Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | OCWEN FINANCIAL CORPORATION | ||
Entity Central Index Key | 0000873860 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-13219 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 65-0039856 | ||
Entity Address, Address Line One | 1661 Worthington Road, Suite 100 | ||
Entity Address, City or Town | West Palm Beach, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33409 | ||
City Area Code | 561 | ||
Local Phone Number | 682-8000 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 9,208,312 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | OCN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 277,835,518 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of our definitive Proxy Statement with respect to our Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of our fiscal year ended December 31, 2021, are incorporated by reference into Part III, Items 10 - 14. | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | New York, NY | ||
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 192,792 | $ 284,802 |
Restricted cash ($9,759 and $16,791 related to variable interest entities (VIEs)) | 70,654 | 72,463 |
Mortgage servicing rights, at fair value | 2,250,147 | 1,294,817 |
Advances, net (amounts related to VIEs of $587,059 and $651,576) | 772,433 | 828,239 |
Loans held for sale ($917,534 and $366,364 carried at fair value) ($462,144 and $0 related to VIEs) | 928,527 | 387,836 |
Loans held for investment, at fair value ($7,879 and $9,770 related to VIEs) | 7,207,641 | 7,006,897 |
Receivables, net | 180,707 | 187,665 |
Investment in equity method investee | 23,297 | 0 |
Premises and equipment, net | 13,674 | 16,925 |
Other assets ($21,886 and $25,476 carried at fair value) ($1,530 and $4,544 related to VIEs) | 507,250 | 571,483 |
Total assets | 12,147,123 | 10,651,127 |
Liabilities | ||
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 6,885,022 | 6,772,711 |
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | 804,963 | 576,722 |
Advance match funded liabilities (related to VIEs) | 512,297 | 581,288 |
Mortgage loan warehouse facilities | 1,085,076 | 451,713 |
MSR financing facilities, net | 900,760 | 437,672 |
Senior secured term loan, net | 0 | 179,776 |
Senior notes, net ($222,242 due to related parties) | 614,797 | 311,898 |
Other liabilities ($3,080 and $4,638 carried at fair value) | 867,514 | 923,975 |
Total liabilities | 11,670,429 | 10,235,755 |
Commitments and Contingencies (Notes 25 and 26) | ||
Stockholders’ Equity | ||
Common stock, $.01 par value; 13,333,333 shares authorized; 9,208,312 and 8,687,750 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 92 | 87 |
Additional paid-in capital | 592,572 | 556,062 |
Accumulated deficit | (113,604) | (131,682) |
Accumulated other comprehensive loss, net of income taxes | (2,366) | (9,095) |
Total stockholders’ equity | 476,694 | 415,372 |
Total liabilities and stockholders’ equity | $ 12,147,123 | $ 10,651,127 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted cash | $ 70,654 | $ 72,463 |
Advances, net (amounts related to VIEs of $587,059 and $651,576) | 772,433 | 828,239 |
Loans Held-for-sale, Fair Value Disclosure | 917,534 | 366,364 |
Loans held for investment - unsecuritized | 7,207,641 | 7,006,897 |
Other assets, fair value | 21,886 | 25,476 |
Other assets ($21,886 and $25,476 carried at fair value) ($1,530 and $4,544 related to VIEs) | 507,250 | 571,483 |
Other financing liabilities, due to related parties | 238,144 | 0 |
Other financing liabilities | 804,963 | 576,722 |
Senior notes, due to related parties | 222,242 | |
Other liabilities, fair value | $ 3,080 | $ 4,638 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 13,333,333 | 13,333,333 |
Common stock, shares, issued | 9,208,312 | 8,687,750 |
Common stock, shares, outstanding | 9,208,312 | 8,687,750 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | $ 9,759 | $ 16,791 |
Advances, net (amounts related to VIEs of $587,059 and $651,576) | 587,059 | 651,576 |
Loans Held-for-sale, Fair Value Disclosure | 462,144 | 0 |
Loans held for investment - unsecuritized | 7,879 | 9,770 |
Other assets ($21,886 and $25,476 carried at fair value) ($1,530 and $4,544 related to VIEs) | 1,530 | 4,544 |
Other financing liabilities | $ 7,879 | $ 9,770 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | |||
Servicing and subservicing fees | $ 781,941 | $ 737,320 | $ 975,507 |
Reverse mortgage revenue, net | 79,676 | 60,726 | 86,309 |
Gain on loans held for sale, net | 145,755 | 137,236 | 38,300 |
Other revenue, net | 42,727 | 25,630 | 23,259 |
Total revenue | 1,050,099 | 960,912 | 1,123,375 |
MSR valuation adjustments, net | (109,900) | (251,921) | (120,876) |
Operating expenses | |||
Compensation and benefits | 297,947 | 265,295 | 313,508 |
Servicing and origination | 113,627 | 77,265 | 109,007 |
Professional services | 81,890 | 106,872 | 102,638 |
Technology and communications | 56,021 | 59,592 | 79,166 |
Occupancy and equipment | 36,536 | 47,503 | 68,146 |
Other expenses | 23,306 | 19,177 | 1,474 |
Total operating expenses | 609,327 | 575,704 | 673,939 |
Other income (expense) | |||
Interest income | 26,374 | 15,999 | 17,104 |
Interest expense ($31,656, $0 and $0 due to related parties) | (143,968) | (109,367) | (114,129) |
Pledged MSR liability expense ($4,675, $0 and $0 due to related party) | (209,901) | (152,334) | (372,089) |
Gain (loss) on extinguishment of debt | (15,458) | 0 | 5,099 |
Earnings of equity method investee | 3,620 | 0 | 0 |
Other, net | 4,090 | 6,731 | 8,964 |
Total other income (expense), net | (335,243) | (238,971) | (455,051) |
Income (loss) before income taxes | (4,371) | (105,684) | (126,491) |
Income tax expense (benefit) | (22,449) | (65,506) | 15,634 |
Net income (loss) | $ 18,078 | $ (40,178) | $ (142,125) |
Earnings (loss) per share attributable to Ocwen stockholders - Basic and Diluted | |||
Basic | $ 2 | $ (4.59) | $ (15.86) |
Diluted | $ 1.93 | $ (4.59) | $ (15.86) |
Weighted average common shares outstanding | |||
Basic (in shares) | 9,021,975 | 8,748,725 | 8,962,961 |
Diluted (in shares) | 9,382,467 | 8,748,725 | 8,962,961 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Interest expense, related party | $ 31,656 | $ 0 | $ 0 |
Pledged MSR liability expense to related party | $ 4,675 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 18,078 | $ (40,178) | $ (142,125) |
Other comprehensive income (loss), net of income taxes | |||
Reclassification adjustment for losses on cash flow hedges included in net income | 115 | 158 | 147 |
Change in unfunded pension plan obligation liability | 6,529 | (1,620) | (3,442) |
Other | 84 | (39) | (42) |
Comprehensive income (loss) | $ 24,806 | $ (41,679) | $ (145,462) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Accounting Standards Update 2016-02 | Accounting Standards Update 2016-13 | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Accounting Standards Update 2016-02 | Retained Earnings (Accumulated Deficit)Accounting Standards Update 2016-13 | Accumulated Other Comprehensive Income (Loss), Net of Taxes |
Balance at (in shares) at Dec. 31, 2018 | 8,927,495 | ||||||||
Balance at at Dec. 31, 2018 | $ 554,705 | $ 89 | $ 555,306 | $ 3,567 | $ (4,257) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (142,125) | (142,125) | |||||||
Cumulative-effect adjustments | $ 16 | $ 16 | |||||||
Equity-based compensation and other (in shares) | 63,321 | ||||||||
Equity-based compensation and other | 2,752 | $ 1 | 2,751 | ||||||
Other comprehensive income (loss), net of income taxes | (3,337) | (3,337) | |||||||
Balance at (in shares) at Dec. 31, 2019 | 8,990,816 | ||||||||
Balance at at Dec. 31, 2019 | 412,011 | $ 90 | 558,057 | (138,542) | (7,594) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (40,178) | (40,178) | |||||||
Cumulative-effect adjustments | $ 47,038 | $ 47,038 | |||||||
Repurchase of common stock, shares | (377,484) | ||||||||
Repurchase of common stock, value | $ (4,605) | $ (4) | (4,601) | ||||||
Additional shares issued on reverse stock split rounding | 4,692 | 4,692 | |||||||
Equity-based compensation and other (in shares) | 69,726 | ||||||||
Equity-based compensation and other | $ 2,607 | $ 1 | 2,606 | ||||||
Other comprehensive income (loss), net of income taxes | $ (1,501) | (1,501) | |||||||
Balance at (in shares) at Dec. 31, 2020 | 8,687,750 | 8,687,750 | |||||||
Balance at at Dec. 31, 2020 | $ 415,372 | $ 87 | 556,062 | (131,682) | (9,095) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 18,078 | 18,078 | |||||||
Issuance of common stock (in shares) | 426,705 | ||||||||
Issuance of common stock | 12,169 | $ 4 | 12,165 | ||||||
Issuance of common stock warrants, net of issuance costs | 19,956 | 19,956 | |||||||
Equity-based compensation and other (in shares) | 93,857 | ||||||||
Equity-based compensation and other | 4,390 | $ 1 | 4,389 | ||||||
Other comprehensive income (loss), net of income taxes | $ 6,729 | 6,729 | |||||||
Balance at (in shares) at Dec. 31, 2021 | 9,208,312 | 9,208,312 | |||||||
Balance at at Dec. 31, 2021 | $ 476,694 | $ 92 | $ 592,572 | $ (113,604) | $ (2,366) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income (loss) | $ 18,078 | $ (40,178) | $ (142,125) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
MSR valuation adjustments, net | 109,900 | 251,921 | 120,876 |
Loss (gain) on sale of MSRs, net | 121 | (184) | (453) |
Provision for bad debts | 22,738 | 25,637 | 34,867 |
Depreciation | 10,265 | 19,121 | 31,911 |
Amortization of debt discount and issuance costs | 7,792 | 6,992 | 4,512 |
Loss (gain) on extinguishment of debt | 15,458 | 0 | (5,099) |
Provision for (reversal of) valuation allowance on deferred tax assets | 2,344 | 28,215 | 32,470 |
Decrease (increase) in deferred tax assets other than provision for valuation allowance | (2,129) | (29,589) | (29,350) |
Equity-based compensation expense | 4,719 | 2,401 | 2,697 |
Loss (gain) on valuation of Pledged MSR financing liability | 77,945 | (17,853) | 152,986 |
Net gain on valuation of loans held for investment and HMBS-related borrowings | (18,304) | (10,078) | (55,869) |
Earnings of equity method investee | (3,620) | 0 | 0 |
Gain on loans held for sale, net | (145,755) | (137,236) | (38,300) |
Origination and purchase of loans held for sale | (19,972,375) | (7,552,026) | (1,488,974) |
Proceeds from sale and collections of loans held for sale | 19,349,349 | 7,430,544 | 1,380,138 |
Changes in assets and liabilities: | |||
Decrease in advances, net | 28,868 | 213,293 | 105,052 |
(Increase) decrease in receivables and other assets, net | 14,168 | 114,089 | 126,881 |
Increase (decrease) in other liabilities | 6,796 | (34,181) | (72,182) |
Other, net | 1,487 | (9,914) | (8,098) |
Net cash provided by (used in) operating activities | (472,155) | 260,974 | 151,940 |
Cash flows from investing activities | |||
Origination of loans held for investment | (1,763,418) | (1,203,645) | (1,026,154) |
Principal payments received on loans held for investment | 1,628,320 | 944,699 | 558,720 |
Purchase of MSRs | (831,204) | (273,197) | (145,668) |
Proceeds from sale of MSRs | 0 | 248 | 4,984 |
Acquisition of reverse mortgage subservicing agreements | (8,956) | 0 | 0 |
Investment in equity method investee | (27,927) | 0 | 0 |
Distribution of capital from equity method investee | 8,250 | 0 | 0 |
Acquisition of advances in connection with the purchase of MSRs | (6,276) | (14) | (1,457) |
Proceeds from sale of advances and match funded advances | 1,272 | 809 | 14,186 |
Purchase of real estate | (6,525) | (1,377) | (2,772) |
Proceeds from sale of real estate | 8,118 | 7,525 | 7,548 |
Additions to premises and equipment | (3,270) | (4,110) | (1,954) |
Other, net | 166 | 1,187 | 5,129 |
Net cash provided by (used in) investing activities | (1,001,450) | (527,875) | (587,438) |
Cash flows from financing activities | |||
Repayment of match funded liabilities, net | (68,991) | (97,821) | (99,175) |
Repayment of other financing liabilities | (91,248) | (101,771) | (218,783) |
Proceeds from (repayments of) mortgage loan warehouse facilities, net | 633,363 | 119,489 | 176,511 |
Proceeds from MSR financing facilities | 715,747 | 369,024 | 343,641 |
Repayment of MSR financing facilities | (249,973) | (300,553) | (39,420) |
Repayment of Senior notes | (319,156) | 0 | (131,791) |
Proceeds from issuance of Senior notes and warrants | 647,944 | 0 | 0 |
Proceeds from issuance of additional senior secured term loan (SSTL) | 119,100 | ||
Repayment of senior secured term loan (SSTL) borrowings | (188,700) | (141,067) | (25,433) |
Payment of debt issuance costs | (16,210) | (7,701) | (2,813) |
Proceeds from sales of MSRs to related party, accounted for as a financing | 247,038 | 0 | 0 |
Proceeds from sale of Home Equity Conversion Mortgages (HECM, or reverse mortgages) accounted for as a financing (HMBS-related borrowings) | 1,674,914 | 1,232,641 | 962,113 |
Repayment of HMBS-related borrowings | (1,614,295) | (935,778) | (549,600) |
Issuance of common stock | 9,878 | 0 | 0 |
Repurchase of common stock | 0 | (4,605) | 0 |
Other, net | (525) | (32) | (3,522) |
Net cash provided by (used in) financing activities | 1,379,786 | 131,826 | 530,828 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (93,819) | (135,075) | 95,330 |
Cash, cash equivalents and restricted cash at beginning of year | 357,265 | 492,340 | 397,010 |
Cash, cash equivalents and restricted cash at end of year | 263,446 | 357,265 | 492,340 |
Supplemental cash flow information | |||
Interest paid | 125,115 | 97,023 | 111,144 |
Income tax payments (refunds), net | (22,335) | (43,469) | 4,075 |
Supplemental non-cash investing and financing activities | |||
Right-of-use asset | 4,485 | 3,724 | 66,231 |
Lease liability | 4,219 | 2,902 | 66,247 |
Transfers from loans held for investment to loans held for sale | 4,271 | 3,084 | 1,892 |
Transfers of loans held for sale to real estate owned (REO) | 8,438 | 3,657 | 6,636 |
Derecognition of MSRs | 0 | (263,664) | 0 |
Derecognition of financing liabilities: | 0 | (263,664) | 0 |
Initial consolidation (subsequent deconsolidation) of mortgage-backed securitization trusts (VIEs) - Loans held for investments | 0 | (10,715) | 0 |
Initial consolidation (subsequent deconsolidation) of mortgage-backed securitization trusts (VIEs) - Other financing liabilities | 0 | (9,519) | 0 |
Recognition of future draw commitments for HECM loans at fair value upon adoption of FASB ASU No. 2016-13 | 0 | 47,038 | 0 |
Cash proceeds received | 4,409 | 0 | 0 |
Equity / cash balance held by subsidiary upon sale | (5,250) | 0 | 0 |
Restricted cash and equivalents: | |||
Cash and cash equivalents | 192,792 | 284,802 | 428,339 |
Debt service accounts | 9,968 | 20,141 | 23,276 |
Other restricted cash | $ 60,686 | $ 52,322 | $ 40,725 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Note 1 — Organization, Basis of Presentation and Significant Accounting Policies Organization Ocwen Financial Corporation (NYSE: OCN) (Ocwen, OFC, we, us and our) is a non-bank mortgage servicer and originator providing solutions to homeowners, investors and others through its primary operating subsidiary, PHH Mortgage Corporation (PMC). We are headquartered in West Palm Beach, Florida with offices and operations in the United States (U.S.), the United States Virgin Islands (USVI), India and the Philippines. Ocwen is a Florida corporation organized in February 1988. Ocwen directly or indirectly owns all of the outstanding common stock of its operating subsidiaries, including PMC since its acquisition on October 4, 2018, Ocwen Financial Solutions Private Limited (OFSPL) and Ocwen USVI Services, LLC (OVIS). Effective May 3, 2021, Ocwen holds a 15% equity interest in MAV Canopy HoldCo I, LLC (MAV Canopy) that invests in mortgage servicing assets through its wholly owned licensed mortgage subsidiary MSR Asset Vehicle LLC (MAV). See Note 11 — Investment in Equity Method Investee for additional information. We perform servicing activities related to our own mortgage servicing rights (MSRs) portfolio (primary) and on behalf of other servicers (subservicing), the largest being New Residential Investment Corp. (NRZ), and investors (primary and master servicing), including the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively referred to as GSEs), the Government National Mortgage Association (Ginnie Mae, and together with the GSEs, the Agencies) and private-label securitizations (PLS, or non-Agency). As a subservicer or primary servicer, we may be required to make advances for certain property tax and insurance premium payments, default and property maintenance payments and principal and interest payments on behalf of delinquent borrowers to mortgage loan investors before recovering them from borrowers. Most, but not all, of our subservicing agreements provide for us to be reimbursed for any such advances by the owner of the servicing rights. Advances made by us as primary servicer are generally recovered from the borrower or the mortgage loan investor. As master servicer, we collect mortgage payments from primary servicers and distribute the funds to investors in the mortgage-backed securities. To the extent the primary servicer does not advance the scheduled principal and interest, as master servicer we are responsible for advancing the shortfall, subject to certain limitations. We source our servicing portfolio through multiple channels, including retail, wholesale, correspondent, flow MSR purchase agreements, the Agency Cash Window programs and bulk MSR purchases. We originate, sell and securitize conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as Agency or GSE) loans and government-insured (Federal Housing Administration (FHA) or Department of Veterans Affairs (VA)) forward mortgage loans, generally with servicing retained. The GSEs or Ginnie Mae guarantee these mortgage securitizations. We originate and purchase Home Equity Conversion Mortgage (HECM) loans, or reverse mortgages, that are mostly insured by the FHA and we are an approved issuer of Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae. We had a total of approximately 5,700 employees at December 31, 2021 of which approximately 3,200 were located in India and approximately 500 were based in the Philippines. Our operations in India and the Philippines primarily provide internal support services, principally to our loan servicing business and our corporate functions. Of our foreign-based employees, nearly 70% were engaged in supporting our loan servicing operations as of December 31, 2021. Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation Principles of Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (GAAP). Our consolidated financial statements include the accounts of Ocwen, its wholly-owned subsidiaries and any variable interest entity (VIE) for which we have determined that we are the primary beneficiary. We apply the equity method of accounting to investments where we are able to exercise significant influence, but not control, over the policies and procedures of the entity. We have eliminated intercompany accounts and transactions in consolidation. Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the U.S. dollar. Re-measurement adjustments of foreign-denominated amounts to U.S. dollars are included in Other, net in our consolidated statements of operations. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. Significant Accounting Policies Cash and cash equivalents Cash and cash equivalents includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less. Restricted Cash Restricted cash includes amounts specifically designated to repay debt, to provide over-collateralization for MSR financing facilities, mortgage loan warehouse facilities and match funded debt facilities, and to provide additional collateral to support certain obligations, including letters of credit. Mortgage Servicing Rights MSRs are assets representing our right to service portfolios of mortgage loans. We recognize MSRs when originated or purchased loans are securitized or sold in the secondary market. We also acquire MSRs through flow purchase agreements, Agency Cash Window programs, and bulk acquisition transactions, or through asset purchases or business combination transactions . The unpaid principal balance (UPB) of the loans underlying the MSRs is not included on our consolidated balance sheets. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, we do not recognize an MSR. All newly acquired or retained MSRs are initially measured at fair value. To the extent any portfolio contract is not expected to compensate us adequately for performing the servicing, we would recognize a servicing liability. We define contracts as Agency, government-insured or non-Agency (commonly referred to as non-prime, subprime or private-label loans) based on applicable servicing guidelines, underwriting standards and borrower risk characteristics. We account for servicing assets and servicing liabilities at fair value, and report changes in fair value in earnings (MSR valuation adjustments, net) in the period in which the changes occur. We earn fees for servicing and subservicing both forward and reverse mortgage loans. We collect servicing and subservicing fees, generally expressed as a percent of UPB or fee per loan by loan performing status, from the borrowers’ payments or from the owner of the servicing in subservicing relationships . In addition to servicing and subservicing fees, we also report late fees, prepayment penalties, float earnings and other ancillary fees as revenue in Servicing and subservicing fees in our consolidated statements of operations. We recognize servicing and subservicing fees as revenue when the fees are earned, which is generally when the borrowers’ payments are collected, when loans are modified or liquidated through the sale of the underlying real estate collateral, or when subservicing customers are invoiced. Advances During any period in which a borrower does not make payments, servicing and subservicing agreements may require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing and subservicing contract. Each servicing and subservicing contract is associated with specific loans, identified as a pool. When we make an advance on a loan under each servicing or subservicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from guarantors (GSEs), insurers (FHA/VA) and investors, for modified and liquidated loans. Most of our servicing and subservicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans that are the subject of that servicing or subservicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. Servicing advances are financial assets subject to the credit loss allowance model under Accounting Standards Codification (ASC) 326: Financial Instruments - Credit Losses (CECL), effective January 1, 2020. The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. Expected credit losses on advances are expected to be nil, or de minimis, as advances are generally fully reimbursable or recoverable under the terms of the servicing agreements. GSE and government-insured advances are subject to implicit and government guarantees, respectively, regarding advance reimbursement and the non-Agency pooling and servicing agreement terms regarding advance recovery, the credit loss history and the expectation over the remaining life of the advance portfolio support a zero allowance for credit loss. Servicing advances may also include claimable (with investors) but nonrecoverable expenses, for example due to servicer error, such as lack of reasonable documentation as to the type and amount of advances. Such servicer errors result in the determination that the advance is uncollectible and represent operational losses resulting from not complying with servicing guidelines as established by the respective party (i.e., trustee, master servicer, investor, mortgage insurer). We establish an allowance for such operational losses through a charge to earnings (Servicing and origination expense) to the extent that a portion of advances are uncollectible taking into consideration, among other factors, probability of cure or modification, length of delinquency and the amount of the advance. We also assess collectability using proprietary cash flow projection models that incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, estimated time to a foreclosure sale, estimated costs of foreclosure action, estimated future property tax payments and the estimated value of the underlying property net of estimated carrying costs, commissions and closing costs. Under the terms of our subservicing agreements, we are generally reimbursed by our subservicing clients on a monthly or more frequent basis. For those advances that have been reimbursed, i.e., that are off-balance sheet, if a loss contingency is probable and reasonably estimable, we recognize a loss contingency accrual for the amount of advances deemed uncollectible caused by our failure to comply with the subservicing agreements or our servicing practices. We report such loss contingency within Other liabilities - Liability for indemnification obligations. Loans Held for Sale Loans held for sale include forward and reverse mortgage loans that we do not intend to hold until maturity. We report loans held for sale at either fair value or the lower of cost or fair value computed on an aggregate basis. Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. In addition, effective January 1, 2020, repurchased loans by our Servicing business, including those loans we repurchase from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines, are accounted for under the fair value election. For loans that we elected to measure at fair value on a recurring basis, we report changes in fair value in Gain on loans held for sale, net in the consolidated statements of operations in the period in which the changes occur. These loans are expected to be sold into the secondary market to the GSEs, into Ginnie Mae guaranteed securitizations or to third-party investors. For the legacy portfolio of loans measured at the lower of cost or fair value, we account for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other, net, in the consolidated statements of operations in the period in which the change occurs. We report any gain or loss on the transfer of loans held for sale in Gain on loans held for sale, net in the consolidated statements of operations along with the changes in fair value of the loans and the gain or loss on any related derivatives. Gains or losses on sales or securitizations take into consideration any retained interests, including servicing rights and representation and warranty obligations, both of which are initially recorded at fair value at the date of sale in Gain on loans held for sale, net, in our consolidated statements of operations. We include all changes in loans held for sale and related derivative balances in operating activities in the consolidated statements of cash flows. We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent for more than 89 days, or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse the interest that we have accrued but not yet received. We return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. Loans Held for Investment Originated reverse mortgage loans that are insured by the FHA and pooled into Ginnie Mae guaranteed securities that we sell into the secondary market with servicing rights retained are classified as loans held for investment. We have elected to measure these loans at fair value, with changes in fair value reported in Reverse mortgage revenue, net in the consolidated statements of operations. Loan transfers in these Ginnie Mae securitizations do not meet the definition of a participating interest and as a result, the transfers of the reverse mortgages do not qualify for sale accounting. Therefore, we account for these transfers as financings, with the reverse mortgages classified as Loans held for investment, at fair value, on our consolidated balance sheets, with no gain or loss recognized on the transfer. Effective January 1, 2019, we elected to fair value future draw commitments for HECM loans purchased or originated after December 31, 2018. The value of future draw commitments for HECM loans purchased or originated before January 1, 2019 were recognized as the draws were securitized or sold. Effective January 1, 2020, in connection with the adoption of Accounting Standard Update (ASU) 2016-13 and ASU 2019-04: Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, we made an irrevocable fair value election on all future draw commitments for HECM loans that were purchased or originated before January 1, 2019. We recorded cumulative-effect adjustments of $47.0 million to retained earnings as of January 1, 2020, to reflect the excess of the fair value over the carrying amount. Upfront costs and fees related to loans held for investment, including broker fees, are recognized in Reverse mortgage revenue, net in the consolidated statement of operations as incurred and are not capitalized. Premiums on loans purchased via the correspondent channel are capitalized upon origination because they represent part of the purchase price. However, the loans are subsequently measured at fair value on a recurring basis. We record the proceeds from the transfer of assets as secured borrowings (HMBS-related borrowings) and recognize no gain or loss on the transfer. We measure the HECM loans and HMBS-related borrowings at fair value on a recurring basis. The changes in fair value of the HECM loans and HMBS-related borrowings are included in Reverse mortgage revenue, net in our consolidated statements of operations. Included in net fair value changes on the HECM loans and related HMBS borrowings are the net interest income that we expect to be collected on the HECM loans and the interest expense on the HMBS-related borrowings. In addition, Reverse mortgage revenue, net includes the fair value changes of the interest rate lock commitments related to reverse mortgage loans. We report originations and collections of HECM loans in investing activities in the consolidated statements of cash flows. We report net fair value gains on HECM loans and the related HMBS borrowings as an adjustment to the net cash provided by or used in operating activities in the consolidated statements of cash flows. Proceeds from securitizations of HECM loans and payments on HMBS-related borrowings are included in financing activities in the consolidated statements of cash flows. Transfers of Financial Assets and MSRs We securitize, sell and service forward and reverse residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. We typically retain economic interests in the securitized assets in the form of servicing rights and obligations. In order to efficiently finance our assets and operations and create liquidity, we may sell servicing advances, MSRs or the right to receive certain servicing fees relating to MSRs (Rights to MSRs). In order to determine whether or not a VIE is required to be consolidated, we consider our ongoing involvement with the VIE. In circumstances where we have both the power to direct the activities that most significantly impact the performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be significant, we would conclude that we would consolidate the entity, which precludes us from recording an accounting sale in connection with the transfer of the financial assets. In the case of a consolidated VIE, we continue to report the underlying residential mortgage loans or servicing advances, and we record the securitized debt on our consolidated balance sheet. In the case of transfers where either one or both of the power or economic criteria above are not met, we evaluate whether a sale has occurred for accounting purposes. In order to recognize a sale of financial assets, the transferred assets must be legally isolated, not be constrained by restrictions from further transfer and be deemed to be beyond our control. If the transfer does not meet any of these three criteria, the financial assets are not derecognized and the transaction is accounted for consistent with a secured financing. In certain situations, we may have continuing involvement in transferred loans through our retained servicing. Transactions involving retained servicing would still be eligible for sale accounting, as we have ceded effective control of these loans to the purchaser. A sale of MSRs shall be recognized as a sale for accounting purposes if substantially all the risks and rewards inherent in owning the MSRs have been effectively transferred to the buyer, title has transferred to the buyer and any protection provisions retained by the seller are minor and can be reasonably estimated. In the case of transfers of MSRs accounted for as a sale where we retain the right to subservice, we defer any related gain or loss and amortize the balance over the life of the subservicing agreement. A loss shall be recognized currently if the transferor determines that prepayments of the underlying mortgage loans may result in performing the future servicing at a loss. A sale of mortgage servicing rights with a subservicing contract may not be treated as a sale when the terms of the subservicing contract unduly limit the buyer's ability to exercise ownership control over the servicing rights or results in the seller retaining some of the risks and rewards of ownership. If the buyer cannot cancel or decline to renew the subservicing contract after a reasonable period of time, the buyer is precluded from exercising certain rights of ownership. Conversely, if the seller cannot cancel the subservicing contract after a reasonable period of time, the seller has not transferred substantially all of the risks of ownership. If the criteria for sale recognition are not met, the transferred MSRs are not derecognized and the transaction is accounted for consistent with a secured financing. Accordingly, when a transaction does not achieve sale treatment, we recognize the proceeds received and a corresponding liability, referred to as Pledged MSR liability within Other financing liabilities, that we subsequently remeasure at fair value with changes in fair value reported with in Pledged MSR liability expense in the consolidated statements of operations. In the case of a sale of MSRs accounted for as a secured financing where we retain the right to subservice, no gain or loss is generally recognized on the transfer. A gain or loss may be recognized to the extent the estimated fair value of the pledged MSR liability differs from the total proceeds of the MSR transfer. Subsequent to the determination that a transaction does not meet the accounting sale criteria, we may determine that we meet the criteria. In the event we subsequently meet the accounting sale criteria, we derecognize the transferred assets and related liabilities. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. In connection with the Ginnie Mae early buyout program, our agreements provide either that: (a) we have the right, but not the obligation, to repurchase previously transferred mortgage loans under certain conditions, including the mortgage loans becoming eligible for pooling under a program sponsored by Ginnie Mae; or (b) we have the obligation to repurchase previously transferred mortgage loans that have been subject to a successful trial modification before any permanent modification is made. Once these conditions are met, we have effectively regained control over the mortgage loan(s), and under GAAP, must re-recognize the loans on our consolidated balance sheets and establish a corresponding repurchase liability. With respect to those loans that we have the right, but not the obligation, to repurchase under the applicable agreement, this requirement applies regardless of whether we have any intention to repurchase the loan. We re-recognize the loans in Other assets and a corresponding liability in Other liabilities. Derivative Financial Instruments We use derivative instruments to manage the fair value changes in our MSRs, interest rate lock commitments and loan portfolios which are exposed to interest rate risk. We do not use derivative instruments for trading or speculative purposes. We recognize all derivative instruments at fair value on our consolidated balance sheets in Other assets and Other liabilities. Derivative instruments are generally entered into as economic hedges against changes in the fair value of a recognized asset or liability and are not designated as hedges for accounting purposes. We generally report the changes in fair value of such derivative instruments in the same line item in the consolidated statement of operations as the changes in fair value of the related asset or liability. For all other derivative instruments not designated as a hedging instrument, we report changes in fair value in Other, net. Premises and Equipment, Leases We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on a straight-line basis as follows: Computer hardware and software 2 – 3 years Buildings 40 years Leasehold improvements Term of the lease not to exceed useful life Right of Use (ROU) assets Term of the lease not to exceed useful life Furniture and fixtures 5 years Office equipment 5 years Our leases include non-cancelable operating leases for premises and equipment. At lease commencement and renewal date, we estimate the ROU assets and lease liability at present value using our estimated incremental borrowing rate. We amortize the balance of the ROU assets and recognize interest on the lease liability. Our lease liability represents the present value of the lease payments and is reduced as we make cash payments on our lease obligations. Our ROU lease assets are evaluated for impairment in accordance with ASC 360: Premises and Equipment. Intangible Assets Intangible assets are recorded at their estimated fair value at the date of acquisition. Intangible assets deemed to have a finite useful life are amortized on a basis representative of the time pattern over which the benefit is derived. Intangible assets subject to amortization are evaluated for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable, but no less than annually. An impairment loss is recognized if the carrying value of the intangible asset is not recoverable and exceeds fair value. Intangible assets primarily consist of a subservicing intangible asset acquired in the transaction with Mortgage Assets Management, LLC (formerly known as Reverse Mortgage Solutions, Inc.) (MAM (RMS)) and its then parent on October 1, 2021. This asset is being amortized ratably over the five-year term of the respective subservicing contracts based on portfolio runoff. Intangible assets are included in Other assets, net of accumulated amortization, on our consolidated balance sheets. Investments in Unconsolidated Entities We account for our investments in unconsolidated entities using the equity method. These investments include our investment in MAV Canopy in which we hold a significant, but less than controlling, ownership interest. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that an other-than‐temporary decline in value may have occurred. Litigation We monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish a liability for settlements, judgments on appeal and filed and/or threatened claims for which we believe that it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize legal costs associated with loss contingencies in Professional services expense in the consolidated statement of operations as incurred. Stock-Based Compensation We initially measure the cost of employee services received in exchange for a stock-based award as the fair value of the award on the grant date. For awards which must be settled in cash and are therefore classified as liabilities rather than equity in the consolidated balance sheet, fair value is subsequently remeasured and fair value changes are reported as compensation expense at each reporting date. For equity awards with a service condition, we recognize the cost as compensation expense ratably over the vesting period. For equity awards with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from an options pricing model. When equity awards with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period. For equity awards with both a market condition and a service condition for vesting, we recognize cost as compensation expense over the requisite service period for each tranche of the award using the graded-vesting method. Income Taxes We file consolidated U.S. federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit, based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in Income tax expense. Basic and Diluted Earnings per Share We calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of outstanding options and warrants to purchase common stock using the treasury stock method. Going Concern In accordance with Financial Accounting Standards Board (FASB) ASC 205-40: Presentation of Financial Statements - Going Concern, we evaluate whether there are conditions that are known or reasonably knowable that raise substantial doubt about our ability to continue as a going concern within one year after the date that our financial statements are issued. Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Recently Adopted Accounting Standards Investments—Equity Securities (ASC Topic 321), Investments—Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815) (ASU 2020-01) The amendments in this ASU affect all entities that apply the guidance in ASC Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The amendment |
Securitizations and Variable In
Securitizations and Variable Interests Entities | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Note 2 — Securitizations and Variable Interest Entities We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with asset-backed financing arrangements. We have aggregated these transfers of financial assets and asset-backed financing arrangements using special purpose entities (SPEs) or VIEs into the following groups: (1) securitizations of residential mortgage loans, (2) financings of loans held for sale, (3) financings of advances and (4) MSR financings. Financing transactions that do not use SPEs or VIEs are disclosed in Note 14 — Borrowings. From time to time, we may acquire beneficial interests issued in connection with mortgage-backed securitizations where we may also be the master and/or primary servicer. These beneficial interests consist of subordinate and residual interests acquired from third-parties in market transactions. We consolidate the VIE when we conclude we are the primary beneficiary. Securitizations of Residential Mortgage Loans Transfers of Forward Loans We sell or securitize forward loans that we originate or purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization typically occurs within 30 days of loan closing or purchase. We act only as a fiduciary and do not have a variable interest in the securitization trusts. As a result, we account for these transactions as sales upon transfer. The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Years Ended December 31, 2021 2020 2019 Proceeds received from securitizations $ 19,293,156 $ 7,533,284 $ 1,248,837 Servicing fees collected (1) 63,737 47,230 50,326 Purchases of previously transferred assets, net of claims reimbursed (17,435) (6,933) (4,602) $ 19,339,458 $ 7,573,581 $ 1,294,561 (1) We receive servicing fees based upon the securitized loan balances and certain ancillary fees, all of which are reported in Servicing and subservicing fees in the consolidated statements of operations. In connection with these transfers, we retained MSRs of $222.7 million, $68.7 million and $7.5 million during 2021, 2020 and 2019, respectively. We securitize forward and reverse residential mortgage loans involving the GSEs and loans insured by the FHA or VA through Ginnie Mae. Certain obligations arise from the agreements associated with our transfers of loans. Under these agreements, we may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor or insurer for losses incurred due to material breach of contractual representations and warranties. The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: December 31, 2021 2020 Carrying value of assets MSRs, at fair value $ 360,830 $ 137,029 Advances 151,166 143,361 UPB of loans transferred (1) 31,864,769 18,062,856 Maximum exposure to loss $ 32,376,765 $ 18,343,246 (1) Includes $5.6 billion and $4.1 billion of loans delivered to Ginnie Mae as of December 31, 2021 and 2020, respectively, and includes loan modifications delivered through the Ginnie Mae Early Buyout Program (EBO). At December 31, 2021 and 2020, 3.6% and 6.8%, respectively, of the transferred residential loans that we service were 60 days or more past due, including 60 days or more past due loans under forbearance. This includes 12.0% and 17.1%, respectively, of loans delivered to Ginnie Mae that are 60 days or more past due. Transfers of Reverse Mortgages We pool HECM loans into HMBS that we sell into the secondary market with servicing rights retained or we sell the loans to third parties with servicing rights released. We have determined that loan transfers in the HMBS program do not meet the definition of a participating interest and the servicing requirements require the issuer/servicer to absorb some level of interest rate risk, cash flow timing risk and incidental credit risk. As a result, the transfers of the HECM loans do not qualify for sale accounting, and therefore, we account for these transfers as financings. Under this accounting treatment, the HECM loans are classified as Loans held for investment, at fair value, on our consolidated balance sheets. Holders of participating interests in the HMBS have no recourse against the assets of Ocwen, except with respect to standard representations and warranties and our contractual obligation to service the HECM loans and the HMBS. Financing of Loans Held for Sale using SPEs In 2021, we entered into a warehouse mortgage loan financing facility with a third-party lender involving an SPE (trust). This facility is structured as a gestation repurchase facility whereby Agency mortgage loans are transferred by PMC to the trust for collateralization purposes. We have determined that the trust is a VIE for which we are the primary beneficiary. Therefore, we have included the trust in our consolidated financial statements. We have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance given we are the sole beneficial owner of the certificates issued by the trust and the servicer of the mortgage loans that result in cash flows to the trust, In addition, we have designed the trust at inception to facilitate the funding facility. The table below presents the carrying value and classification of the assets and liabilities of the loans held for sale financing facility: December 31, 2021 Mortgage loans (Loans held for sale, at fair value) $ 462,144 Outstanding borrowings (Mortgage loan warehouse facilities) 459,344 Financings of Advances using SPEs Match funded advances, i.e., advances that are pledged as collateral to our advance facilities, result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because we have determined that we are the primary beneficiary of the SPEs. Through wholly-owned subsidiaries we hold the sole equity interests in the SPEs and service the mortgage loans that generate the advances. These SPEs issue debt supported by collections on the transferred advances, and we refer to this debt as Advance match funded liabilities. We make transfers to these SPEs in accordance with the terms of our advance financing facility agreements. Debt service accounts require us to remit collections on pledged advances to the trustee within two days of receipt. Collected funds that are not applied to reduce the related Advance match funded debt until the payment dates specified in the indenture are classified as debt service accounts within Restricted cash in our consolidated balance sheets. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest, as well as amounts set aside as required by our warehouse facilities as security for our obligations under the related agreements. The funds are held in interest earning accounts and those amounts related to match funded advance facilities are held in the name of the SPE created in connection with the facility. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the SPE. Holders of the debt issued by these entities have recourse only to the assets of the SPE for satisfaction of the debt. Amounts due to affiliates are eliminated in consolidation in our consolidated balance sheets. The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: December 31, 2021 2020 Match funded advances (Advances, net) $ 587,059 $ 651,576 Debt service accounts (Restricted cash) 7,687 14,195 Unamortized deferred lender fees (Other assets) 1,305 4,253 Prepaid interest (Other assets) 225 291 Advance match funded liabilities 512,297 581,288 MSR Financings using SPEs In 2019, we entered into a financing facility with a third-party secured by certain Fannie Mae and Freddie Mac MSRs (Agency MSRs). Two SPEs (trusts) were established in connection with this facility. On July 1, 2019, we also entered into an MSR Excess Spread Participation Agreement under which we created a 100% participation interest in the Portfolio Excess Servicing Fees, pursuant to which the holder of the participation interest is entitled to receive certain funds collected on the related portfolio of mortgage loans (other than ancillary income and advance reimbursement amounts) with respect to such Portfolio Excess Servicing Fees. This participation interest has been contributed to the trusts. We pledged the membership interest of the depositor for our OMART advance financing facility as additional collateral to this facility. In connection with this facility, we entered into repurchase agreements with a third-party pursuant to which we sold trust certificates of the trusts representing certain indirect economic interests in the Agency MSRs and agreed to repurchase such certificates at a future date at the repurchase price set forth in the repurchase agreements. Our obligations under the facility are secured by a lien on the related Agency MSRs. In addition, Ocwen guarantees the obligations under the facility. We determined that the trusts are VIEs for which we are the primary beneficiary. Therefore, we have included the trusts in our consolidated financial statements. We have the power to direct the activities of the VIEs that most significantly impact the VIE’s economic performance given that we are the servicer of the Agency MSRs that result in cash flows to the trusts. In addition, we have designed the trusts at inception to facilitate the third-party funding facility under which we have the obligation to absorb the losses of the VIEs that could be potentially significant to the VIEs. The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility: December 31, 2021 2020 MSRs pledged (MSRs, at fair value) $ 630,605 $ 476,371 Unamortized deferred lender fees (Other assets) 1,495 1,183 Debt service account (Restricted cash) 104 211 Outstanding borrowings (MSR financing facilities, net) 317,523 210,755 In 2019, we issued Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A (PLS Notes) secured by certain of PMC’s private label MSRs (PLS MSRs). PMC PLS ESR Issuer LLC (PLS Issuer) was established in this connection as a wholly owned subsidiary of PMC. PMC entered into an MSR Excess Spread Participation Agreement with PLS Issuer. PMC created a participation interest in the Excess Servicing Fees, related float and REO fees pursuant to which the holder of the participation interest will be entitled to receive such Excess Servicing Fees, related float and REO fees. PMC holds the MSRs and services the loans which create the related excess cash flows pledged under the MSR Excess Spread Participation Agreement. PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. PMC sold a participation certificate representing certain economic interests in the PLS MSRs and in order to secure its obligations under the participation certificate, it granted a security interest to PLS Issuer in the PLS MSRs. The PLS Issuer assigned the security interest in the PLS MSRs to the collateral agent for the noteholders. Ocwen guarantees the obligations of PLS Issuer under the facility. We determined that PLS Issuer is a VIE for which we are the primary beneficiary. Therefore, we have included PLS Issuer in our consolidated financial statements. We have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance given that we are the servicer of the MSRs that result in cash flows to PLS Issuer. In addition, PMC has designed PLS Issuer at inception to facilitate the funding for general corporate purposes. Separately, in return for the participation interests, PMC received the proceeds from issuance of the PLS Notes. PMC is the sole member of PLS Issuer, thus PMC has the obligation to absorb the losses of the VIE that could be potentially significant to the VIE. The table below presents the carrying value and classification of the assets and liabilities of the PLS Notes facility: December 31, 2021 2020 MSRs pledged (MSRs, at fair value) $ 99,833 $ 129,204 Debt service account (Restricted cash) 1,968 2,385 Outstanding borrowings (MSR financing facilities, net) 41,663 68,313 Unamortized debt issuance costs (MSR financing facilities, net) 413 894 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 3 — Fair Value Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. We classify assets in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: December 31, 2021 2020 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 917,534 $ 917,534 $ 366,364 $ 366,364 Loans held for sale, at lower of cost or fair value (b) 3 10,993 10,993 21,472 21,472 Total Loans held for sale $ 928,527 $ 928,527 $ 387,836 $ 387,836 December 31, 2021 2020 Level Carrying Value Fair Value Carrying Value Fair Value Loans held for investment Loans held for investment - Reverse mortgages (a) 3 $ 7,199,762 $ 7,199,762 $ 6,997,127 $ 6,997,127 Loans held for investment - Restricted for securitization investors (a) 3 7,879 7,879 9,770 9,770 Total loans held for investment 7,207,641 7,207,641 7,006,897 7,006,897 Advances, net (c) 3 772,433 772,433 828,239 828,239 Receivables, net (c) 3 180,707 180,707 187,665 187,665 Mortgage-backed securities (a) 3 1 1 2,019 2,019 Corporate bonds (a) 2 211 211 211 211 Investment in equity method investee (c) 3 23,297 23,297 — — Financial liabilities: Advance match funded liabilities (c) 3 $ 512,297 $ 511,994 $ 581,288 $ 581,997 Financing liabilities: HMBS-related borrowings (a) 3 $ 6,885,022 $ 6,885,022 $ 6,772,711 $ 6,772,711 Other financing liabilities: Financing liability - Pledged MSR liability (a) 3 797,084 797,084 566,952 566,952 Financing liability - Owed to securitization investors (a) 3 7,879 7,879 9,770 9,770 Total Other financing liabilities $ 804,963 $ 804,963 $ 576,722 $ 576,722 Mortgage loan warehouse facilities (c) 3 $ 1,085,076 $ 1,085,076 $ 451,713 $ 451,713 MSR financing facilities (c) (d) 3 900,760 873,820 437,672 406,860 Senior secured term loan (c) (d) 2 $ — $ — $ 179,776 $ 184,639 Senior notes: PMC & PHH Senior notes (c) (d) (f) 2 392,555 413,472 311,898 320,879 OFC Senior notes due 2027 (c) (d) (f) 3 222,242 261,455 — — Total Senior notes $ 614,797 $ 674,927 $ 311,898 $ 320,879 Derivative financial instrument assets (liabilities) Interest rate lock commitments (a) 3 $ 18,084 $ 18,084 $ 22,706 $ 22,706 Forward trades - Loans held for sale (a) 1 364 364 (50) (50) TBA / Forward mortgage-backed securities (MBS) trades (a) 1 (287) (287) (4,554) (4,554) Interest rate swap futures (a) 1 1,734 1,734 504 504 TBA forward Pipeline trades (a) 1 48 48 — — Option contracts (a) 2 (277) (277) — — Other (a) 3 (1,070) (1,070) — — MSRs (a) 3 $ 2,250,147 $ 2,250,147 $ 1,294,817 $ 1,294,817 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Disclosed, but not measured, at fair value. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 14 — Borrowings for additional information . (e) Loans repurchased from Ginnie Mae securitizations with a fair value of $220.9 million and $51.1 million at December 31, 2021 and 2020, respectively, are classified as Level 3. The remaining balance of loans held for sale at fair value is classified as Level 2. (f) On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of senior secured notes. Fair value is based on valuation data obtained from a pricing service. Therefore, these notes are classified as Level 2. Additionally on March 4, 2021 and May 3, 2021, Ocwen completed the private placement of $199.5 million and $85.5 million, respectively, aggregate principal amount of senior secured second lien notes. These notes are classified as Level 3. See Note 14 — Borrowings for additional information. The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis: Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2021 Beginning balance $ 9,770 $ (9,770) 51,072 $ 2,019 $ 22,706 Purchases, issuances, sales and settlements Purchases — — 436,154 — — Issuances (1) — — — — 627,677 Sales — — (259,995) (1,617) — Settlements (1,891) 1,891 — — — Transfers to: Loans held for sale, at fair value (1) — — — — (591,701) Receivables, net — — (1,644) — — Other assets — — (377) — — (1,891) 1,891 174,138 (1,617) 35,976 Change in fair value included in earnings (1) — — (4,270) (401) (40,597) Transfers in and / or out of Level 3 — — — — — Ending balance $ 7,879 $ (7,879) $ 220,940 $ 1 $ 18,085 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs for 2021 is a $4.6 million loss. See Note 17 — Derivative Financial Instruments and Hedging Activities. Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2020 Beginning balance $ 23,342 $ (22,002) $ — $ 2,075 $ — Purchases, issuances, sales and settlements Purchases — — 162,589 — — Issuances — — — — 286,992 Deconsolidation of mortgage-backed securitization trusts (10,715) 9,519 — — — Sales — — (137,780) — — Settlements (2,857) 2,857 — — — Transfers (to) from: Loans held for sale, at fair value — — — — (285,198) Receivables, net — — (969) — — (13,572) 12,376 23,840 — 1,794 Change in fair value included in earnings — (144) 1,650 (56) 10,434 Transfers in and / or out of Level 3 — — 25,582 — 10,478 Ending balance $ 9,770 $ (9,770) $ 51,072 $ 2,019 $ 22,706 Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Mortgage-Backed Securities Derivatives - Interest Rate Caps Year Ended December 31, 2019 Beginning balance $ 26,520 $ (24,815) $ 1,502 $ 678 Purchases, issuances, sales and settlements Purchases — — — — Issuances — — — — Sales — — — — Settlements (3,178) 2,813 — — (3,178) 2,813 — — Change in fair value included in earnings — — 573 (678) Ending balance $ 23,342 $ (22,002) $ 2,075 $ — A reconciliation from the beginning balances to the ending balances of Loans Held for Investment and HMBS-related borrowings, MSRs and Pledged MSR liability that we measure at fair value on a recurring and non-recurring basis is disclosed in Note 5 – Reverse Mortgages, Note 7 — Mortgage Servicing and Note 8 — MSR Transfers Not Qualifying for Sale Accounting, respectively. The methodologies that we use and key assumptions that we make to estimate the fair value of financial instruments and other assets and liabilities measured at fair value on a recurring or non-recurring basis and those disclosed, but not carried, at fair value are described below. Loans Held for Sale Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. Such loans are subject to changes in fair value due to fluctuations in interest rates from the closing date through the date of the sale of the loan into the secondary market. These loans are generally classified within Level 2 of the valuation hierarchy because the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conventional and government-insured mortgage loans are typically sold. We purchase certain loans from Ginnie Mae guaranteed securitizations in connection with loan modifications, strategic EBO and loan resolution activity as part of our contractual obligations as the servicer of the loans. Effective January 1, 2020, we elected to classify any repurchased loans as loans held for sale at fair value as we expect to redeliver (sell) the loans into new Ginnie Mae guaranteed securitizations (in the case of modified loans) or sell the loans to a private investor (in the case of EBO loans). Modified and EBO loans purchased before January 1, 2020 are classified as loans held for sale at the lower of cost or fair value. The fair value of these loans is estimated using both observable and unobservable inputs, including published forward Ginnie Mae prices or existing sale contracts, as well as estimated default, prepayment, and discount rates. The significant unobservable input in estimating fair value is the estimated default rate. Accordingly, these repurchased Ginnie Mae loans are classified as Level 3 within the valuation hierarchy. Loans repurchased in connection with loan resolution activities are classified as receivables. Because these loans are insured or guaranteed by the FHA or VA, the fair value of these loans represents the net recovery value taking into consideration the insured or guaranteed claim. When we enter into an agreement to sell a loan or pool of loans to an investor at a set price, we value the loan or loans at the commitment price, unless facts and circumstances exist that could impact deal economics, at which point we use judgment to determine appropriate adjustments to recorded fair value, if any. We determine the fair value of loans for which we have no agreement to sell on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Loans Held for Investment Loans Held for Investment - Reverse Mortgages We measure these loans at fair value based on the expected future cash flows discounted over the expected life of the loans at a rate commensurate with the risk of the estimated cash flows, including future draw commitments for HECM loans. Inputs of the discounted cash flows of these assets include future draws and tail securitization spreads, conditional prepayment rate (including voluntary and involuntary prepayments) and discount rate. We engage third-party valuation experts in the determination of fair value. While the models and related assumptions used by the valuation experts are proprietary to them, we understand the methodologies, the significant inputs and the assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We evaluate the reasonableness of our third party experts’ assumptions using historical experience, or cash flow backtesting, adjusted for prevailing market conditions. The fair value is equal to the third-party valuation expert fair value mark. Significant unobservable assumptions include conditional prepayment rate and discount rate. The conditional prepayment rate assumption displayed in the table below is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates. December 31, Significant unobservable assumptions 2021 2020 Life in years Range 1.0 to 8.2 0.9 to 8.0 Weighted average 5.7 5.9 Conditional prepayment rate, including voluntary and involuntary prepayments Range 11.2% to 36.6% 10.6% to 28.8% Weighted average 16.0 % 15.4 % Discount rate 2.6 % 1.9 % Significant increases or decreases in any of these assumptions in isolation could result in a significantly lower or higher fair value, respectively. The effects of changes in the assumptions used to value the securitized loans held for investment, excluding future draw commitments, are partially offset by the effects of changes in the assumptions used to value the HMBS-related borrowings that are associated with these loans. Loans Held for Investment – Restricted for securitization investors We have elected to measure loans held by consolidated mortgage-backed securitization trusts at fair value. The loans are secured by first liens on single family residential properties. Fair value is based on proprietary cash flow modeling processes from a third-party broker/dealer and a third-party valuation expert. Significant assumptions used in the valuation include projected monthly payments, projected prepayments and defaults, property liquidation values and discount rates. MSRs We determine the fair value of MSRs primarily using discounted cash flow methodologies. The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We engage third-party valuation experts who generally utilize: (a) transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; and/or (b) industry-standard modeling, such as a discounted cash flow model and prepayment model, in arriving at their estimate of fair value. The prices provided by the valuation experts reflect their observations and assumptions related to market activity, incorporating available industry survey results and client feedback, and including risk premiums and liquidity adjustments. While the models and related assumptions used by the valuation experts are proprietary to them, we understand the methodologies and assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We believe that the procedures executed by the valuation experts, supported by our verification and analytical procedures, provide reasonable assurance that the prices used in our consolidated financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use. We evaluate the reasonableness of our third-party experts’ assumptions using historical experience adjusted for prevailing market conditions. Assumptions used in the valuation of MSRs include: • Mortgage prepayment speeds • Delinquency rates • Cost of servicing • Interest rate used for computing float earnings • Discount rate • Compensating interest expense • Interest rate used for computing the cost of financing servicing advances • Collection rate of other ancillary fees • Curtailment on advances MSRs are carried at fair value and classified within Level 3 of the valuation hierarchy. The fair value is equal to the fair value mark provided by the third-party valuation experts, without adjustment, except in the event we have a potential or completed sale, including transactions where we have executed letters of intent, in which case the fair value of the MSRs is recorded at the estimated sale price. Fair value reflects actual Ocwen sale prices for orderly transactions where available in lieu of independent third-party valuations. Our valuation process includes discussions of bid pricing with the third-party valuation experts and are contemplated along with other market-based transactions in their model validation. A change in the valuation inputs or assumptions may result in a significantly higher or lower fair value measurement. Changes in market interest rates predominantly impact the fair value of Agency MSRs via prepayment speeds by altering the borrower refinance incentive and the non-Agency MSRs due to the impact on advance funding costs. The significant unobservable assumptions used in the valuation of these MSRs include prepayment speeds, delinquency rates, cost to service and discount rates. December 31, Significant unobservable assumptions 2021 2020 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 8.5 % 12.1 % 11.8 % 11.5 % Weighted average lifetime delinquency rate 1.2 % 11.9 % 3.0 % 28.0 % Weighted average discount rate 8.5 % 11.2 % 9.2 % 11.4 % Weighted average cost to service (in dollars) $ 71 $ 205 $ 79 $ 270 Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates, an improving housing market or expanded product availability (as prepayments increase) and increase in periods of rising interest rates, a deteriorating housing market or reduced product availability (as prepayments decrease). The following table summarizes the estimated change in the value of the MSRs as of December 31, 2021 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Weighted average prepayment speeds $ (62,497) $ (121,391) Weighted average discount rate (63,711) (114,336) The sensitivity analysis measures the potential impact on fair values based on hypothetical changes, which in the case of our portfolio at December 31, 2021 are increased prepayment speeds and an increase in the yield assumption. Advances We value advances at their net realizable value, which generally approximates fair value. Servicing advances have no stated maturity and do not bear interest. Principal and interest advances are generally realized within a relatively short period of time. The timing of recovery of taxes, insurance and other corporate advances depends on the underlying loan attributes, performance, and in many cases, foreclosure or liquidation timeline. The fair value adjustment to servicing advances associated with the estimated time to recover such advances is separately measured and reported as a component of the fair value of the associated MSR, consistent with actual market transactions. Refer to MSRs above for a description of the valuation methodology and assumptions related to the cost of financing servicing advances and discount rate, among other factors. Receivables The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization. Investment in Equity Method Investee Our investment in equity method investee is accounted for using the equity method and classified as Level 3 within the valuation hierarchy. The assets, including MSRs and MSR related assets, and liabilities of the investee are carried at fair value or a value that approximates fair value. Accordingly, the investee’s net asset value approximates its fair value, and its earnings or losses reflect the change in its net asset value, resulting in our recorded investment approximating fair value. See Note 11 — Investment in Equity Method Investee for further details. Advance Match Funded Liabilities For advance match funded liabilities that bear interest at a rate that is adjusted regularly based on a market index, the carrying value approximates fair value. For advance match funded liabilities that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We assume the notes are refinanced at the end of their revolving periods, consistent with how we manage our advance facilities. Financing Liabilities HMBS-Related Borrowings HMBS-related borrowings are carried at fair value. These borrowings are not actively traded, and therefore, quoted market prices are not available. We determine fair value using a discounted cash flow approach, by discounting the projected recovery of principal and interest over the estimated life of the borrowing at a market rate commensurate with the risk of the estimated cash flows. We engage third-party valuation experts to support our valuation and provide observations and assumptions related to market activities. The fair value is equal to the fair value mark provided by a third-party valuation expert. We evaluate the reasonableness of our fair value estimate and assumptions using historical experience, or cash flow backtesting, adjusted for prevailing market conditions and benchmarks with third-party expert valuations. Significant unobservable assumptions include conditional prepayment rate and discount rate. The yield spread and discount rate assumption for these liabilities are primarily based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates. December 31, Significant unobservable assumptions 2021 2020 Life in years Range 1.0 to 8.2 0.9 to 8.0 Weighted average 5.7 5.9 Conditional prepayment rate Range 11.2% to 36.6% 10.6% to 28.8% Weighted average 16.0 % 15.4 % Discount rate 2.5 % 1.7 % Significant increases or decreases in any of these assumptions in isolation could result in a significantly higher or lower fair value, respectively. The effects of changes in the assumptions used to value the HMBS-related borrowings are partially offset by the effects of changes in the assumptions used to value the associated pledged loans held for investment, excluding future draw commitments. Pledged MSR Liabilities Pledged MSR liabilities are carried at fair value and classified as Level 3 within the valuation hierarchy. We recognize the proceeds received in connection with MSRs transferred or sold in transactions which did not initially qualify for sale accounting treatment as a secured financing that we account for at fair value. We determine the fair value of the pledged MSR liability following a similar approach as for the associated transferred MSRs. Fair value of the pledged MSR liability in connection with the MAV MSR transactions is determined using the fair value mark provided by third-party valuation expert, consistent with the associated MSR, using the same methodology and assumptions, while considering cash flows contractually retained by PMC. Fair value for the portion of the borrowing attributable to the MSRs underlying the Rights to MSRs in connection with NRZ transactions is determined using the fair value mark provided by the third-party valuation experts. Fair value for the portion of the borrowing attributable to any lump sum payments received in connection with the transfer of MSRs underlying such Rights to MSRs to the extent such transfer is accounted for as a financing is determined by discounting the relevant future cash flows that were altered through such transfer using assumptions consistent with the fair value mark provided by the third-party valuation experts for the related MSR. December 31, Significant unobservable assumptions 2021 2020 Weighted average prepayment speed 10.9 % 11.5 % Weighted average delinquency rate 8.8 % 29.8 % Weighted average discount rate 10.5 % 11.4 % Weighted average cost to service (in dollars) $ 182 $ 287 Significant increases or decreases in these assumptions in isolation would result in a significantly higher or lower fair value. Financing Liability – Owed to Securitization Investors Consists of securitization debt certificates due to third parties that represent beneficial ownership interests in mortgage-backed securitization trusts that we include in our consolidated financial statements. We determine fair value using the measurement alternative to ASC Topic 820: Fair Value Measurement. In accordance with the measurement alternative, the fair value of the consolidated securitization debt certificates is measured as the fair value of the loans held by the trust less the fair value of the beneficial interests held by us in the form of residual securities. Mortgage Loan Warehouse Facilities Our mortgage loan warehouse facilities bear interest at a rate that is adjusted regularly based on a market index. The carrying value of the outstanding borrowings under these revolving facilities approximates fair value. MSR Financing Facilities Our MSR financing facilities bear interest at a rate that is adjusted regularly based on a market index. The carrying value of the outstanding borrowings under these facilities approximates fair value. In 2014, we issued Ocwen Asset Servicing Income Series (OASIS), Series 2014-1 Notes secured by Ocwen-owned MSRs relating to Freddie Mac mortgages. In 2019, we issued Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 notes secured by certain of PMC’s private label MSRs. We determine the fair value of these notes based on bid prices provided by third parties involved in the issuance and placement of the notes. Senior Notes We base the fair value on quoted prices in a market with available limited trading activity, or on valuation data obtained from a pricing service in the absence of trading data. Derivative Financial Instruments Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant (locked pipeline), whereby the interest rate is set prior to funding. Fair value amounts of IRLCs are adjusted for expected “fallout” (locked pipeline loans not expected to close) using models that consider cumulative historical fallout rates and other factors. IRLCs are classified as Level 3 assets as fallout rates were determined to be significant unobservable assumptions. We entered into forward MBS trades to provide an economic hedge against changes in the fair value of residential forward and reverse mortgage loans held for sale that we carry at fair value until August 2019 and, beginning in September 2019, to hedge our net MSR portfolio. We use derivative instruments, including forward trades of MBS or Agency “to be announced” securities (TBAs) and exchange-traded interest rate swap futures, as economic hedging instruments. Forward contracts, TBAs and interest rate swap futures are actively traded in the market and we obtain unadjusted market quotes for these derivatives; thus, they are classified within Level 1 of the valuation hierarchy. In addition, we may use interest rate caps to minimize future interest rate exposure on variable rate debt issued on servicing advance financing facilities from increases in one-month or three-month Eurodollar rate (1ML or 3ML, respectively) interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk. |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans Held for Sale | Note 4 — Loans Held for Sale Loans Held for Sale - Fair Value Years Ended December 31, 2021 2020 2019 Beginning balance $ 366,364 $ 208,752 $ 176,525 Originations and purchases 19,972,375 7,552,026 1,168,885 Proceeds from sales (19,279,150) (7,344,151) (1,124,247) Principal collections (58,603) (25,976) (23,116) Transfers from (to): Loans held for investment, at fair value 4,271 3,084 1,892 Receivables (33,638) (85,001) (2,480) REO (Other assets) (8,438) (3,657) (2,520) Gain (loss) on sale of loans (69,927) 50,248 25,253 Capitalization of advances on Ginnie Mae modifications 24,752 12,789 — Increase (decrease) in fair value of loans (948) 1,075 (589) Other 474 (2,825) (10,851) Ending balance (1) (2) $ 917,534 $ 366,364 $ 208,752 (1) At December 31, 2021, 2020 and 2019, the balances include $(4.4) million, $(6.7) million and $(7.8) million, respectively, of fair value adjustments. (2) At December 31, 2021 and 2020, the balances include $220.9 million and $51.1 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. Effective January 1, 2020, we elected to classify repurchased loans as Loans held for sale at fair value. See table below for the December 31, 2019 balance. We may repurchase loans that have been modified, to facilitate loss reduction strategies, or as otherwise obligated as a Ginnie Mae servicer. Repurchased loans may be modified or otherwise remediated through loss mitigation activities, may be sold to a third party, or are reclassified to Receivables. Loans Held for Sale - Lower of Cost or Fair Value Years Ended December 31, 2021 2020 2019 Beginning balance - before Valuation allowance $ 27,652 $ 73,160 $ 77,666 Purchases (1) — — 320,089 Proceeds from sales (10,607) (58,575) (221,471) Principal collections (989) (1,842) (11,304) Transfers from (to): Receivables, net (1,020) 61 (104,635) REO (Other assets) — — (4,116) Gain on sale of loans 549 11,189 4,974 Capitalization of advances on Ginnie Mae modifications — — 2,485 Other (220) 3,659 9,472 Ending balance - before Valuation allowance (2) 15,365 27,652 73,160 Beginning balance - Valuation allowance $ (6,180) $ (6,643) $ (11,569) (Provision for) reversal of valuation allowance 1,802 (1,144) (2,537) Transfer to (from) Liability for indemnification obligations (Other liabilities) 7 (68) (403) Sales of loans — 1,675 7,866 Ending balance - Valuation allowance (4,372) (6,180) (6,643) Ending balance, net $ 10,993 $ 21,472 $ 66,517 (1) We elected the fair value option for all newly repurchased loans after December 31, 2019. (2) At December 31, 2021, 2020 and 2019, the balances include $2.7 million, $12.5 million and $60.6 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. Years Ended December 31, Gains on Loans Held for Sale, Net 2021 2020 2019 Gain on sales of loans, net MSRs retained on transfers of forward mortgage loans $ 222,715 $ 68,734 $ 7,458 Gain (loss) on sale of forward mortgage loans (1) (2) (87,850) 45,459 25,310 Gain on sale of repurchased Ginnie Mae loans (2) 18,358 15,947 4,764 153,223 130,140 37,532 Change in fair value of IRLCs (6,152) 17,479 756 Change in fair value of loans held for sale 1,934 2,280 3,005 Gain (loss) on economic hedge instruments (3) 1,483 (10,069) (2,689) Other (4,733) (2,594) (304) $ 145,755 $ 137,236 $ 38,300 (1) Includes $27.1 million gain in 2021 related to loans purchased through the exercise of our servicer call rights with respect to certain Non-Agency trusts and sold, servicing released, in 2021. (2) Realized gain (loss) on sale of loans, excluding retained MSR. |
Reverse Mortgages
Reverse Mortgages | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Reverse Mortgages | Note 5 – Reverse Mortgages Years Ended December 31, 2021 2020 2019 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (2) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (2) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 6,997,127 $ (6,772,711) $ 6,269,596 $ (6,063,435) $ 5,472,199 $ (5,380,448) Cumulative effect of fair value election (1) — — 47,038 — — — Originations 1,763,418 — 1,203,645 — 1,026,154 — Securitization of HECM loans accounted for as a financing (incl. realized fair value changes) — (1,674,914) — (1,232,641) — (962,113) Additional proceeds from securitization of HECM loans and tails — (44,613) — (40,934) — (19,086) Repayments (principal payments received) (1,626,428) 1,614,295 (944,699) 935,778 (558,720) 549,600 Transfers from (to): Loans held for sale, at fair value (3,383) — (3,084) — (1,892) — Receivables, net (333) — (236) — (327) — REO (Other assets) (348) — (511) — (513) — Change in fair value 69,709 (7,079) 425,378 (371,479) 332,695 (251,388) Ending Balance $ 7,199,762 $ (6,885,022) $ 6,997,127 $ (6,772,711) $ 6,269,596 $ (6,063,435) Securitized loans (pledged to HMBS-Related Borrowings) $ 6,979,100 $ (6,885,022) $ 6,872,252 $ (6,772,711) $ 6,120,933 $ (6,063,435) Unsecuritized loans 220,662 124,875 148,663 Total $ 7,199,762 $ 6,997,127 $ 6,269,596 (1) In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020. (2) Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is 1ML plus an applicable margin based on the pass-through rate of the loans. See Note 2 — Securitizations and Variable Interest Entities. Reverse Mortgage Revenue, Net Years Ended December 31, 2021 2020 2019 Gain on new originations (1) $ 64,971 $ 46,326 $ 17,849 Change in fair value of securitized loans held for investment and HMBS-related borrowings, net (2,341) 7,573 63,459 Change in fair value included in earnings, net 62,630 53,899 81,308 Loan fees and other 17,046 6,827 5,001 $ 79,676 $ 60,726 $ 86,309 (1) Includes the changes in fair value of newly originated loans held for investment in the period through securitization date. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2021 | |
Advances [Abstract] | |
Advances | Note 6 — Advances December 31, 2021 2020 Principal and interest $ 228,041 $ 277,132 Taxes and insurance 381,025 364,593 Foreclosures, bankruptcy, REO and other 170,385 192,787 779,451 834,512 Allowance for losses (7,018) (6,273) Advances, net $ 772,433 $ 828,239 The following table summarizes the activity in net advances: Years Ended December 31, 2021 2020 2019 Beginning balance - before Allowance for Losses $ 834,512 $ 1,066,448 $ 1,209,935 Asset acquisition 6,916 14 1,457 New advances 831,208 890,389 671,673 Sales of advances (1,272) (834) (11,791) Collections of advances and other (891,914) (1,121,505) (804,826) Ending balance - before Allowance for Losses 779,451 834,512 1,066,448 Beginning balance - Allowance for Losses $ (6,273) $ (9,925) $ (23,259) Provision expense (8,107) (7,790) (3,220) Net charge-offs and other (1) 7,361 11,442 16,554 Ending balance - Allowance for Losses (7,018) (6,273) (9,925) Ending balance, net $ 772,433 $ 828,239 $ 1,056,523 (1) Net change for the year ended December 31, 2019 includes $18.0 million allowance related to sold advances presented in Other liabilities (Liability for indemnification obligations). |
Mortgage Servicing
Mortgage Servicing | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing | Note 7 — Mortgage Servicing During each period, we remeasure our MSRs at fair value, which contemplates the receipt or nonreceipt of the servicing income for that period. The servicing income, including expectations of future servicing cash flows, are inputs for the measurement of the MSR fair value. The net result on the statement of operations is that we record the contractual cash received in each period as revenue within Servicing and subservicing fees, partially offset by the remeasurement of the MSR fair value within MSR valuation adjustments, net. Mortgage Servicing Rights – Fair Value Measurement Method Years Ended December 31, 2021 2020 2019 Agency Non-Agency Total Agency Non-Agency Total Agency Non-Agency Total Beginning balance $ 578,957 $ 715,860 $ 1,294,817 $ 714,006 $ 772,389 $ 1,486,395 $ 865,587 $ 591,562 $ 1,457,149 Sales — — — — (143) (143) (3,578) (766) (4,344) Additions: Recognized on the sale of residential mortgage loans 222,715 — 222,715 68,734 — 68,734 8,795 — 8,795 Purchase of MSRs 844,122 — 844,122 285,134 — 285,134 153,505 — 153,505 Servicing transfers and adjustments (1) 117 (10,899) (10,782) (266,248) 403 (265,845) — (7,309) (7,309) Changes in fair value: Changes in valuation inputs or assumptions (2) 62,437 87,077 149,514 (145,308) 37,257 (108,051) (192,323) 268,208 75,885 Realization of cash flows (2) (136,511) (113,728) (250,239) (77,361) (94,046) (171,407) (117,980) (79,306) (197,286) Ending balance $ 1,571,837 $ 678,310 $ 2,250,147 $ 578,957 $ 715,860 $ 1,294,817 $ 714,006 $ 772,389 $ 1,486,395 (1) Servicing transfers and adjustments include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the PMC subservicing agreement by NRZ. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for further information. (2) Effective January 1, 2021, changes in fair value due to actual versus model variances are presented as Changes in valuation inputs or assumptions. Activity for 2020 and 2019 in the table above has been recast to conform to current year disclosure, resulting in a $1.8 million and $18.1 million gain, respectively, reclassified from Realization of expected cash flows to Changes in valuation inputs or assumptions. December 31, 2021 December 31, 2020 Fair Value UPB Fair Value UPB Owned MSRs $ 1,422,546 $ 127,919,800 $ 727,865 $ 90,174,495 NRZ transferred MSRs (1) (2) 558,940 53,652,843 566,952 64,061,198 MAV transferred MSRs (1) 268,661 24,018,904 — — Total MSR UPB $ 2,250,147 $ 205,591,547 $ 1,294,817 $ 154,235,693 (1) MSRs subject to sale agreements with NRZ and MAV that do not meet sale accounting criteria. During 2021, we transferred MSRs with a UPB of $24.9 billion to MAV. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. (2) At December 31, 2021, the title of the MSR transferred to NRZ is retained by Ocwen for $12.1 billion of UPB and transferred to NRZ for $41.5 billion of UPB. We purchased MSRs with a UPB of $75.6 billion, $31.7 billion and $14.6 billion during 2021, 2020 and 2019, respectively. Purchases during 2021 include a bulk MSR acquisition of performing GSE loans from an unrelated third party effective June 1, 2021, with a UPB and fair value of $46.8 billion and $575.3 million, respectively. We sold MSRs with a UPB of $32.0 million, $80.0 million and $140.8 million during 2021, 2020 and 2019, respectively, to unrelated third parties, mostly to Freddie Mac under the Voluntary Partial Cancellation (VPC) program for delinquent loans. The sales in 2019 of $140.8 million UPB were non-Agency MSRs. At December 31, 2021, the S&P Global Ratings, Inc.’s (S&P) servicer ratings outlook for PMC is stable. On June 29, 2021, S&P affirmed PMC’s servicer rating as Average, raising management and organization ranking to Above Average. In addition, S&P raised PMC’s master servicer rating from Average to Above Average reflecting the industry experience of PMC’s management, multiple levels of internal controls to monitor operations, and resolution of regulatory actions, amongst other factors mentioned by S&P. On September 28, 2021, Moody’s upgraded the servicer quality (SQ) assessment for PMC as a master servicer of residential mortgage loans from SQ3 to SQ3+, reflecting solid reporting and remitting processes and proactive servicer oversight. On March 24, 2020, Fitch Ratings, Inc. (Fitch) placed all U.S. Residential Mortgage Backed Securities (RMBS) servicer ratings on Outlook Negative, resulting from a rapidly evolving economic and operating environment due to the sudden impact of the COVID-19 virus. On April 28, 2021, Fitch affirmed PMC’s servicer ratings and revised its outlook from Negative to Stable as PMC’s performance in this evolving environment has not raised any elevated concerns. According to Fitch, the affirmation and stable outlook reflected PMC’s diligent response to the coronavirus pandemic and its impact on servicing operations, effective enterprise-wide risk environment and compliance management framework, satisfactory loan servicing performance metrics, special servicing expertise, and efficient servicing technology. The ratings also consider the financial condition of PMC’s parent, OFC. Downgrades in servicer ratings could adversely affect our ability to service loans, sell or finance servicing advances and could impair our ability to consummate future servicing transactions or adversely affect our dealings with lenders, other contractual counterparties, and regulators, including our ability to maintain our status as an approved servicer by Fannie Mae and Freddie Mac. The servicer rating requirements of Fannie Mae do not necessarily require or imply immediate action, as Fannie Mae has discretion with respect to whether we are in compliance with their requirements and what actions it deems appropriate under the circumstances in the event that we fall below their desired servicer ratings. The geographic concentration of the UPB of residential loans and real estate we serviced at December 31, 2021 was as follows: Amount Count California $ 43,935,174 154,632 Texas 17,016,955 104,502 Florida 13,754,741 91,391 New York 12,701,419 53,132 New Jersey 10,382,601 44,175 Other 107,800,657 654,355 $ 205,591,547 1,102,187 Years Ended December 31, Servicing Revenue 2021 2020 2019 Loan servicing and subservicing fees Servicing $ 339,233 $ 216,263 $ 227,490 Subservicing 21,120 28,886 15,459 MAV (2) 15,708 — — NRZ (2) 304,248 383,685 577,015 Total loan servicing and subservicing fees 680,309 628,834 819,964 Ancillary income Late charges 40,869 47,687 57,194 Recording fees 16,013 14,281 13,029 Loan collection fees 11,724 12,919 15,539 Boarding and deboarding fees 10,522 11,122 3,254 Custodial accounts (float earnings) 4,739 9,939 47,562 GSE forbearance fees 1,537 1,204 — Reverse subservicing ancillary income 1,411 — — Home Affordable Modification Program (HAMP) fees (1) 638 565 5,538 Other 14,179 10,769 13,427 Total ancillary income 101,632 108,486 155,543 $ 781,941 $ 737,320 $ 975,507 (1) The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification. (2) Includes servicing and subservicing fees related to transferred MSRs. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. Float balances (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers) are held in escrow by unaffiliated banks and are excluded from our consolidated balance sheets. Float balances amounted to $2.07 billion, $1.74 billion and $1.71 billion at December 31, 2021, 2020 and 2019, respectively. |
MSR Transfers Not Qualifying fo
MSR Transfers Not Qualifying for Sale Accounting | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
MSR Transfers Not Qualifying for Sale Accounting | Note 8 — MSR Transfers Not Qualifying for Sale Accounting MSRs transferred or sold in transactions which do not qualify for sale accounting treatment are accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and related financing liability on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. In addition, changes in fair value of the transferred MSRs are recognized in MSR valuation adjustments, net in the consolidated statements of operations, while changes in fair value of the related MSR financing liability are reported in Pledged MSR liability expense. In 2021, PMC entered into agreements to sell MSR portfolios to MAV, on a bulk and flow basis. In each such agreements, PMC has been retained as subservicer for the sold portfolio in accordance with the terms of the subservicing agreement entered into on May 3, 2021. The transactions do not qualify for sale accounting treatment predominantly due to the termination restrictions of the subservicing agreement. See Note 11 — Investment in Equity Method Investee. Starting in 2012, Ocwen and PMC entered into agreements to sell MSRs or Rights to MSRs and the related servicing advances to NRZ, and in all cases have been retained by NRZ as subservicer. Due to the length of the non-cancellable term of the subservicing agreements, the transactions did not qualify for sale accounting treatment which resulted in such transactions being accounted for as secured financings. In the case of Rights to MSRs transactions with NRZ, legal title was retained by Ocwen, causing the transactions to be accounted for as secured financings. The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with NRZ and MAV that do not qualify for sale accounting. Year Ended December 31, 2021 Pledged MSR Liability Original Rights to MSRs Agreements MAV Agreements (2) Total Beginning balance $ 566,952 $ — $ 566,952 Additions — 250,016 250,016 Changes in fair value 82,274 (4,329) 77,945 Runoff and settlement (81,813) (7,543) (89,356) Calls (1) (8,472) — (8,472) Ending balance $ 558,940 $ 238,144 $ 797,085 Year Ended December 31, 2020 Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 603,046 $ 35,445 $ 312,102 $ 950,593 Additions — — — — Sales — — (226) (226) Changes in fair value (3) 36,065 903 (40,720) (3,752) Runoff and settlement (3) (70,403) (35,121) (7,492) (113,016) Derecognition of financing liability due to termination of PMC Agreement (4) — — (263,664) (263,664) Calls (1) (1,756) (1,227) — (2,983) Ending balance $ 566,952 $ — $ — $ 566,952 Year Ended December 31, 2019 Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 436,511 $ 138,854 $ 457,491 $ 1,032,856 Additions — — 1,276 1,276 Sales — — 44 44 Changes in fair value (3) 222,697 5,866 (82,078) 146,485 Runoff and settlement (3) (42,229) (101,003) (64,631) (207,863) Calls (1) (13,933) (8,272) — (22,205) Ending balance $ 603,046 $ 35,445 $ 312,102 $ 950,593 (1) Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements (as defined below). Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization. (2) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is retained by PMC (shared between PMC and MAV) and other contractual cash flows under the terms of the subservicing agreement. As the MSR sales to MAV do not achieve sale accounting, the MSR asset transferred remains on the consolidated balance sheet and the proceeds from the sale are initially recognized as a financing liability (Pledged MSR liability), which is recorded at fair value with changes in fair value reported in Pledged MSR liability expense. (3) Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the years ended December 31, 2020 and 2019 in the table above have been recast to conform to current year disclosure, resulting in a loss of $14.1 million in 2020 and a gain of $6.5 million in 2019, reclassified from Runoff and settlement to Changes in fair value. (4) On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC MSR Agreements. While the MSRs and the Rights to MSRs associated with these loans were derecognized from our balance sheet, we continued to service these loans until completing deboarding on October 1, 2020, and accounted for them as a subservicing relationship during that period. The following table presents assets and liabilities recorded on our consolidated balance sheets in connection with the MSR transfer agreements with NRZ that do not qualify for sale accounting (refer to Note 9 — Receivables and Note 15 — Other Liabilities for receivables and other liabilities, respectively, related to MAV): December 31, 2021 2020 Balance Sheet NRZ - Transferred MSRs, at fair value $ 558,940 $ 566,952 Other financing liability - Pledged MSR liability, at fair value NRZ - Original Rights to MSRs Agreements 558,940 566,952 Due from NRZ (Receivables) Advance funding, subservicing fees and reimbursable expenses 3,781 4,611 Due to NRZ (Other liabilities) $ 76,590 $ 94,691 The following tables present selected items in our consolidated statements of operations in connection with the MSR transfer agreements with NRZ and MAV that do not qualify for sale accounting. Year Ended December 31, 2021 2020 2019 Statements of Operations Servicing fees Servicing fees collected on behalf of NRZ $ 304,248 $ 383,685 $ 577,015 Servicing fees collected on behalf of MAV 14,173 — — $ 318,421 $ 383,685 $ 577,015 Pledged MSR liability expense NRZ (see further details below) $ 205,226 $ 152,334 $ 372,089 MAV (see further details below) 4,675 — — $ 209,901 $ 152,334 $ 372,089 NRZ Pledged MSR liability expense: Year Ended December 31, 2021 2020 2019 Servicing fees collected on behalf of NRZ $ 304,248 $ 383,685 $ 577,015 Less: Subservicing fee retained 88,401 104,848 139,343 Net servicing fees remitted to NRZ 215,847 278,837 437,672 Less: Reduction (increase) in financing liability Changes in fair value: Original Rights to MSRs Agreements (1) (82,274) (36,065) (222,697) 2017 Agreements and New RMSR Agreements — (903) (5,866) PMC MSR Agreements — 40,720 82,078 (82,274) 3,752 (146,485) Runoff and settlement: Original Rights to MSRs Agreements (1) 81,813 70,403 42,228 2017 Agreements and New RMSR Agreements — 35,121 101,003 PMC MSR Agreements — 7,492 64,631 81,813 113,016 207,862 Other 11,082 9,735 4,206 Pledged MSR liability expense $ 205,226 $ 152,334 $ 372,089 (1) Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the years ended December 31, 2020 and 2019 in the table above have been recast to conform to current year disclosure, resulting in a loss of $14.1 million in 2020 and a gain of $6.5 million in 2019, reclassified from Runoff and settlement to Changes in fair value. MAV Pledged MSR liability expense: Year Ended December 31, 2021 Servicing fees collected on behalf of MAV $ 14,173 Less: Subservicing fee retained by Ocwen 1,988 Net servicing fees remitted to MAV 12,186 Less: Reduction (increase) in Pledged MSR liability Changes in fair value due to valuation inputs or assumptions 4,329 Runoff and settlement 7,543 11,872 Other (1) (4,361) Pledged MSR liability expense - MAV $ 4,675 (1) Includes $4.0 million of early payment protection associated with the sale of MSR portfolios by PMC to MAV. NRZ - Ocwen Transactions Prior to the transfer of legal title under the Master Servicing Rights Purchase Agreement dated as of October 1, 2012, as amended, and certain Sale Supplements, as amended (collectively, the Original Rights to MSRs Agreements), Ocwen agreed to service the mortgage loans underlying the MSRs on the economic terms set forth in the Original Rights to MSRs Agreements. After the transfer of legal title as contemplated under the Original Rights to MSRs Agreements, Ocwen was to service the mortgage loans underlying the MSRs as subservicer on substantially the same economic terms. On July 23, 2017 and January 18, 2018, we entered into a series of agreements with NRZ that collectively modify, supplement and supersede the arrangements among the parties as set forth in the Original Rights to MSRs Agreements. The July 23, 2017 agreements, as amended, include a Master Agreement, a Transfer Agreement and the Subservicing Agreement between Ocwen and New Residential Mortgage LLC (NRM), a subsidiary of NRZ, relating to non-agency loans (the NRM Subservicing Agreement) (collectively, the 2017 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 remaining MSRs that were subject to the Original Rights to MSRs Agreements and under which Ocwen would subservice mortgage loans underlying the MSRs for an initial term ending in July 2022 (the Initial Term). On January 18, 2018, the parties entered into new agreements (including a Servicing Addendum) regarding the Rights to MSRs related to MSRs that remained subject to the Original Rights to MSRs Agreements as of January 1, 2018 and amended the Transfer Agreement (collectively, New RMSR Agreements) to accelerate the implementation of certain parts of our arrangements in order to achieve the intent of the 2017 Agreements sooner. Under the new agreements, following receipt of the required consents and transfer of the MSRs, Ocwen subservices the mortgage loans underlying the transferred MSRs pursuant to the 2017 Agreements and the August 2018 subservicing agreement with NewRez LLC dba Shellpoint Mortgage Servicing (Shellpoint) described below. Ocwen received lump-sum cash payments of $54.6 million and $279.6 million in September 2017 and January 2018 in accordance with the terms of the 2017 Agreements and New RMSR Agreements, respectively. These upfront payments generally represented the net present value of the difference between the future revenue stream Ocwen would have received under the Original Rights to MSRs Agreements and the future revenue stream Ocwen expected to receive under the 2017 Agreements and the New RMSR Agreements. We recognized the cash received as a financing liability that we accounted for at fair value through the term of the original agreements (April 2020). Changes in fair value were recognized in Pledged MSR liability expense in the consolidated statements of operations. On August 17, 2018, Ocwen and NRZ entered into certain amendments (i) to the New RMSR Agreements to include Shellpoint, a subsidiary of NRZ, as a party to which legal title to the MSRs could be transferred after related consents are received, (ii) to add a Subservicing Agreement between Ocwen and Shellpoint relating to non-agency loans (the Shellpoint Subservicing Agreement), (iii) to add an Agency Subservicing Agreement between Ocwen and NRM relating to agency loans (the Agency Subservicing Agreement), and (iv) to conform the New RMSR Agreements and the NRM Subservicing Agreement to certain of the terms of the Shellpoint Subservicing Agreement and the Agency Subservicing Agreement. At any time during the Initial Term, NRZ may terminate the Subservicing Agreements and Servicing Addendum for convenience, subject to Ocwen’s right to receive a termination fee and 180 days’ notice. The termination fee is calculated as specified in the Subservicing Agreements and Servicing Addendum, and is a discounted percentage of the expected revenues that would be owed to Ocwen over the remaining contract term based on certain portfolio run off assumptions. We did not receive any such notice of termination from NRZ 180 days prior to the end of the Initial Terms of the Subservicing Agreements or the Servicing Addendum. Therefore, no termination fee will be payable if NRZ provides a notice of termination during the remaining Initial Term of any of the agreements. Following the Initial Term in July 2022, NRZ may extend the term of the Subservicing Agreements and Servicing Addendum for additional three In addition, the Subservicing Agreements and Servicing Addendum may be terminated by Ocwen without cause on an annual basis (in effect a non-renewal) by providing at least 225 days’ notice in advance of the last day of the Initial Term or the last day of each one-year extension of the applicable terms after the Initial Term. Ocwen did not exercise its termination option. Therefore, the Subservicing Agreements and Servicing Addendum will automatically renew to July 2023, unless NRZ terminates or does not extend the term per the above discussion. NRZ and Ocwen have the ability to terminate the Subservicing Agreements and Servicing Addendum for cause if certain specified conditions occur. The terminations must be terminations in whole (i.e., cover all the loans under the relevant Subservicing Agreement or Servicing Addendum) and not in part, except for limited circumstances specified in the agreements. In addition, if NRZ terminates any of the NRM or Shellpoint Subservicing Agreements or the Servicing Addendum for cause, the other agreements will also terminate automatically. Under the terms of the Subservicing Agreements and Servicing Addendum, in addition to a base servicing fee, Ocwen receives certain ancillary fees, primarily late fees, loan modification fees and convenience or Speedpay® fees. We may also receive certain incentive fees or pay penalties tied to various contractual performance metrics. NRZ receives all float earnings and deferred servicing fees related to delinquent borrower payments, as well as being entitled to receive certain REO related income including REO referral commissions. As of December 31, 2021, the UPB of MSRs subject to the Servicing Agreements and the New RMSR Agreements is $55.8 billion, including $12.1 billion for which title has not transferred to NRZ. As the third-party consents required for title to the MSRs to transfer were not obtained by May 31, 2019, the New RMSR Agreements set forth a process under which NRZ’s $12.1 billion Rights to MSRs may (i) be acquired by Ocwen at a price determined in accordance with the terms of the New RMSR Agreements, at the option of Ocwen, or (ii) be sold, together with Ocwen’s title to those MSRs, to a third party in accordance with the terms of the New RMSR Agreements, subject to an additional Ocwen option to acquire at a price based on the winning third-party bid rather than selling to the third party. If the Rights to MSRs are not transferred pursuant to these alternatives, then the Rights to MSRs will remain subject to the New RMSR Agreements. In addition, during the Initial Term, NRZ has the right to terminate the $12.1 billion New RMSR Agreements for convenience, in whole but not in part, subject to payment of a termination fee and 180 days’ notice. As noted above NRZ did not provide us with a notice of termination in January 2022, 180 days prior to the end of the Initial Term, so no termination fee will be payable if NRZ provides a notice of termination before the end of the Initial Term. If NRZ exercises this termination right, NRZ has the option of seeking (i) the transfer of the MSRs through a sale to a third party of its Rights to MSRs (together with a transfer of Ocwen’s title to those MSRs) or (ii) a substitute RMSR arrangement that substantially replicates the Rights to MSRs structure (a Substitute RMSR Arrangement) under which we would transfer title to the MSRs to a successor servicer and NRZ would continue to own the economic rights and obligations related to the MSRs. In the case of option (i), we have a purchase option as specified in the New RMSR Agreements. If NRZ is not able to sell the Rights to MSRs or establish a Substitute RMSR Arrangement with another servicer, NRZ has the right to revoke its termination notice and re-instate the Servicing Addendum or to establish a subservicing arrangement whereby the MSRs remaining subject to the New RMSR Agreements would be transferred to up to three subservicers who would subservice under Ocwen’s oversight. If such a subservicing arrangement were established, Ocwen would receive an oversight fee and reimbursement of expenses. We may also agree on alternative arrangements that are not contemplated under our existing agreements or that are variations of those contemplated under our existing agreements. NRZ - PMC Transactions On December 28, 2016, PMC entered into an agreement to sell substantially all of its MSRs, and the related servicing advances, to NRM (the 2016 PMC Sale Agreement). In connection with this agreement, on December 28, 2016, PMC also entered into a subservicing agreement with NRZ which was subsequently amended and restated as of March 29, 2019 (together with the 2016 PMC Sale Agreement, the PMC MSR Agreements). The PMC subservicing agreement had an initial term of three years from the initial transaction date of June 16, 2017, subject to certain transfer and termination provisions. The MSR sale transaction did not originally achieve sale accounting treatment. On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC servicing agreement. This termination was for convenience and not for cause, and provided for loan deboarding fees to be paid by NRZ. As the sale accounting criteria were met upon the notice of termination, the MSRs and the Rights to MSRs were derecognized from our balance sheet on February 20, 2020 without any gain or loss on derecognition. We serviced these loans until deboarding in October 2020 representing $34.2 billion of UPB, and accounted for them as a subservicing relationship. Accordingly, we have recognized subservicing fees associated with the subservicing agreement subsequent to February 20, 2020 and have not reported any servicing fees collected on behalf of, and remitted to NRZ, any change in fair value, runoff and settlement in financing liability thereafter. On September 1, 2020, 133,718 loans representing $18.2 billion of UPB were deboarded and the remaining 136,500 loans representing $16.0 billion of UPB were deboarded on October 1, 2020 . |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables | Note 9 — Receivables December 31, 2021 2020 Servicing-related receivables: Government-insured loan claims - Forward $ 90,603 $ 103,058 Government-insured loan claims - Reverse 39,895 32,887 Due from custodial accounts 7,777 19,393 Subservicing fees 6,662 98 Reimbursable expenses 6,056 4,970 Subservicing fees and reimbursable expenses - Due from NRZ 3,781 4,611 Subservicing fees, reimbursable expenses and other - Due from MAV 4,933 — Other 1,223 989 160,930 166,006 Income taxes receivable 56,776 57,503 Due from MAV 990 — Other receivables 3,760 3,200 222,456 226,709 Allowance for losses (41,749) (39,044) $ 180,707 $ 187,665 At December 31, 2021 and 2020, the allowance for losses primarily related to receivables of our Servicing business. The allowance for losses related to FHA- or VA-insured loans repurchased from Ginnie Mae guaranteed securitizations (government-insured claims) was $41.5 million and $38.3 million at December 31, 2021 and 2020, respectively. The government-insured claims that do not exceed HUD, VA or FHA insurance limits are guaranteed by the U.S. government. Allowance for Losses - Government-Insured Loan Claims Years Ended December 31, 2021 2020 2019 Beginning balance $ 38,339 $ 56,868 $ 52,497 Provision 14,440 18,145 29,034 Charge-offs and other, net (11,284) (36,674) (24,663) Ending balance $ 41,495 $ 38,339 $ 56,868 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 10 — Premises and Equipment December 31, 2021 2020 Computer hardware $ 25,462 $ 33,585 Operating lease ROU assets 22,900 26,930 Computer software 17,002 16,371 Leasehold improvements 13,766 21,272 Office equipment 2,359 6,958 Furniture and fixtures 2,277 3,463 Other 68 123 83,834 108,702 Less accumulated depreciation and amortization (70,160) (91,777) $ 13,674 $ 16,925 |
Investment in Equity Method Inv
Investment in Equity Method Investee | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Method Investee | Note 11 — Investment in Equity Method Investee On December 21, 2020, Ocwen entered into a transaction agreement (the Transaction Agreement) with Oaktree Capital Management L.P. and certain affiliates (collectively Oaktree) to form a strategic relationship to invest in MSRs subserviced by PMC. The parties have agreed to invest their pro rata portions of up to an aggregate of $250.0 million in an intermediate holding company, MAV Canopy, held 15% by Ocwen and 85% by Oaktree. On May 3, 2021, pursuant to the Transaction Agreement, Ocwen contributed MAV, which had total member’s equity and cash balances of approximately $5.0 million, to MAV Canopy, and received 15% of MAV Canopy and cash consideration. MAV is a licensed mortgage servicing company approved to purchase GSE MSRs. PMC and MAV entered into a number of definitive agreements which govern the terms of their business relationship: Subservicing Agreement. Effective May 3, 2021, PMC entered into a subservicing agreement with MAV for exclusive rights to service the mortgage loans underlying MSRs owned by MAV in exchange for a per-loan subservicing fee and certain other ancillary fees. The subservicing agreement will continue until terminated by mutual agreement of the parties or for cause, as defined. If either party terminates the agreement for cause, the other party is required to pay certain fees and costs. As of December 31, 2021, PMC subserviced a total $33.0 billion UPB on behalf of MAV, of which $24.0 billion MSR remains reported on the consolidated balance sheet of PMC - see below for information on MSR sales by PMC to MAV. Joint Marketing Agreement and Recapture Agreement. Effective May 3, 2021, in conjunction with the subservicing agreement, PMC and MAV entered into a joint marketing agreement and a flow MSR sale agreement (MSR recapture), whereby PMC is entitled to the exclusive right to solicit and refinance borrowers with loans underlying the MSR owned by MAV, and is obligated to transfer to MAV the MSR associated with the loans so originated. Under the agreements, the parties share the recapture benefits, whereby PMC realizes gains on loans sold and MAV is delivered the recaptured MSR for no cash consideration. The joint marketing agreement and flow MSR sale agreement will continue until terminated by mutual agreement of the parties or for cause, as defined, or at the option of either party if the subservicing agreement is terminated. As of December 31, 2021, PMC had not transferred any MSRs to MAV under this agreement. Right of First Offer . Following the execution of the Transaction Agreement and until the parties have contributed their pro rata portions of the $250.0 million aggregate capital contributions, Ocwen and its affiliates may not acquire, without Oaktree’s prior written approval, GSE MSRs that meet certain underwriting and other criteria (such criteria are referred to as the “buy-box”) unless Ocwen notifies MAV of the opportunity and MAV does not pursue it by submitting a competitive bid to the MSR seller. In addition, until the earlier of (i) the time that MAV has been fully funded and (ii) May 3, 2024 (subject to two annual extensions by mutual agreement), if Ocwen seeks to sell any GSE MSRs that meet the buy-box, Ocwen must first offer such MSRs to MAV before initiating a sale process with a third party. If MAV does not accept Ocwen’s offer, Ocwen may sell the MSRs to a third party on terms no more favorable to the purchaser than those offered to MAV. The price at which Ocwen and its affiliates will offer MSRs to MAV will be based on the valuation of an independent third-party. This first offer provision does not apply to MSRs acquired by PMC prior to May 3, 2021. Forward Bulk Servicing Rights Purchase and Sale Agreement. On September 9, 2021, PMC and MAV entered into an MSR purchase and sale agreement whereby PMC sells MAV on a monthly basis certain Fannie Mae MSRs at the price acquired by PMC, subject to certain adjustments. As of December 31, 2021, PMC sold MSRs with UPB of $4.3 billion to MAV under this agreement. Bulk Mortgage Servicing Rights Purchase and Sale Agreements. During 2021, PMC sold MAV MSR portfolios in bulk transactions for an aggregate UPB of approximately $20.7 billion. Upon settlement, we recognized an aggregated $1.8 million revaluation gain on the pledged MSR liability, net of standard early payoff (EPO) protection paid to MAV. The MSR sale transactions between PMC and MAV do not qualify for sale accounting primarily due to the termination restrictions of the subservicing agreement, and are accounted for as secured borrowings. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for a summary of transactions under this agreement. Administrative Services Agreement. Pursuant to the Transaction Agreement, Ocwen entered into an agreement to provide certain administrative services to MAV, including accounting, treasury, human resources, management information, MSR transaction management support, and certain licensing, regulatory and risk management support. Ocwen is entitled to a fee for such services, subject to an annual cap of $0.5 million. Under ASC 323: Investments - Equity Method and Joint Ventures, an investment of less than 20 percent of the voting stock of an investee shall lead to a presumption that an investor does not have the ability to exercise significant influence unless such ability can be demonstrated. Ocwen determined it has significant influence over MAV Canopy based on its representation on the MAV Canopy Board of Directors and certain services it provides, amongst other factors. Accordingly, Ocwen accounts for its investment in MAV Canopy under the equity method. Our 15% investment in MAV Canopy is comprised of following at and for the year ended December 31, 2021: Capital contribution $ 27,927 Capital distribution (8,250) Earnings of equity method investee 3,620 Investment in equity method investee $ 23,297 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 12 — Other Assets December 31, 2021 2020 Contingent loan repurchase asset $ 403,740 $ 480,221 Prepaid expenses 21,498 21,176 Derivatives, at fair value 21,675 23,246 Prepaid representation, warranty and indemnification claims - Agency MSR sale 15,173 15,173 Intangible assets, net 14,335 600 REO 10,075 7,771 Prepaid lender fees, net 7,150 9,556 Deferred tax assets, net 3,329 3,543 Security deposits 1,174 2,222 Other 9,101 7,975 $ 507,250 $ 571,483 Intangible assets at December 31, 2021 are primarily comprised of a $13.7 million subservicing contract intangible asset acquired in 2021, net of accumulated amortization of $0.7 million. On October 1, 2021, PMC completed the transaction entered into on June 17, 2021 with MAM (RMS) and its then parent to acquire certain assets related to reverse mortgage subservicing, including subservicing contracts. In addition, PMC extended employment offers to approximately 350 former MAM (RMS) employees. Concurrent with the closing of the transaction, PMC became the subservicer for approximately 57,000 reverse mortgages, or approximately $14.3 billion in UPB pursuant to subservicing agreements with various clients, including MAM (RMS) (five-year term). The reverse mortgages were transferred to our reverse servicing platform concurrent with the closing. Substantially all of the fair value of the assets acquired in the transaction was concentrated in a single asset, specifically the subservicing contract intangible assets; accordingly, we have accounted for this transaction as an asset acquisition. |
