Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-13219 | ||
Entity Registrant Name | OCWEN FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 65-0039856 | ||
Entity Address, Address Line One | 1661 Worthington Road, Suite 100 | ||
Entity Address, City or Town | West Palm Beach, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33409 | ||
City Area Code | 561 | ||
Local Phone Number | 682-8000 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | OCN | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 244,195,677 | ||
Entity Common Stock, Shares Outstanding | 7,527,443 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of our definitive Proxy Statement with respect to our Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of our fiscal year ended December 31, 2022, are incorporated by reference into Part III, Items 10 - 14. | ||
Entity Central Index Key | 0000873860 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | New York, NY |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 208 | $ 192.8 |
Restricted cash ($9,759 and $16,791 related to variable interest entities (VIEs)) | 66.2 | 70.7 |
Mortgage servicing rights, at fair value | 2,665.2 | 2,250.1 |
Advances, net (amounts related to VIEs of $608.4 and $587.1) | 718.9 | 772.4 |
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | 622.7 | 928.5 |
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | 7,510.8 | 7,207.6 |
Receivables, net | 180.8 | 180.7 |
Investment in equity method investee | 42.2 | 23.3 |
Premises and equipment, net | 20.2 | 13.7 |
Other assets ($8.0 and $21.9 carried at fair value) ($3.2 and $1.5 related to VIEs) | 364.2 | 507.3 |
Total assets | 12,399.2 | 12,147.1 |
Liabilities | ||
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 7,326.8 | 6,885 |
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 1,137.4 | 805 |
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512.3 |
Mortgage loan warehouse facilities | 702.7 | 1,085.1 |
MSR financing facilities, net | 953.8 | 900.8 |
Senior Notes | 599.6 | 614.8 |
Other liabilities ($3,080 and $4,638 carried at fair value) | 708.5 | 867.5 |
Total liabilities | 11,942.5 | 11,670.4 |
Commitments and Contingencies (Notes 24 and 25) | ||
Stockholders’ Equity | ||
Common stock, $.01 par value; 13,333,333 shares authorized; 9,208,312 and 8,687,750 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 0.1 | 0.1 |
Additional paid-in capital | 547 | 592.6 |
Accumulated deficit | (87.9) | (113.6) |
Accumulated other comprehensive loss, net of income taxes | (2.5) | (2.4) |
Total stockholders’ equity | 456.7 | 476.7 |
Total liabilities and stockholders’ equity | $ 12,399.2 | $ 12,147.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted cash | $ 66.2 | $ 70.7 |
Advances, net (amounts related to VIEs of $608.4 and $587.1) | 718.9 | 772.4 |
Loans Held-for-sale, Fair Value Disclosure | 617.8 | 917.5 |
Loans held for sale | 622.7 | 928.5 |
Loans held for investment - unsecuritized | 7,510.8 | 7,207.6 |
Other assets, fair value | 8 | 21.9 |
Other assets ($8.0 and $21.9 carried at fair value) ($3.2 and $1.5 related to VIEs) | 364.2 | 507.3 |
Other financing liabilities, due to related parties | 329.8 | 238.1 |
Other financing liabilities | 1,137.4 | 805 |
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512.3 |
Senior notes, due to related parties | 222.2 | 230.2 |
Other liabilities, fair value | $ 15.8 | $ 3.1 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 13,333,333 | 13,333,333 |
Common stock, shares, issued | 7,526,117 | 9,208,312 |
Common stock, shares, outstanding | 7,526,117 | 9,208,312 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | $ 17.6 | $ 9.8 |
Advances, net (amounts related to VIEs of $608.4 and $587.1) | 608.4 | 587.1 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 462.1 |
Loans held for sale | 0 | 462.1 |
Loans held for investment - unsecuritized | 6.7 | 7.9 |
Other assets ($8.0 and $21.9 carried at fair value) ($3.2 and $1.5 related to VIEs) | 3.2 | 1.5 |
Other financing liabilities | 6.7 | 7.9 |
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | $ 512.3 | $ 512.5 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Servicing and subservicing fees | $ 862.6 | $ 781.9 | $ 737.3 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 36.1 | 79.7 | 60.7 |
Gain on loans held for sale, net | 22 | 145.8 | 137.2 |
Other revenue, net | 33.2 | 42.7 | 25.6 |
Total revenue | 953.9 | 1,050.1 | 960.9 |
MSR valuation adjustments, net | (10.4) | (98.5) | (135.2) |
Operating expenses | |||
Compensation and benefits | 289.4 | 297.9 | 265.3 |
Servicing and origination | 64.9 | 113.6 | 77.3 |
Professional services | 49.3 | 81.9 | 106.9 |
Technology and communications | 57.9 | 56 | 59.6 |
Occupancy and equipment | 41.8 | 36.5 | 47.5 |
Other expenses | 29.1 | 23.3 | 19.2 |
Total operating expenses | 532.4 | 609.3 | 575.7 |
Other income (expense) | |||
Interest income | 45.6 | 26.4 | 16 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (186) | (144) | (109.4) |
Pledged MSR liability expense ($59.2, $16.6 and $— due to related party) | (255) | (221.3) | (269.1) |
Gain (loss) on extinguishment of debt | 0.9 | (15.5) | 0 |
Earnings of equity method investee | 18.5 | 3.6 | 0 |
Other, net | (10.2) | 4.1 | 6.7 |
Total other income (expense), net | (386.2) | (346.7) | (355.7) |
Income (loss) before income taxes | 24.9 | (4.4) | (105.7) |
Income tax benefit | (0.8) | (22.4) | (65.5) |
Net income (loss) | $ 25.7 | $ 18.1 | $ (40.2) |
Earnings (loss) per share attributable to Ocwen stockholders - Basic and Diluted | |||
Basic | $ 2.97 | $ 2 | $ (4.59) |
Diluted | $ 2.85 | $ 1.93 | $ (4.59) |
Weighted average common shares outstanding | |||
Basic (in shares) | 8,647,399 | 9,021,975 | 8,748,725 |
Diluted (in shares) | 8,997,306 | 9,382,467 | 8,748,725 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense, related party | $ 42.1 | $ 31.7 | $ 0 |
Affiliated Entity | |||
Pledged MSR liability expense to related party | $ 59.2 | $ 16.6 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 25.7 | $ 18.1 | $ (40.2) |
Other comprehensive income (loss), net of income taxes | |||
Change in unfunded pension plan obligation liability | (0.2) | 6.5 | (1.6) |
Other | 0.1 | 0.2 | 0.1 |
Comprehensive income (loss) | $ 25.6 | $ 24.8 | $ (41.7) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Accounting Standards Update 2016-02 | Accounting Standards Update 2016-13 | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Accounting Standards Update 2016-02 | Accumulated Other Comprehensive Income (Loss), Net of Taxes |
Balance at (in shares) at Dec. 31, 2019 | 8,990,816 | |||||||
Balance at at Dec. 31, 2019 | $ 412.1 | $ 0.1 | $ 558.1 | $ (138.5) | $ (7.6) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (40.2) | (40.2) | ||||||
Cumulative-effect adjustments | $ 47 | $ 47 | ||||||
Repurchase of common stock, shares | (377,484) | |||||||
Repurchase of common stock, value | (4.6) | $ 0 | (4.6) | |||||
Additional shares issued on reverse stock split rounding | 4,692 | |||||||
Equity-based compensation and other (in shares) | 69,726 | |||||||
Equity-based compensation and other | 2.6 | $ 0 | 2.6 | |||||
Other comprehensive income (loss), net of income taxes | (1.5) | (1.5) | ||||||
Balance at (in shares) at Dec. 31, 2020 | 8,687,750 | |||||||
Balance at at Dec. 31, 2020 | 415.4 | $ 0.1 | 556.1 | (131.7) | (9.1) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 18.1 | 18.1 | ||||||
Cumulative-effect adjustments | $ 47 | |||||||
Additional shares issued on reverse stock split rounding | 0 | |||||||
Issuance of common stock (in shares) | 426,705 | |||||||
Issuance of common stock | 12.2 | $ 0 | 12.2 | |||||
Issuance of common stock warrants, net of issuance costs | 20 | 20 | ||||||
Equity-based compensation and other (in shares) | 93,857 | |||||||
Equity-based compensation and other | 4.4 | $ 0 | 4.4 | |||||
Other comprehensive income (loss), net of income taxes | $ 6.7 | 6.7 | ||||||
Balance at (in shares) at Dec. 31, 2021 | 9,208,312 | 9,208,312 | ||||||
Balance at at Dec. 31, 2021 | $ 476.7 | $ 0.1 | 592.6 | (113.6) | (2.4) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 25.7 | |||||||
Repurchase of common stock, shares | (1,750,557) | |||||||
Repurchase of common stock, value | (50) | $ 0 | (50) | |||||
Equity-based compensation and other (in shares) | 68,362 | |||||||
Equity-based compensation and other | 4.4 | $ 0 | 4.4 | |||||
Other comprehensive income (loss), net of income taxes | $ (0.1) | (0.1) | ||||||
Balance at (in shares) at Dec. 31, 2022 | 7,526,117 | 7,526,117 | ||||||
Balance at at Dec. 31, 2022 | $ 456.7 | $ 0.1 | $ 547 | $ (87.9) | $ (2.5) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 25.7 | $ 18.1 | $ (40.2) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
MSR valuation adjustments, net | 121.1 | 187.8 | 234.1 |
Provision for bad debts | 20.5 | 22.7 | 25.6 |
Depreciation | 10.5 | 10.3 | 19.1 |
Amortization of debt discount and issuance costs | 10.1 | 7.8 | 7 |
Amortization of Intangible Assets | 4.3 | 0.7 | 0 |
Loss (gain) on extinguishment of debt | (0.9) | 15.5 | 0 |
Provision for (reversal of) valuation allowance on deferred tax assets | (3.9) | 2.3 | 28.2 |
Decrease (increase) in deferred tax assets other than provision for valuation allowance | 4.6 | (2.1) | (29.6) |
Equity-based compensation expense | 4.6 | 4.7 | 2.4 |
Distribution of earnings from equity method investee | 18.5 | 3.6 | 0 |
Net gain on valuation of loans held for investment and HMBS-related borrowings | (8.1) | (18.3) | (10.1) |
Earnings of equity method investee | (18.5) | (3.6) | 0 |
Gain on loans held for sale, net | (22) | (145.8) | (137.2) |
Origination and purchase of loans held for sale | (17,582) | (19,972.4) | (7,552) |
Proceeds from sale and collections of loans held for sale | 17,590.1 | 19,349.3 | 7,430.5 |
Changes in assets and liabilities: | |||
Decrease in advances, net | 28.3 | 28.9 | 213.3 |
Decrease in receivables and other assets, net | 4.2 | 33.6 | 86.3 |
Increase (Decrease) in Derivative Assets and Liabilities | 6.9 | (12.5) | 22.2 |
Increase (decrease) in other liabilities | (40) | 3.2 | (28.7) |
Other, net | (0.8) | (2.2) | (9.9) |
Net cash provided by (used in) operating activities | 173.2 | (468.4) | 261 |
Cash flows from investing activities | |||
Origination of loans held for investment | (1,658.1) | (1,763.4) | (1,203.6) |
Principal payments received on loans held for investment | 1,581.1 | 1,628.3 | 944.7 |
Purchase of MSRs | (199.4) | (831.2) | (273.2) |
Proceeds from sale of MSRs | 155.7 | 0 | 0.2 |
Acquisition of loans held for investment, net | (4.5) | 0 | 0 |
Acquisition of reverse mortgage subservicing intangible assets | (6.9) | (9) | 0 |
Investment in equity method investee, net | (19) | (23.3) | 0 |
Acquisition of advances in connection with the purchase of MSRs | (6.3) | ||
Proceeds from sale of advances | 2.5 | 1.3 | 0.8 |
Purchase of real estate | (1.8) | (6.5) | (1.4) |
Proceeds from sale of real estate | 6.6 | 8.1 | 7.5 |
Additions to premises and equipment | (5.5) | (3.3) | (4.1) |
Other, net | 0.2 | 0.2 | 1.2 |
Net cash provided by (used in) investing activities | (149.1) | (1,005.1) | (527.9) |
Cash flows from financing activities | |||
Repayment of advance match funded liabilities, net | 1.4 | (69) | (97.8) |
Repayment of other financing liabilities | (111.9) | (91.2) | (101.8) |
Proceeds from (repayments of) mortgage loan warehouse facilities, net | (382.3) | 633.4 | 119.5 |
Proceeds from MSR financing facilities | 652.1 | 715.7 | 369 |
Repayment of MSR financing facilities | (596.9) | (250) | (300.6) |
Repurchase and repayment of Senior notes | (23.6) | (319.2) | 0 |
Proceeds from issuance of Senior notes and warrants | 0 | 647.9 | 0 |
Repayment of senior secured term loan (SSTL) borrowings | 0 | (188.7) | (141.1) |
Payment of debt issuance costs | (1.3) | (16.2) | (7.7) |
Proceeds from other financing liabilities - Sales of MSRs accounted for as a financing | 86.2 | 247 | 0 |
Proceeds from sale of Home Equity Conversion Mortgages (HECM, or reverse mortgages) accounted for as a financing (HMBS-related borrowings) | 1,780.4 | 1,674.9 | 1,232.6 |
Repayment of HMBS-related borrowings | (1,568.4) | (1,614.3) | (935.8) |
Issuance of common stock | 0 | 9.9 | 0 |
Repurchase of common stock | (50) | 0 | (4.6) |
Other, net | (0.5) | ||
Net cash provided by (used in) financing activities | (13.4) | 1,379.8 | 131.8 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10.7 | (93.7) | (135.1) |
Cash, cash equivalents and restricted cash at beginning of year | 263.5 | 357.2 | 492.3 |
Cash, cash equivalents and restricted cash at end of year | 274.2 | 263.5 | 357.2 |
Supplemental cash flow information | |||
Interest paid | 168.5 | 125.1 | 97 |
Income tax payments (refunds), net | (26.9) | (22.3) | (43.5) |
Fair Value of Assets Acquired | 224.1 | 0 | 0 |
Liabilities Assumed | (219.5) | 0 | 0 |
Consideration Received for Beneficial Interest Obtained for Transferring Financial Asset | 4.5 | 0 | 0 |
Supplemental non-cash investing and financing activities | |||
Right-of-use asset | 11.4 | 4.5 | 3.7 |
Lease liability | 11.4 | 4.2 | 2.9 |
Transfers from loans held for investment to loans held for sale | 8 | 4.3 | 3.1 |
Transfers of loans held for sale to real estate owned (REO) | 3.5 | 9.1 | 3.7 |
Derecognition of MSRs | (39) | 0 | (263.7) |
Derecognition of financing liabilities: | (35.9) | 0 | (263.7) |
Initial consolidation (subsequent deconsolidation) of mortgage-backed securitization trusts (VIEs) - Loans held for investments | 0 | 0 | (10.7) |
Initial consolidation (subsequent deconsolidation) of mortgage-backed securitization trusts (VIEs) - Other financing liabilities | 0 | 0 | (9.5) |
Recognition of future draw commitments for HECM loans at fair value upon adoption of FASB ASU No. 2016-13 | 0 | 0 | 47 |
Restricted cash and equivalents: | |||
Cash and cash equivalents | 208 | 192.8 | 284.8 |
Debt service accounts | 22.3 | 10 | 20.1 |
Other restricted cash | 43.9 | 60.7 | 52.3 |
Proceeds from other financing liabilities - Excess Servicing Spread (ESS) liability | $ 200.9 | $ 0 | $ 0 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Note 1 — Organization, Basis of Presentation and Significant Accounting Policies Organization Ocwen Financial Corporation (NYSE: OCN) (Ocwen, OFC, we, us and our) is a non-bank mortgage servicer and originator providing solutions to homeowners, clients, investors and others through its primary operating subsidiary, PHH Mortgage Corporation (PMC). We are headquartered in West Palm Beach, Florida with offices and operations in the United States (U.S.), the United States Virgin Islands (USVI), India and the Philippines. Ocwen is a Florida corporation organized in February 1988. Ocwen directly or indirectly owns all of the outstanding common stock of its operating subsidiaries, including PMC since its acquisition on October 4, 2018, Ocwen Financial Solutions Private Limited (OFSPL) and Ocwen USVI Services, LLC (OVIS). Effective May 3, 2021, Ocwen holds a 15% equity interest in MAV Canopy HoldCo I, LLC (MAV Canopy) that invests in mortgage servicing assets through its licensed mortgage subsidiary MSR Asset Vehicle LLC (MAV). See Note 11 — Investment in Equity Method Investee and Related Party Transactions for additional information. We perform servicing activities related to our own mortgage servicing rights (MSRs) portfolio (primary) and on behalf of other servicers (subservicing), the largest being Rithm Capital Corp. (Rithm), formerly known as New Residential Investment Corp. (NRZ), and investors (primary and master servicing), including the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively referred to as GSEs), the Government National Mortgage Association (Ginnie Mae, and together with the GSEs, the Agencies) and private-label securitizations (PLS, or non-Agency). We source our servicing portfolio through multiple channels, including retail, wholesale, correspondent, flow MSR purchase agreements, the Agency Cash Window programs and bulk MSR purchases. We originate, sell and securitize conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as Agency or GSE) loans and government-insured (Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or United States Department of Agriculture (USDA)) forward mortgage loans, generally with servicing retained. The GSEs or Ginnie Mae guarantee these mortgage securitizations. We originate and purchase Home Equity Conversion Mortgage (HECM) loans, or reverse mortgages, that are mostly insured by the FHA and we are an approved issuer of Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae. We had a total of approximately 4,900 employees at December 31, 2022 of which approximately 3,200 were located in India and approximately 500 were based in the Philippines. Our operations in India and the Philippines provide internal support services to our loan servicing and originations businesses and our corporate functions. Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation Principles of Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (GAAP). Our consolidated financial statements include the accounts of Ocwen, its wholly-owned subsidiaries and any variable interest entity (VIE) for which we have determined that we are the primary beneficiary. We apply the equity method of accounting to investments where we are able to exercise significant influence, but not control, over the policies and procedures of the entity. We have eliminated intercompany accounts and transactions in consolidation. Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the U.S. dollar. Re-measurement adjustments of foreign-denominated amounts to U.S. dollars are included in Other, net in our consolidated statements of operations. Change in Presentation Other Financing Liabilities Effective in the fourth quarter of 2022, in our consolidated statements of operations we now present all fair value gains and losses of Other financing liabilities, at fair value in MSR valuation adjustments, net (previously reported in Pledged MSR liability expense). Other financing liabilities, at fair value include the financing liabilities recognized upon transfers of MSRs that do not meet the requirements for sale accounting treatment (also referred as Pledged MSR liability) and for which we elected the fair value option. The Pledged MSR liability is the obligation to deliver Rithm and MAV all contractual cash flows associated with the underlying MSR. The Pledged MSR liability expense now reflects servicing fee remittance to Rithm and MAV, net of subservicing fee. The purpose of this presentation change is to present all fair value gains and losses of MSRs and MSR related financial instruments for which we elected the fair value option in the same financial statement line item, and provide additional insights on the performance of our interest rate risk management activities. The consolidated statements of operations and the consolidated statements of cash flows for the years ended December 31, 2021 and 2020 have been recast to conform to the current year presentation, with the impact summarized in the table below. These presentation changes had no impact on revenue, operating expenses or net income (loss) in our consolidated statements of operations, no impact on our consolidated balance sheets and no impact on operating, investing and financing cash flows in our consolidated statements of cash flows. Years Ended December 31, 2021 2020 Consolidated Statements of Operations From Other income (expense) - Pledged MSR liability expense $ (11.4) $ (116.8) To MSR valuation adjustments, net 11.4 116.8 Income (loss) before income taxes $ — $ — Consolidated Statements of Cash Flows Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: From Loss (gain) on valuation of Pledged MSR financing liability $ (77.9) $ 17.9 To MSR valuation adjustments, net 77.9 (17.9) Net cash provided by (used in) operating activities $ — $ — The impact of the presentation changes on the quarterly periods for the years ended December 31, 2022 and 2021 is summarized in the following tables: Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Operations 2022 From Other income (expense) - Pledged MSR liability expense $ 28.5 $ 11.7 $ 67.8 $ (28.0) To MSR valuation adjustments, net (28.5) (11.7) (67.8) 28.0 Net $ — $ — $ — $ — 2021 From Other income (expense) - Pledged MSR liability expense $ (16.1) $ (12.5) $ 39.5 $ (22.4) To MSR valuation adjustments, net 16.1 12.5 (39.5) 22.4 $ — $ — $ — $ — Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Cash Flows 2022 From Loss (gain) on valuation of Pledged MSR financing liability (55.5) (39.9) (89.6) (3.7) To MSR valuation adjustments, net 55.5 39.9 89.6 3.7 $ — $ — $ — $ — 2021 From Loss (gain) on valuation of Pledged MSR financing liability (1.6) (8.4) (61.3) (6.7) To MSR valuation adjustments, net 1.6 8.4 61.3 6.7 $ — $ — $ — $ — Change in Statement of Cash Flows Accounting Policy - Presentation of Equity Method Investee Distributions Effective December 31, 2022, Ocwen changed its accounting policy from the nature of the distribution approach to the cumulative earnings approach for classifying distributions from its equity method investee MAV Canopy between operating and investing cash flows in accordance with, and as required by ASC 230 Statement of Cash Flows, as certain distributions from MAV Canopy do not differentiate between returns on investment and returns of investment. For the year ended December 31, 2021 (fourth quarter of 2021), the consolidated statement of cash flows has been revised to reclassify $3.6 million of distributions from investing activity (Investment in equity method investee, net) to operating activity (Distribution of earnings from equity method investee) to conform to the current year presentation policy. The presentation change had no impact on financing activity or the net change in cash, cash equivalents and restricted cash. The impact of the presentation changes on the quarterly periods for the year ended December 31, 2022 (nil in 2021) is summarized in the following table: 2022 Year to Date Periods (Unaudited) Three Months Ended March 31 Six Months Ended June 30 Nine Months Ended September 30 Statement of Cash Flows From Cash flows from investing activities - Investment in equity method investee, net $ (12.0) $ (12.0) $ (14.0) To Cash flows from operating activities - Distribution of earnings from equity method investee 12.0 12.0 14.0 $ — $ — $ — Other Change Effective in the fourth quarter of 2022, we have changed the name of consolidated statement of operations line item “Reverse mortgage revenue, net” to “Gain on reverse loans held for investment and HMBS-related borrowings, net”. No changes have been made to the presentation or disclosures, or to the components or accounting of this line item as a result of the name change. Given our acquisition of a reverse mortgage subservicing business in late 2021, the name change in 2022 is intended to clarify the separate presentation in the consolidated statements of operations of fees earned from subservicing reverse mortgage loans that are included in Servicing and subservicing fees. See Significant Accounting Policies section below. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. Significant Accounting Policies Cash and cash equivalents Cash and cash equivalents includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less. Restricted Cash Restricted cash includes amounts specifically designated to repay debt, to provide over-collateralization for MSR financing facilities, mortgage loan warehouse facilities and match funded debt facilities, and to provide additional collateral to support certain obligations, including letters of credit. Mortgage Servicing Rights MSRs are assets representing our right to service portfolios of mortgage loans. We recognize MSRs when originated or purchased loans are securitized or sold in the secondary market. We also acquire MSRs through flow purchase agreements, Agency Cash Window programs, and bulk acquisition transactions, or through asset purchases or business combination transactions . The unpaid principal balance (UPB) of the loans underlying the MSRs is not included on our consolidated balance sheets. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, we do not recognize an MSR. All newly acquired or retained MSRs are initially measured at fair value. To the extent any portfolio contract is not expected to compensate us adequately for performing the servicing, we would recognize a servicing liability. We define contracts as Agency, government-insured or non-Agency (commonly referred to as non-prime, subprime or private-label loans) based on applicable servicing guidelines, underwriting standards and borrower risk characteristics. We account for servicing assets and servicing liabilities at fair value, and report changes in fair value in earnings (MSR valuation adjustments, net) in the period in which the changes occur. We earn fees for servicing and subservicing both forward and reverse mortgage loans. We collect servicing and subservicing fees, generally expressed as a percent of UPB or fee per loan by loan performing status, from the borrowers’ payments or from the owner of the servicing in subservicing relationships. In addition to servicing and subservicing fees, we also report late fees, prepayment penalties, float earnings and other ancillary fees as revenue in Servicing and subservicing fees in our consolidated statements of operations. We recognize servicing and subservicing fees as revenue when the fees are earned, which is generally when the borrowers’ payments are collected, when loans are modified or liquidated through the sale of the underlying real estate collateral, or when subservicing customers are invoiced. Advances During any period in which a borrower does not make payments, servicing and subservicing contracts may require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process modifications and foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing and subservicing contract. Each servicing and subservicing contract is associated with specific loans, identified as a pool. When we make an advance on a loan under each servicing or subservicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from guarantors (GSEs), insurers (FHA/VA) and investors, for modified and liquidated loans in accordance with the governing servicing contract or published servicing guide. Most of our servicing and subservicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans that are the subject of that servicing or subservicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. Servicing advances are financial assets subject to the credit loss allowance model under Accounting Standards Codification (ASC) 326: Financial Instruments - Credit Losses (CECL). The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. Expected credit losses on advances are expected to be nil, or de minimis, as advances are generally fully reimbursable or recoverable under the terms of the servicing agreements. GSE and government-insured advances are subject to implicit and government guarantees, respectively, regarding advance reimbursement and the non-Agency pooling and servicing agreement terms regarding advance recovery, the credit loss history and the expectation over the remaining life of the advance portfolio support a zero allowance for credit loss. Servicing advances may also include claimable (with investors) but nonrecoverable expenses, for example due to servicer error, such as lack of reasonable documentation as to the type and amount of advances. Such servicer errors result in the determination that the advance is uncollectible and represent operational losses resulting from not complying with servicing guidelines as established by the respective party (i.e., trustee, master servicer, investor, mortgage insurer). We establish an allowance for such operational losses through a charge to earnings (Servicing and origination expense) to the extent that a portion of advances are uncollectible taking into consideration, among other factors, probability of cure or modification, length of delinquency and the amount of the advance. We also assess collectability using proprietary cash flow projection models that incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, estimated time to a foreclosure sale, estimated costs of foreclosure action, estimated future property tax payments and the estimated value of the underlying property net of estimated carrying costs, commissions and closing costs. Under the terms of our subservicing agreements, we are generally reimbursed by our subservicing clients on a monthly or more frequent basis. For those advances that have been reimbursed, i.e., that are off-balance sheet, if a loss contingency is probable and reasonably estimable, we recognize a loss contingency accrual for the amount of advances deemed uncollectible caused by our failure to comply with the subservicing agreements or our servicing practices. We report such loss contingency within Other liabilities - Liability for indemnification obligations. Receivables Receivables are financial assets subject to the expected credit loss allowance model under ASC 326: Financial Instruments - Credit Losses (CECL). The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. We generally charge off the receivable balance when management determines the receivable to be uncollectible and when the receivable has been classified as a loss by our servicing claims analysis process. Loans repurchased from Ginnie Mae guaranteed securitizations in connection with loan resolution activities are classified as receivables (government-insured claims). The government-insured claims that do not exceed HUD, VA, FHA or USDA insurance limits are not subject to any allowance for losses as guaranteed by the U.S. government. The receivable amount in excess of the guaranteed claim limits or recoverable amounts per insurer guidelines or as a result of servicer error, such as exceeding key filing or foreclosure timelines, is subject to an allowance for losses. Loans Held for Sale Loans held for sale include forward and reverse mortgage loans that we do not intend to hold until maturity. We report loans held for sale at either fair value or the lower of cost or fair value computed on an aggregate basis. Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. In addition, effective January 1, 2020, repurchased loans by our Servicing business, including those loans we repurchase from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines, are accounted for under the fair value election. For loans that we elected to measure at fair value on a recurring basis, we report changes in fair value in Gain on loans held for sale, net in the consolidated statements of operations in the period in which the changes occur. These loans are expected to be sold into the secondary market to the GSEs, into Ginnie Mae guaranteed securitizations or to third-party investors. For the legacy portfolio of loans measured at the lower of cost or fair value, we account for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other, net, in the consolidated statements of operations in the period in which the change occurs. We report any gain or loss on the transfer of loans held for sale in Gain on loans held for sale, net in the consolidated statements of operations along with the changes in fair value of the loans and the gain or loss on any related derivatives. Gains or losses on sales or securitizations take into consideration any retained interests, including servicing rights and representation and warranty obligations, both of which are initially recorded at fair value at the date of sale in Gain on loans held for sale, net, in our consolidated statements of operations. We include all changes in loans held for sale and related derivative balances in operating activities in the consolidated statements of cash flows. We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent for more than 89 days, or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse the interest that we have accrued but not yet received. We return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. Loans Held for Investment Originated and purchased reverse mortgage loans that are insured by the FHA and pooled into Ginnie Mae guaranteed securities that we sell into the secondary market with servicing rights retained are classified as loans held for investment. We have elected to measure these loans at fair value, with changes in fair value reported in Gain on reverse loans held for investment and HMBS-related borrowings, net in the consolidated statements of operations. Loan transfers in these Ginnie Mae securitizations do not meet the definition of a participating interest and as a result, the transfers of the reverse mortgages do not qualify for sale accounting. Therefore, we account for these transfers as financings, with the reverse mortgages classified as Loans held for investment, at fair value, on our consolidated balance sheets, with no gain or loss recognized on the transfer. We record the proceeds from the transfer of assets as secured borrowings (HMBS-related borrowings) and recognize no gain or loss on the transfer. The fair value of HECM loans includes the fair value of future scheduled and unscheduled draw commitments for HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize (referred as tails). Effective January 1, 2019, we elected to fair value future draw commitments for HECM loans purchased or originated after December 31, 2018. The value of future draw commitments for HECM loans purchased or originated before January 1, 2019 were recognized as the draws were securitized or sold. Effective January 1, 2020, in connection with the adoption of Accounting Standard Update (ASU) 2016-13 and ASU 2019-04: Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, we made an irrevocable fair value election on all future draw commitments for HECM loans that were purchased or originated before January 1, 2019. We recorded cumulative-effect adjustments of $47.0 million to retained earnings as of January 1, 2020, to reflect the excess of the fair value over the carrying amount. We report originations and collections of HECM loans in investing activities in the consolidated statements of cash flows. We report net fair value gains on HECM loans and the related HMBS borrowings as an adjustment to the net cash provided by or used in operating activities in the consolidated statements of cash flows. Proceeds from securitizations of HECM loans and payments on HMBS-related borrowings are included in financing activities in the consolidated statements of cash flows. Gain on Reverse Loans Held for Investment and HMBS-Related Borrowings, Net We measure the HECM loans held for investment and HMBS-related borrowings at fair value on a recurring basis. The fair value gains and losses of the HECM loans and HMBS-related borrowings are included in Gain on reverse loans held for investment and HMBS-related borrowings, net in our consolidated statements of operations. Included in net fair value gains and losses on the securitized HECM loans and HMBS-related borrowings are the interest income on the securitized HECM loans and the interest expense on the HMBS-related borrowings, together with the realized gains or losses on tail securitization. In addition, Gain on reverse loans held for investment and HMBS-related borrowings, net includes the fair value changes of the interest rate lock commitments related to new reverse mortgage loans through securitization date, reported in the Originations segment. Upfront costs and fees related to loans held for investment, including broker fees, are recognized in Gain on reverse loans held for investment and HMBS-related borrowings, net in the consolidated statement of operations as incurred and are not capitalized. Premiums on loans purchased via the correspondent channel are capitalized upon origination because they represent part of the purchase price. However, the loans are subsequently measured at fair value on a recurring basis. Gain on reverse loans held for investment and HMBS-related borrowings, net excludes subservicing fees and ancillary income associated with our subservicing agreements, that are reported in Servicing and subservicing fees in our consolidated statements of operations. VIEs and Transfers of Financial Assets and MSRs We securitize, sell and service forward and reverse residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. We typically retain economic interests in the securitized assets in the form of servicing rights and obligations. In order to efficiently finance our assets and operations and create liquidity, we may sell servicing advances, MSRs or the right to receive certain servicing fees relating to MSRs (Rights to MSRs). In order to determine whether or not a VIE is required to be consolidated, we consider our ongoing involvement with the VIE. In circumstances where we have both the power to direct the activities that most significantly impact the performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be significant, we would conclude that we would consolidate the entity, which precludes us from recording an accounting sale in connection with the transfer of the financial assets. In the case of a consolidated VIE, we continue to report the underlying residential mortgage loans or servicing advances, and we record the securitized debt on our consolidated balance sheet. In the case of transfers where either one or both of the power or economic criteria above are not met, we evaluate whether a sale has occurred for accounting purposes. In order to recognize a sale of financial assets, the transferred assets must be legally isolated, not be constrained by restrictions from further transfer and be deemed to be beyond our control. If the transfer does not meet any of these three criteria, the financial assets are not derecognized and the transaction is accounted for consistent with a secured financing. In certain situations, we may have continuing involvement in transferred loans through our retained servicing. Transactions involving retained servicing would still be eligible for sale accounting, as we have ceded effective control of these loans to the purchaser. A sale of MSRs shall be recognized as a sale for accounting purposes if substantially all the risks and rewards inherent in owning the MSRs have been effectively transferred to the buyer, title has transferred to the buyer and any protection provisions retained by the seller are minor and can be reasonably estimated. In the case of transfers of MSRs accounted for as a sale where we retain the right to subservice, we defer any related gain or loss and amortize the balance over the life of the subservicing agreement. A loss shall be recognized currently if the transferor determines that prepayments of the underlying mortgage loans may result in performing the future servicing at a loss. Other Financing Liabilities and Pledged MSR Liability Expense A sale of mortgage servicing rights with a subservicing contract may not be treated as a sale when the terms of the subservicing contract unduly limit the buyer's ability to exercise ownership control over the servicing rights or results in the seller retaining some of the risks and rewards of ownership. If the buyer cannot cancel or decline to renew the subservicing contract after a reasonable period of time, the buyer is precluded from exercising certain rights of