the management of mortgage and real estate activities and marketplace transactions across the mortgage and real estate lifecycles and information technology infrastructure management services. In addition, Corporate Items and Eliminations include eliminations of transactions between the reportable segments, interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, risk management and sales and marketing costs not allocated to the business units. Intercompany transactions primarily consist of information technology infrastructure management services. Financial information for our segments is as follows: Three months ended September 30, 2016 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 204,696 $ 17,599 $ 41,544 $ (11,094 ) $ 252,745 Cost of revenue 132,399 13,238 38,557 (10,192 ) 174,002 Gross profit (loss) 72,297 4,361 2,987 (902 ) 78,743 Selling, general and administrative expenses 27,543 4,002 6,115 16,226 53,886 Income (loss) from operations 44,754 359 (3,128 ) (17,128 ) 24,857 Total other income (expense), net 8 28 1 (6,098 ) (6,061 ) Income (loss) before income taxes and non-controlling interests $ 44,762 $ 387 $ (3,127 ) $ (23,226 ) $ 18,796 Three months ended September 30, 2015 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 209,506 $ 21,337 $ 51,437 $ (9,504 ) $ 272,776 Cost of revenue 122,724 15,418 44,419 (8,711 ) 173,850 Gross profit (loss) 86,782 5,919 7,018 (793 ) 98,926 Selling, general and administrative expenses 23,399 4,553 7,628 15,758 51,338 Income (loss) from operations 63,383 1,366 (610 ) (16,551 ) 47,588 Total other income (expense), net 9 31 38 (6,466 ) (6,388 ) Income (loss) before income taxes and non-controlling interests $ 63,392 $ 1,397 $ (572 ) $ (23,017 ) $ 41,200 Nine months ended September 30, 2016 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 612,243 $ 57,461 $ 120,291 $ (31,319 ) $ 758,676 Cost of revenue 381,543 41,645 122,874 (28,826 ) 517,236 Gross profit (loss) 230,700 15,816 (2,583 ) (2,493 ) 241,440 Selling, general and administrative expenses 83,119 12,515 20,113 45,962 161,709 Income (loss) from operations 147,581 3,301 (22,696 ) (48,455 ) 79,731 Total other income (expense), net 57 63 101 (16,094 ) (15,873 ) Income (loss) before income taxes and non-controlling interests $ 147,638 $ 3,364 $ (22,595 ) $ (64,549 ) $ 63,858 Nine months ended September 30, 2015 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 583,873 $ 67,080 $ 159,399 $ (28,773 ) $ 781,579 Cost of revenue 350,238 46,058 144,565 (26,026 ) 514,835 Gross profit (loss) 233,635 21,022 14,834 (2,747 ) 266,744 Selling, general and administrative expenses 69,188 13,856 22,189 50,077 155,310 Change in the fair value of Equator Earn Out — — (7,591 ) — (7,591 ) Income (loss) from operations 164,447 7,166 236 (52,824 ) 119,025 Total other income (expense), net 28 21 21 (21,843 ) (21,773 ) Income (loss) before income taxes and non-controlling interests $ 164,475 $ 7,187 $ 257 $ (74,667 ) $ 97,252 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Total assets: September 30, 2016 $ 315,384 $ 44,652 $ 141,846 $ 191,450 $ 693,332 December 31, 2015 325,461 53,757 151,969 190,611 721,798 Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country: (in thousands) September 30, December 31, United States $ 76,683 $ 85,021 India 15,705 21,187 Luxembourg 14,372 9,944 Philippines 2,776 2,664 Uruguay 249 305 Total $ 109,785 $ 119,121

ORGANIZATION AND BASIS OF PRE31

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting and Presentation	Basis of Accounting and Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation. Altisource consolidates two cooperative entities which are managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource: Best Partners Mortgage Cooperative, Inc., a mortgage cooperative doing business as Lenders One ® (“Lenders One”) and Best Partners Mortgage Brokers Cooperative, Inc., a mortgage cooperative doing business as Wholesale One ® (“Wholesale One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option) and to Wholesale One under a management agreement that ends on July 8, 2039 (with automatic renewals for three successive five-year periods). The management agreements between MPA and Lenders One and between MPA and Wholesale One, pursuant to which MPA is the management company, represent variable interests in variable interest entities. MPA is the primary beneficiary of Lenders One and Wholesale One as it has the power to direct the activities that most significantly impact each of these cooperatives’ economic performance and the right to receive benefits from each of these cooperatives. As a result, Lenders One and Wholesale One are presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of September 30, 2016 , Lenders One had total assets of $4.0 million and total liabilities of $1.9 million . As of December 31, 2015 , Lenders One had total assets of $4.9 million and total liabilities of $3.7 million . As of September 30, 2016 and December 31, 2015 , Wholesale One had less than $0.1 million in total assets and less than $0.1 million in total liabilities. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , as filed with the SEC on March 15, 2016.
Fair Value Measurements	Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement On January 1, 2016, Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, became effective. As a result of this accounting change, the Company now presents debt issuance costs, net as a direct deduction from the related debt (see Note 12 ). Prior to January 1, 2016, debt issuance costs, net were included in other assets. We adopted the standard retrospectively. Accordingly, prior period amounts were reclassified to conform to the current presentation.
Future Adoption of New Accounting Pronouncements	Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This standard establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of this standard is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This standard will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. It also amends certain financial statement presentation and disclosure requirements associated with the fair value of financial instruments. This standard will be effective for annual periods beginning after December 31, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This standard introduces a new lessee model that brings substantially all leases on the balance sheet. The standard will require companies to recognize lease assets and lease liabilities on their balance sheets and disclose key information about leasing arrangements in their financial statements. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This standard clarifies guidance on principal versus agent considerations in connection with revenue recognition. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard will require companies to recognize all award-related excess tax benefits and tax deficiencies in their income statements, classify any excess tax benefits as an operating activity in their statements of cash flows, provide companies with the option of estimating forfeitures or recognizing forfeitures as they occur, modify the statutory tax withholding requirements and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in their statements of cash flows. This standard will be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . This standard provides guidance on identifying performance obligations in a contract with a customer and clarifying several licensing considerations, including whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time) and guidance on sales-based and usage-based royalties. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . This standard addresses collectability, sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition and completed contracts at transition. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard will require that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position.

