falsedesktopOCN2020-09-30000162828020015371{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Florida\t\t65-0039856\n(State or other jurisdiction of incorporation or organization)\t\t(I.R.S. Employer Identification No.)\n1661 Worthington Road Suite 100\t\t33409\nWest Palm Beach\tFlorida\n(Address of principal executive office)\t\t(Zip Code)\n", "q10k_tbl_1": "Large accelerated filer\t☐\tAccelerated filer\t☒\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "\t\tPAGE\nPART I - FINANCIAL INFORMATION\t\t\nItem 1.\tUnaudited Consolidated Financial Statements\t3\n\tConsolidated Balance Sheets at September 30 2020 and December 31 2019\t4\n\tConsolidated Statements of Operations for the Three and Nine Months Ended September 30 2020 and 2019\t5\n\tConsolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30 2020 and 2019\t6\n\tConsolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30 2020 and 2019\t7\n\tConsolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t9\n\tNotes to Unaudited Consolidated Financial Statements\t12\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t64\nItem 3.\tQuantitative and Qualitative Disclosures about Market Risk\t106\nItem 4.\tControls and Procedures\t110\nPART II - OTHER INFORMATION\t\t\nItem 1.\tLegal Proceedings\t111\nItem 1A.\tRisk Factors\t111\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t111\nItem 6.\tExhibits\t112\nSignatures\t\t113\n", "q10k_tbl_3": "\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\nCash and cash equivalents\t321455\t428339\nRestricted cash (amounts related to variable interest entities (VIEs) of $13108 and $20434)\t61511\t64001\nMortgage servicing rights (MSRs) at fair value\t1069013\t1486395\nAdvances net (amounts related to VIEs of $660816 and $801990)\t832604\t1056523\nLoans held for sale ($366966 and $208752 carried at fair value)\t390631\t275269\nLoans held for investment at fair value (amounts related to VIEs of $11012 and $23342)\t6860942\t6292938\nReceivables net\t201607\t201220\nPremises and equipment net\t23620\t38274\nOther assets ($25204 and $8524 carried at fair value) (amounts related to VIEs of $7584 and $4078)\t662468\t563240\nTotal assets\t10423851\t10406199\nLiabilities and Equity\t\t\nLiabilities\t\t\nHome Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings at fair value\t6606543\t6063435\nAdvance match funded liabilities (related to VIEs)\t580078\t679109\nOther financing liabilities at fair value (amounts related to VIEs of $11012 and $22002)\t588321\t972595\nOther secured borrowings net (amounts related to VIEs $186986 and $240893)\t915292\t1025791\nSenior notes net\t311689\t311085\nOther liabilities ($1671 and $100 carried at fair value) (amounts related to VIEs of $93 and $144)\t997461\t942173\nTotal liabilities\t9999384\t9994188\nCommitments and Contingencies (Notes 21 and 22)\t\t\nStockholders' Equity\t\t\nCommon stock $.01 par value; 13333333 shares authorized; 8672272 and 8990816 shares issued and outstanding at September 30 2020 and December 31 2019 respectively\t87\t90\nAdditional paid-in capital\t556176\t558057\nAccumulated deficit\t(124459)\t(138542)\nAccumulated other comprehensive loss net of income taxes\t(7337)\t(7594)\nTotal stockholders' equity\t424467\t412011\nTotal liabilities and stockholders' equity\t10423851\t10406199\n", "q10k_tbl_4": "\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenue\t\t\t\t\nServicing and subservicing fees\t181722\t248517\t568445\t745093\nReverse mortgage revenue net\t14499\t20260\t51055\t72876\nGain on loans held for sale net\t45886\t9012\t92764\t26312\nOther revenue net\t6928\t5726\t17637\t17460\nTotal revenue\t249035\t283515\t729901\t861741\nMSR valuation adjustments net\t(33814)\t134561\t(231368)\t(121705)\nOperating expenses\t\t\t\t\nCompensation and benefits\t69648\t73414\t195393\t250393\nServicing and origination\t22930\t36619\t60547\t86827\nProfessional services\t28361\t36628\t77816\t77205\nTechnology and communications\t15850\t16644\t47154\t61080\nOccupancy and equipment\t9572\t17262\t37677\t52550\nOther expenses\t3161\t(1282)\t12958\t6563\nTotal operating expenses\t149522\t179285\t431545\t534618\nOther income (expense)\t\t\t\t\nInterest income\t3801\t4129\t12762\t12524\nInterest expense\t(26815)\t(29506)\t(83557)\t(84636)\nPledged MSR liability expense\t(57404)\t(256416)\t(105684)\t(303302)\nGain on repurchase of senior secured notes\t0\t5099\t0\t5099\nOther net\t3345\t(414)\t4616\t1163\nTotal other expense net\t(77073)\t(277108)\t(171863)\t(369152)\nLoss before income taxes\t(11374)\t(38317)\t(104875)\t(163734)\nIncome tax (benefit) expense\t(1954)\t4450\t(71920)\t13264\nNet loss\t(9420)\t(42767)\t(32955)\t(176998)\nLoss per share\t\t\t\t\nBasic\t(1.09)\t(4.77)\t(3.76)\t(19.76)\nDiluted\t(1.09)\t(4.77)\t(3.76)\t(19.76)\nWeighted average common shares outstanding\t\t\t\t\nBasic\t8669550\t8973053\t8770102\t8955288\nDiluted\t8669550\t8973053\t8770102\t8955288\n", "q10k_tbl_5": "\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet loss\t(9420)\t(42767)\t(32955)\t(176998)\nOther comprehensive income net of income taxes:\t\t\t\t\nReclassification adjustment for losses on cash flow hedges included in net income\t42\t38\t118\t108\nChange in unfunded pension plan obligation liability\t47\t611\t139\t1285\nOther\t0\t8\t0\t21\nComprehensive loss\t(9331)\t(42110)\t(32698)\t(175584)\n", "q10k_tbl_6": "\tCommon Stock\t\tAdditional Paid-in Capital\t(Accumulated Deficit) Retained Earnings\tAccumulated Other Comprehensive Income (Loss) Net of Income Taxes\tTotal\n\tShares\tAmount\t\t\nThree Months Ended September 30 2020 and 2019\t\t\t\t\t\t\nBalance at June 30 2020\t8667260\t87\t555147\t(115039)\t(7426)\t432769\nNet loss\t0\t0\t0\t(9420)\t0\t(9420)\nAdditional shares issued on reverse stock split rounding\t4692\t0\t0\t0\t0\t0\nEquity-based compensation and other\t320\t0\t1029\t0\t0\t1029\nOther comprehensive income net of income taxes\t0\t0\t0\t0\t89\t89\nBalance at September 30 2020\t8672272\t87\t556176\t(124459)\t(7337)\t424467\nBalance at June 30 2019\t8973053\t90\t556952\t(130648)\t(3500)\t422894\nNet loss\t0\t0\t0\t(42767)\t0\t(42767)\nEquity-based compensation and other\t0\t0\t401\t0\t0\t401\nOther comprehensive income net of income taxes\t0\t0\t0\t0\t657\t657\nBalance at September 30 2019\t8973053\t90\t557353\t(173415)\t(2843)\t381185\n", "q10k_tbl_7": "\tCommon Stock\t\tAdditional Paid-in Capital\t(Accumulated Deficit) Retained Earnings\tAccumulated Other Comprehensive Loss Net of Income Taxes\tTotal\n\tShares\tAmount\t\t\nNine Months Ended September 30 2020 and 2019\t\t\t\t\t\t\nBalance at December 31 2019\t8990816\t90\t558057\t(138542)\t(7594)\t412011\nNet loss\t0\t0\t0\t(32955)\t0\t(32955)\nCumulative effect of adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13\t0\t0\t0\t47038\t0\t47038\nRepurchase of common stock\t(377484)\t(4)\t(4601)\t0\t0\t(4605)\nAdditional shares issued on reverse stock split rounding\t4692\t0\t0\t0\t0\t0\nEquity-based compensation and other\t54248\t1\t2720\t0\t0\t2721\nOther comprehensive income net of income taxes\t0\t0\t0\t0\t257\t257\nBalance at September 30 2020\t8672272\t87\t556176\t(124459)\t(7337)\t424467\nBalance at December 31 2018\t8927495\t89\t555306\t3567\t(4257)\t554705\nNet loss\t0\t0\t0\t(176998)\t0\t(176998)\nCumulative effect of adoption of FASB ASU No. 2016-02\t0\t0\t0\t16\t0\t16\nEquity-based compensation and other\t45558\t1\t2047\t0\t0\t2048\nOther comprehensive income net of income taxes\t0\t0\t0\t0\t1414\t1414\nBalance at September 30 2019\t8973053\t90\t557353\t(173415)\t(2843)\t381185\n", "q10k_tbl_8": "\tFor the Nine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities\t\t\nNet loss\t(32955)\t(176998)\nAdjustments to reconcile net loss to net cash provided by operating activities:\t\t\nMSR valuation adjustments net\t231368\t121705\nGain on sale of MSRs net\t(48)\t(571)\nProvision for bad debts\t18801\t26971\nDepreciation\t15398\t26020\nGain on repurchase of senior notes\t0\t(5099)\nAmortization of debt issuance costs\t4631\t2268\nEquity-based compensation expense\t2392\t1890\n(Gain) loss on valuation of Pledged MSR financing liability\t(21314)\t123721\nNet gain on valuation of loans held for investment and HMBS-related borrowings\t(14410)\t(50221)\nGain on loans held for sale net\t(92764)\t(26312)\nBargain purchase gain\t0\t381\nOrigination and purchase of loans held for sale\t(4378999)\t(872914)\nProceeds from sale and collections of loans held for sale\t4259127\t787683\nChanges in assets and liabilities:\t\t\nDecrease in advances net\t210688\t189876\nDecrease in receivables and other assets net\t105023\t123283\nDecrease in other liabilities\t(47981)\t(82942)\nOther net\t(10918)\t(4671)\nNet cash provided by operating activities\t248039\t184070\nCash flows from investing activities\t\t\nOrigination of loans held for investment\t(867702)\t(675898)\nPrincipal payments received on loans held for investment\t619486\t383806\nPurchase of MSRs\t(82990)\t(112417)\nProceeds from sale of MSRs\t0\t1159\nAcquisition of advances in connection with the purchase of MSRs\t0\t(1457)\nProceeds from sale of advances\t561\t2876\nAdditions to premises and equipment\t(3394)\t(1342)\nProceeds from sale of real estate\t5123\t5572\nOther net\t800\t420\nNet cash used in investing activities\t(328116)\t(397281)\nCash flows from financing activities\t\t\nRepayment of advance match funded liabilities net\t(99031)\t(90787)\nRepayment of other financing liabilities\t(84185)\t(168898)\nProceeds from mortgage loan warehouse facilities net\t109538\t87484\nProceeds from MSR financing facilities\t128641\t144260\nRepayment of MSR financing facilities\t(208996)\t(6648)\nRepayment and repurchases of Senior notes\t0\t(131791)\nProceeds from issuance of additional senior secured term loan (SSTL)\t0\t119100\nRepayment of SSTL borrowings\t(136066)\t(19074)\nPayment of debt issuance costs\t(7522)\t(1284)\nProceeds from sale of MSRs accounted for as a financing\t0\t1221\nProceeds from sale of Home Equity Conversion Mortgages (HECM or reverse mortgages) accounted for as a financing (HMBS-related borrowings)\t885987\t665820\nRepayment of HMBS-related borrowings\t(613026)\t(377094)\nRepurchase of common stock\t(4605)\t0\nOther net\t(32)\t(2363)\nNet cash (used in) provided by financing activities\t(29297)\t219946\nNet (decrease) increase in cash cash equivalents and restricted cash\t(109374)\t6735\nCash cash equivalents and restricted cash at beginning of year\t492340\t397010\nCash cash equivalents and restricted cash at end of period\t382966\t403745\nSupplemental non-cash investing and financing activities:\t\t\nDeconsolidation of mortgage-backed securitization trusts (VIEs)\t\t\nLoans held for investment\t(10715)\t0\nOther financing liabilities\t(9519)\t0\nDerecognition of MSRs and financing liabilities:\t\t\nMSRs\t(263344)\t0\nFinancing liability - MSRs pledged (Rights to MSRs)\t(263344)\t0\nRecognition of future draw commitments for HECM loans at fair value upon adoption of FASB ASU No. 2016-13\t47038\t0\nRecognition of gross right-of-use asset and lease liability:\t\t\nRight-of-use asset\t2608\t66231\nLease liability\t2597\t66247\nTransfers of loans held for sale to real estate owned (REO)\t2554\t4240\n", "q10k_tbl_9": "\tSeptember 30 2020\tSeptember 30 2019\nCash and cash equivalents\t321455\t345084\nRestricted cash and equivalents:\t\t\nDebt service accounts\t14873\t17026\nOther restricted cash\t46638\t41635\nTotal cash cash equivalents and restricted cash reported in the statements of cash flows\t382966\t403745\n", "q10k_tbl_10": "\t\t\tPeriods Ended September 30 2019\t\nReclassification within the Statement of Operations\t\t\tThree Months\tNine Months\n\tRevenue\t\t\t\n\tFrom\tGain on loans held for sale net\t7001\t22371\n\tFrom\tOther revenue net\t14062\t52839\n\tFrom\tServicing and subservicing