ownership. Conversely, if the seller cannot cancel the subservicing contract after a reasonable period of time, the seller has not transferred substantially all of the risks of ownership. If the criteria for sale recognition are not met, the transferred MSRs are not derecognized and the transaction is accounted for consistent with a secured financing. Accordingly, when a transaction does not achieve sale treatment, we recognize the proceeds received and a corresponding liability, referred to as Pledged MSR liability within Other financing liabilities, that we subsequently remeasure at fair value with fair value gains and losses reported with in MSR valuation adjustments, net in the consolidated statements of operations. In the case of a sale of MSRs accounted for as a secured financing where we retain the right to subservice, no gain or loss is generally recognized on the transfer. A gain or loss may be recognized to the extent the estimated fair value of the pledged MSR liability differs from the total proceeds of the MSR transfer. If the criteria for MSR sale recognition are not met, the servicing fee collected on behalf of MSR transferee and related ancillary income remain reported within Servicing and subservicing fees. Servicing fee remittance, net of the subservicing fee we are entitled to, is reported within Pledged MSR liability expense in the consolidated statements of operations. Subsequent to the determination that a transaction does not meet the accounting sale criteria, we may determine that we meet the criteria. In the event we subsequently meet the accounting sale criteria, we derecognize the transferred assets and related liabilities. See Note 8 — Other Financing Liabilities, at Fair Value. In addition, we report within Other financing liabilities certain financing liabilities, including certain ESS liabilities collateralized by MSR portfolios, for which we elected to measure under the fair value option. The fair value gains and losses of these financial liabilities are reported with in MSR valuation adjustment, net in the consolidated statements of operations. The excess servicing spread remittance is reported within Pledged MSR liability expense in the consolidated statement of operations. Contingent Loan Repurchase Asset and Liability In connection with the Ginnie Mae early buyout program, our agreements provide either that: (a) we have the right, but not the obligation, to repurchase previously transferred mortgage loans under certain conditions, including the mortgage loans becoming eligible for pooling under a program sponsored by Ginnie Mae; or (b) we have the obligation to repurchase previously transferred mortgage loans that have been subject to a successful trial modification before any permanent modification is made. Once these conditions are met, we have effectively regained control over the mortgage loan(s), and under GAAP, must re-recognize the loans on our consolidated balance sheets and establish a corresponding repurchase liability. With respect to those loans that we have the right, but not the obligation, to repurchase under the applicable agreement, this requirement applies regardless of whether we have any intention to repurchase the loan. We re-recognize the loans as Contingent loan repurchase in Other assets and a corresponding liability in Other liabilities. Derivative Financial Instruments We use derivative instruments to manage the fair value changes in our MSRs, interest rate lock commitments and loan portfolios which are exposed to interest rate risk. We do not use derivative instruments for trading or speculative purposes. We recognize all derivative instruments at fair value on our consolidated balance sheets in Other assets and Other liabilities. Derivative instruments are generally entered into as economic hedges against changes in the fair value of a recognized asset or liability and are not designated as hedges for accounting purposes. We generally report the changes in fair value of such derivative instruments in the same line item in the consolidated statement of operation |
Securitizations and Variable In
Securitizations and Variable Interests Entities | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Note 2 — Securitizations and Variable Interest Entities We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with asset-backed financing arrangements. We have aggregated these transfers of financial assets and asset-backed financing arrangements using special purpose entities (SPEs) or VIEs into the following groups: (1) securitizations of residential mortgage loans, (2) financings of loans held for sale, (3) financings of advances and (4) MSR financings. Financing transactions that do not use SPEs or VIEs are disclosed in Note 13 — Borrowings. From time to time, we may acquire beneficial interests issued in connection with mortgage-backed securitizations where we may also be the master and/or primary servicer. These beneficial interests consist of subordinate and residual interests acquired from third-parties in market transactions. We consolidate the VIE when we conclude we are the primary beneficiary. Securitizations of Residential Mortgage Loans Transfers of Forward Loans We sell or securitize forward loans that we originate or purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization typically occurs within 30 days of loan closing or purchase. We act only as a fiduciary and do not have a variable interest in the securitization trusts. As a result, we account for these transactions as sales upon transfer. The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Years Ended December 31, 2022 2021 2020 Proceeds received from securitizations $ 17,027.0 $ 19,293.2 $ 7,533.3 Servicing fees collected (1) 91.8 63.7 47.2 Purchases of previously transferred assets, net of claims reimbursed (11.4) (17.4) (6.9) $ 17,107.4 $ 19,339.5 $ 7,573.6 (1) We receive servicing fees based upon the securitized loan balances and certain ancillary fees, all of which are reported in Servicing and subservicing fees in the consolidated statements of operations. In connection with these transfers, we retained MSRs of $234.7 million, $222.7 million and $68.7 million during 2022, 2021 and 2020, respectively. We securitize forward and reverse residential mortgage loans involving the GSEs and loans insured by the FHA, VA or USDA through Ginnie Mae. Certain obligations arise from the agreements associated with our transfers of loans. Under these agreements, we may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor or insurer for losses incurred due to material breach of contractual representations and warranties. We receive customary origination representations and warranties from our network of approved correspondent lenders. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur. Also, refer to the Loan Put-Back and Related Contingencies section of Note 25 — Contingencies. The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: December 31, 2022 2021 Carrying value of assets MSRs, at fair value $ 524.3 $ 360.8 Advances 75.9 151.2 UPB of loans transferred (1) 37,571.1 31,864.8 Maximum exposure to loss (2) $ 38,171.2 $ 32,376.8 (1) Includes $6.8 billion and $5.6 billion of loans delivered to Ginnie Mae as of December 31, 2022 and 2021, respectively, and includes loan modifications repurchased and delivered through the Ginnie Mae Early Buyout Program (EBO). (2) The maximum exposure to loss does not take into consideration any recourse available to us, including from the underlying collateral or from correspondent sellers. Also, refer to the Loan Put-Back and Related Contingencies section of Note 25 — Contingencies. At December 31, 2022 and 2021, 2.5% and 3.6%, respectively, of the transferred residential loans that we service were 60 days or more past due, including 60 days or more past due loans under forbearance. This includes 8.3% and 12.0%, respectively, of loans delivered to Ginnie Mae that are 60 days or more past due. Transfers of Reverse Mortgages We pool HECM loans into HMBS that we sell into the secondary market with servicing rights retained. We have determined that loan transfers in the HMBS program do not meet the definition of a participating interest and the servicing requirements require the issuer/servicer to absorb some level of interest rate risk, cash flow timing risk and incidental credit risk. As a result, the transfers of the HECM loans do not qualify for sale accounting, and therefore, we account for these transfers as financings. Under this accounting treatment, the HECM loans are classified as Loans held for investment, at fair value, on our consolidated balance sheets. Holders of participating interests in the HMBS have no recourse against the assets of Ocwen, except with respect to standard representations and warranties and our contractual obligation to service the HECM loans and the HMBS. Financing of Loans Held for Sale using SPEs In 2021, we entered into a warehouse mortgage loan financing facility with a third-party lender involving an SPE (trust). This facility is structured as a gestation repurchase facility whereby Agency mortgage loans are transferred by PMC to the trust for collateralization purposes. We have determined that the trust is a VIE for which we are the primary beneficiary. Therefore, we have included the trust in our consolidated financial statements. We have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance given we are the sole beneficial owner of the certificates issued by the trust and the servicer of the mortgage loans that result in cash flows to the trust. In addition, we have designed the trust at inception to facilitate the funding facility. As of December 31, 2022, the certificates issued by the trust and pledged as collateral have been reduced to zero. See Note 13 — Borrowings. The table below presents the carrying value and classification of the assets and liabilities of the loans held for sale financing facility: December 31, 2022 2021 Mortgage loans (Loans held for sale, at fair value) $ — $ 462.1 Outstanding borrowings (Mortgage loan warehouse facilities) — 459.3 Financings of Advances using SPEs Match funded advances, i.e., advances that are pledged as collateral to our advance facilities, result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because we have determined that we are the primary beneficiary of the SPEs. Through wholly-owned subsidiaries we hold the sole equity interests in the SPEs and service the mortgage loans that generate the advances. These SPEs issue debt supported by collections on the transferred advances, and we refer to this debt as Advance match funded liabilities. We make transfers to these SPEs in accordance with the terms of our advance financing facility agreements. Debt service accounts require us to remit collections on pledged advances to the trustee within two days of receipt. Collected funds that are not applied to reduce the related Advance match funded debt until the payment dates specified in the indenture are classified as debt service accounts within Restricted cash in our consolidated balance sheets. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest, as well as amounts set aside as required by our warehouse facilities as security for our obligations under the related agreements. The funds are held in interest earning accounts and those amounts related to match funded advance facilities are held in the name of the SPE created in connection with the facility. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the SPE. Holders of the debt issued by these entities have recourse only to the assets of the SPE for satisfaction of the debt. Amounts due to affiliates are eliminated in consolidation in our consolidated balance sheets. The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: December 31, 2022 2021 Match funded advances (Advances, net) $ 608.4 $ 587.1 Debt service accounts (Restricted cash) 15.8 7.7 Unamortized deferred lender fees (Other assets) 2.3 1.3 Prepaid interest (Other assets) 0.9 0.2 Advance match funded liabilities 512.5 512.3 MSR Financings using SPEs In 2019, we entered into a financing facility with a third-party secured by certain of PMC’s Fannie Mae and Freddie Mac MSRs (Agency MSRs). Two SPEs (PMC ESR Trusts) were established in connection with this facility. We also entered into an MSR Excess Spread Participation Agreement under which we created a 100% participation interest in the Portfolio Excess Servicing Fees, pursuant to which the holder of the participation interest is entitled to receive certain funds collected on the related portfolio of mortgage loans (other than ancillary income and advance reimbursement amounts) with respect to such Portfolio Excess Servicing Fees. This participation interest has been contributed to the trusts. In connection with this facility, we entered into repurchase agreements with a third-party pursuant to which we sold trust certificates of the PMC ESR Trusts representing certain indirect economic interests in the Agency MSRs and agreed to repurchase such certificates at a future date at the repurchase price set forth in the repurchase agreements. Our obligations under the facility are secured by a lien on the related Agency MSRs. In addition, Ocwen guarantees the obligations under the facility. In 2019, we issued Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A (PLS Notes) secured by certain of PMC’s private label MSRs (PLS MSRs). The single class PLS Notes are an amortizing debt instrument with a fixed interest rate. The PLS Notes are issued by a trust that is included in our consolidated financial statements. The trust, PMC PLS ESR Issuer LLC (PLS Issuer) was established in this connection as a wholly-owned subsidiary of PMC. For collateralization purposes, PMC entered into an MSR Excess Spread Participation Agreement with PLS Issuer, whereby PMC created a participation interest in the Excess Servicing Fees, related float and REO fees associated with a PLS MSR portfolio PMC holds and granted a security interest to PLS Issuer in the underlying PLS MSRs. PLS Issuer’s obligations under the PLS Notes credit agreement are secured by a lien on the related PLS MSRs. The PLS Issuer assigned the security interest in the PLS MSRs to the collateral agent for the noteholders. On March 15, 2022, we replaced the existing PLS Notes with a new series of notes, Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 Class A, at an initial principal amount of $75.0 million . An SPE, PMC PLS ESR Issuer LLC (PLS Issuer), was established in this connection as a wholly-owned subsidiary of PMC. Ocwen guarantees the obligations of PLS Issuer under the facility. We determined that the PMC ESR Trusts established in connection with the Agency MSR financing facility, and PLS Issuer established in connection with the PLS MSR financing facility, are VIEs for which we are the primary beneficiary. Therefore, we have included the PMC ESR Trusts and PLS Issuer in our consolidated financial statements. We have the power to direct the activities of these VIEs that most significantly impact the respective VIE’s economic performance given that we are the servicer of the MSRs that result in cash flows to these VIEs. In addition, PMC has designed the PMC ESR Trusts and PLS Issuer at inception to facilitate these funding facilities under which we have the obligation to absorb the losses of the VIEs which could be potentially significant to the VIEs. The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility and the PLS Notes facility: December 31, 2022 2021 MSRs pledged (MSRs, at fair value) $ 696.9 $ 730.4 Debt service account (Restricted cash) 1.8 2.1 Unamortized deferred lender fees (Other assets) 1.1 1.5 Outstanding borrowings (MSR financing facilities, net) 366.5 359.2 Unamortized debt issuance costs (MSR financing facilities, net) 0.8 0.4 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 3 — Fair Value Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: December 31, 2022 2021 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 617.8 $ 617.8 $ 917.5 $ 917.5 Loans held for sale, at lower of cost or fair value (b) 3 4.9 4.9 11.0 11.0 Total Loans held for sale $ 622.7 $ 622.7 $ 928.5 $ 928.5 Loans held for investment, at fair value Loans held for investment - Reverse mortgages (a) 3 $ 7,504.1 $ 7,504.1 $ 7,199.8 $ 7,199.8 Loans held for investment - Restricted for securitization investors (a) 3 6.7 6.7 7.9 7.9 Total loans held for investment 7,510.8 7,510.8 7,207.7 7,207.7 Advances, net (c) 3 718.9 718.9 772.4 772.4 Receivables, net (c) 3 180.8 180.8 180.7 180.7 Financial liabilities: Advance match funded liabilities (c) 3 $ 513.7 $ 513.7 $ 512.3 $ 512.0 Financing liabilities, at fair value: HMBS-related borrowings (a) 3 $ 7,326.8 $ 7,326.8 $ 6,885.0 $ 6,885.0 Other financing liabilities: Financing liability - Pledged MSR liability (a) 3 931.7 931.7 797.1 797.1 Financing liability - Excess Servicing Spread (ESS) (a) 3 199.0 199.0 — — Financing liability - Owed to securitization investors (a) 3 6.7 6.7 7.9 7.9 Total Other financing liabilities $ 1,137.4 $ 1,137.4 $ 805.0 $ 805.0 Mortgage loan warehouse facilities (c) 3 $ 702.7 $ 702.7 $ 1,085.1 $ 1,085.1 MSR financing facilities (c) (d) 3 953.8 932.1 900.8 873.8 Senior notes: PMC Senior notes due 2026 (c) (d) 2 369.4 331.4 392.6 413.5 OFC Senior secured notes due 2027 (c) (d) 3 230.2 223.9 222.2 261.5 Total Senior notes $ 599.6 $ 555.2 $ 614.8 $ 674.9 December 31, 2022 2021 Level Carrying Value Fair Value Carrying Value Fair Value Derivative financial instrument assets (liabilities), net Interest rate lock commitments (IRLCs) (a) 3 $ (0.7) $ (0.7) $ 18.1 $ 18.1 Forward sales of loans (a) 1 0.5 0.5 0.4 0.4 TBA / Forward mortgage-backed securities (MBS) trades (a) 1 (0.7) (0.7) (0.3) (0.3) Interest rate swap futures (a) 1 (13.6) (13.6) 1.7 1.7 TBA forward Pipeline trades (a) 1 6.6 6.6 — — Option contracts (a) 2 — — (0.3) (0.3) Other (a) 3 (0.1) (0.1) (1.1) (1.1) MSRs (a) 3 $ 2,665.2 $ 2,665.2 $ 2,250.1 $ 2,250.1 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Disclosed, but not measured, at fair value. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 13 — Borrowings for additional information . (e) Loans repurchased from Ginnie Mae securitizations with a fair value of $32.1 million and $220.9 million at December 31, 2022 and 2021, respectively, are classified as Level 3. The remaining balance of loans held for sale at fair value is classified as Level 2. The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis: Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Year Ended December 31, 2022 Beginning balance $ 7.9 $ (7.9) 220.9 $ — $ 18.1 Purchases, issuances, sales and settlements Purchases — — 140.4 — — Issuances (1) — — — (200.9) 168.0 Sales — — (318.0) — — Settlements (1.2) 1.2 — 6.6 — Transfers: Loans held for sale, at fair value (1) — — — — (141.5) Receivables, net — — (4.2) — — Other assets and liabilities — — (0.3) (6.1) — Net addition (disposition/derecognition) (1.2) 1.2 (182.1) (200.4) 26.5 Change in fair value included in earnings (1) — — (6.8) 1.4 (45.3) Ending balance $ 6.7 $ (6.7) $ 32.1 $ (199.0) $ (0.7) Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2021 Beginning balance $ 9.8 $ (9.8) $ 51.1 $ 2.0 $ 22.7 Purchases, issuances, sales and settlements Purchases — — 436.2 — — Issuances (1) — — — — 627.7 Sales — — (260.0) (1.6) — Settlements (1.9) 1.9 — — — Transfers: Loans held for sale, at fair value (1) — — — — (591.7) Receivables, net — — (1.6) — — Other assets — — (0.4) — — Net addition (disposition/derecognition) (1.9) 1.9 174.1 (1.6) 36.0 Change in fair value included in earnings (1) — — (4.3) (0.4) (40.6) Ending balance $ 7.9 $ (7.9) $ 220.9 $ — $ 18.1 Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2020 Beginning balance $ 23.3 $ (22.0) $ — $ 2.1 $ — Purchases, issuances, sales and settlements Purchases — — 162.6 — — Issuances (1) — — — — 287.0 Deconsolidation of mortgage-backed securitization trusts (10.7) 9.5 — — — Sales — — (137.8) — — Settlements (2.9) 2.9 — — — Transfers: Loans held for sale, at fair value (1) — — — — (285.2) Receivables, net — — (1.0) — — Net addition (disposition/derecognition) (13.6) 12.4 23.8 — 1.8 Change in fair value included in earnings (1) — (0.1) 1.7 (0.1) 10.4 Transfers in and / or out of Level 3 — — 25.6 — 10.5 Ending balance $ 9.8 $ (9.8) $ 51.1 $ 2.0 $ 22.7 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $(18.8) million, $(4.6) million and $17.8 million for 2022, 2021 and 2020, respectively. See Note 16 — Derivative Financial Instruments and Hedging Activities. A reconciliation from the beginning balances to the ending balances of Loans Held for Investment and HMBS-related borrowings, MSRs and Pledged MSR liabilities that we measure at fair value on a recurring and non-recurring basis is disclosed in Note 5 – Reverse Mortgages, Note 7 — Mortgage Servicing and Note 8 — Other Financing Liabilities, at Fair Value, respectively. The methodologies that we use and key assumptions that we make to estimate the fair value of financial instruments and other assets and liabilities measured at fair value on a recurring or non-recurring basis and those disclosed, but not carried, at fair value are described below. Loans Held for Sale Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. Such loans are subject to changes in fair value due to fluctuations in interest rates from the closing or purchased date through the date of the sale or securitization of the loan into the secondary market. These loans are generally classified within Level 2 of the valuation hierarchy because the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conventional and government-insured mortgage loans are typically sold. We purchase certain loans from Ginnie Mae guaranteed securitizations in connection with loan modifications, strategic EBO and loan resolution activity as part of our contractual obligations as the servicer of the loans. Effective January 1, 2020, we elected to classify any repurchased loans as loans held for sale at fair value as we expect to redeliver (sell) the loans into new Ginnie Mae guaranteed securitizations (in the case of modified loans) or sell the loans to a private investor (in the case of EBO loans). Modified and EBO loans purchased before January 1, 2020 are classified as loans held for sale at the lower of cost or fair value. The fair value of these loans is estimated using both observable and unobservable inputs, including published forward Ginnie Mae prices or existing sale contracts, as well as estimated default, prepayment, and discount rates. The significant unobservable input in estimating fair value is the estimated default rate. Accordingly, these repurchased Ginnie Mae loans are classified as Level 3 within the valuation hierarchy. Loans repurchased in connection with loan resolution activities are classified as receivables. Because these loans are insured or guaranteed by the FHA or VA, the fair value of these loans represents the net recovery value taking into consideration the insured or guaranteed claim. When we enter into an agreement to sell a loan or pool of loans to an investor at a set price, we value the loan or loans at the commitment price, unless facts and circumstances exist that could impact deal economics, at which point we use judgment to determine appropriate adjustments to recorded fair value, if any. We determine the fair value of loans for which we have no agreement to sell on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Loans Held for Investment Loans Held for Investment - Reverse Mortgages We measure these loans at fair value based on the expected future cash flows discounted over the expected life of the loans at a rate commensurate with the risk of the estimated cash flows, including future draw commitments for HECM loans. Inputs of the discounted cash flows of these assets include future draws and tail securitization spreads, conditional prepayment rate (including voluntary and involuntary prepayments) and discount rate. We engage third-party valuation experts in the determination of fair value. While the models and related assumptions used by the valuation experts are proprietary to them, we understand the methodologies, the significant inputs and the assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We evaluate the reasonableness of our third-party experts’ assumptions using historical experience, or cash flow backtesting, adjusted for prevailing market conditions and benchmarks of assumptions and value estimates. The fair value is equal to the third-party valuation expert fair value mark. Reverse mortgage loans are classified as Level 3 within the valuation hierarchy. Significant unobservable assumptions include conditional prepayment rate and discount rate. The conditional prepayment rate assumption displayed in the table below is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates. December 31, Significant unobservable assumptions 2022 2021 Life in years Range 1.0 to 7.6 1.0 to 8.2 Weighted average 5.0 5.7 Conditional prepayment rate, including voluntary and involuntary prepayments Range 13.2% to 45.0% 11.2% to 36.6% Weighted average 18.0 % 16.0 % Discount rate 5.1 % 2.6 % Significant increases or decreases in any of these assumptions in isolation could result in a significantly lower or higher fair value, respectively. The effects of changes in the assumptions used to value the securitized loans held for investment, excluding future draw commitments, are partially offset by the effects of changes in the assumptions used to value the HMBS-related borrowings that are associated with these loans. Loans Held for Investment – Restricted for securitization investors We have elected to measure loans held by consolidated mortgage-backed securitization trusts at fair value. The loans are secured by first liens on single family residential properties. Fair value is based on proprietary cash flow modeling processes from a third-party broker/dealer and a third-party valuation expert. Significant assumptions used in the valuation include projected monthly payments, projected prepayments and defaults, property liquidation values and discount rates. MSRs We determine the fair value of MSRs primarily using discounted cash flow methodologies. The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We engage third-party valuation experts who generally utilize: (a) transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; and/or (b) industry-standard modeling, such as a discounted cash flow model and prepayment model, in arriving at their estimate of fair value. The prices provided by the valuation experts reflect their observations and assumptions related to market activity, incorporating available industry survey results and client feedback, and including risk premiums and liquidity adjustments. While the models and related assumptions used by the valuation experts are proprietary to them, we understand the methodologies and assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We believe that the procedures executed by the valuation experts, supported by our verification and analytical procedures, provide reasonable assurance that the prices used in our consolidated financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use. We evaluate the reasonableness of our third-party experts’ assumptions using historical experience adjusted for prevailing market conditions and benchmarks of assumptions and value estimates. Assumptions used in the valuation of MSRs include: • Mortgage prepayment speeds • Delinquency rates • Cost of servicing • Interest rate used for computing float earnings • Discount rate • Compensating interest expense • Interest rate used for computing the cost of financing servicing advances • Collection rate of other ancillary fees • Curtailment on advances MSRs are carried at fair value and classified within Level 3 of the valuation hierarchy. The fair value is equal to the fair value mark provided by the third-party valuation experts, without adjustment, except in the event we have a potential or completed sale, including transactions where we have executed letters of intent, in which case the fair value of the MSRs is recorded at the estimated sale price. A change in the valuation inputs or assumptions may result in a significantly higher or lower fair value measurement. Changes in market interest rates predominantly impact the fair value of Agency MSRs via prepayment speeds by altering the borrower refinance incentive and the non-Agency MSRs due to the impact on advance funding costs. The significant unobservable assumptions used in the valuation of these MSRs include prepayment speeds, delinquency rates, cost to service and discount rates. December 31, Significant unobservable assumptions 2022 2021 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 6.9 % 7.9 % 8.5 % 12.1 % Weighted average lifetime delinquency rate 1.4 % 10.1 % 1.2 % 11.9 % Weighted average discount rate 9.6 % 10.6 % 8.5 % 11.2 % Weighted average cost to service (in dollars) $ 72 $ 201 $ 71 $ 205 Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates, an improving housing market or expanded product availability (as prepayments increase) and increase in periods of rising interest rates, a deteriorating housing market or reduced product availability (as prepayments decrease). The following table summarizes the estimated change in the value of the MSRs as of December 31, 2022 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Change in weighted average prepayment speeds (in percentage points) 0.8 1.6 Change in fair value due to change in weighted average prepayment speeds $ (61.7) $ (120.8) Change in weighted average discount rate (in percentage points) 1.0 1.9 Change in fair value due to change weighted average discount rate $ (76.1) $ (146.2) Advances We value advances at their net realizable value, which generally approximates fair value. Servicing advances have no stated maturity and do not bear interest. Principal and interest advances are generally realized within a relatively short period of time. The timing of recovery of taxes, insurance and other corporate advances depends on the underlying loan attributes, performance, and in many cases, foreclosure or liquidation timeline. The fair value adjustment to servicing advances associated with the estimated time to recover such advances is separately measured and reported as a component of the fair value of the associated MSR, consistent with actual market transactions. Refer to MSRs above for a description of the valuation methodology and assumptions related to the cost of financing servicing advances and discount rate, among other factors. Receivables The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization. Advance Match Funded Liabilities For advance match funded liabilities that bear interest at a rate that is adjusted regularly based on a market index, the carrying value approximates fair value. For advance match funded liabilities that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We assume the notes are refinanced at the end of their revolving periods, consistent with how we manage our advance facilities. Financing Liabilities HMBS-Related Borrowings HMBS-related borrowings are carried at fair value and classified as Level 3 within the valuation hierarchy. These borrowings are not actively traded, and therefore, quoted market prices are not available. We determine fair value using a discounted cash flow approach, by discounting the projected recovery of principal and interest over the estimated life of the borrowing at a market rate commensurate with the risk of the estimated cash flows. We engage third-party valuation experts to support our valuation and provide observations and assumptions related to market activities. The fair value is equal to the fair value mark provided by a third-party valuation expert. We evaluate the reasonableness of our fair value estimate and assumptions using historical experience, or cash flow backtesting, adjusted for prevailing market conditions and benchmarks of assumptions and value estimates. Significant unobservable assumptions include yield spread and discount rate. The yield spread and discount rate assumption for these liabilities are primarily based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates. December 31, Significant unobservable assumptions 2022 2021 Life in years Range 1.0 to 7.6 1.0 to 8.2 Weighted average 5.0 5.7 Conditional prepayment rate Range 13.2% to 45.0% 11.2% to 36.6% Weighted average 18.0 % 16.0 % Discount rate 5.0 % 2.5 % Significant increases or decreases in any of these assumptions in isolation could result in a significantly higher or lower fair value, respectively. The effects of changes in the assumptions used to value the HMBS-related borrowings are partially offset by the effects of changes in the assumptions used to value the associated pledged loans held for investment, excluding future draw commitments. Pledged MSR Liabilities Pledged MSR liabilities are carried at fair value and classified as Level 3 within the valuation hierarchy. We recognize the proceeds received in connection with MSRs transferred or sold in transactions which do not qualify for sale accounting treatment as a secured financing that we account for at fair value. We determine the fair value of the pledged MSR liability following a similar approach as for the associated transferred MSRs. Fair value of the pledged MSR liability in connection with the MAV MSR transactions is determined using the fair value mark provided by third-party valuation expert, consistent with the associated MSR, using the same methodology and assumptions, while considering cash flows contractually retained by PMC. Fair value for the portion of the borrowing attributable to the MSRs underlying the Rights to MSRs in connection with Rithm transactions is determined using the fair value mark provided by the third-party valuation experts. December 31, Significant unobservable assumptions 2022 2021 Weighted average prepayment speed 7.6 % 10.9 % Weighted average delinquency rate 7.1 % 8.8 % Weighted average discount rate 10.2 % 10.5 % Weighted average cost to service (in dollars) $ 174 $ 182 Significant increases or decreases in these assumptions in isolation would result in a significantly higher or lower fair value. ESS Financing Liability The Excess Servicing Spread (ESS) financing liability consists of the obligation to remit to a third party a specified percentage of future servicing fee collections on reference pools of mortgage loans, which we are entitled to as owner of the related MSRs. We have elected to carry the ESS financing liability (in connection with all issuances under the ESS agreement entered in 2022) at fair value and have classified it as Level 3 within the valuation hierarchy. The fair value represents the net present value of the expected servicing spread cash flows, consistent with the valuation model and behavioral projections of the underlying MSR, as applicable. The fair value of the ESS financing liability is determined using a third-party valuation expert. The significant unobservable assumptions used in the valuation of the ESS financing liability include prepayment speeds, delinquency rates, and discount rates. The discount rate is initially determined based on the expected cash flows and the proceeds from each issuance, and is subsequently updated, at each issuance level, based on the change in discount rate of the underlying MSR, as provided by third-party valuation expert. At December 31, 2022, the weighted average discount rate of the ESS financing liability was 7.6%. Refer to MSRs above for description of other significant unobservable assumptions. Also see Note 8 — Other Financing Liabilities, at Fair Value. Financing Liability – Owed to Securitization Investors Consists of securitization debt certificates due to third parties that represent beneficial ownership interests in mortgage-backed securitization trusts that we include in our consolidated financial statements. We determine fair value using the measurement alternative to ASC Topic 820: Fair Value Measurement. In accordance with the measurement alternative, the fair value of the consolidated securitization debt certificates is measured as the fair value of the loans held by the trust less the fair value of the beneficial interests held by us in the form of residual securities. Mortgage Loan Warehouse Facilities Our mortgage loan warehouse facilities bear interest at a rate that is adjusted regularly based on a market index. The carrying value of the outstanding borrowings under these revolving facilities approximates fair value. MSR Financing Facilities Our MSR financing facilities bear interest at a rate that is adjusted regularly based on a market index. The carrying value of the outstanding borrowings under these facilities approximates fair value. In 2014, we issued Ocwen Asset Servicing Income Series (OASIS), Series 2014-1 Notes secured by Ocwen-owned MSRs relating to Freddie Mac mortgages. In 2019, we issued Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 notes secured by certain of PMC’s private label MSRs. In 2022, we refinanced these notes into a new Series 2022-PLS1 notes. We determine the fair value of these notes based on bid prices provided by third parties involved in the issuance and placement of the notes. Senior Notes We base the fair value on quoted prices in a market with available limited trading activity, or on valuation data obtained from a pricing service in the absence of trading data. Derivative Financial Instruments Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant (locked pipeline), whereby the interest rate is set prior to funding. Fair value amounts of IRLCs are adjusted for expected “fallout” (locked pipeline loans not expected to close) using models that consider cumulative historical fallout rates and other factors. IRLCs are classified as Level 3 assets as fallout rates were determined to be significant unobservable assumptions. We use derivative instruments, including forward trades of MBS or Agency “to be announced” securities (TBAs) and exchange-traded interest rate swap futures, as economic hedging instruments of the fair value of our loans held for sale and MSR portfolio. Forward contracts, TBAs and interest rate swap futures are actively traded in the market and we obtain unadjusted market quotes for these derivatives; thus, they are classified within Level 1 of the valuation hierarchy. |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Sale | Note 4 — Loans Held for Sale Loans Held for Sale - Fair Value Years Ended December 31, 2022 2021 2020 Beginning balance $ 917.5 $ 366.4 $ 208.8 Originations and purchases 17,582.0 19,972.4 7,552.0 Proceeds from sales (17,477.2) (19,279.1) (7,344.2) Principal collections (106.9) (58.6) (26.0) Transfers from (to): Loans held for investment, at fair value 8.0 4.3 3.1 Receivables (13.2) (33.6) (85.0) REO (Other assets) (3.1) (8.4) (3.7) Capitalization of advances on Ginnie Mae modifications 18.1 24.8 12.8 Realized gain (loss) on sale of loans (290.0) (69.9) 50.2 Fair value gain (loss) on loans held for sale (9.0) (0.9) 1.1 Other (8.4) 0.5 (2.8) Ending balance (1) $ 617.8 $ 917.5 $ 366.4 UPB $ 623.7 $ 910.4 $ 364.0 Premium (discount) 7.4 11.5 9.1 Fair value adjustment (13.3) (4.4) (6.7) Total $ 617.8 $ 917.5 $ 366.4 (1) At December 31, 2022, 2021 and 2020, the balances include $32.1 million, $220.9 million and $51.1 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. We may repurchase loans that have been modified, to facilitate loss reduction strategies, or as otherwise obligated as a Ginnie Mae servicer. Repurchased loans may be modified or otherwise remediated through loss mitigation activities, may be sold to a third party, or are reclassified to Receivables. Loans Held for Sale - Lower of Cost or Fair Value Years Ended December 31, 2022 2021 2020 Carrying amount before valuation allowance (1) 8.8 15.4 27.7 Valuation allowance (4.0) (4.4) (6.2) Ending balance, net $ 4.9 $ 11.0 $ 21.5 (1) At December 31, 2022, 2021 and 2020, the balances include $1.0 million, $2.7 million and $12.5 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. Years Ended December 31, Gains on Loans Held for Sale, Net 2022 2021 2020 Gain (loss) on sales of loans, net MSRs retained on transfers of forward mortgage loans $ 234.7 $ 222.7 $ 68.7 Gain (loss) on sale of forward mortgage loans (1)(2) (278.0) (87.8) 45.5 Gain on sale of repurchased Ginnie Mae loans (2)(3) (10.1) 18.4 15.9 (53.4) 153.3 130.1 Change in fair value of IRLCs (17.4) (6.2) 17.5 Change in fair value of loans held for sale (5.9) 1.9 2.3 Gain (loss) on economic hedge instruments (4) 101.7 1.5 (10.1) Other (3.0) (4.7) (2.6) $ 22.0 $ 145.8 $ 137.2 (1) Includes $27.1 million gain in 2021 related to loans purchased through the exercise of our servicer call rights with respect to certain Non-Agency trusts and sold, servicing released. (2) Realized gain (loss) on sale of loans, excluding retained MSR. (3) Includes an $8.8 million loss in 2022 on certain delinquent and aged loans repurchased (net of the associated Ginnie Mae MSR fair value adjustment) in connection with the Ginnie Mae EBO program with an aggregated UPB of $299.7 million, net of the associated MSR fair value adjustment. |
