Altisource Portfolio Solutions (ASPS) 10-Q 10 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 04, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-34354
Entity Registrant Name	ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Entity Incorporation, State or Country Code	N4
Entity Tax Identification Number	98-0554932
Entity Address, Address Line One	40, avenue Monterey
Entity Address, Postal Zip Code	L-2163
Entity Address, City or Town	Luxembourg
Entity Address, Country	LU
City Area Code	352
Local Phone Number	27 61 49 00
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	ASPS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,807,497
Entity Central Index Key	0001462418
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 41,335	$ 58,263
Accounts receivable, net	19,956	22,413
Prepaid expenses and other current assets	20,965	19,479
Total current assets	82,256	100,155
Premises and equipment, net	11,092	11,894
Right-of-use assets under operating leases	16,301	18,213
Goodwill	73,849	73,849
Intangible assets, net	43,727	46,326
Deferred tax assets, net	5,385	5,398
Other assets	7,091	9,850
Total assets	239,701	265,685
Current liabilities:
Accounts payable and accrued expenses	56,712	56,779
Deferred revenue	4,595	5,461
Other current liabilities	7,536	9,305
Total current liabilities	68,843	71,545
Long-term debt	243,039	242,656
Deferred tax liabilities, net	9,423	8,801
Other non-current liabilities	23,654	25,239
Commitments, contingencies and regulatory matters (Note 23)
Equity (deficit):
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 15,795 outstanding as of March 31, 2021; 15,664 outstanding as of December 31, 2020)	25,413	25,413
Additional paid-in capital	142,911	141,473
Retained earnings	158,890	190,383
Treasury stock, at cost (9,618 shares as of March 31, 2021 and 9,749 shares as of December 31, 2020)	(432,373)	(441,034)
Altisource deficit	(105,159)	(83,765)
Non-controlling interests	(99)	1,209
Total deficit	(105,258)	(82,556)
Total liabilities and deficit	$ 239,701	$ 265,685

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	25,413,000	25,413,000
Common stock, shares outstanding (in shares)	15,795,000	15,664,000
Treasury shares (in shares)	9,618,000	9,749,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 50,465	$ 121,444
Cost of revenue	50,158	94,581
Gross profit	307	26,863
Operating expenses:
Selling, general and administrative expenses	18,886	28,093
Restructuring charges	0	2,925
Loss from operations	(18,579)	(4,155)
Other income (expense), net
Interest expense	(3,442)	(4,716)
Unrealized loss on investment in equity securities	0	(1,347)
Other income (expense), net	949	1,094
Total other income (expense), net	(2,493)	(4,969)
Loss before income taxes and non-controlling interests	(21,072)	(9,124)
Income tax provision	(843)	(2,421)
Net loss	(21,915)	(11,545)
Net income attributable to non-controlling interests	(87)	(105)
Net loss attributable to Altisource	$ (22,002)	$ (11,650)
Loss per share:
Basic (in usd per share)	$ (1.40)	$ (0.75)
Diluted (in usd per share)	$ (1.40)	$ (0.75)
Weighted average shares outstanding:
Basic (in shares)	15,717	15,497
Diluted (in shares)	15,717	15,497
Comprehensive loss:
Comprehensive loss, net of tax	$ (21,915)	$ (11,545)
Comprehensive income attributable to non-controlling interests	(87)	(105)
Comprehensive loss attributable to Altisource	$ (22,002)	$ (11,650)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Treasury stock, at cost	Non-controlling interests
Balance (in shares) at Dec. 31, 2019		25,413
Balance at Dec. 31, 2019	$ (21,357)	$ 25,413	$ 133,669	$ 272,026	$ (453,934)	$ 1,469
Increase (Decrease) in Equity
Net loss	(11,545)			(11,650)		105
Distributions to non-controlling interest holders	(311)					(311)
Share-based compensation expense	2,894		2,894
Issuance of restricted share units and restricted shares	0			(4,796)	4,796
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances	(1,205)			(3,114)	1,909
Balance (in shares) at Mar. 31, 2020		25,413
Balance at Mar. 31, 2020	(31,524)	$ 25,413	136,563	252,466	(447,229)	1,263
Balance (in shares) at Dec. 31, 2020		25,413
Balance at Dec. 31, 2020	(82,556)	$ 25,413	141,473	190,383	(441,034)	1,209
Increase (Decrease) in Equity
Net loss	(21,915)			(22,002)		87
Distributions to non-controlling interest holders	(1,395)					(1,395)
Share-based compensation expense	1,438		1,438
Issuance of restricted share units and restricted shares	0			(5,905)	5,905
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances	(830)			(3,586)	2,756
Balance (in shares) at Mar. 31, 2021		25,413
Balance at Mar. 31, 2021	$ (105,258)	$ 25,413	$ 142,911	$ 158,890	$ (432,373)	$ (99)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (21,915)	$ (11,545)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,184	4,117
Amortization of right-of-use assets under operating leases	1,927	2,706
Amortization of intangible assets	2,599	4,209
Unrealized loss on investment in equity securities	0	1,347
Share-based compensation expense	1,438	2,894
Bad debt expense	217	342	$ 2,229
Amortization of debt discount	168	167
Amortization of debt issuance costs	215	184
Deferred income taxes	562	126
Loss on disposal of fixed assets	7	39
Changes in operating assets and liabilities:
Accounts receivable	2,240	(303)
Prepaid expenses and other current assets	(1,486)	(36)
Other assets	258	612
Accounts payable and accrued expenses	11	(3,116)
Current and non-current operating lease liabilities	(1,941)	(3,354)
Other current and non-current liabilities	(2,294)	(37)
Net cash used in operating activities	(16,810)	(1,648)
Cash flows from investing activities:
Additions to premises and equipment	(467)	(511)
Proceeds from the sale of business	3,000	0
Net cash provided by (used in) investing activities	2,533	(511)
Cash flows from financing activities:
Distributions to non-controlling interests	(1,395)	(311)
Payments of tax withholding on issuance of restricted share units and restricted shares	(830)	(1,205)
Net cash used in financing activities	(2,225)	(1,516)
Net decrease in cash, cash equivalents and restricted cash	(16,502)	(3,675)
Cash, cash equivalents and restricted cash at the beginning of the period	62,096	86,583	86,583
Cash, cash equivalents and restricted cash at the end of the period	45,594	82,908	$ 62,096
Supplemental cash flow information:
Interest paid	3,090	4,415
Income taxes paid (received), net	902	(1,720)
Acquisition of right-of-use assets with operating lease liabilities	15	705
Reduction of right-of-use assets from operating lease modifications or reassessments	0	(1,273)
Non-cash investing and financing activities:
Net (decrease) increase in payables for purchases of premises and equipment	$ (78)	$ 103

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2021
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 markets we serve. We are publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” We are organized under the laws of the Grand Duchy of Luxembourg. 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. 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 March 31, 2021, Lenders One had total assets of $1.9 million and total liabilities of $0.7 million. As of December 31, 2020, Lenders One had total assets of $2.3 million and total liabilities of $0.1 million. In 2019, Altisource created Pointillist, Inc. (“Pointillist”) and contributed the Pointillist ® customer journey analytics business and $8.5 million to it. Pointillist is owned by Altisource and management of Pointillist. Management of Pointillist owns a non-controlling interest representing 12.1% of the outstanding equity of Pointillist. Additional equity shares of Pointillist are available for issuance to management and board members of Pointillist. Altisource has no ongoing obligation to provide future funding to Pointillist. Pointillist is presented in the accompanying condensed consolidated financial statements on a consolidated basis and the portion of Pointillist owned by Pointillist management is reported as non-controlling interests. 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, 2020, as filed with the SEC on March 11, 2021. 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 Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is part of the FASB’s initiative to reduce complexity in accounting standards by instituting several simplifying provisions and removing several exceptions pertaining to income tax accounting. This standard is effective for annual periods beginning after December 15, 2020, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company adopted this standard effective January 1, 2021 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s condensed consolidated financial statements. Future Adoption of New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . This standard applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR. This standard is effective from the period from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a topic or an industry subtopic, the standard must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. The Company is currently evaluating the impact this guidance may have on its condensed consolidated financial statements.

