Altisource Portfolio Solutions (ASPS) 10-Q26 Oct 172017 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 20, 2017
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, 2017
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 (in shares)		17,904,739
Entity Treasury Stock (in shares)		7,508,009
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 114,123	$ 149,294
Available for sale securities	46,044	45,754
Accounts receivable, net	63,177	87,821
Prepaid expenses and other current assets	59,880	42,608
Total current assets	283,224	325,477
Premises and equipment, net	80,823	103,473
Goodwill	86,283	86,283
Intangible assets, net	128,289	155,432
Deferred tax assets, net	7,214	7,292
Other assets	10,568	11,255
Total assets	596,401	689,212
Current liabilities:
Accounts payable and accrued expenses	83,352	83,135
Accrued litigation settlement	0	32,000
Current portion of long-term debt	5,945	5,945
Deferred revenue	9,746	8,797
Other current liabilities	10,982	19,061
Total current liabilities	110,025	148,938
Long-term debt, less current portion	414,431	467,600
Other non-current liabilities	7,796	10,480
Commitments, contingencies and regulatory matters (Note 20)
Equity:
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 17,905 outstanding as of September 30, 2017; 25,413 shares authorized and issued and 18,774 outstanding as of December 31, 2016)	25,413	25,413
Additional paid-in capital	111,457	107,288
Retained earnings	342,111	333,786
Accumulated other comprehensive loss	(1,533)	(1,745)
Treasury stock, at cost (7,508 shares as of September 30, 2017 and 6,639 shares as of December 31, 2016)	(414,668)	(403,953)
Altisource equity	62,780	60,789
Non-controlling interests	1,369	1,405
Total equity	64,149	62,194
Total liabilities and equity	$ 596,401	$ 689,212

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	100,000,000	25,413,000
Common stock, shares issued (in shares)	25,413,000	25,413,000
Common stock, shares outstanding (in shares)	17,905,000	18,774,000
Treasury stock, shares (in shares)	7,508,000	6,639,000

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 234,979	$ 252,745	$ 726,147	$ 758,676
Cost of revenue	174,898	174,002	538,244	517,236
Gross profit	60,081	78,743	187,903	241,440
Selling, general and administrative expenses	46,622	53,886	146,793	161,709
Income from operations	13,459	24,857	41,110	79,731
Other income (expense), net:
Interest expense	(5,599)	(5,952)	(16,862)	(18,481)
Other income (expense), net	2,497	(109)	8,015	2,608
Total other income (expense), net	(3,102)	(6,061)	(8,847)	(15,873)
Income before income taxes and non-controlling interests	10,357	18,796	32,263	63,858
Income tax provision	(2,591)	(7,324)	(7,615)	(12,808)
Net income	7,766	11,472	24,648	51,050
Net income attributable to non-controlling interests	(805)	(883)	(2,107)	(1,973)
Net income attributable to Altisource	$ 6,961	$ 10,589	$ 22,541	$ 49,077
Earnings per share:
Basic (in usd per share)	$ 0.39	$ 0.57	$ 1.23	$ 2.63
Diluted (in usd per share)	$ 0.38	$ 0.54	$ 1.20	$ 2.49
Weighted average shares outstanding:
Basic (in shares)	18,023	18,715	18,337	18,669
Diluted (in shares)	18,429	19,568	18,854	19,738
Comprehensive income:
Unrealized gain (loss) on securities, net of income tax benefit (provision) of $2,054, $(2,070), $(78), $889, respectively	$ (5,530)	$ 5,016	$ 212	$ (2,156)
Comprehensive income, net of tax	2,236	16,488	24,860	48,894
Comprehensive income attributable to non-controlling interests	(805)	(883)	(2,107)	(1,973)
Comprehensive income attributable to Altisource	$ 1,431	$ 15,605	$ 22,753	$ 46,921

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Income tax (provision) benefit on securities	$ 2,054	$ (2,070)	$ (78)	$ 889

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 income (loss)	Treasury stock, at cost	Non-controlling interests
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 income (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 and issuance of restricted shares	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
Balance at Dec. 31, 2016	62,194	$ 25,413	107,288	333,786	(1,745)	(403,953)	1,405
Balance (in shares) at Dec. 31, 2016		25,413
Increase (Decrease) in Equity
Net income	24,648			22,541			2,107
Other comprehensive income (loss), net of tax	212				212
Distributions to non-controlling interest holders	(2,143)						(2,143)
Share-based compensation expense	3,237		3,237
Exercise of stock options and issuance of restricted shares	2,084			(11,787)		13,871
Treasury shares withheld for the payment of tax on restricted share issuances	(1,088)			(1,497)		409
Repurchase of shares	(24,995)					(24,995)
Balance at Sep. 30, 2017	$ 64,149	$ 25,413	$ 111,457	$ 342,111	$ (1,533)	$ (414,668)	$ 1,369
Balance (in shares) at Sep. 30, 2017		25,413

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 24,648	$ 51,050
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,411	27,521
Amortization of intangible assets	27,143	36,432
Change in the fair value of acquisition related contingent consideration	24	(1,174)
Share-based compensation expense	3,237	4,692
Bad debt expense	3,101	763
Gain on early extinguishment of debt	(5,419)	(5,464)
Amortization of debt discount	225	307
Amortization of debt issuance costs	625	850
Deferred income taxes	0	17
Loss on disposal of fixed assets	2,776	30
Changes in operating assets and liabilities:
Accounts receivable	21,543	3,505
Prepaid expenses and other current assets	(17,272)	(10,167)
Other assets	760	496
Accounts payable and accrued expenses	165	7,005
Other current and non-current liabilities	(41,838)	(9,828)
Net cash provided by operating activities	47,129	106,035
Cash flows from investing activities:
Additions to premises and equipment	(7,485)	(16,525)
Acquisition of businesses, net of cash acquired	0	(9,617)
Purchase of available for sale securities	0	(48,219)
Change in restricted cash	(73)	0
Other investing activities	0	266
Net cash used in investing activities	(7,558)	(74,095)
Cash flows from financing activities:
Repayment and repurchases of long-term debt	(48,600)	(49,237)
Proceeds from stock option exercises	2,084	8,876
Purchase of treasury shares	(24,995)	(34,321)
Distributions to non-controlling interests	(2,143)	(1,637)
Payment of tax withholding on issuance of restricted shares	(1,088)	0
Net cash used in financing activities	(74,742)	(76,319)
Net decrease in cash and cash equivalents	(35,171)	(44,379)
Cash and cash equivalents at the beginning of the period	149,294	179,327
Cash and cash equivalents at the end of the period	114,123	134,948
Supplemental cash flow information:
Interest paid	16,203	17,244
Income taxes paid, net	15,445	14,178
Non-cash investing and financing activities:
Increase in payables for purchases of premises and equipment	$ 52	$ 2,458

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Sep. 30, 2017
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 an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing market. Altisource Portfolio Solutions S.A. is organized under the laws of Luxembourg and is publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” 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. Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. Prior year comparable period segment disclosures have been restated to conform to the current year presentation. See Note 21 for a description of our business segments. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders 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). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is 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, 2017 , Lenders One had total assets of $4.6 million and total liabilities of $2.0 million . As of December 31, 2016 , Lenders One had total assets of $3.8 million and total liabilities of $1.5 million . 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, 2016 , as filed with the SEC on February 16, 2017 . 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 The Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , became effective on January 1, 2017. 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 requires companies to recognize all award-related excess tax benefits and tax deficiencies in the income statement, classify any excess tax benefits as an operating activity in the statement of cash flows, limit tax withholding up to the maximum statutory tax rates in order to continue to apply equity accounting rules and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in the statement of cash flows. The standard also provides companies with the option of estimating forfeitures or recognizing forfeitures as they occur. In connection with the adoption of this standard, the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. This policy election resulted in a cumulative effect adjustment of $0.9 million to retained earnings and additional paid-in capital as of January 1, 2017 using the modified retrospective transition method. There were no other significant impacts of the adoption of this standard on the Company’s results of operations and financial position. 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 new 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. The Company plans to adopt ASU No. 2014-09 retrospectively with the cumulative effect of initially applying the new standard recognized on the date of the initial application. The new standard will be effective for the Company on January 1, 2018. Based on the Company’s analysis of all sources of revenue from customers for the nine months ended September 30, 2017 , the Company estimates that less than 3% of consolidated revenue, primarily related to software development professional services, would likely be deferred and recognized over future periods under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact 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 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. Based on the Company’s analysis of this guidance, upon adoption of ASU No. 2016-01 the Company will reflect changes in the fair value of its available for sale securities in income. These changes in fair value are currently reflected in other comprehensive income. The Company will adopt ASU No. 2016-01 with a cumulative effect adjustment to the balance sheet as of the beginning of the year of adoption. The Company currently has one investment that will be impacted by this standard, its investment in Altisource Residential Corporation (“RESI”) (see Note 4 ). As of September 30, 2017 and December 31, 2016 , the unrealized loss in accumulated other comprehensive loss related to the RESI investment was $1.5 million and $1.7 million , respectively. 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 of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of its lease arrangements as of September 30, 2017 where the Company is a lessee, less than $25.0 million , primarily related to office leases, would be recorded as right-of-use assets and lease liabilities on the Company’s balance sheet under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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 currently does not expect the adoption of this guidance to have a material effect 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 currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This standard will require that companies include restricted cash and restricted cash equivalents in their cash and cash equivalent balances in the statement of cash flows. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. 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 currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows. As of September 30, 2017 and December 31, 2016 , restricted cash was $4.2 million and $4.1 million , respectively. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The FASB issued 13 technical corrections and improvements to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , including providing optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. The amendments in this standard also expand the information that is required to be disclosed when an entity applies one of the optional exemptions. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This standard clarifies the definition of a business and provides a screen to determine if a set of inputs, processes and outputs is a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired would not be a business. Under the new guidance, in order to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. In addition, the standard narrows the definition of the term “output” so that it is consistent with how it is described in ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard will simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Current guidance requires that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This standard will require companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This standard will be effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, and will be applied prospectively. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . This standard was issued to clarify the scope of Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets , and to add guidance for partial sales of nonfinancial assets. Subtopic 610-20 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. 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 currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In May 2017, the FASB issued ASU No. 2017-09, C ompensation—Stock Compensation (Topic 718): Scope of Modification Accounting . This standard provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting. This standard will require companies to continue to apply modification accounting, unless the fair value, vesting conditions and classification of an award all do not change as a result of the modification. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this standard better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.