Other Financing Liabilities
Other Financing Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Other Financing Liabilities | Note 13 — Other Financing Liabilities The following tables presents transferred MSR liabilities recorded in connection with MSR sales and transfers that do not qualify for sale accounting and liabilities of consolidated mortgage-backed securitization trusts. Outstanding Balance at December 31, Borrowing Type Collateral Maturity 2021 2020 Original Rights to MSRs Agreements, at fair value - NRZ (1) MSRs (1) $ 558,940 $ 566,952 Pledged MSR liability, at fair value - MAV (1) MSRs (1) 238,144 — 797,085 566,952 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment Oct. 2033 7,879 9,770 Total Other financing liabilities, at fair value $ 804,963 $ 576,722 (1) See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for additional information. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 14 — Borrowings Advance Match Funded Liabilities Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Maturity (1) Amort. Date (1) Total Available (2) 2021 2020 Advance Receivables Backed Notes - Series 2015-VF5 (3) Jun. 2052 Jun. 2022 $ 80,000 $ 65,768 $ 14,231 $ 89,396 Advance Receivables Backed Notes, Series 2020-T1 (4) Aug. 2052 Aug. 2022 475,000 — 475,000 475,000 Total Ocwen Master Advance Receivables Trust (OMART) 555,000 65,768 489,231 564,396 Ocwen Freddie Advance Funding (OFAF ) - Advance Receivables Backed Notes, Series 2015-VF1 (5) Aug. 2052 Aug. 2022 40,000 16,934 23,065 16,892 $ 595,000 $ 82,702 $ 512,297 $ 581,288 Weighted average interest rate (6) 1.54% 1.96% (1) The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. After the amortization date for each note, all collections that represent the repayment of advances pledged to the facility must be applied ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing note may not be used to fund new advances. (2) The committed borrowing capacity under the OMART and OFAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2021, none of the available borrowing capacity of the OMART and OFAF advance financing notes could be used based on the amount of eligible collateral. (3) Interest is computed based on the lender’s cost of funds plus applicable margin. On June 30, 2021, the interest rate margin was reduced by 200 bps and the total borrowing capacity was voluntarily reduced from $250.0 million to $80.0 million. (4) The interest rates on the individual classes of notes range between 1.28% to 5.42%. (5) On August 26, 2021, the interest rate was reduced by 100 bps to the lender’s cost of funds plus applicable margin and the borrowing capacity was voluntarily reduced from $70.0 million to $40.0 million.. On January 31, 2022, we amended the OFAF advance facility to include Fannie Mae advances as eligible collateral and renamed the facility Ocwen GSE Advance Funding (OGAF). (6) The weighted average interest rate, excluding the effect of the amortization of prepaid lender fees, is computed using the outstanding balance of each respective note and its interest rate at the financial statement date. At December 31, 2021 and 2020, the balance of unamortized prepaid lender fees was $1.3 million and $4.3 million, respectively, and are included in Other assets in our consolidated balance sheets. Mortgage Loan Warehouse Facilities Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Uncommitted Committed (1) 2021 2020 Master repurchase agreement (2) Loans held for sale (LHFS), Receivables and REO June 2022 $ 115,000 $ 50,563 $ 109,437 $ 195,773 Master repurchase agreement (3) LHFS and Loans held for investment (LHFI) Dec. 2022 250,000 39,118 160,882 80,081 Master repurchase agreement (4) N/A N/A 50,000 — — — Participation agreement (5) LHFS June 2022 254,814 — 45,186 — Master repurchase agreement (5) LHFS June 2022 — 98,234 1,766 63,281 Master repurchase agreement LHFS June 2022 — 1,000 — — Mortgage warehouse agreement (6) LHFS Jan. 2022 — 38,208 11,792 11,715 Mortgage warehouse agreement (7) LHFS and LHFI Dec. 2022 116,187 — 87,813 73,134 Mortgage warehouse agreement (8) LHFS and Receivables (9) 7,977 — 192,023 27,729 Master repurchase agreement (9) LHFS (10) — — 459,344 — Loan and security agreement (10) LHFS and Receivables Apr. 2022 — 13,166 16,834 — Total Mortgage loan warehouse facilities $ 793,978 $ 240,289 $ 1,085,076 $ 451,713 Weighted average interest rate (11) 2.61% 3.33% (1) Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, none of the available borrowing capacity could be used at December 31, 2021 based on the amount of eligible collateral that could be pledged. (2) The maximum borrowing under this agreement is $275.0 million, of which $160.0 million is available on a committed basis and the remainder is available at the discretion of the lender. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (3) The maximum borrowing under this agreement is $450.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. On December 7, 2021, the total borrowing capacity and uncommitted capacity under the facility was increased to $450.0 million and $250.0 million, respectively, and the interest rate margin was reduced by 125 bps for forward and reverse originated loans. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (4) T he lender provides financing for up to $50.0 million at the discretion of the lender. The agreement has no stated maturity date. Interest on this facility is based on the Secured Overnight Financing Rate (SOFR). At December 31, 2021 and 2020, the interest rate for this facility was SOFR plus applicable margin, with a SOFR floor of 25 bps. (5) On June 23, 2021, the $120.0 million uncommitted borrowing capacity under the participation agreement was increased to $150.0 million and the committed borrowing capacity under the repurchase agreement was increased from $90.0 million to $100.0 million. The interest rate on repurchase agreement was revised to the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor of 3.00% for new originations and less applicable margin with an interest rate floor of 3.25% for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean up loans. The interest rate on the participation agreement was revised to the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor of 3.00% for new originations. The transactions do not qualify for sale accounting treatment and are accounted for as secured borrowings. On July 23, 2021, we temporarily increased the borrowing capacity under the participation agreement to $300.0 million until September 14, 2021 when the temporary increase in borrowing capacity was extended to November 15, 2021. On November 8, 2021, the $150.0 million temporary increase in borrowing capacity under the participation agreement was extended to January 15, 2022. (6) Under this agreement, t he lender provides financing for up to $50.0 million on a committed basis. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with an interest rate floor of 525 bps. On January 14, 2022, the maturity date of this facility was extended to March 16, 2022. (7) Under this agreement, t he lender provides financing for up to $150.0 million on an uncommitted basis. On February 1, 2021, the borrowing capacity all of which is uncommitted, was temporarily increased from $100.0 million to $150.0 million until February 28, 2021 when it was reduced to $100.0 million. On March 30, 2021, the borrowing capacity was temporarily increased to $150.0 million effective April 1, 2021 until April 29, 2021 when the increase was made permanent. On September 27, 2021, the borrowing capacity was increased to $175.0 million until December 21, 2021, when the borrowing capacity was increased to $204.0 million and the interest rate floor was reduced by 37.5 bps. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with an interest rate floor of 2.875%. (8) On May 17, 2021, the total borrowing capacity of this facility, all of which is uncommitted, was increased from $100.0 million to $150.0 million through the addition of a $50.0 million participation interest. The agreement has no stated maturity date, however each transaction has a maximum duration of four years. The cost of this line is set at e ach transaction date and is based on the interest rate and type of the collateral. On September 1, 2021, the total borrowing capacity of the facility was increased to $200.0 million. On January 5, 2022, the total borrowing capacity of the facility was increased to $250.0 million. (9) On March 29, 2021, we entered into a repurchase agreement which provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 30-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are transferred to a trust which trust issues a trust certificate that is pledged as the collateral for the borrowings. See Note 2 — Securitizations and Variable Interest Entities for additional information. On March 31, 2021, the trust issued the first certificate of $50.0 million which was increased to $75.0 million on May 28, 2021 and further increased to $225.0 million on July 29, 2021. The second trust certificate of $50.0 million was issued on April 12, 2021 and increased to $100.0 million on July 13, 2021. Additional trust certificates of $25.0 million and $100.0 million were issued for borrowing on June 25, 2021 and July 23, 2021, respectively, under this agreement. Each certificate is renewed monthly and at December 21, 2021, the interest rate for this facility was 1ML plus applicable margin. On January 27, 2022, we voluntarily reduced the first certificate by $75.0 million. (10) On April 29, 2021, we entered into a revolving facility agreement which provides up to $30.0 million of committed borrowing capacity secured by eligible HECM loans that are active buyouts (ABO), as defined in the agreement. At December 31, 2021 and 2020, the interest rate for this facility was Prime Rate plus applicable margin, with an interest rate floor of 450 bps. (11) 1ML was 0.10% and 0.14% at December 31, 2021 and 2020, respectively. Prime Rate was 3.25% at December 31, 2021 and 2020. SOFR was 0.05% and 0.07% at December 31, 2021 and 2020, respectively. The weighted average interest rate at December 31, 2021, excludes the effect of the amortization of prepaid lender fees. At December 31, 2021 and 2020, unamortized prepaid lender fees were $1.2 million and $2.0 million, respectively, and are included in Other assets in our consolidated balance sheets. MSR Financing Facilities, net Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Uncommitted Committed (1) 2021 2020 Agency MSR financing facility (2) MSRs, Advances June 2022 $ — $ 32,477 $ 317,523 $ 210,755 Ginnie Mae MSR financing facility (3) MSRs, Advances Jan. 2022 18,306 — 131,694 112,022 Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (4) MSRs Nov. 2024 — — 41,663 68,313 Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) MSRs Feb. 2028 — — 39,529 47,476 Agency MSR financing facility - revolving loan (6) MSRs June 2026 — 7,929 277,071 — Agency MSR financing facility - term loan (6) MSRs June 2023 — — 94,178 — Total MSR financing facilities $ 18,306 $ 40,406 $ 901,658 $ 438,566 Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7) (898) (894) Total MSR financing facilities, net $ 900,760 $ 437,672 Weighted average interest rate (8) (9) 3.71% 4.82% (1) Of the borrowing capacity on MSR financing facilities extended on a committed basis, $0.5 million of the available borrowing capacity could be used at December 31, 2021 based on the amount of eligible collateral that could be pledged. (2) PMC’s obligations under this facility are secured by a lien on the related MSRs. Ocwen guarantees the obligations of PMC under this facility. The maximum amount which we may borrow pursuant to the repurchase agreements is $350.0 million on a committed basis. We also pledged the membership interest of the depositor for our OMART advance financing facility as additional collateral to this facility. See Note 2 — Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. Declines in fair value of our MSRs due to declines in market interest rates, assumption updates or other factors require that we provide additional collateral to our lenders under these facilities. Effective April 15, 2021, the facility was upsized to $350.0 million (it was earlier reduced to $250.0 million in May 2020) and the interest rate was reduced to 1ML plus applicable margin. On June 2, 2021, the facility was temporarily upsized to $425.0 million for a period of 90 calendar days ending no later than September 1, 2021. On August 26, 2021 and later on October 25, 2021, the temporary upsize was extended until November 1, 2021. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (3) In connection with this facility, PMC entered into a repurchase agreement pursuant to which PMC has sold a participation certificate representing certain economic interests in the Ginnie Mae MSRs and has agreed to repurchase such participation certificate at a future date at the repurchase price set forth in the repurchase agreement. PMC’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and advances. Ocwen guarantees the obligations of PMC under the facility. On October 26, 2021, the borrowing capacity was increased from $125.0 million to $150.0 million on an uncommitted basis. See (2) above regarding daily margining requirements. On January 31, 2022, the maturity date of this facility was extended to February 28, 2022. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with a 1ML floor of 50 bps. (4) PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Ocwen guarantees the obligations of PLS Issuer under the facility. The Class A PLS Notes issued pursuant to the credit agreement had an initial principal amount of $100.0 million and amortize in accordance with a predetermined schedule subject to modification under certain events. These notes have fixed interest rate of 5.07%. See Note 2 — Securitizations and Variable Interest Entities for additional information. (5) OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes. (6) On June 28, 2021, we entered into a facility which includes a $135.0 million term loan and a $285.0 million revolving loan secured by a lien on PMC’s Agency MSRs. See (2) above regarding daily margining requirements. At December 31, 2021, the interest rate for this facility was 1-year swap rate plus applicable margin. (7) At December 31, 2021, unamortized debt issuance costs included $0.4 million and $0.5 million on the PLS Notes and the Agency MSR financing facility - term loan, respectively. At December 31, 2021 and 2020, unamortized prepaid lender fees related to revolving type MSR financing facilities were $4.7 million and $3.3 million, respectively, and are included in Other assets in our consolidated balance sheets. (8) Weighted average interest rate at December 31, 2021, excluding the effect of the amortization of debt issuance costs and prepaid lender fees. (9) 1ML was 0.10% and 0.14% at December 31, 2021 and 2020, respectively. The 1-year swap rate was 0.19% and 0.19% at December 31, 2021 and 2020, respectively. Senior Secured Term Loan, net Outstanding Balance at December 31, Borrowing Type Collateral Interest Rate Maturity 2021 2020 SSTL (1) (1) 1-Month Eurodollar rate + 600 bps with a Eurodollar floor of 100 bps (1) May 2022 (1) $ — $ 185,000 Unamortized debt issuance costs — (4,867) Discount — (357) $ — $ 179,776 (1) On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance. The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million. Senior Notes Outstanding Balance at December 31, Interest Rate (1) Maturity 2021 2020 PMC Senior Secured Notes 7.875% March 2026 $ 400,000 $ — OFC Senior Secured Notes (due to related parties) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285,000 — PHH Corporation (PHH) Senior Notes 6.375% August 2021 — 21,543 PMC Senior Secured Notes 8.375% November 2022 — 291,509 Principal balance 685,000 313,052 Discount (2) PMC Senior Secured Notes (1,758) — OFC Senior Secured Notes (3) (54,176) — (55,934) — Unamortized debt issuance costs (2) PMC Senior Secured Notes (5,687) (968) OFC Senior Secured Notes (8,582) — (14,269) (968) Fair value adjustments — (186) $ 614,797 $ 311,898 (1) Excluding the effect of the amortization of debt issuance costs and discount. (2) The discount and debt issuance costs are amortized to interest expense through the maturity of the respective notes. (3) Includes original issue discount (OID) and additional discount related to the concurrent issuance of warrants and common stock. See below for additional information. Redemption of 6.375% Senior Unsecured Notes due 2021 and 8.375% Senior Secured Notes due 2022 On March 4, 2021, we redeemed all of PHH’s outstanding 6.375% Senior Notes due August 2021 at a price of 100% of the principal amount, plus accrued and unpaid interest, and all of PMC’s 8.375% Senior Secured Notes due November 2022 at a price of 102.094% of the principal amount, plus accrued and unpaid interest. The redemption resulted in our recognition of a $7.1 million loss on debt extinguishment. Issuance of 7.875% Senior Secured Notes due 2026 On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of 7.875% senior secured notes due March 15, 2026 (the PMC Senior Secured Notes) at a discount of $2.1 million. The PMC Senior Secured Notes are guaranteed on a senior secured basis by Ocwen and PHH and were sold in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). Interest on the PMC Senior Secured Notes accrues at a rate of 7.875% per annum and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. On or after March 15, 2023, PMC may redeem some or all of the PMC Senior Secured Notes at its option at the following redemption prices, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date if redeemed during the 12-month period beginning on March 15th of the years indicated below: Redemption Year Redemption Price 2023 103.938 % 2024 101.969 2025 and thereafter 100.000 Prior to March 15, 2023, PMC may, on any one or more occasions, redeem some or all of the PMC Senior Secured Notes at its option at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus a “make-whole” premium equal to the greater of (i) 1.0% of the then outstanding principal amount of such note and (ii) the excess of (1) the present value at the redemption date of the sum of (A) the redemption price of the note at March 15, 2023 (such redemption price is set forth in the table above) plus (B) all required interest payments due on such notes through March 15, 2023 (excluding accrued but unpaid interest), such present value to be computed using a discount rate equal to the Treasury Rate (as defined in the indenture governing the PMC Senior Secured Notes (Indenture)) as of such redemption date plus 50 basis points; over (2) the then outstanding principal amount of such notes, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date. In addition, on or prior to March 15, 2023, PMC may also redeem up to 35.0% of the principal amount of all of the PMC Senior Secured Notes originally issued under the Indenture (including any additional PMC Senior Secured Notes issued under the Indenture) using the net proceeds of certain equity offerings at a redemption price equal to 107.875% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of redemption (subject to the rights of holders of notes on the relevant regular record date to receive interest due on the relevant interest payment date that is on or prior to the applicable date of redemption); provided that: (i) at least 65.0% of the principal amount of all PMC Senior Secured Notes issued under the Indenture remains outstanding immediately after any such redemption; and (ii) PMC makes such redemption not more than 120 days after the consummation of any such equity offering. The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH and its restricted subsidiaries (including PMC) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Ocwen’s affiliates. Issuance of OFC Senior Secured Notes On March 4, 2021, Ocwen completed the private placement of $199.5 million aggregate principal amount of senior secured notes (the OFC Senior Secured Notes) with an OID of $24.5 million to certain entities owned by funds and accounts managed by Oaktree (the Oaktree Investors). Concurrent with the issuance of the OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors warrants to purchase shares of its common stock. The $158.5 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. On May 3, 2021, Ocwen issued to Oaktree the second tranche of the OFC Senior Secured Notes in an aggregate principal amount of $85.5 million with an OID of $10.5 million. Concurrent with the issuance of the second tranche of OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors shares and warrants to purchase shares of its common stock. The $68.0 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. See Note 16 — Stockholders’ Equity for additional information regarding the issuance of common stock and warrants. The OFC Senior Secured Notes mature on March 4, 2027 with no amortization of principal. Interest is payable quarterly in arrears on the last business day of each March, June, September and December and accrues at the rate of 12% per annum to the extent interest is paid in cash or 13.25% per annum to the extent interest is “paid-in-kind” through an increase in the principal amount or the issuance of additional notes (PIK Interest). Prior to March 4, 2022, all of the interest on the OFC Senior Secured Notes may, at our option, be paid as PIK Interest. On or after March 4, 2022, a minimum amount of interest will be required to be paid in cash equal to the lesser of (i) 7% per annum of the outstanding principal amount of the OFC Senior Secured Notes and (ii) the total amount of unrestricted cash of Ocwen and its subsidiaries less the greater of $125.0 million and the minimum liquidity amounts required by any agency. The OFC Senior Secured Notes are solely the obligation of Ocwen and are secured by a pledge of substantially all of the assets of Ocwen, including a pledge of the equity of Ocwen’s directly held subsidiaries. The lien on Ocwen’s assets securing the OFC Senior Secured Notes is junior to the lien securing Ocwen’s guarantee of the 7.875% PMC Senior Secured Notes described above. The OFC Senior Secured Notes are not guaranteed by any of Ocwen’s subsidiaries nor are they secured by a pledge or lien on any assets of Ocwen’s subsidiaries. Prior to March 4, 2026, we are permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par, plus a make-whole premium, plus accrued and unpaid interest. On and after March 4, 2026, we will be permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par plus accrued and unpaid interest. The OFC Senior Secured Notes have two financial maintenance covenants: (1) a minimum book value of stockholders’ equity of not less than $275.0 million and (2) a minimum amount of unrestricted cash of not less than $50.0 million at any time. The OFC Senior Secured Notes also have affirmative and negative covenants and events of default that are customary for debt securities of this type. Credit Ratings Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligations. At December 31, 2021, the S&P issuer credit rating for Ocwen was “B-”. On February 24, 2021, concurrent with the launch of the PMC note offering, S&P reaffirmed the ratings at B- and changed the outlook from Negative to Stable. Moody’s reaffirmed their ratings of Caa1 and revised their outlook to Stable from Negative on February 24, 2021. On January 24, 2022, S&P raised the assigned rating of the PMC Senior Secured Notes from “B-” to ‘B’ and maintained a stable outlook citing improved profitability and an increase in assets. It is possible that additional actions by credit rating agencies could have a material adverse impact on our liquidity and funding position, including materially changing the terms on which we may be able to borrow money. Covenants Under the terms of our debt agreements, we are subject to various affirmative and negative covenants. Collectively, these covenants include: • Financial covenants, including, but not limited to, specified levels of net worth and liquidity; • Covenants to operate in material compliance with applicable laws; • Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Ocwen and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Ocwen and its subsidiaries or of PHH or PMC and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates; • Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and • Requirements to provide audited financial statements within specified timeframes, including requirements that Ocwen’s financial statements and the related audit report be unqualified as to going concern. The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at December 31, 2021 is a minimum of $275.0 million tangible net worth at Ocwen, as defined in certain of our mortgage warehouse and MSR financing facilities agreements, or, if greater, the minimum requirement at PMC set forth by the Agencies. See Note 24 — Regulatory Requirements. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at December 31, 2021 is for a minimum of $125.0 million in consolidated liquidity, as defined, under certain of our advance match funded debt and MSR financing facilities agreements. As a result of the covenants to which we are subject, we may be limited in the manner in which we conduct our business and may be limited in our ability to engage in favorable business and investment activities or raise certain types of capital to finance future operations or satisfy future liquidity needs. In addition, breaches or events that may result in a default under our debt agreements include, among other things, nonpayment of principal or interest, noncompliance with our covenants, breach of representations, the occurrence of a material adverse change, insolvency, bankruptcy, certain material judgments and changes of control. Covenants and default provisions of this type are commonly found in debt agreements such as ours. Certain of these covenants and default provisions are open to subjective interpretation and, if our interpretation was contested by a lender, a court may ultimately be required to determine compliance or lack thereof. In addition, our debt agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. If we fail to comply with our debt agreements and are unable to avoid, remedy or secure a waiver of any resulting default, we may be subject to adverse action by our lenders, including termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting our obligations and other legal remedies. Our lenders can waive their contractual rights in the event of a default. We believe we were in compliance with all of the covenants in our debt agreements as of the date of these consolidated financial statements. Collateral Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at December 31, 2021: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 192,792 $ — $ — $ 192,792 Restricted cash 70,654 70,654 — — Loans held for sale 928,527 887,602 870,411 40,924 Loans held for investment - securitized (2) 6,979,100 6,979,100 6,885,022 — Loans held for investment - unsecuritized 220,662 197,020 176,807 23,642 MSRs (3) 1,422,546 1,407,949 815,584 14,597 Advances, net 772,433 622,131 598,370 150,302 Receivables, net 180,707 33,672 32,670 147,035 REO 10,075 6,624 5,188 3,451 Total (4) $ 10,777,497 $ 10,204,753 $ 9,384,052 $ 572,744 (1) Certain assets are pledged as collateral to the $400.0 million PMC Senior Secured Notes and $285.0 million OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PMC in connection with certain claims relating to the performance and obligations of PMC as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to NRZ and MAV and associated Pledged MSR liability recorded as sale accounting criteria are not met. (4) The total of selected assets disclosed in the above table does not represent the total consolidated assets of Ocwen. For example, the total excludes premises and equipment and certain other assets. The OFC Senior Secured Notes due 2027 have a second lien priority on specified assets carried on PMC’s balance sheet, as defined under the OFC Senior Secured Note Agreement and listed in the table below, and have a priority lien on the following assets: investments by OFC in subsidiaries not guaranteeing the $400.0 million PMC Senior Secured Notes, including PHH and MAV; cash and investment accounts at OFC; and certain other assets, including receivables. As of December 31, 2021 Specified net servicing advances $ 179,228 Specified deferred servicing fee 24,152 Specified MSR value less borrowings 730,720 Specified unrestricted cash balances 65,468 Specified advance facility reserves 7,687 Specified loan value 101,953 Specified residual value 40,763 Specified fair value of marketable securities — Total value - PMC $ 1,149,969 Maturities of Borrowings and Management’s Plans to Address Maturing Borrowings Certain of our borrowings mature within one year of the date of i |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 15 — Other Liabilities December 31, 2021 2020 Contingent loan repurchase liability $ 403,740 $ 480,221 Other accrued expenses 104,931 87,898 Due to NRZ - Advance collections and servicing fees 76,590 94,691 Liability for indemnification obligations 51,243 41,920 Checks held for escheat 44,866 35,654 Accrued legal fees and settlements 43,990 38,932 MSR purchase price holdback 32,620 20,923 Servicing-related obligations 32,366 35,237 Lease liability 16,842 27,393 Liability for uncertain tax positions 14,730 16,188 Accrued interest payable 11,998 4,915 Liability for unfunded India gratuity plan 6,263 6,051 Liability for unfunded pension obligation 4,183 12,662 Derivatives, at fair value 3,080 4,638 Due to MAV 2,134 — Other 17,938 16,652 $ 867,514 $ 923,975 Accrued Legal Fees and Settlements Years Ended December 31, 2021 2020 2019 Beginning balance $ 38,932 $ 30,663 $ 62,763 Accrual for probable losses (1) 9,399 26,468 3,011 Payments (2) (5,533) (14,826) (30,356) Net increase (decrease) in accrued legal fees 1,192 (3,433) (4,884) Other — 60 129 Ending balance $ 43,990 $ 38,932 $ 30,663 (1) Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the consolidated statements of operations. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders Equity | Note 16 — Stockholders’ Equity Common Stock On February 3, 2020, Ocwen’s Board of Directors authorized a share repurchase program for an aggregate amount of up to $5.0 million of Ocwen’s issued and outstanding shares of common stock. During the three months ended March 31, 2020, we completed the repurchase of 377,484 shares of common stock in the open market under this program at prevailing market prices for a total purchase price of $4.5 million for an average price paid per share of $11.90. In addition, Ocwen paid $0.1 million in commissions. The repurchased shares were formally retired as of March 31, 2020. No additional shares were repurchased prior to the program’s expiration on February 3, 2021. Effective August 13, 2020, Ocwen implemented a one-for-15 reverse stock split of all outstanding shares of its common stock and reduced the number of authorized shares of common stock by the same proportion. Shareholders entitled to receive fractional shares of common stock received shares rounded up to the nearest whole share in lieu of such fractional shares, with an aggregate 4,692 additional shares issued. The number of outstanding shares was reduced from 130,013,696 to 8,672,272 and the authorized shares from 200,000,000 to 13,333,333 effective August 13, 2020, with giving effect to the rounding up of fractional shares. The $0.01 par value per share of common stock remained unchanged. As disclosed in Note 14 — Borrowings, concurrent with the issuance of the OFC Senior Secured Notes on March 4, 2021, Ocwen issued to Oaktree warrants to purchase 1,184,768 shares of its common stock (which amount, upon exercise of the warrants, would be equal to 12% of Ocwen’s outstanding common stock as of the date of issuance of such warrants) at an exercise price of $26.82 per share, subject to antidilution adjustments. The warrants may be exercised at any time from the date of issuance through March 4, 2027. While the warrants will not be registered, we entered into a registration rights agreement with Oaktree pursuant to which we will register for resale the shares of common stock issuable upon exercise of the warrants within 18 months after March 4, 2021. On March 4, 2021, the $16.5 million allocated fair value of the warrants was reported as Additional Paid-in Capital in our consolidated balance sheet, net of allocated debt issuance costs of $0.8 million. On May 3, 2021, concurrent with the issuance of the second tranche of OFC Senior Secured Notes described above, and in connection with the closing of the Transaction Agreement dated December 21, 2020 and disclosed in Note 11 — Investment in Equity Method Investee, we issued to Oaktree 426,705 shares of our common stock, representing 4.9% of our then outstanding common stock, at a price per share of $23.15 for an aggregate purchase price of $9.9 million, and warrants to purchase 261,248 shares of our common stock (which amount was equal to 3% of Ocwen’s outstanding common stock as of the date of issuance of such warrants) at a price per share of $24.31 in consideration of the transaction. The warrants may be exercised at any time from the date of issuance through May 3, 2025. The issuance of the shares of common stock, warrants, and the shares of common stock issuable upon exercise of the warrants will not be registered under the Securities Act. These securities were or will be (as applicable) issued in a private placement exempt from the registration requirements of the Securities Act. On May 3, 2021, the $12.6 million allocated fair value of the common stock and $4.3 million allocated fair value of the warrants was reported as Common stock, at par value of the shares issued, and Additional Paid-in Capital in our consolidated balance sheet, net of allocated debt issuance costs of $0.5 million. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows: December 31, 2021 2020 Unfunded pension plan obligation, net $ 1,880 $ 8,409 Unrealized losses on cash flow hedges, net 559 674 Other (72) 12 $ 2,366 $ 9,095 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Note 17 — Derivative Financial Instruments and Hedging Activities The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the years ended December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Maturities Notional Fair Value Maturities Notional Fair Value Derivative Assets (Other assets) Forward sales of Reverse loans Feb. 2022 $ 175,000 $ 364 Jan. 2021 $ 30,000 $ 34 Forward loans IRLCs Jan. - Apr. 2022 1,021,978 16,074 Apr. 2021 619,713 22,224 Reverse loans IRLCs Jan. 2022 63,327 2,011 Jan. 2021 11,692 482 TBA forward Pipeline trades Jan. - Mar. 2022 587,000 946 N/A — — Interest rate swap futures Mar. 2022 792,500 1,734 Mar. 2021 593,500 504 Option contracts Jan. 2022 125,000 547 N/A — — Other N/A — — N/A — 2 Total $ 2,764,805 $ 21,675 $ 1,254,905 $ 23,246 Derivative Liabilities (Other liabilities) Forward sales of Reverse loans N/A $ — $ — Jan. 2021 $ 20,000 $ (84) TBA forward Pipeline trades Jan. - Mar. 2022 645,000 (898) N/A — — TBA forward MBS trades Feb. 2022 550,000 (287) Jan. 2021 400,000 (4,554) Option contracts Feb. 2022 450,000 (824) N/A — — Other N/A — (1,070) N/A — — Total $ 1,645,000 $ (3,080) $ 420,000 $ (4,638) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations. Year Ended December 31, 2021 Year Ended December 31, 2020 Gain / (Loss) Gain / (Loss) Amount Financial Statement Line Amount Financial Statement Line Derivative Instruments Forward loans IRLCs $ (6,150) Gain on loans held for sale, net $ 17,479 Gain on loans held for sale, net Reverse loans IRLCs 1,529 Reverse mortgage revenue, net 349 Reverse mortgage revenue, net TBA forward pipeline trades 1,483 Gain on loans held for sale, net (Economic Hedge) — N/A Interest rate swap futures and TBA forward MBS trades — Gain on loans held for sale, net (Economic hedge) (10,140) Gain on loans held for sale, net (Economic hedge) Interest rate swap futures, TBA forward MBS trades and option contracts (9,542) MSR valuation adjustments, net 27,538 MSR valuation adjustments, net Forward sales of Reverse loans 414 Reverse mortgage revenue, net (29) Reverse mortgage revenue, net Other (2) Gain on loans held for sale, net 73 Gain on loans held for sale, net Other (1,070) Other, net — N/A $ (13,339) $ 35,270 Interest Rate Risk MSR Hedging MSRs are carried at fair value with changes in fair value being recorded in earnings in the period in which the changes occur. The fair value of MSRs is subject to changes in market interest rates and prepayment speeds. Through May 2021, management implemented a macro-hedging strategy to reduce the volatility of our MSR portfolio attributable to interest rate changes. As a general matter, the impact of interest rates on the fair value of our MSR portfolio is naturally offset by other exposures, including our loan pipeline and our economic MSR value embedded in our reverse mortgage loan portfolio. Our hedging strategy was targeted at mitigating the residual exposure, which we referred to as our net MSR portfolio exposure. We defined our net MSR portfolio exposure as follows: • our more interest rate-sensitive Agency MSR portfolio, • less the Agency MSRs subject to our agreements with NRZ (See Note 8 — MSR Transfers Not Qualifying for Sale Accounting), • less the unsecuritized reverse mortgage loans and tails classified as held for investment, • less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings, and • less the net value of our held for sale loan portfolio and interest rate lock commitments (pipeline). Effective May 2021, management began hedging its MSR portfolio and its pipeline separately (see below for further description of pipeline hedging ) , effectively ending the macro-hedge strategy previously in place. Under the new MSR hedging strategy, the interest-rate sensitive MSR portfolio exposure is now defined as follows: • Agency MSR portfolio, • expected Agency MSR bulk transactions subject to letters of intent (LOI), • less the Agency MSRs subject to our sale agreements with NRZ and MAV (See Note 8 — MSR Transfers Not Qualifying for Sale Accounting ), • less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings. The objective of our MSR policy is to provide partial hedge coverage of interest-rate sensitive MSR portfolio exposure, considering market and liquidity conditions. The hedge coverage ratio defined as the ratio of hedge and asset rate sensitivity (referred to as DV01) at the time of measurement is subject to lower and upper thresholds, as modeled, of 40% and 60%, respectively. Accordingly, the changes in fair value of our hedging instruments may not fully offset the changes in fair value of our net MSR portfolio exposure attributable to interest rate changes. In addition, while DV01 measures remain within the range of our hedging strategy’s objective, actual changes in fair value of the derivatives and MSR portfolio may not offset to the same extent, due to non-parallel changes in the interest rate curve and the basis risk inherent in the MSR profile and hedging instruments. We continuously evaluate the use of hedging instruments to strive to enhance the effectiveness of our interest rate hedging strategy. Effective October 2021, we refined the scope of the hedge policy to allow for MSRs subject to LOI to be covered under a separate hedge coverage ratio requirement sufficient to preserve the economics of the intended transactions. Our derivative instruments include forward trades of MBS or Agency TBAs with different banking counterparties and exchange-traded interest rate swap futures and interest rate options. TBAs, or To-Be-Announced securities are actively traded, forward contracts to purchase or sell Agency MBS on a specific future date. From time-to-time, we enter into exchange-traded options contracts on Treasury futures, generally in a sell put and buy call option strategy. These derivative instruments are not designated as accounting hedges. We report changes in fair value of these derivative instruments in MSR valuation adjustments, net in our consolidated statements of operations, within the Servicing segment. We may, from time to time, establish inter-segment derivative instruments between the MSR and pipeline hedging strategies to optimize the use of third party derivatives. Such inter-segment derivatives are eliminated in our consolidated financial statements. The derivative instruments are subject to margin requirements, posted as either initial margin or variation margin. Ocwen may be required to post or may be entitled to receive cash collateral with its counterparties through margin calls, based on daily value changes of the instruments. Changes in market factors, including interest rates, and our credit rating could require us to post additional cash collateral and could have a material adverse impact on our financial condition and liquidity. Pipeline Hedging - Interest Rate Lock Commitments and Loans Held for Sale, at Fair Value In our Originations business, we are exposed to interest rate risk and related price risk during the period from the date of the interest rate lock commitment through (1) the commitment cancellation or expiration date or (ii) through the date of sale of the resulting loan into the secondary mortgage market. Loan commitments for forward loans generally range from 5 to 90 days, with the majority of our commitments to borrowers for 75 days and our commitments to correspondent sellers for 7 days. Loans held for sale are generally funded and sold within 5 to 20 days. This interest rate exposure was not individually hedged until May 2021, but rather used as an offset to our MSR exposure and managed as part of our MSR macro-hedging strategy described above. Effective May 2021, we implemented a new pipeline hedging strategy, whereby the interest rate exposure of loans held for sale and interest rate lock commitments is economically hedged with derivative instruments, including forward sales of Agency TBAs. We report changes in fair value of these derivative instruments as gain or loss on economic hedge instruments within gain on loans held-for-sale in our consolidated statements of operations. Advance Match Funded Liabilities We monitor the effect of increases in interest rates on the interest paid on our variable-rate advance financing debt. Earnings on cash and float balances are a partial offset to our exposure to changes in interest expense. We purchase interest rate caps as economic hedges (not designated as a hedge for accounting purposes) when required by our advance financing arrangements. Foreign Currency Exchange Rate Risk |
Interest Income
Interest Income | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Interest Income | Note 18 — Interest Income Years Ended December 31, 2021 2020 2019 Loans held for sale $ 25,889 $ 13,929 $ 14,669 Interest earning cash deposits and other 485 2,070 2,435 $ 26,374 $ 15,999 $ 17,104 |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Interest Expense | Note 19 — Interest Expense Years Ended December 31, 2021 2020 2019 OFC Senior Secured Notes (1) $ 31,656 $ — $ — PHH and PMC senior notes 31,914 26,634 31,804 Mortgage loan warehouse facilities 30,638 15,239 11,100 MSR financing facilities 26,036 15,885 8,112 Advance match funded liabilities 14,238 24,122 26,902 SSTL 2,956 20,465 27,066 Escrow 6,530 7,022 9,145 $ 143,968 $ 109,367 $ 114,129 (1) Notes issued to Oaktree affiliates, inclusive of $5.0 million of amortization of debt issuance costs and discount. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 20 — Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act includes several significant business tax provisions that, among other things, temporarily repealed the taxable income limitation for certain net operating losses (NOL) and allows businesses to carry back NOLs arising in 2018, 2019, and 2020 tax years to the five prior tax years, accelerated refunds of previously generated corporate Alternative Minimum Tax (AMT) credits, and adjusted the business interest expense limitation under section 163(j) from 30% to 50% of Adjusted Taxable Income (ATI) for 2019 and 2020 tax years. Based on information available at the time, we estimated that modifications to the tax rules for the carryback of NOLs and business interest expense limitations would result in U.S. and USVI federal net tax refunds of approximately $62.6 million and $1.4 million, respectively, and as such we recognized an income tax benefit, net of related uncertain tax positions, of $64.0 million in our consolidated financial statements for the year ended December 31, 2020. We recognized an additional $12.6 million of income tax benefit in our financial statements for the year ended December 31, 2021 as we refined estimates and received resolution on uncertainties related to our CARES Act claims. During the years ended December 31, 2021 and 2020, we collected $24.6 million and $51.4 million, respectively, which represents the tax refunds associated with the NOLs generated in 2018 and 2019 carried back to prior tax years. The income tax benefit recognized represents the release of valuation allowances against certain NOL and Section 163(j) deferred tax assets that are now more likely than not to be realizable as a result of certain provisions of the CARES Act as well as a permanent income tax benefit related to the carryback of NOLs created in a tax year that was subject to U.S. federal tax at 21% to a tax year subject to tax at 35%. For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows: Years Ended December 31, 2021 2020 2019 Domestic $ (13,901) $ (118,043) $ (93,487) Foreign 9,530 12,359 (33,004) $ (4,371) $ (105,684) $ (126,491) The components of income tax expense (benefit) were as follows: Years Ended December 31, 2021 2020 2019 Current: Federal $ (20,134) $ (67,080) $ 873 State (1,310) 348 4,460 Foreign 1,554 2,600 7,181 (19,890) (64,132) 12,514 Deferred: Federal (2,265) (26,029) (40,429) State (31) (2,115) (914) Foreign 167 (1,445) 11,993 Provision for (reversal of) valuation allowance on deferred tax assets 2,344 28,215 32,470 215 (1,374) 3,120 Other (2,774) — — Total $ (22,449) $ (65,506) $ 15,634 Ocwen is a global company with operations in the U.S., USVI, India and the Philippines, among other jurisdictions. In the effective tax rate reconciliation, we first calculate income tax expense attributable to worldwide continuing operations at the U.S. statutory tax rate. The foreign tax rate differential therefore represents the difference in tax expense between jurisdictional income taxed at the U.S. statutory rate and each respective jurisdictional statutory rate. Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows: Years Ended December 31, 2021 2020 2019 Expected income tax expense (benefit) at statutory rate $ (918) $ (22,194) $ (26,563) Differences between expected and actual income tax expense: CARES Act (12,631) (79,049) — Provision for (reversal of) valuation allowance on deferred tax assets 2,344 28,214 32,470 Provision for (reversal of) liability for uncertain tax positions (8,700) 13,062 4,198 Interest on refund claims due from tax authorities (2,774) — — Other provision to return differences (954) (3,347) 1,242 Foreign tax differential including effectively connected income (1) 1,401 (2,511) 15,979 State tax, after Federal tax benefit 212 (1,396) (619) Benefit of state NOL carryback claims and amended return filings (1,803) — — Executive compensation disallowance 1,384 594 1,344 Excess tax benefits from share-based compensation (518) 424 381 Other permanent differences 150 382 66 Foreign tax credit (generation) utilization (49) (13) 263 Revaluation of deferred tax assets related to legal entity mergers (5) (2) (25,509) U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion 175 182 11,859 U.S. Tax Reform - BEAT Tax — — (555) Bargain purchase gain disallowance — — 80 Other 237 148 998 Actual income tax expense (benefit) $ (22,449) $ (65,506) $ 15,634 (1) The foreign tax differential includes expense recognized in 2019 for taxable income or losses earned by Ocwen Mortgage Servicing, Inc. (OMS) prior to the merger of OMS into OVIS in 2019, which are taxable in the U.S. as effectively connected income (ECI). The impact of ECI to income tax expense (benefit) for 2019 was $2.6 million. Net deferred tax assets were comprised of the following: December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards - federal and foreign $ 54,569 $ 40,557 Net operating loss carryforwards and credits - state and local 70,680 67,293 Interest expense disallowance 39,277 23,112 Reserve for servicing exposure 6,752 10,273 Accrued legal settlements 9,905 9,200 Partnership losses 8,553 7,316 Stock-based compensation expense 9,857 6,486 Accrued incentive compensation 6,698 6,240 Accrued other liabilities 5,900 5,722 Lease liabilities 2,549 4,943 Intangible asset amortization 4,964 4,541 Foreign deferred assets 3,763 3,731 Tax residuals and deferred income on tax residuals 1,460 2,968 Bad debt and allowance for loan losses 4,014 — Other 5,133 6,035 234,074 198,417 Deferred tax liabilities Mortgage servicing rights amortization 57,324 8,123 Bad debt and allowance for loan losses — 1,951 Other 1,312 1,151 58,636 11,225 175,438 187,192 Valuation allowance (172,109) (183,649) Deferred tax assets, net $ 3,329 $ 3,543 As of December 31, 2021, we had a deferred tax asset, net of deferred tax liability, of $175.4 million including $171.1 million in the U.S. Valuation Allowances We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that the deferred tax asset can be realized in future periods. In these evaluations, we gave more significant weight to objective evidence, such as our actual financial condition and historical results of operations, as compared to subjective evidence, such as projections of future taxable income or losses. Both the U.S. and USVI jurisdictions are in a three-year cumulative loss position as of December 31, 2021. Other factors considered in these evaluations are estimates of future taxable income, future reversals of temporary differences, taxable income in prior carryback years, tax character and the impact of tax planning strategies that may be implemented, if warranted. As a result of these evaluations, we recorded a valuation allowance of $171.1 million and $182.7 million on our U.S. net deferred tax assets at December 31, 2021 and 2020, respectively, and a valuation allowance of $0.4 million on our USVI net deferred tax assets at both December 31, 2021 and 2020. These U.S. and USVI jurisdictional deferred tax assets are not considered to be more likely than not realizable based on all available positive and negative evidence. We intend to continue maintaining a full valuation allowance on our net deferred tax assets in both the U.S. and USVI until there is sufficient evidence to support the reversal of all or some portion of these allowances. Net Operating Loss Carryforwards At December 31, 2021, we had U.S. NOL carryforwards of $256.9 million, and state NOL and tax credit carryforwards valued at $70.7 million. These U.S. federal and state NOL carryforwards will expire beginning 2022 through 2041 with U.S. federal NOLs generated after 2017 never expiring. We believe that it is more likely than not that the benefit from certain U.S. federal and state NOL carryforwards will not be realized. In recognition of this risk, we have provided a total valuation allowance of $53.9 million and $70.7 million on the deferred tax assets relating to the U.S. federal and state NOL carryforwards, respectively. If our assumptions change and we determine we will be able to realize these NOLs, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of December 31, 2021 will be accounted for as a reduction of income tax expense. Additionally, $334.5 million of USVI NOLs have been carried back to offset prior period tax due in the USVI and we have, therefore, reflected the tax-effect of this attribute as a $12.9 million income taxes receivable. We also have U.S. capital loss carryforwards of $7.5 million at December 31, 2021 against which a valuation allowance has been recorded. Change of Control: Annual Limitations on Utilization of Tax Attributes NOL carryforwards may be subject to annual limitations under Internal Revenue Code Section 382 (Section 382) (or comparable provisions of foreign or state law) in the event that certain changes in ownership were to occur. We periodically evaluate our NOL carryforwards and whether certain changes in ownership have occurred that would limit our ability to utilize a portion of our NOL and tax credit carryforwards. If it is determined that an ownership change(s) has occurred, there may be annual limitations on the use of these NOL and tax credit carryforwards under Section 382 (or comparable provisions of foreign or state law). Ocwen and PHH have both experienced historical ownership changes that have caused the use of certain tax attributes to be limited and have resulted in the write-off of certain of these attributes based on our inability to use them in the carryforward periods defined under the tax laws. Ocwen continues to monitor the ownership in its stock to evaluate whether any additional ownership changes have occurred that would further limit its ability to utilize certain tax attributes. As such, our analysis regarding the amount of tax attributes that may be available to offset taxable income in the future without restrictions imposed by Section 382 may continue to evolve. Uncertain Tax Positions Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2018 through the present, our USVI corporate tax return for the years ended December 31, 2018 through the present, and our India corporate tax returns for the years ended March 31, 2010 through the present. During 2021, we concluded our audit in the USVI jurisdiction for tax years 2013 - 2016 related to the carryback of losses generated in 2015 and 2016 to tax years 2013 and 2014, respectively, without any adjustment. A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows: Years Ended December 31, 2021 2020 2019 Beginning balance $ 20,638 $ 10,589 $ 9,622 Additions for tax positions of current year — — 207 Additions for tax positions of prior years 178 15,242 3,110 Reductions for tax positions of prior years (6,361) (219) — Reductions for settlements (555) (3,067) (1,293) Lapses in statute of limitations (2,365) (1,907) (1,057) Ending balance (1) $ 11,535 $ 20,638 $ 10,589 (1) At December 31, 2021 and 2020, $11.3 million and $12.8 million, respectively, of the balance is included in the Liability for uncertain tax positions in Other liabilities, with the remaining $0.2 million and $7.8 million, respectively, included as a reduction of Income taxes receivable in Receivables. We recognized total interest and penalties of $0.1 million, $(1.6) million and $2.7 million as income tax expense or (benefit) in 2021, 2020 and 2019, respectively. At December 31, 2021 and 2020, accruals for interest and penalties were $3.4 million, and are included in the Liability for uncertain tax positions in Other liabilities. As of December 31, 2021 and 2020, we had unrecognized tax benefits for uncertain tax positions, excluding accrued interest and penalties, of $11.5 million and $20.6 million, respectively, all of which if recognized would affect the effective tax rate. It is reasonably possible that there could be a change in the amount of our unrecognized tax benefits within the next 12 months due to activities of the Internal Revenue Service or other taxing authorities, including proposed assessments of additional tax, possible settlement of audit issues, or the expiration of applicable statutes of limitations. We believe that it is reasonably possible that a decrease of up to $10.1 million in unrecognized tax benefits may be necessary within the next 12 months. Undistributed Foreign Earnings and Non-U.S. Jurisdictions As of December 31, 2021, we have recognized a deferred tax liability of $0.6 million for foreign subsidiary undistributed earnings. We do not consider our foreign subsidiary undistributed earnings to be indefinitely invested outside the U.S. |
Basic and Diluted Earnings (Los
Basic and Diluted Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings (Loss) per Share | Note 21 — Basic and Diluted Earnings (Loss) per Share Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the year. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Ocwen by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding restricted stock awards, stock options and warrants as determined using the treasury stock method. For 2020 and 2019, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss. Years Ended December 31, 2021 2020 2019 Basic earnings (loss) per share Net income (loss) $ 18,078 $ (40,178) $ (142,125) Weighted average shares of common stock outstanding 9,021,975 8,748,725 8,962,961 Basic earnings (loss) per share $ 2.00 $ (4.59) $ (15.86) Diluted earnings (loss) per share Net income (loss) $ 18,078 $ (40,178) $ (142,125) Weighted average shares of common stock 9,021,975 8,748,725 8,962,961 Effect of dilutive elements Contingent issuance of common stock 38,685 — — Common stock warrants 152,208 — — Stock option awards 60 — — Common stock awards 169,539 — — Dilutive weighted average shares of common stock 9,382,467 8,748,725 8,962,961 Diluted earnings (loss) per share $ 1.93 $ (4.59) $ (15.86) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 143,593 199,079 211,175 Market-based (2) 87,509 125,395 52,480 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. |