CUSTOMER CONCENTRATION

CUSTOMER CONCENTRATION	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATION	CUSTOMER CONCENTRATION Ocwen Ocwen Financial Corporation (together with its subsidiaries, “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of MSRs owned by others. During the three months ended March 31, 2021, Ocwen was our largest customer, accounting for 34% of our total revenue. Ocwen purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Ocwen Services Agreements”) with terms extending through August 2025. Certain of the Ocwen Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced and subserviced by Ocwen when Ocwen engages us as the service provider, and revenue earned directly from Ocwen, pursuant to the Ocwen Services Agreements. For the three months ended March 31, 2021 and 2020, we recognized revenue from Ocwen of $16.9 million and $74.2 million, respectively. Revenue from Ocwen as a percentage of consolidated revenue was 34% and 61% for the three months ended March 31, 2021 and 2020, respectively. We earn additional revenue related to the portfolios serviced and subserviced by Ocwen when a party other than Ocwen or the MSR owner selects Altisource as the service provider. For the three months ended March 31, 2021 and 2020, we recognized revenue of $2.6 million and $7.8 million, respectively, related to the portfolios serviced by Ocwen when a party other than Ocwen or the MSR owner selected Altisource as the service provider. These amounts are not included in deriving revenue from Ocwen and revenue from Ocwen as a percentage of revenue discussed above. During the second quarter of 2020, Ocwen informed us that an MSR investor instructed Ocwen to use a field services provider other than Altisource on properties associated with certain MSRs. Based upon the impacted portfolios to date and the designated service provider, Altisource believes that Ocwen received these directions from New Residential Investment Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “NRZ”). We believe Ocwen commenced using another field services provider for these properties in July 2020 and continued to transition services during the third quarter of 2020. We believe that the transition to the replacement field service provider was largely completed as of September 30, 2020. We estimate that $0.2 million and $29.3 million of service revenue from Ocwen for the three months ended March 31, 2021 and 2020, respectively, was derived from Field Services referrals from the NRZ portfolios. Ocwen also communicated to Altisource in the fourth quarter of 2020 that the same investor instructed Ocwen to use a provider for default valuations and certain default title services other than Altisource on properties associated with such certain MSRs and commenced moving these referrals to other service providers in the fourth quarter of 2020. We anticipate that the transition of such default valuations and title services will continue during the course of 2021. We estimate that $1.0 million and $8.0 million of service revenue from Ocwen for the three months ended March 31, 2021 and 2020, respectively, was derived from default valuations and title services referrals from the NRZ portfolios. To address the reduction in revenue, Altisource is undertaking several measures to further reduce its cost structure and strengthen its operations. In addition, we entered into an agreement with Ocwen on May 5, 2021 (the “Agreement”) pursuant to which the term of the services agreements between us and Ocwen were extended from August 2025 through August 2030 and the scope of solutions we provide to Ocwen were expanded to, among other things, include the opportunity to provide field services, first and second chance foreclosure auctions, and title services on Ocwen’s Federal Housing Administration (“F.H.A.”), Veterans Affairs (“V.A.”) and United States Department of Agriculture (“U.S.D.A.”) loans, subject to a process to confirm Altisource’s ability to meet reasonable performance requirements. The Agreement established a framework for us to expand the foreclosure trustee solutions we provide to Ocwen in additional states, and, as mutually agreed upon by the parties, to deliver reverse mortgage related solutions to Ocwen, subject to negotiation of appropriate statements of work or other agreements, a process to confirm Altisource’s ability to meet reasonable performance requirements, and technical integrations, as may be applicable. The Agreement further resolved the contractual dispute between the parties related to Ocwen’s transfer to NRZ the rights to designate service providers other than Altisource, including mutual releases with respect to such dispute. The Agreement also addressed Ocwen’s rights in the event of certain change of control or sale of a business transactions by us on or after September 1, 2028. As of March 31, 2021, accounts receivable from Ocwen totaled $4.1 million, $3.1 million of which was billed and $1.0 million of which was unbilled. As of December 31, 2020, accounts receivable from Ocwen totaled $5.9 million, $5.1 million of which was billed and $0.8 million of which was unbilled. NRZ NRZ is a real estate investment trust that invests in and manages investments primarily related to residential real estate, including MSRs and excess MSRs. Ocwen has disclosed that NRZ is its largest client. As of March 31, 2021, approximately 36% of loans serviced and subserviced by Ocwen (measured in unpaid principal balance (“UPB”)) were related to NRZ MSRs or rights to MSRs. In July 2017 and January 2018, Ocwen and NRZ entered into a series of agreements pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s legal title to certain of its MSRs (the “Subject MSRs”) and under which Ocwen will subservice mortgage loans underlying the MSRs for an initial term of five years, subject to early termination rights. On August 28, 2017, Altisource, through its licensed subsidiaries, entered into a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with NRZ which extends through August 2025. Under this agreement and related amendments, Altisource remains the exclusive provider of brokerage services for real estate owned (“REO”) associated with the Subject MSRs, irrespective of the subservicer, subject to certain limitations. NRZ’s brokerage subsidiary receives a cooperative brokerage commission on the sale of REO properties from these portfolios subject to certain exceptions. The Brokerage Agreement may be terminated by NRZ upon the occurrence of certain specified events. Termination events include, but are not limited to, a breach of the terms of the Brokerage Agreement (including, without limitation, the failure to meet performance standards and non-compliance with law in a material respect), the failure to maintain licenses which failure materially prevents performance of the contract, regulatory allegations of non-compliance resulting in an adversarial proceeding against NRZ, voluntary or involuntary bankruptcy, appointment of a receiver, disclosure in a Form 10-K or Form 10-Q that there is significant uncertainty about Altisource’s ability to continue as a going concern, failure to maintain a specified level of cash and an unapproved change of control. For the three months ended March 31, 2021 and 2020, we recognized revenue from NRZ of $0.8 million and $2.7 million, respectively, under the Brokerage Agreement. For the three months ended March 31, 2021 and 2020, we recognized additional revenue of $3.4 million and $12.0 million, respectively, relating to the Subject MSRs when a party other than NRZ selects Altisource as the service provider.

SALE OF A BUSINESS

SALE OF A BUSINESS	3 Months Ended
	Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
SALE OF A BUSINESS	SALE OF A BUSINESSIn August 2018, Altisource entered into an amendment to its agreements with Front Yard Residential Corporation (“RESI”) to sell Altisource’s rental property management business to RESI and permit RESI to internalize certain services that had been provided by Altisource. The proceeds from the transaction totaled $18.0 million, payable in two installments. The first installment of $15.0 million was received on the closing date of August 8, 2018. The second installment of $3.0 million was to be received on the earlier of a RESI change of control or on August 8, 2023. On October 19, 2020, RESI announced that it had entered into a definitive merger agreement to sell RESI. The merger closed on January 11, 2021 and the Company subsequently received the $3.0 million payment. The present value of the second installment is included in other assets in the accompanying condensed consolidated balance sheets at a discounted value of $2.5 million as of December 31, 2020 (no comparative amount as of March 31, 2021).

INVESTMENT IN EQUITY SECURITIES

INVESTMENT IN EQUITY SECURITIES	3 Months Ended
	Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]
INVESTMENT IN EQUITY SECURITIES	INVESTMENT IN EQUITY SECURITIESDuring 2016, we purchased 4.1 million shares of RESI common stock. This investment is reflected in the accompanying condensed consolidated balance sheets at fair value and changes in fair value are included in other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss. As of March 31, 2021 and December 31, 2020, we held no shares of RESI common stock. During the three months ended March 31, 2020, we recognized an unrealized loss from the change in fair value of $(1.3) million (no comparative amount for the three months ended March 31, 2021). During the three months ended March 31, 2020, we earned dividends of $0.5 million (no comparative amount for the three months ended March 31, 2021), related to this investment.

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET	3 Months Ended
	Mar. 31, 2021
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: (in thousands) March 31, December 31, Billed $ 17,489 $ 19,703 Unbilled 8,215 8,291 25,704 27,994 Less: Allowance for credit losses (5,748) (5,581) Total $ 19,956 $ 22,413 Unbilled accounts receivable consist primarily of certain real estate asset management, REO sales, title and closing services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, and foreclosure trustee 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 accounts receivable that are earned during a month and billed in the following month. We are exposed to credit losses through our sales of products and services to our customers which are recorded as accounts receivable, net on the Company’s condensed consolidated financial statements. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. Estimated credit losses are written off in the period in which the financial asset is determined to be no longer collectible. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to our allowance for credit losses. Changes in allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: March 31, 2021 $ 5,581 $ 217 $ 50 $ 5,748 December 31, 2020 4,472 2,229 1,120 5,581 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Mar. 31, 2021
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) March 31, December 31, Income taxes receivable $ 8,509 $ 7,053 Maintenance agreements, current portion 2,205 2,513 Prepaid expenses 5,149 4,812 Other current assets 5,102 5,101 Total $ 20,965 $ 19,479

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT, NET	PREMISES AND EQUIPMENT, NET Premises and equipment, net consists of the following: (in thousands) March 31, December 31, Computer hardware and software $ 52,289 $ 52,837 Leasehold improvements 14,835 14,792 Furniture and fixtures 5,560 5,882 Office equipment and other 1,694 1,817 74,378 75,328 Less: Accumulated depreciation and amortization (63,286) (63,434) Total $ 11,092 $ 11,894 Depreciation and amortization expense amounted to $1.2 million and $4.1 million for the three months ended March 31, 2021 and 2020, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive loss. Premises and equipment, net consist of the following, by country: (in thousands) March 31, December 31, United States $ 5,084 $ 5,530 Luxembourg 5,054 5,451 India 875 822 Uruguay 79 91 Total $ 11,092 $ 11,894

RIGHT-OF-USE ASSETS UNDER OPERA

RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET	RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET Right-of-use assets under operating leases, net consists of the following: (in thousands) March 31, December 31, Right-of-use assets under operating leases $ 30,111 $ 31,932 Less: Accumulated amortization (13,810) (13,719) Total $ 16,301 $ 18,213 Amortization of operating leases was $1.9 million and $2.7 million for the three months ended March 31, 2021 and 2020, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive loss.