fees\t(803)\t(2334)\n\tTo\tReverse mortgage revenue net (New line item)\t20260\t72876\n\tTotal revenue\t\t0\t0\n", "q10k_tbl_11": "\tEmployee-related\tFacility-related\tOther\tTotal\nFirst quarter\t20787\t0\t1328\t22115\nSecond quarter\t3460\t3047\t3619\t10126\nThird quarter\t7266\t3596\t7485\t18347\nFourth quarter\t4191\t3490\t6700\t14381\nTotal costs incurred\t35704\t10133\t19132\t64969\n", "q10k_tbl_12": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nProceeds received from securitizations\t2364829\t\t235175\t\t4256082\t\t674108\nServicing fees collected (1)\t12561\t\t8866\t\t35204\t\t37610\nPurchases of previously transferred assets net of claims reimbursed\t(2061)\t\t(2093)\t\t(6338)\t\t(3140)\n\t2375329\t\t241948\t\t4284948\t\t708578\n", "q10k_tbl_13": "\tSeptember 30 2020\tDecember 31 2019\nCarrying value of assets\t\t\nMSRs at fair value\t101506\t109581\nAdvances\t182450\t141829\nUPB of loans transferred\t17126989\t14490984\nMaximum exposure to loss\t17410945\t14742394\n", "q10k_tbl_14": "\tSeptember 30 2020\tDecember 31 2019\nMSRs pledged (MSRs at fair value)\t234106\t245533\nUnamortized debt issuance costs (Other assets)\t1775\t946\nDebt service account (Restricted cash)\t102\t100\nOutstanding borrowings (Other secured borrowings net)\t113929\t147706\n", "q10k_tbl_15": "\tSeptember 30 2020\tDecember 31 2019\nMSRs pledged (MSRs at fair value)\t133169\t146215\nDebt service account (Restricted cash)\t2549\t3002\nOutstanding borrowings (Other secured borrowings net)\t74021\t94395\nUnamortized debt issuance costs (Other secured borrowings net)\t(964)\t(1208)\n", "q10k_tbl_16": "\tSeptember 30 2020\tDecember 31 2019\nLoans held for investment at fair value - Restricted for securitization investors\t11012\t23342\nFinancing liability - Owed to securitization investors at fair value\t11012\t22002\n", "q10k_tbl_17": "\t\tSeptember 30 2020\t\tDecember 31 2019\t\n\tLevel\tCarrying Value\tFair Value\tCarrying Value\tFair Value\nFinancial assets\t\t\t\t\t\nLoans held for sale\t\t\t\t\t\nLoans held for sale at fair value (a) (e)\t3 2\t366966\t366966\t208752\t208752\nLoans held for sale at lower of cost or fair value (b)\t3\t23665\t23665\t66517\t66517\nTotal Loans held for sale\t\t390631\t390631\t275269\t275269\nLoans held for investment\t\t\t\t\t\nLoans held for investment - Reverse mortgages (a)\t3\t6849930\t6849930\t6269596\t6269596\nLoans held for investment - Restricted for securitization investors (a)\t3\t11012\t11012\t23342\t23342\nTotal loans held for investment\t\t6860942\t6860942\t6292938\t6292938\nAdvances net (c)\t3\t832604\t832604\t1056523\t1056523\nReceivables net (c)\t3\t201607\t201607\t201220\t201220\nMortgage-backed securities (a)\t3\t2150\t2150\t2075\t2075\nCorporate bonds (a)\t2\t211\t211\t441\t441\n", "q10k_tbl_18": "\t\tSeptember 30 2020\t\tDecember 31 2019\t\n\tLevel\tCarrying Value\tFair Value\tCarrying Value\tFair Value\nFinancial liabilities:\t\t\t\t\t\nAdvance match funded liabilities (c)\t3\t580078\t580602\t679109\t679507\nFinancing liabilities:\t\t\t\t\t\nHMBS-related borrowings (a)\t3\t6606543\t6606543\t6063435\t6063435\nFinancing liability - MSRs pledged (Rights to MSRs) (a)\t3\t577309\t577309\t950593\t950593\nFinancing liability - Owed to securitization investors (a)\t3\t11012\t11012\t22002\t22002\nTotal Financing liabilities\t\t7194864\t7194864\t7036030\t7036030\nOther secured borrowings:\t\t\t\t\t\nSenior secured term loan (c) (d)\t2\t183822\t188666\t322758\t324643\nOther (c) (d)\t3\t731470\t701037\t703033\t686146\nTotal Other secured borrowings\t\t915292\t889703\t1025791\t1010789\nSenior notes:\t\t\t\t\t\nSenior unsecured notes (c) (d)\t2\t21278\t18501\t21046\t13821\nSenior secured notes (c) (d)\t2\t290411\t267314\t290039\t256201\nTotal Senior notes\t\t311689\t285815\t311085\t270022\nDerivative financial instrument assets (liabilities)\t\t\t\t\t\nInterest rate lock commitments (a) (f)\t3 2\t22679\t22679\t4878\t4878\nForward trades - Loans held for sale (a)\t1\t(83)\t(83)\t(21)\t(21)\nTBA / Forward mortgage-backed securities (MBS) trades and futures - MSR hedging (a)\t1\t(579)\t(579)\t1121\t1121\nDerivatives Futures (a)\t1\t(213)\t(213)\t0\t0\nMSRs (a)\t3\t1069013\t1069013\t1486395\t1486395\n", "q10k_tbl_19": "\tLoans Held for Investment - Restricted for Securitization Investors\tFinancing Liability - Owed to Securitization Investors\tLoans Held for Sale - Fair Value\tMortgage-Backed Securities\tIRLCs\nThree months ended September 30 2020\t\t\t\nBeginning balance\t11664\t(11664)\t25950\t1726\t17818\nPurchases issuances sales and settlements\t\t\t\t\t\nPurchases\t0\t0\t45445\t0\t0\nIssuances\t0\t0\t0\t0\t87311\nSales\t0\t0\t(45723)\t0\t0\nSettlements\t(652)\t652\t356\t0\t0\nTransfers (to) from:\t\t\t\t\t\nLoans held for sale at fair value\t0\t0\t0\t0\t(77785)\nReceivables net\t0\t0\t157\t0\t0\n\t(652)\t652\t235\t0\t9526\nChange in fair value included in earnings\t0\t0\t224\t424\t(4665)\n\t0\t0\t224\t424\t(4665)\nTransfers in and / or out of Level 3\t0\t0\t0\t0\t0\nEnding balance\t11012\t(11012)\t26409\t2150\t22679\n", "q10k_tbl_20": "\tLoans Held for Investment - Restricted for Securitization Investors\tFinancing Liability - Owed to Securitization Investors\tMortgage-Backed Securities\tDerivatives - Interest Rate Caps\nThree months ended September 30 2019\t\t\nBeginning balance\t25324\t(23697)\t2014\t47\nPurchases issuances sales and settlements\t\t\t\t\nPurchases\t0\t0\t0\t0\nIssuances\t0\t0\t0\t0\nSales\t0\t0\t0\t0\nSettlements\t(879)\t870\t0\t0\n\t(879)\t870\t0\t0\nChange in fair value included in earnings\t0\t0\t22\t(47)\n\t0\t0\t22\t(47)\nTransfers in and / or out of Level 3\t0\t0\t0\t0\nEnding balance\t24445\t(22827)\t2036\t0\n", "q10k_tbl_21": "\tLoans Held for Investment - Restricted for Securitization Investors\tFinancing Liability - Owed to Securitization Investors\tLoans Held for Sale - Fair Value\tMortgage-backed Securities\tIRLCs\nNine Months Ended September 30 2020\t\t\t\nBeginning balance\t23342\t(22002)\t0\t2075\t0\nPurchases issuances sales and settlements\t\t\t\t\t\nPurchases\t0\t0\t103955\t0\t0\nIssuances\t0\t0\t0\t0\t144931\nDeconsolidation of mortgage-backed securitization trusts\t(10715)\t9519\t\t0\t0\nSales\t0\t0\t(104273)\t0\t0\nSettlements\t(1615)\t1615\t(70)\t0\t0\nTransfers (to) from:\t\t\t\t\t\nLoans held for sale at fair value\t0\t0\t0\t0\t(128224)\nReceivables net\t0\t0\t(113)\t0\t0\n\t(12330)\t11134\t(501)\t0\t16707\nChange in fair value included in earnings\t0\t(144)\t1328\t75\t(4506)\nTransfers in and / or out of Level 3\t0\t0\t25582\t0\t10478\nEnding balance\t11012\t(11012)\t26409\t2150\t22679\n", "q10k_tbl_22": "\tLoans Held for Investment - Restricted for Securitization Investors\tFinancing Liability - Owed to Securitization Investors\tMortgage-backed Securities\tDerivatives - Interest Rate Caps\nNine Months Ended September 30 2019\t\t\nBeginning balance\t26520\t(24815)\t1502\t678\nPurchases issuances sales and settlements\t\t\t\t\nPurchases\t0\t0\t0\t0\nIssuances\t0\t0\t0\t0\nSales\t0\t0\t0\t0\nSettlements\t(2075)\t1988\t0\t0\n\t(2075)\t1988\t0\t0\nChange in fair value included in earnings\t0\t0\t534\t(678)\n\t0\t0\t534\t(678)\nTransfers in and / or out of Level 3\t\t\t0\t0\nEnding balance\t24445\t(22827)\t2036\t0\n", "q10k_tbl_23": "Significant valuation assumptions\tSeptember 30 2020\tDecember 31 2019\nLife in years\t\t\nRange\t1.0 to 8.2\t2.4 to 7.8\nWeighted average\t6.1\t6.0\nConditional repayment rate\t\t\nRange\t10.4% to 34.1%\t7.8% to 28.3%\nWeighted average\t14.3%\t14.6%\nDiscount rate\t1.8%\t2.8%\n", "q10k_tbl_24": "Significant valuation assumptions\tSeptember 30 2020\t\t\t\tDecember 31 2019\t\t\nAgency\t\tNon-Agency\t\tAgency\t\tNon-Agency\nWeighted average prepayment speed\t14.9%\t\t11.5%\t\t11.7%\t\t12.2%\nWeighted average delinquency rate\t4.7%\t\t27.7%\t\t3.2%\t\t27.3%\nAdvance financing cost\t5-year swap\t\t5-yr swap plus 2.00%\t\t5-year swap\t\t5-yr swap plus 2.00%\nInterest rate for computing float earnings\t5-year swap\t\t5-yr swap minus 0.50%\t\t5-year swap\t\t5-yr swap minus 0.50%\nWeighted average discount rate\t9.5%\t\t11.4%\t\t9.3%\t\t11.3%\nWeighted average cost to service (in dollars)\t96\t\t271\t\t85\t\t277\n", "q10k_tbl_25": "Adverse change in fair value\t10%\t20%\nWeighted average prepayment speeds\t(55715)\t(106603)\nWeighted average discount rate\t(15696)\t(30468)\n", "q10k_tbl_26": "Significant valuation assumptions\tSeptember 30 2020\tDecember 31 2019\nLife in years\t\t\nRange\t1.0 to 8.2\t2.4 to 7.8\nWeighted average\t6.1\t6.0\nConditional repayment rate\t\t\nRange\t10.4 % to 34.1%\t7.8% to 28.3%\nWeighted average\t14.3%\t14.6%\nDiscount rate\t1.6%\t2.7%\n", "q10k_tbl_27": "Significant valuation assumptions\tSeptember 30 2020\tDecember 31 2019\nWeighted average prepayment speed\t11.6%\t11.9%\nWeighted average delinquency rate\t29.4%\t20.3%\nAdvance financing cost\t5-year swap plus 0% to 2.00%\t5-year swap plus 0% to 2.00%\nInterest rate for computing float earnings\t5-year swap minus 0% to 0.50%\t5-year swap minus 0% to 0.50%\nWeighted average discount rate\t11.7%\t10.7%\nWeighted average cost to service (in dollars)\t286\t223\n", "q10k_tbl_28": "Loans Held for Sale - Fair Value\tNine Months Ended September 30\t\t\n2020\t\t2019\nBeginning balance\t208752\t\t176525\nOriginations and purchases (1)\t4378999\t\t615303\nProceeds from sales\t(4190355)\t\t(581678)\nPrincipal collections\t(21479)\t\t(17155)\nTransfers from (to):\t\t\t\nLoans held for investment at fair value\t1900\t\t1405\nLoans held for sale - Lower of cost or fair value\t0\t\t(1)\nReceivables net\t(62949)\t\t(2248)\nREO (Other assets)\t(2554)\t\t(1501)\nGain on sale of loans\t45762\t\t24005\nIncrease (decrease) in fair value of loans\t1925\t\t(197)\nOther\t6965\t\t(6813)\nEnding balance (1) (2) (3)\t366966\t\t207645\n", "q10k_tbl_29": "Loans Held for Sale - Lower of Cost or Fair Value\tNine Months Ended September 30\t\t\n2020\t\t2019\nBeginning balance\t66517\t\t66097\nPurchases\t0\t\t257611\nProceeds from sales\t(45974)\t\t(183048)\nPrincipal collections\t(1319)\t\t(5802)\nTransfers from (to):\t\t\t\nReceivables net\t61\t\t(78865)\nREO (Other assets)\t0\t\t(2739)\nLoans held for sale - Fair value\t0\t\t1\nGain on sale of loans\t474\t\t3364\nDecrease in valuation allowance\t412\t\t4473\nOther\t3494\t\t6842\nEnding balance (1)\t23665\t\t67934\n", "q10k_tbl_30": "Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nBeginning balance\t6400\t\t10057\t\t6643\t\t11569\nProvision\t(45)\t\t769\t\t1084\t\t1805\nTransfer from Liability for indemnification obligations (Other liabilities)\t42\t\t266\t\t117\t\t340\nSales of loans\t(166)\t\t(3996)\t\t(1613)\t\t(6618)\nEnding balance\t6231\t\t7096\t\t6231\t\t7096\n", "q10k_tbl_31": "Gain on Loans Held for Sale Net\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nGain on sales of loans net\t\t\t\t\t\t\t\nMSRs retained on transfers of forward mortgage loans\t22096\t\t605\t\t37785\t\t2249\nGain on sale of repurchased Ginnie Mae loans\t4663\t\t1364\t\t11036\t\t3154\nGain on sale of forward mortgage loans\t11897\t\t5896\t\t35201\t\t23102\n\t38656\t\t7865\t\t84022\t\t28505\nChange in fair value of IRLCs\t4828\t\t697\t\t16876\t\t401\nChange in fair value of loans held for sale\t3061\t\t610\t\t3367\t\t936\nGain (loss) on economic hedge instruments\t179\t\t(106)\t\t(10141)\t\t(3344)\nOther\t(838)\t\t(54)\t\t(1360)\t\t(186)\n\t45886\t\t9012\t\t92764\t\t26312\n", "q10k_tbl_32": "\tThree Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\tLoans Held for Investment - Reverse Mortgages\tHMBS - Related Borrowings\tLoans Held for Investment - Reverse Mortgages\tHMBS - Related Borrowings\nBeginning balance\t6718992\t(6477616)\t5872407\t(5745383)\nOriginations\t299628\t0\t248877\t0\nSecuritization of HECM loans accounted for as a financing (incl. realized fair value changes)\t0\t(307754)\t0\t(246734)\nRepayments (principal payments received)\t(249372)\t247793\t(151292)\t149079\nTransfers to:\t\t\t\t\nLoans held for sale at fair value\t(781)\t0\t(521)\t0\nReceivables net\t105\t0\t(89)\t0\nREO (Other assets)\t(38)\t0\t(211)\t0\nChange in fair value\t81396\t(68966)\t80071\t(60927)\nEnding Balance\t6849930\t(6606543)\t6049242\t(5903965)\nSecuritized loans (pledged to HMBS-Related Borrowings)\t6715093\t(6606543)\t5960959\t(5903965)\nUnsecuritized loans\t134837\t\t88283\t\nTotal\t6849930\t\t6049242\t\n", "q10k_tbl_33": "\tNine Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\tLoans Held for Investment - Reverse Mortgages\tHMBS - Related Borrowings\tLoans Held for Investment - Reverse Mortgages\tHMBS - Related Borrowings\nBeginning balance\t6269596\t(6063435)\t5472199\t(5380448)\nCumulative effect of fair value election (1)\t47038\t0\t0\t0\nOriginations\t867702\t0\t675169\t0\nSecuritization of HECM loans accounted for as a financing (incl. realized fair value changes)\t0\t(914559)\t0\t(681681)\nRepayments (principal payments received)\t(619486)\t613026\t(383806)\t377094\nTransfers to:\t\t\t\t\nLoans held for sale at fair value\t(1900)\t0\t(1405)\t0\nReceivables net\t(181)\t0\t(202)\t0\nREO (Other assets)\t(403)\t0\t(366)\t0\nChange in fair value\t287564\t(241575)\t287653\t(218930)\nEnding Balance\t6849930\t(6606543)\t6049242\t(5903965)\n", "q10k_tbl_34": "Reverse Mortgage Revenue net\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nGain on new originations (1)\t13545\t5075\t33156\t10422\nChange in fair value of securitized loans held for investment and HMBS-related borrowings net\t(1115)\t14069\t12832\t58301\nLoan fees and other\t2069\t1116\t5067\t4153\n\t14499\t20260\t51055\t72876\n", "q10k_tbl_35": "\tSeptember 30 2020\tDecember 31 2019\nPrincipal and interest\t299355\t414846\nTaxes and insurance\t342704\t422383\nForeclosures bankruptcy REO and other\t196623\t229219\n\t838682\t1066448\nAllowance for losses\t(6078)\t(9925)\nAdvances net\t832604\t1056523\n", "q10k_tbl_36": "\tNine Months Ended September 30\t\n\t2020\t2019\nBeginning balance\t1056523\t1186676\nAsset acquisitions\t14\t1457\nNew advances\t667577\t394964\nSales of advances\t(604)\t(747)\nCollections of advances and other\t(894753)\t(557868)\nNet decrease in allowance for losses (1)\t3847\t13962\nEnding balance\t832604\t1038444\n", "q10k_tbl_37": "Allowance for Losses\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nBeginning balance\t7820\t27653\t9925\t23259\nProvision\t2173\t729\t5944\t4532\nNet charge-offs and other (1)\t(3915)\t(19085)\t(9791)\t(18494)\nEnding balance\t6078\t9297\t6078\t9297\n", "q10k_tbl_38": "MSRs - Fair Value Measurement Method\tThree Months Ended September 30\t\t\t\t\t\t\n2020\t\t\t\t2019\t\t\n\tAgency\tNon-Agency\tTotal\t\tAgency\tNon-Agency\tTotal\nBeginning balance\t305085\t739829\t1044914\t\t745735\t566898\t1312633\nSales and other transfers\t0\t(1)\t(1)\t\t0\t(15)\t(15)\nAdditions:\t\t\t\t\t\t\t\nRecognized on the sale of residential mortgage loans\t22096\t0\t22096\t\t1235\t0\t1235\nPurchase of MSRs\t32249\t0\t32249\t\t9298\t1268\t10566\nServicing transfers and adjustments\t16\t0\t16\t\t0\t(3105)\t(3105)\nChanges in fair value (2):\t\t\t\t\t\t\t\nChanges in valuation inputs or other assumptions\t4074\t13749\t17823\t\t(63360)\t252293\t188933\nRealization of expected future cash flows and other changes\t(23856)\t(24228)\t(48084)\t\t(36898)\t(17796)\t(54694)\nEnding balance\t339664\t729349\t1069013\t\t656010\t799543\t1455553\n", "q10k_tbl_39": "MSRs - Fair Value Measurement Method\tFor the Nine Months Ended September 30\t\t\t\t\t\t\n2020\t\t\t\t2019\t\t\n\tAgency\tNon-Agency\tTotal\t\tAgency\tNon-Agency\tTotal\nBeginning balance\t714006\t772389\t1486395\t\t865587\t591562\t1457149\nSales and other transfers\t0\t(108)\t(108)\t\t(29)\t(556)\t(585)\nAdditions:\t\t\t\t\t\t\t\nRecognized on the sale of residential mortgage loans\t37785\t0\t37785\t\t3933\t0\t3933\nPurchase of MSRs\t78994\t0\t78994\t\t123600\t1355\t124955\nServicing transfers and adjustments (1)\t(263830)\t403\t(263427)\t\t0\t(7872)\t(7872)\nChanges in fair value (2):\t\t\t\t\t\t\t\nChanges in valuation inputs or other assumptions\t(159351)\t20679\t(138672)\t\t(235036)\t264876\t29840\nRealization of expected future cash flows and other changes\t(67940)\t(64014)\t(131954)\t\t(102045)\t(49822)\t(151867)\nEnding balance\t339664\t729349\t1069013\t\t656010\t799543\t1455553\n", "q10k_tbl_40": "\tUPB at\t\t\n\tSeptember 30 2020\tDecember 31 2019\tSeptember 30 2019\nOwned MSRs\t71301427\t70973496\t71372447\nNRZ pledged MSRs (1)\t66782351\t108837877\t113441618\nTotal recognized MSRs\t138083778\t179811373\t184814065\n", "q10k_tbl_41": "Servicing Revenue\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nLoan servicing and subservicing fees\t\t\t\t\t\t\t\nServicing\t53410\t\t61485\t\t161154\t\t170054\nSubservicing\t10324\t\t1365\t\t26143\t\t11775\nNRZ\t91015\t\t146567\t\t299089\t\t443505\n\t154749\t\t209417\t\t486386\t\t625334\nAncillary income\t\t\t\t\t\t\t\nLate charges\t11012\t\t14105\t\t38323\t\t42786\nCustodial accounts (float earnings)\t1057\t\t13464\t\t8787\t\t38739\nLoan collection fees\t3047\t\t3862\t\t10048\t\t11613\nHome Affordable Modification Program (HAMP) fees (1)\t104\t\t1216\t\t532\t\t4558\nOther net\t11753\t\t6453\t\t24369\t\t22063\n\t26973\t\t39100\t\t82059\t\t119759\n\t181722\t\t248517\t\t568445\t\t745093\n", "q10k_tbl_42": "Balance Sheets\tSeptember 30 2020\tDecember 31 2019\nMSRs at fair value (1)\t577309\t915148\nDue from NRZ (Receivables)\t\t\nSales and transfers of MSRs (2)\t0\t24167\nSubservicing fees and reimbursable expenses\t2364\t9197\n\t2364\t33364\nDue to NRZ (Other liabilities)\t95803\t63596\nFinancing liability - MSRs pledged at fair value\t\t\nOriginal Rights to MSRs Agreements\t577309\t603046\n2017 Agreements and New RMSR Agreements (3)\t0\t35445\nPMC MSR Agreements (1)\t0\t312102\n\t577309\t950593\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nStatements of Operations\t\t\t\t\nServicing fees collected on behalf of NRZ (1)\t91015\t146567\t299089\t443505\nLess: Subservicing fee retained by Ocwen (1)\t25674\t35462\t80529\t108774\nNet servicing fees remitted to NRZ\t65341\t111105\t218560\t334731\nLess: Reduction (increase) in financing liability\t\t\t\t\nChanges in fair value:\t\t\t\t\nOriginal Rights to MSRs Agreements\t(10401)\t(228644)\t(18503)\t(230193)\n2017 Agreements and New RMSR Agreements\t0\t(2216)\t(903)\t(4562)\nPMC MSR Agreements (1)\t0\t30156\t40720\t111034\n\t(10401)\t(200704)\t21314\t(123721)\nRunoff and settlement:\t\t\t\t\nOriginal Rights to MSRs Agreements\t15650\t11170\t41572\t31617\n2017 Agreements and New RMSR Agreements\t0\t26705\t35121\t76087\nPMC MSR Agreements (1)\t0\t15881\t7492\t49469\n\t15650\t53756\t84185\t157173\nOther\t2688\t1637\t7377\t(2023)\nPledged MSR liability expense\t57404\t256416\t105684\t303302\n", "q10k_tbl_44": "\tThree Months Ended September 30 2020\t\t\t\nFinancing Liability - MSRs Pledged\tOriginal Rights to MSRs Agreements\t2017 Agreements and New RMSR Agreements\tPMC MSR Agreements\tTotal\nBeginning Balance\t582558\t0\t0\t582558\nChanges in fair value:\t\t\t\t\nOriginal Rights to MSRs Agreements\t10402\t0\t0\t10402\n2017 Agreements and New RMSR Agreements\t0\t0\t0\t0\nPMC MSR Agreements\t0\t0\t0\t0\nRunoff and settlement:\t\t\t\t\nOriginal Rights to MSRs Agreements\t(15651)\t0\t0\t(15651)\n2017 Agreements and New RMSR Agreements\t0\t0\t0\t0\nPMC MSR Agreements\t0\t0\t0\t0\nBalance at September 30 2020\t577309\t0\t0\t577309\n", "q10k_tbl_45": "\tThree Months Ended September 30 2019\t\t\t\nFinancing Liability - MSRs Pledged\tOriginal Rights to MSRs Agreements\t2017 Agreements and New RMSR Agreements\tPMC MSR Agreements\tTotal\nBeginning Balance\t412909\t88103\t343901\t844913\nAdditions\t0\t0\t345\t345\nChanges in fair value:\t\t\t\t\nOriginal Rights to MSRs Agreements\t228643\t0\t0\t228643\n2017 Agreements and New RMSR Agreements\t0\t2216\t0\t2216\nPMC MSR Agreements\t0\t0\t(30156)\t(30156)\nRunoff and settlement:\t\t\t\t\nOriginal Rights to MSRs Agreements\t(11170)\t0\t0\t(11170)\n2017 Agreements and New RMSR Agreements\t0\t(26705)\t0\t(26705)\nPMC MSR Agreements\t0\t0\t(15881)\t(15881)\nCalls (1):\t\t\t\t\nOriginal Rights to MSRs Agreements\t(3095)\t0\t0\t(3095)\n2017 Agreements and New RMSR Agreements\t0\t(2169)\t0\t(2169)\nBalance at September 30 2019\t627287\t61445\t298220\t986952\n", "q10k_tbl_46": "\tNine Months Ended September 30 2020\t\t\t\nFinancing Liability - MSRs Pledged\tOriginal Rights to MSRs Agreements\t2017 Agreements and New RMSR Agreements\tPMC MSR Agreements\tTotal\nBeginning Balance\t603046\t35445\t312102\t950593\nAdditions\t0\t0\t0\t0\nReceipt of lump-sum cash payments\t0\t0\t0\t0\nSales\t0\t0\t(226)\t(226)\nChanges in fair value:\t\t\t\t\nOriginal Rights to MSRs Agreements\t18503\t0\t0\t18503\n2017 Agreements and New RMSR Agreements\t0\t903\t0\t903\nPMC MSR Agreements\t0\t0\t(40720)\t(40720)\nRunoff and settlement:\t\t\t\t\nOriginal Rights to MSRs Agreements\t(41572)\t0\t0\t(41572)\n2017 Agreements and New RMSR Agreements\t0\t(35121)\t0\t(35121)\nPMC MSR Agreements\t0\t0\t(7492)\t(7492)\nDerecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements\t0\t0\t(263664)\t(263664)\nCalls (1):\t\t\t\t\nOriginal Rights to MSRs Agreements\t(2668)\t0\t0\t(2668)\n2017 Agreements and New RMSR Agreements\t0\t(1227)\t0\t(1227)\nBalance at September 30 2020\t577309\t0\t0\t577309\n", "q10k_tbl_47": "\tNine Months Ended September 30 2019\t\t\t\nFinancing Liability - MSRs Pledged\tOriginal Rights to MSRs Agreements\t2017 Agreements and New RMSR Agreements\tPMC MSR Agreements\tTotal\nBeginning Balance\t436511\t138854\t457491\t1032856\nPurchases\t0\t0\t1221\t1221\nSales\t0\t0\t11\t11\nChanges in fair value:\t\t\t\t\nOriginal Rights to MSRs Agreements\t230193\t0\t0\t230193\n2017 Agreements and New RMSR Agreements\t0\t4562\t0\t4562\nPMC MSR Agreements\t0\t0\t(111034)\t(111034)\nRunoff and settlement:\t\t\t\t\nOriginal Rights to MSRs Agreements\t(31617)\t0\t0\t(31617)\n2017 Agreements and New RMSR Agreements\t0\t(76087)\t0\t(76087)\nPMC MSR Agreements\t0\t0\t(49469)\t(49469)\nCalls (1):\t\t\t\t\nOriginal Rights to MSRs Agreements\t(7800)\t0\t0\t(7800)\n2017 Agreements and New RMSR Agreements\t0\t(5884)\t0\t(5884)\nBalance at September 30 2019\t627287\t61445\t298220\t986952\n", "q10k_tbl_48": "\tSeptember 30 2020\tDecember 31 2019\nServicing-related receivables:\t\t\nGovernment-insured loan claims - Forward\t107917\t122557\nGovernment-insured loan claims - Reverse\t43681\t14123\nSales and transfers of MSRs - Due from NRZ\t0\t24167\nSubservicing fees and reimbursable expenses - Due from NRZ\t2364\t9197\nReimbursable expenses\t5604\t13052\nDue from custodial accounts\t8212\t27175\nOther\t1869\t4970\n\t169647\t215241\nIncome taxes receivable (1)\t68683\t37888\nOther receivables\t4795\t5963\n\t243125\t259092\nAllowance for losses\t(41518)\t(57872)\n\t201607\t201220\n", "q10k_tbl_49": "Allowance for Losses - Government-Insured Loan Claims\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nBeginning balance (1)\t53310\t\t50511\t\t56868\t\t52497\nProvision\t5055\t\t11013\t\t12249\t\t22819\nCharge-offs and other net\t(17607)\t\t(8349)\t\t(28359)\t\t(22141)\nEnding balance\t40758\t\t53175\t\t40758\t\t53175\n", "q10k_tbl_50": "\tSeptember 30 2020\tDecember 31 2019\nContingent loan repurchase asset\t580599\t492900\nDerivatives at fair value\t22843\t6007\nPrepaid expenses\t15791\t21996\nPrepaid representation warranty and indemnification claims - Agency MSR sale\t15173\t15173\nPrepaid lender fees net\t10767\t8647\nREO\t8354\t8556\nSecurity deposits\t2181\t2163\nDeferred tax asset net\t1821\t2169\nMortgage backed securities at fair value\t2150\t2075\nInterest-earning time deposits\t377\t390\nOther\t2412\t3164\n\t662468\t563240\n", "q10k_tbl_51": "Advance