CUSTOMER CONCENTRATION (Tables)

CUSTOMER CONCENTRATION (Tables)	9 Months Ended
	Sep. 30, 2016
Ocwen
Concentration Risk
Schedule of related party revenue as a percentage of segment and consolidated revenue	Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Mortgage Services 59 % 64 % 59 % 63 % Financial Services 16 % 16 % 17 % 20 % Technology Services 41 % 51 % 41 % 52 % Consolidated revenue 56 % 60 % 56 % 59 %

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2016
Granite
Acquisitions
Summary of allocation of purchase price	The preliminary allocation of the purchase price is as follows: (in thousands) Accounts receivable, net $ 1,103 Prepaid expenses 25 Other assets 25 Premises and equipment, net 299 Goodwill 8,449 9,901 Accounts payable and accrued expenses (111 ) Other current liabilities (173 ) Purchase price $ 9,617
RentRange, Investability and Onit Solutions
Acquisitions
Summary of allocation of purchase price	The initial and final allocation of the purchase price is as follows: (in thousands) Initial purchase price allocation Adjustments Final purchase price allocation Cash $ 3 $ — $ 3 Accounts receivable, net 245 (76 ) 169 Premises and equipment, net 2,471 (1,067 ) 1,404 Other assets 199 (196 ) 3 Trademarks and trade names 1,205 — 1,205 Databases/other 910 1,035 1,945 Non-compete agreements 330 — 330 Customer relationships 255 — 255 Goodwill 19,565 50 19,615 25,183 (254 ) 24,929 Accounts payable and accrued expenses (391 ) 46 (345 ) Purchase price $ 24,792 $ (208 ) $ 24,584
CastleLine
Acquisitions
Summary of allocation of purchase price	The initial and final allocation of the purchase price is as follows: (in thousands) Initial purchase price allocation Adjustments Final purchase price allocation Cash $ 1,088 $ — $ 1,088 Accounts receivable, net 510 (410 ) 100 Prepaid expenses 66 (46 ) 20 Restricted cash 2,501 — 2,501 Non-compete agreements 1,105 25 1,130 Databases/other 465 1,335 1,800 Customer relationships 395 — 395 Trademarks and trade names 150 10 160 Deferred taxes — 356 356 Goodwill 28,125 (1,395 ) 26,730 34,405 (125 ) 34,280 Accounts payable and accrued expenses (875 ) 38 (837 ) Deferred revenue (87 ) 87 — Purchase price $ 33,443 $ — $ 33,443

ACCOUNTS RECEIVABLE, NET (Table

ACCOUNTS RECEIVABLE, NET (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Schedule of accounts receivable, net	Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 63,066 $ 67,021 Unbilled 48,288 56,458 111,354 123,479 Less: allowance for doubtful accounts (9,774 ) (18,456 ) Total $ 101,580 $ 105,023

PREPAID EXPENSES AND OTHER CU35

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, Maintenance agreements, current portion $ 7,213 $ 7,000 Short-term investments in real estate 8,695 — Income taxes receivable 3,132 633 Prepaid expenses 6,166 7,873 Other current assets 6,721 6,245 Total $ 31,927 $ 21,751

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment, net	Premises and equipment, net consists of the following: (in thousands) September 30, December 31, Computer hardware and software $ 163,140 $ 177,010 Office equipment and other 19,586 21,720 Furniture and fixtures 13,792 14,443 Leasehold improvements 35,726 35,503 232,244 248,676 Less: accumulated depreciation and amortization (122,459 ) (129,555 ) Total $ 109,785 $ 119,121

GOODWILL AND INTANGIBLE ASSET37

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of changes in goodwill	The following is a summary of goodwill by segment: (in thousands) Mortgage Services Financial Services Total Balance as of December 31, 2015 $ 80,423 $ 2,378 $ 82,801 Acquisition of CastleLine (1) (1,395 ) — (1,395 ) Acquisitions of RentRange and Investability (2) 50 — 50 Acquisition of Granite 8,449 — 8,449 Balance as of September 30, 2016 $ 87,527 $ 2,378 $ 89,905 (1) During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See Note 4 . (2) During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See Note 4 .
Schedule of intangible assets, net	Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) September 30, December 31, September 30, December 31, September 30, December 31, Definite lived intangible assets: Trademarks and trade names 13 $ 15,254 $ 15,244 $ (7,419 ) $ (6,491 ) $ 7,835 $ 8,753 Customer related intangible assets 10 274,428 274,428 (146,890 ) (113,725 ) 127,538 160,703 Operating agreement 20 35,000 35,000 (11,667 ) (10,354 ) 23,333 24,646 Non-compete agreements 4 1,460 1,435 (405 ) (115 ) 1,055 1,320 Intellectual property 10 300 300 (78 ) (55 ) 222 245 Other intangible assets 5 3,745 1,375 (752 ) (39 ) 2,993 1,336 Total $ 330,187 $ 327,782 $ (167,211 ) $ (130,779 ) $ 162,976 $ 197,003

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other assets	Other assets consist of the following: (in thousands) September 30, December 31, Security deposits $ 5,599 $ 5,341 Maintenance agreements, non-current portion 1,177 1,570 Restricted cash 4,505 4,801 Other 909 1,441 Total $ 12,190 $ 13,153

ACCOUNTS PAYABLE, ACCRUED EXP39

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued expenses	Accounts payable and accrued expenses consist of the following: (in thousands) September 30, December 31, Accounts payable $ 16,940 $ 11,644 Accrued expenses - general 34,148 30,347 Accrued salaries and benefits 46,417 46,564 Income taxes payable 3,856 3,316 Total $ 101,361 $ 91,871
Schedule of other current liabilities	Other current liabilities consist of the following: (in thousands) September 30, December 31, Unfunded cash account balances $ 2,995 $ 6,395 Other 10,851 9,871 Total $ 13,846 $ 16,266

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following: (in thousands) September 30, December 31, Senior secured term loan $ 481,140 $ 536,598 Less: debt issuance costs, net (4,778 ) (6,184 ) Less: unamortized discount, net (1,728 ) (2,236 ) Net long-term debt 474,634 528,178 Less: current portion (5,945 ) (5,945 ) Long-term debt, less current portion $ 468,689 $ 522,233

OTHER NON-CURRENT LIABILITIES (

OTHER NON-CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
Schedule of other non current liabilities	Other non-current liabilities consist of the following: (in thousands) September 30, December 31, Acquisition related obligations $ 3,191 $ 8,422 Other non-current liabilities 10,599 9,731 Total $ 13,790 $ 18,153

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP are as follows: September 30, 2016 December 31, 2015 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 134,948 $ 134,948 $ — $ — $ 179,327 $ 179,327 $ — $ — Restricted cash 4,505 4,505 — — 4,801 4,801 — — Available for sale securities 45,174 45,174 — — — — — — Liabilities: Acquisition contingent consideration 2,757 — — 2,757 3,932 — — 3,932 Long-term debt 481,140 — 452,272 — 536,598 — 469,523 —