GOODWILL AND INTANGIBLE ASSETS,

GOODWILL AND INTANGIBLE ASSETS, NET	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS, NET	GOODWILL AND INTANGIBLE ASSETS, NET Goodwill Goodwill consists of the following: (in thousands) Total Balance as of March 31, 2021 and December 31, 2020 $ 73,849 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) March 31, December 31, March 31, December 31, March 31, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 214,973 $ 214,973 $ (189,981) $ (187,923) $ 24,992 $ 27,050 Operating agreement 20 35,000 35,000 (19,564) (19,126) 15,436 15,874 Trademarks and trade names 16 9,709 9,709 (6,410) (6,307) 3,299 3,402 Non-compete agreements — — 1,230 — (1,230) — — Other intangible assets — — 1,800 — (1,800) — — Total $ 259,682 $ 262,712 $ (215,955) $ (216,386) $ 43,727 $ 46,326 Amortization expense for definite lived intangible assets was $2.6 million and $4.2 million for the three months ended March 31, 2021 and 2020, respectively . Expected annual definite lived intangible asset amortization expense for 2021 through 2025 is $9.5 million, $5.1 million, $5.1 million, $5.1 million and $5.1 million, respectively.

OTHER ASSETS

OTHER ASSETS	3 Months Ended
	Mar. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER ASSETS	OTHER ASSETS Other assets consist of the following: (in thousands) March 31, December 31, Restricted cash $ 4,259 $ 3,833 Security deposits 1,770 2,416 Other 1,062 3,601 Total $ 7,091 $ 9,850

ACCOUNTS PAYABLE, ACCRUED EXPEN

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2021
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) March 31, December 31, Accounts payable $ 18,903 $ 16,797 Accrued expenses - general 20,608 24,422 Accrued salaries and benefits 12,841 11,226 Income taxes payable 4,360 4,334 Total $ 56,712 $ 56,779 Other current liabilities consist of the following: (in thousands) March 31, December 31, Operating lease liabilities $ 7,118 $ 7,609 Other 418 1,696 Total $ 7,536 $ 9,305

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consists of the following: (in thousands) March 31, December 31, Senior secured term loans $ 247,204 $ 247,204 Less: Debt issuance costs, net (2,174) (2,389) Less: Unamortized discount, net (1,991) (2,159) Long-term debt $ 243,039 $ 242,656 Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l. entered into a credit agreement (the “Credit Agreement”) in April 2018 with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders. Under the Credit Agreement, Altisource borrowed $412.0 million in the form of Term B Loans and obtained a $15.0 million revolving credit facility. The Term B Loans mature in April 2024 and the revolving credit facility matures in April 2023. Altisource Portfolio Solutions S.A. and certain subsidiaries are guarantors of the term loan and the revolving credit facility (collectively, the “Guarantors”). There are no mandatory repayments of the Term B Loans due until April 2024, when the balance is due at maturity, except as otherwise described herein. All amounts outstanding under the Term B Loans will become due on the earlier of (i) April 3, 2024, 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 (as defined in the Credit Agreement; other capitalized terms, unless defined herein, are defined in the Credit Agreement) or as otherwise provided in the Credit Agreement upon the occurrence of any event of default. In addition to the scheduled principal payments, subject to certain exceptions, the Term B Loans are subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as from a percentage of Consolidated Excess Cash Flow if our leverage ratio as of each year-end computation date is greater than 3.00 to 1.00, as calculated in accordance with the provisions of the Credit Agreement (the percentage increases if our leverage ratio exceeds 3.50 to 1.00). Our leverage ratio exceeded 3.50 to 1.00 for the twelve months ended March 31, 2021. The Company did not generate any Consolidated Excess Cash Flow in first quarter of 2021. Altisource may incur incremental indebtedness under the Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $125.0 million, subject to certain conditions set forth in the Credit Agreement, including a sublimit of $80.0 million with respect to incremental revolving credit commitments and, after giving effect to the incremental borrowing, the Company’s leverage ratio does not exceed 3.00 to 1.00. Our leverage ratio exceeded 3.00 to 1.00 for the twelve months ended March 31, 2021. The lenders have no obligation to provide any incremental indebtedness. The Term B Loans bear interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate term loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted Eurodollar Rate for a three month interest period and (y) 1.00% plus (ii) 4.00%. Base Rate term 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) 3.00%. The interest rate as of March 31, 2021 was 5.00%. Loans under the revolving credit facility bear interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate revolving loans bear interest at a rate per annum equal to the sum of (i) the Adjusted Eurodollar Rate for a three month interest period plus (ii) 4.00%. Base Rate revolving loans bear interest at a rate per annum equal to the sum of (i) the Base Rate plus (ii) 3.00%. The unused commitment fee is 0.50%. Borrowings under the revolving credit facility are not permitted if our leverage ratio exceeds 3.50 to 1.00. Our leverage ratio exceeded 3.50 to 1.00 for the twelve months ended March 31, 2021. There were no borrowings outstanding under the revolving credit facility as of March 31, 2021. The payment of all amounts owing by Altisource under the Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions. The Credit Agreement includes covenants that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur indebtedness; incur liens on our assets; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; make investments; dispose of equity interests of any Material Subsidiaries; engage in a line of business substantially different than existing businesses and businesses reasonably related, complimentary or ancillary thereto; 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; and to the extent any Revolving Credit Loans are outstanding on the last day of a fiscal quarter, permit the Total Leverage Ratio to be greater than 3.50:1.00 as of the last day of such fiscal quarter, subject to a customary cure provision (the “Revolving Financial Covenant”). The Credit 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 Credit Agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described in the Credit Agreement, (iv) a breach of the Revolving Financial Covenant, subject to a customary cure provision and not an Event of Default with respect to the Term Loans unless and until the Required Revolving Lenders accelerate the Revolving Credit Loans, (v) failure to pay principal or interest on any other debt that equals or exceeds $40.0 million when due, (vi) 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, (vii) occurrence of a Change of Control, (viii) bankruptcy and insolvency events, (ix) 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, (x) the occurrence of certain ERISA events and (xi) 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 Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. As of March 31, 2021, debt issuance costs were $2.2 million, net of $2.3 million of accumulated amortization. As of December 31, 2020, debt issuance costs were $2.4 million, net of $2.2 million of accumulated amortization.

OTHER NON-CURRENT LIABILITIES

OTHER NON-CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2021
Other Liabilities Disclosure [Abstract]
OTHER NON-CURRENT LIABILITIES	OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following: (in thousands) March 31, December 31, Operating lease liabilities $ 10,846 $ 12,281 Income tax liabilities 12,392 12,414 Deferred revenue 373 504 Other non-current liabilities 43 40 Total $ 23,654 $ 25,239

FAIR VALUE MEASUREMENTS AND FIN

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 and December 31, 2020. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2021 December 31, 2020 (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 $ 41,335 $ 41,335 $ — $ — $ 58,263 $ 58,263 $ — $ — Restricted cash 4,259 4,259 — — 3,833 3,833 — — Long-term receivable — — — — 2,531 — — 2,531 Liabilities: Senior secured term loan 247,204 — 210,124 — 247,204 — 201,472 — 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. The fair value of our senior secured term loan 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 connection with the sale of the rental property management business in August 2018, Altisource was to receive $3.0 million on the earlier of a RESI change of control or on August 8, 2023. On October 19, 2020, RESI announced that it had entered into a definitive merger agreement to sell RESI. The merger closed on January 11, 2021 and the Company subsequently received the $3.0 million payment (See Note 3 for additional information). We measure long-term receivables without a stated interest rate based on the present value of the future payments. 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 derived 34% of its revenue from Ocwen for the three months ended March 31, 2021 (see Note 2 for additional information on