Employee Compensation and Benef
Employee Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Compensation and Benefit Plans | Note 22 — Employee Compensation and Benefit Plans We maintain defined contribution plans to provide post-retirement benefits to our eligible employees and two non-contributory defined benefit pension plans which are frozen and cover certain eligible active and former employees. We also maintain additional incentive compensation plans for certain employees. We designed these plans to facilitate a pay-for-performance culture, further align the interests of our officers and key employees with the interests of our shareholders and to assist in attracting and retaining employees vital to our long-term success. These plans are summarized below. Defined Contribution Savings Plans We sponsor defined contribution savings plans for eligible employees in the U.S (401(k) plans) and India (Provident Fund). Contributions of participating employees to the plans are matched on the basis specified by these plans. For the 401(k) plans, we match 50% of the first 6% of each eligible participant’s contribution to the 401(k) plans with maximum aggregate matching of $8,700 for 2021. For the Provident Fund, both the employee and the employer are required to make minimum contributions to the fund at a predetermined rate (currently 12%) applied to a portion of the employee's salary. Employers are not required to make contributions beyond this minimum. Our contributions to these plans were $5.1 million, $5.2 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Defined Benefit Pension Plans Ocwen sponsors different non-contributory defined benefit pension plans for which benefits are based on an employee’s years of credited service and a percentage of final average compensation, or as otherwise described by each plan. Both defined benefit pension plans were assumed as part of business acquisitions and are frozen, wherein the plans only accrue additional benefits for a limited number of employees and no additional employees are eligible for participation in the plans. The following table shows the total change in the benefit obligation, plan assets and funded status for the pension plans: December 31, 2021 2020 Projected benefit obligation $ 54,262 $ 58,965 Fair value of plan assets 50,078 46,303 Unfunded status recognized in Other liabilities $ (4,183) $ (12,662) Amounts recognized in Accumulated other comprehensive loss $ 1,955 $ 8,484 The rate used to discount the projected benefit obligation of the PHH pension plan increased from 2.25% in 2020 to 2.75% in 2021, resulting in a decrease of $3.2 million in the plan’s benefit obligation. The rate used to discount the projected benefit obligation of the Berkeley plan increased from 2.59% to 2.80%. The net periodic benefit cost related to the defined benefit pension plans, included in Other expenses, was $(0.9) million, $(0.2) million and $(2.0) million for 2021, 2020 and 2019 respectively. As of December 31, 2021, future expected benefit payments to be made from the assets of the defined benefit pension plans is $2.9 million, for each of the years ending December 31, 2022 and 2023, $2.8 million for year ending December 31, 2024, $3.0 million for each of the years ending December 31, 2025 and 2026. The expected benefit payments to be made for the subsequent five years ending December 31, 2027 through 2031 are $15.6 million. Ocwen contributes to the defined benefit pension plans amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws as well as additional amounts at their discretion. Our contributions to the defined benefit pension plans were $1.0 million, $2.1 million and $0.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Gratuity Plan In accordance with India law, OFSPL provides for a defined benefit retirement plan (Gratuity Plan) covering all of its employees in India. The Gratuity Plan provides a lump-sum payment to vested employees at retirement or termination of employment based upon the respective employee’s salary and years of employment. OFSPL provides for the gratuity benefit through actuarially determined valuations. The following table shows the total change in the benefit obligation, plan assets and funded status for the Gratuity Plan: December 31, 2021 2020 Benefit obligation $ 6,305 $ 6,091 Fair value of plan assets 42 40 Unfunded status recognized in Other liabilities $ (6,263) $ (6,051) During the years ended December 31, 2021, 2020 and 2019, benefits of $0.8 million, $0.8 million, and $0.9 million were paid by OFSPL. As of December 31, 2021, future expected benefit payments to be made from the assets of the Gratuity Plan, which reflect expected future service, is $1.1 million, $1.0 million, $0.9 million, $0.8 million and $0.7 million for the years ending December 31, 2022, 2023, 2024, 2025 and 2026, respectively. The expected benefit payments to be made for the subsequent five years ending December 31, 2027 through 2031 are $2.2 million. Annual Incentive Plan The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan and the 2021 Equity Incentive Plan (the 2021 Equity Plan) are our primary incentive compensation plans for executives and other eligible employees. Previously issued equity awards remain outstanding under the 2017 Performance Incentive Plan (the 2017 Equity Plan) and the 2007 Equity Incentive Plan (the 2007 Equity Plan). Under the terms of these plans, participants can earn cash and equity-based awards as determined by the Compensation and Human Capital Committee of the Board of Directors (the Committee). The awards are based on objective and subjective performance criteria established by the Committee. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. We recognized $23.6 million, $25.7 million and $16.6 million of compensation expense during 2021, 2020 and 2019, respectively, related to annual incentive compensation awarded in cash. The 2007 Equity Plan, the 2017 Equity Plan and the 2021 Equity Incentive Plan authorize the grant of stock options, restricted stock, stock units or other equity-based awards, including cash-settled awards, to employees. Effective with the approval of the 2021 Equity Plan by Ocwen shareholders on May 25, 2021, no new awards have been, or will be, granted under the 2017 Equity Plan. The number of remaining shares available for award grants under the 2017 Equity Plan became available for award grants under the 2021 Equity Incentive Plan effective upon shareholder approval. At December 31, 2021, there were 494,585 shares of common stock remaining available for future issuance under these plans. Equity Awards Outstanding equity awards granted under the 2007 Equity Plan, the 2017 Equity Plan and 2021 Equity Incentive Plan had the following characteristics in common: Type of Award Percent of Total Equity Award Vesting Period 2012 - 2014 Awards: Options: Servicing Condition - Time-based 45 % Ratably over four years (25% on each of the four anniversaries of the grant date) Market Condition: Market performance-based 50 Over three years beginning with 25% vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Extraordinary market performance-based 5 Over three years beginning with 25% vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Total Award 100 % 2015 - 2016 Awards: Type of Award Percent of Total Equity Award Vesting Period Options: Service Condition - Time-based 100 % Ratably over four years (25% vesting on each of the first four anniversaries of the grant date.) 2017 - 2021 Awards: Options: Service Condition - Time-based 6 % Ratably over three years (1/3 vesting on each of the first three anniversaries of the grant date). Stock Units: Service Condition - Time-based 41 Over three years with 1/3 vesting on each of the first three anniversaries of the grant date. Market Condition: Time-based vesting schedule and Market performance-based vesting date 9 Vest over four years with 25% vesting on each of the four anniversaries of the grant date. However, none are considered vested until the first trading day (if any) on or before the 4 th anniversary of the award date on which the average stock price equals or exceeds the price set in the individual award agreement, at which time all units that have met their time-based vesting schedule vest immediately with the remainder vesting in accordance with their time-based schedule. Time-based vesting schedule and Market performance-based vesting date 44 Cliff-vest 100% after three years. Vesting of units credited based on Total Shareholder Return (TSR) for any performance period is subject to continued service through the third anniversary of the grant. There is no interim or ratable vesting. The number of performance-based awards that will vest is determined by Ocwen’s TSR, either absolute or relative to a performance peer group, during each performance period. Total Award 100 % The contractual term of all options granted is ten Years Ended December 31, Stock Options 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 124,866 $ 274.30 131,962 $ 282.30 139,507 $ 288.30 Granted (1) — — — — 3,427 31.20 Exercised — — — — — — Forfeited / Expired (2) (10,208) 189.00 (7,096) 423.80 (10,972) 280.35 Outstanding at end of year (3)(4) 114,658 $ 281.89 124,866 $ 274.30 131,962 $ 282.30 Exercisable at end of year (3)(4)(5) 108,754 $ 273.97 110,484 $ 283.08 105,384 $ 302.40 (1) Stock options granted in 2019 include 2,212 options awarded to Ocwen’s Chief Financial Officer at a strike price of $32.55 equal to the closing price of our common stock on the effective date of her employment. (2) Includes 10,208, 0, and 4,913 options which expired unexercised in 2021, 2020 and 2019, respectively, because their exercise price was greater than the market price of Ocwen’s stock. (3) At December 31, 2021, 5,167 options with a market condition for vesting based on an average common stock trading price of $484.19, had not met their performance criteria. Outstanding and exercisable stock options at December 31, 2021 have a net aggregate intrinsic value of $0.1 million. A total of 44,500 market-based options were outstanding at December 31, 2021, of which 39,333 were exercisable. (4) At December 31, 2021, the weighted average remaining contractual term of options outstanding and options exercisable was 2.02 years and 1.98 years, respectively. (5) The total fair value of stock options that vested and became exercisable during 2021, 2020 and 2019, based on grant-date fair value, was $0.3 million, $0.3 million and $0.6 million, respectively. In 2019, Ocwen established a Long-Term Incentive (LTI) program in connection with changes made by the Committee to the compensation structure of Ocwen’s executives. The LTI program is designed to promote actions and decisions aligned with our strategic objectives and reward our executives and other program participants for long-term value creation for our shareholders in a manner that is consistent with our pay-for-performance philosophy. The awards granted in 2019 and 2020 under the LTI program are cash-settled to avoid share dilution, except that awards granted to Ocwen’s Chief Executive Officer will be settled in shares of common stock. The program includes both a time-vesting component for retention purposes and a performance component to align with pay-for-performance objectives, using TSR as the performance metric. In 2019, performance was based on absolute TSR; in 2020 and 2021, performance is measured based on TSR relative to performance peer groups. The LTI awards are granted under the 2017 Equity Plan. A total of 326,453 awards were granted in 2019 under the LTI, of which 251,076 were cash-settled awards and 75,377 were equity-settled awards granted to Ocwen’s CEO as disclosed above. A total of 693,896 awards were granted in 2020 under the LTI, of which 543,896 were cash-settled awards and 150,000 were equity-settled awards granted to Ocwen’s CEO. On September 10, 2020, the Committee granted one-time long-term incentive awards to certain Ocwen executives. A total of 57,891 cash-settled time-based awards were granted with a vesting period of 18 months from the date of grant, subject to continued employment and other conditions. A total of 465,026 were granted in 2021 under the LTI, of which 115,173 were equity-settled awards granted to Ocwen’s CEO, 117,233 were hybrid awards granted to certain Ocwen executives and 232,620 were cash-settled. The CEO's PRSU award contains a provision that will allow Ocwen to settle a portion of the units in cash in the unlikely event of above-target performance levels resulting in a shortfall of shares available in the equity plan. This will only occur if performance is significantly above target, The hybrid awards contain a provision that will allow Ocwen to settle some or all share units in shares rather than cash, subject to the availability of shares for issuance under the 2017 Equity Plan. We determined that in the case of the hybrid awards, Ocwen has sole discretion in the choice of settlement in shares or cash and it has both the intent and the ability to deliver the shares, therefore we accounted the hybrid awards as equity-settled awards, except 436 hybrid awards, which were accounted liability awards. Of the awards granted under the LTI program in 2021, 2020 and 2019, 50%, 50% and 74%, respectively, were performance-based with a market condition and the remaining 50%, 50% and 26%, respectively, were time-based. The time-based awards vest equally on the first, second and third anniversaries of the award grant date if the continued employment condition is met. The recurring annual performance-based awards cliff-vest 100% after three years subject to meeting the performance conditions and continuing employment. Certain one-time transitional performance-based awards granted in 2019 vest equally on the first, second and third anniversaries of the award grant date subject to meeting the performance conditions and continuing employment. Because the cash-settled awards must be settled in cash, they are classified as liabilities (Other liabilities) in the consolidated balance sheets and remeasured at fair value at each reporting date with adjustments recorded as Compensation expense in the consolidated statements of operations. Years Ended December 31, Stock Units - Equity Awards 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Unvested at beginning of year 261,647 $ 21.74 177,275 $ 39.45 196,453 $ 56.25 Granted (1) 236,593 33.50 150,000 8.78 83,797 30.00 Vested (2)(3) (71,855) 33.43 (62,954) 42.25 (75,846) 46.20 Forfeited/Cancelled (10,159) 39.74 (2,674) 26.85 (27,129) 143.70 Unvested at end of year (4)(5) 416,226 $ 25.97 261,647 $ 21.74 177,275 $ 39.45 (1) Stock units granted in 2021, 2020 and 2019 include 115,173, 150,000 and 75,377 units, respectively, granted to Ocwen’s CEO under the new long-term incentive (LTI) program described below. Stock units granted in 2021 includes 4,623 units added to Ocwen’s CEO for performance factor related to 2020 awards under LTI program. (2) The total intrinsic value of stock units vested, which is defined as the market value of the stock on the date of vesting, was $2.1 million, $1.0 million and $2.1 million for 2021, 2020 and 2019, respectively. (3) The total fair value of the stock units that vested during 2021, 2020 and 2019, based on grant-date fair value, was $2.4 million, $2.7 million and $3.5 million, respectively. (4) Excluding the 236,922 market-based stock awards that have not met their performance criteria (and time-vesting requirements, where applicable), the net aggregate intrinsic value of stock awards outstanding at December 31, 2021 was $7.2 million. At December 31, 2021, 3,840 stock units with a market condition for vesting based on an average common stock trading price of $65.10, as well as 37,688 stock units requiring an average common stock trading price of $38.34 to vest a minimum of 50% of units, had not yet met the market condition (and time-vesting requirements, where applicable). The performance for 195,394 stock units is measured based on TSR relative to Ocwen’s compensation peer group TSR over the four performance periods. (5) At December 31, 2021, the weighted average remaining contractual term of share units outstanding was 2.0 years. Years Ended December 31, Stock Units - Liability Awards 2021 2020 2019 Unvested units at beginning of year 728,373 243,441 — Granted 233,056 601,787 251,076 Vested (105,974) (21,909) — Forfeited/Cancelled (1) (111,507) (94,954) (7,635) Other (2) 14,678 8 — Unvested units at end of year 758,626 728,373 243,441 (1) Units forfeited/cancelled in 2021 and 2020 include 35,000 and 36,898 units, respectively, related to 2019 transitional performance-based awards. These units were forfeited as the TSR was below the threshold performance levels. (2) Includes, 14,681 units added in 2021 as a result of a performance factor related to 2020 performance-based awards, and 8 shares added in 2020 representing the conversion of fractional stock units on the reverse stock split. The number of performance-based awards that will vest under the LTI program awards for 2021 and 2020 is determined by Ocwen’s TSR relative to a performance peer group (18 companies selected by the Committee, unique for each grant year) during each performance period. Median (50 th percentile) TSR performance will earn the target number of performance-based awards. The awards use four distinct weighted performance periods to measure overall performance – for 2021, three annual periods ending March 2, 2022, 2023, 2024 and one three-year period ending March 2, 2024; for 2020, three annual periods ending March 30, 2021, 2022, 2023 and one three-year period ending March 30, 2023. Note that the awards do not vest at the end of each performance period. Vesting of units credited based on the TSR for any performance period is subject to continued service through the third anniversary of the grant date. There is no interim or ratable vesting. The number of performance-based awards that will vest under the 2019 annual LTI program is determined by Ocwen’s total TSR over a three-year performance period ending March 29, 2022. The 2019 transitional performance-based awards vest in separate tranches based on the TSR, as defined, over one, two and three-year annual performance periods ending March 29, 2020, 2021 and 2022. For all performance-based awards, the number of units earned depends on the level of performance achieved (Threshold = 50%; Target = 100%; Maximum = 200%, with results between levels interpolated). No units will be awarded for performance below the Threshold level. TSR is calculated using the average closing stock prices during the 30 trading days up to and including the beginning and end date of each performance period. Compensation expense related to all stock-based awards is initially measured at fair value on the grant date using an appropriate valuation model based on the vesting conditions of the awards. Awards classified as liabilities are subsequently remeasured at fair value at each reporting date, as described above. The fair value of the time-based option awards was determined using the Black-Scholes options pricing model, while a lattice (binomial) model was used to determine the fair value of the market-based option awards. Lattice (binomial) models incorporate ranges of assumptions for inputs. Stock unit awards with only a service condition are valued at their intrinsic value, which is the market value of the stock on the date of the award. The fair value of Stock unit awards with both a service condition and a market-based vesting condition is based on the output of a Monte Carlo simulation. The following assumptions were used to value awards: Years Ended December 31, 2021 2020 2019 Monte Carlo Monte Carlo Black-Scholes Monte Carlo Risk-free interest rate 0.01% - 0.77% 0.08% - 0.29% 2.60% 1.16% – 2.40% Expected stock price volatility (1) 95% - 96.4% 88.7% - 94.1% 68% 72.5% - 75.9% Expected dividend yield —% —% —% —% Expected life (in years) (2) (3) (3) 8.5 (3) Contractual life (in years) N/A N/A N/A N/A Fair value $36.09 - $62.03 $24.36 - $38.75 $20.55 - $23.25 $26.25 - $33.75 (1) We generally estimate volatility based on the historical volatility of Ocwen’s common stock over the most recent period that corresponds with the estimated expected life of the option. For awards valued using a Monte Carlo simulation, volatility is computed as a blend of historical volatility based on daily stock price returns and implied volatility based on traded options on Ocwen’s common stock. (2) For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. No option awards were granted during the years ended December 31, 2021 or 2020. (3) The stock units that contain both a service condition and a market-based condition are valued using the Monte Carlo simulation. The expected term is derived from the output of the simulation and represents the expected time to meet the market-based vesting condition. For equity awards with both service and market conditions, the requisite service period is the longer of the derived or explicit service period. In this case, the explicit service condition (vesting period) is the requisite service period, and the graded vesting method is used for expense recognition. The following table summarizes Ocwen's stock-based compensation expense included as a component of Compensation and benefits expense in the consolidated statements of operations: Years Ended December 31, 2021 2020 2019 Compensation expense - Equity awards Stock option awards $ 254 $ (431) $ (121) Stock awards 4,465 2,832 2,818 $ 4,719 $ 2,401 $ 2,697 Compensation expense - Liability awards $ 15,108 $ 5,642 $ 1,082 Excess tax benefit (tax deficiency) related to share-based awards $ 518 $ (424) $ (381) |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Note 23 — Business Segment Reporting Our business segments reflect the internal reporting that we use to evaluate operating performance of services and to assess the allocation of our resources. A brief description of our current business segments is as follows: Servicing. This segment is primarily comprised of our residential mortgage servicing business and accounted for 78% of our total revenues in 2021. We provide residential and commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. In most cases, we provide these services either because we purchased the MSRs from the owner of the mortgage, retained the MSRs on the sale or securitization of residential mortgage loans or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Our residential servicing portfolio includes both forward and reverse conventional, government-insured and non-Agency mortgage loans, including the reverse mortgage loans classified as loans held for investment on our balance sheet. Non-Agency loans include subprime loans, which represent residential loans that generally did not qualify under GSE guidelines or have subsequently become delinquent. Originations. The Originations segment (previously Lending) purchases and originates conventional and government-insured residential forward and reverse mortgage loans through multiple channels. The loans are typically sold shortly after origination on a servicing retained basis. We originate forward mortgage loans directly with customers (recapture channel) as well as through correspondent lending arrangements since the second quarter of 2019. We originate reverse mortgage loans in all three channels through our correspondent lending arrangements, broker relationships (wholesale) and retail channels. In addition to our originated MSRs, we acquire MSRs through multiple channels, including flow purchase agreements, the Agency Cash Window programs and bulk MSR purchases. Corporate Items and Other. Corporate Items and Other includes revenues and expenses of corporate support services, CR Limited (CRL), our wholly-owned captive reinsurance subsidiary, inactive entities, business activities that are individually insignificant, revenues and expenses that are not directly related to other reportable segments, interest income on short-term investments of cash, gain or loss on extinguishment of debt, interest expense on unallocated corporate debt and foreign currency exchange gains or losses. Corporate Items and Other also includes severance, retention, facility-related and other expenses incurred in 2019 and 2020 related to our cost re-engineering initiatives. Our cash balances are included in Corporate Items and Other. CRL provides re-insurance related to coverage on foreclosed real estate properties owned or serviced by us. Revenues and expenses directly associated with each respective business segments are included in determining its results of operations. We allocate certain expenses incurred by corporate support services to each business segment using various methodologies intended to approximate the utilization of such services. Beginning in 2020, we updated our methodology to allocate overhead costs incurred by corporate support services to the Servicing and Originations segments, which now incorporates the utilization of various measurements primarily based on time studies, personnel volumes and service consumption levels. In prior periods, corporate support services costs were primarily allocated based on relative segment size. Support services costs not allocated to the Servicing and Originations segments are retained in the Corporate Items and Other segment along with certain other costs including certain litigation and settlement related expenses or recoveries, costs related to our re-engineering initiatives, and other costs related to operating as a public company. We allocate a portion of interest income to each business segment, including interest earned on cash balances. Interest expense on direct asset-backed financings are recorded in the respective Servicing and Originations segments. We allocate interest expense on corporate debt from Corporate Items and Other to the Servicing segment and the Originations segment (starting in the fourth quarter of 2021) based on relative financing requirements. As a result of our risk management strategy to hedge the interest rate risk of our net MSR portfolio, the fair value changes of third-party derivative instruments were reported within MSR valuation adjustments, net. For management segment reporting purposes, we established inter-segment derivative instruments to transfer the risks and allocate the associated fair value changes of derivatives between Servicing and Originations, and specifically between MSR valuation adjustments, net and Gain on loans held for sale, net (Gain/loss on economic hedge instruments). In the second quarter of 2021, we began separately hedging our MSR portfolio and pipeline. We may, from time to time, establish intersegment derivative instruments between our MSR and pipeline hedging strategies to optimize the use of third-party derivatives. The inter-segment derivative fair value changes are eliminated in the consolidated financial statements in the Corporate Eliminations column in the table below. Financial information for our segments is as follows: Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2021 Servicing and subservicing fees $ 773,459 $ 8,482 $ — $ — $ 781,941 Reverse mortgage revenue, net (2,335) 82,011 — — 79,676 Gain on loans held for sale, net (1) 46,596 124,489 — (25,330) 145,755 Other revenue, net 1,660 34,909 6,158 — 42,727 Revenue 819,380 249,891 6,158 (25,330) 1,050,099 MSR valuation adjustments, net (1) (160,396) 25,166 — 25,330 (109,900) Operating expenses 342,424 172,797 94,106 — 609,327 Other income (expense): Interest income 8,245 17,678 451 — 26,374 Interest expense (104,578) (22,972) (16,418) — (143,968) Pledged MSR liability expense (209,121) (834) 54 — (209,901) Loss on extinguishment of debt — — (15,458) — (15,458) Equity in earnings of unconsolidated entity 3,620 — — — 3,620 Other, net 5,190 (2,282) 1,182 — 4,090 Other expense, net (296,644) (8,410) (30,189) — (335,243) Income (loss) before income taxes $ 19,916 $ 93,850 $ (118,137) $ — $ (4,371) Year Ended December 31, 2020 Servicing and subservicing fees $ 731,221 $ 6,041 $ 58 $ — $ 737,320 Reverse mortgage revenue, net 7,579 53,147 — — 60,726 Gain on loans held for sale, net (1) 14,704 105,164 — 17,368 137,236 Other revenue, net 4,160 14,946 6,524 — 25,630 Revenue 757,664 179,298 6,582 17,368 960,912 MSR valuation adjustments, net (1) (276,252) 41,699 — (17,368) (251,921) Operating expenses (2) 331,885 114,357 129,462 — 575,704 Other income (expense): Interest income 7,061 7,008 1,930 — 15,999 Interest expense (90,671) (9,837) (8,859) — (109,367) Pledged MSR liability expense (152,454) — 120 — (152,334) Other, net 10,752 351 (4,372) — 6,731 Other expense, net (225,312) (2,478) (11,181) — (238,971) Income (loss) before income taxes $ (75,785) $ 104,162 $ (134,061) $ — $ (105,684) Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2019 Servicing and subservicing fees $ 974,160 $ 1,254 $ 93 $ — $ 975,507 Reverse mortgage revenue, net 63,459 22,850 — — 86,309 Gain on loans held for sale, net 5,426 32,865 9 — 38,300 Other revenue, net 5,445 4,729 13,085 — 23,259 Revenue 1,048,490 61,698 13,187 — 1,123,375 MSR valuation adjustments, net (120,864) (12) — — (120,876) Operating expenses (2) (3) 547,976 72,457 53,506 — 673,939 Other income (expense): Interest income 10,085 5,243 1,776 — 17,104 Interest expense (102,525) (7,590) (4,014) — (114,129) Pledged MSR liability expense (372,172) — — — (372,172) Gain on extinguishment of debt — — 5,099 — 5,099 Other, net 12,294 892 (4,139) — 9,047 Other income (expense), net (452,318) (1,455) (1,278) — (455,051) Loss before income taxes $ (72,668) $ (12,226) $ (41,597) $ — $ (126,491) (1) Corporate Eliminations for 2021 and 2020 includes inter-segment derivative eliminations of $25.3 million and $17.4 million reported as gain on loans held for sale, net, respectively, with a corresponding offset in MSR valuation adjustments, net. (2) In 2020, we executed certain cost re-engineering initiatives to generate further cost savings, some of which qualify as restructuring charges under GAAP, including the partial abandonment of certain leased properties and additional severance costs. As a result of these initiatives, we accelerated the depreciation of facility lease ROU assets and leasehold improvements by $3.3 million, recorded $6.3 million of facility and other related exit costs, and accrued $3.4 million of employee severance costs. In 2019, we executed cost re-engineering opportunities that extended beyond eliminating redundant costs through the PHH integration process. Costs for this plan totaled $65.0 million, including $35.7 million of employee-related costs, $10.1 million facilities-related and $19.1 million of other costs. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the consolidated statements of operations. Other costs are primarily reported in Professional services expense and Other expenses. The expenses were all incurred within the Corporate Items and Other segment. The remaining liability of $2.0 million at December 31, 2020 is included in Other accrued expenses, a component of Other liabilities in the consolidated balance sheet and was settled in 2021. (3) Included in the Corporate Items and Other segment for 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of amounts previously recognized as expense. Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated December 31, 2021 $ 10,999,204 $ 823,530 $ 324,389 $ 12,147,123 December 31, 2020 9,847,603 379,233 424,291 10,651,127 December 31, 2019 9,580,466 257,416 568,317 10,406,199 Depreciation and Amortization Expense Servicing Originations Corporate Items and Other Business Segments Consolidated Year Ended December 31, 2021: Depreciation expense $ 674 $ 244 $ 9,347 $ 10,265 Amortization of debt discount and issuance costs 687 — 7,105 7,792 Year Ended December 31, 2020: Depreciation expense $ 857 $ 128 $ 18,136 $ 19,121 Amortization of debt discount and issuance costs 470 — 6,522 6,992 Year Ended December 31, 2019: Depreciation expense $ 1,925 $ 93 $ 29,893 $ 31,911 Amortization of debt discount and issuance costs 71 — 4,441 4,512 |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Brokers and Dealers [Abstract] | |
Regulatory Requirements | Note 24 — Regulatory Requirements Our business is subject to extensive regulation and supervision by federal, state, local and foreign governmental authorities, including the Consumer Financial Protection Bureau (CFPB), HUD, the SEC and various state agencies that license and conduct examinations of our servicing and lending activities. In addition, we operate under a number of regulatory settlements that subject us to ongoing reporting and other obligations. From time to time, we also receive requests (including requests in the form of subpoenas and civil investigative demands) from federal, state and local agencies for records, documents and information relating to our servicing and lending activities. The GSEs (and their conservator, the Federal Housing Finance Authority (FHFA)), Ginnie Mae, the United States Treasury Department, various investors, non-Agency securitization trustees and others also subject us to periodic reviews and audits. We must comply with a large number of federal, state and local consumer protection and other laws and regulations, including, among others, the CARES Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Telephone Consumer Protection Act (TCPA), the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act (FDCPA), the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, as well as individual state and local laws, and federal and local bankruptcy rules. These laws and regulations apply to all facets of our business, including, but not limited to, licensing, loan originations, consumer disclosures, default servicing and collections, foreclosure, filing of claims, registration of vacant or foreclosed properties, handling of escrow accounts, payment application, interest rate adjustments, assessment of fees, loss mitigation, use of credit reports, handling of unclaimed property, safeguarding of non-public personally identifiable information about our customers, and the ability of our employees to work remotely. These complex requirements can and do change as laws and regulations are enacted, promulgated, amended, interpreted and enforced, and the requirements applicable to our business have been changing especially rapidly in response to the COVID-19 pandemic. Most recently, the CFPB promulgated certain amendments to Regulation X (which implements RESPA) that became effective on August 31, 2021 and that impose certain additional COVID-19-related requirements with respect to loss mitigation, early intervention call requirements, and initiating new foreclosures before January 1, 2022. The CFPB also promulgated two sets of amendments to Regulation F (which implements the FDCPA), that each became effective on November 30, 2021 and that impose additional requirements regarding contacting borrowers and debt validation communications, among other things. In addition, the actions of legislative bodies and regulatory agencies relating to a particular matter or business practice may or may not be coordinated or consistent. The general trend among federal, state and local legislative bodies and regulatory agencies as well as state attorneys general has been toward increasing laws, regulations, investigative proceedings and enforcement actions with regard to residential real estate lenders and servicers. In addition, a number of foreign laws and regulations apply to our operations outside of the U.S., including laws and regulations that govern licensing, privacy, employment, safety, payroll and other taxes and insurance and laws and regulations that govern the creation, continuation and the winding up of companies as well as the relationships between shareholders, our corporate entities, the public and the government in these countries. Our foreign subsidiaries are subject to inquiries and examinations from foreign governmental regulators in the countries in which we operate outside of the U.S. Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements and satisfying minimum net worth requirements and non-financial requirements such as satisfactory completion of examinations relating to the licensee’s compliance with applicable laws and regulations. We are also subject to seller/servicer obligations under agreements with the GSEs, HUD, FHA, VA and Ginnie Mae, including capital requirements related to tangible net worth, as defined by the applicable agency, an obligation to provide audited financial statements within 90 days of the applicable entity’s fiscal year end as well as extensive requirements regarding servicing, selling and other matters. We believe our licensed entities were in compliance with all of their minimum net worth requirements at December 31, 2021. Our non-Agency servicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have a material adverse impact on our business. The most restrictive of the various net worth requirements for licensing and seller/servicer obligations referenced above is based on the UPB of assets serviced by PMC. Under the applicable formula, the required minimum net worth was $372.1 million at December 31, 2021. PMC’s adjusted net worth was $568.2 million at December 31, 2021. The most restrictive of the various liquidity requirements for licensing and seller/servicer obligations referenced above pertains to PMC and was $40.8 million at December 31, 2021. PMC’s liquid assets were $169.6 million at December 31, 2021. We face regulatory and public scrutiny as an organization and have entered into a number of significant settlements with federal and state regulators and state attorneys general that have imposed additional requirements on our business. Our failure to comply with our settlement obligations to our regulators or with applicable federal, state, local and foreign laws, regulations, licensing requirements and agency guidelines could lead to (i) administrative fines, penalties, sanctions or litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) additional costs to address these matters and comply with the terms of any resulting resolutions, (vii) suspension or termination of our approved agency seller/servicer status, (viii) inability to raise capital or otherwise fund our operations and (ix) inability to execute on our business strategy , which could have a material adverse impact on our business, reputation, results of operations, liquidity and financial condition. New York Department of Financial Services (NY DFS). We operate pursuant to certain regulatory requirements with the NY DFS, including obligations arising under a consent order entered into in March 2017 (the NY Consent Order) and the terms of the NY DFS’ conditional approval in September 2018 of our acquisition of PHH. The conditional approval includes reporting obligations and record retention and other requirements relating to the transfer of loans collateralized by New York property (New York loans) onto our servicing system, the Black Knight Financial Services, Inc. (Black Knight) LoanSphere MSP® servicing system (Black Knight MSP), and certain requirements with respect to the evaluation and supervision of management of both Ocwen and PMC. In addition, we were prohibited from boarding any additional loans onto the REALServicing system and we were required to transfer all New York loans off the REALServicing system by April 30, 2020. The conditional approval also restricts our ability to acquire MSRs with respect to New York loans, so that Ocwen may not increase its aggregate portfolio of New York loans serviced or subserviced by Ocwen by more than 2% per year. This restriction will remain in place until the NY DFS determines that all loans serviced on the REALServicing system have been successfully migrated to Black Knight MSP and that Ocwen has developed a satisfactory infrastructure to board sizable portfolios of MSRs. We transferred all loans onto Black Knight MSP in 2019 and no longer service any loans on the REALServicing system. We believe we have complied with all terms of the PHH acquisition conditional approval to date. We continue to work with the NY DFS to address matters they raise with us as well as to fulfill our commitments under the NY Consent Order and PHH acquisition conditional approval. California Department of Financial Protection and Innovation (CA DFPI). In January 2015 and February 2017, Ocwen Loan Servicing, LLC (OLS) entered into consent orders with the CA DFPI (formerly known as the California Department of Business Oversight) relating to our alleged failure to produce certain information and documents during a routine licensing examination and relating to alleged servicing practices. We have completed all of our obligations under each of these consent orders. In October 2020, we entered into a consent order with the CA DFPI in order to resolve a legacy PHH examination finding and, in conjunction therewith, agreed to pay $62,000 (sixty-two thousand dollars) in penalties. We continue to work with the CA DFPI to address matters they raise with us as well as to fulfill our commitments under the consent order. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 25 — Commitments Servicer Advance Obligations In the normal course of business as servicer or master servicer, we are required to advance loan principal and interest payments (P&I), property taxes and insurance premiums (T&I) on behalf of the borrower, if delinquent or delinquent and under a forbearance plan. We also advance legal fees, inspection, maintenance, and preservation costs (Corporate advances) on properties that are in default or have been foreclosed. Our obligations to make these advances are governed by servicing agreements or guides, depending on investors or guarantor. For PLS loans, generally, we may stop advancing for P&I once future advances are deemed non-recoverable from the net proceeds of the property, although we are generally obligated to continue T&I and Corporate advances until the loan is brought current or until completion of a foreclosure and sale of the REO, in which case, we generally recover our advances from the net proceeds of the property or the pool level proceeds, i.e., generally after the completion of the foreclosure and sale of the REO. For loans in forbearance, Ocwen provides monthly payment deferrals throughout the forbearance period which advance the due date and move the resulting missed payments to or near the loan’s maturity as a non-interest bearing balance. As such, Ocwen does not expect to be out of pocket cash for P&I and T&I advances for any more than one month for eligible PLS loans in forbearance that were not significantly delinquent at the time forbearance was applied to the account. For Ginnie Mae loans, we are required to make advances for the life of the loan without regard to whether we will be able to recover those payments from cure, liquidation proceeds, insurance proceeds, or late payments. We may stop advancing P&I by purchasing loans out of the pool when they are more than 90 days delinquent. To the extent there are excess funds in the custodial accounts, we are permitted to borrow from these amounts if P&I advances are required for our P&I remittance. We are also required to advance both T&I and Corporate advances until cure or liquidation. For loans in forbearance, we advance P&I while the forbearance plan is active. Reimbursement of such P&I advance is expected after the forbearance period ends, through loan resolution, cure or liquidation. For GSE loans, we are required to advance interest payments until the borrower is 120 days delinquent for Fannie Mae loans and P&I until borrower resolution or liquidation for Freddie Mac loans. For Freddie Mac loans, servicers may submit claims for T&I and Corporate advances upon borrower resolution or liquidation. For Fannie Mae loans, we can submit reimbursement claims for certain T&I and Corporate advances after incurring the expense. T&I and Corporate advancing on GSE loans continues until the completion of the foreclosure sale. For GSE loans in forbearance, once we have advanced four months of missed payments on a loan, we have no further obligation to advance scheduled payments as the loan will be moved into an “Actual/Actual” remittance status. Reimbursement of such P&I advance is expected after the forbearance period ends, through loan resolution, cure or liquidation. We are required to make T&I and Corporate advances for loans in forbearance until the loan is brought current or until completion of a foreclosure, but we can submit reimbursement claims for certain T&I and Corporate advances after incurring the expense on Fannie Mae loans. Freddie Mac requires servicers to wait until borrower resolution or liquidation to submit claims for T&I and Corporate advances. As subservicer, we are required to make P&I, T&I and Corporate advances on behalf of servicers following the servicing agreements or guides. Servicers are generally required to reimburse us within 30 days of our advancing under the terms of the subservicing agreements. We are generally reimbursed by NRZ the same day we fund P&I advances, or within no more than three days for servicing advances and certain P&I advances under the Ocwen agreements. NRZ is obligated to fund new servicing advances with respect to the MSRs underlying the Rights to MSRs (RMSR), pursuant to the 2017 Agreements and New RMSR Agreements. NRZ has the responsibility to fund advances for loans where they own the MSR, i.e., are the servicer of record. We are dependent upon NRZ for funding the servicing advance obligations for Rights to MSRs where we are the servicer of record. As the servicer of record, we are contractually required under our servicing agreements to make certain servicing advances even if NRZ does not perform its contractual obligations to fund those advances. NRZ currently uses advance financing facilities in order to fund a substantial portion of the servicing advances that they are contractually obligated to purchase pursuant to our agreements with them. If NRZ were unable to meet its advance funding obligations, we would remain obligated to meet any future advance financing obligations with respect to the loans underlying these Rights to MSRs, which could materially and adversely affect our liquidity, financial condition, results of operations and servicing business. Unfunded Lending Commitments We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $1.5 billion and $2.0 billion at December 31, 2021 and 2020, respectively. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. In 2021, we funded $226.6 million out of the $2.0 billion borrowing capacity as of December 31, 2020. We also had short-term commitments to lend $1.0 billion and $63.3 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at December 31, 2021. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, referred to as warehouse lines. HMBS Issuer Obligations As an HMBS issuer, we assume certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount (MCA repurchases). Active repurchased loans are assigned to HUD and payment is received from HUD, typically within 60 days of repurchase. HUD reimburses us for the outstanding principal balance on the loan up to the maximum claim amount. We bear the risk of exposure if the amount of the outstanding principal balance on a loan exceeds the maximum claim amount. Inactive repurchased loans (the borrower is deceased, no longer occupies the property or is delinquent on tax and insurance payments) are generally liquidated through foreclosure and subsequent sale of REO, with a claim filed with HUD for recoverable remaining principal and advance balances. The recovery timeline for inactive repurchased loans depends on various factors, including foreclosure status at the time of repurchase, state-level foreclosure timelines, and the post-foreclosure REO liquidation timeline. The timing and amount of our obligation with respect to MCA repurchases is uncertain as repurchase is dependent largely on circumstances outside of our control including the amount and timing of future draws and the status of the loan. MCA repurchases are expected to continue to increase due to the increased flow of HECMs and REO that are reaching 98% of their maximum claim amount. Activity with regard to HMBS repurchases, including MCA repurchases, follows: Year Ended December 31, 2021 Active Inactive Total Number Amount Number Amount Number Amount Beginning balance 141 $ 29,852 317 $ 56,449 458 $ 86,301 Additions 321 86,114 293 61,177 614 147,291 Recoveries, net (1) (310) (75,584) (176) (25,089) (486) (100,673) Transfers (14) (5,068) 14 5,068 — — Changes in value — 8 — (3,792) — (3,784) Ending balance 138 $ 35,322 448 $ 93,813 586 $ 129,135 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. Active loan repurchases are classified as Receivables as reimbursement from HUD is generally received within 60 days and are initially recorded at fair value. Inactive loan repurchases are classified as Loans held for sale and recorded at fair value. Loans are reclassified to REO in Other assets or Receivables as the loans move through the resolution process and permissible claims are submitted to HUD for reimbursement. Receivables are valued at net realizable value. REO is valued at the estimated value of the underlying property less cost to sell. Lease Commitments We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2025 exclusive of renewal option periods. At December 31, 2021, the weighted average remaining term of our leases was 1.9 years. A maturity analysis of our lease liability as of December 31, 2021 is summarized as follows: 2022 $ 12,513 2023 3,029 2024 1,385 2025 654 2026 — Thereafter — 17,581 Less: Adjustment to present value (1) (739) Total lease payments, net $ 16,842 (1) At December 31, 2021, the weighted average of the discount rate used to estimate the present value was 7.6% based on our incremental borrowing rate. Operating lease cost for 2021, 2020 and 2019 was $8.8 million, $14.6 million and $26.1 million, respectively. The operating lease cost for 2021, 2020 and 2019 includes $1.6 million, $1.6 million and $5.4 million, respectively, of variable lease expense. Restricted cash includes a $23.2 million deposit as collateral for an irrevocable standby letter of credit issued in connection with one of our leased facilities. This letter of credit requirement under the terms of the lease agreement is primarily the result of PHH not meeting certain credit rating criteria prior to the acquisition, and extends through the lease expiration on December 31, 2022. NRZ Relationship Our Servicing segment has exposure to concentration risk and client retention risk. As of December 31, 2021, our servicing portfolio included significant client relationships with NRZ which represented 21% and 31% of our servicing portfolio UPB and loan count, respectively, and approximately 66% of all delinquent loans that Ocwen services. Our Subservicing Agreements and the Servicing Addendum with NRZ are in their Initial Terms that end in July 2022. Each of the agreements will automatically renew to July 2023, unless NRZ terminates or does not extend the terms as described below. At any time during the Initial Term, subject to proper notice (generally 180 days’ notice), the payment of termination fees and certain other provisions, NRZ has the rights to terminate the Subservicing Agreements and Servicing Addendum for convenience. Since NRZ did not provide a notice of termination in January 2022, 180 days’ prior to the end of the Initial Term, termination fees are no longer payable if NRZ provides a notice of termination before the end of the Initial Term. Following the Initial Term ending July 2022, NRZ may extend the term of the Subservicing Agreements and Servicing Addendum for additional three |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 26 — Contingencies When we become aware of a matter involving uncertainty for which we may incur a loss, we assess the likelihood of any loss. If a loss contingency is probable and the amount of the loss can be reasonably estimated, we record an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. If a reasonable estimate of loss cannot be made, we do not accrue for any loss or disclose any estimate of exposure to potential loss even if the potential loss could be material and adverse to our business, reputation, financial condition and results of operations. An assessment regarding the ultimate outcome of any such matter involves judgments about future events, actions and circumstances that are inherently uncertain. The actual outcome could differ materially. Where we have retained external legal counsel or other professional advisers, such advisers assist us in making such assessments. Litigation In the ordinary course of business, we are a defendant in, or a party or potential party to, many threatened and pending legal proceedings, including proceedings brought by regulatory agencies (discussed further under “Regulatory” below), those brought on behalf of various classes of claimants, and those brought derivatively on behalf of Ocwen against certain current or former officers and directors or others, and those brought under the False Claims Act by private citizens on behalf of the U.S.. In addition, we may be a party or potential party to threatened or pending legal proceedings brought by fair-housing advocates, commercial counterparties, including claims by counterparties in sales and purchases of loans, MSRs or other assets, parties on whose behalf we service or serviced mortgage loans, parties who provide ancillary services including property preservation and other post-foreclosure related services, and parties who provide or provided consulting or other services to Ocwen. The majority of these proceedings are based on alleged violations of federal, state and local laws and regulations governing our mortgage servicing and lending activities, including, among others, the Dodd-Frank Act, the Gramm-Leach-Bliley Act, the FDCPA, the RESPA, the TILA, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the TCPA, the Equal Credit Opportunity Act, as well as individual state licensing and foreclosure laws and federal and local bankruptcy rules. Such proceedings include wrongful foreclosure and eviction actions, bankruptcy violation actions, payment misapplication actions, allegations of wrongdoing in connection with lender-placed insurance and mortgage reinsurance arrangements, claims relating to our property preservation activities, claims related to REO management, claims relating to our written and telephonic communications with our borrowers such as claims under the TCPA and individual state laws, claims related to our payment, escrow and other processing operations, claims relating to fees imposed on borrowers relating to inspection fees, foreclosure attorneys’ fees, reinstatement fees, foreclosure registration fees, payment processing, payment facilitation or payment convenience fees, claims related to ancillary products marketed and sold to borrowers, claims related to call recordings, claims regarding certifications of our legal compliance related to our participation in certain government programs, claims related to improper occupancy inspections, and claims related to untimely recording of mortgage satisfactions. In some of these proceedings, claims for substantial monetary damages are asserted against us. For example, we are currently a defendant in various matters alleging that (1) certain fees imposed on borrowers relating to payment processing, payment facilitation or payment convenience violate the FDCPA and similar state laws, (2) certain fees we assess on borrowers are improperly assessed and/or marked up improperly in violation of applicable state and federal law, (3) we breached fiduciary duties we purportedly owe to benefit plans due to the discretion we exercise in servicing certain securitized mortgage loans, and (4) certain legacy mortgage reinsurance arrangements violated RESPA. In the future, we are likely to become subject to other private legal proceedings alleging failures to comply with applicable laws and regulations, including putative class actions, in the ordinary course of our business. In view of the inherent difficulty of predicting the outcome of any threatened or pending legal proceedings, particularly where the claimants seek very large or indeterminate damages, including punitive damages, or where the matters present novel legal theories or involve a large number of parties, we generally cannot predict what the eventual outcome of such proceedings will be, what the timing of the ultimate resolution will be, or what the eventual loss, if any, will be. Any material adverse resolution could materially and adversely affect our business, reputation, financial condition, liquidity and results of operations. Where we determine that a loss contingency is probable in connection with a pending or threatened legal proceeding and the amount of our loss can be reasonably estimated, we record an accrual for the loss. We have accrued for losses relating to threatened and pending litigation that we believe are probable and reasonably estimable based on current information regarding these matters. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to threatened and pending litigation that materially exceed the amount accrued. Our accrual for probable and estimable legal and regulatory matters, including accrued legal fees, was $44.0 million at December 31, 2021. We cannot currently estimate the amount, if any, of reasonably possible losses above amounts that have been recorded at December 31, 2021 . As previously disclosed, we are subject to individual lawsuits relating to our FDCPA compliance and putative state law class actions based on the FDCPA and state statutes similar to the FDCPA. Ocwen agreed to a settlement in principle of a putative class action , Morris v. PHH Mortgage Corp. , filed in March 2020 in the United States District Court for the Southern District of Florida, alleging that PMC’s and legacy Ocwen’s practices of charging a fee to borrowers who voluntarily use certain optional expedited payment options violates the FDCPA and its state law analogs. Several similar putative class actions have been filed against PMC and Ocwen since July 2019. Following mediation, PMC agreed to the terms of a settlement agreement to resolve all claims in the Morris matter. During the preliminary approval process, several third parties, including a group of State Attorneys General, expressed opposition to the proposed settlement. As a result of this opposition, we also received requests for information from various states regarding our practices, to which we have responded in due course. On November 8, 2021, in a similar lawsuit also challenging our convenience fees practices in California, Torliatt v. PHH Mortgage Corp. (pending in the Northern District of California), the Court granted the plaintiff’s motion for class certification and certified a class of California borrowers. Because the certified Torliatt class that overlaps with the putative class certified in Morris , the Morris settlement cannot move forward in its current form. We have filed a petition with the Ninth Circuit Court of Appeals seeking an appeal of the Torliatt class certification decision and we also filed a motion to stay the Morris proceedings pending resolution of the Torliatt class certification appeal. Ocwen cannot guarantee that the proposed settlement in the Morris matter will receive final approval and in the absence of such approval, Ocwen cannot predict the eventual outcome of the Torliatt or Morris proceedings or similar putative class actions filed against us. In addition, we continue to be involved in legacy matters arising prior to Ocwen’s October 2018 acquisition of PHH, including a putative class action filed in 2008 in the United States District Court for the Eastern District of California against PHH and related entities alleging that PHH’s legacy mortgage reinsurance arrangements between its captive reinsurer, Atrium Insurance Corporation, and certain mortgage insurance providers violated RESPA. See Munoz v. PHH Mortgage Corp. et al . (Eastern District of California). In June 2015, the court certified a class of borrowers who obtained loans with private mortgage insurance through PHH’s captive reinsurance arrangement between June 2007 and December 2009. PHH asserted numerous defenses to the merits of the case. Following pre-trial developments in August 2020, the only issues remaining for trial were whether the plaintiffs had standing to bring their claims and whether the reinsurance services provided by PHH’s captive reinsurance subsidiary, Atrium, were actually provided in order for the safe harbor provision of RESPA to apply. On January 31, 2022, the Court denied a motion by the plaintiffs to enter new evidence and a motion by PHH to decertify the class, which motion PHH may renew if the case ultimately goes to trial. Following the entry of this order, at the request of the parties, the Court dismissed all of the plaintiffs’ claims for lack of standing and entered judgment in favor of PHH. The plaintiffs have the right to appeal. If plaintiffs appeal the judgment or challenge the Court’s January 31, 2022, order, Ocwen will vigorously defend itself. Our current accrual with respect to this matter is included in the $44.0 million legal and regulatory accrual referenced above. At this time, Ocwen is unable to predict the outcome of this lawsuit or the possible loss or range of loss, if any, associated with the resolution of such lawsuit. If our efforts to defend this lawsuit are not successful, our business, reputation, financial condition, liquidity and results of operations could be materially and adversely affected. The same plaintiffs who filed a TCPA class action against Ocwen subsequently filed a similar class action against trustees of RMBS trusts based on vicarious liability for Ocwen’s alleged non-compliance with the TCPA. This class action filed against the trustees has settled, and while the trustees previously have indicated their intent to seek indemnification from Ocwen based on the vicarious liability claims, they have yet to take any formal action. Additional lawsuits have been and may be filed against us in relation to our TCPA compliance. However, a recent Supreme Court decision significantly undercuts the predominant theory of liability under the TCPA, and should provide even greater defenses on which Ocwen can rely when defending existing lawsuits or any additional lawsuits that may be filed. Nevertheless, given the recency of this Supreme Court decision, and the lack of opportunity for lower courts to interpret and apply it, it remains difficult to predict the possible loss or range of loss, if any, above the amount accrued or the potential impact such lawsuits may have on us or our operations. Ocwen intends to vigorously defend against these lawsuits. If our efforts to defend these lawsuits are not successful, our business, reputation, financial condition, liquidity and results of operations could be materially and adversely affected. Ocwen is a defendant in a certified class action in the U.S. District Court in the Eastern District of California where the plaintiffs claim Ocwen marked up fees for property valuations and title searches in violation of California state law. See Weiner v. Ocwen Financial Corp., et al . Ocwen’s motion for summary judgment, filed in June 2019, was denied in May 2020; however, the court ruled that plaintiff’s recoverable damages are limited to out-of-pocket costs, i.e. , the amount of marked-up fees actually paid, rather than the entire cost of the valuation that plaintiffs sought. Ocwen has moved to decertify the class. A jury trial was scheduled to commence March 7, 2022, but on December 22, 2021, the Court vacated the trial setting and associated pretrial conference due to a conflict with the Court’s trial schedule and indicated it would reset the dates after it issues a ruling on the decertification motion and a motion to compel testimony filed by the plaintiffs. At this time, Ocwen is unable to predict the outcome of this lawsuit or any additional lawsuits that may be filed, the possible loss or range of loss, if any, associated with the resolution of such lawsuits or the potential impact such lawsuits may have on us or our operations. Ocwen intends to vigorously defend against this lawsuit. If our efforts to defend this lawsuit are not successful, our business, financial condition liquidity and results of operations could be materially and adversely affected. Ocwen may have affirmative indemnification rights and/or other claims against third parties related to the allegations in the lawsuit. Although we may pursue these claims, we cannot currently estimate the amount, if any, of recoveries from these third parties. We are currently involved in a dispute with a former subservicing client, HSBC Bank USA, N.A. (HSBC), which filed a complaint in the Supreme Court of the State of New York against PHH. See HSBC Bank USA, N.A. v. PHH Mortgage Corp. (Supreme Court of the State of New York). HSBC’s claims relate to alleged breaches of agreements entered into under a prior subservicing arrangement and origination assistance agreement. In its complaint, HSBC also asserted a claim for fraud, which was dismissed by the Court . We believe we have strong factual and legal defenses to the remaining claims and are vigorously defending the action. Ocwen is currently unable to predict the outcome of this dispute or estimate the size of any loss which could result from a potential resolution reached through litigation or otherwise. We are also currently involved in three lawsuits pending in the Supreme Court of the State of New York with a purchaser of MSRs, Mr. Cooper (formerly Nationstar Mortgage Holdings Inc.), who alleges breaches of representations and warranties made by PHH in the MSR sale agreements. The Court dismissed Mr. Cooper’s claims without prejudice in two of the lawsuits; PHH’s motion to dismiss the third lawsuit remains pending. On November 15, 2021 we reached an agreement with Mr. Cooper to resolve the three lawsuits and the settlement amount is included in the $44.0 million legal and regulatory accrual referenced above. Over the past several years, lawsuits have been filed by RMBS trust investors alleging that the trustees and master servicers breached their contractual and statutory duties by (i) failing to require loan servicers to abide by their contractual obligations; (ii) failing to declare that certain alleged servicing events of default under the applicable contracts occurred; and (iii) failing to demand that loan sellers repurchase allegedly defective loans, among other things. Ocwen has received several letters from trustees and master servicers purporting to put Ocwen on notice that the trustees and master servicers may ultimately seek indemnification from Ocwen in connection with the litigations. Ocwen has not yet been impleaded into any of these cases, but it has produced and continues to produce documents to the parties in response to third-party subpoenas. Ocwen has, however, been impleaded as a third-party defendant into five consolidated loan repurchase cases first filed against Nomura Credit & Capital, Inc. in 2012 and 2013. Ocwen is vigorously defending itself in those cases against allegations by the mortgage loan seller-defendant that Ocwen failed to inform its contractual counterparties that it had discovered defective loans in the course of servicing them and had otherwise failed to service the loans in accordance with accepted standards. Ocwen is unable at this time to predict the ultimate outcome of these matters, the possible loss or range of loss, if any, associated with the resolution of these matters or any potential impact they may have on us or our operations. If, however, we were required to compensate claimants for losses related to the alleged loan servicing breaches, then our business, reputation, financial condition, liquidity and results of operations could be adversely affected. In addition, several RMBS trustees have received notices of events of default alleging material failures by servicers to comply with applicable servicing agreements. Although Ocwen has not been sued by an RMBS trustee in response to an event of default notice, there is a risk that Ocwen could be replaced as servicer as a result of said notices, that the trustees could take legal action on behalf of the trust certificate holders, or, under certain circumstances, that the RMBS investors who issue notices of event of default could seek to press their allegations against Ocwen, independent of the trustees. We are unable at this time to predict what, if any, actions any trustee will take in response to an event of default notice, nor can we predict at this time the potential loss or range of loss, if any, associated with the resolution of any event of default notice or the potential impact on our operations. If Ocwen were to be terminated as servicer, or other related legal actions were pursued against Ocwen, it could have an adverse effect on Ocwen’s business, reputation, financial condition, liquidity and results of operations. Regulatory We are subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions. We may also on occasion be subject to foreign regulatory actions in the countries where we operate outside the U.S. Where we determine that a loss contingency is probable in connection with a regulatory matter and the amount of our loss can be reasonably estimated, we record an accrual for the loss. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to regulatory matters that materially exceed any accrued amount. Predicting the outcome of any regulatory matter is inherently difficult and we generally cannot predict the eventual outcome of any regulatory matter or the eventual loss, if any, associated with the outcome. To the extent that an examination, audit or other regulatory engagement results in an alleged failure by us to comply with applicable laws, regulations or licensing requirements, or if allegations are made that we have failed to comply with applicable laws, regulations or licensing requirements or the commitments we have made in connection with our regulatory settlements (whether such allegations are made through administrative actions such as cease and desist orders, through legal proceedings or otherwise) or if other regulatory actions of a similar or different nature are taken in the future against us, this could lead to (i) administrative fines and penalties and litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) damage to our reputation, (vii) inability to raise capital or otherwise fund our operations and (viii) inability to execute on our business strategy. Any of these occurrences could increase our operating expenses and reduce our revenues, hamper our ability to grow or otherwise materially and adversely affect our business, reputation, financial condition, liquidity and results of operations. CFPB In April 2017, the CFPB filed a lawsuit in the federal district court for the Southern District of Florida against Ocwen, OMS and OLS alleging violations of federal consumer financial laws relating to our servicing business dating back to 2014. The CFPB’s claims include allegations regarding (1) the adequacy of Ocwen’s servicing system and integrity of Ocwen’s mortgage servicing data, (2) Ocwen’s foreclosure practices and (3) various purported servicer errors with respect to borrower escrow accounts, hazard insurance policies, timely cancellation of private mortgage insurance, handling of customer complaints, and marketing of optional products. The CFPB alleges violations of laws prohibiting unfair, deceptive or abusive acts or practices, as well as violations of other laws or regulations. The CFPB does not claim specific monetary damages, although it does seek consumer relief, disgorgement of allegedly improper gains, and civil money penalties. The parties participated in mediation in October 2020 and subsequently held additional settlement discussions. However, the parties were unable to reach a resolution of the litigation. On March 4, 2021, the court issued an order granting in part and reserving ruling in part on Ocwen’s motion for summary judgment. In that order, the court granted Ocwen summary judgment on 9 of 10 counts in the CFPB’s amended complaint, finding that the CFPB’s allegations were barred under the principles of claim preclusion or res judicata to the extent those claims are premised on servicing activity occurring prior to February 26, 2017 and are covered by a 2014 Consent Judgment entered by the United States District Court for the District of Columbia. The CFPB subsequently filed its Second Amended Complaint to remove count 10 as well as allegations in counts 1-9 concerning servicing activity that occurred after February 26, 2017. On April 21, 2021, the court entered final judgment in our favor, denied all pending motions as moot, and closed the case. The CFPB thereafter filed a notice of appeal. Appellate briefing concluded August 26, 2021, and oral argument before the Eleventh Circuit occurred on February 10, 2022. Our current accrual with respect to this matter is included in the $44.0 million legal and regulatory accrual referenced above. The outcome of the matters raised by the CFPB, whether through negotiated settlements, court rulings or otherwise, could potentially involve monetary fines or penalties or additional restrictions on our business and could have a material adverse impact on our business, reputation, financial condition, liquidity and results of operations. State Licensing, State Attorneys General and Other Matters Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements or satisfying minimum net worth requirements and non-financial requirements such as satisfactorily completing examinations as to the licensee’s compliance with applicable laws and regulations. Failure to satisfy any of the requirements to which our licensed entities are subject could result in a variety of regulatory actions ranging from a fine, a directive requiring a certain step to be taken, entry into a consent order, a suspension or ultimately a revocation of a license, any of which could have a material adverse impact on our results of operations and financial condition. In addition, we receive information requests and other inquiries, both formal and informal in nature, from our state financial regulators as part of their general regulatory oversight of our servicing and lending businesses. We also regularly engage with state attorneys general and the CFPB and, on occasion, we engage with other federal agencies, including the Department of Justice and various inspectors general on various matters, including responding to information requests and other inquiries. Many of our regulatory engagements arise from a complaint that the entity is investigating, although some are formal investigations or proceedings. The GSEs (and their conservator, FHFA), HUD, FHA, VA, Ginnie Mae, the United States Treasury Department, and others also subject us to periodic reviews and audits. We have in the past resolved, and may in the future resolve, matters via consent orders, payments of monetary amounts and other agreements in order to settle issues identified in connection with examinations or other oversight activities, and such resolutions could have material and adverse effects on our business, reputation, operations, results of operations and financial condition. In April 2017 and shortly thereafter, mortgage and banking regulatory agencies from 29 states and the District of Columbia took administrative actions against OLS and certain other Ocwen companies that alleged deficiencies in our compliance with laws and regulations relating to our servicing and lending activities. An additional state regulator brought legal action together with that state’s attorney general, as described below. These administrative actions were applicable to OLS, but additional Ocwen entities were named in some actions, including Ocwen Financial Corporation, OMS, Homeward, Liberty, OFSPL and Ocwen Business Solutions, Inc. (OBS). We have now resolved all of the state regulatory matters arising in April 2017. In resolving these matters, we entered into agreements containing restrictions and commitments with respect to the operation of our business and our regulatory compliance activities, including restrictions and conditions relating to acquisitions of MSRs, a transition to an alternate loan servicing system from the REALServicing system, engagement of third-party auditors, escrow and data testing, error remediation, and financial condition reporting. We also provided certain borrower financial remediation and made payments to state regulators. We have taken substantial steps toward fulfilling our commitments under these agreements, including completing the transfer of loans to Black Knight MSP, completing pre-transfer and post-transfer data integrity audits, developing and implementing enhancements to our consumer complaint process, completing a third-party escrow review and ongoing reporting and information sharing. We have also incurred, and will continue to incur, costs to comply with the terms of the settlements we have entered into, including the costs of conducting an escrow review, Maryland organizational assessments and Massachusetts data integrity audits, and costs relating to the transition to Black Knight MSP. With respect to the escrow review, the third-party auditor has issued its final report and we have completed all related remediation measures. It is possible that legal or other actions could be taken against us with respect to the identified escrow errors, which could result in additional costs or other adverse impacts. If we fail to comply with the terms of our settlements, additional legal or other actions could be taken against us. Such actions could have a materially adverse impact on our business, reputation, financial condition, liquidity and results of operations. Certain of the state regulators’ cease and desist orders referenced a confidential supervisory memorandum of understanding (MOU) that we entered into with the Multistate Mortgage Committee (MMC) and six states relating to a servicing examination from 2013 to 2015. Among other things, the MOU prohibited us from repurchasing stock during the development of a going forward plan and, thereafter, except as permitted by the plan. We submitted a plan in 2016 that contained no stock repurchase restrictions and, therefore, we do not believe we are currently restricted from repurchasing stock. We requested confirmation from the signatories of the MOU that they agree with this interpretation, and received affirmative responses from the MMC and five states, and a response declining to take a legal position from the remaining state. On occasion, we engage with agencies of the federal government on various matters. For example, Ocwen was named as a defendant in a HUD administrative complaint filed by a non-profit organization alleging discrimination in the manner in which Ocwen maintains REO properties in minority communities. In February 2018, this matter was administratively closed, and similar claims were filed in federal court. We believe these claims are without merit and intend to vigorously defend ourselves. In 2017, Ocwen received a subpoena from the Office of the Special Inspector General for the Troubled Asset Relief Program requesting documents and information related to Ocwen’s participation in the Treasury Department’s Making Home Affordable Program. Ocwen has also received subpoenas that appear to relate to federal government agency initiatives relating to our industry generally, since we understand other lenders and servicers have received similar subpoenas. These include subpoenas in 2016 and 2017 from the Office of Inspector General of HUD requesting documentation related to HECM loans and lender-placed insurance arrangements with a mortgage insurer and a 2019 subpoena from the VA Office of the Inspector General requesting documentation related to the origination and underwriting of loans guaranteed by the Veterans Benefits Administration. In each instance, we have provided documents and information in response to these subpoenas. Loan Put-Back and Related Contingencies Our contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. While the language in the purchase contracts varies, they generally contain provisions that require us to indemnify purchasers of related loans or repurchase such loans if: • representations and warranties concerning loan quality, contents of the loan file or loan underwriting circumstances are inaccurate; • adequate mortgage insurance is not secured within a certain period after closing; • a mortgage insurance provider denies coverage; or • there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements. We received origination representations and warranties from our network of approved originators in connection with loans we purchased through our correspondent lending channel. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur. We believe that, as a result of historical actions by investors, many purchasers of residential mortgage loans are particularly aware of the conditions under which originators must indemnify or repurchase loans and under which such purchasers would benefit from enforcing any indemnification rights and repurchase remedies they may have. In our Originations business, we have exposure to indemnification risks and repurchase requests. In our Servicing business, claims alleging that we did not comply with our servicing obligations may require us to repurchase mortgage loans, make whole or otherwise indemnify investors or other parties. If home values were to decrease, our realized losses from loan repurchases and indemnifications may increase as well. As a result, our liability for repurchases may increase beyond our current expectations. If we are required to indemnify or repurchase loans that we originate and sell, or where |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Principles of Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (GAAP). Our consolidated financial statements include the accounts of Ocwen, its wholly-owned subsidiaries and any variable interest entity (VIE) for which we have determined that we are the primary beneficiary. We apply the equity method of accounting to investments where we are able to exercise significant influence, but not control, over the policies and procedures of the entity. We have eliminated intercompany accounts and transactions in consolidation. Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the U.S. dollar. Re-measurement adjustments of foreign-denominated amounts to U.S. dollars are included in Other, net in our consolidated statements of operations. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less. |
Restricted Cash | Restricted CashRestricted cash includes amounts specifically designated to repay debt, to provide over-collateralization for MSR financing facilities, mortgage loan warehouse facilities and match funded debt facilities, and to provide additional collateral to support certain obligations, including letters of credit. |
Mortgage Servicing Rights | Mortgage Servicing Rights MSRs are assets representing our right to service portfolios of mortgage loans. We recognize MSRs when originated or purchased loans are securitized or sold in the secondary market. We also acquire MSRs through flow purchase agreements, Agency Cash Window programs, and bulk acquisition transactions, or through asset purchases or business combination transactions . The unpaid principal balance (UPB) of the loans underlying the MSRs is not included on our consolidated balance sheets. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, we do not recognize an MSR. All newly acquired or retained MSRs are initially measured at fair value. To the extent any portfolio contract is not expected to compensate us adequately for performing the servicing, we would recognize a servicing liability. We define contracts as Agency, government-insured or non-Agency (commonly referred to as non-prime, subprime or private-label loans) based on applicable servicing guidelines, underwriting standards and borrower risk characteristics. We account for servicing assets and servicing liabilities at fair value, and report changes in fair value in earnings (MSR valuation adjustments, net) in the period in which the changes occur. |
Advances | Advances During any period in which a borrower does not make payments, servicing and subservicing agreements may require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing and subservicing contract. Each servicing and subservicing contract is associated with specific loans, identified as a pool. When we make an advance on a loan under each servicing or subservicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from guarantors (GSEs), insurers (FHA/VA) and investors, for modified and liquidated loans. Most of our servicing and subservicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans that are the subject of that servicing or subservicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. Servicing advances are financial assets subject to the credit loss allowance model under Accounting Standards Codification (ASC) 326: Financial Instruments - Credit Losses (CECL), effective January 1, 2020. The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. Expected credit losses on advances are expected to be nil, or de minimis, as advances are generally fully reimbursable or recoverable under the terms of the servicing agreements. GSE and government-insured advances are subject to implicit and government guarantees, respectively, regarding advance reimbursement and the non-Agency pooling and servicing agreement terms regarding advance recovery, the credit loss history and the expectation over the remaining life of the advance portfolio support a zero allowance for credit loss. Servicing advances may also include claimable (with investors) but nonrecoverable expenses, for example due to servicer error, such as lack of reasonable documentation as to the type and amount of advances. Such servicer errors result in the determination that the advance is uncollectible and represent operational losses resulting from not complying with servicing guidelines as established by the respective party (i.e., trustee, master servicer, investor, mortgage insurer). We establish an allowance for such operational losses through a charge to earnings (Servicing and origination expense) to the extent that a portion of advances are uncollectible taking into consideration, among other factors, probability of cure or modification, length of delinquency and the amount of the advance. We also assess collectability using proprietary cash flow projection models that incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, estimated time to a foreclosure sale, estimated costs of foreclosure action, estimated future property tax payments and the estimated value of the underlying property net of estimated carrying costs, commissions and closing costs. |
Loans Held for Sale | Loans Held for Sale Loans held for sale include forward and reverse mortgage loans that we do not intend to hold until maturity. We report loans held for sale at either fair value or the lower of cost or fair value computed on an aggregate basis. Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. In addition, effective January 1, 2020, repurchased loans by our Servicing business, including those loans we repurchase from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines, are accounted for under the fair value election. For loans that we elected to measure at fair value on a recurring basis, we report changes in fair value in Gain on loans held for sale, net in the consolidated statements of operations in the period in which the changes occur. These loans are expected to be sold into the secondary market to the GSEs, into Ginnie Mae guaranteed securitizations or to third-party investors. For the legacy portfolio of loans measured at the lower of cost or fair value, we account for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other, net, in the consolidated statements of operations in the period in which the change occurs. We report any gain or loss on the transfer of loans held for sale in Gain on loans held for sale, net in the consolidated statements of operations along with the changes in fair value of the loans and the gain or loss on any related derivatives. Gains or losses on sales or securitizations take into consideration any retained interests, including servicing rights and representation and warranty obligations, both of which are initially recorded at fair value at the date of sale in Gain on loans held for sale, net, in our consolidated statements of operations. We include all changes in loans held for sale and related derivative balances in operating activities in the consolidated statements of cash flows. We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent for more than 89 days, or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse the interest that we have accrued but not yet received. We return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. |
Loans Held for Investment | Loans Held for Investment Originated reverse mortgage loans that are insured by the FHA and pooled into Ginnie Mae guaranteed securities that we sell into the secondary market with servicing rights retained are classified as loans held for investment. We have elected to measure these loans at fair value, with changes in fair value reported in Reverse mortgage revenue, net in the consolidated statements of operations. Loan transfers in these Ginnie Mae securitizations do not meet the definition of a participating interest and as a result, the transfers of the reverse mortgages do not qualify for sale accounting. Therefore, we account for these transfers as financings, with the reverse mortgages classified as Loans held for investment, at fair value, on our consolidated balance sheets, with no gain or loss recognized on the transfer. Effective January 1, 2019, we elected to fair value future draw commitments for HECM loans purchased or originated after December 31, 2018. The value of future draw commitments for HECM loans purchased or originated before January 1, 2019 were recognized as the draws were securitized or sold. Effective January 1, 2020, in connection with the adoption of Accounting Standard Update (ASU) 2016-13 and ASU 2019-04: Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, we made an irrevocable fair value election on all future draw commitments for HECM loans that were purchased or originated before January 1, 2019. We recorded cumulative-effect adjustments of $47.0 million to retained earnings as of January 1, 2020, to reflect the excess of the fair value over the carrying amount. Upfront costs and fees related to loans held for investment, including broker fees, are recognized in Reverse mortgage revenue, net in the consolidated statement of operations as incurred and are not capitalized. Premiums on loans purchased via the correspondent channel are capitalized upon origination because they represent part of the purchase price. However, the loans are subsequently measured at fair value on a recurring basis. We record the proceeds from the transfer of assets as secured borrowings (HMBS-related borrowings) and recognize no gain or loss on the transfer. We measure the HECM loans and HMBS-related borrowings at fair value on a recurring basis. The changes in fair value of the HECM loans and HMBS-related borrowings are included in Reverse mortgage revenue, net in our consolidated statements of operations. Included in net fair value changes on the HECM loans and related HMBS borrowings are the net interest income that we expect to be collected on the HECM loans and the interest expense on the HMBS-related borrowings. In addition, Reverse mortgage revenue, net includes the fair value changes of the interest rate lock commitments related to reverse mortgage loans. We report originations and collections of HECM loans in investing activities in the consolidated statements of cash flows. We report net fair value gains on HECM loans and the related HMBS borrowings as an adjustment to the net cash provided by or used in operating activities in the consolidated statements of cash flows. Proceeds from securitizations of HECM loans and payments on HMBS-related borrowings are included in financing activities in the consolidated statements of cash flows. |
Transfers of Financial Assets and MSRs | Transfers of Financial Assets and MSRs We securitize, sell and service forward and reverse residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. We typically retain economic interests in the securitized assets in the form of servicing rights and obligations. In order to efficiently finance our assets and operations and create liquidity, we may sell servicing advances, MSRs or the right to receive certain servicing fees relating to MSRs (Rights to MSRs). In order to determine whether or not a VIE is required to be consolidated, we consider our ongoing involvement with the VIE. In circumstances where we have both the power to direct the activities that most significantly impact the performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be significant, we would conclude that we would consolidate the entity, which precludes us from recording an accounting sale in connection with the transfer of the financial assets. In the case of a consolidated VIE, we continue to report the underlying residential mortgage loans or servicing advances, and we record the securitized debt on our consolidated balance sheet. In the case of transfers where either one or both of the power or economic criteria above are not met, we evaluate whether a sale has occurred for accounting purposes. In order to recognize a sale of financial assets, the transferred assets must be legally isolated, not be constrained by restrictions from further transfer and be deemed to be beyond our control. If the transfer does not meet any of these three criteria, the financial assets are not derecognized and the transaction is accounted for consistent with a secured financing. In certain situations, we may have continuing involvement in transferred loans through our retained servicing. Transactions involving retained servicing would still be eligible for sale accounting, as we have ceded effective control of these loans to the purchaser. A sale of MSRs shall be recognized as a sale for accounting purposes if substantially all the risks and rewards inherent in owning the MSRs have been effectively transferred to the buyer, title has transferred to the buyer and any protection provisions retained by the seller are minor and can be reasonably estimated. In the case of transfers of MSRs accounted for as a sale where we retain the right to subservice, we defer any related gain or loss and amortize the balance over the life of the subservicing agreement. A loss shall be recognized currently if the transferor determines that prepayments of the underlying mortgage loans may result in performing the future servicing at a loss. A sale of mortgage servicing rights with a subservicing contract may not be treated as a sale when the terms of the subservicing contract unduly limit the buyer's ability to exercise ownership control over the servicing rights or results in the seller retaining some of the risks and rewards of ownership. If the buyer cannot cancel or decline to renew the subservicing contract after a reasonable period of time, the buyer is precluded from exercising certain rights of ownership. Conversely, if the seller cannot cancel the subservicing contract after a reasonable period of time, the seller has not transferred substantially all of the risks of ownership. If the criteria for sale recognition are not met, the transferred MSRs are not derecognized and the transaction is accounted for consistent with a secured financing. Accordingly, when a transaction does not achieve sale treatment, we recognize the proceeds received and a corresponding liability, referred to as Pledged MSR liability within Other financing liabilities, that we subsequently remeasure at fair value with changes in fair value reported with in Pledged MSR liability expense in the consolidated statements of operations. In the case of a sale of MSRs accounted for as a secured financing where we retain the right to subservice, no gain or loss is generally recognized on the transfer. A gain or loss may be recognized to the extent the estimated fair value of the pledged MSR liability differs from the total proceeds of the MSR transfer. Subsequent to the determination that a transaction does not meet the accounting sale criteria, we may determine that we meet the criteria. In the event we subsequently meet the accounting sale criteria, we derecognize the transferred assets and related liabilities. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage the fair value changes in our MSRs, interest rate lock commitments and loan portfolios which are exposed to interest rate risk. We do not use derivative instruments for trading or speculative purposes. We recognize all derivative instruments at fair value on our consolidated balance sheets in Other assets and Other liabilities. Derivative instruments are generally entered into as economic hedges against changes in the fair value of a recognized asset or liability and are not designated as hedges for accounting purposes. We generally report the changes in fair value of such derivative instruments in the same line item in the consolidated statement of operations as the changes in fair value of the related asset or liability. For all other derivative instruments not designated as a hedging instrument, we report changes in fair value in Other, net. |
Premises and Equipment, Leases | Premises and Equipment, Leases We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on a straight-line basis as follows: Computer hardware and software 2 – 3 years Buildings 40 years Leasehold improvements Term of the lease not to exceed useful life Right of Use (ROU) assets Term of the lease not to exceed useful life Furniture and fixtures 5 years Office equipment 5 years Our leases include non-cancelable operating leases for premises and equipment. At lease commencement and renewal date, we estimate the ROU assets and lease liability at present value using our estimated incremental borrowing rate. We amortize the balance of the ROU assets and recognize interest on the lease liability. Our lease liability represents the present value of the lease payments and is reduced as we make cash payments on our lease obligations. Our ROU lease assets are evaluated for impairment in accordance with ASC 360: Premises and Equipment. |
Intangible Assets | Intangible Assets Intangible assets are recorded at their estimated fair value at the date of acquisition. Intangible assets deemed to have a finite useful life are amortized on a basis representative of the time pattern over which the benefit is derived. Intangible assets subject to amortization are evaluated for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable, but no less than annually. An impairment loss is recognized if the carrying value of the intangible asset is not recoverable and exceeds fair value. Intangible assets primarily consist of a subservicing intangible asset acquired in the transaction with Mortgage Assets Management, LLC (formerly known as Reverse Mortgage Solutions, Inc.) (MAM (RMS)) and its then parent on October 1, 2021. This asset is being amortized ratably over the five-year term of the respective |
Investments in Unconsolidated Entities | Investments in Unconsolidated EntitiesWe account for our investments in unconsolidated entities using the equity method. These investments include our investment in MAV Canopy in which we hold a significant, but less than controlling, ownership interest. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that an other-than‐temporary decline in value may have occurred. |
Litigation | LitigationWe monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish a liability for settlements, judgments on appeal and filed and/or threatened claims for which we believe that it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize legal costs associated with loss contingencies in Professional services expense in the consolidated statement of operations as incurred. |
Stock-Based Compensation | Stock-Based Compensation We initially measure the cost of employee services received in exchange for a stock-based award as the fair value of the award on the grant date. For awards which must be settled in cash and are therefore classified as liabilities rather than equity in the consolidated balance sheet, fair value is subsequently remeasured and fair value changes are reported as compensation expense at each reporting date. For equity awards with a service condition, we recognize the cost as compensation expense ratably over the vesting period. For equity awards with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from an options pricing model. When equity awards with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period. For equity awards with both a market condition and a service condition for vesting, we recognize cost as compensation expense over the requisite service period for each tranche of the award using the graded-vesting method. |
Income Taxes | Income Taxes We file consolidated U.S. federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit, based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in Income tax expense. |
Basic and Diluted Earnings per Share | Basic and Diluted Earnings per ShareWe calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of outstanding options and warrants to purchase common stock using the treasury stock method. |
Going Concern | Going Concern In accordance with Financial Accounting Standards Board (FASB) ASC 205-40: Presentation of Financial Statements - Going Concern, we evaluate whether there are conditions that are known or reasonably knowable that raise substantial doubt about our ability to continue as a going concern within one year after the date that our financial statements are issued. Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Investments—Equity Securities (ASC Topic 321), Investments—Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815) (ASU 2020-01) The amendments in this ASU affect all entities that apply the guidance in ASC Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The amendments clarify that forward or option contracts to purchase investments that will be accounted for using the equity method that do not meet the definition of a derivative under ASC Topic 815 are in the scope of ASC Topic 321. Therefore, when the purchase contract is considered a forward or option contract in the scope of this guidance, the investor would account for changes in the contract’s fair value prior to closing through earnings, unless the contract qualifies for the measurement alternative and it is elected. If the measurement alternative is elected, the change in the fair value of the contract would be reflected in earnings upon closing. In addition, if there are observable transactions or impairments before closing, the guidance would require remeasurement of the contract to fair value. The guidance in this ASU also specifies that when applying the measurement alternative in ASC Topic 321, observable transactions include those transactions by the investor that result in the application or discontinuation of the equity method of accounting. Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements. Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity—Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06) The amendments in this ASU simplify the accounting for certain financial instruments with characteristics of liabilities and equity by reducing the number of accounting models for convertible debt and convertible preferred stock instruments. In addition, this ASU amended the derivative guidance for the “own stock” scope exception and certain aspects when calculating earnings per share. The amendments in this ASU affect entities that issue convertible instruments and/or contracts in an entity’s own equity. The amendments in this ASU were effective on January 1, 2022, with early adoption permitted on January 1, 2021. Our early adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements. Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) This standard provides for optional expedients and other guidance regarding the accounting related to modifications of contracts, hedging relationships and other transactions affected by the phase-out of certain tenors of the London Inter-bank Offered Rate (LIBOR) by the end of 2021 (or June 30, 2023 for U.S. dollar LIBOR of certain tenors). This guidance is effective upon issuance in March 2020 through December 31, 2022 and allows for retrospective application to contract modifications as early as January 1, 2020. We elected to retrospectively adopt this ASU as of January 1, 2020 which resulted in no immediate impact on our consolidated financial statements. Although we do not have any hedge accounting relationships, many of our debt facilities and loan agreements incorporate LIBOR as the referenced interest rate. Some of these facilities and loan agreements either matured prior to the end of 2021 (or June 30, 2023) or have terms in place that provide for an alternative to LIBOR upon its phase-out. We do not anticipate that this standard will have a material impact on our consolidated financial statements. Income Taxes: Simplifying the Accounting for Income Taxes (ASU 2019-12) On December 18, 2019, the FASB issued this ASU to ASC 740: Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include the removal of certain exceptions to the general principles of ASC 740 in such areas as intraperiod tax allocation, year to date losses in interim periods and deferred tax liabilities related to outside basis differences. Amendments also include simplification in other areas such as interim recognition of enactment of tax laws or rate changes and accounting for a franchise tax (or similar tax) that is partially based on income. Our adoption of this standard on January 1, 2021 did not have a material impact on our consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force) (ASU 2021-04) The amendments in this ASU provide the following guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic: (1) treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument, (2) measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange and (3) recognize the effect of a modification or an exchange of a freestanding equity-classified written call option to compensate for goods or services in accordance with the guidance in ASC 718. In a multiple-element transaction (for example, one that includes both debt financing and equity financing), the total effect of the modification should be allocated to the respective elements in the transaction. The amendments in this ASU were effective for us on January 1, 2022. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities (ASU 2021-08) The amendments in this Update apply to all entities that enter into a business combination within the scope of Subtopic 805-10, Business Combinations— Overall. The amendments in this ASU are issued to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with generally accepted accounting principles (GAAP)). The amendments in this ASU are effective for us on January 1, 2023. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment Useful Lives | We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on a straight-line basis as follows: Computer hardware and software 2 – 3 years Buildings 40 years Leasehold improvements Term of the lease not to exceed useful life Right of Use (ROU) assets Term of the lease not to exceed useful life Furniture and fixtures 5 years Office equipment 5 years |
Securitizations and Variable _2
Securitizations and Variable Interests Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Cash Flows Received from and Paid to Securitization Trusts Related to Transfers Accounted for as Sales Outstanding | The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Years Ended December 31, 2021 2020 2019 Proceeds received from securitizations $ 19,293,156 $ 7,533,284 $ 1,248,837 Servicing fees collected (1) 63,737 47,230 50,326 Purchases of previously transferred assets, net of claims reimbursed (17,435) (6,933) (4,602) $ 19,339,458 $ 7,573,581 $ 1,294,561 |
Schedule of Carrying Amounts of Assets that Relate to Continuing Involvement with Transferred Forward Loans | The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: December 31, 2021 2020 Carrying value of assets MSRs, at fair value $ 360,830 $ 137,029 Advances 151,166 143,361 UPB of loans transferred (1) 31,864,769 18,062,856 Maximum exposure to loss $ 32,376,765 $ 18,343,246 |
Schedule of Carrying Value and Classification of Assets and Liabilities of Loans Held for Sale Financing Facility | The table below presents the carrying value and classification of the assets and liabilities of the loans held for sale financing facility: December 31, 2021 Mortgage loans (Loans held for sale, at fair value) $ 462,144 Outstanding borrowings (Mortgage loan warehouse facilities) 459,344 |
Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities | The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: December 31, 2021 2020 Match funded advances (Advances, net) $ 587,059 $ 651,576 Debt service accounts (Restricted cash) 7,687 14,195 Unamortized deferred lender fees (Other assets) 1,305 4,253 Prepaid interest (Other assets) 225 291 Advance match funded liabilities 512,297 581,288 |
Carrying Value And Classification Of Assets And Liabilities Of Agency MSR Financing Facility | The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility: December 31, 2021 2020 MSRs pledged (MSRs, at fair value) $ 630,605 $ 476,371 Unamortized deferred lender fees (Other assets) 1,495 1,183 Debt service account (Restricted cash) 104 211 Outstanding borrowings (MSR financing facilities, net) 317,523 210,755 |
Carrying Value And Classification Of Assets And Liabilities Of PLS Notes Facility | The table below presents the carrying value and classification of the assets and liabilities of the PLS Notes facility: December 31, 2021 2020 MSRs pledged (MSRs, at fair value) $ 99,833 $ 129,204 Debt service account (Restricted cash) 1,968 2,385 Outstanding borrowings (MSR financing facilities, net) 41,663 68,313 Unamortized debt issuance costs (MSR financing facilities, net) 413 894 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value | The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: December 31, 2021 2020 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 917,534 $ 917,534 $ 366,364 $ 366,364 Loans held for sale, at lower of cost or fair value (b) 3 10,993 10,993 21,472 21,472 Total Loans held for sale $ 928,527 $ 928,527 $ 387,836 $ 387,836 December 31, 2021 2020 Level Carrying Value Fair Value Carrying Value Fair Value Loans held for investment Loans held for investment - Reverse mortgages (a) 3 $ 7,199,762 $ 7,199,762 $ 6,997,127 $ 6,997,127 Loans held for investment - Restricted for securitization investors (a) 3 7,879 7,879 9,770 9,770 Total loans held for investment 7,207,641 7,207,641 7,006,897 7,006,897 Advances, net (c) 3 772,433 772,433 828,239 828,239 Receivables, net (c) 3 180,707 180,707 187,665 187,665 Mortgage-backed securities (a) 3 1 1 2,019 2,019 Corporate bonds (a) 2 211 211 211 211 Investment in equity method investee (c) 3 23,297 23,297 — — Financial liabilities: Advance match funded liabilities (c) 3 $ 512,297 $ 511,994 $ 581,288 $ 581,997 Financing liabilities: HMBS-related borrowings (a) 3 $ 6,885,022 $ 6,885,022 $ 6,772,711 $ 6,772,711 Other financing liabilities: Financing liability - Pledged MSR liability (a) 3 797,084 797,084 566,952 566,952 Financing liability - Owed to securitization investors (a) 3 7,879 7,879 9,770 9,770 Total Other financing liabilities $ 804,963 $ 804,963 $ 576,722 $ 576,722 Mortgage loan warehouse facilities (c) 3 $ 1,085,076 $ 1,085,076 $ 451,713 $ 451,713 MSR financing facilities (c) (d) 3 900,760 873,820 437,672 406,860 Senior secured term loan (c) (d) 2 $ — $ — $ 179,776 $ 184,639 Senior notes: PMC & PHH Senior notes (c) (d) (f) 2 392,555 413,472 311,898 320,879 OFC Senior notes due 2027 (c) (d) (f) 3 222,242 261,455 — — Total Senior notes $ 614,797 $ 674,927 $ 311,898 $ 320,879 Derivative financial instrument assets (liabilities) Interest rate lock commitments (a) 3 $ 18,084 $ 18,084 $ 22,706 $ 22,706 Forward trades - Loans held for sale (a) 1 364 364 (50) (50) TBA / Forward mortgage-backed securities (MBS) trades (a) 1 (287) (287) (4,554) (4,554) Interest rate swap futures (a) 1 1,734 1,734 504 504 TBA forward Pipeline trades (a) 1 48 48 — — Option contracts (a) 2 (277) (277) — — Other (a) 3 (1,070) (1,070) — — MSRs (a) 3 $ 2,250,147 $ 2,250,147 $ 1,294,817 $ 1,294,817 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Disclosed, but not measured, at fair value. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 14 — Borrowings for additional information . (e) Loans repurchased from Ginnie Mae securitizations with a fair value of $220.9 million and $51.1 million at December 31, 2021 and 2020, respectively, are classified as Level 3. The remaining balance of loans held for sale at fair value is classified as Level 2. (f) On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of senior secured notes. Fair value is based on valuation data obtained from a pricing service. Therefore, these notes are classified as Level 2. Additionally on March 4, 2021 and May 3, 2021, Ocwen completed the private placement of $199.5 million and $85.5 million, respectively, aggregate principal amount of senior secured second lien notes. These notes are classified as Level 3. See Note 14 — Borrowings for additional information. |
Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis: Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2021 Beginning balance $ 9,770 $ (9,770) 51,072 $ 2,019 $ 22,706 Purchases, issuances, sales and settlements Purchases — — 436,154 — — Issuances (1) — — — — 627,677 Sales — — (259,995) (1,617) — Settlements (1,891) 1,891 — — — Transfers to: Loans held for sale, at fair value (1) — — — — (591,701) Receivables, net — — (1,644) — — Other assets — — (377) — — (1,891) 1,891 174,138 (1,617) 35,976 Change in fair value included in earnings (1) — — (4,270) (401) (40,597) Transfers in and / or out of Level 3 — — — — — Ending balance $ 7,879 $ (7,879) $ 220,940 $ 1 $ 18,085 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs for 2021 is a $4.6 million loss. See Note 17 — Derivative Financial Instruments and Hedging Activities. Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2020 Beginning balance $ 23,342 $ (22,002) $ — $ 2,075 $ — Purchases, issuances, sales and settlements Purchases — — 162,589 — — Issuances — — — — 286,992 Deconsolidation of mortgage-backed securitization trusts (10,715) 9,519 — — — Sales — — (137,780) — — Settlements (2,857) 2,857 — — — Transfers (to) from: Loans held for sale, at fair value — — — — (285,198) Receivables, net — — (969) — — (13,572) 12,376 23,840 — 1,794 Change in fair value included in earnings — (144) 1,650 (56) 10,434 Transfers in and / or out of Level 3 — — 25,582 — 10,478 Ending balance $ 9,770 $ (9,770) $ 51,072 $ 2,019 $ 22,706 Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Mortgage-Backed Securities Derivatives - Interest Rate Caps Year Ended December 31, 2019 Beginning balance $ 26,520 $ (24,815) $ 1,502 $ 678 Purchases, issuances, sales and settlements Purchases — — — — Issuances — — — — Sales — — — — Settlements (3,178) 2,813 — — (3,178) 2,813 — — Change in fair value included in earnings — — 573 (678) Ending balance $ 23,342 $ (22,002) $ 2,075 $ — |
Summary of Estimated Change in the Value of MSRs Carried at Fair Value | The following table summarizes the estimated change in the value of the MSRs as of December 31, 2021 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Weighted average prepayment speeds $ (62,497) $ (121,391) Weighted average discount rate (63,711) (114,336) |
Loans Held for Investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2021 2020 Life in years Range 1.0 to 8.2 0.9 to 8.0 Weighted average 5.7 5.9 Conditional prepayment rate, including voluntary and involuntary prepayments Range 11.2% to 36.6% 10.6% to 28.8% Weighted average 16.0 % 15.4 % Discount rate 2.6 % 1.9 % |