Match Funded Liabilities\t\tBorrowing Capacity\t\tSeptember 30 2020\t\tDecember 31 2019\t\nBorrowing Type\tMaturity (1)\tAmorti- zation Date (1)\tTotal\tAvailable (2)\tWeighted Average Interest Rate\tBalance\tWeighted Average Interest Rate\t\t\t\tBalance\t\t\nAdvance Receivables Backed Notes - Series 2015-VF5 (3)\tJun. 2051\tJun. 2021\t250000\t158080\t4.28%\t91920\t3.36%\t\t\t\t190555\t\t\nAdvance Receivables Backed Notes Series 2019-T1 (4)\tAug. 2050\tAug. 2020\t0\t0\t0\t0\t2.62%\t\t\t\t185000\t\t\nAdvance Receivables Backed Notes Series 2019-T2 (4)\tAug. 2051\tAug. 2021\t0\t0\t0\t0\t2.53%\t\t\t\t285000\t\t\nAdvance Receivables Backed Notes Series 2020-T1 (4)\tAug. 2052\tAug. 2022\t475000\t0\t1.49%\t475000\t-%\t\t\t\t0\t\t\nTotal Ocwen Master Advance Receivables Trust (OMART)\t\t725000\t158080\t1.94%\t566920\t2.79%\t660555\nOcwen Freddie Advance Funding (OFAF) - Advance Receivables Backed Notes Series 2015-VF1 (5)\tJun. 2051\tJun. 2021\t70000\t56842\t3.28%\t13158\t3.53%\t\t\t\t18554\t\t\n\t\t\t795000\t214922\t1.97%\t580078\t2.81%\t\t\t\t679109\t\t\n", "q10k_tbl_52": "Financing Liabilities\t\t\t\tOutstanding Balance\t\nBorrowing Type\tCollateral\tInterest Rate\tMaturity\tSeptember 30 2020\tDecember 31 2019\nHMBS-related borrowings at fair value (1)\tLoans held for investment\t1ML + 260 bps\t(1)\t6606543\t6063435\nOther financing liabilities at fair value\t\t\t\t\t\nMSRs pledged (Rights to MSRs) at fair value:\t\t\t\t\t\nOriginal Rights to MSRs Agreements\tMSRs\t(2)\t(2)\t577309\t603046\n2017 Agreements and New RMSR Agreements\tMSRs\t(3)\t(3)\t0\t35445\nPMC MSR Agreements\tMSRs\t(4)\t(4)\t0\t312102\n\t\t\t\t577309\t950593\nFinancing liability - Owed to securitization investors at fair value:\t\t\t\t\t\nIndyMac Mortgage Loan Trust (INDX 2004-AR11) (5)\tLoans held for investment\t(5)\t(5)\t0\t9794\nResidential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (5)\tLoans held for investment\t(5)\t(5)\t11012\t12208\n\t\t\t\t11012\t22002\nTotal Other financing liabilities at fair value\t\t\t\t588321\t972595\n\t\t\t\t7194864\t7036030\n", "q10k_tbl_53": "Other Secured Borrowings\t\t\t\tAvailable Borrowing Capacity\t\tOutstanding Balance\t\nBorrowing Type\tCollateral\tInterest Rate (1)\tMaturity\tUncommitted\tCommitted (2)\tSeptember 30 2020\tDecember 31 2019\nSSTL (3)\t(3)\t1-Month Euro-dollar rate + 600 bps with a Eurodollar floor of 100 bps (3)\tMay 2022\t0\t0\t190000\t326066\nMaster repurchase agreement (4)\tLoans held for sale (LHFS)\t1ML + 220 - 375 bps\tJune 2021\t19756\t0\t155244\t91573\nMortgage warehouse agreement (5)\tLHFS (reverse)\tGreater of 1ML + 250 bps or 3.50%; LIBOR Floor 0%\tAugust 2021\t1000\t0\t0\t72443\nMaster repurchase agreement (6)\tLHFS (forward and reverse)\t1ML + 225 bps forward; 1ML + 275 bps reverse\tDec. 2020\t50000\t8869\t191131\t139227\nMaster repurchase agreement (7)\tLHFS (reverse)\tPrime + 0.0%; 4.0% floor\tJanuary 2020\t0\t0\t0\t898\nMaster repurchase agreement (8)\tN/A\t1ML + 180 bps; LIBOR Floor 35 bps\tN/A\t50000\t0\t0\t0\nParticipation agreement (9)\tLHFS\t(9)\tJune 2021\t120000\t0\t0\t17304\nMaster repurchase agreement (9)\tLHFS\t(9)\tJune 2021\t0\t76497\t13503\t0\nMaster repurchase agreement\tLHFS\t1 ML + 250 bps\tMarch 2021\t0\t1000\t0\t0\nMortgage warehouse agreement (10)\tLHFS\t1ML + 350 bps; LIBOR Floor 525 bps\tDec. 2020\t0\t48211\t1789\t10780\nMortgage warehouse agreement (11)\tLHFS (reverse)\t1ML + 250 bps; 3.50% floor\tNov. 2020\t19904\t0\t80096\t0\nMortgage warehouse agreement (12)\tLHFS\t(12)\tN/A\t100000\t0\t0\t0\nTotal mortgage loan warehouse facilities\t\t\t\t360660\t134577\t441763\t332225\n", "q10k_tbl_54": "Other Secured Borrowings\t\t\t\tAvailable Borrowing Capacity\t\tOutstanding Balance\t\nBorrowing Type\tCollateral\tInterest Rate (1)\tMaturity\tUncommitted\tCommitted (2)\tSeptember 30 2020\tDecember 31 2019\nAgency MSR financing facility (13)\tMSRs Advances\t1ML + 450 bps\tJune 2021\t0\t136071\t113929\t147706\nGinnie Mae MSR financing facility (14)\tMSRs Advances\t1ML + 395 bps\tDec. 2020\t74947\t0\t52553\t72320\nOcwen Excess Spread-Collateralized Notes Series 2019-PLS1 (15)\tMSRs\t5.07%\tNov. 2024\t0\t0\t74021\t94395\nSecured Notes Ocwen Asset Servicing Income Series Series 2014-1 (16)\tMSRs\t(15)\tFeb. 2028\t0\t0\t50168\t57594\nTotal MSR financing facilities\t\t\t\t74947\t136071\t290671\t372015\n\t\t\t\t435607\t270648\t922434\t1030306\nUnamortized debt issuance costs - SSTL and PLS Notes\t\t\t\t\t\t(6712)\t(3381)\nDiscount - SSTL\t\t\t\t\t\t(430)\t(1134)\n\t\t\t\t\t\t915292\t1025791\nWeighted average interest rate\t\t\t\t\t4.51%\t4.74%\n", "q10k_tbl_55": "Senior Notes\tInterest Rate\tMaturity\tOutstanding Balance\t\n\tSeptember 30 2020\tDecember 31 2019\nSenior unsecured notes (1)\t6.375%\tAug. 2021\t21543\t21543\n\t\t\t21543\t21543\nSenior secured notes\t8.375%\tNov. 2022\t291509\t291509\n\t\t\t313052\t313052\nUnamortized debt issuance costs\t\t\t(1098)\t(1470)\nFair value adjustments (1)\t\t\t(265)\t(497)\n\t\t\t311689\t311085\n", "q10k_tbl_56": "\t\tCollateral for Secured Borrowings\t\t\t\t\n\tTotal Assets\tAdvance Match Funded Liabilities\tFinancing Liabilities\tMortgage Loan Warehouse / MSR Facilities\tSales and Other Commitments (1)\tOther (2)\nCash\t321455\t0\t0\t0\t0\t321455\nRestricted cash\t61511\t10458\t0\t4416\t46637\t0\nMSRs (3)\t1069013\t0\t577886\t490583\t0\t48\nAdvances net\t832604\t660816\t0\t61081\t0\t110707\nLoans held for sale\t390631\t0\t0\t335726\t0\t54905\nLoans held for investment\t6860942\t0\t6726105\t95619\t0\t39218\nReceivables net\t201607\t0\t0\t52417\t0\t149190\nPremises and equipment net\t23620\t0\t0\t0\t0\t23620\nOther assets\t662468\t0\t0\t7077\t597953\t57438\nTotal assets\t10423851\t671274\t7303991\t1046919\t644590\t756581\n", "q10k_tbl_57": "\tSeptember 30 2020\tDecember 31 2019\nContingent loan repurchase liability\t580599\t492900\nDue to NRZ - Advance collections servicing fees and other\t95803\t63596\nOther accrued expenses\t71093\t67241\nLiability for indemnification obligations\t44170\t52785\nServicing-related obligations\t40659\t88167\nLease liability\t34426\t44488\nAccrued legal fees and settlements\t31015\t30663\nChecks held for escheat\t29106\t31959\nAccrued interest payable\t13891\t5964\nLiability for unfunded pension obligation\t11734\t13383\nLiability for uncertain tax positions\t17123\t17197\nLiability for unfunded India gratuity plan\t5416\t5331\nDerivatives at fair value\t1671\t100\nLiability for mortgage insurance contingency\t0\t6820\nOther\t20755\t21579\n\t997461\t942173\n", "q10k_tbl_58": "\tSeptember 30 2020\t\t\tDecember 31 2019\t\t\n\tMaturities\tNotional\tFair value\tMaturities\tNotional\tFair value\nDerivative Assets\t\t\t\t\t\t\nForward sales of Reverse loans\tNov. 2020\t20000\t31\tJan. 2020\t40000\t8\nForward loans IRLCs\tOct. to Dec. 2020\t857257\t21606\tMar. 2020\t204020\t4745\nReverse loans IRLCs\tOct. 2020\t30977\t1073\tJan. 2020\t28546\t133\nTBA forward MBS trades\tOct. to Nov. 2020\t400000\t117\tJan to Mar. 2020\t1200000\t1121\nOther\tn/a\t0\t16\tn/a\t0\t0\nTotal\t\t1308234\t22843\t\t1472566\t6007\nDerivative Liabilities\t\t\t\t\t\t\nForward sales of Reverse loans\tOct. 2020\t60000\t(114)\tJan. 2020\t20000\t(29)\nTBA forward MBS trades\tOct. to Nov. 2020\t190000\t(696)\tn/a\t0\t0\nInterest rate swap futures\tDec. 2020\t355000\t(213)\tn/a\t0\t0\nBorrowings - interest rate caps\tn/a\t0\t0\tMay 2020\t27083\t0\nOther\tn/a\t0\t(648)\tn/a\t0\t(71)\nTotal\t\t605000\t(1671)\t\t47083\t(100)\n", "q10k_tbl_59": "\tNine Months Ended September 30 2020\t\tNine Months Ended September 30 2019\t\n\tGain / (Loss)\t\tGain / (Loss)\t\n\tAmount\tFinancial Statement Line\tAmount\tFinancial Statement Line\nDerivative Assets (Liabilities)\t\t\t\t\nForward loans IRLCs\t16860\tGain on loans held for sale net\t401\tGain on loans held for sale net\nReverse loans IRLCs\t940\tReverse mortgage revenue net\t802\tReverse mortgage revenue net\nForward LHFS trades\t0\t\t(3689)\tGain on loans held for sale net\nInterest rate swap futures and TBA forward MBS trades\t(9564)\tGain on loans held for sale net (Economic hedge)\t345\tGain on loans held for sale net (Economic hedge)\nInterest rate swap futures and TBA forward MBS trades\t39258\tMSR valuation adjustments net\t322\tMSR valuation adjustments net\nForward sales of Reverse loans\t(62)\tReverse mortgage revenue net\t106\tReverse mortgage revenue net\nBorrowings - interest rate caps\t0\tOther net\t(358)\tOther net\nOther\t(561)\tGain on loans held for sale net\t(220)\t\nTotal\t46871\t\t(2291)\t\n", "q10k_tbl_60": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nOther secured borrowings\t12246\t\t12918\t\t39171\t\t31933\nSenior notes\t6658\t\t8039\t\t19977\t\t25053\nAdvance match funded liabilities\t6565\t\t6165\t\t19541\t\t20862\nOther\t1346\t\t2384\t\t4868\t\t6788\n\t26815\t\t29506\t\t83557\t\t84636\n", "q10k_tbl_61": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nBasic earnings (loss) per share\t\t\t\t\t\t\t\nNet loss\t(9420)\t\t(42767)\t\t(32955)\t\t(176998)\nWeighted average shares of common stock\t8669550\t\t8973053\t\t8770102\t\t8955288\nBasic loss per share\t(1.09)\t\t(4.77)\t\t(3.76)\t\t(19.76)\nDiluted earnings (loss) per share\t\t\t\t\t\t\t\nNet loss\t(9420)\t\t(42767)\t\t(32955)\t\t(176998)\nWeighted average shares of common stock\t8669550\t\t8973053\t\t8770102\t\t8955288\nEffect of dilutive elements\t\t\t\t\t\t\t\nStock option awards\t0\t\t0\t\t0\t\t0\nCommon stock awards\t0\t\t0\t\t0\t\t0\nDilutive weighted average shares of common stock\t8669550\t\t8973053\t\t8770102\t\t8955288\nDiluted loss per share\t(1.09)\t\t(4.77)\t\t(3.76)\t\t(19.76)\nStock options and common stock awards excluded from the computation of diluted loss per share\t\t\t\t\t\t\t\nAnti-dilutive (1)\t193144\t\t196875\t\t218020\t\t222870\nMarket-based (2)\t125395\t\t60147\t\t125395\t\t60147\n", "q10k_tbl_62": "\tThree Months Ended September 30 2020\t\t\nResults of Operations\tServicing\tOriginations\tCorporate Items and Other\t\t\t\tBusiness Segments Consolidated\t\t\nRevenue (1)\t185892\t53755\t9388\t\t\t\t249035\t\t\nMSR valuation adjustments net (1)\t(38356)\t12375\t(7833)\t\t\t\t(33814)\t\t\nOperating expenses (2)\t79522\t35421\t34579\t\t\t\t149522\t\t\nOther (expense) income:\t\t\t\t\t\t\t\t\t\nInterest income\t872\t2717\t212\t\t\t\t3801\t\t\nInterest expense\t(21421)\t(3163)\t(2231)\t\t\t\t(26815)\t\t\nPledged MSR liability expense\t(57434)\t0\t30\t\t\t\t(57404)\t\t\nOther\t2211\t197\t937\t\t\t\t3345\t\t\nOther expense net\t(75772)\t(249)\t(1052)\t\t\t\t(77073)\t\t\nIncome (loss) before income taxes\t(7758)\t30460\t(34076)\t\t\t\t(11374)\t\t\n", "q10k_tbl_63": "\tThree Months Ended September 30 2019\t\t\nResults of Operations\tServicing\tOriginations\tCorporate Items and Other\t\t\t\tBusiness Segments Consolidated\t\t\nRevenue\t250224\t29502\t3789\t\t\t\t283515\t\t\nMSR valuation adjustments net\t134617\t(56)\t0\t\t\t\t134561\t\t\nOperating expenses (2)\t135507\t20609\t23169\t\t\t\t179285\t\t\nOther (expense) income:\t\t\t\t\t\t\t\t\t\nInterest income\t2105\t1688\t336\t\t\t\t4129\t\t\nInterest expense\t(26087)\t(2133)\t(1286)\t\t\t\t(29506)\t\t\nPledged MSR liability expense\t(256499)\t0\t83\t\t\t\t(256416)\t\t\nGain on repurchase of senior secured notes\t0\t0\t5099\t\t\t\t5099\t\t\nOther\t3917\t498\t(4829)\t\t\t\t(414)\t\t\nOther (expense) income net\t(276564)\t53\t(597)\t\t\t\t(277108)\t\t\nIncome (loss) before income taxes\t(27230)\t8890\t(19977)\t\t\t\t(38317)\t\t\n\tNine Months Ended September 30 2020\t\t\nResults of Operations\tServicing\tOriginations\tCorporate Items and Other\t\t\t\tBusiness Segments Consolidated\t\t\nRevenue (1)\t579883\t136947\t13071\t\t\t\t729901\t\t\nMSR valuation adjustments net (1)\t(249396)\t25861\t(7833)\t\t\t\t(231368)\t\t\nOperating expenses (2)\t242735\t91129\t97681\t\t\t\t431545\t\t\nOther (expense) income:\t\t\t\t\t\t\t\t\t\nInterest income\t4196\t6857\t1709\t\t\t\t12762\t\t\nInterest expense\t(67923)\t(8423)\t(7211)\t\t\t\t(83557)\t\t\nPledged MSR liability expense\t(105771)\t0\t87\t\t\t\t(105684)\t\t\nOther\t8332\t167\t(3883)\t\t\t\t4616\t\t\nOther expense net\t(161166)\t(1399)\t(9298)\t\t\t\t(171863)\t\t\nIncome (loss) before income taxes\t(73414)\t70280\t(101741)\t\t\t\t(104875)\t\t\n", "q10k_tbl_64": "\tNine Months Ended September 30 2019\t\t\nResults of Operations\tServicing\tOriginations\tCorporate Items and Other\t\t\t\tBusiness Segments Consolidated\t\t\nRevenue\t752010\t99386\t10345\t\t\t\t861741\t\t\nMSR valuation adjustments net\t(121497)\t(208)\t0\t\t\t\t(121705)\t\t\nOperating expenses (2) (3)\t435377\t62813\t36428\t\t\t\t534618\t\t\nOther (expense) income:\t\t\t\t\t\t\t\t\t\nInterest income\t6270\t4783\t1471\t\t\t\t12524\t\t\nInterest expense\t(77328)\t(5200)\t(2108)\t\t\t\t(84636)\t\t\nPledged MSR liability expense\t(303385)\t0\t83\t\t\t\t(303302)\t\t\nGain on repurchase of senior secured notes\t0\t0\t5099\t\t\t\t5099\t\t\nOther\t6332\t1161\t(6330)\t\t\t\t1163\t\t\nOther (expense) income net\t(368111)\t744\t(1785)\t\t\t\t(369152)\t\t\nIncome (loss) before income taxes\t(172975)\t37109\t(27868)\t\t\t\t(163734)\t\t\n", "q10k_tbl_65": "Total Assets\tServicing\tOriginations\tCorporate Items and Other\tBusiness Segments Consolidated\nSeptember 30 2020\t2694561\t7259257\t470033\t10423851\nDecember 31 2019\t3378515\t6459367\t568317\t10406199\nSeptember 30 2019\t3227245\t6225394\t504014\t9956653\n", "q10k_tbl_66": "Depreciation and Amortization Expense\tServicing\tOriginations\tCorporate Items and Other\tBusiness Segments Consolidated\nThree months ended September 30 2020\t\t\t\t\nDepreciation expense\t219\t31\t4055\t4305\nAmortization of debt issuance costs and discount\t115\t0\t1039\t1154\nThree months ended September 30 2019\t\t\t\t\nDepreciation expense\t105\t(32)\t6386\t6459\nAmortization of debt issuance costs and discount\t0\t0\t1146\t1146\nNine Months Ended September 30 2020\t\t\t\t\nDepreciation expense\t652\t102\t14644\t15398\nAmortization of debt issuance costs and discount\t343\t0\t4992\t5335\nNine months ended September 30 2019\t\t\t\t\nDepreciation expense\t1674\t49\t24297\t26020\nAmortization of debt issuance costs and discount\t0\t0\t3299\t3299\n", "q10k_tbl_67": "Ocwen servicer of record (MSR title retained by Ocwen) - Ocwen MSR (1) (2)\t15060347\nNRZ servicer of record (MSR title transferred to NRZ) - Ocwen MSR (1)\t51722004\nNRZ PMC Subservicing Agreement subject to termination (3)\t16007995\nOcwen subservicer\t2802967\nTotal NRZ UPB at September 30 2020\t85593313\n", "q10k_tbl_68": "\tAs of September 30 2020\t\t\t\tAs of June 30 2020\nNumber of Forbearance Plans (3)\t\tEstimated Monthly P&I Advance Obligation ($ million)\t\tNumber of Forbearance Plans (3)\t\tEstimated Monthly P&I Advance Obligation ($ million)\t\t\nGSE loans\t5300\t\t6.5\t\t6600\t\t\t\t8.3\t\t\nGinnie Mae loans\t10100\t\t9.2\t\t9900\t\t\t\t9.2\t\t\nPLS loans\t14500\t\t21.0\t\t18000\t\t\t\t26.5\t\t\nServicer\t29900\t\t36.7\t\t34500\t\t\t\t44.0\t\t\nGSE loans\t900\t\t0.9\t\t10100\t\t\t\t11.0\t\t\nPLS loans\t64100\t\t60.0\t\t73800\t\t\t\t70.8\t\t\nNRZ's responsibility (1)\t65000\t\t60.9\t\t83900\t\t\t\t81.8\t\t\nSubservicer (2)\t8000\t\t9.8\t\t7600\t\t\t\t10.1\t\t\nNo advance requirements\t3400\t\t0\t\t5400\t\t\t\t0\t\t\nTotal\t106300\t\t107.4\t\t131400\t\t\t\t135.9\t\t\n", "q10k_tbl_69": "\tNine Months Ended September 30 2020\t\t\t\t\t\n\tActive\t\tInactive\t\tTotal\t\n\tNumber\tAmount\tNumber\tAmount\tNumber\tAmount\nBeginning balance\t62\t10546\t258\t25147\t320\t35693\nAdditions (1)\t159\t40875\t219\t32789\t378\t73664\nRecoveries net (2)\t(7)\t(9492)\t(26)\t(8480)\t(33)\t(17972)\nTransfers\t(10)\t(2933)\t10\t2933\t0\t0\nChanges in value\t0\t43\t0\t(2576)\t0\t(2533)\nEnding balance\t204\t39039\t461\t49813\t665\t88852\n", "q10k_tbl_70": "\tNine Months Ended September 30\t\n\t2020\t2019\nBeginning balance (1)\t50838\t49267\nProvision (reversal) for representation and warranty obligations\t(1141)\t(10367)\nNew production reserves\t1361\t186\nCharge-offs and other (2)\t(8130)\t14887\nEnding balance (1)\t42928\t53973\n", "q10k_tbl_71": " in billions\tUPB\t\t\t\n\tQuarter Ended September 30 2020\tQuarter Ended June 30 2020\tQuarter Ended March 31 2020\tQuarter Ended December 31 2019\nMortgage servicing originations\t\t\t\t\nRecapture MSR (1)\t0.37\t0.32\t0.20\t0.17\nCorrespondent MSR (1)\t1.93\t0.66\t0.51\t0.40\nFlow and GSE Cash Window MSR purchases (3)\t4.20\t2.84\t1.34\t0.79\nReverse mortgage servicing (2)\t0.23\t0.21\t0.23\t0.26\nTotal servicing originations\t6.72\t4.03\t2.28\t1.62\nBulk MSR purchases (3)\t0\t0\t1.54\t2.74\nTotal servicing additions\t6.72\t4.03\t3.82\t4.36\nSubservicing additions (4)\t4.43\t4.59\t3.14\t3.79\nTotal servicing and subservicing UPB additions (2)\t11.15\t8.62\t6.96\t8.15\n", "q10k_tbl_72": "Results of Operations Summary\tThree Months Ended September 30\t\t\t% Change\tNine Months Ended September 30\t\t% Change\n2020\t\t2019\t\t2020\t2019\t\nRevenue\t\t\t\t\t\t\t\nServicing and subservicing fees\t181.7\t\t248.5\t(27)%\t568.4\t745.1\t(24)%\nReverse mortgage revenue net\t14.5\t\t20.3\t(29)\t51.1\t72.9\t(30)%\nGain on loans held for sale net\t45.9\t\t9.0\t410\t92.8\t26.3\t253\nOther revenue net\t6.9\t\t5.7\t21\t17.6\t17.5\t1\nTotal revenue\t249.0\t\t283.5\t(12)\t729.9\t861.8\t(15)\nMSR valuation adjustments net\t(33.8)\t\t134.6\t(125)\t(231.4)\t(121.7)\t90\nOperating expenses\t\t\t\t\t\t\t\nCompensation and benefits\t69.6\t\t73.4\t(5)\t195.4\t250.4\t(22)\nServicing and origination\t22.9\t\t36.6\t(37)\t60.5\t86.8\t(30)\nProfessional services\t28.4\t\t36.6\t(22)\t77.8\t77.2\t1\nTechnology and communications\t15.9\t\t16.6\t(4)\t47.2\t61.1\t(23)\nOccupancy and equipment\t9.6\t\t17.3\t(45)\t37.7\t52.6\t(28)\nOther expenses\t3.2\t\t(1.3)\t(346)\t13.0\t6.6\t97\nTotal operating expenses\t149.5\t\t179.3\t(17)\t431.5\t534.7\t(19)\nOther income (expense)\t\t\t\t\t\t\t\nInterest income\t3.8\t\t4.1\t(7)\t12.8\t12.5\t2\nInterest expense\t(26.8)\t\t(29.5)\t(9)\t(83.6)\t(84.6)\t(1)\nPledged MSR liability expense net\t(57.4)\t\t(256.4)\t(78)\t(105.7)\t(303.3)\t(65)\nGain on repurchase of senior secured notes\t0\t\t5.1\t(100)\t0\t5.1\t(100)\nOther net\t3.3\t\t(0.4)\t(925)\t4.6\t1.2\t283\nTotal other expense net\t(77.1)\t\t(277.1)\t(72)\t(171.9)\t(369.1)\t(53)\nLoss before income taxes\t(11.4)\t\t(38.3)\t(70)\t(104.9)\t(163.7)\t(36)\nIncome tax (benefit) expense\t(2.0)\t\t4.5\t(144)\t(71.9)\t13.3\t(641)\nNet loss\t(9.4)\t\t(42.8)\t(78)\t(33.0)\t(177.0)\t(81)\nSegment income (loss) before income taxes\t\t\t\t\t\t\t\nServicing\t(7.8)\t\t(27.2)\t(71)%\t(73.4)\t(173.0)\t(58)%\nOriginations\t30.5\t\t8.9\t243\t70.3\t37.1\t89\nCorporate Items and Other\t(34.1)\t\t(20.0)\t71\t(101.7)\t(27.9)\t265\n\t(11.4)\t\t(38.3)\t(70)%\t(104.9)\t(163.7)\t(36)%\n", "q10k_tbl_73": "Financial Condition Summary\tSeptember 30 2020\tDecember 31 2019\t Change\t% Change\nCash\t321.5\t428.3\t(106.8)\t(25)%\nRestricted cash\t61.5\t64.0\t(2.5)\t(4)\nMSRs at fair value\t1069.0\t1486.4\t(417.4)\t(28)\nAdvances net\t832.6\t1056.5\t(223.9)\t(21)\nLoans held for sale\t390.6\t275.3\t115.3\t42\nLoans held for investment at fair value\t6860.9\t6292.9\t568.0\t9\nReceivables\t201.6\t201.2\t0.4\t0\nOther assets\t686.1\t601.5\t84.6\t14\nTotal assets\t10423.9\t10406.2\t17.7\t-%\nTotal Assets by Segment\t\t\t\t\nServicing\t2694.6\t3378.5\t(683.9)\t(20)%\nOriginations\t7259.3\t6459.4\t799.9\t12\nCorporate Items and Other\t470.0\t568.3\t(98.3)\t(17)\n\t10423.9\t10406.2\t17.7\t-%\nHMBS-related borrowings at fair value\t6606.5\t6063.4\t543.1\t9%\nAdvance match funded liabilities\t580.1\t679.1\t(99.0)\t(15)\nOther financing liabilities at fair value\t588.3\t972.6\t(384.3)\t(40)\nSSTL and other secured borrowings net\t915.3\t1025.8\t(110.5)\t(11)\nSenior notes net\t311.7\t311.1\t0.6\t0\nOther liabilities\t997.5\t942.2\t55.3\t6\nTotal liabilities\t9999.4\t9994.2\t5.2\t-%\nTotal stockholders' equity\t424.5\t412.0\t12.5\t3\nTotal liabilities and equity\t10423.9\t10406.2\t17.7\t-%\nTotal Liabilities by Segment\t\t\t\t\nServicing\t2297.5\t2862.1\t(564.6)\t(20)%\nOriginations\t7058.1\t6347.2\t710.9\t11\nCorporate Items and Other\t643.7\t785.0\t(141.3)\t(18)\n\t9999.4\t9994.2\t5.2\t-%\nBook value per share (1)\t48.95\t45.83\t3.12\t7%\n", "q10k_tbl_74": "\tPHH Mortgage Corporation\t\t\n\tMoody's\tS&P\tFitch\nResidential Prime Servicer\tSQ3\tAverage\tRPS3\nResidential Subprime Servicer\tSQ3\tAverage\tRPS3\nResidential Special Servicer\tSQ3\tAverage\tRSS3\nResidential Second/Subordinate Lien Servicer\tSQ3\tAverage\tRPS3\nResidential Home Equity Servicer\t0\t0\tRPS3\nResidential Alt-A Servicer\t0\t0\tRPS3\nMaster Servicer\tSQ3\tAverage\tRMS3\nRatings Outlook\tN/A\tStable\tNegative\nDate of last action\tAugust 29 2019\tDecember 27 2019\tMarch 24 2020\n", "q10k_tbl_75": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nRevenue\t\t\t\t\t\t\nServicing and subservicing fees\t\t\t\t\t\t\nResidential\t177.3\t247.1\t(28)\t562.5\t740.8\t(24)\nCommercial\t1.1\t1.1\t0\t2.5\t3.0\t(17)\n\t178.4\t248.2\t(28)\t565.0\t743.8\t(24)\nGain on loans held for sale net\t6.2\t1.1\t464\t11.7\t4.1\t185\nOther revenue net\t1.2\t0.9\t33\t3.2\t4.2\t(24)\nTotal revenue\t185.9\t250.2\t(26)\t579.9\t752.0\t(23)\nMSR valuation adjustments net\t(38.4)\t134.6\t(129)\t(249.4)\t(121.5)\t105\nOperating expenses\t\t\t\t\t\t\nCompensation and benefits\t28.9\t35.1\t(18)\t84.4\t116.3\t(27)\nServicing and origination\t16.2\t31.6\t(49)\t43.9\t73.7\t(40)\nOccupancy and equipment\t6.8\t10.7\t(36)\t24.1\t35.1\t(31)\nProfessional services\t5.6\t12.8\t(56)\t19.5\t35.3\t(45)\nTechnology and communications\t6.0\t6.5\t(8)\t20.0\t23.6\t(15)\nCorporate overhead allocations\t14.4\t45.6\t(68)\t48.3\t156.9\t(69)\nOther expenses\t1.7\t(6.8)\t(125)\t2.6\t(5.7)\t(146)\nTotal operating expenses\t79.5\t135.5\t(41)\t242.7\t435.4\t(44)\nOther income (expense)\t\t\t\t\t\t\nInterest income\t0.9\t2.1\t(57)\t4.2\t6.3\t(33)\nInterest expense (1)\t(21.4)\t(26.1)\t(18)\t(67.9)\t(77.3)\t(12)\nPledged MSR liability expense\t(57.4)\t(256.5)\t(78)\t(105.8)\t(303.4)\t(65)\nOther net\t2.2\t3.9\t(44)\t8.3\t6.3\t32\nTotal other expense net\t(75.8)\t(276.6)\t(73)\t(161.2)\t(368.1)\t(56)\nLoss before income taxes\t(7.8)\t(27.2)\t(71)%\t(73.4)\t(173.0)\t(58)%\n", "q10k_tbl_76": "\tSeptember 30\t\t\n\t2020\t2019\t% Change\nResidential Assets Serviced\t\t\t\nUnpaid principal balance (UPB) in billions:\t\t\t\nPerforming loans (2)\t173.6\t204.4\t(15)%\nNon-performing loans\t11.1\t10.0\t11\nNon-performing real estate\t1.2\t2.3\t(48)\nTotal (1)\t185.9\t216.8\t(14)%\nConventional loans (3)\t72.9\t97.0\t(25)%\nGovernment-insured loans\t33.9\t29.8\t14\nNon-Agency loans\t79.0\t89.9\t(12)\nTotal (1)\t185.9\t216.8\t(14)%\nServicing portfolio\t78.5\t76.5\t3%\nSubservicing portfolio\t21.8\t23.2\t(6)\nNRZ (4)\t85.6\t117.1\t(27)\nTotal (1)\t185.9\t216.8\t(14)\nPrepayment speed (CPR) (5):\t\t\t\n3-month % Voluntary CPR\t17.6%\t14.1%\t25\n9-month % Voluntary CPR\t14.2\t10.8\t31\n3-month % Involuntary CPR\t1.8\t1.4\t29\n9-month % Involuntary CPR\t1.4\t1.5\t(7)\nTotal 3-month % CPR\t23.0%\t18.8%\t22\nTotal 9-month % CPR\t19.1%\t15.5%\t23\nNumber:\t\t\t\nPerforming loans (2)\t1138040\t1371781\t(17)%\nNon-performing loans\t55886\t66003\t(15)\nNon-performing real estate\t8305\t13869\t(40)\nTotal (1)\t1202231\t1451653\t(17)%\nConventional loans (3)\t430824\t618505\t(30)%\nGovernment-insured loans\t198941\t187568\t6\nNon-Agency loans\t572466\t645580\t(11)\nTotal (1)\t1202231\t1451653\t(17)%\nServicing portfolio\t462864\t471500\t(2)%\nSubservicing portfolio\t88103\t111506\t(21)\nNRZ (4)\t651264\t868647\t(25)\nTotal (1)\t1202231\t1451653\t(17)\n", "q10k_tbl_77": "\tSeptember 30 2020\t\t\t\tDecember 31 2019\t\t\t\nAdvances by investor type\tPrincipal and