SHAREHOLDERS_ EQUITY AND SHARE-

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION	SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Share Repurchase Program On May 15, 2018, our shareholders approved the renewal and replacement of the share repurchase program previously approved by the shareholders on May 17, 2017. Under the program, we are authorized to purchase up to 4.3 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. As of March 31, 2021, approximately 2.4 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the three months ended March 31, 2021 and 2020. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of March 31, 2021, we can repurchase up to approximately $86 million of our common stock under Luxembourg law. Our Credit Agreement also limits the amount we can spend on share repurchases, which limit was approximately $398 million as of March 31, 2021, and may prevent repurchases in certain circumstances, including if our leverage ratio exceeds 3.50 to 1.00. Our leverage ratio exceeded 3.50 to 1.00 for the twelve months ended March 31, 2021. Share-Based Compensation We issue share-based awards in the form of stock options, restricted shares and restricted share units for certain employees, officers and directors. We recognized share-based compensation expense of $1.4 million and $2.9 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, estimated unrecognized compensation costs related to share-based awards amounted to $7.7 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 1.60 years. Stock Options Stock option grants are composed of a combination of service-based, market-based and performance-based options. Service-Based Options. These options generally vest over three 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 options vest in three Performance-Based Options. These option grants generally will vest if certain specific financial measures are achieved; one-fourth vests on each anniversary of the grant date. For certain other financial measures, options cliff-vest upon the achievement of the specific performance during the period from 2019 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 50% to 200% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the options are canceled. The options generally expire on the earlier of ten years after the date of grant or following termination of service. There were 446 thousand performance-based options outstanding as of March 31, 2021. There were no stock options granted during the three months ended March 31, 2021 and 2020. The fair values of the service-based options and performance-based options are determined using the Black-Scholes option pricing model and the fair values of the market-based options were determined using a lattice (binomial) model. We determined the expected option life of all service-based stock option grants using the simplified method, determined based on the graded vesting term plus the contractual term of the options, divided by two. 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 grant date fair value of stock options that vested during the periods presented: Three months ended March 31, (in thousands, except per share amounts) 2021 2020 Grant date fair value of stock options that vested 1,186 1,650 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 as of December 31, 2020 899,914 $ 32.47 5.63 $ — Forfeited/expired (6,762) 29.10 Outstanding as of March 31, 2021 893,152 32.49 5.40 — Exercisable as of March 31, 2021 627,389 28.23 5.41 — Other Share-Based Awards The Company’s other share-based and similar types of awards are composed of restricted shares and restricted share units. The restricted shares and restricted share units are composed of a combination of service-based awards, performance-based awards and market-based awards. Service-Based Awards. These awards generally vest over two Performance-Based Awards. These awards generally vest if certain specific financial measures are achieved; generally one-third vests on each anniversary of the grant date or cliff-vest on the third anniversary of the grant date. The number of performance-based restricted shares and restricted share units that may vest is based on the level of achievement as specified in the award agreements. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 150% of the restricted share unit award for certain awards. If the performance criteria achieved is below certain thresholds, the award is canceled. A total of 252 thousand performance-based awards were outstanding as of March 31, 2021. Market-Based Awards. 50% of these awards generally vest if certain specific market conditions are achieved over a 30-day period and the remaining 50% of these awards generally vest on the one year anniversary of the initial vesting. The Company estimates the grant date fair value of these awards using a lattice (binomial) model. A total of 176 thousand market-based awards were outstanding as of March 31, 2021. Performance-Based and Market-Based Awards. These awards generally vest if certain specific financial measures are achieved and if certain specific market conditions are achieved. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 300% of the restricted share unit award for certain awards. If the performance criteria or the market criteria is below certain thresholds, the award is canceled. The Company estimates the grant date fair value of these awards using a Monte Carlo simulation model. A total of 96 thousand performance-based and market-based awards were outstanding as of March 31, 2021. The Company granted 338 thousand restricted share units (at a weighted average grant date fair value of $9.53 per share) during the three months ended March 31, 2021. These grants include 29 thousand performance-based awards that include both a performance condition and a market condition. The Company granted 37 thousand performance-based awards that include both a performance condition and a market condition for the three months ended March 31, 2020. There were no market-based awards granted for the three months ended March 31, 2021 and 2020, respectively. The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2020 878,521 Granted 337,971 Issued (131,054) Forfeited/canceled (128,470) Outstanding as of March 31, 2021 956,968

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interest 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 that is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1). Our services are provided to customers located in the United States. The components of revenue were as follows for the three months ended March 31: (in thousands) 2021 2020 Service revenue $ 48,080 $ 113,176 Reimbursable expenses 2,013 7,845 Non-controlling interests 372 423 Total $ 50,465 $ 121,444 Disaggregation of Revenue Disaggregation of total revenues by major source is as follows: (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Three months ended March 31, 2021 45,251 3,201 2,013 50,465 Three months ended March 31, 2020 108,008 5,591 7,845 121,444 Contract Balances

COST OF REVENUE

COST OF REVENUE	3 Months Ended
	Mar. 31, 2021
Cost of Revenue [Abstract]
COST OF REVENUE	COST OF REVENUE Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service and operations roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows for the three months ended March 31: (in thousands) 2021 2020 Compensation and benefits $ 22,035 $ 25,916 Outside fees and services 18,723 48,140 Technology and telecommunications 6,587 9,232 Reimbursable expenses 2,013 7,845 Depreciation and amortization 800 3,448 Total $ 50,158 $ 94,581

SELLING, GENERAL AND ADMINISTRA

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	3 Months Ended
	Mar. 31, 2021
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, sales and marketing, finance, law, compliance, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows for the three months ended March 31: (in thousands) 2021 2020 Compensation and benefits $ 7,852 $ 12,012 Professional services 3,218 2,635 Occupancy related costs 3,180 5,421 Amortization of intangible assets 2,599 4,209 Marketing costs 474 1,437 Depreciation and amortization 384 669 Other 1,179 1,710 Total $ 18,886 $ 28,093

OTHER INCOME (EXPENSE), NET

OTHER INCOME (EXPENSE), NET	3 Months Ended
	Mar. 31, 2021
Other Income and Expenses [Abstract]
OTHER (EXPENSE) INCOME, NET	OTHER INCOME (EXPENSE), NET Other income (expense), net consists of the following for the three months ended March 31: (in thousands) 2021 2020 Interest (expense) income $ (21) $ 74 Other, net 970 1,020 Total $ 949 $ 1,094

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESWe recognized an income tax provision of $0.8 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively. The income tax provision for the three months ended March 31, 2021 was driven by income tax on transfer pricing income from India, minimum tax in Luxembourg, no tax benefit on the pretax loss from our Luxembourg operating company and tax on unrepatriated earnings in India.

LOSS PER SHARE

LOSS PER SHARE	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
LOSS PER SHARE	LOSS PER SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below. Basic and diluted loss per share are calculated as follows for the three months ended March 31: (in thousands, except per share data) 2021 2020 Net loss attributable to Altisource $ (22,002) $ (11,650) Weighted average common shares outstanding, basic 15,717 15,497 Weighted average common shares outstanding, diluted 15,717 15,497 Loss per share: Basic $ (1.40) $ (0.75) Diluted $ (1.40) $ (0.75) For the three months ended March 31, 2021 and 2020, 1.7 million and 1.9 million stock options, restricted shares and restricted share units, respectively, were excluded from the computation of loss per share, as a result of the following: • For both the three months ended March 31, 2021 and 2020, 0.3 million stock options, restricted shares and restricted share units were anti-dilutive and have been excluded from the computation of diluted loss per share because the Company incurred a net loss • For the three months ended March 31, 2021 and 2020, 0.3 million and 0.9 million, respectively, stock options were anti-dilutive and have been excluded from the computation of diluted loss per share because their exercise price was greater than the average market price of our common stock • For the three months ended March 31, 2021 and 2020, 1.2 million and 0.8 million, respectively, stock options, restricted shares and restricted share units, which begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and a total shareholder return compared to the market benchmark, that have not yet been met in each period have been excluded from the computation of diluted loss per share

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	3 Months Ended
	Mar. 31, 2021
Restructuring Charges [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES In August 2018, Altisource initiated Project Catalyst, a project intended to optimize its operations and reduce costs to better align its cost structure with its anticipated revenues and improve its operating margins (finalized in 2020). During the three months ended March 31, 2020, Altisource incurred $2.9 million of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the plan (no comparative amount for the three months ended March 31, 2021).