CUSTOMER CONCENTRATION

CUSTOMER CONCENTRATION	9 Months Ended
CUSTOMER CONCENTRATION	Sep. 30, 2017
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATION	CUSTOMER CONCENTRATION Ocwen Financial Corporation (“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 “Ocwen Service Agreements”) with terms extending through August 2025. Certain of the Ocwen Service Agreements, among other things, contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing. Certain of the Ocwen 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 continues until January 23, 2019, but which is subject to a 90 day termination right by Ocwen. Ocwen has disclosed that on July 23, 2017 it entered into a master agreement and a transfer agreement with New Residential Investment Corp. (individually, together with one or more of its subsidiaries, or one or more of its subsidiaries individually, “NRZ”) to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s remaining interests in Ocwen’s non-government-sponsored enterprise (“non-GSE”) mortgage servicing rights (“MSRs”) and subservicing relating to approximately $110 billion in unpaid principal balance as of June 30, 2017. On August 28, 2017, the Company entered into a Cooperative Brokerage Agreement and related letter agreement with NRZ. As a result, we expect that over time NRZ would become our largest customer, potentially representing more than 50% of our revenues. 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 Nine months ended 2017 2016 2017 2016 Mortgage Market 68 % 65 % 68 % 65 % Real Estate Market 1 % — % 1 % — % Other Businesses, Corporate and Eliminations 7 % 25 % 11 % 24 % Consolidated revenue 58 % 56 % 58 % 56 % For the nine months ended September 30, 2017 and 2016 , we generated revenue from Ocwen of $422.1 million and $422.2 million , respectively ( $136.4 million and $141.6 million for the third quarter of 2017 and 2016 , respectively). Services provided to Ocwen during such periods and reported in the Mortgage Market segment included real estate asset management and sales, residential property valuation, trustee management services, property preservation and inspection services, insurance services, mortgage charge-off collections and certain software applications. Services provided to Ocwen and reported in the Real Estate Market segment included rental property management. Services provided to Ocwen and reported as Other Businesses, Corporate and Eliminations included information technology (“IT”) infrastructure management. As of September 30, 2017 , accounts receivable from Ocwen totaled $23.7 million , $18.9 million of which was billed and $4.8 million of which was unbilled. As of December 31, 2016 , accounts receivable from Ocwen totaled $26.2 million , $15.8 million of which was billed and $10.4 million of which was unbilled. We earn additional revenue related to the portfolios serviced by Ocwen when a party other than Ocwen or NRZ selects Altisource as the service provider. For the nine months ended September 30, 2017 and 2016 , we recognized revenue of $118.0 million and $146.0 million , respectively ( $35.1 million and $48.0 million for the third quarter of 2017 and 2016 , respectively), related to the portfolios serviced by Ocwen when a party other than Ocwen or NRZ 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. We earned revenue from NRZ of $0.8 million related to the MSRs transferred by Ocwen to NRZ in the third quarter of 2017 . We earned additional revenue of $1.0 million in the third quarter of 2017 related to the MSRs transferred by Ocwen to NRZ when a party other than NRZ selects Altisource as the service provider.

ACQUISITION

ACQUISITION	9 Months Ended
ACQUISITION	Sep. 30, 2017
Business Combinations [Abstract]
ACQUISITION	ACQUISITION Granite Acquisition On July 29, 2016 , we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for $9.5 million in cash. 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 final allocation of the purchase price is as follows: (in thousands) Accounts receivable, net $ 1,024 Prepaid expenses 22 Other assets 25 Premises and equipment, net 299 Non-compete agreements 100 Trademarks and trade names 100 Customer relationships 3,400 Goodwill 4,827 9,797 Accounts payable and accrued expenses (57 ) Other current liabilities (192 ) Purchase price $ 9,548

AVAILABLE FOR SALE SECURITIES

AVAILABLE FOR SALE SECURITIES	9 Months Ended
AVAILABLE FOR SALE SECURITIES	Sep. 30, 2017
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 RESI common stock for $48.2 million . This investment is classified as available for sale and reflected in the condensed consolidated balance sheets at fair value at the respective balance sheet dates ( $46.0 million as of September 30, 2017 and $45.8 million as of December 31, 2016 ). 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, 2017 and 2016 , we earned dividends of $1.9 million and $1.0 million , respectively ( $0.6 million for the third quarter of 2017 and no comparative amount for the third quarter of 2016 ), related to this investment. In addition, during the nine months ended September 30, 2016 , we incurred expenses of $3.4 million ( no comparative amounts in 2017 and the third quarter of 2016 ) related to this investment.

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET	9 Months Ended
ACCOUNTS RECEIVABLE, NET	Sep. 30, 2017
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 48,108 $ 58,392 Unbilled 23,951 39,853 72,059 98,245 Less: Allowance for doubtful accounts (8,882 ) (10,424 ) Total $ 63,177 $ 87,821 Unbilled receivables consist primarily of certain real estate asset management and sales services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, 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
PREPAID EXPENSES AND OTHER CURRENT ASSETS	Sep. 30, 2017
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, Short-term investments in real estate $ 24,644 $ 13,025 Income taxes receivable 13,219 5,186 Prepaid expenses 7,712 6,919 Maintenance agreements, current portion 4,658 6,590 Litigation settlement insurance recovery — 4,000 Other current assets 9,647 6,888 Total $ 59,880 $ 42,608

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	9 Months Ended
PREMISES AND EQUIPMENT, NET	Sep. 30, 2017
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 $ 175,512 $ 164,877 Office equipment and other 12,077 20,188 Furniture and fixtures 13,826 13,997 Leasehold improvements 33,570 33,808 234,985 232,870 Less: Accumulated depreciation and amortization (154,162 ) (129,397 ) Total $ 80,823 $ 103,473 Depreciation and amortization expense totaled $27.4 million and $27.5 million for the nine months ended September 30, 2017 and 2016 , respectively ( $8.5 million and $9.2 million for the third quarter of 2017 and 2016 , respectively). These expenses are 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
GOODWILL AND INTANGIBLE ASSETS, NET	Sep. 30, 2017
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 Market Real Estate Market Other Businesses, Corporate and Eliminations Total Balance as of September 30, 2017 and December 31, 2016 $ 73,259 $ 10,056 $ 2,968 $ 86,283 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 $ 15,354 $ 15,354 $ (8,630 ) $ (7,724 ) $ 6,724 $ 7,630 Customer related intangible assets 10 277,828 277,828 (181,019 ) (156,980 ) 96,809 120,848 Operating agreement 20 35,000 35,000 (13,424 ) (12,104 ) 21,576 22,896 Non-compete agreements 4 1,560 1,560 (799 ) (507 ) 761 1,053 Intellectual property 10 300 300 (108 ) (85 ) 192 215 Other intangible assets 5 3,745 3,745 (1,518 ) (955 ) 2,227 2,790 Total $ 333,787 $ 333,787 $ (205,498 ) $ (178,355 ) $ 128,289 $ 155,432 Amortization expense for definite lived intangible assets was $27.1 million and $36.4 million for the nine months ended September 30, 2017 and 2016 , respectively ( $8.6 million and $11.5 million for the third quarter of 2017 and 2016 , respectively). Anticipated annual definite lived intangible asset amortization for 2017 through 2021 is $34.6 million , $26.2 million , $21.8 million , $18.2 million and $12.3 million , respectively.

OTHER ASSETS

OTHER ASSETS	9 Months Ended
OTHER ASSETS	Sep. 30, 2017
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 $ 5,164 $ 5,508 Restricted cash 4,200 4,127 Maintenance agreements, non-current portion 503 853 Other 701 767 Total $ 10,568 $ 11,255

ACCOUNTS PAYABLE, ACCRUED EXPEN

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2017
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 $ 12,251 $ 8,787 Accrued salaries and benefits 42,312 47,614 Accrued expenses - general 28,789 26,426 Income taxes payable — 308 Total $ 83,352 $ 83,135 Other current liabilities consist of the following: (in thousands) September 30, December 31, Unfunded cash account balances $ 5,054 $ 7,137 Other 5,928 11,924 Total $ 10,982 $ 19,061

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
LONG-TERM DEBT	Sep. 30, 2017
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 $ 425,067 $ 479,653 Less: Debt issuance costs, net (3,445 ) (4,486 ) Less: Unamortized discount, net (1,246 ) (1,622 ) Net long-term debt 420,376 473,545 Less: Current portion (5,945 ) (5,945 ) Long-term debt, less current portion $ 414,431 $ 467,600 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 subsidiaries are guarantors of the term loan (collectively, the “Guarantors”). We subsequently entered into three amendments to 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 , 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, 2017 . During the nine months ended September 30, 2017 , we repurchased portions of our senior secured term loan with an aggregate par value of $50.1 million at a weighted average discount of 12.2% , recognizing a net gain of $5.4 million on the early extinguishment of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5% , recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017 ). 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 ). 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, 2017 was 4.74% . 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, 2017 , debt issuance costs were $3.4 million , net of $6.8 million of accumulated amortization. As of December 31, 2016 , debt issuance costs were $4.5 million , net of $5.8 million of accumulated amortization.

OTHER NON-CURRENT LIABILITIES

OTHER NON-CURRENT LIABILITIES	9 Months Ended
OTHER NON-CURRENT LIABILITIES	Sep. 30, 2017
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, Deferred revenue $ 3,369 $ 5,680 Other non-current liabilities 4,427 4,800 Total $ 7,796 $ 10,480

FAIR VALUE MEASUREMENTS AND FIN

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS	FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of September 30, 2017 and December 31, 2016 . The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: September 30, 2017 December 31, 2016 (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 $ 114,123 $ 114,123 $ — $ — $ 149,294 $ 149,294 $ — $ — Restricted cash 4,200 4,200 — — 4,127 4,127 — — Available for sale securities 46,044 46,044 — — 45,754 45,754 — — Liabilities: Acquisition contingent consideration 401 — — 401 376 — — 376 Long-term debt 425,067 — 399,563 — 479,653 — 474,856 — Fair Value Measurements on a Recurring Basis Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid 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 RESI 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 acquisitions in prior years. 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. There were no transfers between different levels during the periods presented. Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. Our policy is to deposit our cash and cash equivalents with larger, highly rated financial institutions. The Company derives the largest portion of its revenues from Ocwen (see Note 2 for additional information on Ocwen revenues and accounts receivable balance). The Company mitigates its concentrations of credit risk with respect to accounts receivable by actively monitoring past due accounts and the economic status of customers, if known.