Reverse Mortgages
Reverse Mortgages | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Reverse Mortgages | Note 5 – Reverse Mortgages Years Ended December 31, 2022 2021 2020 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Beginning balance $ 7,199.8 $ (6,885.0) $ 6,997.1 $ (6,772.7) $ 6,269.6 $ (6,063.4) Cumulative effect of fair value election (1) — — — — 47.0 — Originations 1,658.1 — 1,763.4 — 1,203.6 — Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (1,780.4) — (1,674.9) — (1,232.6) Additional proceeds from securitization of HECM loans and tails — (25.2) — (44.6) — (40.9) Acquisition (2) 211.3 (209.1) — — — — Repayments (principal payments received) (1,579.9) 1,568.4 (1,626.4) 1,614.3 (944.7) 935.8 Transfers: Loans held for sale, at fair value (8.0) — (3.4) — (3.1) — Receivables, net 2.1 — (0.3) — (0.2) — REO (Other assets) (0.4) — (0.3) — (0.5) — Fair value gains (losses) recognized in earnings (4) 21.1 4.5 69.7 (7.1) 425.4 (371.5) Ending Balance $ 7,504.1 $ (7,326.8) $ 7,199.8 $ (6,885.0) $ 6,997.1 $ (6,772.7) Securitized loans (pledged to HMBS-Related Borrowings) $ 7,392.6 $ (7,326.8) $ 6,979.1 $ (6,885.0) $ 6,872.2 $ (6,772.7) Unsecuritized loans 111.5 220.7 124.9 Total $ 7,504.1 $ 7,199.8 $ 6,997.1 (1) In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020. (2) During 2022, we purchased a reverse mortgage servicing portfolio of HECM loans securitized in Ginnie Mae pools. As the Ginnie Mae HMBS program does not qualify for sale accounting, the transaction conveyed the HECM loans and associated HMBS-related borrowings to us. We have accounted for this transaction as a secured financing, as a purchase of loans held for investment and assumption of an HMBS securitization liability for the obligation to Ginnie Mae. (3) Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is the pass-through rate of the loans less applicable margin. See Note 2 — Securitizations and Variable Interest Entities. (4) See further breakdown in the table below. Gain on Reverse Loans Held for Investment and HMBS-related Borrowings, Net Years Ended December 31, 2022 2021 2020 Gain on new originations (1) $ 50.7 $ 65.0 $ 46.3 Gain on tail securitization (2) 11.2 21.6 24.4 Net interest income (servicing fee) (3) 21.9 19.9 19.2 Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net (58.2) (43.8) (36.0) Fair value gains (losses) included in earnings (2)(4) 25.6 62.7 53.9 Loan fees and other 10.5 17.0 6.8 $ 36.1 $ 79.7 $ 60.7 (1) Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date. (2) Includes the cash realized gains upon securitization of tails (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above) (3) Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above). The net interest income includes the servicing fee Ocwen is contractually entitled to on securitized loans. (4) See breakdown between Loans held for investment and HMBS-related borrowings in the table above. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2022 | |
Advances [Abstract] | |
Advances | Note 6 — Advances December 31, 2022 2021 Principal and interest $ 215.5 $ 228.0 Taxes and insurance 367.5 381.0 Foreclosures, bankruptcy, REO and other 142.1 170.4 725.1 779.5 Allowance for losses (6.2) (7.0) Advances, net $ 718.9 $ 772.4 The following table summarizes the activity in net advances: Years Ended December 31, 2022 2021 2020 Beginning balance - before Allowance for Losses $ 779.5 $ 834.5 $ 1,066.4 New advances 784.8 831.2 890.4 Transfer from (to) Receivables 6.5 (3.7) (2.5) Sales of advances (2.9) (1.3) (0.8) Asset acquisition — 6.9 — Collections of advances and other (842.8) (888.2) (1,119.0) Ending balance - before Allowance for Losses 725.1 779.5 834.5 Beginning balance - Allowance for Losses $ (7.0) $ (6.3) $ (9.9) Provision expense (7.2) (8.1) (7.8) Net charge-offs and other 8.0 7.4 11.4 Ending balance - Allowance for Losses (6.2) (7.0) (6.3) Ending balance, net $ 718.9 $ 772.4 $ 828.2 |
Mortgage Servicing
Mortgage Servicing | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing | Note 7 — Mortgage Servicing During each period, we remeasure our MSRs at fair value, which contemplates the receipt or nonreceipt of the servicing income for that period. The servicing income, including expectations of future servicing cash flows, are inputs for the measurement of the MSR fair value. The net result on the statement of operations is that we record the contractual cash received in each period as revenue within Servicing and subservicing fees, partially offset by the remeasurement of the MSR fair value within MSR valuation adjustments, net. Mortgage Servicing Rights – Fair Value Measurement Method Years Ended December 31, 2022 2021 2020 Agency Non-Agency Total Agency Non-Agency Total Agency Non-Agency Total Beginning balance $ 1,571.8 $ 678.3 $ 2,250.1 $ 578.9 $ 715.9 $ 1,294.8 $ 714.0 $ 772.4 $ 1,486.4 Sales (154.4) — (154.4) — — — — (0.1) (0.1) Additions: Recognized on the sale of residential mortgage loans 234.7 — 234.7 222.7 — 222.7 68.7 — 68.7 Purchase of MSRs 181.6 — 181.6 844.1 — 844.1 285.1 — 285.1 Servicing transfers and adjustments (1) (24.3) (0.9) (25.3) 0.1 (10.9) (10.8) (266.2) 0.4 (265.8) Net additions (sales) 237.6 (0.9) 236.6 1,067.0 (10.9) 1,056.0 87.6 0.3 87.9 Changes in fair value recognized in earnings: Changes in valuation inputs or assumptions 307.8 146.2 454.0 62.4 87.1 149.5 (145.3) 37.3 (108.1) Realization of cash flows (185.4) (90.1) (275.5) (136.5) (113.7) (250.2) (77.4) (94.0) (171.4) Fair value gains (losses) recognized in earnings 122.4 56.1 178.5 (74.1) (26.7) (100.7) (222.7) (56.8) (279.5) Ending balance $ 1,931.8 $ 733.5 $ 2,665.2 $ 1,571.8 $ 678.3 $ 2,250.1 $ 578.9 $ 715.9 $ 1,294.8 (1) Servicing transfers and adjustments for 2022 include a $39.0 million derecognition of Agency MSRs previously sold to MAV in a transaction which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $2.9 billion from our balance sheet upon the sale of the MSRs by MAV to a third party. Servicing transfers and adjustments for 2020 include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the PMC subservicing agreement by Rithm. See Note 8 — Other Financing Liabilities, at Fair Value for further information. December 31, 2022 December 31, 2021 Delinquent loans Agency Non - Agency Total Agency Non - Agency Total 30 days 1.7 % 8.5 % 4.8 % 1.4 % 7.2 % 4.1 % 60 days 0.5 3.3 1.8 0.4 2.8 1.6 90 days or more 1.1 8.6 4.5 1.9 8.0 4.8 Total 30-60-90 days or more 3.3 % 20.4 % 11.1 % 3.7 % 18.0 % 10.5 % December 31, 2022 December 31, 2021 Fair Value UPB Fair Value UPB Owned MSRs $ 1,710.6 $ 126.2 $ 1,422.5 $ 127.9 Rithm transferred MSRs (1) (2) 601.2 47.3 558.9 53.7 MAV transferred MSRs (1) 353.4 26.1 268.7 24.0 Total MSRs $ 2,665.2 $ 199.6 $ 2,250.1 $ 205.6 (1) MSRs subject to sale agreements with Rithm and MAV that do not meet sale accounting criteria. During 2022 and 2021, we transferred MSRs with a UPB of $7.4 billion and $24.9 billion to MAV. See Note 8 — Other Financing Liabilities, at Fair Value. (2) At December 31, 2022, the UPB of MSRs transferred to Rithm for which title is retained by Ocwen was $10.8 billion and the UPB of MSRs transferred to Rithm for which title has passed was $36.4 billion. We purchased MSRs with a UPB of $15.7 billion, $75.6 billion and $31.7 billion during 2022, 2021 and 2020, respectively. Purchases during 2021 include a bulk MSR acquisition of performing GSE loans from an unrelated third-party effective June 1, 2021, with a UPB and fair value of $46.8 billion and $575.3 million, respectively. We sold MSRs with a UPB of $11.7 billion, $32.0 million and $80.0 million during 2022, 2021 and 2020, respectively, to unrelated third parties, mostly to Freddie Mac under the Voluntary Partial Cancellation (VPC) program for delinquent loans. The geographic concentration of the UPB of residential loans and real estate we serviced and subserviced at December 31, 2022 was as follows: (Dollars in billions) (Count in thousands) Amount Count California $ 68.9 224.8 Texas 20.8 117.6 Florida 19.3 109.1 New York 19.2 69.9 New Jersey 14.1 56.1 Other 147.5 801.3 $ 289.8 1,378.8 Years Ended December 31, Servicing Revenue 2022 2021 2020 Loan servicing and subservicing fees Servicing $ 337.8 $ 339.2 $ 216.3 Subservicing 72.9 21.1 28.9 MAV (1) 72.8 15.7 — Rithm (1) 255.0 304.2 383.7 Total loan servicing and subservicing fees 738.5 680.3 628.8 Ancillary income Late charges 41.0 40.9 47.7 Custodial accounts (float earnings) 26.2 4.7 9.9 Reverse subservicing ancillary income 20.4 1.4 — Loan collection fees 11.1 11.7 12.9 Recording fees 8.5 16.0 14.3 Boarding and deboarding fees 5.8 10.5 11.1 GSE forbearance fees 0.8 1.5 1.2 Other 10.3 14.8 11.3 Total ancillary income 124.1 101.6 108.5 $ 862.6 $ 781.9 $ 737.3 (1) Includes servicing fees related to transferred MSRs and subservicing fees. See Note 8 — Other Financing Liabilities, at Fair Value. Float balances on which we earn interest, referred to as float earnings (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers on behalf of investors) are held in escrow by unaffiliated |
MSR Transfers Not Qualifying fo
MSR Transfers Not Qualifying for Sale Accounting | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
MSR Transfers Not Qualifying for Sale Accounting | Note 8 — Other Financing Liabilities, at Fair Value The following tables presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 13 — Borrowings for ESS financing liability carried at amortized cost). Outstanding Balance at December 31, Borrowing Type Collateral Maturity 2022 2021 MSR transfers not qualifying for sale accounting (1): Original Rights to MSRs Agreements, at fair value - Rithm MSRs (1) $ 601.2 $ 558.9 Pledged MSR liability, at fair value - MAV MSRs (1) 329.8 238.1 Pledged MSR liability, at fair value - Others MSRs (1) 0.7 — 931.7 797.1 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment October 2033 6.7 7.9 ESS financing liability, at fair value (3) MSRs (3) (3) 199.0 — Total Other financing liabilities, at fair value $ 1,137.4 $ 805.0 (1) MSRs transferred or sold in transactions which do not qualify for sale accounting treatment are accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. Fair value gains and losses of the Pledged MSR liability are recognized in MSR valuation adjustments, net in the consolidated statements of operations - See Note 7 — Mortgage Servicing. (2) Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that are consolidated. (3) Consists of the obligation to remit to a third party a specified percentage of future servicing fee collections (servicing spread) on reference pools of MSRs, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustment, net. The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with MAV, Rithm and others that do not qualify for sale accounting. Year Ended December 31, 2022 Pledged MSR Liability Rithm and Others MAV (1) Total Beginning balance $ 558.9 $ 238.1 $ 797.1 Additions 0.6 85.6 86.3 Changes in fair value due to input and assumptions 113.8 78.3 192.1 Runoff and settlement (70.9) (33.2) (104.1) Fair value (gain) loss (4) 43.0 45.1 88.0 Derecognition of financing liability (2) — (39.0) (39.0) Calls (3) (0.7) — (0.7) Ending balance $ 601.9 $ 329.8 $ 931.7 Year Ended December 31, 2021 Pledged MSR Liability Rithm Original Rights to MSRs Agreements MAV (1) Total Beginning balance $ 567.0 $ — $ 567.0 Additions — 250.0 250.0 Changes in fair value due to inputs and assumptions 82.3 (4.3) 77.9 Runoff and settlement (81.8) (7.5) (89.4) Fair value (gain) loss 0.5 (11.9) (11.4) Calls (3) (8.5) — (8.5) Ending balance $ 558.9 $ 238.1 $ 797.1 Year Ended December 31, 2020 Rithm Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 603.0 $ 35.4 $ 312.1 $ 950.6 Sales — — (0.2) (0.2) Changes in fair value due to inputs and assumptions 36.1 0.9 (40.7) (3.8) Runoff and settlement (70.4) (35.1) (7.5) (113.0) Fair value (gain) loss (34.3) (34.2) (48.2) (116.8) Derecognition of financing liability due to termination of PMC Agreement (5) — — (263.7) (263.7) Calls (3) (1.8) (1.2) — (3.0) Ending balance $ 567.0 $ — $ — $ 567.0 (1) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is retained by PMC (shared between PMC and MAV) and other contractual cash flows under the terms of the subservicing agreement. (2) Derecognition of a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to a third party with a UPB of $2.9 billion. (3) Represents the carrying value of MSRs in connection with call rights exercised by Rithm, for MSRs transferred to Rithm under the 2017 Agreements and New RMSR Agreements, or by Ocwen at Rithm’s direction, for MSRs underlying the Original Rights to MSRs Agreements (as defined below). Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization. (4) The changes in fair value of the MAV Pledged MSR Liability include a $14.1 million loss associated with the amendment to the MAV Subservicing Agreement in March 2022, resulting in lower contractually ancillary income retained by PMC. See Note 11 — Investment in Equity Method Investee and Related Party Transactions. (5) On February 20, 2020, we received a notice of termination from Rithm with respect to a portfolio (referred as the PMC MSR Agreements). The MSRs and the Rights to MSRs associated with these loans, representing $34.2 billion of UPB, were derecognized from our balance sheet without any gain or loss on derecognition. The following tables present the Pledged MSR liability expense recorded in connection with the MSR sale agreements with MAV, Rithm and others that do not qualify for sale accounting and the ESS financing liabilities. Year Ended December 31, 2022 Rithm and Others MAV Total Servicing fees collected on behalf of third party $ 255.0 $ 67.5 $ 322.5 Less: Subservicing fee retained (74.0) (8.8) (82.8) Ancillary fee/income and other settlement (incl. expense reimbursement) 5.7 0.4 6.1 Transferred MSR net servicing fee remittance $ 186.7 $ 59.1 245.9 ESS servicing spread remittance 9.1 Pledged MSR liability expense $ 255.0 Year Ended December 31, 2021 Year Ended December 31, 2020 Rithm MAV Total Servicing fees collected on behalf of third party $ 304.2 14.2 $ 318.4 $ 383.7 Less: Subservicing fee retained (88.4) (2.0) (90.4) (104.8) Ancillary and other settlement (1) (11.1) 4.4 (6.7) (9.7) Pledged MSR liability expense $ 204.7 $ 16.6 $ 221.3 $ 269.1 (1) Includes $4.0 million of early payment protection associated with the sale of MSR portfolios by PMC to MAV. MAV Transactions In 2021 and 2022, PMC entered into agreements to sell MSR portfolios to MAV, on a bulk and flow basis. PMC has been retained as subservicer for the sold portfolio in accordance with the terms of the subservicing agreement entered into on May 3, 2021. The transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreement. See Note 11 — Investment in Equity Method Investee and Related Party Transactions. Rithm Transactions Starting in 2012, Ocwen and PMC entered into agreements to sell MSRs or Rights to MSRs and the related servicing advances to Rithm (formerly NRZ), and in all cases have been retained by Rithm as subservicer. Due to the length of the non-cancellable term of the subservicing agreements, the transactions do not qualify for sale accounting treatment. In the case of Rights to MSRs transactions with Rithm, legal title was retained by Ocwen, causing the transactions to be accounted for as secured financings. Prior to the transfer of legal title under the Master Servicing Rights Purchase Agreement dated as of October 1, 2012, as amended, and certain Sale Supplements, as amended (collectively, the Original Rights to MSRs Agreements), Ocwen agreed to service the mortgage loans underlying the MSRs on the economic terms set forth in the Original Rights to MSRs Agreements. After the transfer of legal title as contemplated under the Original Rights to MSRs Agreements, Ocwen was to service the mortgage loans underlying the MSRs as subservicer on substantially the same economic terms. On July 23, 2017 and January 18, 2018, we entered into a series of agreements with Rithm that collectively modify the arrangements set forth in the Original Rights to MSRs Agreements. The July 23, 2017 agreements, as amended, include a Master Agreement, a Transfer Agreement and the Subservicing Agreement between Ocwen and New Residential Mortgage LLC (NRM), a subsidiary of Rithm, relating to non-agency loans (the NRM Subservicing Agreement) (collectively, the 2017 Agreements) pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to Rithm of Ocwen’s legal title to the remaining MSRs that were subject to the Original Rights to MSRs Agreements and under which Ocwen would subservice mortgage loans underlying the MSRs for an initial term ending in July 2022 (the Initial Term). On January 18, 2018, the parties entered into new agreements (including a new RMSR agreement, with an attached Servicing Addendum) regarding the Rights to MSRs related to MSRs that remained subject to the Original Rights to MSRs Agreements as of January 1, 2018 and amended the Transfer Agreement (collectively, New RMSR Agreements) to accelerate the implementation of certain parts of our arrangements. Under the New RMSR Agreements, following receipt of the required consents and transfer of the MSRs, Ocwen subservices the mortgage loans underlying the transferred MSRs pursuant to the 2017 Agreements and the August 2018 subservicing agreement with NewRez LLC dba Shellpoint Mortgage Servicing (Shellpoint) described below. On August 17, 2018, Ocwen and Rithm entered into certain amendments (i) to the New RMSR Agreements to include Shellpoint, a subsidiary of Rithm, as a party to which legal title to the MSRs could be transferred after related consents are received, (ii) to add a Subservicing Agreement between Ocwen and Shellpoint relating to non-agency loans (the Shellpoint Subservicing Agreement), (iii) to add an Agency Subservicing Agreement between Ocwen and NRM relating to agency loans (the Agency Subservicing Agreement), and (iv) to conform the New RMSR Agreements