SHAREHOLDERS_ EQUITY AND SHAR43

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of assumptions used to determine the fair value of options as of the grant date	The following assumptions were used to determine the fair value as of the grant date: Nine months ended Nine months ended Black-Scholes Binomial Black-Scholes Binomial Risk-free interest rate (%) 1.25 - 1.89 0.23 - 1.97 1.50 - 1.78 0.02 - 2.26 Expected stock price volatility (%) 59.75 - 62.14 59.76 - 62.14 55.06 - 58.58 55.06 - 57.60 Expected dividend yield — — — — Expected option life (in years) 6.00 - 6.25 4.54 - 4.88 6.00 - 6.25 4.10 - 4.88 Fair value $11.15 - $18.60 $11.06 - $19.27 $10.01 - $17.34 $9.91 - $16.13
Summary of the weighted average fair value of stock options granted, the total intrinsic value of stock options exercised and the fair value of options vested	The following table summarizes the weighted average grant date fair value of stock options granted per share, the total intrinsic value of stock options exercised and the grant date fair value of stock options that vested during the period presented: Nine months ended September 30, (in thousands, except per share amounts) 2016 2015 Weighted average grant date fair value of stock options granted per share $ 16.85 $ 12.62 Intrinsic value of options exercised 17,280 232 Grant date fair value of stock options that vested 2,372 1,195
Summary of the activity of the entity's stock options	The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years ) Aggregate intrinsic value ( in thousands) Outstanding at December 31, 2015 3,163,125 $ 20.13 4.94 $ 35,842 Granted 142,654 29.22 Exercised (1,110,193 ) 9.57 Forfeited (115,539 ) 36.53 Outstanding at September 30, 2016 2,080,047 $ 25.48 5.55 $ 22,595 Exercisable at September 30, 2016 1,274,537 $ 20.17 3.62 $ 18,372
Schedule of share-based compensation, restricted stock and restricted stock units activity	The following table summarizes the activity related to our restricted shares: Number of restricted shares Outstanding at December 31, 2015 272,326 Granted 12,878 Issued (18,774 ) Forfeited (15,400 ) Outstanding at September 30, 2016 251,030

REVENUE REVENUE (Tables)

REVENUE REVENUE (Tables)	9 Months Ended
	Sep. 30, 2016
Revenue [Abstract]
Schedule of revenue	The components of revenue were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Service revenue $ 239,782 $ 245,469 $ 715,386 $ 689,880 Reimbursable expenses 12,080 26,456 41,317 89,242 Non-controlling interests 883 851 1,973 2,457 Total $ 252,745 $ 272,776 $ 758,676 $ 781,579

COST OF REVENUE (Tables)

COST OF REVENUE (Tables)	9 Months Ended
	Sep. 30, 2016
Cost of Revenue [Abstract]
Schedule of components of cost of revenue	The components of cost of revenue were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Compensation and benefits $ 66,357 $ 62,997 $ 201,193 $ 197,213 Outside fees and services 77,445 66,952 222,574 175,021 Reimbursable expenses 12,080 26,456 41,317 89,242 Technology and telecommunications 11,502 10,630 32,145 32,878 Depreciation and amortization 6,618 6,815 20,007 20,481 Total $ 174,002 $ 173,850 $ 517,236 $ 514,835

SELLING, GENERAL AND ADMINIST46

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2016
Selling, General and Administrative Expense [Abstract]
Schedule of the components of selling, general and administrative expenses	The components of selling, general and administrative expenses were as follows: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Compensation and benefits $ 14,145 $ 13,906 $ 42,460 $ 40,305 Occupancy related costs 8,903 9,808 26,785 30,509 Amortization of intangible assets 11,465 10,118 36,432 27,995 Professional services 4,097 4,008 17,533 18,637 Marketing costs 9,275 7,325 21,438 18,598 Depreciation and amortization 2,557 2,390 7,514 7,156 Other 3,444 3,783 9,547 12,110 Total $ 53,886 $ 51,338 $ 161,709 $ 155,310

OTHER INCOME (EXPENSE), NET (Ta

OTHER INCOME (EXPENSE), NET (Tables)	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
Schedule of other income (expense), net	Other income (expense), net consists of the following: Three months ended Nine months ended (in thousands) 2016 2015 2016 2015 Gain on early extinguishment of debt $ — $ 872 $ 5,464 $ 1,986 Expenses related to the purchase of available for sale securities — — (3,356 ) — Interest income 11 39 28 101 Other, net (120 ) (258 ) 472 (610 ) Total $ (109 ) $ 653 $ 2,608 $ 1,477

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of basic and diluted EPS calculation	Basic and diluted EPS are calculated as follows: Three months ended Nine months ended (in thousands, except per share data) 2016 2015 2016 2015 Net income attributable to Altisource $ 10,589 $ 37,046 $ 49,077 $ 86,694 Weighted average common shares outstanding, basic 18,715 19,091 18,669 19,608 Dilutive effect of stock options and restricted shares 853 1,320 1,069 1,080 Weighted average common shares outstanding, diluted 19,568 20,411 19,738 20,688 Earnings per share: Basic $ 0.57 $ 1.94 $ 2.63 $ 4.42 Diluted $ 0.54 $ 1.82 $ 2.49 $ 4.19