SHAREHOLDERS_ EQUITY AND SHARE-

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	9 Months Ended
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Share Repurchase Program On May 17, 2017 , our shareholders approved the renewal of the share repurchase program previously approved by the shareholders on May 18, 2016 , which replaced the previous share repurchase program. Under the 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, for a period of five years from the date of approval. Under the existing and prior programs, we purchased 1.1 million shares of common stock at an average price of $22.48 per share during the nine months ended September 30, 2017 and 1.3 million shares at an average price of $26.94 per share during the nine months ended September 30, 2016 ( 0.3 million shares at an average price of $23.48 per share for the third quarter of 2017 and 0.5 million shares at an average price of $28.68 per share for the third quarter of 2016 ). As of September 30, 2017 , approximately 3.9 million shares of common stock remain available for repurchase under the program. Our senior secured term loan limits the amount we can spend on share repurchases, which was approximately $403 million as of September 30, 2017 , and may prevent repurchases in certain circumstances. Share-Based Compensation We issue share-based awards in the form of stock options and restricted shares for certain employees, officers and directors. We recorded share-based compensation expense of $3.2 million and $4.7 million for the nine months ended September 30, 2017 and 2016 , respectively ( $1.4 million and $1.1 million for the third quarter of 2017 and 2016, respectively). As of September 30, 2017 , estimated unrecognized compensation costs related to share-based awards amounted to $9.4 million , which we expect to recognize over a weighted average remaining requisite service period of approximately 2.15 years . In connection with the January 1, 2017 adoption of FASB ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (see Note 1 ), the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. Prior to this accounting change, share-based compensation expense for stock options and restricted shares was recorded net of estimated forfeiture rates ranging from 0% to 40% . 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 vesting and expire on the earlier of ten years after the date of grant or following termination of service. A total of 736 thousand service-based awards were outstanding as of September 30, 2017 . 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 as “ordinary performance” grants, generally 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 as “extraordinary performance” grants, generally 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 equal 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 935 thousand market-based awards were outstanding as of September 30, 2017 . Performance-Based Options. These option grants begin to vest upon the achievement of certain specific financial measures. Generally, the awards begin vesting if the performance criteria are achieved; one-third vest on each anniversary of the grant date. For certain other financial measures, awards cliff-vest upon the achievement of the specific performance during the period from 2017 through 2021 . 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 above threshold performance levels, participants have the opportunity to vest in 70% to 150% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the award is canceled. The options expire on the earlier of ten years after the date of grant or following termination of service. There were 126 thousand performance-based awards outstanding as of September 30, 2017 . The Company granted 216 thousand stock options (at a weighted average exercise price of $34.07 per share) and 143 thousand stock options (at a weighted average exercise price of $29.22 per share) during the nine months ended September 30, 2017 and 2016 , respectively. The fair values of the service-based options and performance-based options were determined using the Black-Scholes option pricing model and the fair values of the market-based options were determined using a lattice (binomial) model. The following assumptions were used to determine the fair values as of the grant date: Nine months ended Nine months ended Black-Scholes Binomial Black-Scholes Binomial Risk-free interest rate (%) 1.89 - 2.29 0.77 - 2.38 1.25 - 1.89 0.23 - 1.97 Expected stock price volatility (%) 61.49 - 71.31 66.68 - 71.31 59.75 - 62.14 59.76 - 62.14 Expected dividend yield — — — — Expected option life (in years) 6.00 - 7.50 2.55 - 4.32 6.00 - 6.25 4.54 - 4.88 Fair value $13.57 - $24.80 $11.94 - $24.30 $11.15 - $18.60 $11.06 - $19.27 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) 2017 2016 Weighted average grant date fair value of stock options granted per share $ 20.95 $ 16.85 Intrinsic value of options exercised 2,524 17,280 Grant date fair value of stock options that vested 2,063 2,372 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, 2016 1,996,509 $ 25.98 5.32 $ 15,942 Granted 216,430 34.07 Exercised (192,378 ) 10.83 Forfeited (222,920 ) 31.21 Outstanding at September 30, 2017 1,797,641 27.93 5.14 8,413 Exercisable at September 30, 2017 1,170,148 22.56 3.48 7,723 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”). The restricted shares are composed of a combination of service-based awards and performance-based awards. Service-Based Awards. These awards generally 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. A total of 272 thousand service-based awards were outstanding as of September 30, 2017 . Performance-Based Awards. These awards generally begin to vest upon the achievement of certain specific financial measures. Generally, the awards begin vesting if the performance criteria are achieved; one-third vest on each anniversary of the grant date. The award of performance-based restricted shares is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is above threshold performance levels, participants have the opportunity to vest in 80% to 150% of the restricted share award, depending on performance achieved. If the performance criteria achieved is below a certain threshold, the award is canceled. A total of 42 thousand performance-based awards were outstanding as of September 30, 2017 . The Company granted 189 thousand restricted shares (at a weighted average grant date fair value of $30.94 per share) during the nine months ended September 30, 2017 . The following table summarizes the activity related to our restricted shares: Number of restricted shares Outstanding at December 31, 2016 231,730 Granted 188,622 Issued (49,538 ) Forfeited/canceled (56,575 ) Outstanding at September 30, 2017 314,239 Effective August 29, 2016, the EAR plans were terminated.

REVENUE REVENUE

REVENUE REVENUE	9 Months Ended
REVENUE REVENUE	Sep. 30, 2017
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 and sales of short-term investments in real estate. 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 that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One, a consolidated entity not owned by Altisource, and is 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) 2017 2016 2017 2016 Service revenue $ 224,308 $ 239,782 $ 692,254 $ 715,386 Reimbursable expenses 9,866 12,080 31,786 41,317 Non-controlling interests 805 883 2,107 1,973 Total $ 234,979 $ 252,745 $ 726,147 $ 758,676

COST OF REVENUE

COST OF REVENUE	9 Months Ended
COST OF REVENUE	Sep. 30, 2017
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, cost of real estate sold, 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) 2017 2016 2017 2016 Compensation and benefits $ 60,332 $ 66,357 $ 186,090 $ 201,193 Outside fees and services 83,670 77,445 250,883 222,574 Cost of real estate sold 4,411 — 16,461 — Reimbursable expenses 9,866 12,080 31,786 41,317 Technology and telecommunications 10,389 11,502 32,681 32,145 Depreciation and amortization 6,230 6,618 20,343 20,007 Total $ 174,898 $ 174,002 $ 538,244 $ 517,236

SELLING, GENERAL AND ADMINISTRA

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	9 Months Ended
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	Sep. 30, 2017
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, facilities, 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) 2017 2016 2017 2016 Compensation and benefits $ 15,068 $ 14,145 $ 43,115 $ 42,460 Occupancy related costs 8,536 8,903 28,347 26,785 Amortization of intangible assets 8,604 11,465 27,143 36,432 Professional services 3,886 4,097 11,983 17,533 Marketing costs 3,992 9,275 11,958 21,438 Depreciation and amortization 2,286 2,557 7,068 7,514 Other 4,250 3,444 17,179 9,547 Total $ 46,622 $ 53,886 $ 146,793 $ 161,709

OTHER INCOME (EXPENSE), NET

OTHER INCOME (EXPENSE), NET	9 Months Ended
OTHER INCOME (EXPENSE), NET	Sep. 30, 2017
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) 2017 2016 2017 2016 Gain on early extinguishment of debt $ 1,482 $ — $ 5,419 $ 5,464 Expenses related to the purchase of available for sale securities — — — (3,356 ) Interest income 27 11 169 28 Other, net 988 (120 ) 2,427 472 Total $ 2,497 $ (109 ) $ 8,015 $ 2,608