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS	3 Months Ended
	Mar. 31, 2021
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 currently 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. Sales Taxes On June 21, 2018, the United States Supreme Court rendered a 5-4 majority decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning existing court precedent. During the year ended December 31, 2019, the Company completed the analysis of its services for potential exposure to sales tax in various jurisdictions in the United States. Future changes in our estimated sales tax exposure could result in a material adjustment to our condensed consolidated financial statements, which would impact our financial condition and results of operations Ocwen Related Matters As discussed in Note 2, during the three months ended March 31, 2021, Ocwen was our largest customer, accounting for 34% of our total revenue. Additionally, 5% of our revenue for the three months ended March 31, 2021 was earned on the loan portfolios serviced by Ocwen, when a party other than Ocwen or the MSR owner selected Altisource as the service provider. Ocwen has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Ocwen for substantial monetary damages. In addition to monetary damages, various complaints have sought to obtain injunctive relief, consumer redress, refunds, restitution, disgorgement, civil penalties, costs and fees and other relief. Existing or future similar matters could result in, and in some cases, have resulted in, adverse regulatory or other actions against Ocwen. Previous regulatory actions against Ocwen have subjected Ocwen to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights. In addition to the above, Ocwen may become subject to future adverse regulatory or other actions. Ocwen has disclosed that NRZ is its largest client. As of March 31, 2021, approximately 36% of loans serviced and subserviced by Ocwen (measured in UPB) were related to NRZ MSRs or rights to MSRs. In July 2017 and January 2018, Ocwen and NRZ entered into a series of agreements pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s legal title to the Subject MSRs and under which Ocwen will subservice mortgage loans underlying the Subject MSRs for an initial term of five years. NRZ can terminate its sub-servicing agreement with Ocwen in exchange for the payment of a termination fee. The existence or outcome of Ocwen regulatory matters or the termination of the NRZ sub-servicing agreement with Ocwen 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, it may be required to seek changes to its existing pricing structure with us, it may lose its non-government-sponsored enterprise (“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 and others 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. During the second quarter of 2020, Ocwen informed us that an MSR investor instructed Ocwen to use a field services provider other than Altisource on properties associated with certain MSRs. Based upon the impacted portfolios to date and the designated service provider, Altisource believes that Ocwen received these directions from NRZ. We believe Ocwen commenced using another field services provider for these properties in July 2020 and continued to transition services during the third quarter of 2020. We believe that the transition to the replacement field service provider was largely completed as of September 30, 2020. We estimate that $0.2 million and $29.3 million of service revenue from Ocwen for the three months ended March 31, 2021 and 2020, respectively, was derived from Field Services referrals from the NRZ portfolios. Ocwen also communicated to Altisource in the fourth quarter of 2020 that the same investor instructed Ocwen to use a provider for default valuations and certain default title services other than Altisource on properties associated with such certain MSRs and commenced moving these referrals to other service providers in the fourth quarter of 2020. We anticipate that the transition of such default valuations and title services will continue during the course of 2021. We estimate that $1.0 million and $8.0 million of service revenue from Ocwen for the three months ended March 31, 2021 and 2020, respectively, was derived from default valuations and title services referrals from the NRZ portfolios. To address the reduction in revenue, Altisource is undertaking several measures to further reduce its cost structure and strengthen its operations. In addition, we entered into an Agreement with Ocwen on May 5, 2021 pursuant to which the term of the services agreements between us and Ocwen were extended from August 2025 through August 2030 and the scope of solutions we provide to Ocwen were expanded to, among other things, include the opportunity to provide field services, first and second chance foreclosure auctions, and title services on Ocwen’s F.H.A., V.A. and U.S.D.A. loans, subject to a process to confirm Altisource’s ability to meet reasonable performance requirements. The Agreement established a framework for us to expand the foreclosure trustee solutions we provide to Ocwen in additional states, and, as mutually agreed upon by the parties, to deliver reverse mortgage related solutions to Ocwen, subject to negotiation of appropriate statements of work or other agreements, a process to confirm Altisource’s ability to meet reasonable performance requirements, and technical integrations, as may be applicable. The Agreement further resolved the contractual dispute between the parties related to Ocwen’s transfer to NRZ the rights to designate service providers other than Altisource, including mutual releases with respect to such dispute. The Agreement also addressed Ocwen’s rights in the event of certain change of control or sale of a business transactions by us on or after September 1, 2028. In addition to expected reductions in our revenue from the transition of referrals for default related services previously identified, if any of the following events occurred, Altisource’s revenue could be further significantly reduced 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 an additional significant reduction in the volume of services they purchase from us • Ocwen loses, sells or transfers a significant portion of its GSE and Federal Housing Administration servicing rights or subservicing arrangements or remaining non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider • The contractual relationship between Ocwen and NRZ changes significantly and this change results in a change in our status as a provider of services related to the Subject MSRs • Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio • 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 • Altisource otherwise fails to be retained as a service provider Management cannot predict whether any of these events will occur or the amount of any impact they may have on Altisource. However, we are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these efforts. Moreover, in the event one or more of these events materially negatively impact Altisource, we believe the variable nature of our cost structure would allow us to realign our cost structure to address some of the impact to revenue and that current liquidity would be sufficient to meet our working capital, capital expenditures, debt service and other cash needs. There can be no assurance that our plans will be successful or our operations will be profitable. Leases We lease certain premises and equipment, primarily consisting of office space and information technology equipment. Certain of our leases include options to renew at our discretion or terminate leases early, and these options are considered in our determination of the expected lease term. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We sublease certain office space to third parties. Sublease income was $0.3 million for the three months ended March 31, 2021 and 2020. The amortization periods of right-of-use assets are generally limited by the expected lease term. Our leases generally have expected lease terms at adoption of one Information about our lease terms and our discount rate assumption is as follows for the three months ended March 31: 2021 2020 Weighted average remaining lease term (in years) 3.06 3.43 Weighted average discount rate 7.01 % 7.16 % Our lease activity during the period is as follows for the three months ended March 31: (in thousands) 2021 2020 Operating lease costs: Selling, general and administrative expense $ 2,092 $ 2,281 Cost of revenue 171 634 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 3,078 $ 3,311 Short-term (twelve months or less) lease costs 481 1,205 Maturities of our lease liabilities as of March 31, 2021 are as follows: (in thousands) Operating lease obligations 2021 $ 5,888 2022 5,731 2023 4,662 2024 2,897 2025 599 Total lease payments 19,777 Less: interest (2,048) Present value of lease liabilities $ 17,729 Escrow Balances We hold customers’ assets in escrow accounts at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow accounts for limited periods of time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow accounts were $34.0 million and $20.0 million as of March 31, 2021 and December 31, 2020, respectively.

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2021
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. 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).
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 and Future Adoption of New Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is part of the FASB’s initiative to reduce complexity in accounting standards by instituting several simplifying provisions and removing several exceptions pertaining to income tax accounting. This standard is effective for annual periods beginning after December 15, 2020, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company adopted this standard effective January 1, 2021 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s condensed consolidated financial statements. Future Adoption of New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . This standard applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR. This standard is effective from the period from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a topic or an industry subtopic, the standard must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. The Company is currently evaluating the impact this guidance may have on its condensed consolidated financial statements.

ACCOUNTS RECEIVABLE, NET (Table

ACCOUNTS RECEIVABLE, NET (Tables)	3 Months Ended
	Mar. 31, 2021
Receivables [Abstract]
Schedule of change in allowance for doubtful accounts and expected credit losses	Accounts receivable, net consists of the following: (in thousands) March 31, December 31, Billed $ 17,489 $ 19,703 Unbilled 8,215 8,291 25,704 27,994 Less: Allowance for credit losses (5,748) (5,581) Total $ 19,956 $ 22,413 Changes in allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: March 31, 2021 $ 5,581 $ 217 $ 50 $ 5,748 December 31, 2020 4,472 2,229 1,120 5,581 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized.

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2021
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) March 31, December 31, Income taxes receivable $ 8,509 $ 7,053 Maintenance agreements, current portion 2,205 2,513 Prepaid expenses 5,149 4,812 Other current assets 5,102 5,101 Total $ 20,965 $ 19,479

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment, net	Premises and equipment, net consists of the following: (in thousands) March 31, December 31, Computer hardware and software $ 52,289 $ 52,837 Leasehold improvements 14,835 14,792 Furniture and fixtures 5,560 5,882 Office equipment and other 1,694 1,817 74,378 75,328 Less: Accumulated depreciation and amortization (63,286) (63,434) Total $ 11,092 $ 11,894
Schedule of premises and equipment, net by country	Premises and equipment, net consist of the following, by country: (in thousands) March 31, December 31, United States $ 5,084 $ 5,530 Luxembourg 5,054 5,451 India 875 822 Uruguay 79 91 Total $ 11,092 $ 11,894

RIGHT-OF-USE ASSETS UNDER OPE_2

RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Right-of-Use Assets Under Operating Leases	Right-of-use assets under operating leases, net consists of the following: (in thousands) March 31, December 31, Right-of-use assets under operating leases $ 30,111 $ 31,932 Less: Accumulated amortization (13,810) (13,719) Total $ 16,301 $ 18,213

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of changes in goodwill	Goodwill consists of the following: (in thousands) Total Balance as of March 31, 2021 and December 31, 2020 $ 73,849
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) March 31, December 31, March 31, December 31, March 31, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 214,973 $ 214,973 $ (189,981) $ (187,923) $ 24,992 $ 27,050 Operating agreement 20 35,000 35,000 (19,564) (19,126) 15,436 15,874 Trademarks and trade names 16 9,709 9,709 (6,410) (6,307) 3,299 3,402 Non-compete agreements — — 1,230 — (1,230) — — Other intangible assets — — 1,800 — (1,800) — — Total $ 259,682 $ 262,712 $ (215,955) $ (216,386) $ 43,727 $ 46,326

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other assets	Other assets consist of the following: (in thousands) March 31, December 31, Restricted cash $ 4,259 $ 3,833 Security deposits 1,770 2,416 Other 1,062 3,601 Total $ 7,091 $ 9,850

ACCOUNTS PAYABLE, ACCRUED EXP_2

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued expenses	Accounts payable and accrued expenses consist of the following: (in thousands) March 31, December 31, Accounts payable $ 18,903 $ 16,797 Accrued expenses - general 20,608 24,422 Accrued salaries and benefits 12,841 11,226 Income taxes payable 4,360 4,334 Total $ 56,712 $ 56,779
Schedule of other current liabilities	Other current liabilities consist of the following: (in thousands) March 31, December 31, Operating lease liabilities $ 7,118 $ 7,609 Other 418 1,696 Total $ 7,536 $ 9,305