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of financial information of segments	Financial information for our segments is as follows: Three months ended September 30, 2016 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 204,696 $ 17,599 $ 41,544 $ (11,094 ) $ 252,745 Cost of revenue 132,399 13,238 38,557 (10,192 ) 174,002 Gross profit (loss) 72,297 4,361 2,987 (902 ) 78,743 Selling, general and administrative expenses 27,543 4,002 6,115 16,226 53,886 Income (loss) from operations 44,754 359 (3,128 ) (17,128 ) 24,857 Total other income (expense), net 8 28 1 (6,098 ) (6,061 ) Income (loss) before income taxes and non-controlling interests $ 44,762 $ 387 $ (3,127 ) $ (23,226 ) $ 18,796 Three months ended September 30, 2015 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 209,506 $ 21,337 $ 51,437 $ (9,504 ) $ 272,776 Cost of revenue 122,724 15,418 44,419 (8,711 ) 173,850 Gross profit (loss) 86,782 5,919 7,018 (793 ) 98,926 Selling, general and administrative expenses 23,399 4,553 7,628 15,758 51,338 Income (loss) from operations 63,383 1,366 (610 ) (16,551 ) 47,588 Total other income (expense), net 9 31 38 (6,466 ) (6,388 ) Income (loss) before income taxes and non-controlling interests $ 63,392 $ 1,397 $ (572 ) $ (23,017 ) $ 41,200 Nine months ended September 30, 2016 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 612,243 $ 57,461 $ 120,291 $ (31,319 ) $ 758,676 Cost of revenue 381,543 41,645 122,874 (28,826 ) 517,236 Gross profit (loss) 230,700 15,816 (2,583 ) (2,493 ) 241,440 Selling, general and administrative expenses 83,119 12,515 20,113 45,962 161,709 Income (loss) from operations 147,581 3,301 (22,696 ) (48,455 ) 79,731 Total other income (expense), net 57 63 101 (16,094 ) (15,873 ) Income (loss) before income taxes and non-controlling interests $ 147,638 $ 3,364 $ (22,595 ) $ (64,549 ) $ 63,858 Nine months ended September 30, 2015 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Revenue $ 583,873 $ 67,080 $ 159,399 $ (28,773 ) $ 781,579 Cost of revenue 350,238 46,058 144,565 (26,026 ) 514,835 Gross profit (loss) 233,635 21,022 14,834 (2,747 ) 266,744 Selling, general and administrative expenses 69,188 13,856 22,189 50,077 155,310 Change in the fair value of Equator Earn Out — — (7,591 ) — (7,591 ) Income (loss) from operations 164,447 7,166 236 (52,824 ) 119,025 Total other income (expense), net 28 21 21 (21,843 ) (21,773 ) Income (loss) before income taxes and non-controlling interests $ 164,475 $ 7,187 $ 257 $ (74,667 ) $ 97,252 (in thousands) Mortgage Services Financial Services Technology Services Corporate Items and Eliminations Consolidated Altisource Total assets: September 30, 2016 $ 315,384 $ 44,652 $ 141,846 $ 191,450 $ 693,332 December 31, 2015 325,461 53,757 151,969 190,611 721,798
Schedule of premises and equipment, net by country	Premises and equipment, net consist of the following, by country: (in thousands) September 30, December 31, United States $ 76,683 $ 85,021 India 15,705 21,187 Luxembourg 14,372 9,944 Philippines 2,776 2,664 Uruguay 249 305 Total $ 109,785 $ 119,121

ORGANIZATION AND BASIS OF PRE50

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)segment	Dec. 31, 2015USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reporting segments | segment	3
Lenders One [Member]
Summary of significant accounting policies
Total assets	$ 4	$ 4.9
Total liabilities	1.9	3.7
Wholesale One [Member]
Summary of significant accounting policies
Total assets	0.1	0.1
Total liabilities	$ 0.1	$ 0.1

CUSTOMER CONCENTRATION (Details

CUSTOMER CONCENTRATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Concentration Risk
Other portfolio servicing revenue	$ 48	$ 56.7	$ 146	$ 164.7
Ocwen
Concentration Risk
Fair value, accounts receivable	$ 32.6		$ 32.6		$ 38.2
Ocwen | Revenue from Rights Concentration Risk | Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	56.00%	60.00%	56.00%	59.00%
Billed Revenues | Ocwen
Concentration Risk
Fair value, accounts receivable	$ 21.8		$ 21.8		20.4
Unbilled Revenues | Ocwen
Concentration Risk
Fair value, accounts receivable	$ 10.8		$ 10.8		$ 17.8
Mortgage Services | Ocwen | Revenue from Rights Concentration Risk | Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	59.00%	64.00%	59.00%	63.00%
Financial Services | Ocwen | Revenue from Rights Concentration Risk | Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	16.00%	16.00%	17.00%	20.00%
Revenue from largest customer	$ 141.6	$ 163.8	$ 422.2	$ 464.8
Technology Services | Ocwen | Revenue from Rights Concentration Risk | Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	41.00%	51.00%	41.00%	52.00%

TRANSACTIONS WITH RELATED PAR52

TRANSACTIONS WITH RELATED PARTIES (Details) $ in Millions	1 Months Ended
	Jan. 16, 2015USD ($)
Ocwen
Related Party Transaction [Line Items]
Related party, revenue earned	$ 22.9
Ocwen | Data Access and Services Agreement
Related Party Transaction [Line Items]
Related party, cost of revenue	1.9
Ocwen | Support Services Agreement
Related Party Transaction [Line Items]
Related party, selling, general and administrative expenses billed to related party	0.1
Related party, selling, general and administrative expenses billed by related party	0.3
Residential | Management, Support and Other Services Agreements
Related Party Transaction [Line Items]
Related party, revenue earned	$ 1

ACQUISITIONS ACQUISITIONS - Gra

ACQUISITIONS ACQUISITIONS - Granite (Details) - USD ($) $ in Thousands	Jul. 29, 2016	Sep. 30, 2016	Dec. 31, 2015
Acquisitions
Goodwill		$ 89,905	$ 82,801
Granite
Acquisitions
Business combination, consideration transferred	$ 9,600
Accounts receivable, net	1,103
Prepaid expenses	25
Other assets	25
Premises and equipment, net	299
Goodwill	8,449
Total assets	9,901
Accounts payable and accrued expenses	(111)
Other current liabilities	(173)
Purchase price	$ 9,617

ACQUISITIONS - RentRange, Inves

ACQUISITIONS - RentRange, Investability and Onit Solutions (Details) - USD ($) shares in Thousands, $ in Thousands	Oct. 09, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Acquisitions
Acquisition of businesses with restricted shares		$ 0	$ 14,427
Goodwill		89,905		$ 82,801
RentRange, Investability and Onit Solutions
Acquisitions
Business combination, consideration transferred	$ 24,800
Cash payment to acquire business	$ 17,500
Number of shares exchanged for acquisition (in thousands)	247
Acquisition of businesses with restricted shares	$ 7,300
Contingent consideration arrangements, payment period	4 years
Cash		3
Accounts receivable, net		169
Premises and equipment, net		1,404
Other assets		3
Trademarks and trade names		1,205
Databases/other		1,945
Non-compete agreements		330
Customer relationships		255
Goodwill		19,615
Total assets		24,929
Accounts payable and accrued expenses		(345)
Purchase price		24,584
Initial purchase price allocation | RentRange, Investability and Onit Solutions
Acquisitions
Cash	$ 3
Accounts receivable, net	245
Premises and equipment, net	2,471
Other assets	199
Trademarks and trade names	1,205
Databases/other	910
Non-compete agreements	330
Customer relationships	255
Goodwill	19,565
Total assets	25,183
Accounts payable and accrued expenses	(391)
Purchase price	$ 24,792
Adjustments | RentRange, Investability and Onit Solutions
Acquisitions
Cash		0
Accounts receivable, net		(76)
Premises and equipment, net		(1,067)
Other assets		(196)
Trademarks and trade names		0
Databases/other		1,035
Non-compete agreements		0
Customer relationships		0
Goodwill		50
Total assets		(254)
Accounts payable and accrued expenses		46
Purchase price		$ (208)