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 2017
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) 2017 2016 2017 2016 Net income attributable to Altisource $ 6,961 $ 10,589 $ 22,541 $ 49,077 Weighted average common shares outstanding, basic 18,023 18,715 18,337 18,669 Dilutive effect of stock options and restricted shares 406 853 517 1,069 Weighted average common shares outstanding, diluted 18,429 19,568 18,854 19,738 Earnings per share: Basic $ 0.39 $ 0.57 $ 1.23 $ 2.63 Diluted $ 0.38 $ 0.54 $ 1.20 $ 2.49 For the nine months ended September 30, 2017 and 2016 , 0.5 million options and 0.4 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS ( 0.9 million options and 0.4 million options for the third quarter of 2017 and 2016 , 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 0.3 million options and restricted shares and 0.4 million options for the nine months ended September 30, 2017 and 2016 , respectively ( 0.4 million options and restricted shares and 0.4 million options for the third quarter of 2017 and 2016 , respectively), which 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
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS	COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS We record a liability for contingencies 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. Litigation 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. As previously disclosed, Altisource received a Notice and Opportunity to Respond and Advise (“NORA”) letter on November 10, 2016 from the Consumer Financial Protection Bureau (“CFPB”) indicating that the CFPB is considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen. The NORA letter provides the recipient an opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced. On December 5, 2016, we provided a written response to the NORA letter setting forth the legal, policy and factual reasons why we believe an enforcement action is not warranted. We are committed to resolving any potential concerns of the CFPB. If the CFPB were to bring an enforcement action against us, the resolution of such action could have a material adverse impact on our business, reputation, financial condition and results of operations. However, we believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential CFPB enforcement action. Ocwen Related Matters As discussed in Note 2, Ocwen is our largest customer. Ocwen disclosed that, on July 23, 2017, it entered into a master agreement and a transfer agreement with NRZ to undertake certain actions to facilitate the transfer of Ocwen’s remaining interests in approximately $110 billion in unpaid principal balance (as of June 30, 2017) of its non-government-sponsored enterprise (“non-GSE”) mortgage servicing rights (the “Subject MSRs”) to NRZ. As of June 30, 2017, the Subject MSRs represented approximately 78% of Ocwen’s non-GSE MSRs. In the event the required third party consents are not obtained by July 23, 2018 or an earlier date agreed to by Ocwen and NRZ, the applicable Subject MSRs may (i) become subject to a new agreement to be negotiated between Ocwen and NRZ, (ii) be acquired by Ocwen, or, if Ocwen does not desire or is otherwise unable to purchase, sold to one or more third parties, or (iii) remain subject to their existing agreements. Ocwen also disclosed that it entered into a five year subservicing agreement with NRZ pursuant to which Ocwen will subservice the mortgage loans related to the Subject MSRs that are transferred to NRZ. In addition, Ocwen disclosed that during the five year subservicing agreement term, NRZ may terminate the subservicing agreement for convenience, subject to Ocwen’s right to receive a termination fee and proper notice. As disclosed in our report on Form 8-K filed on August 28, 2017, REALHome Services and Solutions, Inc. and REALHome Services and Solutions - CT, Inc. (collectively, “RHSS”), two licensed real estate brokerage subsidiaries of the Company, entered into a Cooperative Brokerage Agreement (the “Brokerage Agreement”) with a licensed real estate brokerage subsidiary of NRZ pursuant to which RHSS will be the exclusive provider, irrespective of the subservicer, of real estate brokerage services for portfolios associated with Subject MSRs that are transferred to NRZ (the “Ocwen Transferred Portfolio”) and with respect to approximately $6 billion of non-Ocwen serviced non-GSE portfolios. NRZ’s brokerage subsidiary will receive a cooperative brokerage commission on the sale of certain real estate owned (“REO”) properties from these portfolios. In addition, Altisource and RHSS entered into a letter agreement with NRZ which provides for NRZ to directly appoint RHSS (or another real estate brokerage subsidiary designated by Altisource) to perform the real estate brokerage services with respect to REO properties in the Ocwen Portfolio, subject to certain specified exceptions, in the event that NRZ’s brokerage subsidiary does not refer real estate listings from the Ocwen Portfolio to RHSS. In this case, the designated Altisource brokerage subsidiary would retain the full seller’s brokerage commission. The Brokerage Agreement and the letter agreement are effective through August 31, 2025 unless earlier terminated in accordance with their respective terms. Contemporaneously with the execution of the Brokerage Agreement, Altisource Solutions S.à r.l. executed a non-binding letter of intent (“LOI”) with NRZ to enter into a Services Agreement, setting forth the terms pursuant to which Altisource Solutions S.à r.l. would remain the exclusive service provider of fee-based services on the Ocwen Transferred Portfolio through August 2025, irrespective of the subservicer. The LOI provides for the parties to negotiate in good faith toward the execution of a Services Agreement within 30 days from the date of the LOI. This term was automatically extended by a further 30 days by the parties, pursuant to the terms of the LOI, as the parties continued to negotiate in good faith toward the completion and execution of a Services Agreement (such period, including as extended, the “Standstill Period”). Furthermore, as a result of continuing good faith negotiations on a Services Agreement, effective as of October 23, 2017, the parties amended the LOI to extend the term of the LOI and Standstill Period to November 30, 2017. This term will be automatically extended until January 12, 2018 if the parties are still negotiating the terms of the Services Agreement in good faith as of November 30, 2017. Pursuant to the LOI, the parties intend to negotiate all of the definitive and binding terms of the Services Agreement. RHSS has the right to terminate the Brokerage Agreement upon 90 days’ notice (which period may be shortened by NRZ) if a services agreement is not signed between Altisource and NRZ during the Standstill Period. The Brokerage Agreement may otherwise only be terminated upon the occurrence of certain specified events. NRZ has agreed that, during such notice period and/or the Standstill Period, it will not replace or reduce the role of Altisource as a service provider with respect to the Ocwen Transferred Portfolio. Following the execution of the Services Agreement and the transfer of the Subject MSRs from Ocwen to NRZ, we anticipate that revenue from NRZ would increase and revenue from Ocwen would decrease. As MSRs continue to transfer from Ocwen to NRZ, we anticipate that NRZ will become our largest customer. Had NRZ acquired all of the Subject MSRs and our agreements with NRZ were in place as of the beginning of the year, we estimate that approximately 50% of our revenue would have been related to NRZ. There can be no assurance that the parties will reach an agreement with respect to the terms of the Services Agreement or that a Services Agreement will be entered into on a timely basis or at all. 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. For example, on May 15, 2017, Ocwen disclosed that on April 20, 2017, the CFPB and the State of Florida filed separate complaints in the United States District Court for the Southern District of Florida against Ocwen alleging violations of Federal consumer financial law and, in the case of Florida, Florida statutes. As another example, on May 15, 2017, Ocwen also disclosed that on April 28, 2017, the Commonwealth of Massachusetts filed a lawsuit against Ocwen in the Superior Court for the Commonwealth of Massachusetts alleging violations of state consumer financial laws relating to Ocwen’s servicing business, including lender-placed insurance and property preservation fees. Ocwen disclosed that the complaints seek to obtain permanent injunctive relief, consumer redress, refunds, restitution, disgorgement, damages, civil penalties, costs and fees and other relief. In addition, Ocwen disclosed that a number of states publicly announced or otherwise undertook various administrative actions against Ocwen related to alleged violations of applicable laws and regulations related to servicing residential mortgages. Certain of the allegations in the complaints and certain of the state administrative actions assert that Ocwen’s use of certain Altisource services was a contributing factor to Ocwen’s purported violations. Ocwen disclosed that the state administrative actions announced or undertaken purportedly seek sanctions and various injunctive reliefs which may include restrictions on Ocwen obtaining additional mortgage servicing rights, continuing mortgage servicing or debt collection activities, originating or funding loans, initiating foreclosures or other limitations or restrictions on Ocwen’s business operations or licenses in certain of these states. Ocwen announced in several Form 8-K filings that it reached settlements with mortgage and banking regulatory agencies from certain of the states, the District of Columbia and state attorneys general that took regulatory actions against it on April 20, 2017 or shortly thereafter. Ocwen disclosed that, as part of these settlements, Ocwen will not acquire any new residential mortgage servicing rights until April 30, 2018 and will develop a plan of action and milestones regarding its transition from the servicing system it currently uses, REALServicing ® , to an alternative servicing system and will not board any new loans onto the REALServicing system, as well as other key provisions. All of the forgoing matters could result in adverse regulatory or other actions against Ocwen. While not all inclusive, other 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. In addition, in August 2017, Ocwen disclosed in its second quarter 2017 SEC Form 10-Q that it received a letter from Ginnie Mae that the state regulators’ cease and desist orders discussed above create a material change in Ocwen’s business status under Ginnie Mae’s MBS Guide and that Ginnie Mae has accordingly declared an event of default under guaranty agreements between Ginnie Mae and Ocwen. Ocwen further disclosed that in the letter it received, Ginnie Mae notified Ocwen that it will refrain from immediately exercising any rights relating to this matter for a period of 90 days from the date of the letter. In addition, Ocwen has disclosed that during this period, Ginnie Mae has asked Ocwen to provide certain information regarding the cease and desist orders and certain information regarding Ocwen’s business plan, financials results and operations and Ocwen also stated that it continues to operate as a Ginnie Mae issuer in all respects and continues to participate in Ginnie Mae issuing of mortgaged-backed securities and home equity conversion loan pools in the ordinary course. Ocwen also disclosed that adverse actions by Ginnie Mae could materially and adversely impact Ocwen’s business, including if Ginnie Mae were to terminate Ocwen as an issuer or servicer of Ginnie Mae securities. 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. The foregoing may have significant adverse effects on Ocwen’s business and/or our continuing relationship 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 its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination 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 could 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, sells or transfers 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 Additionally, Ocwen has stated, including in connection with resolving several state administrative actions discussed above, that it plans to transition from REALServicing to another mortgage servicing software platform. We anticipate that such a transition could be a multi-year project and Altisource would support Ocwen through such a transition. We do not anticipate that a servicing technology transition would impact the other services we provide to Ocwen. For the nine months ended September 30, 2017 and 2016 , service revenue from REALServicing was $20.1 million and $25.7 million , respectively ( $6.7 million and $8.2 million for the third quarter of 2017 and 2016 , respectively). We estimate, with respect to income before income tax, that the REALServicing business currently operates at break-even. Management cannot predict the outcome of these matters or the amount of any impact they may have on Altisource. However, in the event these matters materially negatively impact Altisource, we believe the variable nature of our cost structure would allow us to realign our cost structure in line with remaining revenue. Furthermore, in the event of a significant reduction in the volume of services purchased or loans serviced by Ocwen (such as a transfer of Ocwen’s servicing rights to a successor servicer), we believe the impact to Altisource could occur over an extended period of time. During this period, we believe that we will continue to generate revenue from all or a portion of Ocwen’s portfolio. Additionally, our Servicer Solutions, Origination Solutions, Consumer Real Estate Solutions and Real Estate Investor Solutions businesses are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these businesses. Management believes our plans, together with current liquidity and cash flows from operations would be sufficient to meet our 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 collections business. 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 $39.2 million and $64.1 million at September 30, 2017 and December 31, 2016 , respectively.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
SEGMENT REPORTING	Sep. 30, 2017
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. Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our chief operating decision maker manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market . In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services , Financial Services and Technology Services . The former Mortgage Services segment was separated into the Mortgage Market and Real Estate Market segments (as described below). Furthermore, certain of the software services business units that were formerly in the Technology Services segment and the mortgage charge-off collections business that was formerly in the Financial Services segment are now included in the Mortgage Market . Other Businesses, Corporate and Eliminations includes the other business that were formerly in the Financial Services segment as well as IT infrastructure management services formerly in the Technology Services segment. Prior year comparable period segment disclosures have been restated to conform to the current year presentation. The Mortgage Market segment provides loan servicers and originators with marketplaces and services and a portfolio of software, data analytics and information technologies that span the mortgage lifecycle. The Real Estate Market segment provides rental property investors and real estate consumers with marketplaces, products and services that span the real estate lifecycle. In addition, the Other Businesses, Corporate and Eliminations segment includes businesses that provide asset recovery management collection services primarily to debt originators (e.g., credit card, auto lending and retail credit), customer relationship management services primarily to the utility, insurance and hotel industries and IT infrastructure management services. Other Businesses, Corporate and Eliminations also includes interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, facilities, risk management, and sales and marketing costs not allocated to the business units as well as eliminations between the reportable segments. Financial information for our segments is as follows: Three months ended September 30, 2017 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 199,262 $ 22,121 $ 13,596 $ 234,979 Cost of revenue 137,466 23,497 13,935 174,898 Gross profit (loss) 61,796 (1,376 ) (339 ) 60,081 Selling, general and administrative expenses 28,006 4,208 14,408 46,622 Income (loss) from operations 33,790 (5,584 ) (14,747 ) 13,459 Total other income (expense), net 26 — (3,128 ) (3,102 ) Income (loss) before income taxes and $ 33,816 $ (5,584 ) $ (17,875 ) $ 10,357 Three months ended September 30, 2016 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 211,821 $ 21,516 $ 19,408 $ 252,745 Cost of revenue 138,646 16,634 18,722 174,002 Gross profit 73,175 4,882 686 78,743 Selling, general and administrative expenses 29,903 6,961 17,022 53,886 Income (loss) from operations 43,272 (2,079 ) (16,336 ) 24,857 Total other income (expense), net 10 — (6,071 ) (6,061 ) Income (loss) before income taxes and $ 43,282 $ (2,079 ) $ (22,407 ) $ 18,796 Nine months ended September 30, 2017 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 614,180 $ 67,314 $ 44,653 $ 726,147 Cost of revenue 421,942 72,484 43,818 538,244 Gross profit (loss) 192,238 (5,170 ) 835 187,903 Selling, general and administrative expenses 86,493 14,084 46,216 146,793 Income (loss) from operations 105,745 (19,254 ) (45,381 ) 41,110 Total other income (expense), net 138 — (8,985 ) (8,847 ) Income (loss) before income taxes and $ 105,883 $ (19,254 ) $ (54,366 ) $ 32,263 Nine months ended September 30, 2016 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 626,522 $ 70,229 $ 61,925 $ 758,676 Cost of revenue 408,412 47,946 60,878 517,236 Gross profit 218,110 22,283 1,047 241,440 Selling, general and administrative expenses 90,498 18,755 52,456 161,709 Income (loss) from operations 127,612 3,528 (51,409 ) 79,731 Total other income (expense), net 144 — (16,017 ) (15,873 ) Income (loss) before income taxes and $ 127,756 $ 3,528 $ (67,426 ) $ 63,858 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Total assets: September 30, 2017 $ 311,423 $ 63,067 $ 221,911 $ 596,401 December 31, 2016 347,067 47,863 294,282 689,212 Our services are primarily provided to customers located in the United States. Premises and equipment, net consist of the following, by country: (in thousands) September 30, December 31, United States $ 51,900 $ 71,418 India 9,657 14,006 Luxembourg 17,117 14,791 Philippines 1,981 3,027 Uruguay 168 231 Total $ 80,823 $ 103,473