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following: (in thousands) March 31, December 31, Senior secured term loans $ 247,204 $ 247,204 Less: Debt issuance costs, net (2,174) (2,389) Less: Unamortized discount, net (1,991) (2,159) Long-term debt $ 243,039 $ 242,656

OTHER NON-CURRENT LIABILITIES (

OTHER NON-CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2021
Other Liabilities Disclosure [Abstract]
Schedule of other non-current liabilities	Other non-current liabilities consist of the following: (in thousands) March 31, December 31, Operating lease liabilities $ 10,846 $ 12,281 Income tax liabilities 12,392 12,414 Deferred revenue 373 504 Other non-current liabilities 43 40 Total $ 23,654 $ 25,239

FAIR VALUE MEASUREMENTS AND F_2

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2021
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: March 31, 2021 December 31, 2020 (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 $ 41,335 $ 41,335 $ — $ — $ 58,263 $ 58,263 $ — $ — Restricted cash 4,259 4,259 — — 3,833 3,833 — — Long-term receivable — — — — 2,531 — — 2,531 Liabilities: Senior secured term loan 247,204 — 210,124 — 247,204 — 201,472 —

SHAREHOLDERS_ EQUITY AND SHAR_2

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
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 grant date fair value of stock options that vested during the periods presented: Three months ended March 31, (in thousands, except per share amounts) 2021 2020 Grant date fair value of stock options that vested 1,186 1,650
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 as of December 31, 2020 899,914 $ 32.47 5.63 $ — Forfeited/expired (6,762) 29.10 Outstanding as of March 31, 2021 893,152 32.49 5.40 — Exercisable as of March 31, 2021 627,389 28.23 5.41 —
Restricted stock and restricted stock units activity	The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2020 878,521 Granted 337,971 Issued (131,054) Forfeited/canceled (128,470) Outstanding as of March 31, 2021 956,968

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of revenue	The components of revenue were as follows for the three months ended March 31: (in thousands) 2021 2020 Service revenue $ 48,080 $ 113,176 Reimbursable expenses 2,013 7,845 Non-controlling interests 372 423 Total $ 50,465 $ 121,444
Disaggregation of revenue	Disaggregation of total revenues by major source is as follows: (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Three months ended March 31, 2021 45,251 3,201 2,013 50,465 Three months ended March 31, 2020 108,008 5,591 7,845 121,444

COST OF REVENUE (Tables)

COST OF REVENUE (Tables)	3 Months Ended
	Mar. 31, 2021
Cost of Revenue [Abstract]
Schedule of components of cost of revenue	The components of cost of revenue were as follows for the three months ended March 31: (in thousands) 2021 2020 Compensation and benefits $ 22,035 $ 25,916 Outside fees and services 18,723 48,140 Technology and telecommunications 6,587 9,232 Reimbursable expenses 2,013 7,845 Depreciation and amortization 800 3,448 Total $ 50,158 $ 94,581

SELLING, GENERAL AND ADMINIST_2

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2021
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 for the three months ended March 31: (in thousands) 2021 2020 Compensation and benefits $ 7,852 $ 12,012 Professional services 3,218 2,635 Occupancy related costs 3,180 5,421 Amortization of intangible assets 2,599 4,209 Marketing costs 474 1,437 Depreciation and amortization 384 669 Other 1,179 1,710 Total $ 18,886 $ 28,093

OTHER INCOME (EXPENSE), NET (Ta

OTHER INCOME (EXPENSE), NET (Tables)	3 Months Ended
	Mar. 31, 2021
Other Income and Expenses [Abstract]
Schedule of other (expense) income, net	Other income (expense), net consists of the following for the three months ended March 31: (in thousands) 2021 2020 Interest (expense) income $ (21) $ 74 Other, net 970 1,020 Total $ 949 $ 1,094

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted EPS calculation	Basic and diluted loss per share are calculated as follows for the three months ended March 31: (in thousands, except per share data) 2021 2020 Net loss attributable to Altisource $ (22,002) $ (11,650) Weighted average common shares outstanding, basic 15,717 15,497 Weighted average common shares outstanding, diluted 15,717 15,497 Loss per share: Basic $ (1.40) $ (0.75) Diluted $ (1.40) $ (0.75)

COMMITMENTS, CONTINGENCIES AN_2

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Lease term and assumption	Information about our lease terms and our discount rate assumption is as follows for the three months ended March 31: 2021 2020 Weighted average remaining lease term (in years) 3.06 3.43 Weighted average discount rate 7.01 % 7.16 %
Lease activity during period	Our lease activity during the period is as follows for the three months ended March 31: (in thousands) 2021 2020 Operating lease costs: Selling, general and administrative expense $ 2,092 $ 2,281 Cost of revenue 171 634 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 3,078 $ 3,311 Short-term (twelve months or less) lease costs 481 1,205
Maturities of operating lease liabilities	Maturities of our lease liabilities as of March 31, 2021 are as follows: (in thousands) Operating lease obligations 2021 $ 5,888 2022 5,731 2023 4,662 2024 2,897 2025 599 Total lease payments 19,777 Less: interest (2,048) Present value of lease liabilities $ 17,729

ORGANIZATION AND BASIS OF PRE_3

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021USD ($)term	Dec. 31, 2019USD ($)	Dec. 31, 2020USD ($)
Summary of significant accounting policies
Total assets	$ 239,701		$ 265,685
Contributions for the creation of Pointillist		$ 8,500
Variable Interest Entity, Primary Beneficiary
Summary of significant accounting policies
Number of terms | term	3
Agreement term	5 years
Total assets	$ 1,900		2,300
Total liabilities	$ 700		$ 100
Pointillist Management | Pointillist, Inc.
Summary of significant accounting policies
Noncontrolling ownership percentage	12.10%

CUSTOMER CONCENTRATION (Details

CUSTOMER CONCENTRATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Concentration Risk
Revenue	$ 50,465	$ 121,444
NRZ
Concentration Risk
Subservice transferred subject MSRs, initial term	5 years
Customer Concentration Risk | Ocwen
Concentration Risk
Accounts receivable	$ 4,100		$ 5,900
Customer Concentration Risk | Ocwen | Billed
Concentration Risk
Accounts receivable	3,100		5,100
Customer Concentration Risk | Ocwen | Unbilled
Concentration Risk
Accounts receivable	$ 1,000		$ 800
Customer Concentration Risk | Ocwen | Revenue
Concentration Risk
Concentration percentage	34.00%	61.00%
Revenue	$ 16,900	$ 74,200
Customer Concentration Risk | Highly Correlated - Ocwen | Revenue
Concentration Risk
Concentration percentage	5.00%
Revenue	$ 2,600	7,800
Customer Concentration Risk | NRZ | Revenue
Concentration Risk
Revenue	$ 800	2,700
Percentage of loans serviced and subserviced by largest customer's largest client	36.00%
Customer Concentration Risk | Highly Correlated - NRZ | Revenue
Concentration Risk
Revenue	$ 3,400	12,000
Mortgage Servicing Rights | Ocwen, Investor
Concentration Risk
Revenue	200	29,300
Other Default Related Services | Ocwen, Investor
Concentration Risk
Revenue	$ 1,000	$ 8,000

SALE OF A BUSINESS (Details)

SALE OF A BUSINESS (Details)	1 Months Ended	3 Months Ended
	Aug. 31, 2018USD ($)installment	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from the sale of business		$ 3,000,000	$ 0
Long-term receivable		$ 0		$ 2,531,000
Rental Property Management Business | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total proceeds from the sale of business	$ 18,000,000
Number of installment payments | installment	2
Proceeds from the sale of business	$ 15,000,000
Future proceeds from the sale of business	$ 3,000,000

INVESTMENT IN EQUITY SECURITI_2

INVESTMENT IN EQUITY SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2016	Dec. 31, 2020
Marketable Securities [Line Items]
Unrealized loss on investment in equity securities	$ 0	$ (1,347)
RESI
Marketable Securities [Line Items]
Number of investment shares acquired (in shares)			4,100,000
Number of securities outstanding (in shares)	0			0
Unrealized loss on investment in equity securities	$ 0	(1,300)
Investment income, dividend	$ 0	$ 500

ACCOUNTS RECEIVABLE, NET - Sche

ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts receivable, net
Accounts receivable, gross	$ 25,704	$ 27,994
Less: Allowance for credit losses	(5,748)	(5,581)	$ (4,472)
Total	19,956	22,413
Billed
Accounts receivable, net
Accounts receivable, gross	17,489	19,703
Unbilled
Accounts receivable, net
Accounts receivable, gross	$ 8,215	$ 8,291

ACCOUNTS RECEIVABLE, NET - Sc_2

ACCOUNTS RECEIVABLE, NET - Schedule of Allowance for Doubtful Accounts and Expected Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Allowance for expected credit losses:
Balance at Beginning of Period	$ 5,581	$ 4,472	$ 4,472
Charged to Expenses	217	$ 342	2,229
Deductions Note	50		1,120
Balance at End of Period	$ 5,748		$ 5,581

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Income taxes receivable	$ 8,509	$ 7,053
Maintenance agreements, current portion	2,205	2,513
Prepaid expenses	5,149	4,812
Other current assets	5,102	5,101
Total	$ 20,965	$ 19,479