Fair Value Mortgage Servicing Rights | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2021 2020 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 8.5 % 12.1 % 11.8 % 11.5 % Weighted average lifetime delinquency rate 1.2 % 11.9 % 3.0 % 28.0 % Weighted average discount rate 8.5 % 11.2 % 9.2 % 11.4 % Weighted average cost to service (in dollars) $ 71 $ 205 $ 79 $ 270 |
HMBS - Related Borrowings | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2021 2020 Life in years Range 1.0 to 8.2 0.9 to 8.0 Weighted average 5.7 5.9 Conditional prepayment rate Range 11.2% to 36.6% 10.6% to 28.8% Weighted average 16.0 % 15.4 % Discount rate 2.5 % 1.7 % |
Mortgage Servicing Rights Pledged | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2021 2020 Weighted average prepayment speed 10.9 % 11.5 % Weighted average delinquency rate 8.8 % 29.8 % Weighted average discount rate 10.5 % 11.4 % Weighted average cost to service (in dollars) $ 182 $ 287 |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of Activity in Balance of Loans Held for Sale, at Fair Value | Loans Held for Sale - Fair Value Years Ended December 31, 2021 2020 2019 Beginning balance $ 366,364 $ 208,752 $ 176,525 Originations and purchases 19,972,375 7,552,026 1,168,885 Proceeds from sales (19,279,150) (7,344,151) (1,124,247) Principal collections (58,603) (25,976) (23,116) Transfers from (to): Loans held for investment, at fair value 4,271 3,084 1,892 Receivables (33,638) (85,001) (2,480) REO (Other assets) (8,438) (3,657) (2,520) Gain (loss) on sale of loans (69,927) 50,248 25,253 Capitalization of advances on Ginnie Mae modifications 24,752 12,789 — Increase (decrease) in fair value of loans (948) 1,075 (589) Other 474 (2,825) (10,851) Ending balance (1) (2) $ 917,534 $ 366,364 $ 208,752 (1) At December 31, 2021, 2020 and 2019, the balances include $(4.4) million, $(6.7) million and $(7.8) million, respectively, of fair value adjustments. |
Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value | Loans Held for Sale - Lower of Cost or Fair Value Years Ended December 31, 2021 2020 2019 Beginning balance - before Valuation allowance $ 27,652 $ 73,160 $ 77,666 Purchases (1) — — 320,089 Proceeds from sales (10,607) (58,575) (221,471) Principal collections (989) (1,842) (11,304) Transfers from (to): Receivables, net (1,020) 61 (104,635) REO (Other assets) — — (4,116) Gain on sale of loans 549 11,189 4,974 Capitalization of advances on Ginnie Mae modifications — — 2,485 Other (220) 3,659 9,472 Ending balance - before Valuation allowance (2) 15,365 27,652 73,160 Beginning balance - Valuation allowance $ (6,180) $ (6,643) $ (11,569) (Provision for) reversal of valuation allowance 1,802 (1,144) (2,537) Transfer to (from) Liability for indemnification obligations (Other liabilities) 7 (68) (403) Sales of loans — 1,675 7,866 Ending balance - Valuation allowance (4,372) (6,180) (6,643) Ending balance, net $ 10,993 $ 21,472 $ 66,517 (1) We elected the fair value option for all newly repurchased loans after December 31, 2019. |
Summary of Activity in Gain on Loans Held for Sale, Net | Years Ended December 31, Gains on Loans Held for Sale, Net 2021 2020 2019 Gain on sales of loans, net MSRs retained on transfers of forward mortgage loans $ 222,715 $ 68,734 $ 7,458 Gain (loss) on sale of forward mortgage loans (1) (2) (87,850) 45,459 25,310 Gain on sale of repurchased Ginnie Mae loans (2) 18,358 15,947 4,764 153,223 130,140 37,532 Change in fair value of IRLCs (6,152) 17,479 756 Change in fair value of loans held for sale 1,934 2,280 3,005 Gain (loss) on economic hedge instruments (3) 1,483 (10,069) (2,689) Other (4,733) (2,594) (304) $ 145,755 $ 137,236 $ 38,300 (1) Includes $27.1 million gain in 2021 related to loans purchased through the exercise of our servicer call rights with respect to certain Non-Agency trusts and sold, servicing released, in 2021. (2) Realized gain (loss) on sale of loans, excluding retained MSR. |
Reverse Mortgages (Tables)
Reverse Mortgages (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loans Held For Investment and HMBS Related Borrowings | Years Ended December 31, 2021 2020 2019 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (2) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (2) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 6,997,127 $ (6,772,711) $ 6,269,596 $ (6,063,435) $ 5,472,199 $ (5,380,448) Cumulative effect of fair value election (1) — — 47,038 — — — Originations 1,763,418 — 1,203,645 — 1,026,154 — Securitization of HECM loans accounted for as a financing (incl. realized fair value changes) — (1,674,914) — (1,232,641) — (962,113) Additional proceeds from securitization of HECM loans and tails — (44,613) — (40,934) — (19,086) Repayments (principal payments received) (1,626,428) 1,614,295 (944,699) 935,778 (558,720) 549,600 Transfers from (to): Loans held for sale, at fair value (3,383) — (3,084) — (1,892) — Receivables, net (333) — (236) — (327) — REO (Other assets) (348) — (511) — (513) — Change in fair value 69,709 (7,079) 425,378 (371,479) 332,695 (251,388) Ending Balance $ 7,199,762 $ (6,885,022) $ 6,997,127 $ (6,772,711) $ 6,269,596 $ (6,063,435) Securitized loans (pledged to HMBS-Related Borrowings) $ 6,979,100 $ (6,885,022) $ 6,872,252 $ (6,772,711) $ 6,120,933 $ (6,063,435) Unsecuritized loans 220,662 124,875 148,663 Total $ 7,199,762 $ 6,997,127 $ 6,269,596 (1) In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020. (2) Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is 1ML plus an applicable margin based on the pass-through rate of the loans. See Note 2 — Securitizations and Variable Interest Entities. |
Schedule of Reverse Mortgage Revenue, Net | Reverse Mortgage Revenue, Net Years Ended December 31, 2021 2020 2019 Gain on new originations (1) $ 64,971 $ 46,326 $ 17,849 Change in fair value of securitized loans held for investment and HMBS-related borrowings, net (2,341) 7,573 63,459 Change in fair value included in earnings, net 62,630 53,899 81,308 Loan fees and other 17,046 6,827 5,001 $ 79,676 $ 60,726 $ 86,309 (1) Includes the changes in fair value of newly originated loans held for investment in the period through securitization date. |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances [Abstract] | |
Schedule of Advance Payments by Financial Institution on Foreclosed Properties | December 31, 2021 2020 Principal and interest $ 228,041 $ 277,132 Taxes and insurance 381,025 364,593 Foreclosures, bankruptcy, REO and other 170,385 192,787 779,451 834,512 Allowance for losses (7,018) (6,273) Advances, net $ 772,433 $ 828,239 |
Schedule of Activity in Advances | The following table summarizes the activity in net advances: Years Ended December 31, 2021 2020 2019 Beginning balance - before Allowance for Losses $ 834,512 $ 1,066,448 $ 1,209,935 Asset acquisition 6,916 14 1,457 New advances 831,208 890,389 671,673 Sales of advances (1,272) (834) (11,791) Collections of advances and other (891,914) (1,121,505) (804,826) Ending balance - before Allowance for Losses 779,451 834,512 1,066,448 Beginning balance - Allowance for Losses $ (6,273) $ (9,925) $ (23,259) Provision expense (8,107) (7,790) (3,220) Net charge-offs and other (1) 7,361 11,442 16,554 Ending balance - Allowance for Losses (7,018) (6,273) (9,925) Ending balance, net $ 772,433 $ 828,239 $ 1,056,523 |
Schedule of Change in Allowance for Losses | (1) Net change for the year ended December 31, 2019 includes $18.0 million allowance related to sold advances presented in Other liabilities (Liability for indemnification obligations). |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Activity Related to Fair Value Servicing Assets | Mortgage Servicing Rights – Fair Value Measurement Method Years Ended December 31, 2021 2020 2019 Agency Non-Agency Total Agency Non-Agency Total Agency Non-Agency Total Beginning balance $ 578,957 $ 715,860 $ 1,294,817 $ 714,006 $ 772,389 $ 1,486,395 $ 865,587 $ 591,562 $ 1,457,149 Sales — — — — (143) (143) (3,578) (766) (4,344) Additions: Recognized on the sale of residential mortgage loans 222,715 — 222,715 68,734 — 68,734 8,795 — 8,795 Purchase of MSRs 844,122 — 844,122 285,134 — 285,134 153,505 — 153,505 Servicing transfers and adjustments (1) 117 (10,899) (10,782) (266,248) 403 (265,845) — (7,309) (7,309) Changes in fair value: Changes in valuation inputs or assumptions (2) 62,437 87,077 149,514 (145,308) 37,257 (108,051) (192,323) 268,208 75,885 Realization of cash flows (2) (136,511) (113,728) (250,239) (77,361) (94,046) (171,407) (117,980) (79,306) (197,286) Ending balance $ 1,571,837 $ 678,310 $ 2,250,147 $ 578,957 $ 715,860 $ 1,294,817 $ 714,006 $ 772,389 $ 1,486,395 (1) Servicing transfers and adjustments include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the PMC subservicing agreement by NRZ. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for further information. (2) Effective January 1, 2021, changes in fair value due to actual versus model variances are presented as Changes in valuation inputs or assumptions. Activity for 2020 and 2019 in the table above has been recast to conform to current year disclosure, resulting in a $1.8 million and $18.1 million gain, respectively, reclassified from Realization of expected cash flows to Changes in valuation inputs or assumptions. |
Schedule of Composition of Primary Servicing and Subservicing Portfolios by Type of Property Serviced as Measured by UPB | December 31, 2021 December 31, 2020 Fair Value UPB Fair Value UPB Owned MSRs $ 1,422,546 $ 127,919,800 $ 727,865 $ 90,174,495 NRZ transferred MSRs (1) (2) 558,940 53,652,843 566,952 64,061,198 MAV transferred MSRs (1) 268,661 24,018,904 — — Total MSR UPB $ 2,250,147 $ 205,591,547 $ 1,294,817 $ 154,235,693 (1) MSRs subject to sale agreements with NRZ and MAV that do not meet sale accounting criteria. During 2021, we transferred MSRs with a UPB of $24.9 billion to MAV. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. |
Summary of Geographic Distributions of UPB and Count of Residential Loans and Real Estate Serviced | The geographic concentration of the UPB of residential loans and real estate we serviced at December 31, 2021 was as follows: Amount Count California $ 43,935,174 154,632 Texas 17,016,955 104,502 Florida 13,754,741 91,391 New York 12,701,419 53,132 New Jersey 10,382,601 44,175 Other 107,800,657 654,355 $ 205,591,547 1,102,187 |
Schedule of Components of Servicing and Subservicing Fees | Years Ended December 31, Servicing Revenue 2021 2020 2019 Loan servicing and subservicing fees Servicing $ 339,233 $ 216,263 $ 227,490 Subservicing 21,120 28,886 15,459 MAV (2) 15,708 — — NRZ (2) 304,248 383,685 577,015 Total loan servicing and subservicing fees 680,309 628,834 819,964 Ancillary income Late charges 40,869 47,687 57,194 Recording fees 16,013 14,281 13,029 Loan collection fees 11,724 12,919 15,539 Boarding and deboarding fees 10,522 11,122 3,254 Custodial accounts (float earnings) 4,739 9,939 47,562 GSE forbearance fees 1,537 1,204 — Reverse subservicing ancillary income 1,411 — — Home Affordable Modification Program (HAMP) fees (1) 638 565 5,538 Other 14,179 10,769 13,427 Total ancillary income 101,632 108,486 155,543 $ 781,941 $ 737,320 $ 975,507 (1) The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification. (2) Includes servicing and subservicing fees related to transferred MSRs. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting. |
MSR Transfers Not Qualifying _2
MSR Transfers Not Qualifying for Sale Accounting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of Interest Expense Related to Financial Liability | The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with NRZ and MAV that do not qualify for sale accounting. Year Ended December 31, 2021 Pledged MSR Liability Original Rights to MSRs Agreements MAV Agreements (2) Total Beginning balance $ 566,952 $ — $ 566,952 Additions — 250,016 250,016 Changes in fair value 82,274 (4,329) 77,945 Runoff and settlement (81,813) (7,543) (89,356) Calls (1) (8,472) — (8,472) Ending balance $ 558,940 $ 238,144 $ 797,085 Year Ended December 31, 2020 Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 603,046 $ 35,445 $ 312,102 $ 950,593 Additions — — — — Sales — — (226) (226) Changes in fair value (3) 36,065 903 (40,720) (3,752) Runoff and settlement (3) (70,403) (35,121) (7,492) (113,016) Derecognition of financing liability due to termination of PMC Agreement (4) — — (263,664) (263,664) Calls (1) (1,756) (1,227) — (2,983) Ending balance $ 566,952 $ — $ — $ 566,952 Year Ended December 31, 2019 Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 436,511 $ 138,854 $ 457,491 $ 1,032,856 Additions — — 1,276 1,276 Sales — — 44 44 Changes in fair value (3) 222,697 5,866 (82,078) 146,485 Runoff and settlement (3) (42,229) (101,003) (64,631) (207,863) Calls (1) (13,933) (8,272) — (22,205) Ending balance $ 603,046 $ 35,445 $ 312,102 $ 950,593 (1) Represents the carrying value of MSRs in connection with call rights exercised by NRZ, for MSRs transferred to NRZ under the 2017 Agreements and New RMSR Agreements, or by Ocwen at NRZ’s direction, for MSRs underlying the Original Rights to MSRs Agreements (as defined below). Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization. (2) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is retained by PMC (shared between PMC and MAV) and other contractual cash flows under the terms of the subservicing agreement. As the MSR sales to MAV do not achieve sale accounting, the MSR asset transferred remains on the consolidated balance sheet and the proceeds from the sale are initially recognized as a financing liability (Pledged MSR liability), which is recorded at fair value with changes in fair value reported in Pledged MSR liability expense. (3) Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the years ended December 31, 2020 and 2019 in the table above have been recast to conform to current year disclosure, resulting in a loss of $14.1 million in 2020 and a gain of $6.5 million in 2019, reclassified from Runoff and settlement to Changes in fair value. (4) On February 20, 2020, we received a notice of termination from NRZ with respect to the PMC MSR Agreements. While the MSRs and the Rights to MSRs associated with these loans were derecognized from our balance sheet, we continued to service these loans until completing deboarding on October 1, 2020, and accounted for them as a subservicing relationship during that period. The following table presents assets and liabilities recorded on our consolidated balance sheets in connection with the MSR transfer agreements with NRZ that do not qualify for sale accounting (refer to Note 9 — Receivables and Note 15 — Other Liabilities for receivables and other liabilities, respectively, related to MAV): December 31, 2021 2020 Balance Sheet NRZ - Transferred MSRs, at fair value $ 558,940 $ 566,952 Other financing liability - Pledged MSR liability, at fair value NRZ - Original Rights to MSRs Agreements 558,940 566,952 Due from NRZ (Receivables) Advance funding, subservicing fees and reimbursable expenses 3,781 4,611 Due to NRZ (Other liabilities) $ 76,590 $ 94,691 The following tables present selected items in our consolidated statements of operations in connection with the MSR transfer agreements with NRZ and MAV that do not qualify for sale accounting. Year Ended December 31, 2021 2020 2019 Statements of Operations Servicing fees Servicing fees collected on behalf of NRZ $ 304,248 $ 383,685 $ 577,015 Servicing fees collected on behalf of MAV 14,173 — — $ 318,421 $ 383,685 $ 577,015 Pledged MSR liability expense NRZ (see further details below) $ 205,226 $ 152,334 $ 372,089 MAV (see further details below) 4,675 — — $ 209,901 $ 152,334 $ 372,089 NRZ Pledged MSR liability expense: Year Ended December 31, 2021 2020 2019 Servicing fees collected on behalf of NRZ $ 304,248 $ 383,685 $ 577,015 Less: Subservicing fee retained 88,401 104,848 139,343 Net servicing fees remitted to NRZ 215,847 278,837 437,672 Less: Reduction (increase) in financing liability Changes in fair value: Original Rights to MSRs Agreements (1) (82,274) (36,065) (222,697) 2017 Agreements and New RMSR Agreements — (903) (5,866) PMC MSR Agreements — 40,720 82,078 (82,274) 3,752 (146,485) Runoff and settlement: Original Rights to MSRs Agreements (1) 81,813 70,403 42,228 2017 Agreements and New RMSR Agreements — 35,121 101,003 PMC MSR Agreements — 7,492 64,631 81,813 113,016 207,862 Other 11,082 9,735 4,206 Pledged MSR liability expense $ 205,226 $ 152,334 $ 372,089 (1) Effective January 1, 2021, changes in fair value due to actual vs. model variances are presented as Changes in valuation inputs or assumptions. Activity for the years ended December 31, 2020 and 2019 in the table above have been recast to conform to current year disclosure, resulting in a loss of $14.1 million in 2020 and a gain of $6.5 million in 2019, reclassified from Runoff and settlement to Changes in fair value. MAV Pledged MSR liability expense: Year Ended December 31, 2021 Servicing fees collected on behalf of MAV $ 14,173 Less: Subservicing fee retained by Ocwen 1,988 Net servicing fees remitted to MAV 12,186 Less: Reduction (increase) in Pledged MSR liability Changes in fair value due to valuation inputs or assumptions 4,329 Runoff and settlement 7,543 11,872 Other (1) (4,361) Pledged MSR liability expense - MAV $ 4,675 (1) Includes $4.0 million of early payment protection associated with the sale of MSR portfolios by PMC to MAV. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Receivables | December 31, 2021 2020 Servicing-related receivables: Government-insured loan claims - Forward $ 90,603 $ 103,058 Government-insured loan claims - Reverse 39,895 32,887 Due from custodial accounts 7,777 19,393 Subservicing fees 6,662 98 Reimbursable expenses 6,056 4,970 Subservicing fees and reimbursable expenses - Due from NRZ 3,781 4,611 Subservicing fees, reimbursable expenses and other - Due from MAV 4,933 — Other 1,223 989 160,930 166,006 Income taxes receivable 56,776 57,503 Due from MAV 990 — Other receivables 3,760 3,200 222,456 226,709 Allowance for losses (41,749) (39,044) $ 180,707 $ 187,665 |
Government Insured Loans Claims | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Changes in Allowance For Losses | Allowance for Losses - Government-Insured Loan Claims Years Ended December 31, 2021 2020 2019 Beginning balance $ 38,339 $ 56,868 $ 52,497 Provision 14,440 18,145 29,034 Charge-offs and other, net (11,284) (36,674) (24,663) Ending balance $ 41,495 $ 38,339 $ 56,868 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | December 31, 2021 2020 Computer hardware $ 25,462 $ 33,585 Operating lease ROU assets 22,900 26,930 Computer software 17,002 16,371 Leasehold improvements 13,766 21,272 Office equipment 2,359 6,958 Furniture and fixtures 2,277 3,463 Other 68 123 83,834 108,702 Less accumulated depreciation and amortization (70,160) (91,777) $ 13,674 $ 16,925 |
Investment in Equity Method I_2
Investment in Equity Method Investee (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment Summarized Financial Information | Our 15% investment in MAV Canopy is comprised of following at and for the year ended December 31, 2021: Capital contribution $ 27,927 Capital distribution (8,250) Earnings of equity method investee 3,620 Investment in equity method investee $ 23,297 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | December 31, 2021 2020 Contingent loan repurchase asset $ 403,740 $ 480,221 Prepaid expenses 21,498 21,176 Derivatives, at fair value 21,675 23,246 Prepaid representation, warranty and indemnification claims - Agency MSR sale 15,173 15,173 Intangible assets, net 14,335 600 REO 10,075 7,771 Prepaid lender fees, net 7,150 9,556 Deferred tax assets, net 3,329 3,543 Security deposits 1,174 2,222 Other 9,101 7,975 $ 507,250 $ 571,483 |
Other Financing Liabilities (Ta
Other Financing Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Financing Liabilities | The following tables presents transferred MSR liabilities recorded in connection with MSR sales and transfers that do not qualify for sale accounting and liabilities of consolidated mortgage-backed securitization trusts. Outstanding Balance at December 31, Borrowing Type Collateral Maturity 2021 2020 Original Rights to MSRs Agreements, at fair value - NRZ (1) MSRs (1) $ 558,940 $ 566,952 Pledged MSR liability, at fair value - MAV (1) MSRs (1) 238,144 — 797,085 566,952 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment Oct. 2033 7,879 9,770 Total Other financing liabilities, at fair value $ 804,963 $ 576,722 (1) See Note 8 — MSR Transfers Not Qualifying for Sale Accounting for additional information. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Match Funded Liabilities | Advance Match Funded Liabilities Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Maturity (1) Amort. Date (1) Total Available (2) 2021 2020 Advance Receivables Backed Notes - Series 2015-VF5 (3) Jun. 2052 Jun. 2022 $ 80,000 $ 65,768 $ 14,231 $ 89,396 Advance Receivables Backed Notes, Series 2020-T1 (4) Aug. 2052 Aug. 2022 475,000 — 475,000 475,000 Total Ocwen Master Advance Receivables Trust (OMART) 555,000 65,768 489,231 564,396 Ocwen Freddie Advance Funding (OFAF ) - Advance Receivables Backed Notes, Series 2015-VF1 (5) Aug. 2052 Aug. 2022 40,000 16,934 23,065 16,892 $ 595,000 $ 82,702 $ 512,297 $ 581,288 Weighted average interest rate (6) 1.54% 1.96% (1) The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. After the amortization date for each note, all collections that represent the repayment of advances pledged to the facility must be applied ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing note may not be used to fund new advances. (2) The committed borrowing capacity under the OMART and OFAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2021, none of the available borrowing capacity of the OMART and OFAF advance financing notes could be used based on the amount of eligible collateral. (3) Interest is computed based on the lender’s cost of funds plus applicable margin. On June 30, 2021, the interest rate margin was reduced by 200 bps and the total borrowing capacity was voluntarily reduced from $250.0 million to $80.0 million. (4) The interest rates on the individual classes of notes range between 1.28% to 5.42%. (5) On August 26, 2021, the interest rate was reduced by 100 bps to the lender’s cost of funds plus applicable margin and the borrowing capacity was voluntarily reduced from $70.0 million to $40.0 million.. On January 31, 2022, we amended the OFAF advance facility to include Fannie Mae advances as eligible collateral and renamed the facility Ocwen GSE Advance Funding (OGAF). |
Schedule of Mortgage Loan Warehouse, MSR Financing Facilities and SSTL | Mortgage Loan Warehouse Facilities Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Uncommitted Committed (1) 2021 2020 Master repurchase agreement (2) Loans held for sale (LHFS), Receivables and REO June 2022 $ 115,000 $ 50,563 $ 109,437 $ 195,773 Master repurchase agreement (3) LHFS and Loans held for investment (LHFI) Dec. 2022 250,000 39,118 160,882 80,081 Master repurchase agreement (4) N/A N/A 50,000 — — — Participation agreement (5) LHFS June 2022 254,814 — 45,186 — Master repurchase agreement (5) LHFS June 2022 — 98,234 1,766 63,281 Master repurchase agreement LHFS June 2022 — 1,000 — — Mortgage warehouse agreement (6) LHFS Jan. 2022 — 38,208 11,792 11,715 Mortgage warehouse agreement (7) LHFS and LHFI Dec. 2022 116,187 — 87,813 73,134 Mortgage warehouse agreement (8) LHFS and Receivables (9) 7,977 — 192,023 27,729 Master repurchase agreement (9) LHFS (10) — — 459,344 — Loan and security agreement (10) LHFS and Receivables Apr. 2022 — 13,166 16,834 — Total Mortgage loan warehouse facilities $ 793,978 $ 240,289 $ 1,085,076 $ 451,713 Weighted average interest rate (11) 2.61% 3.33% (1) Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, none of the available borrowing capacity could be used at December 31, 2021 based on the amount of eligible collateral that could be pledged. (2) The maximum borrowing under this agreement is $275.0 million, of which $160.0 million is available on a committed basis and the remainder is available at the discretion of the lender. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (3) The maximum borrowing under this agreement is $450.0 million, of which $200.0 million is available on a committed basis and the remainder is available on an uncommitted basis. On December 7, 2021, the total borrowing capacity and uncommitted capacity under the facility was increased to $450.0 million and $250.0 million, respectively, and the interest rate margin was reduced by 125 bps for forward and reverse originated loans. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (4) T he lender provides financing for up to $50.0 million at the discretion of the lender. The agreement has no stated maturity date. Interest on this facility is based on the Secured Overnight Financing Rate (SOFR). At December 31, 2021 and 2020, the interest rate for this facility was SOFR plus applicable margin, with a SOFR floor of 25 bps. (5) On June 23, 2021, the $120.0 million uncommitted borrowing capacity under the participation agreement was increased to $150.0 million and the committed borrowing capacity under the repurchase agreement was increased from $90.0 million to $100.0 million. The interest rate on repurchase agreement was revised to the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor of 3.00% for new originations and less applicable margin with an interest rate floor of 3.25% for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean up loans. The interest rate on the participation agreement was revised to the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor of 3.00% for new originations. The transactions do not qualify for sale accounting treatment and are accounted for as secured borrowings. On July 23, 2021, we temporarily increased the borrowing capacity under the participation agreement to $300.0 million until September 14, 2021 when the temporary increase in borrowing capacity was extended to November 15, 2021. On November 8, 2021, the $150.0 million temporary increase in borrowing capacity under the participation agreement was extended to January 15, 2022. (6) Under this agreement, t he lender provides financing for up to $50.0 million on a committed basis. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with an interest rate floor of 525 bps. On January 14, 2022, the maturity date of this facility was extended to March 16, 2022. (7) Under this agreement, t he lender provides financing for up to $150.0 million on an uncommitted basis. On February 1, 2021, the borrowing capacity all of which is uncommitted, was temporarily increased from $100.0 million to $150.0 million until February 28, 2021 when it was reduced to $100.0 million. On March 30, 2021, the borrowing capacity was temporarily increased to $150.0 million effective April 1, 2021 until April 29, 2021 when the increase was made permanent. On September 27, 2021, the borrowing capacity was increased to $175.0 million until December 21, 2021, when the borrowing capacity was increased to $204.0 million and the interest rate floor was reduced by 37.5 bps. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with an interest rate floor of 2.875%. (8) On May 17, 2021, the total borrowing capacity of this facility, all of which is uncommitted, was increased from $100.0 million to $150.0 million through the addition of a $50.0 million participation interest. The agreement has no stated maturity date, however each transaction has a maximum duration of four years. The cost of this line is set at e ach transaction date and is based on the interest rate and type of the collateral. On September 1, 2021, the total borrowing capacity of the facility was increased to $200.0 million. On January 5, 2022, the total borrowing capacity of the facility was increased to $250.0 million. (9) On March 29, 2021, we entered into a repurchase agreement which provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 30-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are transferred to a trust which trust issues a trust certificate that is pledged as the collateral for the borrowings. See Note 2 — Securitizations and Variable Interest Entities for additional information. On March 31, 2021, the trust issued the first certificate of $50.0 million which was increased to $75.0 million on May 28, 2021 and further increased to $225.0 million on July 29, 2021. The second trust certificate of $50.0 million was issued on April 12, 2021 and increased to $100.0 million on July 13, 2021. Additional trust certificates of $25.0 million and $100.0 million were issued for borrowing on June 25, 2021 and July 23, 2021, respectively, under this agreement. Each certificate is renewed monthly and at December 21, 2021, the interest rate for this facility was 1ML plus applicable margin. On January 27, 2022, we voluntarily reduced the first certificate by $75.0 million. (10) On April 29, 2021, we entered into a revolving facility agreement which provides up to $30.0 million of committed borrowing capacity secured by eligible HECM loans that are active buyouts (ABO), as defined in the agreement. At December 31, 2021 and 2020, the interest rate for this facility was Prime Rate plus applicable margin, with an interest rate floor of 450 bps. (11) 1ML was 0.10% and 0.14% at December 31, 2021 and 2020, respectively. Prime Rate was 3.25% at December 31, 2021 and 2020. SOFR was 0.05% and 0.07% at December 31, 2021 and 2020, respectively. The weighted average interest rate at December 31, 2021, excludes the effect of the amortization of prepaid lender fees. At December 31, 2021 and 2020, unamortized prepaid lender fees were $1.2 million and $2.0 million, respectively, and are included in Other assets in our consolidated balance sheets. MSR Financing Facilities, net Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Uncommitted Committed (1) 2021 2020 Agency MSR financing facility (2) MSRs, Advances June 2022 $ — $ 32,477 $ 317,523 $ 210,755 Ginnie Mae MSR financing facility (3) MSRs, Advances Jan. 2022 18,306 — 131,694 112,022 Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 (4) MSRs Nov. 2024 — — 41,663 68,313 Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) MSRs Feb. 2028 — — 39,529 47,476 Agency MSR financing facility - revolving loan (6) MSRs June 2026 — 7,929 277,071 — Agency MSR financing facility - term loan (6) MSRs June 2023 — — 94,178 — Total MSR financing facilities $ 18,306 $ 40,406 $ 901,658 $ 438,566 Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7) (898) (894) Total MSR financing facilities, net $ 900,760 $ 437,672 Weighted average interest rate (8) (9) 3.71% 4.82% (1) Of the borrowing capacity on MSR financing facilities extended on a committed basis, $0.5 million of the available borrowing capacity could be used at December 31, 2021 based on the amount of eligible collateral that could be pledged. (2) PMC’s obligations under this facility are secured by a lien on the related MSRs. Ocwen guarantees the obligations of PMC under this facility. The maximum amount which we may borrow pursuant to the repurchase agreements is $350.0 million on a committed basis. We also pledged the membership interest of the depositor for our OMART advance financing facility as additional collateral to this facility. See Note 2 — Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. Declines in fair value of our MSRs due to declines in market interest rates, assumption updates or other factors require that we provide additional collateral to our lenders under these facilities. Effective April 15, 2021, the facility was upsized to $350.0 million (it was earlier reduced to $250.0 million in May 2020) and the interest rate was reduced to 1ML plus applicable margin. On June 2, 2021, the facility was temporarily upsized to $425.0 million for a period of 90 calendar days ending no later than September 1, 2021. On August 26, 2021 and later on October 25, 2021, the temporary upsize was extended until November 1, 2021. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin. (3) In connection with this facility, PMC entered into a repurchase agreement pursuant to which PMC has sold a participation certificate representing certain economic interests in the Ginnie Mae MSRs and has agreed to repurchase such participation certificate at a future date at the repurchase price set forth in the repurchase agreement. PMC’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and advances. Ocwen guarantees the obligations of PMC under the facility. On October 26, 2021, the borrowing capacity was increased from $125.0 million to $150.0 million on an uncommitted basis. See (2) above regarding daily margining requirements. On January 31, 2022, the maturity date of this facility was extended to February 28, 2022. At December 31, 2021 and 2020, the interest rate for this facility was 1ML plus applicable margin, with a 1ML floor of 50 bps. (4) PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Ocwen guarantees the obligations of PLS Issuer under the facility. The Class A PLS Notes issued pursuant to the credit agreement had an initial principal amount of $100.0 million and amortize in accordance with a predetermined schedule subject to modification under certain events. These notes have fixed interest rate of 5.07%. See Note 2 — Securitizations and Variable Interest Entities for additional information. (5) OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes. (6) On June 28, 2021, we entered into a facility which includes a $135.0 million term loan and a $285.0 million revolving loan secured by a lien on PMC’s Agency MSRs. See (2) above regarding daily margining requirements. At December 31, 2021, the interest rate for this facility was 1-year swap rate plus applicable margin. (7) At December 31, 2021, unamortized debt issuance costs included $0.4 million and $0.5 million on the PLS Notes and the Agency MSR financing facility - term loan, respectively. At December 31, 2021 and 2020, unamortized prepaid lender fees related to revolving type MSR financing facilities were $4.7 million and $3.3 million, respectively, and are included in Other assets in our consolidated balance sheets. (8) Weighted average interest rate at December 31, 2021, excluding the effect of the amortization of debt issuance costs and prepaid lender fees. (9) 1ML was 0.10% and 0.14% at December 31, 2021 and 2020, respectively. The 1-year swap rate was 0.19% and 0.19% at December 31, 2021 and 2020, respectively. Senior Secured Term Loan, net Outstanding Balance at December 31, Borrowing Type Collateral Interest Rate Maturity 2021 2020 SSTL (1) (1) 1-Month Eurodollar rate + 600 bps with a Eurodollar floor of 100 bps (1) May 2022 (1) $ — $ 185,000 Unamortized debt issuance costs — (4,867) Discount — (357) $ — $ 179,776 (1) On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance. The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million. |
Schedule of Senior Notes | Senior Notes Outstanding Balance at December 31, Interest Rate (1) Maturity 2021 2020 PMC Senior Secured Notes 7.875% March 2026 $ 400,000 $ — OFC Senior Secured Notes (due to related parties) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285,000 — PHH Corporation (PHH) Senior Notes 6.375% August 2021 — 21,543 PMC Senior Secured Notes 8.375% November 2022 — 291,509 Principal balance 685,000 313,052 Discount (2) PMC Senior Secured Notes (1,758) — OFC Senior Secured Notes (3) (54,176) — (55,934) — Unamortized debt issuance costs (2) PMC Senior Secured Notes (5,687) (968) OFC Senior Secured Notes (8,582) — (14,269) (968) Fair value adjustments — (186) $ 614,797 $ 311,898 (1) Excluding the effect of the amortization of debt issuance costs and discount. (2) The discount and debt issuance costs are amortized to interest expense through the maturity of the respective notes. (3) Includes original issue discount (OID) and additional discount related to the concurrent issuance of warrants and common stock. See below for additional information. |
Schedule of Assets Held as Collateral Related to Secured Borrowings | Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at December 31, 2021: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 192,792 $ — $ — $ 192,792 Restricted cash 70,654 70,654 — — Loans held for sale 928,527 887,602 870,411 40,924 Loans held for investment - securitized (2) 6,979,100 6,979,100 6,885,022 — Loans held for investment - unsecuritized 220,662 197,020 176,807 23,642 MSRs (3) 1,422,546 1,407,949 815,584 14,597 Advances, net 772,433 622,131 598,370 150,302 Receivables, net 180,707 33,672 32,670 147,035 REO 10,075 6,624 5,188 3,451 Total (4) $ 10,777,497 $ 10,204,753 $ 9,384,052 $ 572,744 (1) Certain assets are pledged as collateral to the $400.0 million PMC Senior Secured Notes and $285.0 million OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PMC in connection with certain claims relating to the performance and obligations of PMC as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to NRZ and MAV and associated Pledged MSR liability recorded as sale accounting criteria are not met. |
Schedule of Aggregate Long-term Borrowings | Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience. Expected Maturity Date (1) (2) 2022 2023 2024 2025 2026 Thereafter Total Fair Advance match funded liabilities $ 512,297 $ — $ — $ — $ — $ — $ 512,297 $ 511,994 Mortgage loan warehouse facilities 1,085,076 — — — — — 1,085,076 1,085,076 MSR financing facilities 490,880 94,178 — — 277,071 39,529 901,658 873,820 Senior notes — — — — 400,000 285,000 685,000 674,927 $ 2,088,253 $ 94,178 $ — $ — $ 677,071 $ 324,529 $ 3,184,031 $ 3,145,817 (1) Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment. (2) For match funded liabilities, the Expected Maturity Date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | December 31, 2021 2020 Contingent loan repurchase liability $ 403,740 $ 480,221 Other accrued expenses 104,931 87,898 Due to NRZ - Advance collections and servicing fees 76,590 94,691 Liability for indemnification obligations 51,243 41,920 Checks held for escheat 44,866 35,654 Accrued legal fees and settlements 43,990 38,932 MSR purchase price holdback 32,620 20,923 Servicing-related obligations 32,366 35,237 Lease liability 16,842 27,393 Liability for uncertain tax positions 14,730 16,188 Accrued interest payable 11,998 4,915 Liability for unfunded India gratuity plan 6,263 6,051 Liability for unfunded pension obligation 4,183 12,662 Derivatives, at fair value 3,080 4,638 Due to MAV 2,134 — Other 17,938 16,652 $ 867,514 $ 923,975 |
Schedule of Accrued Legal Fees and Settlements | Accrued Legal Fees and Settlements Years Ended December 31, 2021 2020 2019 Beginning balance $ 38,932 $ 30,663 $ 62,763 Accrual for probable losses (1) 9,399 26,468 3,011 Payments (2) (5,533) (14,826) (30,356) Net increase (decrease) in accrued legal fees 1,192 (3,433) (4,884) Other — 60 129 Ending balance $ 43,990 $ 38,932 $ 30,663 (1) Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the consolidated statements of operations. |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss (AOCL), Net of Income Taxes | The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows: December 31, 2021 2020 Unfunded pension plan obligation, net $ 1,880 $ 8,409 Unrealized losses on cash flow hedges, net 559 674 Other (72) 12 $ 2,366 $ 9,095 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Changes in Notional Balances of Holdings of Derivatives | The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the years ended December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Maturities Notional Fair Value Maturities Notional Fair Value Derivative Assets (Other assets) Forward sales of Reverse loans Feb. 2022 $ 175,000 $ 364 Jan. 2021 $ 30,000 $ 34 Forward loans IRLCs Jan. - Apr. 2022 1,021,978 16,074 Apr. 2021 619,713 22,224 Reverse loans IRLCs Jan. 2022 63,327 2,011 Jan. 2021 11,692 482 TBA forward Pipeline trades Jan. - Mar. 2022 587,000 946 N/A — — Interest rate swap futures Mar. 2022 792,500 1,734 Mar. 2021 593,500 504 Option contracts Jan. 2022 125,000 547 N/A — — Other N/A — — N/A — 2 Total $ 2,764,805 $ 21,675 $ 1,254,905 $ 23,246 Derivative Liabilities (Other liabilities) Forward sales of Reverse loans N/A $ — $ — Jan. 2021 $ 20,000 $ (84) TBA forward Pipeline trades Jan. - Mar. 2022 645,000 (898) N/A — — TBA forward MBS trades Feb. 2022 550,000 (287) Jan. 2021 400,000 (4,554) Option contracts Feb. 2022 450,000 (824) N/A — — Other N/A — (1,070) N/A — — Total $ 1,645,000 $ (3,080) $ 420,000 $ (4,638) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations. Year Ended December 31, 2021 Year Ended December 31, 2020 Gain / (Loss) Gain / (Loss) Amount Financial Statement Line Amount Financial Statement Line Derivative Instruments Forward loans IRLCs $ (6,150) Gain on loans held for sale, net $ 17,479 Gain on loans held for sale, net Reverse loans IRLCs 1,529 Reverse mortgage revenue, net 349 Reverse mortgage revenue, net TBA forward pipeline trades 1,483 Gain on loans held for sale, net (Economic Hedge) — N/A Interest rate swap futures and TBA forward MBS trades — Gain on loans held for sale, net (Economic hedge) (10,140) Gain on loans held for sale, net (Economic hedge) Interest rate swap futures, TBA forward MBS trades and option contracts (9,542) MSR valuation adjustments, net 27,538 MSR valuation adjustments, net Forward sales of Reverse loans 414 Reverse mortgage revenue, net (29) Reverse mortgage revenue, net Other (2) Gain on loans held for sale, net 73 Gain on loans held for sale, net Other (1,070) Other, net — N/A $ (13,339) $ 35,270 |
Interest Income (Tables)
Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest Income | Years Ended December 31, 2021 2020 2019 Loans held for sale $ 25,889 $ 13,929 $ 14,669 Interest earning cash deposits and other 485 2,070 2,435 $ 26,374 $ 15,999 $ 17,104 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest Expense | Years Ended December 31, 2021 2020 2019 OFC Senior Secured Notes (1) $ 31,656 $ — $ — PHH and PMC senior notes 31,914 26,634 31,804 Mortgage loan warehouse facilities 30,638 15,239 11,100 MSR financing facilities 26,036 15,885 8,112 Advance match funded liabilities 14,238 24,122 26,902 SSTL 2,956 20,465 27,066 Escrow 6,530 7,022 9,145 $ 143,968 $ 109,367 $ 114,129 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Taxes | For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows: Years Ended December 31, 2021 2020 2019 Domestic $ (13,901) $ (118,043) $ (93,487) Foreign 9,530 12,359 (33,004) $ (4,371) $ (105,684) $ (126,491) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Years Ended December 31, 2021 2020 2019 Current: Federal $ (20,134) $ (67,080) $ 873 State (1,310) 348 4,460 Foreign 1,554 2,600 7,181 (19,890) (64,132) 12,514 Deferred: Federal (2,265) (26,029) (40,429) State (31) (2,115) (914) Foreign 167 (1,445) 11,993 Provision for (reversal of) valuation allowance on deferred tax assets 2,344 28,215 32,470 215 (1,374) 3,120 Other (2,774) — — Total $ (22,449) $ (65,506) $ 15,634 |
Schedule of Effective Income Tax Reconciliation | Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows: Years Ended December 31, 2021 2020 2019 Expected income tax expense (benefit) at statutory rate $ (918) $ (22,194) $ (26,563) Differences between expected and actual income tax expense: CARES Act (12,631) (79,049) — Provision for (reversal of) valuation allowance on deferred tax assets 2,344 28,214 32,470 Provision for (reversal of) liability for uncertain tax positions (8,700) 13,062 4,198 Interest on refund claims due from tax authorities (2,774) — — Other provision to return differences (954) (3,347) 1,242 Foreign tax differential including effectively connected income (1) 1,401 (2,511) 15,979 State tax, after Federal tax benefit 212 (1,396) (619) Benefit of state NOL carryback claims and amended return filings (1,803) — — Executive compensation disallowance 1,384 594 1,344 Excess tax benefits from share-based compensation (518) 424 381 Other permanent differences 150 382 66 Foreign tax credit (generation) utilization (49) (13) 263 Revaluation of deferred tax assets related to legal entity mergers (5) (2) (25,509) U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion 175 182 11,859 U.S. Tax Reform - BEAT Tax — — (555) Bargain purchase gain disallowance — — 80 Other 237 148 998 Actual income tax expense (benefit) $ (22,449) $ (65,506) $ 15,634 (1) The foreign tax differential includes expense recognized in 2019 for taxable income or losses earned by Ocwen Mortgage Servicing, Inc. (OMS) prior to the merger of OMS into OVIS in 2019, which are taxable in the U.S. as effectively connected income (ECI). The impact of ECI to income tax expense (benefit) for 2019 was $2.6 million. |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following: December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards - federal and foreign $ 54,569 $ 40,557 Net operating loss carryforwards and credits - state and local 70,680 67,293 Interest expense disallowance 39,277 23,112 Reserve for servicing exposure 6,752 10,273 Accrued legal settlements 9,905 9,200 Partnership losses 8,553 7,316 Stock-based compensation expense 9,857 6,486 Accrued incentive compensation 6,698 6,240 Accrued other liabilities 5,900 5,722 Lease liabilities 2,549 4,943 Intangible asset amortization 4,964 4,541 Foreign deferred assets 3,763 3,731 Tax residuals and deferred income on tax residuals 1,460 2,968 Bad debt and allowance for loan losses 4,014 — Other 5,133 6,035 234,074 198,417 Deferred tax liabilities Mortgage servicing rights amortization 57,324 8,123 Bad debt and allowance for loan losses — 1,951 Other 1,312 1,151 58,636 11,225 175,438 187,192 Valuation allowance (172,109) (183,649) Deferred tax assets, net $ 3,329 $ 3,543 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows: Years Ended December 31, 2021 2020 2019 Beginning balance $ 20,638 $ 10,589 $ 9,622 Additions for tax positions of current year — — 207 Additions for tax positions of prior years 178 15,242 3,110 Reductions for tax positions of prior years (6,361) (219) — Reductions for settlements (555) (3,067) (1,293) Lapses in statute of limitations (2,365) (1,907) (1,057) Ending balance (1) $ 11,535 $ 20,638 $ 10,589 |
Basic and Diluted Earnings (L_2
Basic and Diluted Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Calculation of Basic EPS to Diluted EPS | Years Ended December 31, 2021 2020 2019 Basic earnings (loss) per share Net income (loss) $ 18,078 $ (40,178) $ (142,125) Weighted average shares of common stock outstanding 9,021,975 8,748,725 8,962,961 Basic earnings (loss) per share $ 2.00 $ (4.59) $ (15.86) Diluted earnings (loss) per share Net income (loss) $ 18,078 $ (40,178) $ (142,125) Weighted average shares of common stock 9,021,975 8,748,725 8,962,961 Effect of dilutive elements Contingent issuance of common stock 38,685 — — Common stock warrants 152,208 — — Stock option awards 60 — — Common stock awards 169,539 — — Dilutive weighted average shares of common stock 9,382,467 8,748,725 8,962,961 Diluted earnings (loss) per share $ 1.93 $ (4.59) $ (15.86) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 143,593 199,079 211,175 Market-based (2) 87,509 125,395 52,480 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. |
Employee Compensation and Ben_2
Employee Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Change in Benefit Obligation, Plan Assets and Funded Status for Pension Plans | The following table shows the total change in the benefit obligation, plan assets and funded status for the pension plans: December 31, 2021 2020 Projected benefit obligation $ 54,262 $ 58,965 Fair value of plan assets 50,078 46,303 Unfunded status recognized in Other liabilities $ (4,183) $ (12,662) Amounts recognized in Accumulated other comprehensive loss $ 1,955 $ 8,484 |
Change in Benefit Obligation, Plan Assets and Funded Status for Gratuity Plan | The following table shows the total change in the benefit obligation, plan assets and funded status for the Gratuity Plan: December 31, 2021 2020 Benefit obligation $ 6,305 $ 6,091 Fair value of plan assets 42 40 Unfunded status recognized in Other liabilities $ (6,263) $ (6,051) |
Schedule of Stock Options Vesting | Outstanding equity awards granted under the 2007 Equity Plan, the 2017 Equity Plan and 2021 Equity Incentive Plan had the following characteristics in common: Type of Award Percent of Total Equity Award Vesting Period 2012 - 2014 Awards: Options: Servicing Condition - Time-based 45 % Ratably over four years (25% on each of the four anniversaries of the grant date) Market Condition: Market performance-based 50 Over three years beginning with 25% vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Extraordinary market performance-based 5 Over three years beginning with 25% vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Total Award 100 % 2015 - 2016 Awards: Type of Award Percent of Total Equity Award Vesting Period Options: Service Condition - Time-based 100 % Ratably over four years (25% vesting on each of the first four anniversaries of the grant date.) 2017 - 2021 Awards: Options: Service Condition - Time-based 6 % Ratably over three years (1/3 vesting on each of the first three anniversaries of the grant date). Stock Units: Service Condition - Time-based 41 Over three years with 1/3 vesting on each of the first three anniversaries of the grant date. Market Condition: Time-based vesting schedule and Market performance-based vesting date 9 Vest over four years with 25% vesting on each of the four anniversaries of the grant date. However, none are considered vested until the first trading day (if any) on or before the 4 th anniversary of the award date on which the average stock price equals or exceeds the price set in the individual award agreement, at which time all units that have met their time-based vesting schedule vest immediately with the remainder vesting in accordance with their time-based schedule. Time-based vesting schedule and Market performance-based vesting date 44 Cliff-vest 100% after three years. Vesting of units credited based on Total Shareholder Return (TSR) for any performance period is subject to continued service through the third anniversary of the grant. There is no interim or ratable vesting. The number of performance-based awards that will vest is determined by Ocwen’s TSR, either absolute or relative to a performance peer group, during each performance period. Total Award 100 % |
Schedule of Stock Option Activity | Years Ended December 31, Stock Options 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 124,866 $ 274.30 131,962 $ 282.30 139,507 $ 288.30 Granted (1) — — — — 3,427 31.20 Exercised — — — — — — Forfeited / Expired (2) (10,208) 189.00 (7,096) 423.80 (10,972) 280.35 Outstanding at end of year (3)(4) 114,658 $ 281.89 124,866 $ 274.30 131,962 $ 282.30 Exercisable at end of year (3)(4)(5) 108,754 $ 273.97 110,484 $ 283.08 105,384 $ 302.40 (1) Stock options granted in 2019 include 2,212 options awarded to Ocwen’s Chief Financial Officer at a strike price of $32.55 equal to the closing price of our common stock on the effective date of her employment. (2) Includes 10,208, 0, and 4,913 options which expired unexercised in 2021, 2020 and 2019, respectively, because their exercise price was greater than the market price of Ocwen’s stock. (3) At December 31, 2021, 5,167 options with a market condition for vesting based on an average common stock trading price of $484.19, had not met their performance criteria. Outstanding and exercisable stock options at December 31, 2021 have a net aggregate intrinsic value of $0.1 million. A total of 44,500 market-based options were outstanding at December 31, 2021, of which 39,333 were exercisable. (4) At December 31, 2021, the weighted average remaining contractual term of options outstanding and options exercisable was 2.02 years and 1.98 years, respectively. (5) The total fair value of stock options that vested and became exercisable during 2021, 2020 and 2019, based on grant-date fair value, was $0.3 million, $0.3 million and $0.6 million, respectively. |
Schedule of Stock Unit Activity | Years Ended December 31, Stock Units - Equity Awards 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Unvested at beginning of year 261,647 $ 21.74 177,275 $ 39.45 196,453 $ 56.25 Granted (1) 236,593 33.50 150,000 8.78 83,797 30.00 Vested (2)(3) (71,855) 33.43 (62,954) 42.25 (75,846) 46.20 Forfeited/Cancelled (10,159) 39.74 (2,674) 26.85 (27,129) 143.70 Unvested at end of year (4)(5) 416,226 $ 25.97 261,647 $ 21.74 177,275 $ 39.45 (1) Stock units granted in 2021, 2020 and 2019 include 115,173, 150,000 and 75,377 units, respectively, granted to Ocwen’s CEO under the new long-term incentive (LTI) program described below. Stock units granted in 2021 includes 4,623 units added to Ocwen’s CEO for performance factor related to 2020 awards under LTI program. (2) The total intrinsic value of stock units vested, which is defined as the market value of the stock on the date of vesting, was $2.1 million, $1.0 million and $2.1 million for 2021, 2020 and 2019, respectively. (3) The total fair value of the stock units that vested during 2021, 2020 and 2019, based on grant-date fair value, was $2.4 million, $2.7 million and $3.5 million, respectively. (4) Excluding the 236,922 market-based stock awards that have not met their performance criteria (and time-vesting requirements, where applicable), the net aggregate intrinsic value of stock awards outstanding at December 31, 2021 was $7.2 million. At December 31, 2021, 3,840 stock units with a market condition for vesting based on an average common stock trading price of $65.10, as well as 37,688 stock units requiring an average common stock trading price of $38.34 to vest a minimum of 50% of units, had not yet met the market condition (and time-vesting requirements, where applicable). The performance for 195,394 stock units is measured based on TSR relative to Ocwen’s compensation peer group TSR over the four performance periods. (5) At December 31, 2021, the weighted average remaining contractual term of share units outstanding was 2.0 years. |
Stock Units Liability Awards | Years Ended December 31, Stock Units - Liability Awards 2021 2020 2019 Unvested units at beginning of year 728,373 243,441 — Granted 233,056 601,787 251,076 Vested (105,974) (21,909) — Forfeited/Cancelled (1) (111,507) (94,954) (7,635) Other (2) 14,678 8 — Unvested units at end of year 758,626 728,373 243,441 (1) Units forfeited/cancelled in 2021 and 2020 include 35,000 and 36,898 units, respectively, related to 2019 transitional performance-based awards. These units were forfeited as the TSR was below the threshold performance levels. (2) Includes, 14,681 units added in 2021 as a result of a performance factor related to 2020 performance-based awards, and 8 shares added in 2020 representing the conversion of fractional stock units on the reverse stock split. |
Schedule of Assumptions used to Value Stock Option Awards Granted | The following assumptions were used to value awards: Years Ended December 31, 2021 2020 2019 Monte Carlo Monte Carlo Black-Scholes Monte Carlo Risk-free interest rate 0.01% - 0.77% 0.08% - 0.29% 2.60% 1.16% – 2.40% Expected stock price volatility (1) 95% - 96.4% 88.7% - 94.1% 68% 72.5% - 75.9% Expected dividend yield —% —% —% —% Expected life (in years) (2) (3) (3) 8.5 (3) Contractual life (in years) N/A N/A N/A N/A Fair value $36.09 - $62.03 $24.36 - $38.75 $20.55 - $23.25 $26.25 - $33.75 (1) We generally estimate volatility based on the historical volatility of Ocwen’s common stock over the most recent period that corresponds with the estimated expected life of the option. For awards valued using a Monte Carlo simulation, volatility is computed as a blend of historical volatility based on daily stock price returns and implied volatility based on traded options on Ocwen’s common stock. (2) For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. No option awards were granted during the years ended December 31, 2021 or 2020. (3) The stock units that contain both a service condition and a market-based condition are valued using the Monte Carlo simulation. The expected term is derived from the output of the simulation and represents the expected time to meet the market-based vesting condition. For equity awards with both service and market conditions, the requisite service period is the longer of the derived or explicit service period. In this case, the explicit service condition (vesting period) is the requisite service period, and the graded vesting method is used for expense recognition. |