SUBSEQUENT EVENT SUBSEQUENT EVE

SUBSEQUENT EVENT SUBSEQUENT EVENT	9 Months Ended
SUBSEQUENT EVENT SUBSEQUENT EVENT	Sep. 30, 2017
Subsequent Event [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT As discussed in Note 20, as a result of continuing good faith negotiations on a Services Agreement, effective as of October 23, 2017, the Company and NRZ amended the LOI to extend the term of the LOI and Standstill Period to November 30, 2017. This term will be automatically extended until January 12, 2018 if the parties are still negotiating the terms of the Services Agreement in good faith as of November 30, 2017. The parties continue to work toward executing a Services Agreement.

ORGANIZATION AND BASIS OF PRE30

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION (Policies)	Sep. 30, 2017
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. Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. Prior year comparable period segment disclosures have been restated to conform to the current year presentation. See Note 21 for a description of our business segments. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders 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). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests.
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 The Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , became effective on January 1, 2017. 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 requires companies to recognize all award-related excess tax benefits and tax deficiencies in the income statement, classify any excess tax benefits as an operating activity in the statement of cash flows, limit tax withholding up to the maximum statutory tax rates in order to continue to apply equity accounting rules and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in the statement of cash flows. The standard also provides companies with the option of estimating forfeitures or recognizing forfeitures as they occur. In connection with the adoption of this standard, the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. This policy election resulted in a cumulative effect adjustment of $0.9 million to retained earnings and additional paid-in capital as of January 1, 2017 using the modified retrospective transition method. There were no other significant impacts of the adoption of this standard on the Company’s results of operations and financial position. 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 new 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. The Company plans to adopt ASU No. 2014-09 retrospectively with the cumulative effect of initially applying the new standard recognized on the date of the initial application. The new standard will be effective for the Company on January 1, 2018. Based on the Company’s analysis of all sources of revenue from customers for the nine months ended September 30, 2017 , the Company estimates that less than 3% of consolidated revenue, primarily related to software development professional services, would likely be deferred and recognized over future periods under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact 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 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. Based on the Company’s analysis of this guidance, upon adoption of ASU No. 2016-01 the Company will reflect changes in the fair value of its available for sale securities in income. These changes in fair value are currently reflected in other comprehensive income. The Company will adopt ASU No. 2016-01 with a cumulative effect adjustment to the balance sheet as of the beginning of the year of adoption. The Company currently has one investment that will be impacted by this standard, its investment in Altisource Residential Corporation (“RESI”) (see Note 4 ). As of September 30, 2017 and December 31, 2016 , the unrealized loss in accumulated other comprehensive loss related to the RESI investment was $1.5 million and $1.7 million , respectively. 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 of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of its lease arrangements as of September 30, 2017 where the Company is a lessee, less than $25.0 million , primarily related to office leases, would be recorded as right-of-use assets and lease liabilities on the Company’s balance sheet under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. 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 currently does not expect the adoption of this guidance to have a material effect 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 currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This standard will require that companies include restricted cash and restricted cash equivalents in their cash and cash equivalent balances in the statement of cash flows. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. 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 currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows. As of September 30, 2017 and December 31, 2016 , restricted cash was $4.2 million and $4.1 million , respectively. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The FASB issued 13 technical corrections and improvements to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , including providing optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. The amendments in this standard also expand the information that is required to be disclosed when an entity applies one of the optional exemptions. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as described above. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This standard clarifies the definition of a business and provides a screen to determine if a set of inputs, processes and outputs is a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired would not be a business. Under the new guidance, in order to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. In addition, the standard narrows the definition of the term “output” so that it is consistent with how it is described in ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard will simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Current guidance requires that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This standard will require companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This standard will be effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, and will be applied prospectively. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . This standard was issued to clarify the scope of Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets , and to add guidance for partial sales of nonfinancial assets. Subtopic 610-20 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. 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 currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In May 2017, the FASB issued ASU No. 2017-09, C ompensation—Stock Compensation (Topic 718): Scope of Modification Accounting . This standard provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting. This standard will require companies to continue to apply modification accounting, unless the fair value, vesting conditions and classification of an award all do not change as a result of the modification. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this standard better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.

CUSTOMER CONCENTRATION (Tables)

CUSTOMER CONCENTRATION (Tables)	9 Months Ended
CUSTOMER CONCENTRATION (Tables)	Sep. 30, 2017
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 Nine months ended 2017 2016 2017 2016 Mortgage Market 68 % 65 % 68 % 65 % Real Estate Market 1 % — % 1 % — % Other Businesses, Corporate and Eliminations 7 % 25 % 11 % 24 % Consolidated revenue 58 % 56 % 58 % 56 %

ACQUISITION (Tables)

ACQUISITION (Tables)	9 Months Ended
ACQUISITION (Tables)	Sep. 30, 2017
Granite
Acquisitions
Summary of allocation of purchase price	The final allocation of the purchase price is as follows: (in thousands) Accounts receivable, net $ 1,024 Prepaid expenses 22 Other assets 25 Premises and equipment, net 299 Non-compete agreements 100 Trademarks and trade names 100 Customer relationships 3,400 Goodwill 4,827 9,797 Accounts payable and accrued expenses (57 ) Other current liabilities (192 ) Purchase price $ 9,548

ACCOUNTS RECEIVABLE, NET (Table

ACCOUNTS RECEIVABLE, NET (Tables)	9 Months Ended
ACCOUNTS RECEIVABLE, NET (Tables)	Sep. 30, 2017
Receivables [Abstract]
Schedule of accounts receivable, net	Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 48,108 $ 58,392 Unbilled 23,951 39,853 72,059 98,245 Less: Allowance for doubtful accounts (8,882 ) (10,424 ) Total $ 63,177 $ 87,821

PREPAID EXPENSES AND OTHER CU34

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	Sep. 30, 2017
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, Short-term investments in real estate $ 24,644 $ 13,025 Income taxes receivable 13,219 5,186 Prepaid expenses 7,712 6,919 Maintenance agreements, current portion 4,658 6,590 Litigation settlement insurance recovery — 4,000 Other current assets 9,647 6,888 Total $ 59,880 $ 42,608

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	9 Months Ended
PREMISES AND EQUIPMENT, NET (Tables)	Sep. 30, 2017
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 $ 175,512 $ 164,877 Office equipment and other 12,077 20,188 Furniture and fixtures 13,826 13,997 Leasehold improvements 33,570 33,808 234,985 232,870 Less: Accumulated depreciation and amortization (154,162 ) (129,397 ) Total $ 80,823 $ 103,473

GOODWILL AND INTANGIBLE ASSET36

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of changes in goodwill	The following is a summary of goodwill by segment: (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Total Balance as of September 30, 2017 and December 31, 2016 $ 73,259 $ 10,056 $ 2,968 $ 86,283
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 $ 15,354 $ 15,354 $ (8,630 ) $ (7,724 ) $ 6,724 $ 7,630 Customer related intangible assets 10 277,828 277,828 (181,019 ) (156,980 ) 96,809 120,848 Operating agreement 20 35,000 35,000 (13,424 ) (12,104 ) 21,576 22,896 Non-compete agreements 4 1,560 1,560 (799 ) (507 ) 761 1,053 Intellectual property 10 300 300 (108 ) (85 ) 192 215 Other intangible assets 5 3,745 3,745 (1,518 ) (955 ) 2,227 2,790 Total $ 333,787 $ 333,787 $ (205,498 ) $ (178,355 ) $ 128,289 $ 155,432

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	9 Months Ended
OTHER ASSETS (Tables)	Sep. 30, 2017
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 $ 5,164 $ 5,508 Restricted cash 4,200 4,127 Maintenance agreements, non-current portion 503 853 Other 701 767 Total $ 10,568 $ 11,255

ACCOUNTS PAYABLE, ACCRUED EXP38

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2017
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 $ 12,251 $ 8,787 Accrued salaries and benefits 42,312 47,614 Accrued expenses - general 28,789 26,426 Income taxes payable — 308 Total $ 83,352 $ 83,135
Schedule of other current liabilities	Other current liabilities consist of the following: (in thousands) September 30, December 31, Unfunded cash account balances $ 5,054 $ 7,137 Other 5,928 11,924 Total $ 10,982 $ 19,061

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
LONG-TERM DEBT (Tables)	Sep. 30, 2017
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 $ 425,067 $ 479,653 Less: Debt issuance costs, net (3,445 ) (4,486 ) Less: Unamortized discount, net (1,246 ) (1,622 ) Net long-term debt 420,376 473,545 Less: Current portion (5,945 ) (5,945 ) Long-term debt, less current portion $ 414,431 $ 467,600