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 74,378		$ 75,328
Less: Accumulated depreciation and amortization	(63,286)		(63,434)
Total	11,092		11,894
Depreciation and amortization	1,184	$ 4,117
Computer hardware and software
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	52,289		52,837
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	14,835		14,792
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	5,560		5,882
Office equipment and other
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 1,694		$ 1,817

PREMISES AND EQUIPMENT, NET - S

PREMISES AND EQUIPMENT, NET - Summary by Country (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total	$ 11,092	$ 11,894
United States
Property, Plant and Equipment [Line Items]
Total	5,084	5,530
Luxembourg
Property, Plant and Equipment [Line Items]
Total	5,054	5,451
India
Property, Plant and Equipment [Line Items]
Total	875	822
Uruguay
Property, Plant and Equipment [Line Items]
Total	$ 79	$ 91

RIGHT-OF-USE ASSETS UNDER OPE_3

RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Leases [Abstract]
Right-of-use assets under operating leases	$ 30,111		$ 31,932
Less: Accumulated amortization	(13,810)		(13,719)
Total	16,301		$ 18,213
Amortization of right-of-use assets under operating leases	$ 1,927	$ 2,706

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 73,849	$ 73,849

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible assets, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Intangible Assets, Net
Gross carrying amount	$ 259,682		$ 262,712
Accumulated amortization	(215,955)		(216,386)
Net book value	43,727		46,326
Amortization expense for definite lived intangible assets	2,599	$ 4,209
2021	9,500
2022	5,100
2023	5,100
2024	5,100
2025	5,100
Customer related intangible assets
Intangible Assets, Net
Gross carrying amount	214,973		214,973
Accumulated amortization	(189,981)		(187,923)
Net book value	24,992		27,050
Operating agreement
Intangible Assets, Net
Gross carrying amount	35,000		35,000
Accumulated amortization	(19,564)		(19,126)
Net book value	15,436		15,874
Trademarks and trade names
Intangible Assets, Net
Gross carrying amount	9,709		9,709
Accumulated amortization	(6,410)		(6,307)
Net book value	3,299		3,402
Non-compete agreements
Intangible Assets, Net
Gross carrying amount	0		1,230
Accumulated amortization	0		(1,230)
Net book value	0		0
Other intangible assets
Intangible Assets, Net
Gross carrying amount	0		1,800
Accumulated amortization	0		(1,800)
Net book value	$ 0		$ 0
Weighted Average | Customer related intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)	9 years
Weighted Average | Operating agreement
Intangible Assets, Net
Weighted average estimated useful life (in years)	20 years
Weighted Average | Trademarks and trade names
Intangible Assets, Net
Weighted average estimated useful life (in years)	16 years
Weighted Average | Non-compete agreements
Intangible Assets, Net
Weighted average estimated useful life (in years)	0 years
Weighted Average | Other intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)	0 years

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Restricted cash	$ 4,259	$ 3,833
Security deposits	1,770	2,416
Other	1,062	3,601
Total	$ 7,091	$ 9,850

ACCOUNTS PAYABLE, ACCRUED EXP_3

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accounts payable	$ 18,903	$ 16,797
Accrued expenses - general	20,608	24,422
Accrued salaries and benefits	12,841	11,226
Income taxes payable	4,360	4,334
Total	$ 56,712	$ 56,779

ACCOUNTS PAYABLE, ACCRUED EXP_4

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other current liabilities
Operating lease liabilities	$ 7,118	$ 7,609
Other	418	1,696
Total	$ 7,536	$ 9,305

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	Apr. 03, 2018USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Less: Debt issuance costs, net		$ (2,174,000)	$ (2,389,000)
Less: Unamortized discount, net		(1,991,000)	(2,159,000)
Long-term debt		243,039,000	242,656,000
Debt issuance costs, net		2,174,000	2,389,000
Accumulated amortization		2,300,000	2,200,000
Senior secured term loan
Debt Instrument [Line Items]
Outstanding balance of debt		$ 247,204,000	$ 247,204,000
April 3, 2018 Credit Agreement
Debt Instrument [Line Items]
Threshold for past due debt repayment	5 days
April 3, 2018 Credit Agreement | Term B loans
Debt Instrument [Line Items]
Debt instrument, face amount	$ 412,000,000
Leverage ratio to avoid mandatory prepayments under the Credit Agreement	3
Leverage ratio at which mandatory prepayments increase under the Credit Agreement (exceeds)	3.50
Interest rate at the end of the period		5.00%
April 3, 2018 Credit Agreement | Term B loans | Maximum
Debt Instrument [Line Items]
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
April 3, 2018 Credit Agreement | Term B loans | Adjusted Eurodollar Rate
Debt Instrument [Line Items]
Debt instrument fixed base rate	1.00%
Interest rate margin	4.00%
April 3, 2018 Credit Agreement | Term B loans | Base Rate
Debt Instrument [Line Items]
Debt instrument fixed base rate	2.00%
Interest rate margin	3.00%
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding balance of debt		$ 0
Debt instrument, face amount	$ 15,000,000
Leverage ratio at which mandatory prepayments increase under the Credit Agreement (exceeds)	3.50
Potential increase in additional borrowings	$ 125,000,000
Potential increase in additional borrowings, sublimit	$ 80,000,000
Unused commitment fee	0.50%
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility | Adjusted Eurodollar Rate
Debt Instrument [Line Items]
Interest rate margin	4.00%
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Interest rate margin	3.00%

OTHER NON-CURRENT LIABILITIES_2

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Operating lease liabilities	$ 10,846	$ 12,281
Income tax liabilities	12,392	12,414
Deferred revenue	373	504
Other non-current liabilities	43	40
Total	$ 23,654	$ 25,239

FAIR VALUE MEASUREMENTS AND F_3

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 41,335,000	$ 58,263,000
Restricted cash	4,259,000	3,833,000
Long-term receivable	0	2,531,000
Level 1 | Fair Value, Measurements, Recurring
Assets:
Cash and cash equivalents	41,335,000	58,263,000
Restricted cash	4,259,000	3,833,000
Long-term receivable	0	0
Level 2 | Fair Value, Measurements, Recurring
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Long-term receivable	0	0
Level 3 | Fair Value, Measurements, Recurring
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Long-term receivable	0	2,531,000
Senior secured term loan
Liabilities:
Senior secured term loan	247,204,000	247,204,000
Senior secured term loan | Level 1 | Fair Value, Measurements, Recurring
Liabilities:
Senior secured term loan	0	0
Senior secured term loan | Level 2 | Fair Value, Measurements, Recurring
Liabilities:
Senior secured term loan	210,124,000	201,472,000
Senior secured term loan | Level 3 | Fair Value, Measurements, Recurring
Liabilities:
Senior secured term loan	$ 0	$ 0

FAIR VALUE MEASUREMENTS AND F_4

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Aug. 31, 2018	Mar. 31, 2021	Mar. 31, 2020
Discontinued Operations, Disposed of by Sale | Rental Property Management Business
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Future proceeds from the sale of business, second installment	$ 3
Revenue | Customer Concentration Risk | Ocwen
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Percentage of revenue from largest customer		34.00%	61.00%