ACQUISITIONS - CastleLine (Deta

ACQUISITIONS - CastleLine (Details) - USD ($) shares in Thousands, $ in Thousands	Jul. 17, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Acquisitions
Acquisition of businesses with restricted shares		$ 0	$ 14,427
Goodwill		$ 89,905			$ 82,801
CastleLine
Acquisitions
Cash paid at acquisition	$ 12,300
Accounts payable	$ 10,500
Contingent consideration arrangements, payment period	4 years
Number of shares exchanged for acquisition (in thousands)	495
Acquisition of businesses with restricted shares	$ 14,400
Contingent consideration arrangements, range of outcomes, value, high	3,800
Cash				$ 1,088
Accounts receivable, net				100
Prepaid expenses				20
Restricted cash				2,501
Non-compete agreements				1,130
Databases/other				1,800
Customer relationships				395
Trademarks and trade names				160
Deferred taxes				356
Goodwill				26,730
Total assets				34,280
Accounts payable and accrued expenses				(837)
Deferred revenue				0
Purchase price				33,443
CastleLine | Initial purchase price allocation
Acquisitions
Business combination, consideration transferred	33,400
Cash	1,088
Accounts receivable, net	510
Prepaid expenses	66
Restricted cash	2,501
Non-compete agreements	1,105
Databases/other	465
Customer relationships	395
Trademarks and trade names	150
Deferred taxes	0
Goodwill	28,125
Total assets	34,405
Accounts payable and accrued expenses	(875)
Deferred revenue	(87)
Purchase price	$ 33,443
CastleLine | Adjustments
Acquisitions
Cash				0
Accounts receivable, net				(410)
Prepaid expenses				(46)
Restricted cash				0
Non-compete agreements				25
Databases/other				1,335
Customer relationships				0
Trademarks and trade names				10
Deferred taxes				356
Goodwill				(1,395)
Total assets				(125)
Accounts payable and accrued expenses				38
Deferred revenue				87
Purchase price				$ 0

AVAILABLE FOR SALE SECURITIES (

AVAILABLE FOR SALE SECURITIES (Details) - USD ($) shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Number of available for sale shares acquired (in shares)		4.1
Purchase of available for sale securities	$ 0	$ 48,219,000	$ 29,966,000
Available for sale securities	$ 45,174,000	45,174,000		$ 0
Available for sale securities, investment related expenses		3,400,000
Investment income, dividend		$ 1,000,000

ACCOUNTS RECEIVABLE, NET (Detai

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts receivable, net
Accounts receivable, gross	$ 111,354	$ 123,479
Less: allowance for doubtful accounts	(9,774)	(18,456)
Total	101,580	105,023
Billed
Accounts receivable, net
Accounts receivable, gross	63,066	67,021
Unbilled Revenues
Accounts receivable, net
Accounts receivable, gross	$ 48,288	$ 56,458

PREPAID EXPENSES AND OTHER CU58

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Maintenance agreements, current portion	$ 7,213	$ 7,000
Short-term investments in real estate	8,695	0
Income taxes receivable	3,132	633
Prepaid expenses	6,166	7,873
Other current assets	6,721	6,245
Total	$ 31,927	$ 21,751

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 232,244		$ 232,244		$ 248,676
Less: accumulated depreciation and amortization	(122,459)		(122,459)		(129,555)
Total	109,785		109,785		119,121
Depreciation and amortization	9,200	$ 9,200	27,521	$ 27,637
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	163,140		163,140		177,010
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	19,586		19,586		21,720
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	13,792		13,792		14,443
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 35,726		$ 35,726		$ 35,503

GOODWILL (Details)

GOODWILL (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Goodwill, beginnig of period	$ 82,801
Goodwill, end of period	89,905
Mortgage Services
Goodwill [Roll Forward]
Goodwill, beginnig of period	80,423
Goodwill, end of period	87,527
Financial Services
Goodwill [Roll Forward]
Goodwill, beginnig of period	2,378
Goodwill, end of period	2,378
CastleLine | Mortgage Services
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	(1,395)
CastleLine | Financial Services
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	0
RentRange, Investability and Onit Solutions
Goodwill [Roll Forward]
Goodwill, end of period	19,615
RentRange, Investability and Onit Solutions | Mortgage Services
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	50
RentRange, Investability and Onit Solutions | Financial Services
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	0
Granite
Goodwill [Roll Forward]
Acquisition of Granite	8,449
Granite | Mortgage Services
Goodwill [Roll Forward]
Acquisition of Granite	8,449
Granite | Financial Services
Goodwill [Roll Forward]
Acquisition of Granite	0
Scenario, Adjustment [Member] | CastleLine
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	(1,395)
Scenario, Adjustment [Member] | RentRange, Investability and Onit Solutions
Goodwill [Roll Forward]
Goodwill, purchase price allocation adjustment	50
Goodwill, end of period	$ 50

INTANGIBLE ASSETS, NET (Details

INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Intangible Assets, Net
Gross carrying amount	$ 330,187		$ 330,187		$ 327,782
Accumulated amortization	(167,211)		(167,211)		(130,779)
Net book value	162,976		162,976		197,003
Amortization expense for definite lived intangible assets	11,465	$ 10,118	36,432	$ 27,995
2,016	47,700		47,700
2,017	34,600		34,600
2,018	26,100		26,100
2,019	20,700		20,700
2,020	16,800		16,800
Trademarks and trade names
Intangible Assets, Net
Gross carrying amount	15,254		15,254		15,244
Accumulated amortization	(7,419)		(7,419)		(6,491)
Net book value	7,835		7,835		8,753
Customer related intangible assets
Intangible Assets, Net
Gross carrying amount	274,428		274,428		274,428
Accumulated amortization	(146,890)		(146,890)		(113,725)
Net book value	127,538		127,538		160,703
Operating agreement
Intangible Assets, Net
Gross carrying amount	35,000		35,000		35,000
Accumulated amortization	(11,667)		(11,667)		(10,354)
Net book value	23,333		23,333		24,646
Non-compete agreements
Intangible Assets, Net
Gross carrying amount	1,460		1,460		1,435
Accumulated amortization	(405)		(405)		(115)
Net book value	1,055		1,055		1,320
Intellectual property
Intangible Assets, Net
Gross carrying amount	300		300		300
Accumulated amortization	(78)		(78)		(55)
Net book value	222		222		245
Other intangible assets
Intangible Assets, Net
Gross carrying amount	3,745		3,745		1,375
Accumulated amortization	(752)		(752)		(39)
Net book value	$ 2,993		$ 2,993		$ 1,336
Weighted Average [Member] | Trademarks and trade names
Intangible Assets, Net
Weighted average estimated useful life (in years)			13 years
Weighted Average [Member] | Customer related intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)			10 years
Weighted Average [Member] | Operating agreement
Intangible Assets, Net
Weighted average estimated useful life (in years)			20 years
Weighted Average [Member] | Non-compete agreements
Intangible Assets, Net
Weighted average estimated useful life (in years)			4 years
Weighted Average [Member] | Intellectual property
Intangible Assets, Net
Weighted average estimated useful life (in years)			10 years
Weighted Average [Member] | Other intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)			5 years