Schedule of Equity-based Compensation Expense Related to Stock Options and Stock Awards and Related Excess Tax Benefit | The following table summarizes Ocwen's stock-based compensation expense included as a component of Compensation and benefits expense in the consolidated statements of operations: Years Ended December 31, 2021 2020 2019 Compensation expense - Equity awards Stock option awards $ 254 $ (431) $ (121) Stock awards 4,465 2,832 2,818 $ 4,719 $ 2,401 $ 2,697 Compensation expense - Liability awards $ 15,108 $ 5,642 $ 1,082 Excess tax benefit (tax deficiency) related to share-based awards $ 518 $ (424) $ (381) |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Financial information for our segments is as follows: Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2021 Servicing and subservicing fees $ 773,459 $ 8,482 $ — $ — $ 781,941 Reverse mortgage revenue, net (2,335) 82,011 — — 79,676 Gain on loans held for sale, net (1) 46,596 124,489 — (25,330) 145,755 Other revenue, net 1,660 34,909 6,158 — 42,727 Revenue 819,380 249,891 6,158 (25,330) 1,050,099 MSR valuation adjustments, net (1) (160,396) 25,166 — 25,330 (109,900) Operating expenses 342,424 172,797 94,106 — 609,327 Other income (expense): Interest income 8,245 17,678 451 — 26,374 Interest expense (104,578) (22,972) (16,418) — (143,968) Pledged MSR liability expense (209,121) (834) 54 — (209,901) Loss on extinguishment of debt — — (15,458) — (15,458) Equity in earnings of unconsolidated entity 3,620 — — — 3,620 Other, net 5,190 (2,282) 1,182 — 4,090 Other expense, net (296,644) (8,410) (30,189) — (335,243) Income (loss) before income taxes $ 19,916 $ 93,850 $ (118,137) $ — $ (4,371) Year Ended December 31, 2020 Servicing and subservicing fees $ 731,221 $ 6,041 $ 58 $ — $ 737,320 Reverse mortgage revenue, net 7,579 53,147 — — 60,726 Gain on loans held for sale, net (1) 14,704 105,164 — 17,368 137,236 Other revenue, net 4,160 14,946 6,524 — 25,630 Revenue 757,664 179,298 6,582 17,368 960,912 MSR valuation adjustments, net (1) (276,252) 41,699 — (17,368) (251,921) Operating expenses (2) 331,885 114,357 129,462 — 575,704 Other income (expense): Interest income 7,061 7,008 1,930 — 15,999 Interest expense (90,671) (9,837) (8,859) — (109,367) Pledged MSR liability expense (152,454) — 120 — (152,334) Other, net 10,752 351 (4,372) — 6,731 Other expense, net (225,312) (2,478) (11,181) — (238,971) Income (loss) before income taxes $ (75,785) $ 104,162 $ (134,061) $ — $ (105,684) Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2019 Servicing and subservicing fees $ 974,160 $ 1,254 $ 93 $ — $ 975,507 Reverse mortgage revenue, net 63,459 22,850 — — 86,309 Gain on loans held for sale, net 5,426 32,865 9 — 38,300 Other revenue, net 5,445 4,729 13,085 — 23,259 Revenue 1,048,490 61,698 13,187 — 1,123,375 MSR valuation adjustments, net (120,864) (12) — — (120,876) Operating expenses (2) (3) 547,976 72,457 53,506 — 673,939 Other income (expense): Interest income 10,085 5,243 1,776 — 17,104 Interest expense (102,525) (7,590) (4,014) — (114,129) Pledged MSR liability expense (372,172) — — — (372,172) Gain on extinguishment of debt — — 5,099 — 5,099 Other, net 12,294 892 (4,139) — 9,047 Other income (expense), net (452,318) (1,455) (1,278) — (455,051) Loss before income taxes $ (72,668) $ (12,226) $ (41,597) $ — $ (126,491) (1) Corporate Eliminations for 2021 and 2020 includes inter-segment derivative eliminations of $25.3 million and $17.4 million reported as gain on loans held for sale, net, respectively, with a corresponding offset in MSR valuation adjustments, net. (2) In 2020, we executed certain cost re-engineering initiatives to generate further cost savings, some of which qualify as restructuring charges under GAAP, including the partial abandonment of certain leased properties and additional severance costs. As a result of these initiatives, we accelerated the depreciation of facility lease ROU assets and leasehold improvements by $3.3 million, recorded $6.3 million of facility and other related exit costs, and accrued $3.4 million of employee severance costs. In 2019, we executed cost re-engineering opportunities that extended beyond eliminating redundant costs through the PHH integration process. Costs for this plan totaled $65.0 million, including $35.7 million of employee-related costs, $10.1 million facilities-related and $19.1 million of other costs. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the consolidated statements of operations. Other costs are primarily reported in Professional services expense and Other expenses. The expenses were all incurred within the Corporate Items and Other segment. The remaining liability of $2.0 million at December 31, 2020 is included in Other accrued expenses, a component of Other liabilities in the consolidated balance sheet and was settled in 2021. (3) Included in the Corporate Items and Other segment for 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of amounts previously recognized as expense. Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated December 31, 2021 $ 10,999,204 $ 823,530 $ 324,389 $ 12,147,123 December 31, 2020 9,847,603 379,233 424,291 10,651,127 December 31, 2019 9,580,466 257,416 568,317 10,406,199 Depreciation and Amortization Expense Servicing Originations Corporate Items and Other Business Segments Consolidated Year Ended December 31, 2021: Depreciation expense $ 674 $ 244 $ 9,347 $ 10,265 Amortization of debt discount and issuance costs 687 — 7,105 7,792 Year Ended December 31, 2020: Depreciation expense $ 857 $ 128 $ 18,136 $ 19,121 Amortization of debt discount and issuance costs 470 — 6,522 6,992 Year Ended December 31, 2019: Depreciation expense $ 1,925 $ 93 $ 29,893 $ 31,911 Amortization of debt discount and issuance costs 71 — 4,441 4,512 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity Related to HMBS Repurchases | Activity with regard to HMBS repurchases, including MCA repurchases, follows: Year Ended December 31, 2021 Active Inactive Total Number Amount Number Amount Number Amount Beginning balance 141 $ 29,852 317 $ 56,449 458 $ 86,301 Additions 321 86,114 293 61,177 614 147,291 Recoveries, net (1) (310) (75,584) (176) (25,089) (486) (100,673) Transfers (14) (5,068) 14 5,068 — — Changes in value — 8 — (3,792) — (3,784) Ending balance 138 $ 35,322 448 $ 93,813 586 $ 129,135 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. |
Schedule of Future Minimum Rental Commitments under Non-cancelable Operating Leases | A maturity analysis of our lease liability as of December 31, 2021 is summarized as follows: 2022 $ 12,513 2023 3,029 2024 1,385 2025 654 2026 — Thereafter — 17,581 Less: Adjustment to present value (1) (739) Total lease payments, net $ 16,842 (1) At December 31, 2021, the weighted average of the discount rate used to estimate the present value was 7.6% based on our incremental borrowing rate. |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Liability for Representation and Warrant Obligations and Indemnification Obligations | The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations: Years Ended December 31, 2021 2020 2019 Beginning balance (1) $ 40,374 $ 50,838 $ 49,267 Provision (reversal) for representation and warranty obligations 3,173 (7,783) (11,701) New production liability 4,733 2,596 304 Charge-offs and other (2) (3) 1,150 (5,277) 12,968 Ending balance (1) $ 49,430 $ 40,374 $ 50,838 (1) The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our consolidated balance sheets. (2) Includes principal and interest losses realized in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any. (3) The year ended December 31, 2019 includes $18.0 million liability for representation and warranty obligations related to sold advances previously presented as allowance for losses. See Note 6 — Advances. |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021Employees | Dec. 31, 2020USD ($) | Dec. 21, 2021 | May 03, 2021 | |
Description of Business and Basis of Presentation [Line Items] | ||||
Ownership percentage | 4.90% | |||
Total number of employees | 5,700 | |||
Percentage of foreign based employees engaged in supporting loan servicing operations | 70.00% | |||
Threshold period past due for financing receivables to be delinquent | 89 days | |||
Customer Contracts | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Estimated useful lives | five | |||
MAV Canopy HoldCo I LLC | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Ownership percentage | 15.00% | 15.00% | ||
Accounting Standards Update 2016-13 | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Cumulative-effect adjustments | $ | $ 47,038 | |||
India | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Total number of employees | 3,200 | |||
Philippines | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Total number of employees | 500 | |||
Retained Earnings (Accumulated Deficit) | Accounting Standards Update 2016-13 | ||||
Description of Business and Basis of Presentation [Line Items] | ||||
Cumulative-effect adjustments | $ | $ 47,038 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer Hardware and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Computer Hardware and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Term of the lease not to exceed useful life |
Right of Use (ROU) Assets | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Term of the lease not to exceed useful life |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Securitizations and Variable _3
Securitizations and Variable Interests Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | |||
Average period to securitization | 30 days | ||
Ginnie Mae | |||
Servicing Assets at Fair Value [Line Items] | |||
Percentage of transferred residential loans serviced 60 days or more past due | 12.00% | 17.10% | |
Forward Loans | |||
Servicing Assets at Fair Value [Line Items] | |||
MSRs retained | $ 222.7 | $ 68.7 | $ 7.5 |
Percentage of transferred residential loans serviced 60 days or more past due | 3.60% | 6.80% |
Securitizations and Variable _4
Securitizations and Variable Interests Entities - Summary of Cash Flows Received from and Paid to Securitization Trusts Related to Transfers Accounted for as Sales Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |||
Proceeds received from securitizations | $ 19,293,156 | $ 7,533,284 | $ 1,248,837 |
Servicing fees collected | 63,737 | 47,230 | 50,326 |
Purchases of previously transferred assets, net of claims reimbursed | (17,435) | (6,933) | (4,602) |
Cash flows between transferor and transferee proceeds and payment related to transfers accounted for sales | $ 19,339,458 | $ 7,573,581 | $ 1,294,561 |
Securitizations and Variable _5
Securitizations and Variable Interests Entities - Schedule of Carrying Amounts of Assets that Relate to Continuing Involvement with Transferred Forward Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | $ 31,864,769 | $ 18,062,856 |
Maximum exposure to loss | 32,376,765 | 18,343,246 |
Ginnie Mae | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | 5,600,000 | 4,100,000 |
Mortgage Servicing Rights | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | 360,830 | 137,029 |
Advances | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | $ 151,166 | $ 143,361 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Schedule of Carrying Value of Assets and Liabilities of Loans Held for Sale Financing Facility (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Loans held for sale, at fair value | $ 917,534 | $ 366,364 | $ 208,752 | $ 176,525 |
Master Repurchase Agreement | Secured Debt | ||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Outstanding borrowings (Mortgage loan warehouse facilities) | 459,344 | |||
Variable Interest Entity, Primary Beneficiary | ||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Loans held for sale, at fair value | $ 462,144 | $ 0 |
Securitizations and Variable _7
Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Debt service accounts | $ 9,968 | $ 20,141 | $ 23,276 |
Prepaid lender fees, net | 7,150 | 9,556 | |
Advance match funded liabilities (related to VIEs) | 512,297 | 581,288 | |
Match Funded Liabilities | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Match funded advances (related to VIEs) | 587,059 | 651,576 | |
Debt service accounts | 7,687 | 14,195 | |
Prepaid lender fees, net | 1,305 | 4,253 | |
Prepaid Interest | 225 | 291 | |
Advance match funded liabilities (related to VIEs) | $ 512,297 | $ 581,288 |
Securitizations and Variable _8
Securitizations and Variable Interests Entities - Schedule of Carrying Value of Assets and Liabilities of Agency MSR Financing Facility (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | $ 2,250,147 | $ 1,294,817 | |
Prepaid lender fees, net | 7,150 | 9,556 | |
Debt service accounts | 9,968 | 20,141 | $ 23,276 |
Agency Mortgage Servicing Rights Financing Facility | Variable Interest Entity, Primary Beneficiary | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | 630,605 | 476,371 | |
Prepaid lender fees, net | 1,495 | 1,183 | |
Debt service accounts | 104 | 211 | |
Senior notes | $ 317,523 | $ 210,755 |
Securitizations and Variable _9
Securitizations and Variable Interest Entities - Carrying Value and Classification of Assets And Liabilities of PLS Notes Facility (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | $ 2,250,147 | $ 1,294,817 | |
Debt service accounts | 9,968 | 20,141 | $ 23,276 |
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Unamortized debt issuance costs | 400 | ||
Variable Interest Entity, Primary Beneficiary | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | 99,833 | 129,204 | |
Debt service accounts | 1,968 | 2,385 | |
Senior notes | 41,663 | 68,313 | |
Unamortized debt issuance costs | $ 413 | $ 894 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||||
Loans held for sale, at fair value | $ 917,534 | $ 366,364 | $ 208,752 | $ 176,525 |
Investment in equity method investee | 23,297 | 0 | ||
Financial liabilities: | ||||
Advance match funded liabilities (related to VIEs) | 512,297 | 581,288 | ||
Financing liabilities: | ||||
HMBS-related borrowings | 6,885,022 | 6,772,711 | 6,063,435 | 5,380,448 |
Other financing liabilities | 804,963 | 576,722 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 900,760 | 437,672 | ||
Senior secured term loan, net | 0 | 179,776 | ||
Senior notes: | ||||
Senior Notes | 614,797 | 311,898 | ||
Mortgage Service Rights | ||||
MSRs | 2,250,147 | 1,294,817 | $ 1,486,395 | $ 1,457,149 |
Carrying Value | ||||
Financial assets: | ||||
Total Loans held for sale | 928,527 | 387,836 | ||
Loans held for investment | 7,207,641 | 7,006,897 | ||
Financing liabilities: | ||||
Total Other financing liabilities | 804,963 | 576,722 | ||
Senior notes: | ||||
Senior Notes | 614,797 | 311,898 | ||
Fair Value | ||||
Financial assets: | ||||
Total Loans held for sale | 928,527 | 387,836 | ||
Loans held for investment | 7,207,641 | 7,006,897 | ||
Financing liabilities: | ||||
Total Other financing liabilities | 804,963 | 576,722 | ||
Senior notes: | ||||
Senior Notes | 674,927 | 320,879 | ||
Level 2 | Carrying Value | ||||
Financial assets: | ||||
Loans held for sale, at fair value | 917,534 | 366,364 | ||
Corporate bonds | 211 | 211 | ||
Secured Debt [Abstract] | ||||
Senior secured term loan | 0 | 179,776 | ||
Senior notes: | ||||
Senior unsecured notes | 392,555 | 311,898 | ||
Level 2 | Carrying Value | Option Contracts | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (277) | 0 | ||
Level 2 | Fair Value | ||||
Financial assets: | ||||
Loans held for sale, at fair value | 917,534 | 366,364 | ||
Corporate bonds | 211 | 211 | ||
Secured Debt [Abstract] | ||||
Senior secured term loan | 0 | 184,639 | ||
Senior notes: | ||||
Senior unsecured notes | 413,472 | 320,879 | ||
Level 2 | Fair Value | Option Contracts | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (277) | 0 | ||
Level 3 | ||||
Financial assets: | ||||
Investment in equity method investee | 23,297 | |||
Level 3 | Carrying Value | ||||
Financial assets: | ||||
Loans held for sale, at lower of cost or fair value | 10,993 | 21,472 | ||
Loans held for investment | 7,199,762 | 6,997,127 | ||
Advances (including match funded) | 772,433 | 828,239 | ||
Receivables, net | 180,707 | 187,665 | ||
Mortgage-backed securities, at fair value | 1 | 2,019 | ||
Investment in equity method investee | 23,297 | 0 | ||
Financial liabilities: | ||||
Advance match funded liabilities (related to VIEs) | 512,297 | 581,288 | ||
Financing liabilities: | ||||
HMBS-related borrowings | 6,885,022 | 6,772,711 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 900,760 | 437,672 | ||
Other | 1,085,076 | 451,713 | ||
Senior notes: | ||||
Senior secured notes | 222,242 | 0 | ||
Derivative financial instrument assets (liabilities), at fair value | ||||
Interest rate lock commitments | 18,084 | 22,706 | ||
Mortgage Service Rights | ||||
MSRs | 2,250,147 | 1,294,817 | ||
Level 3 | Carrying Value | Derivative [Member] | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (1,070) | 0 | ||
Level 3 | Carrying Value | Loans Held for Investments - Restricted for Securitization Investors | ||||
Financial assets: | ||||
Loans held for investment | 7,879 | 9,770 | ||
Level 3 | Carrying Value | Financing Liability - MSRs Pledged | ||||
Financing liabilities: | ||||
Other financing liabilities | 797,084 | 566,952 | ||
Level 3 | Carrying Value | Financing Liability Owed to Securitization Investors | ||||
Financing liabilities: | ||||
Other financing liabilities | 7,879 | 9,770 | ||
Level 3 | Fair Value | ||||
Financial assets: | ||||
Loans held for sale, at lower of cost or fair value | 10,993 | 21,472 | ||
Loans held for investment | 7,199,762 | 6,997,127 | ||
Advances (including match funded) | 772,433 | 828,239 | ||
Receivables, net | 180,707 | 187,665 | ||
Mortgage-backed securities, at fair value | 1 | 2,019 | ||
Investment in equity method investee | 23,297 | 0 | ||
Financial liabilities: | ||||
Advance match funded liabilities (related to VIEs) | 511,994 | 581,997 | ||
Financing liabilities: | ||||
HMBS-related borrowings | 6,885,022 | 6,772,711 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 873,820 | 406,860 | ||
Other | 1,085,076 | 451,713 | ||
Senior notes: | ||||
Senior secured notes | 261,455 | 0 | ||
Derivative financial instrument assets (liabilities), at fair value | ||||
Interest rate lock commitments | 18,084 | 22,706 | ||
Mortgage Service Rights | ||||
MSRs | 2,250,147 | 1,294,817 | ||
Level 3 | Fair Value | Derivative [Member] | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (1,070) | 0 | ||
Level 3 | Fair Value | Loans Held for Investments - Restricted for Securitization Investors | ||||
Financial assets: | ||||
Loans held for investment | 7,879 | 9,770 | ||
Level 3 | Fair Value | Financing Liability - MSRs Pledged | ||||
Financing liabilities: | ||||
Other financing liabilities | 797,084 | 566,952 | ||
Level 3 | Fair Value | Financing Liability Owed to Securitization Investors | ||||
Financing liabilities: | ||||
Other financing liabilities | 7,879 | 9,770 | ||
Level 1 | Carrying Value | Forward LHFS Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 364 | |||
Derivative liabilities | (50) | |||
Level 1 | Carrying Value | TBA forward MBS trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (287) | (4,554) | ||
Level 1 | Carrying Value | Interest Rate Swap | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 1,734 | 504 | ||
Level 1 | Carrying Value | TBA Forward Pipelines Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 48 | 0 | ||
Level 1 | Fair Value | Forward LHFS Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 364 | |||
Derivative liabilities | (50) | |||
Level 1 | Fair Value | TBA forward MBS trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (287) | (4,554) | ||
Level 1 | Fair Value | Interest Rate Swap | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 1,734 | 504 | ||
Level 1 | Fair Value | TBA Forward Pipelines Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | $ 48 | $ 0 |
Fair Value - Schedule of Carr_2
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value (Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | May 03, 2021 | Mar. 04, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 614,797 | $ 311,898 | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | 285,000 | $ 199,500 | ||
Level 3 | 7.875% Senior Notes, Due 2026 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | 400,000 | |||
Level 3 | 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 85,500 | $ 199,500 | ||
Ginnie Mae | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans repurchased | $ 220,900 | $ 51,100 |
Fair Value - Summary of Reconci
Fair Value - Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans Held for Investments - Restricted for Securitization Investors | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 9,770 | $ 23,342 | $ 26,520 |
Purchases, issuances, sales and settlements | |||
De-consolidation of mortgage-backed securitization trusts | (10,715) | ||
Settlements | (1,891) | (2,857) | (3,178) |
Purchases, issuances, sales and settlements, total | (1,891) | (13,572) | (3,178) |
Total realized and unrealized gains and (losses): | |||
Ending balance | 7,879 | 9,770 | 23,342 |
Financing Liability Owed to Securitization Investors | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | (9,770) | (22,002) | (24,815) |
Purchases, issuances, sales and settlements | |||
De-consolidation of mortgage-backed securitization trusts | 9,519 | ||
Settlements | 1,891 | 2,857 | 2,813 |
Purchases, issuances, sales and settlements, total | 1,891 | 12,376 | 2,813 |
Total realized and unrealized gains and (losses): | |||
Included in earnings | 144 | ||
Ending balance | (7,879) | (9,770) | (22,002) |
Loans Held-For-Sale, Fair Value | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 51,072 | 0 | |
Purchases, issuances, sales and settlements | |||
Purchases | 436,154 | 162,589 | |
Sales | (259,995) | (137,780) | |
Receivables, net | (1,644) | (969) | |
Other assets | (377) | ||
Purchases, issuances, sales and settlements, total | 174,138 | 23,840 | |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (4,270) | (1,650) | |
Transfers in and / or out of Level 3 | 25,582 | ||
Ending balance | 220,940 | 51,072 | 0 |
Mortgage Backed Securities | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 2,019 | 2,075 | 1,502 |
Purchases, issuances, sales and settlements | |||
Sales | (1,617) | ||
Purchases, issuances, sales and settlements, total | (1,617) | 0 | 0 |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (401) | (56) | (573) |
Ending balance | 1 | 2,019 | 2,075 |
IRLCs | |||
Total realized and unrealized gains and (losses): | |||
Included in earnings | (4,600) | ||
IRLCs | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 22,706 | ||
Purchases, issuances, sales and settlements | |||
Issuances | 627,677 | 286,992 | |
Loans held for sale, at fair value (1) | (591,701) | (285,198) | |
Purchases, issuances, sales and settlements, total | 35,976 | 1,794 | |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (40,597) | ||
Ending balance | $ 18,085 | 22,706 | |
Interest Rate Caps | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | 678 | |
Purchases, issuances, sales and settlements | |||
Purchases, issuances, sales and settlements, total | 0 | ||
Total realized and unrealized gains and (losses): | |||
Included in earnings | 10,434 | 678 | |
Transfers in and / or out of Level 3 | $ 10,478 | ||
Ending balance | $ 0 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Assumptions used in Valuation (Details) | Dec. 31, 2021yearsUSD ($) | Dec. 31, 2020yearsUSD ($) |
Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 5.7 | 5.9 |
Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 5.7 | 5.9 |
Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.160 | 0.154 |
Weighted average prepayment speed | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.085 | 0.118 |
Weighted average prepayment speed | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.121 | 0.115 |
Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.160 | 0.154 |
Weighted average prepayment speed | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.109 | 0.115 |
Weighted average delinquency rate | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.012 | 0.030 |
Weighted average delinquency rate | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.119 | 0.280 |
Weighted average delinquency rate | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.088 | 0.298 |
Weighted average discount rate | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.026 | 0.019 |
Weighted average discount rate | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.085 | 0.092 |
Weighted average discount rate | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.112 | 0.114 |
Weighted average discount rate | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.025 | 0.017 |
Weighted average discount rate | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.105 | 0.114 |
Weighted average cost to service (in dollars) | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 71 | 79 |
Weighted average cost to service (in dollars) | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 205 | 270 |
Weighted average cost to service (in dollars) | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 182 | 287 |
Minimum | Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 1 | 0.9 |
Minimum | Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 1 | 0.9 |
Minimum | Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.112 | 0.106 |
Minimum | Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.112 | 0.106 |
Maximum | Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 8.2 | 8 |
Maximum | Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 8.2 | 8 |
Maximum | Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.366 | 0.288 |
Maximum | Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.366 | 0.288 |
Fair Value - Sensitivity Analys
Fair Value - Sensitivity Analysis (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Weighted average prepayment speeds, 10% | $ (62,497) |
Weighted average prepayment speeds, 20% | (121,391) |
Discount rate (Option-adjusted spread), 10% | (63,711) |
Discount rate (Option-adjusted spread), 20% | $ (114,336) |
Loans Held for Sale - Summary o
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement In Loans Held For Sale At Fair Value [Roll Forward] | |||
Beginning balance | $ 366,364 | $ 208,752 | $ 176,525 |
Originations and purchases | 19,972,375 | 7,552,026 | 1,168,885 |
Proceeds from sales | (19,279,150) | (7,344,151) | (1,124,247) |
Principal collections | (58,603) | (25,976) | (23,116) |
Loans held for investment, at fair value | 4,271 | 3,084 | 1,892 |
Receivables | (33,638) | (85,001) | (2,480) |
Real estate owned (Other assets) | (8,438) | (3,657) | (2,520) |
Gain (loss) on sale of loans | (69,927) | 50,248 | 25,253 |
Capitalization of advances on Ginnie Mae modifications | 24,752 | 12,789 | 0 |
Increase (decrease) in fair value of loans | (948) | 1,075 | (589) |
Other | 474 | (2,825) | (10,851) |
Ending balance | $ 917,534 | $ 366,364 | $ 208,752 |
Loans Held for Sale - Summary_2
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Fair Value (Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase (decrease) in fair value of loans held for sale | $ (4,400) | $ (6,700) | $ (7,800) | |
Loans held for sale, at fair value | 917,534 | 366,364 | $ 208,752 | $ 176,525 |
Repurchased Ginnie Mae Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale, at fair value | $ 220,900 | $ 51,100 |
Loans Held for Sale - Summary_3
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement In Loans Held For Sale At Fair Value [Roll Forward] | |||
Beginning balance | $ 27,652 | $ 73,160 | $ 77,666 |
Purchases | 0 | 0 | 320,089 |
Proceeds from sales | (10,607) | (58,575) | (221,471) |
Principal collections | (989) | (1,842) | (11,304) |
Receivables, net | (1,020) | 61 | (104,635) |
REO (Other assets) | 0 | 0 | (4,116) |
Gain on sale of loans | 549 | 11,189 | 4,974 |
Capitalization of advances on Ginnie Mae modifications | 0 | 0 | 2,485 |
Other | (220) | 3,659 | 9,472 |
Ending balance | 15,365 | 27,652 | 73,160 |
Ending balance | $ 10,993 | $ 21,472 | $ 66,517 |
Loans Held for Sale - Summary_4
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Ginnie Mae | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at lower of cost or fair value | $ 2.7 | $ 12.5 | $ 60.6 |
Loans Held for Sale - Summary_5
Loans Held for Sale - Summary of Changes in Valuation Allowance of Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance - Valuation allowance | $ (6,180) | $ (6,643) | $ (11,569) |
(Provision for) reversal of valuation allowance | 1,802 | (1,144) | (2,537) |
Transfer to (from) Liability for indemnification obligations (Other liabilities) | 7 | (68) | (403) |
Sales of loans | 0 | 1,675 | 7,866 |
Ending balance - Valuation allowance | $ (4,372) | $ (6,180) | $ (6,643) |
Loans Held for Sale - Summary_6
Loans Held for Sale - Summary of Activity in Gain on Loans Held for Sale, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales of loans, net | $ 153,223 | $ 130,140 | $ 37,532 |
Change in fair value of IRLCs | (6,152) | 17,479 | 756 |
Change in fair value of loans held for sale | 1,934 | 2,280 | 3,005 |
Gain (loss) on economic hedge instruments | 1,483 | (10,069) | (2,689) |
Other | (4,733) | (2,594) | (304) |
Gain on loans held for sale, net | 145,755 | 137,236 | 38,300 |
Intersegment Eliminations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on loans held for sale, net | (25,330) | 17,368 | 0 |
Gains on derivatives | (25,300) | 17,400 | |
Intersegment Eliminations | Economic Hedge | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gains on derivatives | 25,300 | (17,400) | |
MSRs Retained on Transfers of Forward Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales of loans, net | 222,715 | 68,734 | 7,458 |
Forward Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales of loans, net | (87,850) | 45,459 | 25,310 |
Repurchased Ginnie Mae Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales of loans, net | 18,358 | $ 15,947 | $ 4,764 |
Servicer Call Rights | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on sales of loans, net | $ 27,100 |
Reverse Mortgages - Schedule of
Reverse Mortgages - Schedule of Loans Held For Investment and HMBS Related Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Loans held for investment - reverse mortgages, beginning balance | $ 6,997,127 | $ 6,269,596 | $ 5,472,199 |
Cumulative effect of fair value election | 47,038 | ||
Originations | 1,763,418 | 1,203,645 | 1,026,154 |
Securitization of HECM loans accounted for as a financing | (1,674,914) | (1,232,641) | (962,113) |
Additional proceeds from securitization of HECM loans and tails | (44,613) | (40,934) | (19,086) |
Repayments (principal payments received) | (1,626,428) | (944,699) | (558,720) |
Loans held for sale, at fair value | (3,383) | (3,084) | (1,892) |
Receivables, net | (333) | (236) | (327) |
REO (Other assets) | (348) | (511) | (513) |
Change in fair value | 69,709 | 425,378 | 332,695 |
Securitized loans (pledged to HMBS-Related Borrowings) | 6,872,252 | 6,120,933 | |
Un-securitized loans | 124,875 | 148,663 | |
Loans held for investment, reverse mortgages, ending balance | 7,199,762 | 6,997,127 | 6,269,596 |
HMBS Related Borrowings, Beginning Balance | (6,772,711) | (6,063,435) | (5,380,448) |
Repayments (principal payments received) | 1,614,295 | 935,778 | 549,600 |
Change in fair value | (7,079) | (371,479) | (251,388) |
HMBS Related Borrowings, Ending Balance | $ (6,885,022) | $ (6,772,711) | $ (6,063,435) |
Reverse Mortgages - Schedule _2
Reverse Mortgages - Schedule of Reverse Mortgage Revenue, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Gain on new originations | $ 64,971 | $ 46,326 | $ 17,849 |
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net | (2,341) | 7,573 | 63,459 |
Change in fair value included in earnings, net | 62,630 | 53,899 | 81,308 |
Loan fees and other | 17,046 | 6,827 | 5,001 |
Reverse mortgage revenue, net | $ 79,676 | $ 60,726 | $ 86,309 |
Advances - Schedule of Advance
Advances - Schedule of Advance Payments by Financial Institution on Foreclosed Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | $ 779,451 | $ 834,512 | ||
Allowance for losses | (7,018) | (6,273) | $ (9,925) | $ (23,259) |
Advances, net | 772,433 | 828,239 | $ 1,056,523 | |
Principal and interest | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | 228,041 | 277,132 | ||
Taxes and insurance | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | 381,025 | 364,593 | ||
Foreclosures, bankruptcy, REO and other | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | $ 170,385 | $ 192,787 |
Advances - Schedule of Activity
Advances - Schedule of Activity in Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Advances [Roll Forward] | |||
Advances, beginning balance | $ 834,512 | $ 1,066,448 | $ 1,209,935 |
Asset acquisition | 6,916 | 14 | 1,457 |
New advances | 831,208 | 890,389 | 671,673 |
Sales of advances | (1,272) | (834) | (11,791) |
Collections of advances and other | (891,914) | (1,121,505) | (804,826) |
Advances, ending balance | 779,451 | 834,512 | 1,066,448 |
Advances, net | $ 772,433 | $ 828,239 | $ 1,056,523 |
Advances - Schedule of Change i
Advances - Schedule of Change in Allowance for Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance, allowance for losses | $ (6,273) | $ (9,925) | $ (23,259) |
Provision | (8,107) | (7,790) | (3,220) |
Net charge-offs and other | 7,361 | 11,442 | 16,554 |
Ending balance, allowance for losses | $ (7,018) | (6,273) | $ (9,925) |
Sold Advances | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision | $ (18,000) |
Mortgage Servicing - Summary of
Mortgage Servicing - Summary of Activity Related to Fair Value Servicing Assets (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 1,294,817 | $ 1,486,395 | $ 1,457,149 | |
Sales | 0 | (143) | (4,344) | |
Recognized on the sale of residential mortgage loans | 222,715 | 68,734 | 8,795 | |
Purchase of MSRs | $ 575,300 | 844,122 | 285,134 | 153,505 |
Servicing transfers and adjustments | (10,782) | (265,845) | (7,309) | |
Changes in valuation inputs or assumptions (2) | 149,514 | (108,051) | 75,885 | |
Realization of cash flows (2) | (250,239) | (171,407) | (197,286) | |
Ending balance | 2,250,147 | 1,294,817 | 1,486,395 | |
Fair Value Agency Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 578,957 | 714,006 | 865,587 | |
Sales | 0 | 0 | (3,578) | |
Recognized on the sale of residential mortgage loans | 222,715 | 68,734 | 8,795 | |
Purchase of MSRs | 844,122 | 285,134 | 153,505 | |
Servicing transfers and adjustments | 117 | (266,248) | 0 | |
Changes in valuation inputs or assumptions (2) | 62,437 | (145,308) | (192,323) | |
Realization of cash flows (2) | (136,511) | (77,361) | (117,980) | |
Ending balance | 1,571,837 | 578,957 | 714,006 | |
Fair Value Non-Agency Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 715,860 | 772,389 | 591,562 | |
Sales | 0 | (143) | (766) | |
Recognized on the sale of residential mortgage loans | 0 | 0 | 0 | |
Purchase of MSRs | 0 | 0 | 0 | |
Servicing transfers and adjustments | (10,899) | 403 | (7,309) | |
Changes in valuation inputs or assumptions (2) | 87,077 | 37,257 | 268,208 | |
Realization of cash flows (2) | (113,728) | (94,046) | (79,306) | |
Ending balance | $ 678,310 | $ 715,860 | $ 772,389 |
Mortgage Servicing - Summary _2
Mortgage Servicing - Summary of Activity Related to Fair Value Servicing Assets (Footnotes) (Details) - USD ($) $ in Thousands | Feb. 20, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing Assets at Fair Value [Line Items] | ||||
Servicing transfers and adjustments | $ 10,782 | $ 265,845 | $ 7,309 | |
Reclassification to changes in valuation inputs or assumptions | $ 1,800 | $ 18,100 | ||
NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing transfers and adjustments | $ 263,700 |
Mortgage Servicing - Schedule o
Mortgage Servicing - Schedule of Composition of Servicing UPB (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | $ 205,591,547 | $ 154,235,693 | ||
Servicing Asset at Fair Value, Amount | 2,250,147 | 1,294,817 | $ 1,486,395 | $ 1,457,149 |
UPB of loans transferred | 31,864,769 | 18,062,856 | ||
NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 12,100,000 | |||
UPB of loans transferred | 41,500,000 | |||
MAV | ||||
Servicing Assets at Fair Value [Line Items] | ||||
UPB of loans transferred | 24,900,000 | |||
Owned Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 127,919,800 | 90,174,495 | ||
Servicing Asset at Fair Value, Amount | 1,422,546 | 727,865 | ||
NRZ Transferred Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 53,652,843 | 64,061,198 | ||
NRZ Transferred Mortgage Servicing Rights | NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing Asset at Fair Value, Amount | 558,940 | 566,952 | ||
MAV Transferred Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 24,018,904 | 0 | ||
Servicing Asset at Fair Value, Amount | $ 268,661 | $ 0 |
Mortgage Servicing - Narrative
Mortgage Servicing - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of portfolio loans acquired | $ 46,800,000 | $ 75,600,000 | $ 31,700,000 | $ 14,600,000 |
Float balances | 2,070,000 | 1,740,000 | 1,710,000 | |
Purchase of MSRs | $ 575,300 | 844,122 | 285,134 | 153,505 |
Agency and Non-Agency Mortgage Servicing Rights | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of MSRs sold | $ 32,000 | $ 80,000 | $ 140,800 |
Mortgage Servicing - Summary _3
Mortgage Servicing - Summary of Geographic Distributions of UPB and Count of Residential Loans and Real Estate Serviced (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 205,591,547 | $ 154,235,693 |
Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 205,591,547 | |
Count | loan | 1,102,187 | |
California | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 43,935,174 | |
Count | loan | 154,632 | |
Texas | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 17,016,955 | |
Count | loan | 104,502 | |
Florida | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 13,754,741 | |
Count | loan | 91,391 | |
New York | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 12,701,419 | |
Count | loan | 53,132 | |
New Jersey | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 10,382,601 | |
Count | loan | 44,175 | |
Other | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | $ 107,800,657 | |
Count | loan | 654,355 |
Mortgage Servicing - Schedule_2
Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |||
Servicing | $ 339,233 | $ 216,263 | $ 227,490 |
Subservicing | 21,120 | 28,886 | 15,459 |
MAV | 15,708 | 0 | 0 |
NRZ (2) | 304,248 | 383,685 | 577,015 |
Servicing and Subservicing fees, total | 680,309 | 628,834 | 819,964 |
Late charges | 40,869 | 47,687 | 57,194 |
Recording Fees | 16,013 | 14,281 | 13,029 |
Loan collection fees | 11,724 | 12,919 | 15,539 |
Boarding and De-Boarding Fees | 10,522 | 11,122 | 3,254 |
Custodial accounts (float earnings) | 4,739 | 9,939 | 47,562 |
GSE forbearance fees | 1,537 | 1,204 | 0 |
Reverse subservicing ancillary income | 1,411 | 0 | 0 |
Home Affordable Modification Program (HAMP) fees | 638 | 565 | 5,538 |
Other | 14,179 | 10,769 | 13,427 |
Fees, total | 101,632 | 108,486 | 155,543 |
Servicing and subservicing fees | $ 781,941 | $ 737,320 | $ 975,507 |
MSR Transfers Not Qualifying _3
MSR Transfers Not Qualifying for Sale Accounting - pledged MSR liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Liability at Fair Value, Amount [Roll Forward] | |||
Pledged MSR liability | $ 566,952 | $ 950,593 | $ 1,032,856 |
Additions | 250,016 | 1,276 | |
Sales | (226) | 44 | |
Changes in fair value | 77,945 | (3,752) | 146,485 |
Runoff and Settlements | (89,356) | (113,016) | (207,863) |
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements | 0 | (263,664) | 0 |
Calls | (8,472) | (2,983) | (22,205) |
Pledged MSR liability | 797,085 | 566,952 | 950,593 |
Changes in fair value | 14,100 | 6,500 | |
Original Rights to MSRs Agreements | |||
Servicing Liability at Fair Value, Amount [Roll Forward] | |||
Pledged MSR liability | 566,952 | 603,046 | 436,511 |
Changes in fair value | 82,274 | 36,065 | 222,697 |
Runoff and Settlements | (81,813) | (70,403) | (42,229) |
Calls | (8,472) | (1,756) | (13,933) |
Pledged MSR liability | 558,940 | 566,952 | 603,046 |
MAV Agreements | |||
Servicing Liability at Fair Value, Amount [Roll Forward] | |||
Pledged MSR liability | 0 | ||
Additions | 250,016 | ||
Changes in fair value | (4,329) | ||
Runoff and Settlements | (7,543) | ||
Pledged MSR liability | 238,144 | 0 | |
2017 Agreements and New RMSR Agreements | |||
Servicing Liability at Fair Value, Amount [Roll Forward] | |||
Pledged MSR liability | 0 | 35,445 | 138,854 |
Changes in fair value | 903 | 5,866 | |
Runoff and Settlements | (35,121) | (101,003) | |
Calls | (1,227) | (8,272) | |
Pledged MSR liability | 0 | 35,445 | |
PMC MSR Agreements | |||
Servicing Liability at Fair Value, Amount [Roll Forward] | |||
Pledged MSR liability | $ 0 | 312,102 | 457,491 |
Additions | 1,276 | ||
Sales | (226) | 44 | |
Changes in fair value | (40,720) | (82,078) | |
Runoff and Settlements | (7,492) | (64,631) | |
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements | (263,664) | ||
Pledged MSR liability | $ 0 | $ 312,102 |
MSR Transfers Not Qualifying _4
MSR Transfers Not Qualifying for Sale Accounting - Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Liabilities at Fair Value [Line Items] | ||||
Servicing Asset at Fair Value, Amount | $ 2,250,147 | $ 1,294,817 | $ 1,486,395 | $ 1,457,149 |
Due to NRZ | 76,590 | 94,691 | ||
Other financing liabilities | 804,963 | 576,722 | ||
Servicing fees collected on behalf of NRZ | 318,421 | 383,685 | 577,015 | |
Changes in fair value | (77,945) | 17,853 | (152,986) | |
Reduction (increase) in Pledged MSR liability | 11,872 | |||
Pledged MSR liability expense | 209,901 | 152,334 | 372,089 | |
NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Due to NRZ | 76,590 | 94,691 | ||
Servicing fees collected on behalf of NRZ | 304,248 | 383,685 | 577,015 | |
Less: Subservicing fee retained | 88,401 | 104,848 | 139,343 | |
Net servicing fees remitted to NRZ | 215,847 | 278,837 | 437,672 | |
Changes in fair value | (82,274) | 3,752 | (146,485) | |
Runoff, settlement and other | 81,813 | 113,016 | 207,862 | |
Other | 11,082 | 9,735 | 4,206 | |
Pledged MSR liability expense | 205,226 | 152,334 | 372,089 | |
MAV | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Servicing fees collected on behalf of NRZ | 14,173 | 0 | 0 | |
Less: Subservicing fee retained | 1,988 | |||
Net servicing fees remitted to NRZ | 12,186 | |||
Changes in fair value | 4,329 | |||
Runoff, settlement and other | 7,543 | |||
Other | 4,361 | |||
Pledged MSR liability expense | 4,675 | 0 | 0 | |
Early Payment Protection | 4,000 | |||
Advance Funding, Subservicing Fees and Reimbursable Expenses | NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Sales and transfers of MSRs - Due from NRZ | 3,781 | 4,611 | ||
Original Rights to MSRs Agreements | NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Other financing liabilities | 558,940 | 566,952 | ||
Changes in fair value | (82,274) | (36,065) | (222,697) | |
Runoff, settlement and other | 81,813 | 70,403 | 42,228 | |
2017 Agreements and New RMSR Agreements | NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Changes in fair value | 0 | (903) | (5,866) | |
Runoff, settlement and other | 0 | 35,121 | 101,003 | |
PHH MSR Agreements | NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Changes in fair value | 0 | 40,720 | 82,078 | |
Runoff, settlement and other | $ 0 | $ 7,492 | $ 64,631 |
MSR Transfers Not Qualifying _5
MSR Transfers Not Qualifying for Sale Accounting - Narrative (Details) $ in Thousands | Jan. 18, 2018USD ($) | Jun. 16, 2017 | Oct. 31, 2020USD ($)Loan | Sep. 30, 2020Loan | Sep. 30, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 01, 2021USD ($) |
Servicing Assets at Fair Value [Line Items] | ||||||||||
Proceeds from sale of mortgage servicing rights accounted for as financing | $ 247,038 | $ 0 | $ 0 | |||||||
UPB of loans serviced on behalf of NRZ | $ 55,800,000 | |||||||||
Initial term of subservicing agreement (years) | 3 years | |||||||||
Unpaid Principal Balance of Loans Related to Termination | $ 34,200,000 | $ 18,200,000 | $ 16,000,000 | |||||||
Number of Loans Deboarded from Servicing Portfolio | Loan | 136,500 | 133,718 | ||||||||
NRZ | ||||||||||
Servicing Assets at Fair Value [Line Items] | ||||||||||
Proceeds from sale of mortgage servicing rights accounted for as financing | $ 279,600 | $ 54,600 | ||||||||
Term of extended subservicing agreement following initial term | 3 months | |||||||||
NRZ | Mortgage Servicing Rights Title Retained | 2017 Agreements and New RMSR Agreements | ||||||||||
Servicing Assets at Fair Value [Line Items] | ||||||||||
UPB of loans serviced on behalf of NRZ | $ 12,100,000 |
MSR Transfers Not Qualifying _6
MSR Transfers Not Qualifying for Sale Accounting - UPB of Loans Serviced on behalf of NRZ (Details) $ in Millions | Dec. 31, 2021USD ($) |
Servicing Assets at Fair Value [Line Items] | |
UPB of loans serviced on behalf of NRZ | $ 55,800 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Government-insured loan claims - Forward | $ 90,603 | $ 103,058 |
Government-insured loan claims - Reverse | 39,895 | 32,887 |
Due from custodial accounts | 7,777 | 19,393 |
Subservicing Fee Receivables | 6,662 | 98 |
Reimbursable expenses | 6,056 | 4,970 |
Subservicing fees and reimbursable expenses - Due from NRZ | 3,781 | 4,611 |
Subservicing fees, reimbursable expenses and other - Due from MAV | 4,933 | 0 |
Other | 1,223 | 989 |
Servicing | 160,930 | 166,006 |
Income taxes receivable | 56,776 | 57,503 |
Due from MAV | 990 | 0 |
Other receivables | 3,760 | 3,200 |
Other receivables, gross | 222,456 | 226,709 |
Allowance for losses | (41,749) | (39,044) |
Receivables, total | $ 180,707 | $ 187,665 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Delinquent FHA or VA Insured Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for losses related to defaulted FHA or VA insured loans | $ 41.5 | $ 38.3 |
Receivables Schedule of Changes
Receivables Schedule of Changes in Allowance for Loan Losses (Details) - Government Insured Loans Claims - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 38,339 | $ 56,868 | $ 52,497 |
Provision | 14,440 | 18,145 | 29,034 |
Net charge-offs and other | (11,284) | (36,674) | (24,663) |
Ending balance | $ 41,495 | $ 38,339 | $ 56,868 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 83,834 | $ 108,702 |
Less accumulated depreciation and amortization | (70,160) | (91,777) |
Premises and equipment, net | 13,674 | 16,925 |
Computer Hardware | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,462 | 33,585 |
Operating Lease ROU Assets | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 22,900 | 26,930 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,766 | 21,272 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 17,002 | 16,371 |
Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,359 | 6,958 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,277 | 3,463 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 68 | $ 123 |
Investment in Equity Method I_3
Investment in Equity Method Investee (Narrative) (Details) - USD ($) $ in Millions | May 03, 2021 | Dec. 31, 2021 | Dec. 21, 2021 | Jun. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 4.90% | |||||
UIPB of loans subserviced | $ 33,000 | |||||
UPB of loans sub-serviced still on balance sheet | 24,000 | |||||
UPB of portfolio loans acquired | $ 75,600 | $ 46,800 | $ 31,700 | $ 14,600 | ||
MAV Canopy HoldCo I LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | $ 250 | |||||
Ownership percentage | 15.00% | 15.00% | ||||
Capital contribution | $ 5 | |||||
MAV Canopy HoldCo I LLC | Oaktree | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 85.00% | |||||
Forward Bulk Servicing Rights Purchase and Sale Agreement | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
UPB of MSRs sold | $ 4,300 | |||||
Bulk Mortgage Servicing Rights Purchase and Sale Agreements | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
UPB of MSRs sold | 20,700 | |||||
Revaluation gain on pledged MSR liability | 1.8 | |||||
Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Management fee expense | $ 0.5 |
Investment in Equity Method I_4
Investment in Equity Method Investee - Schedule of Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Capital distribution | $ (8,250) | $ 0 | $ 0 |
Earnings of equity method investee | 3,620 | 0 | $ 0 |
Investment in equity method investee | 23,297 | $ 0 | |
Level 3 | |||
Schedule of Equity Method Investments [Line Items] | |||
Capital contribution | 27,927 | ||
Capital distribution | (8,250) | ||
Earnings of equity method investee | 3,620 | ||
Investment in equity method investee | $ 23,297 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Contingent loan repurchase asset | $ 403,740 | $ 480,221 |
Derivatives, at fair value | 21,675 | 23,246 |
Prepaid expenses | 21,498 | 21,176 |
Prepaid representation, warranty and indemnification claims - Agency MSR sale | 15,173 | 15,173 |
Intangible assets, net | 14,335 | 600 |
Prepaid lender fees, net | 7,150 | 9,556 |
REO | 10,075 | 7,771 |
Deferred tax assets, net | 3,329 | 3,543 |
Security deposits | 1,174 | 2,222 |
Other | 9,101 | 7,975 |
Other assets ($21,886 and $25,476 carried at fair value) ($1,530 and $4,544 related to VIEs) | $ 507,250 | $ 571,483 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) $ in Millions | Oct. 01, 2021USD ($)EmployeesLoan | Dec. 31, 2021USD ($)Employees | Jun. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets | $ 13.7 | ||||
Accumulated amortization | $ 0.7 | ||||
Total number of employees | Employees | 5,700 | ||||
UPB of portfolio loans acquired | $ 75,600 | $ 46,800 | $ 31,700 | $ 14,600 | |
Intangible assets, gross | $ 14.5 | ||||
Reverse Mortgage Solutions Inc | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Total number of employees | Employees | 350 | ||||
Number Of Reverse Mortgage Loans Acquired Under SubServicing Agreement | Loan | 57,000 | ||||
UPB of portfolio loans acquired | $ 14,300 | ||||
Other Payments to Acquire Businesses | $ 14.3 |
Other Financing Liabilities - S
Other Financing Liabilities - Schedule of Financing Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | $ 804,963 | $ 576,722 |
Financing Liabilities | ||
Debt Instrument [Line Items] | ||
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | 797,085 | 566,952 |
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) | Financing Liabilities | ||
Debt Instrument [Line Items] | ||
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | 7,879 | 9,770 |
Original Rights to MSRs Agreements | Financing Liabilities | ||
Debt Instrument [Line Items] | ||
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | 558,940 | 566,952 |
PHH MSR Agreements | Financing Liabilities | ||
Debt Instrument [Line Items] | ||
Other financing liabilities, at fair value ($238,144 and $0 due to related party) ($7,879 and $9,770 related to VIEs) | $ 238,144 | $ 0 |
Borrowings - Schedule of Match
Borrowings - Schedule of Match Funded Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 17, 2020 | May 07, 2020 | May 06, 2020 |
Debt Instrument [Line Items] | |||||
Match funded liabilities | $ 512,297,000 | $ 581,288,000 | |||
Ocwen Master Advance Receivables Trust (OMART) | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 555,000,000 | ||||
Available borrowing capacity | 65,768,000 | ||||
Match funded liabilities | 489,231,000 | 564,396,000 | |||
Advance Receivables Backed Notes - Series 2015-VF5 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000,000 | ||||
Advance Receivables Backed Notes - Series 2015-VF5 | Ocwen Master Advance Receivables Trust (OMART) | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 80,000,000 | ||||
Available borrowing capacity | 65,768,000 | ||||
Match funded liabilities | 14,231,000 | 89,396,000 | |||
Advance Receivables Backed Notes, Series 2020-T1 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 80,000,000 | ||||
Advance Receivables Backed Notes, Series 2020-T1 | Ocwen Master Advance Receivables Trust (OMART) | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 475,000,000 | ||||
Available borrowing capacity | 0 | ||||
Match funded liabilities | 475,000,000 | 475,000,000 | |||
Advance Receivables Backed Notes, Series 2015-VF1 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 40,000,000 | $ 70,000,000 | |||
Advance Receivables Backed Notes, Series 2015-VF1 | Total Ocwen Freddie Advance Funding (OFAF) | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 40,000,000 | ||||
Available borrowing capacity | 16,934,000 | ||||
Match funded liabilities | 23,065,000 | $ 16,892,000 | |||
Match Funded Liabilities | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 595,000,000 | ||||
Available borrowing capacity | $ 82,702,000 | ||||
Weighted average interest rate (percentage) | 1.54% | 1.96% | |||
Match funded liabilities | $ 512,297,000 | $ 581,288,000 |
Borrowings - Schedule of Matc_2
Borrowings - Schedule of Match Funded Liabilities (Footnote) (Details) - USD ($) | Aug. 26, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | May 07, 2020 | May 06, 2020 |
Debt Instrument [Line Items] | ||||||
Prepaid lender fees, net | $ 7,150,000 | $ 9,556,000 | ||||
Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 80,000,000 | |||||
Advance Receivables Backed Notes, Series 2015-VF1 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 40,000,000 | $ 70,000,000 | ||||
Interest rate (percentage) | 1.00% | |||||
Match Funded Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 595,000,000 | |||||
Prepaid lender fees, net | $ 1,300,000 | $ 4,300,000 | ||||
Weighted average interest rate (percentage) | 1.54% | 1.96% | ||||
Minimum | Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (percentage) | 1.28% | |||||
Maximum | Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (percentage) | 5.42% | |||||
LIBOR | Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (percentage) | 2.00% | |||||
Ocwen Master Advance Receivables Trust (OMART) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 555,000,000 | |||||
Ocwen Master Advance Receivables Trust (OMART) | Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 475,000,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | May 03, 2021 | Mar. 04, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||||
Loss on extinguishment of debt | $ 7,100,000 | |||
Covenant liquidity requirement | $ 40,800,000 | |||
Senior Notes | 614,797,000 | $ 311,898,000 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt covenant, required consolidated tangible net worth | 275,000,000 | |||
Covenant liquidity requirement | $ 125,000,000 | |||
6.375% Senior Notes, Due 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 6.375% | |||
6.375% Senior Notes, Due 2021 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 100.00% | |||
8.375% Senior Secured Notes Due In 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 8.375% | |||
8.375% Senior Secured Notes Due In 2022 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 102.094% | |||
7.875% Senior Notes, Due 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 7.875% | |||
Redemption Price | 100.00% | |||
Unamortized discount | $ (2,100,000) | |||
Percentage of premium on outstanding principal amount | 0.010 | |||
Percentage of principal amount outstanding post redemption | 0.650 | |||
7.875% Senior Notes, Due 2026 | Level 3 | ||||
Line of Credit Facility [Line Items] | ||||
Senior Notes | 400,000,000 | |||
7.875% Senior Notes, Due 2026 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 35.00% | |||
7.875% Senior Notes, Due 2026 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 107.875% | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 12.00% | |||
Covenant liquidity requirement | $ 125,000,000 | |||
Senior Notes | 199,500,000 | 285,000,000 | ||
Unamortized discount | $ (10,500,000) | (24,500,000) | ||
Proceeds from Issuance of Debt | 68,000,000 | 158,500,000 | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Level 3 | ||||
Line of Credit Facility [Line Items] | ||||
Senior Notes | $ 85,500,000 | $ 199,500,000 | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Secured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Debt covenant, required consolidated tangible net worth | 275,000,000 | |||
Covenant liquidity requirement | $ 50,000,000 | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Payment in Kind | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 13.25% | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 7.00% |
Borrowings - Schedule of Mortga
Borrowings - Schedule of Mortgage Loan Warehouse Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 | ||
Line of Credit Facility [Line Items] | ||
Unamortized debt issuance costs | $ (400) | |
Other Secured Borrowings | ||
Line of Credit Facility [Line Items] | ||
Unamortized debt issuance costs | (898) | $ (894) |
Senior notes | $ 900,760 | 437,672 |
Weighted average interest rate (percentage) | 4.55% | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | $ 115,000 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 250,000 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 50,000 | |
Other Secured Borrowings | Participation Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 254,814 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement Two | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 116,187 | |
Available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 7,977 | |
Available borrowing capacity | 0 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Long-term debt, gross | 459,344 | |
Other Secured Borrowings | Loan and Security Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 13,166 | |
Other Secured Borrowings | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 41,663 | 68,313 |
Other Secured Borrowings | OASIS Series 2014-1 | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 39,529 | 47,476 |
Mortgage Loan Warehouse Facilities | ||
Line of Credit Facility [Line Items] | ||
Unamortized debt issuance costs | $ (1,200) | $ (2,000) |
Weighted average interest rate (percentage) | 2.61% | 3.33% |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | $ 793,978 | |
Available borrowing capacity | 240,289 | |
Long-term debt, gross | 1,085,076 | $ 451,713 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 50,563 | |
Long-term debt, gross | 109,437 | 195,773 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 39,118 | |
Long-term debt, gross | 160,882 | 80,081 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 0 | |
Long-term debt, gross | 0 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Participation Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 0 | |
Long-term debt, gross | 45,186 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 98,234 | |
Long-term debt, gross | 1,766 | 63,281 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 1,000 | |
Long-term debt, gross | 0 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement Two | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 38,208 | |
Long-term debt, gross | 11,792 | 11,715 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 87,813 | 73,134 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 192,023 | 27,729 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 459,344 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Loan and Security Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 16,834 | $ 0 |
Borrowings - Schedule of Mort_2
Borrowings - Schedule of Mortgage Loan Warehouse Facilities (Footnote) (Details) - USD ($) | Dec. 07, 2021 | Dec. 31, 2021 | Jan. 27, 2022 | Jan. 05, 2022 | Dec. 21, 2021 | Nov. 08, 2021 | Oct. 26, 2021 | Sep. 30, 2021 | Sep. 27, 2021 | Sep. 01, 2021 | Jul. 29, 2021 | Jul. 23, 2021 | Jul. 13, 2021 | Jun. 25, 2021 | Jun. 23, 2021 | Jun. 02, 2021 | May 31, 2021 | May 28, 2021 | May 17, 2021 | Apr. 29, 2021 | Apr. 15, 2021 | Apr. 12, 2021 | Mar. 31, 2021 | Mar. 30, 2021 | Feb. 28, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | May 06, 2020 |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
1-Month LIBOR | 3.25% | |||||||||||||||||||||||||||
Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ (898,000) | $ (894,000) | ||||||||||||||||||||||||||
SSTL | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | (4,867,000) | |||||||||||||||||||||||||||
SSTL | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | 0 | (4,867,000) | ||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 115,000,000 | |||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 250,000,000 | |||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 50,000,000 | |||||||||||||||||||||||||||
Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Borrowings available on committed basis | $ 100,000,000 | $ 90,000,000 | ||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Participation Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 150,000,000 | 120,000,000 | ||||||||||||||||||||||||||
Participation Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 254,814,000 | |||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Mortgage Warehouse Agreement Two | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Loan and Security Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 13,166,000 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Ginnie Mae Mortgage Servicing Rights Financing Facility | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 18,306,000 | |||||||||||||||||||||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | (400,000) | |||||||||||||||||||||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Debt instrument, face amount | 100,000,000 | |||||||||||||||||||||||||||
OASIS Series 2014-1 | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Mortgage Warehouse Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 116,187,000 | |||||||||||||||||||||||||||
Mortgage Warehouse Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 7,977,000 | |||||||||||||||||||||||||||
Agency Mortgage Servicing Rights Financing Facility | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | (500,000) | |||||||||||||||||||||||||||
Agency Mortgage Servicing Rights Financing Facility | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 32,477,000 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||||||||||||||||||||
Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ (14,269,000) | (968,000) | ||||||||||||||||||||||||||
Secured Debt | Master Repurchase Agreement | Trust Certificate One [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 225,000,000 | $ 75,000,000 | 50,000,000 | |||||||||||||||||||||||||
Secured Debt | Master Repurchase Agreement | Trust Certificate Two [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 25,000,000 | $ 50,000,000 | ||||||||||||||||||||||||
Secured Debt | Master Repurchase Agreement | Trust Certificate Two [Member] | Subsequent Event | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||||||||||||||||||||
Secured Debt | Loan and Security Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Borrowings available on committed basis | $ 30,000,000 | |||||||||||||||||||||||||||
Secured Debt | Ginnie Mae Mortgage Servicing Rights Financing Facility | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate (percentage) | 0.50% | |||||||||||||||||||||||||||
Maximum borrowing capacity | $ 150,000,000 | $ 125,000,000 | ||||||||||||||||||||||||||
Secured Debt | OASIS Series 2014-1 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate (percentage) | 0.21% | |||||||||||||||||||||||||||
Secured Debt | Mortgage Warehouse Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | $ 150,000,000 | $ 204,000,000 | $ 175,000,000 | $ 150,000,000 | $ 100,000,000 | $ 150,000,000 | 100,000,000 | |||||||||||||||||||||
Secured Debt | Mortgage Warehouse Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | $ 150,000,000 | $ 100,000,000 | ||||||||||||||||||||||||||
Secured Debt | Mortgage Warehouse Agreement | Subsequent Event | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||||||||||||||||||||
Secured Debt | Agency Mortgage Servicing Rights Financing Facility | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 425,000,000 | $ 250,000,000 | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Unamortized debt issuance costs | (1,200,000) | $ (2,000,000) | ||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 240,289,000 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | 793,978,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 50,563,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 39,118,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 98,234,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Participation Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Master Repurchase Agreement | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 1,000,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Mortgage Warehouse Agreement Two | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 38,208,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | 0 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Maximum borrowing capacity | 275,000,000 | |||||||||||||||||||||||||||
Borrowings available on committed basis | 160,000,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | $ 450,000,000 | 450,000,000 | ||||||||||||||||||||||||||
Interest rate (percentage) | 1.25% | |||||||||||||||||||||||||||
Borrowings available on committed basis | $ 200,000,000 | |||||||||||||||||||||||||||
Uncommitted available borrowing capacity | $ 250,000,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 0.25% | |||||||||||||||||||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Participation Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Available borrowing capacity | $ 150,000,000 | $ 300,000,000 | ||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Mortgage Warehouse Agreement Two | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 5.25% | |||||||||||||||||||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Loan and Security Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 4.50% | |||||||||||||||||||||||||||
Mortgage Loan Warehouse Facilities | Secured Debt | Mortgage Warehouse Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 2.875% | 0.375% | ||||||||||||||||||||||||||
LIBOR | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
1-Month LIBOR | 0.10% | 0.14% | ||||||||||||||||||||||||||
SOFR | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
1-Month LIBOR | 0.05% | 0.07% | ||||||||||||||||||||||||||
New Originations | Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 3.00% | |||||||||||||||||||||||||||
Ginnie Mae Modifications | Master Repurchase Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 3.25% | |||||||||||||||||||||||||||
Ginnie Mae Modifications | Participation Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Interest rate at floor (percentage) | 3.00% | |||||||||||||||||||||||||||
Participation Interest | Secured Debt | Mortgage Warehouse Agreement | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Uncommitted available borrowing capacity | $ 50,000,000 |
Borrowings - Schedule of MSR Fi
Borrowings - Schedule of MSR Financing Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Agency Mortgage Servicing Rights Financing Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (500) | |
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (400) | |
Agency MSR financing facility - revolving loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (3,300) | |
Agency MSR financing facility - term loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4,700) | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior notes | 900,760 | $ 437,672 |
Unamortized debt issuance costs | $ (898) | (894) |
Weighted average interest rate (percentage) | 4.55% | |
Secured Debt | Agency Mortgage Servicing Rights Financing Facility | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | $ 0 | |
Available borrowing capacity | 32,477 | |
Short-term debt | 317,523 | 210,755 |
Secured Debt | Ginnie Mae Mortgage Servicing Rights Financing Facility | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 18,306 | |
Available borrowing capacity | 0 | |
Senior notes | 131,694 | 112,022 |
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 41,663 | 68,313 |
Secured Debt | OASIS Series 2014-1 | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 39,529 | 47,476 |
Secured Debt | Agency MSR financing facility - revolving loan | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 7,929 | |
Senior notes | 277,071 | 0 |
Secured Debt | Agency MSR financing facility - term loan | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | $ 94,178 | $ 0 |
MSR Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (percentage) | 3.71% | 4.82% |
Total Servicing Lines Of Credit | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | $ 18,306 | |
Available borrowing capacity | 40,406 | |
Short-term debt | $ 901,658 | $ 438,566 |
Borrowings - Schedule of MSR _2
Borrowings - Schedule of MSR Financing Facilities (Footnote) (Details) - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2021 | Oct. 26, 2021 | Sep. 30, 2021 | Jun. 28, 2021 | Jun. 02, 2021 | May 31, 2021 | Apr. 15, 2021 | Dec. 31, 2020 | May 06, 2020 | |
Debt Instrument [Line Items] | |||||||||
1-Month LIBOR | 3.25% | ||||||||
Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | $ 14,269,000 | $ 968,000 | |||||||
Agency Mortgage Servicing Rights Financing Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | $ 500,000 | ||||||||
Agency Mortgage Servicing Rights Financing Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 425,000,000 | $ 250,000,000 | $ 350,000,000 | $ 350,000,000 | |||||
Ginnie Mae Mortgage Servicing Rights Financing Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 150,000,000 | $ 125,000,000 | |||||||
Interest rate (percentage) | 0.50% | ||||||||
OASIS Series 2014-1 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate (percentage) | 0.21% | ||||||||
Agency MSR financing facility - term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | $ 4,700,000 | ||||||||
Agency MSR financing facility - term loan | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 135,000,000 | ||||||||
Agency MSR financing facility - revolving loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | 3,300,000 | ||||||||
Agency MSR financing facility - revolving loan | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 285,000,000 | ||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | $ 400,000 | ||||||||
LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
1-Month LIBOR | 0.10% | 0.14% | |||||||
1-Year Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
1-Month LIBOR | 0.19% | 0.19% | |||||||
MSR Financing Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Current borrowing capacity | $ 500,000 | ||||||||
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate (percentage) | 4.25% | ||||||||
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate (percentage) | 5.75% | ||||||||
Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance costs | $ 898,000 | $ 894,000 | |||||||
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate (percentage) | 5.07% |
Borrowings - Senior Secured Ter
Borrowings - Senior Secured Term Loan (Details) $ in Thousands | Mar. 04, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (898) | $ (894) | |
Senior notes | 900,760 | 437,672 | |
SSTL | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (4,867) | ||
SSTL | Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 185,000 | |
Unamortized debt issuance costs | 0 | (4,867) | |
Discount | 0 | (357) | |
Senior notes | $ 0 | $ 179,776 | |
Repayment of SSTL | $ 185,000 | ||
Loss on debt extinguishment | $ 8,400 | ||
Percentage of prepayment premium | 0.02 | ||
Redemption premium | $ 3,700 |
Borrowings - Schedule of Senior
Borrowings - Schedule of Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 04, 2021 | |
7.875% Senior Notes, Due 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 7.875% | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 12.00% | ||
6.375% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 6.375% | ||
8.375% Senior Secured Notes Due In 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 8.375% | ||
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Purchase accounting fair value adjustments | $ 0 | $ (186) | |
Senior Unsecured Notes | 6.375% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (percentage) | 6.375% | ||
Long-term debt, gross | $ 0 | 21,543 | |
Other Secured Borrowings | |||
Debt Instrument [Line Items] | |||
Discount | (55,934) | 0 | |
Unamortized debt issuance costs | (14,269) | (968) | |
Other Secured Borrowings | 7.875% Senior Notes, Due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 400,000 | 0 | |
Discount | (1,758) | 0 | |
Unamortized debt issuance costs | (5,687) | (968) | |
Other Secured Borrowings | 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 285,000 | 0 | |
Discount | (54,176) | 0 | |
Unamortized debt issuance costs | $ (8,582) | 0 | |
Other Secured Borrowings | 8.375% Senior Secured Notes Due In 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (percentage) | 8.375% | ||
Long-term debt, gross | $ 0 | 291,509 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 685,000 | 313,052 | |
Senior notes | $ 614,797 | $ 311,898 |
Borrowings - Schedule of Seni_2
Borrowings - Schedule of Senior Notes (Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 04, 2021 | |
Debt Instrument [Line Items] | ||||
Gain on repurchase of debt | $ (15,458) | $ 0 | $ 5,099 | |
8.375% Senior Secured Notes Due In 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 8.375% |
Borrowings - Schedule of Redemp
Borrowings - Schedule of Redemption Prices (Details) | 12 Months Ended |
Dec. 31, 2021 | |
2023 | |
Debt Instrument [Line Items] | |
Redemption Price | 103.938% |
2024 | |
Debt Instrument [Line Items] | |
Redemption Price | 101.969% |
2025 and thereafter | |
Debt Instrument [Line Items] | |
Redemption Price | 100.00% |
Borrowings - Schedule of Assets
Borrowings - Schedule of Assets Held as Collateral Related to Secured Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | May 03, 2021 | Mar. 04, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Cash | $ 192,792 | $ 284,802 | |||
Restricted cash | 70,654 | 72,463 | |||
Loans held for sale | 928,527 | 387,836 | |||
Loans held for investment - unsecuritized | 7,207,641 | 7,006,897 | |||
MSRs | 2,250,147 | 1,294,817 | |||
Advances, net | 772,433 | 828,239 | |||
Receivables, net | 180,707 | 187,665 | |||
REO | 10,075 | 7,771 | |||
Balance | 12,147,123 | 10,651,127 | $ 10,406,199 | ||
Senior Notes | 614,797 | $ 311,898 | |||
7.875% Senior Notes, Due 2026 | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 400,000 | ||||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | 285,000 | 199,500 | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 85,500 | $ 199,500 | |||
Senior Lien | |||||
Debt Instrument [Line Items] | |||||
Cash | 192,792 | ||||
Restricted cash | 70,654 | ||||
Loans held for sale | 928,527 | ||||
Loans held for investment - securitized | 6,979,100 | ||||
Loans held for investment - unsecuritized | 220,662 | ||||
MSRs | 1,422,546 | ||||
Advances, net | 772,433 | ||||
Receivables, net | 180,707 | ||||
REO | 10,075 | ||||
Balance | 10,777,497 | ||||
Senior Lien | Pledged Assets | |||||
Debt Instrument [Line Items] | |||||
Cash | 0 | ||||
Restricted cash | 70,654 | ||||
Loans held for sale | 887,602 | ||||
Loans held for investment - securitized | 6,979,100 | ||||
Loans held for investment - unsecuritized | 197,020 | ||||
MSRs | 1,407,949 | ||||
Advances, net | 622,131 | ||||
Receivables, net | 33,672 | ||||
REO | 6,624 | ||||
Balance | 10,204,753 | ||||
Senior Lien | Collateralized Borrowings | |||||
Debt Instrument [Line Items] | |||||
Cash | 0 | ||||
Restricted cash | 0 | ||||
Loans held for sale | 870,411 | ||||
Loans held for investment - securitized | 6,885,022 | ||||
Loans held for investment - unsecuritized | 176,807 | ||||
MSRs | 815,584 | ||||
Advances, net | 598,370 | ||||
Receivables, net | 32,670 | ||||
REO | 5,188 | ||||
Balance | 9,384,052 | ||||
Senior Lien | Unencumbered Assets | |||||
Debt Instrument [Line Items] | |||||
Cash | 192,792 | ||||
Restricted cash | 0 | ||||
Loans held for sale | 40,924 | ||||
Loans held for investment - securitized | 0 | ||||
Loans held for investment - unsecuritized | 23,642 | ||||
MSRs | 14,597 | ||||
Advances, net | 150,302 | ||||
Receivables, net | 147,035 | ||||
REO | 3,451 | ||||
Balance | $ 572,744 |
Borrowings - Schedule of Second
Borrowings - Schedule of Second Lien Priority on Specified Assets Carried on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Advances, net (amounts related to VIEs of $587,059 and $651,576) | $ 772,433 | $ 828,239 | |
Mortgage servicing rights, at fair value | 2,250,147 | 1,294,817 | |
Cash and cash equivalents | 192,792 | 284,802 | |
Balance | 12,147,123 | $ 10,651,127 | $ 10,406,199 |
Second Lien | |||
Debt Instrument [Line Items] | |||
Advances, net (amounts related to VIEs of $587,059 and $651,576) | 179,228 | ||
Deferred Servicing Income | 24,152 | ||
Mortgage servicing rights, at fair value | 730,720 | ||
Cash and cash equivalents | 65,468 | ||
Advance Facility Reserve | 7,687 | ||
Specified Loan Value | 101,953 | ||
Specified Residual Value | 40,763 | ||
Balance | $ 1,149,969 |
Borrowings - Schedule of Aggreg
Borrowings - Schedule of Aggregate Long-term Borrowings (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 2,088,253 |
2023 | 94,178 |
2024 | 0 |
2025 | 0 |
2026 | 677,071 |
Thereafter | 324,529 |
Long-term debt, gross | 3,184,031 |
Fair value | 3,145,817 |
Match Funded Liabilities | |
Debt Instrument [Line Items] | |
2022 | 512,297 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Long-term debt, gross | 512,297 |
Fair value | 511,994 |
Mortgage Loan Warehouse Facilities | |
Debt Instrument [Line Items] | |
2022 | 1,085,076 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Long-term debt, gross | 1,085,076 |
Fair value | 1,085,076 |
MSR Financing Facilities | |
Debt Instrument [Line Items] | |
2022 | 490,880 |
2023 | 94,178 |
2024 | 0 |
2025 | 0 |
2026 | 277,071 |
Thereafter | 39,529 |
Long-term debt, gross | 901,658 |
Fair value | 873,820 |
Senior Notes | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 400,000 |
Thereafter | 285,000 |
Long-term debt, gross | 685,000 |
Fair value | $ 674,927 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Contingent loan repurchase liability | $ 403,740 | $ 480,221 |
Other accrued expenses | 104,931 | 87,898 |
Due to NRZ - Advance collections and servicing fees | 76,590 | 94,691 |
Liability for indemnification obligations | 51,243 | 41,920 |
Checks held for escheat | 44,866 | 35,654 |
Accrued legal fees and settlements | 43,990 | 38,932 |
MSR purchase price holdback | 32,620 | 20,923 |
Servicing-related obligations | 32,366 | 35,237 |
Lease liability | 16,842 | 27,393 |
Liability for uncertain tax positions | 14,730 | 16,188 |
Accrued interest payable | 11,998 | 4,915 |
Liability for unfunded India gratuity plan | 6,263 | 6,051 |
Liability for unfunded pension obligation | 4,183 | 12,662 |
Derivatives, at fair value | 3,080 | 4,638 |
Due to Related Parties, Current | 2,134 | 0 |
Other | 17,938 | 16,652 |
Total other liabilities | $ 867,514 | $ 923,975 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total other liabilities | Total other liabilities |
Other Liabilities Schedule of C
Other Liabilities Schedule of Changes in Liability for Legal Fees and Settlements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |||
Beginning balance | $ 38,932 | $ 30,663 | $ 62,763 |
Accrual for probable losses | 9,399 | 26,468 | 3,011 |
Payments | (5,533) | (14,826) | (30,356) |
Net increase (decrease) in accrued legal fees | 1,192 | (3,433) | (4,884) |
Other | 0 | 60 | 129 |
Ending balance | $ 43,990 | $ 38,932 | $ 30,663 |
Stockholders Equity - Narrative
Stockholders Equity - Narrative (Details) $ / shares in Units, $ in Thousands | May 03, 2021USD ($)$ / sharesshares | Mar. 04, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Aug. 13, 2020shares | Aug. 12, 2020shares | Feb. 03, 2020USD ($) |
Equity [Abstract] | ||||||||
Stock repurchase program, authorized aggregate amount | $ | $ 5,000 | |||||||
Repurchase of common stock, shares | shares | 377,484 | |||||||
Repurchase of common stock | $ | $ 4,500 | |||||||
Average price paid per share | $ / shares | $ 11.90 | |||||||
Payments for Commissions | $ | $ 100 | |||||||
Additional shares issued on reverse stock split rounding | shares | 4,692 | |||||||
Common stock outstanding before stock split | shares | 130,013,696 | |||||||
Common stock, shares, outstanding | shares | 9,208,312 | 8,687,750 | 8,672,272 | |||||
Common stock, shares authorized | shares | 200,000,000 | |||||||
Common stock, shares authorized | shares | 13,333,333 | 13,333,333 | ||||||
Common stock, par value per share | $ / shares | $ 0.01 | $ 0.01 | ||||||
Warrants to purchase, common stock shares | shares | 261,248 | 1,184,768 | ||||||
Percentage ownership upon exercise of warrants | 0.03 | 0.12 | ||||||
Warrants exercise price | $ / shares | $ 24.31 | $ 26.82 | ||||||
Fair value of warrants issued | $ | $ 16,500 | |||||||
Debt issuance cost in connection with warrants | $ | $ 500 | $ 800 | ||||||
Issuance of common stock (in shares) | shares | 426,705 | |||||||
Ownership percentage | 4.90% | |||||||
Sale of stock, price per share | $ / shares | $ 23.15 | |||||||
Allocated fair value of common stock | $ | $ 12,600 | |||||||
Allocated fair value of warrants | $ | 4,300 | |||||||
Issuance of common stock | $ | $ 9,900 | $ 12,169 |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Accumulated Other Comprehensive Loss (AOCL), Net of Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | $ (2,366) | $ (9,095) |
Unfunded pension plan obligation, net | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | 1,880 | 8,409 |
Unrealized losses on cash flow hedges, net | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | 559 | 674 |
Other | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | $ (72) | $ 12 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,764,805 | $ 1,254,905 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 21,675 | 23,246 |
Derivative Liability, Notional Amount | 1,645,000 | 420,000 |
Derivative Liability, Fair Value, Gross Liability | (3,080) | (4,638) |
Gain (loss) on derivatives, net | (13,339) | 35,270 |
Forward Sales Of Reverse Loans | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 175,000 | 30,000 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 364 | 34 |
Derivative Liability, Notional Amount | 0 | 20,000 |
Derivative Liability, Fair Value, Gross Liability | 0 | (84) |
Gain (loss) on derivatives, net | 414 | (29) |
Forward loans IRLCs | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,021,978 | 619,713 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 16,074 | 22,224 |
Gain (loss) on derivatives, net | (6,150) | 17,479 |
TBA Forward Pipelines Trades | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 587,000 | 0 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 946 | 0 |
Derivative Liability, Notional Amount | 645,000 | 0 |
Derivative Liability, Fair Value, Gross Liability | 898 | 0 |
Gain (loss) on derivatives, net | 1,483 | 0 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 792,500 | 593,500 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 1,734 | 504 |
Gain (loss) on derivatives, net | 0 | (10,140) |
Option Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 125,000 | 0 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 547 | 0 |
Derivative Liability, Notional Amount | 450,000 | 0 |
Derivative Liability, Fair Value, Gross Liability | 824 | 0 |
TBA forward MBS trades | ||
Fair value of derivative assets (liabilities) at: | ||
Derivative Liability, Notional Amount | 550,000 | 400,000 |
Derivative Liability, Fair Value, Gross Liability | (287) | (4,554) |
Interest Rate Swap Futures And TBA Forward MBS Trades | ||
Fair value of derivative assets (liabilities) at: | ||
Gain (loss) on derivatives, net | (9,542) | 27,538 |
Others | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 0 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 0 | 2 |
Derivative Liability, Notional Amount | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | (1,070) | 0 |
Gain (loss) on derivatives, net | (2) | 73 |
Other | ||
Fair value of derivative assets (liabilities) at: | ||
Gain (loss) on derivatives, net | (1,070) | 0 |
Reverse Loans IRLCs | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 63,327 | 11,692 |
Fair value of derivative assets (liabilities) at: | ||
Derivatives, at fair value | 2,011 | 482 |
Gain (loss) on derivatives, net | $ 1,529 | $ 349 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Foreign currency re-measurement exchange gains (losses) | $ 0.3 | $ (1) | $ (0.2) |
Interest Income - Schedule of C
Interest Income - Schedule of Components of Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Loans held for sale | $ 25,889 | $ 13,929 | $ 14,669 |
Interest earning cash deposits and other | 485 | 2,070 | 2,435 |
Interest and Other Income | $ 26,374 | $ 15,999 | $ 17,104 |
Interest Expense - Schedule of
Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt securities: | |||
Interest expense | $ 143,968 | $ 109,367 | $ 114,129 |
Amortization of debt discount and issuance costs | 7,792 | 6,992 | 4,512 |
Other Secured Borrowings | |||
Debt securities: | |||
Interest expense | 31,656 | 0 | 0 |
Amortization of debt discount and issuance costs | 5,000 | ||
Senior Notes | |||
Debt securities: | |||
Interest expense | 31,914 | 26,634 | 31,804 |
Mortgage Loan Warehouse Facilities | |||
Debt securities: | |||
Interest expense | 30,638 | 15,239 | 11,100 |
MSR Financing Facilities | |||
Debt securities: | |||
Interest expense | 26,036 | 15,885 | 8,112 |
Match Funded Liabilities | |||
Debt securities: | |||
Interest expense | 14,238 | 24,122 | 26,902 |
SSTL | |||
Debt securities: | |||
Interest expense | 2,956 | 20,465 | 27,066 |
Other | |||
Debt securities: | |||
Interest expense | $ 6,530 | $ 7,022 | $ 9,145 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | $ (22,449) | $ (65,506) | $ 15,634 |
Proceeds from Income Tax Refunds | 24,600 | 51,400 | |
Income taxes receivable | 56,776 | 57,503 | |
Deferred tax assets, gross | 175,400 | ||
Valuation allowance | 172,109 | 183,649 | |
Net operating loss carryforwards and credits - state and local | 70,680 | 67,293 | |
Total interest and penalties | 100 | 1,600 | $ 2,700 |
Accruals for interest and penalties | 3,400 | ||
Liability for selected tax items | 11,500 | 20,600 | |
Reasonably possible decrease of unrecognized tax benefits | 10,100 | ||
U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | 62,600 | ||
Deferred tax assets, gross | 171,100 | ||
Valuation allowance | 171,100 | 182,700 | |
U.S. NOL carryforwards | 256,900 | ||
Net operating loss carryforwards and credits - state and local | 70,700 | ||
USVI | |||
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | 1,400 | ||
Income taxes receivable | 12,900 | ||
Valuation allowance | $ 400 | ||
Expected carry back of net operating loss | 334,500 | ||
US and USVI | |||
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | 64,000 | ||
India and Philippines Subsidiary | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax liability | 600 | ||
CARES Act Claims | |||
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | (12,600) | ||
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward | U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 53,900 | ||
Capital Loss Carryforward | U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Capital loss carryforwards | $ 7,500 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (13,901) | $ (118,043) | $ (93,487) |
Foreign | 9,530 | 12,359 | (33,004) |
Income (loss) before income taxes | $ (4,371) | $ (105,684) | $ (126,491) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ (20,134) | $ (67,080) | $ 873 |
State | (1,310) | 348 | 4,460 |
Foreign | 1,554 | 2,600 | 7,181 |
Current Income tax expense (benefit) | (19,890) | (64,132) | 12,514 |
Deferred: | |||
Federal | (2,265) | (26,029) | (40,429) |
State | (31) | (2,115) | (914) |
Foreign | 167 | (1,445) | 11,993 |
Provision for (reversal of) valuation allowance on deferred tax assets | 2,344 | 28,215 | 32,470 |
Deferred income tax expense (benefit) | 215 | (1,374) | 3,120 |
Other | (2,774) | 0 | 0 |
Total | $ (22,449) | $ (65,506) | $ 15,634 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense (benefit) at statutory rate | $ (918) | $ (22,194) | $ (26,563) |
Differences between expected and actual income tax expense: | |||
CARES Act | (12,631) | (79,049) | 0 |
Provision for (reversal of) valuation allowance on deferred tax assets | 2,344 | 28,214 | 32,470 |
Provision for (reversal of) liability for uncertain tax positions | (8,700) | 13,062 | 4,198 |
Interest on refund claims due from tax authorities | (2,774) | 0 | 0 |
Other provision to return differences | (954) | (3,347) | 1,242 |
Foreign tax differential including effectively connected income | 1,401 | (2,511) | 15,979 |
State tax, after Federal tax benefit | 212 | (1,396) | (619) |
Benefit of state NOL carryback claims and amended return filings | (1,803) | 0 | 0 |
Executive compensation disallowance | 1,384 | 594 | 1,344 |
Excess tax benefits from share-based compensation | (518) | 424 | 381 |
Other permanent differences | 150 | 382 | 66 |
Foreign tax credit (generation) utilization | (49) | (13) | |
Foreign tax credit (generation) utilization | 263 | ||
Revaluation of deferred tax assets related to legal entity mergers | (5) | (2) | (25,509) |
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion | 175 | 182 | 11,859 |
U.S. Tax Reform - BEAT Tax | 0 | 0 | (555) |
Bargain purchase gain disallowance | 0 | 0 | 80 |
Other | 237 | 148 | 998 |
Total | $ (22,449) | $ (65,506) | $ 15,634 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Reconciliation (Footnote) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase decrease in income tax expense as result of effectively connected income | $ 2.6 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards - federal and foreign | $ 54,569 | $ 40,557 |
Net operating loss carryforwards and credits - state and local | 70,680 | 67,293 |
Interest expense disallowance | 39,277 | 23,112 |
Reserve for servicing exposure | 6,752 | 10,273 |
Accrued legal settlements | 9,905 | 9,200 |
Partnership losses | 8,553 | 7,316 |
Stock-based compensation expense | 9,857 | 6,486 |
Accrued incentive compensation | 6,698 | 6,240 |
Accrued other liabilities | 5,900 | 5,722 |
Lease liabilities | 2,549 | 4,943 |
Intangible asset amortization | 4,964 | 4,541 |
Foreign deferred assets | 3,763 | 3,731 |
Tax residuals and deferred income on tax residuals | 1,460 | 2,968 |
Bad debt and allowance for loan losses | 4,014 | 0 |
Other | 5,133 | 6,035 |
Deferred tax assets, gross | 234,074 | 198,417 |
Deferred tax liabilities | ||
Mortgage servicing rights amortization | 57,324 | 8,123 |
Bad debt and allowance for loan losses | 0 | 1,951 |
Other | 1,312 | 1,151 |
Deferred tax liabilities, gross | 58,636 | 11,225 |
Deferred tax assets (liability), gross | 175,438 | 187,192 |
Valuation allowance | (172,109) | (183,649) |
Deferred tax assets, net | $ 3,329 | $ 3,543 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 20,638 | $ 10,589 | $ 9,622 |
Additions for tax positions of current year | 0 | 0 | 207 |
Additions for tax positions of prior years | 178 | 15,242 | 3,110 |
Reductions for tax positions of prior years | (6,361) | (219) | 0 |
Reductions for settlements | (555) | (3,067) | (1,293) |
Lapses in statute of limitations | (2,365) | (1,907) | (1,057) |
Ending balance (1) | $ 11,535 | $ 20,638 | $ 10,589 |
Income Taxes - Schedule of Un_2
Income Taxes - Schedule of Unrecognized Tax Benefits (Footnote) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 11,535 | $ 20,638 | $ 10,589 | $ 9,622 |
Income Tax Receivables | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | 200 | 7,800 | ||
Other Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 11,300 | $ 12,800 |
Basic and Diluted Earnings (L_3
Basic and Diluted Earnings (Loss) per Share - Schedule of Reconciliation of the Calculation of Basic EPS to Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic loss per share | |||
Net income (loss) | $ 18,078 | $ (40,178) | $ (142,125) |
Basic (in shares) | 9,021,975 | 8,748,725 | 8,962,961 |
Basic | $ 2 | $ (4.59) | $ (15.86) |
Contingent issuance of common stock | 38,685 | 0 | 0 |
Common stock warrants | 152,208 | 0 | 0 |
Stock option awards | 60 | 0 | 0 |
Common stock awards | 169,539 | 0 | 0 |
Diluted (in shares) | 9,382,467 | 8,748,725 | 8,962,961 |
Diluted | $ 1.93 | $ (4.59) | $ (15.86) |
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | |||
Anti-dilutive securities (in shares) | 143,593 | 199,079 | 211,175 |
Market-based | |||
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | |||
Anti-dilutive securities (in shares) | 87,509 | 125,395 | 52,480 |
Employee Compensation and Ben_3
Employee Compensation and Benefit Plans - Narrative (Details) - USD ($) | Sep. 10, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employee contributions | 50.00% | |||
Provident fund contribution percentage on portion of employees salary | 12.00% | |||
Contributions | $ 5,100,000 | $ 5,200,000 | $ 5,900,000 | |
Future expected benefit payments | 2,900,000 | |||
Compensation expense recognized | $ 23,600,000 | 25,700,000 | 16,600,000 | |
Common stock remaining available for future issuance (in shares) | 494,585 | |||
Contractual term of all options granted (years) | 10 years | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer match limit, percent of employee compensation | 6.00% | |||
Matching compensation per pay period (usd per pay period) | $ 8,700 | |||
Stock Options | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized compensation costs related to non-vested stock options | $ 2,900 | |||
Weighted average remaining requisite service period | 2 months 1 day | |||
Restricted Stock Units | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average remaining requisite service period | 2 years 7 days | |||
Unvested awards, cost not yet recognized | $ 6,500,000 | |||
Liability Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average remaining requisite service period | 1 year | |||
Unvested awards, cost not yet recognized | $ 15,500,000 | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | (900,000) | (200,000) | (2,000,000) | |
Future expected benefit payments | 2,900,000 | |||
Future expected benefit payments | 2,800,000 | |||
Future expected benefit payments | 3,000,000 | |||
Future expected benefit payments | 15,600,000 | |||
Contributions to defined benefit pension plans | 1,000,000 | 2,100,000 | 800,000 | |
Fair value of plan assets | 50,078,000 | 46,303,000 | ||
Benefit obligation | 54,262,000 | 58,965,000 | ||
Unfunded status recognized in Other liabilities | (4,183,000) | (12,662,000) | ||
Gratuity Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future expected benefit payments | 1,100,000 | |||
Future expected benefit payments | 1,000,000 | |||
Future expected benefit payments | 900,000 | |||
Future expected benefit payments | 800,000 | |||
Future expected benefit payments | 700,000 | |||
Future expected benefit payments | 2,200,000 | |||
Fair value of plan assets | 42,000 | 40,000 | ||
Benefit obligation | 6,305,000 | 6,091,000 | ||
Unfunded status recognized in Other liabilities | (6,263,000) | (6,051,000) | ||
Plan assets, benefits paid | $ 800,000 | $ 800,000 | $ 900,000 | |
PHH Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation discount rate | 2.75% | 2.25% | ||
Benefit obligation, period increase (decrease) | $ 3,200,000 | |||
Berkeley Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation discount rate | 2.80% | 2.59% | ||
Long-Term Incentive (LTI) Program | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 233,056 | 601,787 | 251,076 | |
Grants in period, performance-based (percentage) | 50.00% | 50.00% | 74.00% | |
Grants in period, time-based (percentage) | 50.00% | 26.00% | ||
Long-Term Incentive (LTI) Program | Performance-Based Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting percentage of awards (percentage) | 100.00% | |||
Chief Executive Officer | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 115,173 | 150,000 | 75,377 | |
Chief Executive Officer | Long-Term Incentive (LTI) Program | Cash-Settled Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 232,620 | 543,896 | 251,076 | |
Chief Executive Officer | Long-Term Incentive (LTI) Program | Equity-Settled Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 57,891 | 115,173 | 150,000 | 75,377 |
Chief Executive Officer | Long-Term Incentive (LTI) Program | Liability Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 465,026 | 693,896 | 326,453 | |
Chief Executive Officer | Long-Term Incentive (LTI) Program | Hybrid Awards | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Granted (in shares) | 117,233 |
Employee Compensation and Ben_4
Employee Compensation and Benefit Plans - Schedule of Change in Benefit Obligation, Plan Assets and Funded Status for Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation | $ 54,262 | $ 58,965 |
Fair value of plan assets | 50,078 | 46,303 |
Unfunded status recognized in Other liabilities | (4,183) | (12,662) |
Amounts recognized in Accumulated other comprehensive loss | 1,955 | 8,484 |
Gratuity Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation | 6,305 | 6,091 |
Fair value of plan assets | 42 | 40 |
Unfunded status recognized in Other liabilities | $ (6,263) | $ (6,051) |
Employee Compensation and Ben_5
Employee Compensation and Benefit Plans - Schedule of Stock Awards Vesting (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2012 - 2014 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 100.00% | ||
2012 - 2014 Awards | Time-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 45.00% | ||
Award vesting period (years) | 4 years | ||
Vesting percentage of awards (percentage) | 25.00% | ||
2012 - 2014 Awards | Market Performance-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 50.00% | ||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 25.00% | ||
Percentage of compounded annual gain of stock price over the exercise price (percentage) | 20.00% | ||
2012 - 2014 Awards | Extraordinary Market Performance-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 5.00% | ||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 25.00% | ||
Percentage of compounded annual gain of stock price over the exercise price (percentage) | 25.00% | ||
2015 - 2016 Awards | Time-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 100.00% | ||
Award vesting period (years) | 4 years | ||
Vesting percentage of awards (percentage) | 25.00% | ||
2017 - 2021 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 100.00% | ||
2017 - 2021 Awards | Time-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 6.00% | ||
Award vesting period (years) | 3 years | ||
2017 - 2021 Awards | Time-Based | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 41.00% | ||
Award vesting period (years) | 3 years | ||
2017 - 2021 Awards | Time-Based Vesting Schedule and Market Performance-Based Vesting Date | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 9.00% | ||
Award vesting period (years) | 4 years | ||
Vesting percentage of awards (percentage) | 25.00% | ||
2017 - 2021 Awards | Time-Based Vesting Schedule And Market Performance-Based Vesting Date | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 44.00% | ||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 100.00% |
Employee Compensation and Ben_6
Employee Compensation and Benefit Plans - Schedule of Stock Option Activity (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding (in shares) | 124,866 | 131,962 | 139,507 |
Granted (in shares) | 3,427 | ||
Forfeited / Expired (in shares) | (10,208) | (7,096) | (10,972) |
Outstanding (in shares) | 114,658 | 124,866 | 131,962 |
Exercisable at end of year (in shares) | 108,754 | 110,484 | 105,384 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding (in dollars per share) | $ 274.30 | $ 282.30 | $ 288.30 |
Granted (in dollars per share) | 31.20 | ||
Forfeited / Expired (in dollars per share) | 189 | 423.80 | 280.35 |
Outstanding (in dollars per share) | 281.89 | 274.30 | 282.30 |
Exercisable at end of year (in dollars per share) | $ 273.97 | $ 283.08 | $ 302.40 |
Employee Compensation and Ben_7
Employee Compensation and Benefit Plans - Schedule of Stock Option Activity (Footnote) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options which expired unexercised | 10,208 | 0 | 4,913 |
Market-based options that have not met performance criteria (in shares) | 5,167 | ||
Average common stock trading price to determine market condition for options exercise | $ 484.19 | ||
Net aggregate intrinsic value of stock options outstanding | $ 0.1 | ||
Market-based options outstanding (in shares) | 44,500 | ||
Market-based options outstanding, exercisable (in shares) | 39,333 | ||
Weighted average remaining contractual term of options outstanding | 2 years 7 days | ||
Weighted average remaining contractual term of options exercisable | 1 year 11 months 23 days | ||
Total fair value of stock options vested and became exercisable | $ 0.3 | $ 0.3 | $ 0.6 |
Chief Financial Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 2,212 | ||
Stock options granted, exercise price (in dollars per share) | $ 32.55 |
Employee Compensation and Ben_8
Employee Compensation and Benefit Plans - Schedule of Stock Unit Activity (Details) - Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of year (in shares) | 261,647 | 177,275 | 196,453 |
Granted (in shares) | 236,593 | 150,000 | 83,797 |
Vested (in shares) | (71,855) | (62,954) | (75,846) |
Forfeited/Cancelled (in shares) | (10,159) | (2,674) | (27,129) |
Unvested at end of year (in shares) | 416,226 | 261,647 | 177,275 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested at beginning of year (in dollar per share) | $ 21.74 | $ 39.45 | $ 56.25 |
Granted (in dollar per share) | 33.50 | 8.78 | 30 |
Vested (in dollar per share) | 33.43 | 42.25 | 46.20 |
Forfeited/Canceled (in dollar per share) | 39.74 | 26.85 | 143.70 |
Unvested at end of year (in dollar per share) | $ 25.97 | $ 21.74 | $ 39.45 |
Employee Compensation and Ben_9
Employee Compensation and Benefit Plans - Schedule of Stock Unit Activity (Footnote) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 115,173 | 150,000 | 75,377 | |
Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 236,593 | 150,000 | 83,797 | |
Intrinsic value of stock units vested | $ 2.1 | $ 1 | $ 2.1 | |
Total intrinsic value of stock units vested | $ 2.4 | $ 2.7 | $ 3.5 | |
Unvested stock units (in shares) | 416,226 | 261,647 | 177,275 | 196,453 |
Minimum percentage of units to vest (percent) | 50.00% | |||
Weighted average remaining contractual term of share units outstanding (years) | 2 years | |||
Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested stock units (in shares) | 236,922 | |||
Net aggregate intrinsic value of stock awards outstanding | $ 7.2 | |||
Transitional Performance Based Awards | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 4,623 | |||
Share-based Payment Arrangement, Tranche Three | Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average common stock trading price (USD per share) | $ 65.10 | |||
Stock units with market condition not met, number | 3,840 | |||
Share-Based Payment Arrangement, Tranche Four | Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average common stock trading price (USD per share) | $ 38.34 | |||
Stock units with market condition not met, number | 37,688 | |||
Share-Based Payments Arrangement, Tranche Five | Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units with market condition not met, number | 195,394 |
Employee Compensation and Be_10
Employee Compensation and Benefit Plans - Schedule of Liability Award Activity (Details) - Long-Term Incentive (LTI) Program - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of year (in shares) | 728,373 | 243,441 | 0 |
Granted (in shares) | 233,056 | 601,787 | 251,076 |
Vested (in shares) | (105,974) | (21,909) | 0 |
Forfeited/Cancelled (in shares) | (111,507) | (94,954) | (7,635) |
Other | 14,678 | 8 | 0 |
Conversion of fractional stock units on reverse stock split | 8 | ||
Unvested at end of year (in shares) | 758,626 | 728,373 | 243,441 |
Transitional Performance Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 14,681 | ||
Forfeited/Cancelled (in shares) | (35,000) | (36,898) |
Employee Compensation and Be_11
Employee Compensation and Benefit Plans - Schedule of Assumptions used to Value Stock Awards Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Monte Carlo | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum (percentage) | 0.01% | 0.08% | 1.16% |
Risk-free interest rate, maximum (percentage) | 0.77% | 0.29% | 2.40% |
Expected stock price volatility, minimum (percentage) | 95.00% | 88.70% | 72.50% |
Expected stock price volatility, maximum (percentage) | 96.40% | 94.10% | 75.90% |
Black Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percentage) | 2.60% | ||
Expected stock price volatility (percentage) | 68.00% | ||
Expected option life (in years) | 8 years 6 months | ||
Minimum | Monte Carlo | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | $ 36.09 | $ 24.36 | $ 26.25 |
Minimum | Black Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | 20.55 | ||
Maximum | Monte Carlo | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | $ 62.03 | $ 38.75 | 33.75 |
Maximum | Black Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | $ 23.25 |
Employee Compensation and Be_12
Employee Compensation and Benefit Plans - Schedule of Equity-based Compensation Expense Related to Stock Options and Stock Awards and Related Excess Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity-based compensation expense: | |||
Awards | $ 4,719 | $ 2,401 | $ 2,697 |
Excess tax benefit (tax deficiency) related to share-based awards | 518 | (424) | (381) |
Stock Options | |||
Equity-based compensation expense: | |||
Awards | 254 | (431) | (121) |
Stock Awards | |||
Equity-based compensation expense: | |||
Awards | 4,465 | 2,832 | 2,818 |
Liability Awards | |||
Equity-based compensation expense: | |||
Awards | $ 15,108 | $ 5,642 | $ 1,082 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Servicing | |
Segment Reporting Information [Line Items] | |
Percentage of Revenue | 0.78 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Results of Operations | ||||
Servicing and subservicing fees | $ 781,941 | $ 737,320 | $ 975,507 | |
Reverse mortgage revenue, net | 79,676 | 60,726 | 86,309 | |
Gain on loans held for sale, net | 145,755 | 137,236 | 38,300 | |
Other revenue, net | 42,727 | 25,630 | 23,259 | |
Revenue | 1,050,099 | 960,912 | 1,123,375 | |
MSR valuation adjustments, net | (109,900) | (251,921) | (120,876) | |
Operating expenses | 609,327 | 575,704 | 673,939 | |
Other income (expense): | ||||
Interest income | 26,374 | 15,999 | 17,104 | |
Interest expense ($31,656, $0 and $0 due to related parties) | (143,968) | (109,367) | (114,129) | |
Pledged MSR liability expense | (209,901) | (152,334) | (372,172) | |
Gain (loss) on extinguishment of debt | (15,458) | 0 | 5,099 | |
Earnings of equity method investee | 3,620 | 0 | 0 | |
Other, net | 4,090 | 6,731 | 9,047 | |
Total other income (expense), net | (335,243) | (238,971) | (455,051) | |
Income (loss) before income taxes | (4,371) | (105,684) | (126,491) | |
Accelerated depreciation related to facility lease right of use | 3,300 | |||
Restructuring costs | 65,000 | |||
Total Assets | ||||
Balance | 12,147,123 | 10,651,127 | 10,406,199 | |
Servicing | ||||
Other income (expense): | ||||
Gain (loss) on extinguishment of debt | 0 | |||
Originations | ||||
Other income (expense): | ||||
Gain (loss) on extinguishment of debt | 0 | |||
Corporate Items and Other | ||||
Other income (expense): | ||||
Gain (loss) on extinguishment of debt | 5,099 | |||
Recovery of direct costs | $ 30,700 | |||
Operating Segments | Servicing | ||||
Results of Operations | ||||
Servicing and subservicing fees | 773,459 | 731,221 | 974,160 | |
Reverse mortgage revenue, net | (2,335) | 7,579 | 63,459 | |
Gain on loans held for sale, net | 46,596 | 14,704 | 5,426 | |
Other revenue, net | 1,660 | 4,160 | 5,445 | |
Revenue | 819,380 | 757,664 | 1,048,490 | |
MSR valuation adjustments, net | (160,396) | (276,252) | (120,864) | |
Operating expenses | 342,424 | 331,885 | 547,976 | |
Other income (expense): | ||||
Interest income | 8,245 | 7,061 | 10,085 | |
Interest expense ($31,656, $0 and $0 due to related parties) | (104,578) | (90,671) | (102,525) | |
Pledged MSR liability expense | (209,121) | (152,454) | (372,172) | |
Gain (loss) on extinguishment of debt | 0 | |||
Earnings of equity method investee | 3,620 | |||
Other, net | 5,190 | 10,752 | 12,294 | |
Total other income (expense), net | (296,644) | (225,312) | (452,318) | |
Income (loss) before income taxes | 19,916 | (75,785) | (72,668) | |
Total Assets | ||||
Balance | 10,999,204 | 9,847,603 | 9,580,466 | |
Operating Segments | Originations | ||||
Results of Operations | ||||
Servicing and subservicing fees | 8,482 | 6,041 | 1,254 | |
Reverse mortgage revenue, net | 82,011 | 53,147 | 22,850 | |
Gain on loans held for sale, net | 124,489 | 105,164 | 32,865 | |
Other revenue, net | 34,909 | 14,946 | 4,729 | |
Revenue | 249,891 | 179,298 | 61,698 | |
MSR valuation adjustments, net | 25,166 | 41,699 | (12) | |
Operating expenses | 172,797 | 114,357 | 72,457 | |
Other income (expense): | ||||
Interest income | 17,678 | 7,008 | 5,243 | |
Interest expense ($31,656, $0 and $0 due to related parties) | (22,972) | (9,837) | (7,590) | |
Pledged MSR liability expense | (834) | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | |||
Earnings of equity method investee | 0 | |||
Other, net | (2,282) | 351 | 892 | |
Total other income (expense), net | (8,410) | (2,478) | (1,455) | |
Income (loss) before income taxes | 93,850 | 104,162 | (12,226) | |
Total Assets | ||||
Balance | 823,530 | 379,233 | 257,416 | |
Operating Segments | Corporate Items and Other | ||||
Results of Operations | ||||
Servicing and subservicing fees | 0 | 58 | 93 | |
Reverse mortgage revenue, net | 0 | 0 | 0 | |
Gain on loans held for sale, net | 0 | 0 | 9 | |
Other revenue, net | 6,158 | 6,524 | 13,085 | |
Revenue | 6,158 | 6,582 | 13,187 | |
MSR valuation adjustments, net | 0 | 0 | 0 | |
Operating expenses | 94,106 | 129,462 | 53,506 | |
Other income (expense): | ||||
Interest income | 451 | 1,930 | 1,776 | |
Interest expense ($31,656, $0 and $0 due to related parties) | (16,418) | (8,859) | (4,014) | |
Pledged MSR liability expense | 54 | 120 | 0 | |
Gain (loss) on extinguishment of debt | (15,458) | |||
Earnings of equity method investee | 0 | |||
Other, net | 1,182 | (4,372) | (4,139) | |
Total other income (expense), net | (30,189) | (11,181) | (1,278) | |
Income (loss) before income taxes | (118,137) | (134,061) | (41,597) | |
Total Assets | ||||
Balance | 324,389 | 424,291 | 568,317 | |
Intersegment Eliminations | ||||
Results of Operations | ||||
Servicing and subservicing fees | 0 | 0 | 0 | |
Reverse mortgage revenue, net | 0 | 0 | 0 | |
Gain on loans held for sale, net | (25,330) | 17,368 | 0 | |
Other revenue, net | 0 | 0 | 0 | |
Revenue | (25,330) | 17,368 | 0 | |
MSR valuation adjustments, net | 25,330 | (17,368) | 0 | |
Operating expenses | 0 | 0 | 0 | |
Other income (expense): | ||||
Interest income | 0 | 0 | 0 | |
Interest expense ($31,656, $0 and $0 due to related parties) | 0 | 0 | 0 | |
Pledged MSR liability expense | 0 | 0 | 0 | |
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Earnings of equity method investee | 0 | |||
Other, net | 0 | 0 | 0 | |
Total other income (expense), net | 0 | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | 0 | |
Gains on derivatives | $ (25,300) | 17,400 | ||
Facility-related | ||||
Other income (expense): | ||||
Restructuring costs | 6,300 | 10,100 | ||
Employee-related | ||||
Other income (expense): | ||||
Restructuring costs | 3,400 | 35,700 | ||
Other | ||||
Other income (expense): | ||||
Restructuring costs | $ 19,100 | |||
Restructuring reserves | $ 2,000 |
Business Segment Reporting - _2
Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 10,265 | $ 19,121 | $ 31,911 |
Amortization of debt discount and issuance costs | 7,792 | 6,992 | 4,512 |
Servicing | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 674 | 857 | 1,925 |
Amortization of debt discount and issuance costs | 687 | 470 | 71 |
Originations | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 244 | 128 | 93 |
Amortization of debt discount and issuance costs | 0 | 0 | 0 |
Corporate Items and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 9,347 | 18,136 | 29,893 |
Amortization of debt discount and issuance costs | $ 7,105 | $ 6,522 | $ 4,441 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Number of days from fiscal year end that servicer is obliged to provide audited financial statements | 90 days | ||
Capital requirement based on outstanding UPB of owned and subserviced portfolio | $ 372,100,000 | ||
Covenant liquidity requirement | 40,800,000 | ||
Capital | 568,200,000 | ||
Cash and cash equivalents | $ 192,792,000 | $ 284,802,000 | |
Percentage portfolio of loans serviced or subserviced | 2.00% | ||
California Department of Business Oversight | |||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Litigation settlement expense | $ 62,000 | ||
PMC | |||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |||
Cash and cash equivalents | $ 169,600,000 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | |||
Funded amount in connection with reverse mortgage loans | $ 226,600 | ||
Threshold percentage of outstanding principal balance on maximum claim amount | 98.00% | ||
Weighted average remaining lease term (years) | 1 year 10 months 24 days | ||
Restricted cash | $ 60,686 | $ 52,322 | $ 40,725 |
Weighted average discount rate (percent) | 7.60% | ||
Operating lease cost | $ 8,800 | 14,600 | 26,100 |
Variable lease cost | 1,600 | 1,600 | $ 5,400 |
Floating Rate Reverse Mortgage Loans | |||
Other Commitments [Line Items] | |||
Additional borrowing capacity to borrowers | 1,500,000 | $ 2,000,000 | |
Forward Mortgage Loan Interest Rate Lock Commitments | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | 1,000,000 | ||
Reverse Loans IRLCs | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | $ 63,300 | ||
NRZ | Unpaid Principal Balance | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 21.00% | ||
NRZ | Loan Count | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 31.00% | ||
NRZ | Delinquent Loans | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 66.00% | ||
Leased Facility | |||
Other Commitments [Line Items] | |||
Restricted cash | $ 23,200 |
Commitments - Schedule of Activ
Commitments - Schedule of Activity Related to HMBS Repurchases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)security | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 458 |
Additions, repurchase securities, number | security | 614 |
Recoveries, net, repurchase securities, number | security | (486) |
Transfers, repurchase securities, number | security | 0 |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 586 |
Beginning balance, repurchase securities, value | $ | $ 86,301 |
Additions, repurchase securities, value | $ | 147,291 |
Recoveries, repurchase securities, value | $ | (100,673) |
Transfers, repurchase securities, value | $ | 0 |
Change in value, repurchase securities, value | $ | (3,784) |
Ending balance, repurchase securities, value | $ | $ 129,135 |
Active | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 141 |
Additions, repurchase securities, number | security | 321 |
Recoveries, net, repurchase securities, number | security | (310) |
Transfers, repurchase securities, number | security | (14) |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 138 |
Beginning balance, repurchase securities, value | $ | $ 29,852 |
Additions, repurchase securities, value | $ | 86,114 |
Recoveries, repurchase securities, value | $ | (75,584) |
Transfers, repurchase securities, value | $ | (5,068) |
Change in value, repurchase securities, value | $ | 8 |
Ending balance, repurchase securities, value | $ | $ 35,322 |
Inactive | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 317 |
Additions, repurchase securities, number | security | 293 |
Recoveries, net, repurchase securities, number | security | (176) |
Transfers, repurchase securities, number | security | 14 |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 448 |
Beginning balance, repurchase securities, value | $ | $ 56,449 |
Additions, repurchase securities, value | $ | 61,177 |
Recoveries, repurchase securities, value | $ | (25,089) |
Transfers, repurchase securities, value | $ | 5,068 |
Change in value, repurchase securities, value | $ | (3,792) |
Ending balance, repurchase securities, value | $ | $ 93,813 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rental Commitments under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 12,513 | |
2023 | 3,029 | |
2024 | 1,385 | |
2025 | 654 | |
2026 | 0 | |
Thereafter | 0 | |
Total minimum lease payments, gross | 17,581 | |
Less: Adjustment to present value | (739) | |
Total lease payments, net | $ 16,842 | $ 27,393 |
Weighted average discount rate (percent) | 7.60% |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Thousands | Nov. 15, 2021Loan | Apr. 30, 2017state | Dec. 31, 2018USD ($)state | Dec. 31, 2015state | Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrued legal fees and settlements | $ 43,990 | $ 38,932 | |||||
Number of states charging with regulatory action | state | 29 | ||||||
Outstanding representation and warranty repurchase demands | $ 52,500 | $ 41,200 | |||||
Outstanding representation and warranty repurchase demands, number of loans | loan | 288 | 250 | |||||
Representation warranty and compensatory fees obligations | $ 49,267 | $ 49,430 | $ 40,374 | $ 50,838 | |||
Sold Advances | |||||||
Loss Contingencies [Line Items] | |||||||
Representation warranty and compensatory fees obligations | $ 18,000 | ||||||
Multistate Mortgage Committee | |||||||
Loss Contingencies [Line Items] | |||||||
Number of states who are part of confidential supervisory memorandum of understanding | state | 5 | 6 | |||||
Mr. Cooper | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | Loan | 3 | ||||||
Number of lawsuits dismissed | Loan | 2 | ||||||
Number of lawsuits settled | Loan | 3 |
Contingencies - Schedule of Cha
Contingencies - Schedule of Changes in Liability for Representation and Warrant Obligations and Indemnification Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Indemnification Obligations Liability [Roll Forward] | |||
Beginning balance | $ 40,374 | $ 50,838 | $ 49,267 |
Provision (reversal) for representation and warranty obligations | 3,173 | (7,783) | (11,701) |
New production liability | 4,733 | 2,596 | 304 |
Charge-offs and other | 1,150 | (5,277) | 12,968 |
Ending balance | $ 49,430 | $ 40,374 | $ 50,838 |