SHAREHOLDERS_ EQUITY AND SHAR_3

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Stock Repurchase Plan & Share-Based Compensation (Details) $ / shares in Units, $ in Thousands	May 15, 2018$ / sharesshares	Apr. 03, 2018	Mar. 31, 2021USD ($)component$ / sharesshares	Mar. 31, 2020USD ($)shares	Dec. 31, 2020shares
Share Repurchase Program
Authorized amount | $			$ 86,000
Capacity available to repurchase common stock under senior secured term loan | $			398,000
Share-Based Compensation
Share-based compensation expense | $			1,438	$ 2,894
Estimated unrecognized compensation costs | $			$ 7,700
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized			1 year 7 months 6 days
Outstanding (in shares)			893,152		899,914
Stock options granted (in shares)			0	0
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Grant date fair value of stock options that vested | $			$ 1,186	$ 1,650
Revolving Credit Facility | April 3, 2018 Credit Agreement | Line of Credit
Share Repurchase Program
Leverage ratio at which mandatory prepayments increase under the Credit Agreement (exceeds)		3.50
Stock Options, Service-Based
Share-Based Compensation
Outstanding (in shares)			249,000
Stock Options, Service-Based | Minimum
Share-Based Compensation
Vesting period			3 years
Stock Options, Service-Based | Maximum
Share-Based Compensation
Vesting period			4 years
Expiration term			10 years
Stock Options, Market-Based
Share-Based Compensation
Outstanding (in shares)			198,000
Number of components of an award | component			2
Allowable performance period before expiration date			3 years
Stock Options, Market-Based | Minimum
Share-Based Compensation
Vesting period			3 years
Expiration term			10 years
Stock Options, Market-Based | Maximum
Share-Based Compensation
Vesting period			4 years
Stock Options, Market-Based, Ordinary Performance
Share-Based Compensation
Percentage of awards			67.00%
Vesting threshold			2
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%
Stock Options, Market-Based, Extraordinary Performance
Share-Based Compensation
Percentage of awards			33.00%
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%
Stock Options, Performance-Based
Share-Based Compensation
Outstanding (in shares)			446,000
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche One
Share-Based Compensation
Vesting percentage			25.00%
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Two
Share-Based Compensation
Vesting percentage			25.00%
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Three
Share-Based Compensation
Vesting percentage			25.00%
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Four
Share-Based Compensation
Vesting percentage			25.00%
Stock Options, Performance-Based | Minimum
Share-Based Compensation
Allowable performance period before expiration date			10 years
Attainment above threshold performance levels, vesting percentage			50.00%
Stock Options, Performance-Based | Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage			200.00%
Restricted Stock and Restricted Stock Units, Service-Based
Share-Based Compensation
Restricted shares and restricted share units outstanding (in shares)			433,000
Restricted Stock and Restricted Stock Units, Service-Based | Minimum
Share-Based Compensation
Vesting period			2 years
Restricted Stock and Restricted Stock Units, Service-Based | Maximum
Share-Based Compensation
Vesting period			4 years
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based
Share-Based Compensation
Restricted shares and restricted share units outstanding (in shares)			252,000
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche One
Share-Based Compensation
Vesting percentage			33.00%
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Two
Share-Based Compensation
Vesting percentage			33.00%
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Three
Share-Based Compensation
Vesting percentage			33.00%
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage			150.00%
Restricted Stock and Restricted Stock Units (RSUs), Market-Based
Share-Based Compensation
Restricted shares and restricted share units outstanding (in shares)			176,000
Restricted share units granted (in shares)			0	0
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Minimum
Share-Based Compensation
Vesting period			30 days
Vesting percentage			50.00%
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Maximum
Share-Based Compensation
Vesting period			1 year
Vesting percentage			50.00%
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based
Share-Based Compensation
Restricted shares and restricted share units outstanding (in shares)			96,000
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based | Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage			300.00%
Restricted Stock Units (RSUs)
Share-Based Compensation
Restricted share units granted (in shares)			338,000
Restricted share units granted, weighted average grant date fair value (in usd per share) | $ / shares			$ 9.53
Restricted Stock Units (RSUs), Performance-Based and Market-Based
Share-Based Compensation
Restricted share units granted (in shares)			29,000
Restricted Stock Units (RSUs), Market-Based
Share-Based Compensation
Restricted share units granted (in shares)				37,000
Share Repurchase Program, Current
Share Repurchase Program
Number of shares of common stock authorized to be purchased (in shares)	4,300,000
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)			2,400,000
Number of shares of common stock purchased (in shares)			0	0

SHAREHOLDERS_ EQUITY AND SHAR_4

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Summary of Activity Related to Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Number of options
Outstanding at the beginning of the period (in shares)	899,914
Forfeited/expired (in shares)	(6,762)
Outstanding at the end of the period (in shares)	893,152
Exercisable at the end of the period (in shares)	627,389
Weighted average exercise price
Outstanding at the beginning of the period (in usd per share)	$ 32.47
Forfeited/expired (in usd per share)	29.10
Outstanding at the end of the period (in usd per share)	32.49
Exercisable at the end of the period (in usd per share)	$ 28.23
Weighted average contractual term (in years)
Weighted average contractual term	5 years 4 months 24 days	5 years 7 months 17 days
Exercisable at the end of the period	5 years 4 months 28 days
Aggregate intrinsic value (in thousands)
Aggregate intrinsic value, beginning balance (in dollars)	$ 0
Aggregate intrinsic value, ending balance (in dollars)	0
Exercisable at the end of the period (in dollars)	$ 0

SHAREHOLDERS_ EQUITY AND SHAR_5

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - RSU (Details) - Restricted Stock And Restricted Stock Units	3 Months Ended
	Mar. 31, 2021shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at the beginning of period (in shares)	878,521
Granted (in shares)	337,971
Issued (in shares)	(131,054)
Forfeited/canceled (in shares)	(128,470)
Outstanding at the end of period (in shares)	956,968

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of revenue [Line Items]
Revenue	$ 50,465	$ 121,444
Service revenue
Schedule of revenue [Line Items]
Revenue	48,080	113,176
Reimbursable expenses
Schedule of revenue [Line Items]
Revenue	2,013	7,845
Non-controlling interests
Schedule of revenue [Line Items]
Revenue	$ 372	$ 423

REVENUE - Disaggregation of rev

REVENUE - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 50,465	$ 121,444
Revenue recognized when services are performed or assets are sold
Disaggregation of Revenue [Line Items]
Revenue	45,251	108,008
Revenue related to technology platforms and professional services
Disaggregation of Revenue [Line Items]
Revenue	3,201	5,591
Reimbursable expenses revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 2,013	$ 7,845

REVENUE REVENUE - Contract Bala

REVENUE REVENUE - Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in the contract liability at the beginning of the period	$ 2.2	$ 2.5

COST OF REVENUE (Details)

COST OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cost of Revenue [Abstract]
Compensation and benefits	$ 22,035	$ 25,916
Outside fees and services	18,723	48,140
Technology and telecommunications	6,587	9,232
Reimbursable expenses	2,013	7,845
Depreciation and amortization	800	3,448
Total	$ 50,158	$ 94,581

SELLING, GENERAL AND ADMINIST_3

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Selling, General and Administrative Expense [Abstract]
Compensation and benefits	$ 7,852	$ 12,012
Professional services	3,218	2,635
Occupancy related costs	3,180	5,421
Amortization of intangible assets	2,599	4,209
Marketing costs	474	1,437
Depreciation and amortization	384	669
Other	1,179	1,710
Total	$ 18,886	$ 28,093

OTHER INCOME (EXPENSE), NET (De

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Income and Expenses [Abstract]
Interest (expense) income	$ (21)	$ 74
Other, net	970	1,020
Total	$ 949	$ 1,094

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision	$ 843	$ 2,421

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net loss attributable to Altisource	$ (22,002)	$ (11,650)
Weighted average common shares outstanding, basic (in shares)	15,717	15,497
Weighted average common shares outstanding, diluted (in shares)	15,717	15,497
Loss per share:
Basic (in usd per share)	$ (1.40)	$ (0.75)
Diluted (in usd per share)	$ (1.40)	$ (0.75)
Anti-dilutive securities
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares)	1,700	1,900
Employee and Nonemployee Stock Options, Restricted Stock and Restricted Stock Units Whose Impacts are Anti-Dilutive
Anti-dilutive securities
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares)	300	300
Options Whose Exercise Price is Greater than Average Market Price
Anti-dilutive securities
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares)	300	900
Options and Restricted Shares Issuable upon Achievement of Certain Market and Performance Criteria That Has Not Been Met
Anti-dilutive securities
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares)	1,200	800

RESTRUCTURING CHARGES (Details)

RESTRUCTURING CHARGES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Charges [Abstract]
Restructuring charges	$ 0	$ 2,925

COMMITMENTS, CONTINGENCIES AN_3

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Concentration Risk
Revenue	$ 50,465	$ 121,444
Amounts held in escrow and trust accounts	$ 34,000		$ 20,000
Ocwen | Customer Concentration Risk | Revenue
Concentration Risk
Percentage of revenue from largest customer	34.00%	61.00%
Revenue	$ 16,900	$ 74,200
Highly Correlated - Ocwen | Customer Concentration Risk | Revenue
Concentration Risk
Percentage of revenue from largest customer	5.00%
Revenue	$ 2,600	7,800
NRZ
Concentration Risk
Subservice transferred subject MSRs, initial term	5 years
NRZ | Customer Concentration Risk | Revenue
Concentration Risk
Percentage of loans serviced and subserviced by largest customer's largest client	36.00%
Revenue	$ 800	2,700
Mortgage Servicing Rights | Ocwen, Investor
Concentration Risk
Revenue	200	29,300
Other Default Related Services | Ocwen, Investor
Concentration Risk
Revenue	$ 1,000	$ 8,000

COMMITMENTS, CONTINGENCIES AN_4

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Leases (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)
Lessee, Lease, Description [Line Items]
Sublease income	$ 0.3
Lease term, not commenced	5 years
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	6 years

COMMITMENTS, CONTINGENCIES AN_5

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Term and Assumption (Details)	Mar. 31, 2021	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Weighted average remaining lease term (in years)	3 years 21 days	3 years 5 months 4 days
Weighted average discount rate	7.01%	7.16%

COMMITMENTS, CONTINGENCIES AN_6

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Lessee, Lease, Description [Line Items]
Cash used in operating activities for amounts included in the measurement of lease liabilities	$ 3,078	$ 3,311
Short-term (twelve months or less) lease costs	481	1,205
Selling, general and administrative expense
Lessee, Lease, Description [Line Items]
Operating lease costs	2,092	2,281
Cost of revenue
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 171	$ 634

COMMITMENTS, CONTINGENCIES AN_7

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 5,888
2022	5,731
2023	4,662
2024	2,897
2025	599
Total lease payments	19,777
Less: interest	(2,048)
Lease obligation liabilities	$ 17,729