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits	$ 5,599	$ 5,341
Maintenance agreements, non-current portion	1,177	1,570
Restricted cash	4,505	4,801
Other	909	1,441
Total	$ 12,190	$ 13,153

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accounts payable	$ 16,940	$ 11,644
Accrued expenses - general	34,148	30,347
Accrued salaries and benefits	46,417	46,564
Income taxes payable	3,856	3,316
Total	$ 101,361	$ 91,871

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other current liabilities
Unfunded cash account balances	$ 2,995	$ 6,395
Other	10,851	9,871
Total	$ 13,846	$ 16,266

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	Aug. 01, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)	May 07, 2013USD ($)
Debt
Senior secured term loan		$ 481,140,000		$ 481,140,000		$ 536,598,000
Less: debt issuance costs, net		(4,778,000)		(4,778,000)		(6,184,000)
Less: unamortized discount, net		(1,728,000)		(1,728,000)		(2,236,000)
Net long-term debt		474,634,000		474,634,000		528,178,000
Less: current portion		(5,945,000)		(5,945,000)		(5,945,000)
Long-term debt, less current portion		468,689,000		$ 468,689,000		522,233,000
Percentage discount of par received on early extinguishment of debt				13.20%	9.80%
Gains (losses) on extinguishment of debt			$ 872,000	$ 5,464,000	$ 1,986,000
Interest on long-term debt		5,952,000	7,041,000	18,481,000	21,396,000
Senior secured term loan
Debt
Less: debt issuance costs, net		$ (4,800,000)		(4,800,000)		(6,200,000)
Debt instrument accordion feature increase in additional borrowings							$ 200,000,000
Aggregate amount of each consecutive quarterly scheduled principal installment	$ 1,486,000
Mandatory prepayments owed				0
Extinguishment of debt, amount			$ 11,000,000	51,000,000	27,000,000
Percentage discount of par received on early extinguishment of debt			11.00%
Gains (losses) on extinguishment of debt			$ 900,000	$ 5,500,000	2,000,000
Interest rate at the end of the period (as a percent)		4.50%		4.50%
Accumulated amortization		$ 5,500,000		$ 5,500,000		$ 4,100,000
Interest on long-term debt		$ 6,000,000	$ 7,000,000	$ 18,500,000	$ 21,400,000
Senior secured term loan | Maximum
Debt
Leverage ratio to be maintained under the credit facility covenants				3
Covenant threshold, leverage ratio				3.50
Number of days within which the entity fails to pay principal when due or interest or any other amount owing on any other obligation under the credit agreement, is considered as event of default				5 days
Amount of principal or interest if failed to pay considered as event of default				$ 40,000,000
Amount of debt which results in acceleration of debt if failed to pay considered as event of default				40,000,000
Amount of unbonded, undischarged or unstayed debt under entry by court of one or more judgments for certain period to determine as event of default				$ 40,000,000
Senior secured term loan | Minimum
Debt
Leverage ratio to be maintained under the credit facility covenants				1
Covenant threshold, leverage ratio				1
Senior secured term loan | Adjusted Eurodollar Rate
Debt
Reference rate				Adjusted Eurodollar Rate
Fixed interest rate base (as a percent)				1.00%
Interest rate margin (as a percent)				3.50%
Senior secured term loan | Base Rate
Debt
Reference rate				Base Rate
Fixed interest rate base (as a percent)				2.00%
Interest rate margin (as a percent)				2.50%

OTHER NON-CURRENT LIABILITIES66

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Acquisition related obligations	$ 3,191	$ 8,422
Other non-current liabilities	10,599	9,731
Total	$ 13,790	$ 18,153

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) shares in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for sale securities	$ 45,174,000		$ 45,174,000		$ 0
Fair value of acquisition related contingent consideration	2,757,000		2,757,000		3,932,000
Change in the fair value of Equator Earn Out	$ 0	$ 0	$ 0	$ (7,591,000)
Equator LLC
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Payment made to extinguish contingent consideration				$ 500,000
Value of contingent consideration after payment to sellers					$ 0
Residential
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale securities, number of shares	4.1		4.1

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure
Cash and cash equivalents	$ 134,948,000	$ 179,327,000	$ 150,147,000	$ 161,361,000
Restricted cash	4,505,000	4,801,000
Available for sale securities	45,174,000	0
Liabilities, Fair Value Disclosure
Acquisition contingent consideration	2,757,000	3,932,000
Long-term debt, carrying amount	481,140,000	536,598,000
Level 1 | Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	134,948,000	179,327,000
Restricted cash	4,505,000	4,801,000
Available for sale securities	45,174,000	0
Liabilities, Fair Value Disclosure
Acquisition contingent consideration	0	0
Long-term debt, fair value	0	0
Level 2 | Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	0	0
Restricted cash	0	0
Available for sale securities	0	0
Liabilities, Fair Value Disclosure
Acquisition contingent consideration	0	0
Long-term debt, fair value	452,272,000	469,523,000
Level 3 | Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	0	0
Restricted cash	0	0
Available for sale securities	0	0
Liabilities, Fair Value Disclosure
Acquisition contingent consideration	2,757,000	3,932,000
Long-term debt, fair value	$ 0	$ 0