OTHER NON-CURRENT LIABILITIES (

OTHER NON-CURRENT LIABILITIES (Tables)	9 Months Ended
OTHER NON-CURRENT LIABILITIES (Tables)	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Schedule of other non current liabilities	Other non-current liabilities consist of the following: (in thousands) September 30, December 31, Deferred revenue $ 3,369 $ 5,680 Other non-current liabilities 4,427 4,800 Total $ 7,796 $ 10,480

FAIR VALUE MEASUREMENTS AND F41

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2017
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: September 30, 2017 December 31, 2016 (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 $ 114,123 $ 114,123 $ — $ — $ 149,294 $ 149,294 $ — $ — Restricted cash 4,200 4,200 — — 4,127 4,127 — — Available for sale securities 46,044 46,044 — — 45,754 45,754 — — Liabilities: Acquisition contingent consideration 401 — — 401 376 — — 376 Long-term debt 425,067 — 399,563 — 479,653 — 474,856 —

SHAREHOLDERS_ EQUITY AND SHAR42

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables)	9 Months Ended
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables)	Sep. 30, 2017
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 values as of the grant date: Nine months ended Nine months ended Black-Scholes Binomial Black-Scholes Binomial Risk-free interest rate (%) 1.89 - 2.29 0.77 - 2.38 1.25 - 1.89 0.23 - 1.97 Expected stock price volatility (%) 61.49 - 71.31 66.68 - 71.31 59.75 - 62.14 59.76 - 62.14 Expected dividend yield — — — — Expected option life (in years) 6.00 - 7.50 2.55 - 4.32 6.00 - 6.25 4.54 - 4.88 Fair value $13.57 - $24.80 $11.94 - $24.30 $11.15 - $18.60 $11.06 - $19.27
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) 2017 2016 Weighted average grant date fair value of stock options granted per share $ 20.95 $ 16.85 Intrinsic value of options exercised 2,524 17,280 Grant date fair value of stock options that vested 2,063 2,372
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, 2016 1,996,509 $ 25.98 5.32 $ 15,942 Granted 216,430 34.07 Exercised (192,378 ) 10.83 Forfeited (222,920 ) 31.21 Outstanding at September 30, 2017 1,797,641 27.93 5.14 8,413 Exercisable at September 30, 2017 1,170,148 22.56 3.48 7,723
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, 2016 231,730 Granted 188,622 Issued (49,538 ) Forfeited/canceled (56,575 ) Outstanding at September 30, 2017 314,239

REVENUE REVENUE (Tables)

REVENUE REVENUE (Tables)	9 Months Ended
REVENUE REVENUE (Tables)	Sep. 30, 2017
Revenue [Abstract]
Schedule of revenue	The components of revenue were as follows: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Service revenue $ 224,308 $ 239,782 $ 692,254 $ 715,386 Reimbursable expenses 9,866 12,080 31,786 41,317 Non-controlling interests 805 883 2,107 1,973 Total $ 234,979 $ 252,745 $ 726,147 $ 758,676

COST OF REVENUE (Tables)

COST OF REVENUE (Tables)	9 Months Ended
COST OF REVENUE (Tables)	Sep. 30, 2017
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) 2017 2016 2017 2016 Compensation and benefits $ 60,332 $ 66,357 $ 186,090 $ 201,193 Outside fees and services 83,670 77,445 250,883 222,574 Cost of real estate sold 4,411 — 16,461 — Reimbursable expenses 9,866 12,080 31,786 41,317 Technology and telecommunications 10,389 11,502 32,681 32,145 Depreciation and amortization 6,230 6,618 20,343 20,007 Total $ 174,898 $ 174,002 $ 538,244 $ 517,236

SELLING, GENERAL AND ADMINIST45

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	9 Months Ended
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	Sep. 30, 2017
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) 2017 2016 2017 2016 Compensation and benefits $ 15,068 $ 14,145 $ 43,115 $ 42,460 Occupancy related costs 8,536 8,903 28,347 26,785 Amortization of intangible assets 8,604 11,465 27,143 36,432 Professional services 3,886 4,097 11,983 17,533 Marketing costs 3,992 9,275 11,958 21,438 Depreciation and amortization 2,286 2,557 7,068 7,514 Other 4,250 3,444 17,179 9,547 Total $ 46,622 $ 53,886 $ 146,793 $ 161,709

OTHER INCOME (EXPENSE), NET (Ta

OTHER INCOME (EXPENSE), NET (Tables)	9 Months Ended
OTHER INCOME (EXPENSE), NET (Tables)	Sep. 30, 2017
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) 2017 2016 2017 2016 Gain on early extinguishment of debt $ 1,482 $ — $ 5,419 $ 5,464 Expenses related to the purchase of available for sale securities — — — (3,356 ) Interest income 27 11 169 28 Other, net 988 (120 ) 2,427 472 Total $ 2,497 $ (109 ) $ 8,015 $ 2,608

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2017
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) 2017 2016 2017 2016 Net income attributable to Altisource $ 6,961 $ 10,589 $ 22,541 $ 49,077 Weighted average common shares outstanding, basic 18,023 18,715 18,337 18,669 Dilutive effect of stock options and restricted shares 406 853 517 1,069 Weighted average common shares outstanding, diluted 18,429 19,568 18,854 19,738 Earnings per share: Basic $ 0.39 $ 0.57 $ 1.23 $ 2.63 Diluted $ 0.38 $ 0.54 $ 1.20 $ 2.49

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
SEGMENT REPORTING (Tables)	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of financial information of segments	Financial information for our segments is as follows: Three months ended September 30, 2017 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 199,262 $ 22,121 $ 13,596 $ 234,979 Cost of revenue 137,466 23,497 13,935 174,898 Gross profit (loss) 61,796 (1,376 ) (339 ) 60,081 Selling, general and administrative expenses 28,006 4,208 14,408 46,622 Income (loss) from operations 33,790 (5,584 ) (14,747 ) 13,459 Total other income (expense), net 26 — (3,128 ) (3,102 ) Income (loss) before income taxes and $ 33,816 $ (5,584 ) $ (17,875 ) $ 10,357 Three months ended September 30, 2016 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 211,821 $ 21,516 $ 19,408 $ 252,745 Cost of revenue 138,646 16,634 18,722 174,002 Gross profit 73,175 4,882 686 78,743 Selling, general and administrative expenses 29,903 6,961 17,022 53,886 Income (loss) from operations 43,272 (2,079 ) (16,336 ) 24,857 Total other income (expense), net 10 — (6,071 ) (6,061 ) Income (loss) before income taxes and $ 43,282 $ (2,079 ) $ (22,407 ) $ 18,796 Nine months ended September 30, 2017 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 614,180 $ 67,314 $ 44,653 $ 726,147 Cost of revenue 421,942 72,484 43,818 538,244 Gross profit (loss) 192,238 (5,170 ) 835 187,903 Selling, general and administrative expenses 86,493 14,084 46,216 146,793 Income (loss) from operations 105,745 (19,254 ) (45,381 ) 41,110 Total other income (expense), net 138 — (8,985 ) (8,847 ) Income (loss) before income taxes and $ 105,883 $ (19,254 ) $ (54,366 ) $ 32,263 Nine months ended September 30, 2016 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Revenue $ 626,522 $ 70,229 $ 61,925 $ 758,676 Cost of revenue 408,412 47,946 60,878 517,236 Gross profit 218,110 22,283 1,047 241,440 Selling, general and administrative expenses 90,498 18,755 52,456 161,709 Income (loss) from operations 127,612 3,528 (51,409 ) 79,731 Total other income (expense), net 144 — (16,017 ) (15,873 ) Income (loss) before income taxes and $ 127,756 $ 3,528 $ (67,426 ) $ 63,858 (in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource Total assets: September 30, 2017 $ 311,423 $ 63,067 $ 221,911 $ 596,401 December 31, 2016 347,067 47,863 294,282 689,212
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 $ 51,900 $ 71,418 India 9,657 14,006 Luxembourg 17,117 14,791 Philippines 1,981 3,027 Uruguay 168 231 Total $ 80,823 $ 103,473

ORGANIZATION AND BASIS OF PRE49

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)segment	Jan. 01, 2017USD ($)	Dec. 31, 2016USD ($)
Summary of significant accounting policies
Number of reporting segments \| segment	2
Cumulative effect of an accounting change		$ 0
Estimated revenue to be deferred over future periods, percent (less than)	3.00%
Accumulated other comprehensive loss	$ (1,533)		$ (1,745)
Operating lease, right-of-use, estimated asset and liability (less than)	25,000
Restricted cash	4,200		4,127
Lenders One
Summary of significant accounting policies
Total assets	4,600		3,800
Total liabilities	$ 2,000		$ 1,500
Accounting Standards Update 2016-09 \| Additional paid-in capital
Summary of significant accounting policies
Cumulative effect of an accounting change		932
Accounting Standards Update 2016-09 \| Retained earnings
Summary of significant accounting policies
Cumulative effect of an accounting change		$ (932)

CUSTOMER CONCENTRATION (Details

CUSTOMER CONCENTRATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
CUSTOMER CONCENTRATION (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Ocwen
Concentration Risk
Fair value, accounts receivable	$ 23.7		$ 23.7			$ 26.2
Ocwen \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	58.00%	56.00%	58.00%	56.00%
Revenue	$ 136.4	$ 141.6	$ 422.1	$ 422.2
Highly Correlated - Ocwen \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer			16.00%
Revenue	35.1	$ 48	$ 118	$ 146
NRZ
Concentration Risk
Unpaid principal balance of non-GSE MSRs (approximate)					$ 6,000
NRZ \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Estimated percentage of revenue from largest customer			50.00%
Revenue	0.8
Highly Correlated - NRZ \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Revenue	1
Billed \| Ocwen
Concentration Risk
Fair value, accounts receivable	18.9		$ 18.9			15.8
Unbilled \| Ocwen
Concentration Risk
Fair value, accounts receivable	$ 4.8		$ 4.8			$ 10.4
Mortgage Market \| Ocwen \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	68.00%	65.00%	68.00%	65.00%
Real Estate Market \| Ocwen \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	1.00%	0.00%	1.00%	0.00%
Other Businesses, Corporate and Eliminations \| Ocwen \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	7.00%	25.00%	11.00%	24.00%
NRZ \| Ocwen
Concentration Risk
Unpaid principal balance of non-GSE MSRs (approximate)					$ 110,000

ACQUISITION - Granite (Details)