and the NRM Subservicing Agreement to certain terms of the Shellpoint Subservicing Agreement and the Agency Subservicing Agreement. On May 2, 2022, Ocwen entered into amendments to the following three agreements with certain subsidiaries of Rithm: (a) the Shellpoint Subservicing Agreement; (b) the NRM Subservicing Agreement; and (c) the New RMSR Agreement, including the attached Servicing Addendum, dated as of January 18, 2018 with NRM, HLLS Holdings, LLC and HLSS MSR – EBO Acquisition LLC (the New RMSR Agreement or the Servicing Addendum). The amendments modified the terms of the Subservicing Agreements and the Servicing Addendum as follows: (i) the term of each Agreement was extended to December 31, 2023 (Second Term), with the Initial Term ending on May 1, 2022 and the Second Term beginning on May 2, 2022; (ii) subsequent term extensions will be automatic one-year renewals, unless Ocwen provides six months’ advance notice of termination (by July 1), or the Rithm parties provide three months’ advance notice of termination (by October 1) at the end of the then-current term as described below; and (iii) the parties will share a portion of some ancillary revenues. The amendments on May 2, 2022 do not result in the prior transfers of MSR from Ocwen to Rithm qualifying for sale accounting prior to December 31, 2023, absent any subsequent amendment. Pursuant to the amendments noted above, the Subservicing Agreements and Servicing Addendum may be terminated by Ocwen or Rithm without cause (in effect a non-renewal) by providing notice in advance of the end of the Second Term or the end of each one-year extension of the applicable terms after the Second Term. Ocwen must provide a notice of termination by July 1, 2023, with respect to the Second Term or by July 1 of each one-year extended term after the Second Term and Rithm must provide notice by October 1, 2023 with respect to the Second Term or by October 1 of each one-year extended term after the Second Term. As of December 31, 2022, the UPB of MSRs subject to the Servicing Agreements and the New RMSR Agreements is $49.1 billion, including $10.8 billion for which title has not transferred to Rithm and $1.9 billion for which Ocwen is subservicer and Rithm servicer of record. As the third-party consents required for title to the MSRs to transfer were not obtained by May 31, 2019, the New RMSR Agreements set forth a process under which Rithm’s $10.8 billion Rights to MSRs may (i) be acquired by Ocwen at a price determined in accordance with the terms of the New RMSR Agreements, at the option of Ocwen, or (ii) be sold, together with Ocwen’s title to those MSRs, to a third party in accordance with the terms of the New RMSR Agreements, subject to an additional Ocwen option to acquire at a price based on the winning third-party bid rather than selling to the third party. If the Rights to MSRs are not transferred pursuant to these alternatives, then the Rights to MSRs will remain subject to the New RMSR Agreements. As stated above, Rithm has the right to terminate the $10.8 billion New RMSR Agreements for convenience, in whole but not in part, subject to approximately three months’ advance notice of termination at the end of the Second Term or the end of the then-applicable annual extended term. If Rithm exercises this termination right, Rithm has the option of seeking (i) the transfer of the MSRs through a sale to a third party of its Rights to MSRs (together with a transfer of Ocwen’s title to those MSRs) or (ii) a substitute RMSR arrangement that substantially replicates the Rights to MSRs structure (a Substitute RMSR Arrangement) under which we would transfer title to the MSRs to a successor servicer and Rithm would continue to own the economic rights and obligations related to the MSRs. In the case of option (i), we have a purchase option as specified in the New RMSR Agreements. If Rithm is not able to sell the Rights to MSRs or establish a Substitute RMSR Arrangement with another servicer, Rithm has the right to revoke its termination notice and re-instate the Servicing Addendum or to establish a subservicing arrangement whereby the MSRs remaining subject to the New RMSR Agreements would be transferred to up to three subservicers who would subservice under Ocwen’s oversight. If such a subservicing arrangement were established, |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables | Note 9 — Receivables December 31, 2022 2021 Servicing-related receivables: Government-insured loan claims - Forward $ 65.0 $ 90.6 Government-insured loan claims - Reverse 73.8 39.9 Due from custodial accounts 16.3 7.8 Servicing fees 6.4 6.7 Reimbursable expenses 5.3 6.1 Subservicing fees and reimbursable expenses - Due from Rithm 3.0 3.8 Receivable from sale of MSRs (holdback) 1.5 — Subservicing fees, reimbursable expenses and other - Due from MAV 1.0 4.9 Other 3.2 1.2 175.5 160.9 Income taxes receivable (1) 34.4 56.8 Due from MAV 0.6 1.0 Other receivables 4.6 3.8 215.1 222.5 Allowance for losses (34.3) (41.7) $ 180.8 $ 180.7 (1) Includes $32.5 million at December 31, 2022 from the USVI Bureau of Internal Revenue (BIR) for a refund of income taxes paid in prior years. In December 2022, we executed an agreement with the BIR for payment of the income tax refunds, plus accrued interest, over a two-year period ending December 31, 2024 . At December 31, 2022 and 2021, the allowance for losses primarily related to receivables of our Servicing business. The allowance for losses related to FHA-, VA- or USDA-insured loans repurchased from Ginnie Mae guaranteed securitizations (government-insured claims) was $33.8 million and $41.5 million at December 31, 2022 and 2021, respectively. Allowance for Losses - Government-Insured Loan Claims Years Ended December 31, 2022 2021 2020 Beginning balance $ 41.5 $ 38.3 $ 56.9 Provision 12.5 14.4 18.1 Charge-offs and other, net (20.2) (11.3) (36.7) Ending balance $ 33.8 $ 41.5 $ 38.3 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 10 — Premises and Equipment December 31, 2022 2021 Computer hardware $ 25.6 $ 25.5 Operating lease ROU assets 21.0 22.9 Computer software 15.7 17.0 Leasehold improvements 5.3 13.8 Furniture and fixtures, office equipment and other 3.3 4.7 70.9 83.8 Less accumulated depreciation and amortization (50.7) (70.2) $ 20.2 $ 13.7 |
Investment in Equity Method Inv
Investment in Equity Method Investee | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Method Investee | Note 11 — Investment in Equity Method Investee and Related Party Transactions Investment in MAV Canopy. On December 21, 2020, Ocwen entered into a transaction agreement (the Transaction Agreement) with Oaktree Capital Management L.P. and certain affiliates (collectively Oaktree) to form a strategic relationship to invest in MSRs exclusively subserviced by PMC. The parties initially agreed to invest their pro rata portions of up to an aggregate of $250.0 million in an intermediate holding company, MAV Canopy, held 15% by Ocwen and 85% by Oaktree. On May 3, 2021, pursuant to the Transaction Agreement, Ocwen contributed 100% of its equity interest in MAV, which had total member’s equity and cash balances of approximately $5.0 million at the time of its contribution, to MAV Canopy. In exchange for its contribution, Ocwen received 15% equity interest of MAV Canopy plus $4.4 million cash consideration from MAV Canopy that was representative of the remaining 85% of MAV. MAV is a licensed mortgage servicing company approved to purchase GSE MSRs. PMC and MAV entered into a number of definitive agreements which govern the terms of their business relationship, summarized below. On November 2, 2022, Ocwen and Oaktree entered into an agreement modifying certain terms relating to the capitalization, management and operations of MAV Canopy. Ocwen and Oaktree agreed to increase the aggregate capital contributions to MAV Canopy by up to $250.0 million through May 2, 2024 (in addition to the then contributed capital), subject to extension. Ocwen may elect to contribute its 15% pro rata share of the additional capital commitment. To the extent Ocwen does not contribute its pro rata share of the additional capital commitment, the ownership percentages held by Ocwen and Oaktree will be adjusted based on the parties’ current percentage interests, capital contributions and book value. We account for our 15% investment in MAV Canopy under the equity method. Under the Amended & Restated Limited Liability Company Agreement with MAV Canopy, Ocwen is entitled to receive its 15% percentage interest share of MAV Canopy’s earnings, subject to certain adjustments. In addition, upon MAV Canopy liquidation or upon determination of the MAV Canopy Board of Directors to make advance distributions, Ocwen is entitled to receive a specified portion of the distribution amount available (Promote Distribution), after satisfaction of required distribution thresholds, including a specified internal rate of return threshold on Oaktree member’s gross adjusted capital contributions. We determined that the Promote Distribution represents an incentive fee under our various service agreements with MAV with a variable consideration and is recognized in earnings when it is probable that a significant reversal will not occur. As of December 31, 2022, Ocwen has not recognized any such Promote Distribution income. Subservicing Agreement. Effective May 3, 2021, PMC entered into a subservicing agreement with MAV for exclusive rights to service the mortgage loans underlying MSRs owned by MAV in exchange for a per-loan subservicing fee and certain other ancillary fees. The subservicing agreement will continue until terminated by mutual agreement of the parties or for cause, as defined. If either party terminates the agreement for cause, the other party is required to pay certain fees and costs. MAV is permitted to sell the underlying MSR without Ocwen’s consent after May 3, 2024. As of December 31, 2022, PMC subserviced a total $48.2 billion UPB on behalf of MAV, of which $26.1 billion MSR remains reported on the consolidated balance sheet of PMC - see below for information on MSR sales by PMC to MAV that do not achieve sale accounting. Effective March 1, 2022, PMC and MAV amended certain provisions of the subservicing agreement to adjust down the ancillary fee retained by PMC to enhance the competitiveness of MAV when buying MSRs and generate additional subservicing volume to PMC . The amendment resulted in a $14.1 million fair value loss (as a change in the present value of future contractual cash flows) on the Pledged MSR liability that is reported at fair value, reported within MSR valuation adjustments, net. Joint Marketing Agreement and Recapture Agreement. Effective May 3, 2021, in conjunction with the subservicing agreement, PMC and MAV entered into a joint marketing agreement and a flow MSR sale agreement (MSR recapture), whereby PMC is entitled to the exclusive right to solicit and refinance borrowers with loans underlying the MSR owned by MAV, and is obligated to transfer to MAV the MSR associated with the loans so originated. Under the agreements, the parties share the recapture benefits, whereby PMC realizes gains or losses on loans sold and MAV is delivered the recaptured MSR for no cash consideration. The joint marketing agreement and flow MSR sale agreement will continue until terminated by mutual agreement of the parties or for cause, as defined, or at the option of either party if the subservicing agreement is terminated. During 2022, PMC transferred UPB of $275.1 million under this agreement (nil in 2021). Right of First Offer . Until such time as the MAV Canopy capital contributions have been fully funded, Ocwen and its affiliates may not acquire, without Oaktree’s prior written approval, GSE MSRs that meet certain underwriting and other criteria (such criteria are referred to as the “buy-box”) unless Ocwen notifies MAV of the opportunity and MAV does not pursue it by submitting a competitive bid to the MSR seller. In addition, until the earlier of (i) the time that MAV has been fully funded and (ii) May 3, 2024 (subject to two annual extensions by mutual agreement), if Ocwen seeks to sell any GSE MSRs that meet the buy-box, Ocwen must first offer such MSRs to MAV before initiating a sale process with a third party. If MAV does not accept Ocwen’s offer, Ocwen may sell the MSRs to a third party on terms no more favorable to the purchaser than those offered to MAV. The price at which Ocwen and its affiliates will offer MSRs to MAV will be based on the valuation of an independent third-party. This first offer provision does not apply to MSRs acquired by PMC prior to May 3, 2021. In addition, MAV must provide Ocwen with reciprocal first offer rights prior to selling certain GSE MSRs originated by PMC after October 1, 2022 that are acquired by MAV under its own first offer rights. Forward Bulk Servicing Rights Purchase and Sale Agreement. On September 9, 2021, PMC and MAV entered into an MSR purchase and sale agreement whereby PMC sells MAV on a monthly basis certain Fannie Mae MSRs at the price acquired by PMC, subject to certain adjustments. During 2022 and 2021, PMC transferred MSRs with UPB of $6.6 billion and $4.3 billion, respectively, to MAV under this agreement. Bulk Mortgage Servicing Rights Purchase and Sale Agreements. During 2022 and 2021, PMC transferred to MAV certain MSRs in bulk transactions for an aggregate UPB of approximately $0.6 billion and $20.7 billion, respectively. The MSR sale transactions between PMC and MAV do not qualify for sale accounting primarily due to the termination restrictions of the subservicing agreement, and are accounted for as secured borrowings. See Note 8 — Other Financing Liabilities, at Fair Value. Administrative Services Agreement. Ocwen provides certain administrative services to MAV, including accounting, treasury, human resources, management information, MSR transaction management support, and certain licensing, regulatory and risk management support. Ocwen is entitled to a fee for such services, subject to an annual cap of $0.4 million. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | Note 12 — Other Assets December 31, 2022 2021 Contingent loan repurchase asset $ 289.9 $ 403.7 Prepaid expenses 19.8 21.5 Intangible assets, net (net of accumulated amortization of $5.0 million and $0.7 million) 14.7 14.3 REO 9.8 10.1 Derivatives, at fair value 7.7 21.7 Prepaid lender fees, net 7.7 7.2 Prepaid representation, warranty and indemnification claims - Agency MSR sale 5.0 15.2 Deferred tax assets, net 2.6 3.3 Derivative margin deposit 1.5 2.0 Security deposits 0.8 1.2 Other 4.7 7.1 $ 364.2 $ 507.3 Intangible assets, net are primarily comprised of a reverse subservicing contract intangible asset with an unamortized balance of $14.1 million and $13.7 million at December 31, 2022 and 2021, respectively. On October 1, 2021, PMC completed a transaction with MAM (RMS) and its then parent to acquire certain assets related to reverse mortgage subservicing, including subservicing contracts with various clients, including MAM (RMS) (five-year term). Substantially all of the fair value of the assets acquired in the above transactions was concentrated in a single asset, specifically the subservicing contract intangible assets; accordingly, we have accounted for these transactions as an asset acquisition. We recorded a subservicing intangible asset upon acquisition based on relative fair value allocation with the assumption of a liability for curtailments. On April 1, |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 13 — Borrowings Advance Match Funded Liabilities Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Maturity (1) Amort. Date (1) Total Available (2) 2022 2021 Advance Receivables Backed Notes - Series 2015-VF5 (3) Aug. 2053 Aug. 2023 $ 450.0 $ 27.5 $ 422.5 $ 14.2 Advance Receivables Backed Notes, Series 2020-T1 (4) N/A N/A — — — 475.0 Total Ocwen Master Advance Receivables Trust (OMART) 450.0 27.5 422.5 489.2 Ocwen GSE Advance Funding (OGAF ) - Advance Receivables Backed Notes, Series 2015-VF1 (5) Aug. 2053 Aug. 2023 90.0 — 90.0 23.1 EBO Advance facility (6) May 2026 NA 14.4 13.2 1.2 — $ 554.4 $ 40.7 $ 513.7 $ 512.3 Weighted average interest rate (7) 7.09 % 1.54 % (1) The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. After the amortization date for each note, all collections that represent the repayment of advances pledged to the facility must be applied ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing note may not be used to fund new advances. (2) The committed borrowing capacity under the OMART and OGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2022, none of the available borrowing capacity of the OMART and OGAF advance financing notes could be used based on the amount of eligible collateral. (3) Interest is computed based on the lender’s cost of funds plus applicable margin. Effective August 15, 2022, we extended the amortization date of Series 2015-VF5 variable funding notes to August 14, 2023, increased the borrowing capacity from $80.0 million to $450.0 million and modified the interest rate margins. (4) We voluntarily repaid the outstanding balance of the Series 2020-T1 term notes at the amortization date in August 2022 and replaced with variable funding notes. See (3) above. The range of interest rates on the individual classes of the repaid notes was between 1.28% to 5.42%. (5) Interest is computed based on the lender’s cost of funds plus applicable margin. On January 31, 2022, we amended the Ocwen Freddie Advance Funding (OFAF) advance facility to include Fannie Mae advances as eligible collateral and renamed the facility Ocwen GSE Advance Funding (OGAF). On August 26, 2022, the amortization date of the facility was extended to August 25, 2023, the committed borrowing capacity was increased from $40.0 million to $50.0 million and the interest rate margin was modified. On November 30, 2022, the committed borrowing capacity was further increased to $90.0 million. (6) On May 2, 2022, we entered into a loan and security agreement and issued a $1.7 million promissory note to the lender. The facility has total uncommitted borrowing capacity of $14.4 million to finance the acquisition of advances in connection with the early buyout of certain fixed-rate, fully-amortizing FHA-insured residential mortgage loans, at an interest rate of 1M Term Secured Overnight Financing Rate ( SOFR) plus applicable margin. At December 31, 2022, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. (7) 1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and 2021, respectively. The weighted average interest rate, excluding the effect of the amortization of prepaid lender fees, is computed using the outstanding balance of each respective note and its interest rate at the financial statement date. At December 31, 2022 and 2021, the balance of unamortized prepaid lender fees was $2.3 million and $1.3 million, respectively, and are included in Other assets in our consolidated balance sheets. Mortgage Loan Warehouse Facilities Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Un-committed Committed (1) 2022 2021 Master repurchase agreement (2) Loans held for sale (LHFS), Receivables and REO August 2023 $ 32.8 $ — $ 142.2 $ 109.4 Master repurchase agreement (3) LHFS and Loans held for investment (LHFI) February 2023 250.0 99.7 100.3 160.9 Master repurchase agreement (4) LHFS N/A 50.0 — — — Participation agreement (5) LHFS June 2023 185.7 — 64.3 45.2 Master repurchase agreement (5) LHFS and LHFI June 2023 — 146.9 26.1 1.8 Master repurchase agreement LHFS June 2023 — 1.0 — — Mortgage warehouse agreement (6) LHFS and LHFI March 2023 — 42.2 7.8 11.8 Mortgage warehouse agreement (7) LHFS and LHFI March 2023 159.8 — 44.2 87.8 