SHAREHOLDERS_ EQUITY AND SHAR69

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Stock Repurchase Plan & Share-Based Compensation (Details) $ / shares in Units, $ in Thousands	May 18, 2016$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2016USD ($)component$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2015shares
Stock Repurchase Plan
Capacity available to repurchase common stock under senior secured term loan (in dollars) | $		$ 379,000		$ 379,000
Share-Based Compensation
Share-based compensation expense (in dollars) | $		1,100	$ 1,900	4,700	$ 3,300
Estimated unrecognized compensation costs (in dollars) | $		$ 7,300		$ 7,300
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized				2 years 2 months 23 days
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average grant date fair value of stock options granted per share | $ / shares				$ 16.85	$ 12.62
Intrinsic value of options exercised | $				$ 17,280	$ 232
Grant date fair value of stock options that vested | $				$ 2,372	$ 1,195
Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				1 year
Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				4 years
Employee and Non Employee Stock Option | Service-Based
Share-Based Compensation
Outstanding (in shares)		900,000		900,000
Employee and Non Employee Stock Option | Service-Based | Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Employee and Non Employee Stock Option | Service-Based | Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				4 years
Expiration term				10 years
Employee and Non Employee Stock Option | Market-Based
Share-Based Compensation
Expiration term				10 years
Outstanding (in shares)		1,100,000		1,100,000
Allowable performance period before expiration date				3 years
Number of components of an award | component				2
Employee and Non Employee Stock Option | Market-Based, ordinary performance | Minimum
Share-Based Compensation
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				20.00%
Employee and Non Employee Stock Option | Market-Based, extraordinary performance | Minimum
Share-Based Compensation
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				25.00%
Employee and Non Employee Stock Option | Performance-Based
Share-Based Compensation
Outstanding (in shares)		100,000		100,000
Vesting percentage for awards that vest upon achievement of certain criteria				25.00%
Cumulative vesting percentage for awards that vest in equal annual installments				75.00%
Employee and Non Employee Stock Option | Performance-Based | Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				10 years
Option
Share-Based Compensation
Outstanding (in shares)		2,080,047		2,080,047		3,163,125
Stock options granted (in shares)				142,654	729,900
Weighted average exercise price of stock options granted (in usd per share) | $ / shares				$ 29.22	$ 23.19
Share Repurchase Program, Current
Stock Repurchase Plan
Number of shares of common stock authorized to be purchased (in shares)	4,600,000
Percentage of outstanding shares authorized to be repurchased	25.00%
Minimum purchase price authorized (in usd per share) | $ / shares	$ 1
Maximum purchase price authorized (in usd per share) | $ / shares	$ 500
Remaining number of shares available for repurchase under the plan (in shares)		4,000,000		4,000,000
Share Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased (in shares)		500,000	200,000	1,300,000	1,800,000
Average purchase price per share (in usd per share) | $ / shares		$ 28.68	$ 26.88	$ 26.94	$ 27.90

SHAREHOLDERS_ EQUITY AND SHAR70

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Black-Scholes and Binomial model Assumptions and Summary of Activity related to our stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Option
Summary of activity related to our stock
Outstanding at the beginning of the period (in shares)	3,163,125
Stock options granted (in shares)	142,654	729,900
Exercised (in shares)	(1,110,193)
Forfeited (in shares)	(115,539)
Outstanding at the end of the period (in shares)	2,080,047		3,163,125
Exercisable at the end of the period (in shares)	1,274,537
Weighted average exercise price
Outstanding at the beginning of the period (in usd per share)	$ 20.13
Weighted average exercise price of stock options granted (in usd per share)	29.22	$ 23.19
Exercised (in usd per share)	9.57
Forfeited (in usd per share)	36.53
Outstanding at the end of the period (in usd per share)	25.48		$ 20.13
Exercisable at the end of the period (in usd per share)	$ 20.17
Weighted average contractual term
Weighted average contractual term	5 years 6 months 18 days		4 years 11 months 9 days
Exercisable at the end of the period	3 years 7 months 13 days
Aggregate intrinsic value
Aggregate intrinsic value, beginning balance (in dollars)	$ 35,842
Aggregate intrinsic value, ending balance (in dollars)	22,595		$ 35,842
Exercisable at the end of the period (in dollars)	$ 18,372
Black Scholes | Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	1.25%	1.50%
Expected stock price volatility (%)	59.75%	55.06%
Expected option life (in years)	6 years	6 years
Fair value	$ 11.15	$ 10.01
Black Scholes | Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	1.89%	1.78%
Expected stock price volatility (%)	62.14%	58.58%
Expected option life (in years)	6 years 3 months	6 years 3 months
Fair value	$ 18.60	$ 17.34
Binomial | Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	0.23%	0.02%
Expected stock price volatility (%)	59.76%	55.06%
Expected option life (in years)	4 years 6 months 15 days	4 years 1 month 6 days
Fair value	$ 11.06	$ 9.91
Binomial | Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	1.97%	2.26%
Expected stock price volatility (%)	62.14%	57.60%
Expected option life (in years)	4 years 10 months 17 days	4 years 10 months 17 days
Fair value	$ 19.27	$ 16.13

SHAREHOLDERS_ EQUITY AND SHAR71

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION RSU (Details)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Weighted average price per share of restricted shares granted | $ / shares	$ 26.66
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of RSU outstanding, beginning of period	272,326
RSU Granted	12,878
RSU Issued	(18,774)
RSU Forfeited	15,400
Number of RSU outstanding, end of period	251,030
Minimum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Share based compensation arrangement by share based payment award estimated forfeiture rate	0.00%
Minimum | Restricted Stock Units (RSUs)
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	1 year
Maximum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Share based compensation arrangement by share based payment award estimated forfeiture rate	40.00%
Maximum | Restricted Stock Units (RSUs)
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	4 years

REVENUE Revenue (Details)

REVENUE Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of revenue [Line Items]
Revenue	$ 252,745	$ 272,776	$ 758,676	$ 781,579
Service revenue
Schedule of revenue [Line Items]
Revenue	239,782	245,469	715,386	689,880
Reimbursable expenses
Schedule of revenue [Line Items]
Revenue	12,080	26,456	41,317	89,242
Non-controlling interests
Schedule of revenue [Line Items]
Revenue	$ 883	$ 851	$ 1,973	$ 2,457

COST OF REVENUE (Details)

COST OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cost of Revenue [Abstract]
Compensation and benefits	$ 66,357	$ 62,997	$ 201,193	$ 197,213
Outside fees and services	77,445	66,952	222,574	175,021
Reimbursable expenses	12,080	26,456	41,317	89,242
Technology and telecommunications	11,502	10,630	32,145	32,878
Depreciation and amortization	6,618	6,815	20,007	20,481
Total	$ 174,002	$ 173,850	$ 517,236	$ 514,835