ACQUISITION - Granite (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Jul. 29, 2016
Acquisitions
Goodwill	$ 86,283	$ 86,283
Granite
Acquisitions
Accounts receivable, net			$ 1,024
Prepaid expenses			22
Other assets			25
Premises and equipment, net			299
Non-compete agreements			100
Trademarks and trade names			100
Customer relationships			3,400
Goodwill			4,827
Total assets			9,797
Accounts payable and accrued expenses			(57)
Other current liabilities			(192)
Purchase price			$ 9,548

AVAILABLE FOR SALE SECURITIES (

AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
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
Available for sale securities	$ 46,044		46,044		$ 45,754
Investment income, dividend	600	$ 0	1,900	1,000
Available for sale securities, investment related expenses	$ 0	$ 0	$ 0	$ 3,400

ACCOUNTS RECEIVABLE, NET (Detai

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, net
Accounts receivable, gross	$ 72,059	$ 98,245
Less: Allowance for doubtful accounts	(8,882)	(10,424)
Total	63,177	87,821
Billed
Accounts receivable, net
Accounts receivable, gross	48,108	58,392
Unbilled
Accounts receivable, net
Accounts receivable, gross	$ 23,951	$ 39,853

PREPAID EXPENSES AND OTHER CU54

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Short-term investments in real estate	$ 24,644	$ 13,025
Income taxes receivable	13,219	5,186
Prepaid expenses	7,712	6,919
Maintenance agreements, current portion	4,658	6,590
Litigation settlement insurance recovery	0	4,000
Other current assets	9,647	6,888
Total	$ 59,880	$ 42,608

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 234,985		$ 234,985		$ 232,870
Less: Accumulated depreciation and amortization	(154,162)		(154,162)		(129,397)
Total	80,823		80,823		103,473
Depreciation and amortization expense	8,500	$ 9,200	27,411	$ 27,521
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	175,512		175,512		164,877
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	12,077		12,077		20,188
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	13,826		13,826		13,997
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 33,570		$ 33,570		$ 33,808

GOODWILL AND INTANGIBLE ASSET56

GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Goodwill	$ 86,283	$ 86,283
Mortgage Market
Goodwill [Roll Forward]
Goodwill	73,259	73,259
Real Estate Market
Goodwill [Roll Forward]
Goodwill	10,056	10,056
Other Businesses, Corporate and Eliminations
Goodwill [Roll Forward]
Goodwill	$ 2,968	$ 2,968

GOODWILL AND INTANGIBLE ASSET57

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible assets, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Intangible Assets, Net
Gross carrying amount	$ 333,787		$ 333,787		$ 333,787
Accumulated amortization	(205,498)		(205,498)		(178,355)
Net book value	128,289		128,289		155,432
Amortization expense for definite lived intangible assets	8,604	$ 11,465	27,143	$ 36,432
2,017	34,600		34,600
2,018	26,200		26,200
2,019	21,800		21,800
2,020	18,200		18,200
2,021	12,300		12,300
Trademarks and trade names
Intangible Assets, Net
Gross carrying amount	15,354		15,354		15,354
Accumulated amortization	(8,630)		(8,630)		(7,724)
Net book value	6,724		6,724		7,630
Customer related intangible assets
Intangible Assets, Net
Gross carrying amount	277,828		277,828		277,828
Accumulated amortization	(181,019)		(181,019)		(156,980)
Net book value	96,809		96,809		120,848
Operating agreement
Intangible Assets, Net
Gross carrying amount	35,000		35,000		35,000
Accumulated amortization	(13,424)		(13,424)		(12,104)
Net book value	21,576		21,576		22,896
Non-compete agreements
Intangible Assets, Net
Gross carrying amount	1,560		1,560		1,560
Accumulated amortization	(799)		(799)		(507)
Net book value	761		761		1,053
Intellectual property
Intangible Assets, Net
Gross carrying amount	300		300		300
Accumulated amortization	(108)		(108)		(85)
Net book value	192		192		215
Other intangible assets
Intangible Assets, Net
Gross carrying amount	3,745		3,745		3,745
Accumulated amortization	(1,518)		(1,518)		(955)
Net book value	$ 2,227		$ 2,227		$ 2,790
Weighted Average \| Trademarks and trade names
Intangible Assets, Net
Weighted average estimated useful life (in years)			13 years
Weighted Average \| Customer related intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)			10 years
Weighted Average \| Operating agreement
Intangible Assets, Net
Weighted average estimated useful life (in years)			20 years
Weighted Average \| Non-compete agreements
Intangible Assets, Net
Weighted average estimated useful life (in years)			4 years
Weighted Average \| Intellectual property
Intangible Assets, Net
Weighted average estimated useful life (in years)			10 years
Weighted Average \| 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, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits	$ 5,164	$ 5,508
Restricted cash	4,200	4,127
Maintenance agreements, non-current portion	503	853
Other	701	767
Total	$ 10,568	$ 11,255

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accounts payable	$ 12,251	$ 8,787
Accrued salaries and benefits	42,312	47,614
Accrued expenses - general	28,789	26,426
Income taxes payable	0	308
Total	$ 83,352	$ 83,135

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other current liabilities
Unfunded cash account balances	$ 5,054	$ 7,137
Other	5,928	11,924
Total	$ 10,982	$ 19,061

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	Aug. 01, 2014USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	May 07, 2013USD ($)
Debt
Senior secured term loan		$ 425,067,000		$ 425,067,000		$ 479,653,000
Less: Debt issuance costs, net		(3,445,000)		(3,445,000)		(4,486,000)
Less: Unamortized discount, net		(1,246,000)		(1,246,000)		(1,622,000)
Net long-term debt		420,376,000		420,376,000		473,545,000
Less: Current portion		(5,945,000)		(5,945,000)		(5,945,000)
Long-term debt, less current portion		414,431,000		414,431,000		467,600,000
Gain on early extinguishment of debt		1,482,000	$ 0	5,419,000	$ 5,464,000
Debt issuance costs, net		3,445,000		3,445,000		4,486,000
Senior secured term loan
Debt
Less: Debt issuance costs, net		(3,400,000)		(3,400,000)		(4,500,000)
Debt instrument accordion feature increase in additional borrowings							$ 200,000,000
Aggregate amount of each consecutive quarterly scheduled principal installment	$ 1,500,000
Mandatory prepayments owed				0
Extinguishment of debt, amount		$ 24,100,000	$ 0	$ 50,100,000	$ 51,000,000
Weighted average discount of par received on early extinguishment of debt		7.50%		12.20%	13.20%
Gain on early extinguishment of debt		$ 1,500,000		$ 5,400,000	$ 5,500,000
Interest rate at the end of the period (as a percent)		4.74%		4.74%
Debt issuance costs, net		$ 3,400,000		$ 3,400,000		4,500,000
Accumulated amortization		$ 6,800,000		$ 6,800,000		$ 5,800,000
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 LIABILITIES62

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Deferred revenue	$ 3,369	$ 5,680
Other non-current liabilities	4,427	4,800
Total	$ 7,796	$ 10,480

FAIR VALUE MEASUREMENTS AND F63

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) shares in Millions	Sep. 30, 2017shares
Residential
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available-for-sale securities, number of shares	4.1

FAIR VALUE MEASUREMENTS AND F64

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Assets, Fair Value Disclosure
Cash and cash equivalents	$ 114,123	$ 149,294	$ 134,948	$ 179,327
Restricted cash	4,200	4,127
Available for sale securities	46,044	45,754
Liabilities, Fair Value Disclosure
Acquisition contingent consideration	401	376
Long-term debt, carrying amount	425,067	479,653
Level 1 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	114,123	149,294
Restricted cash	4,200	4,127
Available for sale securities	46,044	45,754
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	399,563	474,856
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	401	376
Long-term debt, fair value	$ 0	$ 0

SHAREHOLDERS_ EQUITY AND SHAR65

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Stock Repurchase Plan & Share-Based Compensation (Details) $ / shares in Units, $ in Thousands	May 18, 2016$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2017USD ($)component$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2016shares
Stock Repurchase Plan
Capacity available to repurchase common stock under senior secured term loan (in dollars) \| $		$ 403,000		$ 403,000
Share-Based Compensation
Share-based compensation expense (in dollars) \| $		1,400	$ 1,100	3,200	$ 4,700
Estimated unrecognized compensation costs (in dollars) \| $		$ 9,400		$ 9,400
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized				2 years 55 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 (in usd per share) \| $ / shares				$ 20.95	$ 16.85
Intrinsic value of options exercised \| $				$ 2,524	$ 17,280
Grant date fair value of stock options that vested \| $				$ 2,063	$ 2,372
Minimum
Share-Based Compensation
Share based compensation arrangement, estimated forfeiture rate		0.00%		0.00%
Maximum
Share-Based Compensation
Share based compensation arrangement, estimated forfeiture rate		40.00%		40.00%
Employee and non employee stock options \| Service-Based
Share-Based Compensation
Outstanding (in shares)		736,000		736,000
Employee and non employee stock options \| 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 options \| 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 options \| Market-Based
Share-Based Compensation
Outstanding (in shares)		935,000		935,000
Allowable performance period before expiration date				3 years
Number of components of an award \| component				2
Employee and non employee stock options \| Market-Based \| Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Expiration term				10 years
Employee and non employee stock options \| Market-Based \| Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				4 years
Employee and non employee stock options \| 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 options \| 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 options \| Performance-Based
Share-Based Compensation
Outstanding (in shares)		126,000		126,000
Employee and non employee stock options \| Performance-Based \| Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				10 years
Attainment above threshold performance levels, vesting percentage				70.00%
Employee and non employee stock options \| Performance-Based \| Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage				150.00%
Employee and non employee stock options \| Performance-Based, Vesting Period One
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage				33.00%
Employee and non employee stock options \| Performance-Based, Vesting Period Two
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage				33.00%
Stock options
Share-Based Compensation
Outstanding (in shares)		1,797,641		1,797,641		1,996,509
Stock options granted (in shares)				216,430	143,000
Weighted average exercise price of stock options granted (in usd per share) \| $ / shares				$ 34.07	$ 29.22
Restricted Stock Units (RSUs) \| Service-Based \| Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				1 year
Restricted Stock Units (RSUs) \| Service-Based \| Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period				4 years
Restricted Stock Units (RSUs) \| Performance-Based \| Minimum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage				80.00%
Restricted Stock Units (RSUs) \| Performance-Based \| Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage				150.00%
Restricted Stock Units (RSUs) \| Performance-Based, Vesting Period One
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage				33.00%
Restricted Stock Units (RSUs) \| Performance-Based, Vesting Period Two
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage				33.00%
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
Period that shares may be repurchased, from the date of approval	5 years
Remaining number of shares available for repurchase under the plan (in shares)		3,900,000		3,900,000
Share Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased (in shares)		300,000	500,000	1,100,000	1,300,000
Average purchase price per share (in usd per share) \| $ / shares		$ 23.48	$ 28.68	$ 22.48	$ 26.94