Interest\tTaxes and Insurance\tForeclosures bankruptcy REO and other\tTotal\tPrincipal and Interest\tTaxes and Insurance\tForeclosures bankruptcy REO and other\tTotal\nConventional\t3\t19\t7\t29\t4\t20\t27\t51\nGovernment-insured\t2\t38\t29\t69\t0\t47\t26\t73\nNon-Agency\t295\t285\t155\t734\t410\t354\t168\t932\nTotal net\t299\t342\t191\t833\t415\t420\t221\t1056\n", "q10k_tbl_78": "\tSeptember 30 2020\t\tDecember 31 2019\t\nAdvances by MSR ownership\tAdvances\tUPB ($ in billions) (3)\tAdvances\tUPB ($ in billions) (3)\nServicer\t787\t72.2\t976\t67.6\nMaster Servicer (1)\t3\t1.1\t0\t1.8\nSubservicer\t32\t21.8\t38\t17.3\nNRZ (2)\t10\t85.6\t42\t118.6\nTotal net (3)\t833\t180.7\t1056\t205.3\n", "q10k_tbl_79": "\tAmount of UPB ($ in billions)\t\tCount\t\n\t2020\t2019\t2020\t2019\nPortfolio at January 1\t212.4\t256.0\t1419943\t1562238\nAdditions\t6.9\t4.7\t28781\t16419\nSales\t(0.1)\t(0.1)\t(720)\t(723)\nServicing transfers\t(2.2)\t(0.4)\t(8527)\t(3092)\nRunoff\t(8.2)\t(9.1)\t(43161)\t(40491)\nPortfolio at March 31\t208.8\t251.1\t1396316\t1534351\nAdditions\t8.5\t8.9\t28949\t34123\nSales\t(0.1)\t(0.2)\t(720)\t(1288)\nServicing transfers\t(0.9)\t(20.7)\t(3862)\t(29625)\nRunoff\t(10.2)\t(9.8)\t(53271)\t(46532)\nPortfolio at June 30\t206.0\t229.3\t1367412\t1491029\nAdditions (1) (2)\t11.7\t3.6\t39877\t13764\nSales\t0\t(0.3)\t(85)\t(2403)\nServicing transfers (2) (3)\t(20.4)\t(6.6)\t(149602)\t(4246)\nRunoff\t(11.4)\t(9.2)\t(55371)\t(46491)\nPortfolio at September 30\t185.9\t216.8\t1202231\t1451653\n", "q10k_tbl_80": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nLoan servicing and subservicing fees:\t\t\t\t\t\t\nServicing\t52.9\t60.6\t(13)%\t159.7\t168.1\t(5)%\nSubservicing\t10.3\t1.3\t692\t26.1\t11.8\t121\nNRZ\t91.0\t146.6\t(38)\t299.1\t443.5\t(33)\nServicing and subservicing fees\t154.2\t208.5\t(26)\t484.9\t623.3\t(22)\nAncillary income\t23.1\t38.6\t(40)\t77.6\t117.5\t(34)\n\t177.3\t247.1\t(28)\t562.5\t740.8\t(24)%\n", "q10k_tbl_81": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nServicing and subservicing fee\t\t\t\t\t\t\nServicing fee\t52.9\t60.6\t(13)%\t159.7\t168.1\t(5)%\nAverage servicing fee (% of UPB)\t0.27\t0.31\t(13)%\t0.28\t0.29\t(3)%\nSubservicing fee (1)\t10.3\t1.3\t692\t26.1\t11.8\t121\nAverage monthly fee per loan (in dollars)\t10\t4\t150\t8\t10\t(20)\nResidential assets serviced\t\t\t\t\t\t\nAverage UPB ($ in billions):\t\t\t\t\t\t\nServicing portfolio\t77.1\t77.4\t-%\t76.7\t76.3\t1%\nSubservicing portfolio\t21.0\t24.2\t(13)\t18.8\t38.2\t(51)\nNRZ\t101.7\t119.4\t(15)\t109.5\t123.9\t(12)\nTotal\t199.8\t221.0\t(10)%\t205.0\t238.4\t(14)%\nAverage number:\t\t\t\t\t\t\nServicing portfolio\t463744\t475810\t(3)%\t469723\t473303\t(1)%\nSubservicing portfolio\t84403\t109853\t(23)\t78199\t127587\t(39)\nNRZ\t765364\t883406\t(13)\t813933\t910407\t(11)\n\t1313511\t1469069\t(11)%\t1361855\t1511297\t(10)%\n", "q10k_tbl_82": "NRZ servicing and subservicing fees\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nServicing fees collected on behalf of NRZ\t91.0\t146.6\t299.1\t443.5\nServicing fees remitted to NRZ (3)\t(65.3)\t(111.1)\t(218.6)\t(334.7)\nRetained subservicing fees on NRZ agreements (1)\t25.7\t35.5\t80.5\t108.8\nAmortization gain of lump-sum cash payments received (including fair value change) (3)(4)\t0\t24.5\t34.2\t71.5\nTotal retained subservicing fees and amortization gain of lump-sum cash payments (including fair value change)\t25.7\t60.0\t114.7\t180.3\nAverage NRZ UPB ($ in billions) (2)\t70.77\t119.40\t74.24\t123.87\nAverage annualized retained subservicing fees as a % of NRZ UPB (excluding amortization gain of lump-sum cash payments)\t0.15%\t0.12%\t0.14%\t0.12%\n", "q10k_tbl_83": "Ancillary Income\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nLate charges\t11.0\t14.0\t(22)%\t38.2\t42.5\t(10)%\nCustodial accounts (float earnings)\t1.1\t13.5\t(92)\t8.8\t38.7\t(77)\nLoan collection fees\t3.0\t3.9\t(21)\t10.0\t11.5\t(13)\nHAMP fees\t0.1\t1.2\t(91)\t0.5\t4.6\t(88)\nOther\t7.9\t6.0\t32\t20.1\t20.2\t0\nAncillary income\t23.1\t38.6\t(40)%\t77.6\t117.5\t(34)%\nNumber of completed modifications\t6977\t6245\t12%\t22565\t19831\t14%\nRevenue recognized in connection with loan modifications\t10.6\t9.8\t8\t20.5\t29.2\t(30)\n", "q10k_tbl_84": "\tFor the Three Months Ended September 30 2020\t\t\tFor the Nine Months Ended September 30 2020\t\t\n\tTotal (1)\tOwned MSR (1)\tPledged MSR (NRZ) (2)\tTotal (1)\tOwned MSR (1)\tPledged MSR (NRZ) (2)\nRunoff\t(48.1)\t(32.5)\t(15.6)\t(131.9)\t(82.9)\t(49.1)\nRate and assumption change (1)\t5.5\t(4.9)\t10.4\t(164.5)\t(142.3)\t(22.2)\nHedging gain (loss)\t4.3\t4.3\t0\t47.1\t47.1\t0\nTotal\t(38.4)\t(33.1)\t(5.2)\t(249.4)\t(178.1)\t(71.3)\n", "q10k_tbl_85": "\tFor The Three Months Ended September 30 2019\t\t\tFor the Nine Months Ended September 30 2019\t\t\n\tTotal (1)\tOwned MSR\tPledged MSR (NRZ) (2)\tTotal (1)\tOwned MSR\tPledged MSR (NRZ) (2)\nRunoff\t(54.6)\t(27.6)\t(27.1)\t(151.7)\t(70.6)\t(81.1)\nRate and assumption change\t188.9\t(9.6)\t198.5\t29.8\t(89.3)\t119.2\nHedging gain (loss)\t0.3\t0.3\t0\t0.3\t0.3\t0\nTotal\t134.6\t(36.9)\t171.4\t(121.5)\t(159.6)\t38.1\n", "q10k_tbl_86": "\tFair Value\t\t\t\tUPB ($ in billions)\t\t\t\n\tGSEs\tGinnie Mae\tNon- Agency\tTotal\tGSEs\tGinnie Mae\tNon- Agency\tTotal\nBeginning balance\t231.7\t75.9\t154.8\t462.4\t30.8\t14.7\t24.7\t70.2\nAdditions\t\t\t\t\t\t\t\t\nNew cap.\t19.8\t2.3\t0\t22.1\t2.0\t0.2\t0\t2.2\nPurchases\t32.2\t0\t0\t32.2\t4.2\t0\t0\t4.2\nChange in fair value:\t\t\t\t\t\t\t\t\nRunoff\t(21.7)\t(2.3)\t(8.5)\t(32.5)\t(3.3)\t(1.0)\t(1.0)\t(5.3)\nAssumptions (1)\t5.8\t(1.7)\t3.4\t7.5\t0\t0\t0\t0\nEnding balance\t267.8\t74.2\t149.7\t491.7\t33.7\t13.9\t23.7\t71.3\nFair value (% of UPB)\t0.79%\t0.53%\t0.63%\t0.69%\t\t\t\t\n", "q10k_tbl_87": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nCompensation and benefits\t28.9\t35.1\t(18)%\t84.4\t116.3\t(27)%\nAverage Employment\t\t\t\t\t\t\nIndia and other\t2890\t3272\t(12)%\t2968\t3465\t(14)\nU.S.\t711\t1099\t(35)\t736\t1281\t(43)\nTotal\t3601\t4371\t(18)\t3704\t4746\t(22)\n", "q10k_tbl_88": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nInterest Expense\t\t\t\t\t\t\nAdvance match funded liabilities\t6.6\t6.2\t6%\t19.5\t20.9\t(7)%\nOther secured borrowings\t4.7\t3.5\t34\t14.8\t6.4\t131\nCorp. debt interest exp. allocation\t8.8\t14.0\t(37)\t28.8\t43.3\t(33)\nEscrow and other\t1.3\t2.4\t(46)\t4.9\t6.8\t(28)\nTotal interest expense\t21.4\t26.1\t(18)%\t67.9\t77.3\t(12)%\nAverage balances\t\t\t\t\t\t\nAverage balance of advances\t798.6\t1018.5\t(22)%\t924.2\t1059.8\t(13)%\nAdvance match funded liabilities\t581.2\t629.6\t(8)\t626.8\t664.2\t(6)\nOther secured borrowings\t354.7\t271.7\t31\t521.1\t236.4\t120%\nEffective average interest rate\t\t\t\t\t\t\nAdvance match funded liabilities\t4.52%\t3.92%\t15%\t4.16%\t4.19%\t(1)%\nOther secured borrowings\t5.31\t5.15\t3\t3.78\t3.62\t4\nAverage 1ML\t0.16%\t2.04%\t(92)%\t0.65%\t2.37%\t(73)%\n", "q10k_tbl_89": "\tThree Months Ended September 30\t\tChange\tNine Months Ended September 30\t\tChange\n\t2020\t2019\t2020 vs 2019\t2020\t2019\t2020 vs 2019\nNet servicing fee remittance to NRZ (a)\t65.3\t111.1\t(45.8)\t218.6\t334.7\t(116.1)\nPledged MSR liability fair value (gain) loss (b)\t(5.2)\t171.4\t(176.7)\t(71.3)\t38.1\t(109.4)\n2017/2018 lump sum amortization gain\t0\t(24.5)\t24.5\t(34.2)\t(71.5)\t37.3\nOther\t(2.7)\t(1.6)\t(1.1)\t(7.3)\t2.1\t(9.4)\nPledged MSR liability expense\t57.4\t256.5\t(199.1)\t105.8\t303.4\t(197.6)\n", "q10k_tbl_90": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\t\n\t2020\t\t2019\t\t2020\t\t2019\t\n\tStatement of Operations\tNRZ Pledged MSR-related Amounts (a)\tStatement of Operations\tNRZ Pledged MSR-related Amounts (a)\tStatement of Operations\tNRZ Pledged MSR-related Amounts (a)\tStatement of Operations\tNRZ Pledged MSR-related Amounts (a)\nTotal revenue\t249.0\t65.3\t283.5\t111.1\t729.9\t218.6\t861.8\t334.7\nMSR valuation adjustments net\t(33.8)\t(5.2)\t134.6\t171.4\t(231.4)\t(71.3)\t(121.7)\t38.1\nTotal operating expenses\t149.5\t0\t179.3\t0\t431.5\t0\t534.7\t0\nTotal other expense net\t(77.1)\t(60.1)\t(277.1)\t(282.5)\t(171.9)\t(147.3)\t(369.1)\t(372.8)\nLoss before income taxes\t(11.4)\t0\t(38.3)\t0\t(104.9)\t0\t(163.7)\t0\n", "q10k_tbl_91": "\tThree Months Ended September 30\t\t\t\t\t\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\t% Change\t\t2020\t\t2019\t\t% Change\nRevenue\t\t\t\t\t\t\t\t\t\t\t\nGain on loans held for sale net\t31.8\t\t7.9\t\t304\t\t73.3\t\t22.2\t\t230\nReverse mortgage revenue net\t14.5\t\t20.3\t\t(28)\t\t51.1\t\t72.9\t\t(30)\nOther revenue net\t7.4\t\t1.4\t\t448\t\t12.6\t\t4.3\t\t195\nTotal revenue\t53.8\t\t29.5\t\t82\t\t136.9\t\t99.4\t\t38\nMSR valuation adjustments net\t12.4\t\t(0.1)\t\tn/m\t\t25.9\t\t(0.2)\t\tn/m\nOperating expenses\t\t\t\t\t\t\t\t\t\t\t\nCompensation and benefits\t17.4\t\t9.9\t\t77\t\t43.7\t\t33.8\t\t29\nServicing and origination\t6.4\t\t4.7\t\t36\t\t15.4\t\t12.6\t\t23\nOccupancy and equipment\t1.4\t\t1.4\t\t(1)\t\t4.2\t\t4.9\t\t(13)\nTechnology and communications\t1.4\t\t0.6\t\t137\t\t3.5\t\t2.4\t\t45\nProfessional services\t3.0\t\t0.1\t\tn/m\t\t6.0\t\t1.0\t\t523\nCorporate overhead allocations\t4.5\t\t1.4\t\t222\t\t13.7\t\t4.8\t\t187\nOther expenses\t1.2\t\t2.5\t\t(52)\t\t4.6\t\t3.4\t\t34\nTotal operating expenses\t35.4\t\t20.6\t\t72\t\t91.1\t\t62.8\t\t45\nOther income (expense)\t\t\t\t\t\t\t\t\t\t\t\nInterest income\t2.7\t\t1.7\t\t61\t\t6.9\t\t4.8\t\t43\nInterest expense\t(3.2)\t\t(2.1)\t\t48\t\t(8.4)\t\t(5.2)\t\t62\nOther net\t0.2\t\t0.5\t\t(60)\t\t0.2\t\t1.2\t\t(86)\nTotal other income (expense) net\t(0.2)\t\t0.1\t\t(570)\t\t(1.4)\t\t0.7\t\t(288)\nIncome before income taxes\t30.5\t\t8.9\t\t243%\t\t70.3\t\t37.1\t\t89%\nn/m: not meaningful\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_92": "\tSeptember 30\t\t\t\t\n\t2020\t2019\t% Change\tDecember 31 2019\t% Change\nShort-term loan funding commitments\t\t\t\t\t\nForward loans\t857257\t140644\t510%\t204021\t320%\nReverse loans\t30977\t32971\t(6)\t28545\t9\nFuture Value (1)\t0\t55502\t(100)%\t47038\t(100)\nFuture draw commitment (UPB) (2)\t1618.2\t1495.0\t8%\t1502.2\t8\n", "q10k_tbl_93": "\tThree Months Ended September 30\t\t\t\t\t\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\t% Change\t\t2020\t\t2019\t\t% Change\nOriginations by Channel\t\t\t\t\t\t\t\t\t\t\t\nForward loans (3)\t\t\t\t\t\t\t\t\t\t\t\nCorrespondent\t1926.1\t\t92.9\t\tn/m\t\t3100.2\t\t96.2\t\tn/m\nRecapture\t369.4\t\t131.2\t\t181%\t\t883.9\t\t489.8\t\t80\nGSE Cash Window / Flow MSR\t4197.5\t\t117.5\t\tn/m\t\t8381.7\t\t122.2\t\tn/m\n\t6493.0\t\t341.6\t\tn/m\t\t12365.8\t\t708.2\t\tn/m\n% Purchase loan production\t24\t\t24\t\t0\t\t22\t\t30\t\t(25)\n% Refinance loan production\t76\t\t76\t\t0\t\t78\t\t70\t\t11\nReverse loans (4)\t\t\t\t\t\t\t\t\t\t\t\nCorrespondent\t119.7\t\t106.9\t\t12%\t\t336.3\t\t278.8\t\t21%\nWholesale\t65.1\t\t59.1\t\t10\t\t225.8\t\t145.4\t\t55\nRetail\t45.2\t\t22.1\t\t104\t\t107.7\t\t46.4\t\t132\n\t230.0\t\t188.1\t\t22%\t\t669.9\t\t470.6\t\t42%\nAverage Employment\t\t\t\t\t\t\t\t\t\t\t\nU.S.