SELLING, GENERAL AND ADMINIST74

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Selling, General and Administrative Expense [Abstract]
Compensation and benefits	$ 14,145	$ 13,906	$ 42,460	$ 40,305
Occupancy related costs	8,903	9,808	26,785	30,509
Amortization of intangible assets	11,465	10,118	36,432	27,995
Professional services	4,097	4,008	17,533	18,637
Marketing costs	9,275	7,325	21,438	18,598
Depreciation and amortization	2,557	2,390	7,514	7,156
Other	3,444	3,783	9,547	12,110
Total	$ 53,886	$ 51,338	$ 161,709	$ 155,310

LOSS ON HLSS EQUITY SECURITIE75

LOSS ON HLSS EQUITY SECURITIES AND DIVIDENDS RECEIVED (Details) - USD ($)	Mar. 17, 2015	Apr. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale shares acquired (in shares)					4,100,000
Purchase of available for sale securities			$ 0		$ 48,219,000	$ 29,966,000
Loss on HLSS equity securities and dividends received, net			$ 0	$ 0	0	(1,854,000)
HLSS
Schedule of Available-for-sale Securities [Line Items]
Liquidating dividend		$ 20,400,000
Sale proceeds from HLSS common stock		$ 7,700,000
Loss on HLSS equity securities and dividends received, net					$ 0	$ (1,900,000)
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Common stock | HLSS
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale shares acquired (in shares)	1,613,125
Available-for-sale securities, shares sold		1,600,000

OTHER INCOME (EXPENSE), NET (De

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Income and Expenses [Abstract]
Gain on early extinguishment of debt		$ 872	$ 5,464	$ 1,986
Expenses related to the purchase of available for sale securities	$ 0	0	(3,356)	0
Interest income	11	39	28	101
Other, net	(120)	(258)	472	(610)
Total	$ (109)	$ 653	$ 2,608	$ 1,477

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income attributable to Altisource (in dollars)	$ 10,589	$ 37,046	$ 49,077	$ 86,694
Weighted average common shares outstanding, basic (in shares)	18,715	19,091	18,669	19,608
Dilutive effect of stock options (in shares)	853	1,320	1,069	1,080
Weighted average common shares outstanding, diluted (in shares)	19,568	20,411	19,738	20,688
Earnings per share:
Basic (in usd per share)	$ 0.57	$ 1.94	$ 2.63	$ 4.42
Diluted (in usd per share)	$ 0.54	$ 1.82	$ 2.49	$ 4.19
Service Based Options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	400	400	400	600
Performance Based Options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	400	300	400	300

COMMITMENTS, CONTINGENCIES AN78

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Apr. 30, 2015
Concentration Risk
Other portfolio servicing revenue, percentage	19.00%		19.00%
Escrow and Trust Balances
Amounts held in escrow and trust accounts	$ 65.6		$ 65.6		$ 66.6
Ocwen | Revenue from Rights Concentration Risk | Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	56.00%	60.00%	56.00%	59.00%
HLSS | NRZ
Concentration Risk
Business acquisition, percentage of voting interests acquired						78.00%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting [Abstract]
Number of reporting segments | segment			3
SEGMENT REPORTING
Revenue	$ 252,745	$ 272,776	$ 758,676	$ 781,579
Cost of revenue	174,002	173,850	517,236	514,835
Gross profit	78,743	98,926	241,440	266,744
Selling, general and administrative expenses	53,886	51,338	161,709	155,310
Change in the fair value of Equator Earn Out				(7,591)
Income from operations	24,857	47,588	79,731	119,025
Total other income (expense), net	(6,061)	(6,388)	(15,873)	(21,773)
Income before income taxes and non-controlling interests	18,796	41,200	63,858	97,252
Total Assets:
Total assets	693,332		693,332		$ 721,798
Operating Segment | Mortgage Services
SEGMENT REPORTING
Revenue	204,696	209,506	612,243	583,873
Cost of revenue	132,399	122,724	381,543	350,238
Gross profit	72,297	86,782	230,700	233,635
Selling, general and administrative expenses	27,543	23,399	83,119	69,188
Change in the fair value of Equator Earn Out				0
Income from operations	44,754	63,383	147,581	164,447
Total other income (expense), net	8	9	57	28
Income before income taxes and non-controlling interests	44,762	63,392	147,638	164,475
Total Assets:
Total assets	315,384		315,384		325,461
Operating Segment | Financial Services
SEGMENT REPORTING
Revenue	17,599	21,337	57,461	67,080
Cost of revenue	13,238	15,418	41,645	46,058
Gross profit	4,361	5,919	15,816	21,022
Selling, general and administrative expenses	4,002	4,553	12,515	13,856
Change in the fair value of Equator Earn Out				0
Income from operations	359	1,366	3,301	7,166
Total other income (expense), net	28	31	63	21
Income before income taxes and non-controlling interests	387	1,397	3,364	7,187
Total Assets:
Total assets	44,652		44,652		53,757
Operating Segment | Technology Services
SEGMENT REPORTING
Revenue	41,544	51,437	120,291	159,399
Cost of revenue	38,557	44,419	122,874	144,565
Gross profit	2,987	7,018	(2,583)	14,834
Selling, general and administrative expenses	6,115	7,628	20,113	22,189
Change in the fair value of Equator Earn Out				(7,591)
Income from operations	(3,128)	(610)	(22,696)	236
Total other income (expense), net	1	38	101	21
Income before income taxes and non-controlling interests	(3,127)	(572)	(22,595)	257
Total Assets:
Total assets	141,846		141,846		151,969
Corporate Items and Eliminations
SEGMENT REPORTING
Revenue	(11,094)	(9,504)	(31,319)	(28,773)
Cost of revenue	(10,192)	(8,711)	(28,826)	(26,026)
Gross profit	(902)	(793)	(2,493)	(2,747)
Selling, general and administrative expenses	16,226	15,758	45,962	50,077
Change in the fair value of Equator Earn Out				0
Income from operations	(17,128)	(16,551)	(48,455)	(52,824)
Total other income (expense), net	(6,098)	(6,466)	(16,094)	(21,843)
Income before income taxes and non-controlling interests	(23,226)	$ (23,017)	(64,549)	$ (74,667)
Total Assets:
Total assets	$ 191,450		$ 191,450		$ 190,611

PREMISES AND EQUIPMENT, NET per

PREMISES AND EQUIPMENT, NET per country (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Premises & equipment, net
Premises and equipment, net	$ 109,785	$ 119,121
United States
Premises & equipment, net
Premises and equipment, net	76,683	85,021
India
Premises & equipment, net
Premises and equipment, net	15,705	21,187
Luxembourg
Premises & equipment, net
Premises and equipment, net	14,372	9,944
Philippines
Premises & equipment, net
Premises and equipment, net	2,776	2,664
Uruguay
Premises & equipment, net
Premises and equipment, net	$ 249	$ 305