SHAREHOLDERS_ EQUITY AND SHAR66

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, 2017	Sep. 30, 2016	Dec. 31, 2016
Stock options
Summary of activity related to our stock
Outstanding at the beginning of the period (in shares)	1,996,509
Granted (in shares)	216,430	143,000
Exercised (in shares)	(192,378)
Forfeited (in shares)	(222,920)
Outstanding at the end of the period (in shares)	1,797,641		1,996,509
Exercisable at the end of the period (in shares)	1,170,148
Weighted average exercise price
Outstanding at the beginning of the period (in usd per share)	$ 25.98
Weighted average exercise price of stock options granted (in usd per share)	34.07	$ 29.22
Exercised (in usd per share)	10.83
Forfeited (in usd per share)	31.21
Outstanding at the end of the period (in usd per share)	27.93		$ 25.98
Exercisable at the end of the period (in usd per share)	$ 22.56
Weighted average contractual term
Weighted average contractual term	5 years 1 month 21 days		5 years 3 months 26 days
Exercisable at the end of the period	3 years 5 months 23 days
Aggregate intrinsic value
Aggregate intrinsic value, beginning balance (in dollars)	$ 15,942
Aggregate intrinsic value, ending balance (in dollars)	8,413		$ 15,942
Exercisable at the end of the period (in dollars)	$ 7,723
Black Scholes \| Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	1.89%	1.25%
Expected stock price volatility (%)	61.49%	59.75%
Expected dividend yield	0.00%	0.00%
Expected option life (in years)	6 years	6 years
Fair value (in usd per share)	$ 13.57	$ 11.15
Black Scholes \| Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	2.29%	1.89%
Expected stock price volatility (%)	71.31%	62.14%
Expected dividend yield	0.00%	0.00%
Expected option life (in years)	7 years 6 months	6 years 3 months
Fair value (in usd per share)	$ 24.80	$ 18.60
Binomial \| Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	0.77%	0.23%
Expected stock price volatility (%)	66.68%	59.76%
Expected dividend yield	0.00%	0.00%
Expected option life (in years)	2 years 6 months 18 days	4 years 6 months 15 days
Fair value (in usd per share)	$ 11.94	$ 11.06
Binomial \| Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	2.38%	1.97%
Expected stock price volatility (%)	71.31%	62.14%
Expected dividend yield	0.00%	0.00%
Expected option life (in years)	4 years 3 months 26 days	4 years 10 months 17 days
Fair value (in usd per share)	$ 24.30	$ 19.27

SHAREHOLDERS_ EQUITY AND SHAR67

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION RSU (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value \| $ / shares	$ 30.94
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares outstanding, beginning of period (in shares)	231,730
RSU granted (in shares)	188,622
RSU issued (in shares)	(49,538)
RSU forfeited (in shares)	(56,575)
Restricted shares outstanding, end of period (in shares)	314,239
Service-Based
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, alternate award vesting period	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares outstanding, end of period (in shares)	272,000
Service-Based \| 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
Service-Based \| 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
Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares outstanding, end of period (in shares)	42,000
Performance-Based \| Minimum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	80.00%
Performance-Based \| Maximum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	150.00%
Performance-Based, Vesting Period One
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 rights, percentage	33.00%
Performance-Based, Vesting Period Two
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 rights, percentage	33.00%

REVENUE REVENUE (Details)

REVENUE REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
REVENUE REVENUE (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of revenue [Line Items]
Revenue	$ 234,979	$ 252,745	$ 726,147	$ 758,676
Service revenue
Schedule of revenue [Line Items]
Revenue	224,308	239,782	692,254	715,386
Reimbursable expenses
Schedule of revenue [Line Items]
Revenue	9,866	12,080	31,786	41,317
Non-controlling interests
Schedule of revenue [Line Items]
Revenue	$ 805	$ 883	$ 2,107	$ 1,973

COST OF REVENUE (Details)

COST OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cost of Revenue [Abstract]
Compensation and benefits	$ 60,332	$ 66,357	$ 186,090	$ 201,193
Outside fees and services	83,670	77,445	250,883	222,574
Cost of real estate sold	4,411	0	16,461	0
Reimbursable expenses	9,866	12,080	31,786	41,317
Technology and telecommunications	10,389	11,502	32,681	32,145
Depreciation and amortization	6,230	6,618	20,343	20,007
Cost of revenue	$ 174,898	$ 174,002	$ 538,244	$ 517,236

SELLING, GENERAL AND ADMINIST70

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Selling, General and Administrative Expense [Abstract]
Compensation and benefits	$ 15,068	$ 14,145	$ 43,115	$ 42,460
Occupancy related costs	8,536	8,903	28,347	26,785
Amortization of intangible assets	8,604	11,465	27,143	36,432
Professional services	3,886	4,097	11,983	17,533
Marketing costs	3,992	9,275	11,958	21,438
Depreciation and amortization	2,286	2,557	7,068	7,514
Other	4,250	3,444	17,179	9,547
Total	$ 46,622	$ 53,886	$ 146,793	$ 161,709

OTHER INCOME (EXPENSE), NET (De

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Gain on early extinguishment of debt	$ 1,482	$ 0	$ 5,419	$ 5,464
Expenses related to the purchase of available for sale securities	0	0	0	(3,356)
Interest income	27	11	169	28
Other, net	988	(120)	2,427	472
Total	$ 2,497	$ (109)	$ 8,015	$ 2,608

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income attributable to Altisource	$ 6,961	$ 10,589	$ 22,541	$ 49,077
Weighted average common shares outstanding, basic (in shares)	18,023	18,715	18,337	18,669
Dilutive effect of stock options (in shares)	406	853	517	1,069
Weighted average common shares outstanding, diluted (in shares)	18,429	19,568	18,854	19,738
Earnings per share:
Basic (in usd per share)	$ 0.39	$ 0.57	$ 1.23	$ 2.63
Diluted (in usd per share)	$ 0.38	$ 0.54	$ 1.20	$ 2.49
Service Based Options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	900	400	500	400
Performance Based Options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	400	400	300	400

COMMITMENTS, CONTINGENCIES AN73

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Concentration Risk
Revenues	$ 234,979	$ 252,745	$ 726,147	$ 758,676
Escrow and Trust Balances
Amounts held in escrow and trust accounts	39,200		$ 39,200			$ 64,100
NRZ
Concentration Risk
Unpaid principal balance of non-GSE MSRs (approximate)					$ 6,000,000
NRZ \| Customer Concentration Risk \| Sales Revenue, Segment
Concentration Risk
Estimated percentage of revenue from largest customer			50.00%
Service revenue
Concentration Risk
Revenues	224,308	239,782	$ 692,254	715,386
REALServicing \| Service revenue \| Ocwen
Concentration Risk
Revenues	$ 6,700	$ 8,200	$ 20,100	$ 25,700
NRZ \| Ocwen
Concentration Risk
Unpaid principal balance of non-GSE MSRs (approximate)					$ 110,000,000
HLSS [Member] \| NRZ
Concentration Risk
Non-government-sponsored enterprise servicing rights (approximate)					78.00%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of reporting segments \| segment			2
SEGMENT REPORTING
Revenue	$ 234,979	$ 252,745	$ 726,147	$ 758,676
Cost of revenue	174,898	174,002	538,244	517,236
Gross profit (loss)	60,081	78,743	187,903	241,440
Selling, general and administrative expenses	46,622	53,886	146,793	161,709
Income (loss) from operations	13,459	24,857	41,110	79,731
Total other income (expense), net	(3,102)	(6,061)	(8,847)	(15,873)
Income (loss) before income taxes and non-controlling interests	10,357	18,796	32,263	63,858
Total assets:
Total assets	596,401		596,401		$ 689,212
Operating Segment \| Mortgage Market
SEGMENT REPORTING
Revenue	199,262	211,821	614,180	626,522
Cost of revenue	137,466	138,646	421,942	408,412
Gross profit (loss)	61,796	73,175	192,238	218,110
Selling, general and administrative expenses	28,006	29,903	86,493	90,498
Income (loss) from operations	33,790	43,272	105,745	127,612
Total other income (expense), net	26	10	138	144
Income (loss) before income taxes and non-controlling interests	33,816	43,282	105,883	127,756
Total assets:
Total assets	311,423		311,423		347,067
Operating Segment \| Real Estate Market
SEGMENT REPORTING
Revenue	22,121	21,516	67,314	70,229
Cost of revenue	23,497	16,634	72,484	47,946
Gross profit (loss)	(1,376)	4,882	(5,170)	22,283
Selling, general and administrative expenses	4,208	6,961	14,084	18,755
Income (loss) from operations	(5,584)	(2,079)	(19,254)	3,528
Total other income (expense), net	0	0	0	0
Income (loss) before income taxes and non-controlling interests	(5,584)	(2,079)	(19,254)	3,528
Total assets:
Total assets	63,067		63,067		47,863
Other Businesses, Corporate and Eliminations
SEGMENT REPORTING
Revenue	13,596	19,408	44,653	61,925
Cost of revenue	13,935	18,722	43,818	60,878
Gross profit (loss)	(339)	686	835	1,047
Selling, general and administrative expenses	14,408	17,022	46,216	52,456
Income (loss) from operations	(14,747)	(16,336)	(45,381)	(51,409)
Total other income (expense), net	(3,128)	(6,071)	(8,985)	(16,017)
Income (loss) before income taxes and non-controlling interests	(17,875)	$ (22,407)	(54,366)	$ (67,426)
Total assets:
Total assets	$ 221,911		$ 221,911		$ 294,282

PREMISES AND EQUIPMENT, NET per

PREMISES AND EQUIPMENT, NET per country (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Premises & equipment, net
Premises and equipment, net	$ 80,823	$ 103,473
United States
Premises & equipment, net
Premises and equipment, net	51,900	71,418
India
Premises & equipment, net
Premises and equipment, net	9,657	14,006
Luxembourg
Premises & equipment, net
Premises and equipment, net	17,117	14,791
Philippines
Premises & equipment, net
Premises and equipment, net	1,981	3,027
Uruguay
Premises & equipment, net
Premises and equipment, net	$ 168	$ 231