\t456\t\t318\t\t43\t\t440\t\t393\t\t12\nIndia and other\t197\t\t86\t\t129\t\t152\t\t106\t\t43\nTotal\t653\t\t404\t\t62\t\t592\t\t499\t\t19\n", "q10k_tbl_94": "\tThree Months Ended September 30\t\t\t\t\t\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\t% Change\t\t2020\t\t2019\t\t% Change\nGain on Loans Held-for-Sale (1)\t\t\t\t\t\t\t\t\t\t\t\nCorrespondent\t7.7\t\t(0.1)\t\tn/m\t\t12.6\t\t(0.1)\t\tn/m\nRecapture\t24.2\t\t8.0\t\t204\t\t60.7\t\t22.3\t\t172\n\t31.8\t\t7.9\t\t304%\t\t73.3\t\t22.2\t\t230%\n% Gain on Sale Margin (2)\t\t\t\t\t\t\t\t\t\t\t\nCorrespondent\t0.34%\t\t(0.06)%\t\t(667)\t\t0.36%\t\t(0.06)%\t\t(700)\nRecapture\t5.85%\t\t2.82%\t\t108\t\t5.44%\t\t4.52%\t\t21\n\t1.19%\t\t1.97%\t\t(40)\t\t1.58%\t\t3.59%\t\t(56)%\nOrigination UPB (3)\t\t\t\t\t\t\t\t\t\t\t\nCorrespondent\t2261.6\t\t117.1\t\tn/m\t\t3521.4\t\t124.4\t\tn/m\nRecapture\t413.2\t\t282.3\t\t46\t\t1114.7\t\t494.2\t\t126\n\t2674.8\t\t399.4\t\t570%\t\t4636.1\t\t618.6\t\t649%\n", "q10k_tbl_95": "\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\nOrigination volume UPB (1)\t230.2\t197.3\t660.8\t484.2\nOrigination margin (2)\t6.78%\t3.14%\t5.80%\t3.02%\nGain on new originations (3)\t13.5\t5.1\t33.2\t10.4\nChange in fair value of securitized HECM loans Held-for-Investment and HMBS-related borrowings net\t(1.1)\t14.1\t12.8\t58.3\nOther (3)\t2.1\t1.1\t5.1\t4.2\nTotal reverse mortgage revenue net\t14.5\t20.3\t51.1\t72.9\n", "q10k_tbl_96": "\tThree Months Ended September 30\t\t\t\t\t\tNine Months Ended September 30\t\t\t\t\n2020\t\t2019\t\t% Change\t\t2020\t\t2019\t\t% Change\nRevenue\t\t\t\t\t\t\t\t\t\t\t\nPremiums (CRL)\t1.6\t\t3.8\t\t(59)%\t\t5.2\t\t10.2\t\t(49)%\nOther revenue\t0\t\t0\t\t0\t\t0.1\t\t0.1\t\t(50)\nTotal revenue\t1.6\t\t3.8\t\t(59)\t\t5.2\t\t10.3\t\t(49)\nOperating expenses\t\t\t\t\t\t\t\t\t\t\t\nCompensation and benefits\t23.3\t\t28.4\t\t(18)\t\t67.3\t\t100.2\t\t(33)\nProfessional services\t19.7\t\t23.7\t\t(17)\t\t52.3\t\t40.9\t\t28\nTechnology and communications\t8.4\t\t9.6\t\t(12)\t\t23.7\t\t35.0\t\t(32)\nOccupancy and equipment\t1.5\t\t5.2\t\t(72)\t\t9.3\t\t12.5\t\t(26)\nServicing and origination\t0.4\t\t0.3\t\t39\t\t1.2\t\t0.6\t\t118\nOther expenses\t0.3\t\t3.0\t\t(90)\t\t5.8\t\t8.8\t\t(34)\nTotal operating expenses before corporate overhead allocations\t53.5\t\t70.2\t\t(24)\t\t159.6\t\t198.1\t\t(19)\nCorporate overhead allocations\t\t\t\t\t\t\t\t\t\t\t\nServicing segment\t(14.4)\t\t(45.6)\t\t(68)\t\t(48.3)\t\t(156.9)\t\t(69)\nOriginations segment\t(4.5)\t\t(1.4)\t\t222\t\t(13.7)\t\t(4.8)\t\t187\nTotal operating expenses\t34.6\t\t23.2\t\t49\t\t97.7\t\t36.4\t\t168\nOther income (expense) net\t\t\t\t\t\t\t\t\t\t\t\nInterest income\t0.2\t\t0.3\t\t(37)\t\t1.7\t\t1.5\t\t16\nInterest expense\t(2.2)\t\t(1.3)\t\t73\t\t(7.2)\t\t(2.1)\t\t242\nGain on repurchase of senior secured notes\t0\t\t5.1\t\t(100)\t\t0\t\t5.1\t\t(100)\nOther net\t1.0\t\t(4.7)\t\t(120)\t\t(3.8)\t\t(6.2)\t\t(39)\nTotal other expense net\t(1.1)\t\t(0.6)\t\t76\t\t(9.3)\t\t(1.8)\t\t421\nLoss before income taxes\t(34.1)\t\t(20.0)\t\t71%\t\t(101.7)\t\t(27.9)\t\t265%\nn/m: not meaningful\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_97": "\tSeptember 30 2020\t\t\tDecember 31 2019\t\t\n\tTotal Borrowing Capacity\tAvailable Borrowing Capacity - Committed\tAvailable Borrowing Capacity - Uncommitted\tTotal Borrowing Capacity\tAvailable Borrowing Capacity - Committed\tAvailable Borrowing Capacity - Uncommitted\nAdvance facilities\t795.0\t214.9\t0\t730.0\t50.9\t0\nMortgage loan warehouse facilities\t937.0\t134.6\t360.7\t1125.0\t108.4\t684.4\nMSR financing facilities\t377.5\t136.1\t74.9\t400.0\t180.0\t0\nTotal\t2109.5\t485.6\t435.6\t2255.0\t339.3\t684.4\n", "q10k_tbl_98": "\t\tCollateral for Secured Borrowings\t\t\t\t\nAssets\tTotal\tAdvance Match Funded Liabilities\tFinancing Liabilities\tMortgage Loan Warehouse/MSR Facilities\tSales and Other Commitments\tOther\nCash\t321.5\t0\t0\t0\t0\t321.5\nRestricted cash\t61.5\t10.5\t0\t4.4\t46.6\t0\nMSRs (1)\t1069.0\t0\t577.9\t490.6\t0\t0\nAdvances net\t832.6\t660.8\t0\t61.1\t0\t110.7\nLoans held for sale\t390.6\t0\t0\t335.7\t0\t54.9\nLoans held for investment\t6860.9\t0\t6726.1\t95.6\t0\t39.2\nReceivables net\t201.6\t0\t0\t52.4\t0\t149.2\nPremises and equipment net\t23.6\t0\t0\t0\t0\t23.6\nOther assets\t662.5\t0\t0\t7.1\t598.0\t57.4\nTotal Assets\t10423.9\t671.3\t7304.0\t1046.9\t644.6\t756.6\nLiabilities\t\t\t\t\t\t\nHMBS - related borrowings\t6606.5\t0\t6606.5\t0\t0\t0\nOther financing liabilities\t588.3\t0\t588.3\t0\t0\t0\nAdvance match funded liabilities\t580.1\t580.1\t0\t0\t0\t0\nOther secured borrowings net\t915.3\t0\t0\t607.0\t0\t308.3\nSenior notes net\t311.7\t0\t0\t0\t0\t311.7\nOther liabilities\t997.5\t0\t0\t0\t598.0\t399.5\nTotal Liabilities\t9999.4\t580.1\t7194.9\t607.0\t598.0\t1019.5\nTotal Equity\t424.5\t\t\t\t\t\n", "q10k_tbl_99": "\tSeptember 30 2020\tDecember 31 2019\nLoans held for sale\t390.6\t275.3\nLoans held for investment - Reverse mortgages\t6849.9\t6269.6\nLoans held for investment - Restricted for securitization investors\t11.0\t23.3\nMSRs\t1069.0\t1486.4\nDerivative assets\t22.8\t6.0\nMortgage-backed securities\t2.2\t2.1\nCorporate bonds\t0.2\t0.4\nAssets at fair value\t8345.7\t8063.1\nAs a percentage of total assets\t80%\t77%\nFinancing liabilities\t\t\nHMBS-related borrowings\t6606.5\t6063.4\nFinancing liability - MSRs pledged\t577.3\t950.6\nFinancing liability - Owed to securitization investors\t11.0\t22.0\n\t7194.8\t7036.0\nDerivative liabilities\t1.0\t0\nLiabilities at fair value\t7195.8\t7036.0\nAs a percentage of total liabilities\t72%\t70%\nAssets at fair value using Level 3 inputs\t8004.9\t7847.9\nAs a percentage of assets at fair value\t96%\t97%\nLiabilities at fair value using Level 3 inputs\t7194.9\t7036.0\nAs a percentage of liabilities at fair value\t100%\t100%\n", "q10k_tbl_100": "\tConventional\tGovernment-Insured\tNon-Agency\nPrepayment speed\t\t\t\nRange\t11.2% to 28.8%\t11.0% to 23.1%\t8.8% to 15.0%\nWeighted average\t18.6%\t17.1%\t11.5%\nDelinquency\t\t\t\nRange\t1.4% to 5.7%\t7.0% to 19.4%\t27.7% to 30.2%\nWeighted average\t2.2%\t9.5%\t28.2%\nCost to service (in dollars)\t\t\t\nRange\t66 to $69\t111 to $136\t229 to $273\nWeighted average\t67\t116\t263\nDiscount rate\t9.1%\t10.3%\t11.4%\n", "q10k_tbl_101": "\tFair value at September 30 2020\tHypothetical change in fair value due to 25 bps rate decrease\nAgency MSR - interest rate sensitive\t339.7\t(23.3)\nAsset value of securitized HECM loans net of HMBS-related borrowing\t108.6\t3.4\nLoans held for investment - Unsecuritized HECM loans and tails\t134.8\t0.1\nLoans held for sale\t367.0\t6.8\nPipeline IRLCs\t22.7\t(0.5)\nNatural hedges (sum of the above)\t\t9.8\nHypothetical 30% offset by hedging instruments (1)\t\t4.1\nTotal hedge position (2) (3)\t\t13.9\nHypothetical residual exposure to changes in interest rates\t\t(9.4)\n", "q10k_tbl_102": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tBalance\tFair Value (1)\tBalance\tFair Value (1)\nRate-Sensitive Assets:\t\t\t\t\nInterest-earning cash\t288.1\t288.1\t433.2\t433.2\nLoans held for sale at fair value\t367.0\t367.0\t208.8\t208.8\nLoans held for sale at lower of cost or fair value (2)\t23.7\t23.7\t66.5\t66.5\nLoans held for investment at fair value\t6849.9\t6849.9\t6269.6\t6269.6\nDebt service accounts and time deposits\t15.3\t15.3\t23.7\t23.7\nTotal rate-sensitive assets\t7544.0\t7544.0\t7001.8\t7001.8\nRate-Sensitive Liabilities:\t\t\t\t\nAdvance match funded liabilities\t580.1\t580.6\t679.1\t679.5\nHMBS-related borrowings at fair value\t6606.5\t6606.5\t6063.4\t6063.4\nSSTL and other secured borrowings (3) (4)\t922.4\t889.7\t1030.3\t1010.8\nSenior notes (4)\t313.1\t285.8\t313.1\t270.0\nTotal rate-sensitive liabilities\t8422.1\t8362.6\t8085.9\t8023.7\n", "q10k_tbl_103": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tNotional Balance\tFair Value\tNotional Balance\tFair Value\nRate-Sensitive Derivative Financial Instruments:\t\t\t\t\nDerivative assets (liabilities):\t\t\t\t\nInterest rate caps\t0\t0\t27.1\t0\nIRLCs\t888.2\t22.7\t232.6\t4.9\nForward trades\t80.0\t(0.1)\t60.0\t0\nInterest rate swap futures\t355.0\t(0.2)\t0\t0\nTBA / Forward MBS trades\t590.0\t(0.6)\t1200.0\t1.1\nDerivatives net\t\t21.8\t\t6.0\n", "q10k_tbl_104": "\tChange in Fair Value\t\n\tDown 25 bps\tUp 25 bps\nAsset value of securitized HECM loans net of HMBS-related borrowing\t3.4\t(3.2)\nLoans held for investment - Unsecuritized HECM loans and tails\t0.1\t0\nLoans held for sale\t6.8\t(9.1)\nTBA / Forward MBS trades / Interest rate swap futures\t(3.7)\t5.1\nTotal\t6.6\t(7.2)\nMSRs (1)\t(22.8)\t25.4\nMSRs embedded in pipeline\t(0.5)\t0.3\nTotal MSRs (2)\t(23.3)\t25.7\nTotal net\t(16.7)\t18.5\n", "q10k_tbl_105": "Period\tTotal number of shares purchased (1)\tAverage price paid per share (1) (2)\tTotal number of shares purchased as part of a publicly announced repurchase program (1)\tApproximate dollar value of shares that may yet be purchased under the repurchase program\t\nJanuary 1 - January 31\t0\t0\t0\t5.0\tmillion\nFebruary 1 - February 29\t0\t0\t0\t5.0\tmillion\nMarch 1 - March 31\t377484\t11.8995\t377484\t0.5\tmillion\nTotal\t377484\t11.8995\t377484\t\t\n", "q10k_tbl_106": "3.1\tAmended and Restated Articles of Incorporation as amended (filed herewith)\n3.2\tAmended and Restated Bylaws of Ocwen Financial Corporation (1)\n4.1\tThe Company agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument with respect to the issuance of long-term debt of the Company and its subsidiaries the authorized principal amount of which does not exceed 10% of the consolidated assets of the Company and its subsidiaries.\n10.1*\tAmendment to April 17 2018 Offer Letter between Ocwen Financial Corporation and Glen Messina effective September 15 2020 (filed herewith)\n10.2*\tForm of Cash Award granted September 10 2020 (filed herewith)\n10.3*\tForm of Restricted Stock Unit Award granted September 10 2020 (filed herewith)\n10.4†\tAmendment No. 2 dated as of October 5 2020 to New RMSR Agreement dated as of January 18 2018 by and among Ocwen Loan Servicing LLC HLSS Holdings LLC HLSS MSR - EBO Acquisition LLC and New Residential Mortgage LLC (filed herewith)\n10.5†\tAmendment No. 2 dated as of October 5 2020 to Subservicing Agreement dated as of July 23 2017 between New Residential Mortgage LLC and Ocwen Loan Servicing LLC (filed herewith)\n10.6†\tAmendment No. 1 dated as of October 5 2020 Subservicing Agreement dated as of August 17 2018 between New Penn Financial LLC and Ocwen Loan Servicing LLC (filed herewith)\n10.7††\tBinding Term Sheet dated as of February 22 2019 between Altisource S.à r.l. Ocwen Financial Corporation and Ocwen Mortgage Servicing Inc. (2)\n31.1\tCertification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)\n31.2\tCertification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)\n32.1\tCertification of the principal executive officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)\n32.2\tCertification of the principal financial officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)\n101\tThe following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30 2020 were formatted in Inline XBRL: (i) Consolidated Balance Sheets (ii) Consolidated Statements of Operations (iii) Consolidated Statements of Comprehensive Income (Loss) (iv) Consolidated Statements of Changes in Equity (v) Consolidated Statements of Cash Flows and (v) the Notes to Unaudited Consolidated Financial Statements tagged as blocks of text and including detailed tags.\n104\tThe cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30 2020 formatted in Inline XBRL (Included as Exhibit 101).\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_91", "cf": "q10k_tbl_8"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: ____________________ to ____________________
Commission File No. 1-13219
OCWEN FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Florida
65-0039856
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1661 Worthington Road, Suite 100
33409
West Palm Beach,
Florida
(Address of principal executive office)
(Zip Code)
(561) 682-8000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 Par Value
OCN
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yesx No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes ☐No x
Number of shares of common stock outstanding as of October 30, 2020: 8,683,994 shares
This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this report, including statements regarding our financial position, business strategy and other plans and objectives for our future operations, are forward-looking statements.
Forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering forward-looking statements and should not place undue reliance on such statements. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. In the past, actual results have differed from those suggested by forward-looking statements and this may happen again. Important factors that could cause actual results to differ include, but are not limited to, the risks discussed or referenced under Item 1A, Risk Factors and the following:
•uncertainty relating to the continuing impacts of the COVID-19 pandemic, including with respect to the response of the U.S. government, state governments, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), the Government National Mortgage Association (Ginnie Mae) and regulators;
•the potential for ongoing COVID-19 related disruption in the financial markets and in commercial activity generally, increased unemployment, and other financial difficulties facing our borrowers;
•the proportion of borrowers who enter into forbearance plans, the financial ability of borrowers to resume repayment and their timing for doing so;
•the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them;
•increased servicing costs based on rising borrower delinquency levels or other factors;
•reduced collection of servicing fees and ancillary income and delayed collection of servicing revenue as a result of forbearance plans and moratoria on evictions and foreclosure proceedings;
•our ability to continue to improve our financial performance through cost re-engineering initiatives and other actions;
•our ability to continue to grow our lending business and increase our lending volumes in a competitive market and uncertain interest rate environment;
•uncertainty related to our long-term relationship and remaining agreements with New Residential Investment Corp. (NRZ), our largest servicing client;
•uncertainty related to claims, litigation, cease and desist orders and investigations brought by government agencies and private parties regarding our servicing, foreclosure, modification, origination and other practices, including uncertainty related to past, present or future investigations, litigation, cease and desist orders and settlements with state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD);
•adverse effects on our business as a result of regulatory investigations, litigation, cease and desist orders or settlements and the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae;
•our ability to comply with the terms of our settlements with regulatory agencies and the costs of doing so;
•any adverse developments in existing legal proceedings or the initiation of new legal proceedings;
•our ability to effectively manage our regulatory and contractual compliance obligations;
•uncertainty related to changes in legislation, regulations, government programs and policies, industry initiatives, best servicing and lending practices, and media scrutiny of our business and industry;
•our ability to interpret correctly and comply with liquidity, net worth and other financial and other requirements of regulators, the GSEs and Ginnie Mae, as well as those set forth in our debt and other agreements;
•our ability to comply with our servicing agreements, including our ability to comply with our agreements with, and the requirements of, the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them;
•our servicer and credit ratings as well as other actions from various rating agencies, including the impact of prior or future downgrades of our servicer and credit ratings;
•failure of our information technology or other security systems or breach of our privacy protections, including any failure to protect customers’ data;
2
•our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations;
•the loss of the services of our senior managers and key employees;
•uncertainty related to the actions of loan owners and guarantors, including mortgage-backed securities investors, the GSEs, Ginnie Mae and trustees regarding loan put-backs, penalties and legal actions;
•uncertainty related to the GSEs substantially curtailing or ceasing to purchase our conforming loan originations or the Federal Housing Administration (FHA) of the HUD or Department of Veterans Affairs (VA) ceasing to provide insurance;
•uncertainty related to our ability to continue to collect certain expedited payment or convenience fees and potential liability for charging such fees;
•uncertainty related to our reserves, valuations, provisions and anticipated realization of assets;
•uncertainty related to the ability of third-party obligors and financing sources to fund servicing advances on a timely basis on loans serviced by us;
•the characteristics of our servicing portfolio, including prepayment speeds along with delinquency and advance rates;
•our ability to successfully modify delinquent loans, manage foreclosures and sell foreclosed properties;
•uncertainty related to the processes for judicial and non-judicial foreclosure proceedings, including potential additional costs or delays or moratoria in the future or claims pertaining to past practices;
•our ability to adequately manage and maintain real estate owned (REO) properties and vacant properties collateralizing loans that we service;
•our ability to realize anticipated future gains from future draws on existing loans in our reverse mortgage portfolio;
•our ability to effectively manage our exposure to interest rate changes and foreign exchange fluctuations;
•our ability to effectively transform our operations in response to changing business needs, including our ability to do so without unanticipated adverse tax consequences;
•uncertainty related to the political or economic stability of the United States and of the foreign countries in which we have operations; and
•our ability to maintain positive relationships with our large shareholders and obtain their support for management proposals requiring shareholder approval.
Further information on the risks specific to our business is detailed within this report and our other reports and filings with the SEC including our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K since such date. Forward-looking statements speak only as of the date they were made and we disclaim any obligation to update or revise forward-looking statements whether because of new information, future events or otherwise.
Restricted cash (amounts related to variable interest entities (VIEs) of $13,108 and $20,434)
61,511
64,001
Mortgage servicing rights (MSRs), at fair value
1,069,013
1,486,395
Advances, net (amounts related to VIEs of $660,816 and $801,990)
832,604
1,056,523
Loans held for sale ($366,966 and $208,752 carried at fair value)
390,631
275,269
Loans held for investment, at fair value (amounts related to VIEs of $11,012 and $23,342)
6,860,942
6,292,938
Receivables, net
201,607
201,220
Premises and equipment, net
23,620
38,274
Other assets ($25,204 and $8,524 carried at fair value) (amounts related to VIEs of $7,584 and $4,078)
662,468
563,240
Total assets
$
10,423,851
$
10,406,199
Liabilities and Equity
Liabilities
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value
$
6,606,543
$
6,063,435
Advance match funded liabilities (related to VIEs)
580,078
679,109
Other financing liabilities, at fair value (amounts related to VIEs of $11,012 and $22,002)
588,321
972,595
Other secured borrowings, net (amounts related to VIEs $186,986 and $240,893)
915,292
1,025,791
Senior notes, net
311,689
311,085
Other liabilities ($1,671 and $100 carried at fair value) (amounts related to VIEs of $93 and $144)
997,461
942,173
Total liabilities
9,999,384
9,994,188
Commitments and Contingencies (Notes 21 and 22)
Stockholders’ Equity
Common stock, $.01 par value; 13,333,333 shares authorized; 8,672,272 and 8,990,816 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
87
90
Additional paid-in capital
556,176
558,057
Accumulated deficit
(124,459)
(138,542)
Accumulated other comprehensive loss, net of income taxes
(7,337)
(7,594)
Total stockholders’ equity
424,467
412,011
Total liabilities and stockholders’ equity
$
10,423,851
$
10,406,199
The accompanying notes are an integral part of these unaudited consolidated financial statements
4
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2020
2019
2020
2019
Revenue
Servicing and subservicing fees
$
181,722
$
248,517
$
568,445
$
745,093
Reverse mortgage revenue, net
14,499
20,260
51,055
72,876
Gain on loans held for sale, net
45,886
9,012
92,764
26,312
Other revenue, net
6,928
5,726
17,637
17,460
Total revenue
249,035
283,515
729,901
861,741
MSR valuation adjustments, net
(33,814)
134,561
(231,368)
(121,705)
Operating expenses
Compensation and benefits
69,648
73,414
195,393
250,393
Servicing and origination
22,930
36,619
60,547
86,827
Professional services
28,361
36,628
77,816
77,205
Technology and communications
15,850
16,644
47,154
61,080
Occupancy and equipment
9,572
17,262
37,677
52,550
Other expenses
3,161
(1,282)
12,958
6,563
Total operating expenses
149,522
179,285
431,545
534,618
Other income (expense)
Interest income
3,801
4,129
12,762
12,524
Interest expense
(26,815)
(29,506)
(83,557)
(84,636)
Pledged MSR liability expense
(57,404)
(256,416)
(105,684)
(303,302)
Gain on repurchase of senior secured notes
—
5,099
—
5,099
Other, net
3,345
(414)
4,616
1,163
Total other expense, net
(77,073)
(277,108)
(171,863)
(369,152)
Loss before income taxes
(11,374)
(38,317)
(104,875)
(163,734)
Income tax (benefit) expense
(1,954)
4,450
(71,920)
13,264
Net loss
$
(9,420)
$
(42,767)
$
(32,955)
$
(176,998)
Loss per share
Basic
$
(1.09)
$
(4.77)
$
(3.76)
$
(19.76)
Diluted
$
(1.09)
$
(4.77)
$
(3.76)
$
(19.76)
Weighted average common shares outstanding
Basic
8,669,550
8,973,053
8,770,102
8,955,288
Diluted
8,669,550
8,973,053
8,770,102
8,955,288
The accompanying notes are an integral part of these unaudited consolidated financial statements
5
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in thousands)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2020
2019
2020
2019
Net loss
$
(9,420)
$
(42,767)
$
(32,955)
$
(176,998)
Other comprehensive income, net of income taxes:
Reclassification adjustment for losses on cash flow hedges included in net income
42
38
118
108
Change in unfunded pension plan obligation liability
47
611
139
1,285
Other
—
8
—
21
Comprehensive loss
$
(9,331)
$
(42,110)
$
(32,698)
$
(175,584)
The accompanying notes are an integral part of these unaudited consolidated financial statements
6
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(Dollars in thousands)
Common Stock
Additional Paid-in Capital
(Accumulated Deficit) Retained Earnings
Accumulated Other Comprehensive Income (Loss), Net of Income Taxes
Total
Shares
Amount
Three Months Ended September 30, 2020 and 2019
Balance at June 30, 2020
8,667,260
$
87
$
555,147
$
(115,039)
$
(7,426)
$
432,769
Net loss
—
—
—
(9,420)
—
(9,420)
Additional shares issued on reverse stock split rounding
4,692
—
—
—
—
—
Equity-based compensation and other
320
—
1,029
—
—
1,029
Other comprehensive income, net of income taxes
—
—
—
—
89
89
Balance at September 30, 2020
8,672,272
$
87
$
556,176
$
(124,459)
$
(7,337)
$
424,467
Balance at June 30, 2019
8,973,053
$
90
$
556,952
$
(130,648)
$
(3,500)
$
422,894
Net loss
—
—
—
(42,767)
—
(42,767)
Equity-based compensation and other
—
—
401
—
—
401
Other comprehensive income, net of income taxes
—
—
—
—
657
657
Balance at September 30, 2019
8,973,053
$
90
$
557,353
$
(173,415)
$
(2,843)
$
381,185
The accompanying notes are an integral part of these unaudited consolidated financial statements
7
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(Dollars in thousands)
Common Stock
Additional Paid-in Capital
(Accumulated Deficit) Retained Earnings
Accumulated Other Comprehensive Loss, Net of Income Taxes
Total
Shares
Amount
Nine Months Ended September 30, 2020 and 2019
Balance at December 31, 2019
8,990,816
$
90
$
558,057
$
(138,542)
$
(7,594)
$
412,011
Net loss
—
—
—
(32,955)
—
(32,955)
Cumulative effect of adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13
—
—
—
47,038
—
47,038
Repurchase of common stock
(377,484)
(4)
(4,601)
—
—
(4,605)
Additional shares issued on reverse stock split rounding