Mortgage warehouse agreement (8) LHFS and Receivables (8) 208.1 — 21.9 192.0 Master repurchase agreement (9) LHFS (9) — — — 459.3 Loan and security agreement (10) LHFS and Receivables March 2023 — 42.8 7.2 16.8 Master repurchase agreement (11) LHFS April 2023 211.2 — 288.8 — Total Mortgage loan warehouse facilities $ 1,097.6 $ 332.6 $ 702.7 $ 1,085.1 Weighted average interest rate (12) 5.74 % 2.61 % (1) Of the borrowing capacity on mortgage loan warehouse facilities extended on a committed basis, $11.1 million of the available borrowing capacity could be used at December 31, 2022 based on the amount of eligible collateral that could be pledged. (2) On June 29, 2022, the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin. On July 29, 2022, the total maximum borrowing under this agreement was reduced from $275.0 million to $175.0 million. The borrowing available on a committed basis was reduced to $50.0 million and uncommitted capacity was increased to $125.0 million. On August 31, 2022, along with maturity date extension, the applicable interest rate margins were modified. (3) On December 9, 2022, along with maturity date extension, the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin and specified margin adjustment (effective from November 14, 2022). On February 9, 2023, we voluntarily allowed the facility to mature and reduced the borrowed amount on the facility to zero. (4) This agreement has no stated maturity date and interest is based on the SOFR, plus applicable margin, with a SOFR floor. (5) On September 16, 2022, the uncommitted borrowing capacity under the participation agreement of $150.0 million was increased to $250.0 million. On June 23, 2022, along with the maturity date extension, the interest rate on the participation agreement was modified to the greater of the stated interest rate of the mortgage loans less an agreed upon servicing fee percentage or the 1M Term SOFR, plus the applicable margin. The previous interest rate was the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor for new originations. Effective February 9, 2023, the uncommitted borrowing capacity was increased to $350.0 million through June 22, 2023. On June 23, 2022, the committed borrowing capacity under the repurchase agreement was increased from $100.0 million to $173.0 million. Also on June 23, 2022, along with the maturity date extension, the interest rate was modified to 1M Term SOFR plus applicable margin, with an interest rate floor for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean-up loans. The previous interest rate was the stated interest rate of the mortgage loans, less applicable margin with an interest rate floor for new originations and less applicable margin with an interest rate floor for Ginnie Mae modifications, Ginnie Mae buyouts and RMBS bond clean-up loans. The participation and repurchase agreements allow the lender to acquire a 100% beneficial interest in the underlying mortgage loans. (6) During 2022, the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. (7) On February 20, 2022, the interest rate for this facility was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. (8) The total borrowing capacity of this facility, all of which is uncommitted, was increased from $200.0 million to $250.0 million on January 5, 2022. The agreement has no stated maturity date, however each transaction has a maximum duration of four years. The cost of this line is set at e ach transaction date and is based on the interest rate and type of the collateral. On May 2, 2022, the facility capacity was reduced to $230.0 million simultaneous with establishing the EBO advance facility. (9) This repurchase agreement provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 30-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are transferred to a trust which issues a trust certificate that is pledged as the collateral for the borrowings. See Note 2 — Securitizations and Variable Interest Entities for additional information. Each certificate is renewed monthly and the interest rate for this facility is 1ML plus applicable margin. During 2022, we voluntarily reduced the trust certificates by $450.0 million. (10) This revolving facility agreement is secured by eligible HECM loans that are active buyouts (ABO), as defined in the agreement. On April 29, 2022, along with maturity date extension, the interest rate was modified from Prime Rate plus applicable margin (with an interest rate floor) to 1M Term SOFR plus applicable margin, with an interest rate floor. (11) On April 11, 2022, we entered into a warehouse line (master repurchase agreement) with a total borrowing capacity of $350.0 million, of which $100.0 million is committed, to finance loans held for sale and loans held for investment at an interest rate of daily simple SOFR plus applicable margin. On January 19, 2023, the temporary increase of the uncommitted capacity to $400.0 million was further extended through April 30, 2023. (12) 1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. Prime Rate was 3.25% at December 31, 2021. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and 2021, respectively. The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At December 31, 2022 and 2021, unamortized prepaid lender fees were $0.5 million and $1.2 million, respectively, and are included in Other assets in our consolidated balance sheets. MSR Financing Facilities, net Available Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Collateral Maturity Un-committed Committed (1) 2022 2021 Agency MSR financing facility (2) MSRs June 2023 $ — $ 140.2 $ 309.8 $ 317.5 Ginnie Mae MSR financing facility (3) MSRs, Advances April 2023 17.1 — 157.9 131.7 Ocwen Excess Spread-Collateralized Notes, Series 2019/2022-PLS1 (4) MSRs February 2025 — — 56.7 41.7 Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) MSRs February 2028 — — 33.4 39.5 Agency MSR financing facility - revolving loan (6) MSRs December 2025 — 3.2 396.8 277.1 Agency MSR financing facility - term loan (6) MSRs N/A — — — 94.2 Total MSR financing facilities $ 17.1 $ 143.4 $ 954.6 $ 901.7 Unamortized debt issuance costs - PLS Notes and Agency MSR financing - term loan (7) (0.8) (0.9) Total MSR financing facilities, net $ 953.8 $ 900.8 Weighted average interest rate (8) (9) 7.31% 3.71% (1) Of the borrowing capacity on MSR financing facilities extended on a committed basis, none of the available borrowing capacity could be used at December 31, 2022 based on the amount of eligible collateral that could be pledged. (2) PMC’s obligations under this facility are secured by a lien on the related MSRs. Ocwen guarantees the obligations of PMC under this facility. On June 30, 2022, along with the maturity date extension, the maximum amount which we may borrow pursuant to the repurchase agreements was increased to $450.0 million (from $350.0 million) on a committed basis and the interest rate was modified from 1ML plus applicable margin to 1M Term SOFR plus applicable margin. See Note 2 — Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. Declines in fair value of our MSRs due to declines in market interest rates, assumption updates or other factors require that we provide additional collateral to our lenders under these facilities. (3) In connection with this facility, PMC entered into a repurchase agreement pursuant to which PMC has sold a participation certificate representing certain economic interests in the Ginnie Mae MSRs and servicing advances and has agreed to repurchase such participation certificate at a future date at the repurchase price set forth in the repurchase agreement. PMC’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and servicing advances. Ocwen guarantees the obligations of PMC under the facility. See (2) above regarding daily margining requirements. On February 28, 2022, along with the maturity date extension, the borrowing capacity was increased from $150.0 million to $175.0 million ($50.0 million available on a committed basis) and the interest rate was modified from 1ML plus applicable margin to adjusted daily simple SOFR plus applicable margin (with an adjusted SOFR floor). Effective February 28, 2023, the maturity date of this facility was extended to April 28, 2023 and the borrowing capacity was increased to $200.0 million ($50.0 million available on a committed basis). (4) The single class PLS Notes are an amortizing debt instrument with an initial principal amount of $100.0 million and a fixed interest rate of 5.07%. The PLS Notes are issued by a trust (PLS Issuer) that is included in our consolidated financial statements, and PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Ocwen guarantees the obligations of PLS Issuer under the facility. On March 15, 2022, we replaced the existing notes (Series 2019-PLS1) with a new series of notes at an initial principal amount of $75.0 million and a fixed interest rate of 5.114%. The principal balance amortizes in accordance with a predetermined schedule subject to modification under certain events, with a final payment due in February 2025. See Note 2 — Securitizations and Variable Interest Entities for additional information. (5) OASIS noteholders are entitled to receive a monthly payment equal to the sum of: (a) 21 basis points of the UPB of the reference pool of Freddie Mac mortgages; (b) any termination payment amounts; (c) any excess refinance amounts; and (d) the note redemption amounts, each as defined in the indenture supplement for the notes. Monthly amortization of the liability is estimated using the proportion of monthly projected service fees on the underlying MSRs as a percentage of lifetime projected fees, adjusted for the term of the notes. (6) This facility originally included a $135.0 million term loan and a $285.0 million revolving loan secured by a lien on certain of PMC’s Agency MSRs. See (2) above regarding daily margining requirements. On September 1, 2022, the interest rate for this facility was modified from 1-year swap rate plus applicable margin to 1M Term SOFR plus applicable margin, with an interest rate floor. On November 29, 2022, along with the maturity date extension, the term loan was repaid and the revolving loan capacity was increased to $400.0 million. Any outstanding borrowings on the revolving loan will convert into a term loan upon the two-year anniversary of the November 2022 amendment. (7) At December 31, 2022 and 2021, unamortized prepaid lender fees related to revolving type MSR financing facilities were $4.9 million and $4.7 million, respectively, and are included in Other assets in our consolidated balance sheets. (8) Weighted average interest rate at December 31, 2022 and December 31, 2021, excluding the effect of the amortization of debt issuance costs and prepaid lender fees. (9) 1ML was 4.39% and 0.10% at December 31, 2022 and 2021, respectively. The 1-year swap rate was 0.19% at December 31, 2021. 1M Term SOFR was 4.36% and 0.05% at December 31, 2022 and December 31, 2021, respectively. Senior Secured Term Loan, net On March 4, 2021, we repaid in full the $185.0 million outstanding principal balance of our Senior Secured Term Loan (SSTL). The prepayment resulted in our recognition of an $8.4 million loss on debt extinguishment, including a prepayment premium of 2% of the outstanding principal balance, or $3.7 million. Senior Notes Outstanding Balance at December 31, Interest Rate (1) Maturity 2022 2021 PMC Senior Secured Notes 7.875% March 2026 $ 375.0 $ 400.0 OFC Senior Secured Notes (due to related parties) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285.0 285.0 Principal balance 660.0 685.0 Discount (2) PMC Senior Secured Notes (1.3) (1.8) OFC Senior Secured Notes (3) (47.3) (54.2) (48.6) (55.9) Unamortized debt issuance costs (2) PMC Senior Secured Notes (4.3) (5.7) OFC Senior Secured Notes (7.5) (8.6) (11.8) (14.3) $ 599.6 $ 614.8 (1) Excluding the effect of the amortization of debt issuance costs and discount. (2) The discount and debt issuance costs are amortized to interest expense through the maturity of the respective notes. (3) Includes original issue discount (OID) and additional discount related to the concurrent issuance of warrants and common stock. See below for additional information. Redemption of 6.375% Senior Unsecured Notes due 2021 and 8.375% Senior Secured Notes due 2022 On March 4, 2021, we redeemed all of PHH’s outstanding 6.375% Senior Notes due August 2021 at a price of 100% of the principal amount, plus accrued and unpaid interest, and all of PMC’s 8.375% Senior Secured Notes due November 2022 at a price of 102.094% of the principal amount, plus accrued and unpaid interest. The redemption resulted in our recognition of a $7.1 million loss on debt extinguishment. Issuance of 7.875% Senior Secured Notes due 2026 On March 4, 2021, PMC completed the issuance and sale of $400.0 million aggregate principal amount of 7.875% senior secured notes due March 15, 2026 (the PMC Senior Secured Notes) at a discount of $2.1 million. The PMC Senior Secured Notes are guaranteed on a senior secured basis by Ocwen and PHH and were sold in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). Interest on the PMC Senior Secured Notes accrues at a rate of 7.875% per annum and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. On or after March 15, 2023, PMC may redeem some or all of the PMC Senior Secured Notes at its option at the following redemption prices, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date if redeemed during the 12-month period beginning on March 15th of the years indicated below: Redemption Year Redemption Price 2023 103.938 % 2024 101.969 2025 and thereafter 100.000 The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH and its restricted subsidiaries (including PMC) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Ocwen’s affiliates. In 2022, we repurchased a total of $25.0 million of the PMC Senior Secured Notes in the open market for a price of $23.6 million, and recognized a $0.9 million gain on debt extinguishment, net of the respective write-off of unamortized discount and debt issuance costs. Issuance of OFC Senior Secured Notes On March 4, 2021, Ocwen completed the private placement of $199.5 million aggregate principal amount of senior secured notes (the OFC Senior Secured Notes) with an OID of $24.5 million to certain entities owned by funds and accounts managed by Oaktree Capital Management, L.P. (the Oaktree Investors). Concurrent with the issuance of the OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors warrants to purchase shares of its common stock. The $158.5 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. On May 3, 2021, Ocwen issued to Oaktree the second tranche of the OFC Senior Secured Notes in an aggregate principal amount of $85.5 million with an OID of $10.5 million. Concurrent with the issuance of the second tranche of OFC Senior Secured Notes, Ocwen issued to the Oaktree Investors shares and warrants to purchase shares of its common stock. The $68.0 million proceeds were allocated to the OFC Senior Secured Notes on a relative fair value basis resulting in an initial discount. See Note 15 — Stockholders’ Equity for additional information regarding the issuance of common stock and warrants. The OFC Senior Secured Notes mature on March 4, 2027 with no amortization of principal. Interest is payable quarterly in arrears on the last business day of each March, June, September and December and accrues at the rate of 12% per annum to the extent interest is paid in cash or 13.25% per annum to the extent interest is “paid-in-kind” through an increase in the principal amount or the issuance of additional notes (PIK Interest). A minimum amount of interest is required to be paid in cash equal to the lesser of (i) 7% per annum of the outstanding principal amount of the OFC Senior Secured Notes and (ii) the total amount of unrestricted cash of Ocwen and its subsidiaries less the greater of $125.0 million and the minimum liquidity amounts required by any agency. The OFC Senior Secured Notes are solely the obligation of Ocwen and are secured by a pledge of substantially all of the assets of Ocwen, including a pledge of the equity of Ocwen’s directly held subsidiaries. The lien on Ocwen’s assets securing the OFC Senior Secured Notes is junior to the lien securing Ocwen’s guarantee of the 7.875% PMC Senior Secured Notes described above. The OFC Senior Secured Notes are not guaranteed by any of Ocwen’s subsidiaries nor are they secured by a pledge or lien on any assets of Ocwen’s subsidiaries. Prior to March 4, 2026, we are permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par, plus a make-whole premium, plus accrued and unpaid interest. The make-whole premium represents the present value of all scheduled interest payments due through March 4, 2026. On and after March 4, 2026, we will be permitted to redeem the OFC Senior Secured Notes in whole or in part at any time at a redemption price equal to par plus accrued and unpaid interest. Credit Ratings Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligations. At December 31, 2022, and affirmed on January 24, 2023, the S&P issuer credit rating for Ocwen was “B-”. On January 24, 2022, S&P raised the assigned rating of the PMC Senior Secured Notes from “B-” to ‘B’ and maintained a stable issuer outlook citing improved profitability and an increase in assets. On January 24, 2023, S&P affirmed the “B” rating. Moody’s reaffirmed their ratings of Caa1 and revised their outlook to Stable from Negative on February 24, 2021. On August 15, 2022, Moody’s reaffirmed PMC’s long-term corporate family ratings of Caa1 and revised their outlook to Positive from Stable. It is possible that additional actions by credit rating agencies could have a material adverse impact on our liquidity and funding position, including materially changing the terms on which we may be able to borrow money. Covenants Under the terms of our debt agreements, we are subject to various affirmative and negative covenants. Collectively, these covenants include: • Financial covenants, including, but not limited to, specified levels of net worth, liquidity and leverage; • Covenants to operate in material compliance with applicable laws; • Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Ocwen and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Ocwen and its subsidiaries or of PHH or PMC and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates; • Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and • Requirements to provide audited financial statements within specified timeframes, including requirements that Ocwen’s financial statements and the related audit report be unqualified as to going concern. The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at December 31, 2022 is a minimum of $300.0 million tangible net worth for both Ocwen and PMC, as defined in certain of our mortgage warehouse, MSR financing and advance financing facilities agreements. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at December 31, 2022 is for a minimum of $75.0 million for both Ocwen consolidated liquidity and PMC consolidated liquidity, as defined, under certain of our MSR financing facilities and mortgage warehouse agreements. The minimum tangible net worth and liquidity requirements at PMC are subject to the minimum requirement set forth by the Agencies. See Note 23 — Regulatory Requirements. As a result of the covenants to which we are subject, we may be limited in the manner in which we conduct our business and may be limited in our ability to engage in favorable business and investment activities or raise certain types of capital to finance future operations or satisfy future liquidity needs. In addition, breaches or events that may result in a default under our debt agreements include, among other things, nonpayment of principal or interest, noncompliance with our covenants, breach of representations, the occurrence of a material adverse change, insolvency, bankruptcy, certain material judgments and changes of control. Covenants and default provisions of this type are commonly found in debt agreements such as ours. Certain of these covenants and default provisions are open to subjective interpretation and, if our interpretation was contested by a lender, a court may ultimately be required to determine compliance or lack thereof. In addition, our debt agreements generally include cross default provisions such that a default under one agreement could trigger defaults under other agreements. If we fail to comply with our debt agreements and are unable to avoid, remedy or secure a waiver of any resulting default, we may be subject to adverse action by our lenders, including termination of further funding, acceleration of outstanding obligations, enforcement of liens against the assets securing or otherwise supporting our obligations and other legal remedies. Our lenders can waive their contractual rights in the event of a default. We believe we were in compliance with all of the covenants in our debt agreements as of the date of these consolidated financial statements. Collateral Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at December 31, 2022: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 208.0 $ — $ — $ 208.0 Restricted cash 66.2 66.2 — — Loans held for sale 622.7 592.4 572.4 30.3 Loans held for investment - securitized (2) 7,392.6 7,392.6 7,326.8 — Loans held for investment - unsecuritized 111.5 67.5 60.9 44.0 MSRs (3) 1,710.6 1,725.8 1,115.9 — Advances, net 718.9 667.2 551.4 51.7 Receivables, net 180.8 67.0 65.7 113.8 REO 9.8 4.3 3.8 5.5 Total (4) $ 11,021.1 $ 10,582.9 $ 9,696.8 $ 453.4 (1) Certain assets are pledged as collateral to the PMC Senior Secured Notes and OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PMC in connection with certain claims relating to the performance and obligations of PMC as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to Rithm and MAV and associated Pledged MSR liability recorded as sale accounting criteria are not met. Pledged assets exceed the MSR asset balance due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral. (4) The total of selected assets disclosed in the above table does not represent the total consolidated assets of Ocwen. For example, the total excludes premises and equipment and certain other assets. The OFC Senior Secured Notes due 2027 have a second lien priority on specified security interests, as defined under the OFC Senior Secured Note Agreement and listed in the table below, and have a priority lien on the following assets: investments by OFC in subsidiaries not guaranteeing the PMC Senior Secured Notes, including PHH and MAV; cash and investment accounts at OFC; and certain other assets, including receivables. As of December 31, 2022 Specified net servicing advances $ 228.1 Specified deferred servicing fee 3.7 Specified MSR value less borrowings 690.4 Specified unrestricted cash balances 124.1 Specified advance facility reserves 15.8 Specified loan value 99.7 Specified residual value — Total $ 1,161.7 Maturities of Borrowings and Management’s Plans to Address Maturing Borrowings Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience. Expected Maturity Date (1) (2) 2023 2024 2025 2026 2027 Thereafter Total Fair Advance match funded liabilities $ 512.5 $ — $ — $ 1.2 $ — $ — $ 513.7 $ 513.7 Mortgage loan warehouse facilities 702.7 — — — — — 702.7 702.7 MSR financing facilities 485.2 13.8 422.2 — — 33.4 954.6 932.1 Senior notes — — — 375.0 285.0 — 660.0 555.2 $ 1,700.5 $ 13.8 $ 422.2 $ 376.2 $ 285.0 $ 33.4 $ 2,831.0 $ 2,703.7 (1) Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment. (2) For match funded liabilities, the Expected Maturity Date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 14 — Other Liabilities December 31, 2022 2021 Contingent loan repurchase liability $ 289.9 $ 403.7 Other accrued expenses 75.9 104.9 Due to Rithm - Advance collections and servicing fees 64.4 76.6 Checks held for escheat 48.1 44.9 Liability for indemnification obligations 43.8 51.2 Accrued legal fees and settlements 42.2 44.0 Servicing-related obligations 40.1 32.4 Lease liability 16.6 16.8 Derivatives, at fair value 15.7 3.1 MSR purchase price holdback 13.9 32.6 Accrued interest payable 13.7 12.0 Liability for uncertain tax positions 10.9 14.7 Income taxes payable 6.2 — Derivative related payables 6.0 3.7 Liability for unfunded India gratuity plan 5.9 6.3 Mortgage insurance premium payable 5.0 5.1 Liability for unfunded pension obligation 3.4 4.2 Excess servicing fee spread payable 3.4 — Due to MAV 0.2 2.1 Other 3.2 9.2 $ 708.5 $ 867.5 Accrued Legal Fees and Settlements Years Ended December 31, 2022 2021 2020 Beginning balance $ 44.0 $ 38.9 $ 30.7 Accrual for probable losses (1) 6.6 9.4 26.5 Payments (2) (6.9) (5.5) (14.8) Net increase (decrease) in accrued legal fees (1.5) 1.2 (3.4) Other — — 0.1 Ending balance $ 42.2 $ 44.0 $ 38.9 (1) Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the consolidated statements of operations. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders Equity | Note 15 — Stockholders’ Equity Common Stock On February 3, 2020, Ocwen’s Board of Directors authorized a share repurchase program for an aggregate amount of up to $5.0 million of Ocwen’s issued and outstanding shares of common stock. During the three months ended March 31, 2020, we completed the repurchase of 377,484 shares of common stock in the open market under this program at prevailing market prices for a total purchase price of $4.5 million for an average price paid per share of $11.90. In addition, Ocwen paid $0.1 million in commissions. The repurchased shares were formally retired as of March 31, 2020. No additional shares were repurchased prior to the program’s expiration on February 3, 2021. As disclosed in Note 13 — Borrowings, concurrent with the issuance of the OFC Senior Secured Notes on March 4, 2021, Ocwen issued to Oaktree warrants to purchase 1,184,768 shares of its common stock (which amount, upon exercise of the warrants, would be equal to 12% of Ocwen’s outstanding common stock as of the date of issuance of such warrants) at an exercise price of $26.82 per share, subject to antidilution adjustments. The warrants may be exercised at any time from the date of issuance through March 4, 2027, in cash or pursuant to a cashless exercise, as defined. On March 4, 2021, the $16.5 million allocated fair value of the warrants was reported as Additional Paid-in Capital in our consolidated balance sheet, net of allocated debt issuance costs of $0.8 million. On May 3, 2021, concurrent with the issuance of the second tranche of OFC Senior Secured Notes described above, and in connection with the closing of the Transaction Agreement dated December 21, 2020 and disclosed in Note 11 — Investment in Equity Method Investee and Related Party Transactions, we issued to Oaktree 426,705 shares of our common stock, representing 4.9% of our then outstanding common stock, at a price per share of $23.15 for an aggregate purchase price of $9.9 million, and warrants to purchase 261,248 shares of our common stock (which amount was equal to 3% of Ocwen’s outstanding common stock as of the date of issuance of such warrants) at a price per share of $24.31 in consideration of the transaction. The warrants may be exercised at any time from the date of issuance through May 3, 2025, in cash or pursuant to a cashless exercise, as defined. On May 3, 2021, the $12.6 million allocated fair value of the common stock and $4.3 million allocated fair value of the warrants was reported as Common stock, at par value of the shares issued, and Additional Paid-in Capital in our consolidated balance sheet, net of allocated debt issuance costs of $0.5 million. Pursuant to a registration rights agreement with Oaktree, we registered for resale the issued shares of common stock and the shares of common stock issuable upon exercise of the warrants described above in a Registration Statement on Form S-3 filed with the SEC on August 30, 2022. On May 20, 2022, Ocwen’s Board of Directors authorized a share repurchase program for an aggregate amount of up to $50.0 million of Ocwen’s issued and outstanding shares of common stock. The repurchase program is intended to qualify for the affirmative defense provided by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Prior to the expiration of the program on November 20, 2022, we completed the repurchase of 1,750,557 shares of our common stock in the open market under this program at prevailing market prices for a total purchase price of $50.0 million (including commissions) at an average price per share of $28.53. The repurchased shares were retired in tranches throughout the term of the program. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows: December 31, 2022 2021 Unfunded pension plan obligation, net $ 2.1 $ 1.9 Unrealized losses on cash flow hedges, net 0.5 0.6 Other (0.1) (0.1) $ 2.5 $ 2.4 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Note 16 — Derivative Financial Instruments and Hedging Activities The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Maturities Notional Fair Value Maturities Notional Fair Value Derivative Assets (Other assets) Forward sales of Reverse loans January 2023 $ 20.0 $ 0.1 February 2022 $ 175.0 $ 0.4 Forward loans IRLCs N/A — — January - April 2022 1,022.0 16.1 Reverse loans IRLCs January 2023 13.8 0.6 January 2022 63.3 2.0 TBA forward MBS trades January - March 2023 804.0 6.6 January - March 2022 587.0 0.9 Forward sales of Forward loans January 2023 100.0 0.4 N/A — — Interest rate swap futures N/A — — March 2022 792.5 1.7 Interest rate option contracts N/A — — January 2022 125.0 0.5 Total $ 937.8 $ 7.7 $ 2,764.8 $ 21.7 Derivative Liabilities (Other liabilities) Forward loans IRLCs January - April 2023 $ 540.1 $ (1.3) N/A $ — $ — Forward sales of Reverse loans January 2023 20.0 (0.1) N/A — — TBA forward MBS trades January - February 2023 85.0 (0.7) January - March 2022 1,195.0 (1.2) Interest rate swap futures January 2023 670.0 (13.6) N/A — — Interest rate option contracts N/A — — February 2022 450.0 (0.8) Other N/A 56.4 (0.1) N/A — (1.1) Total $ 1,371.4 $ (15.7) $ 1,645.0 $ (3.1) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations. Years Ended December 31, Gain (Loss) 2022 2021 2020 Financial Statement Line Derivative Instruments Forward loans IRLCs $ (17.4) $ (6.2) $ 17.5 Gain on loans held for sale, net Reverse loans IRLCs (1.4) 1.5 0.3 Gain on reverse loans held for investment and HMBS-related borrowings, net TBA trades (economically hedging forward pipeline trades and EBO pipeline) 101.3 1.5 — Gain on loans held for sale, net (Economic hedge) Forward trades (economically hedging forward pipeline trades and EBO pipeline) 0.4 — — Gain on loans held for sale, net (Economic hedge) Interest rate swap futures and TBA forward MBS trades — — (10.1) Gain on loans held for sale, net (Economic hedge) TBA trades (economically hedging reverse pipeline trades) (0.3) — — Gain on reverse loans held for investment and HMBS-related borrowings, net Interest rate swap futures, TBA trades and interest rate option contracts (106.9) (9.5) 27.5 MSR valuation adjustments, net Forward sales of Reverse loans (0.3) 0.4 — Gain on reverse loans held for investment and HMBS-related borrowings, net Other — — 0.1 Gain on loans held for sale, net Other 1.0 (1.1) — Other, net Total $ (23.5) $ (13.3) $ 35.3 Interest Rate Risk MSR Hedging MSRs are carried at fair value with changes in fair value being recorded in earnings in the period in which the changes occur. The fair value of MSRs is subject to changes in market interest rates among other inputs and assumptions. Through May 2021, management implemented a macro-hedging strategy to reduce the volatility of the MSR portfolio attributable to interest rate changes. As a general matter, the impact of interest rates on the fair value of our MSR portfolio is naturally offset by other exposures, including our loan pipeline and our economic MSR value embedded in our reverse mortgage loan portfolio. Our hedging strategy was targeted at mitigating the residual exposure, which we referred to as our net MSR portfolio exposure. We defined our net MSR portfolio exposure as follows: • our more interest rate-sensitive Agency MSR portfolio, • less the Agency MSRs subject to our agreements with Rithm (See Note 8 — Other Financing Liabilities, at Fair Value), • less the unsecuritized reverse mortgage loans and tails classified as held for investment, • less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings, and • less the net value of our held for sale loan portfolio and lock commitments (pipeline). Effective May 2021, management started hedging its MSR portfolio and its pipeline separately (see below for further description of pipeline hedging ) , effectively ending the macro-hedge strategy previously in place. Under the revised MSR hedging strategy, the interest-rate sensitive MSR portfolio exposure is now defined as follows: • Agency MSR portfolio, • expected Agency MSR bulk transactions subject to letters of intent (LOI), • less the Agency MSRs subject to our sale agreements with MAV, Rithm and others (See Note 8 — Other Financing Liabilities, at Fair Value), • less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings. The objective of our MSR policy is to provide partial hedge coverage of interest-rate sensitive MSR portfolio exposure, considering market and liquidity conditions. The hedge coverage ratio, defined as the ratio of hedge and asset rate sensitivity (referred to as DV01) is subject to lower and upper thresholds, as modeled. As of December 31, 2022, a minimum 25% and 30% hedge coverage ratios were required for interest rate declines less than, and more than 50 basis points, respectively. Prior to September 30, 2022, the hedge coverage ratio was required to remain within a minimum of 40% and maximum of 60%. Accordingly, the changes in fair value of our hedging instruments may not fully offset the changes in fair value of our net MSR portfolio exposure attributable to interest rate changes. We periodically evaluate the hedge coverage ratio at the intended shock interval to determine if it is relevant or warrants adjustment based on market conditions, symmetry of interest rate risk exposure, and liquidity impacts of both the hedge and asset profile under shock scenarios. As the market dictates, management may choose to maintain hedge coverage ratio levels at or beyond the above thresholds, with approval of the Market Risk Committee, in order to preserve liquidity and/or optimize asset returns. In addition, while DV01 measures may remain within the range of our hedging strategy’s objective, actual changes in fair value of the derivatives and MSR portfolio may not offset to the same extent, due to non-parallel changes in the interest rate curve and the basis risk inherent in the MSR profile and hedging instruments, among other factors. We continuously evaluate the use of hedging instruments to strive to enhance the effectiveness of our interest rate hedging strategy. Our derivative instruments include forward trades of MBS or Agency TBAs with different banking counterparties, exchange-traded interest rate swap futures and interest rate options. These derivative instruments are not designated as accounting hedges. TBAs, or To-Be-Announced securities, are actively traded, forward contracts to purchase or sell Agency MBS on a specific future date. From time-to-time, we enter into exchange-traded options contracts with purchased put options financed by written call options. We report changes in fair value of these derivative instruments in MSR valuation adjustments, net in our consolidated statements of operations, within the Servicing segment. We may, from time to time, establish inter-segment derivative instruments between the MSR and pipeline hedging strategies to minimize the use of third-party derivatives. The fair value gains and losses of such inter-segment derivatives effectively reclassify certain derivative gains and losses between MSR valuation adjustments, net and Gain on loans held for sale, net to reflect the performance of these economic hedging strategies in the appropriate segments (See Note 22 — Business Segment Reporting for the amount of such reclassification). Such inter-segment derivatives are eliminated in our consolidated financial statements. The derivative instruments are subject to margin requirements, posted as either initial or variation margin. Ocwen may be required to post or may be entitled to receive cash collateral with its counterparties through margin calls, based on daily value changes of the instruments. Changes in market factors, including interest rates, and our credit rating may require us to post additional cash collateral and could have a material adverse impact on our financial condition and liquidity. Pipeline Hedging - Interest Rate Lock Commitments and Loans Held for Sale, at Fair Value In our Originations business, we are exposed to interest rate risk and related price risk during the period from the date of the interest rate lock commitment through (i) the lock commitment cancellation or expiration date or (ii) through the date of sale or securitization of the resulting loan into the secondary mortgage market. Loan commitments for forward loans generally range from 5 to 90 days, with the majority of our commitments to borrowers for 55 to 75 days and our commitments to correspondent sellers for 7 days. Loans held for sale are generally funded and sold within 3 to 20 days. This interest rate exposure was not individually hedged until May 2021, but rather used as an offset to our MSR exposure and managed as part of our MSR macro-hedging strategy described above. Effective May 2021, we implemented a new pipeline hedging strategy, whereby the interest rate exposure of loans and IRLCs is economically hedged with derivative instruments, including forward sales of Agency TBAs. The objective of our pipeline hedging strategy is to reduce the volatility of the fair value of IRLCs and loans due to market interest rates, thus to preserve the initial gain on sale margin at lock date. We report changes in fair value of these derivative instruments as gain or loss on economic hedge instruments within either Gain on loans held for sale, net or Gain on reverse loans held for investment and HMBS-related borrowings, net in our consolidated statements of operations. EBO and Loan Modification Hedging – Loans Held for Sale, at fair value Effective February 2022, management started hedging certain Ginnie Mae EBO loans as well as loans in process of modification pending redelivery/re-securitization to manage interest rate risk. Such interest rate exposure on these loans held for sale accounted for at fair value is economically hedged using forward trades of TBAs. Changes in fair value of these derivative instruments are reported as gain or loss on economic hedge instruments within Gain on loans held for sale, net in our consolidated statements of operations. Beginning June 2022, management started hedging the in-process GNMA modification pipeline as well. Foreign Currency Exchange Rate Risk |
Interest Income
Interest Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Interest Income | Note 17 — Interest Income Years Ended December 31, 2022 2021 2020 Loans held for sale $ 43.9 $ 25.9 $ 13.9 Interest earning cash deposits and other 1.7 0.5 2.1 $ 45.6 $ 26.4 $ 16.0 |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Interest Expense | Note 18 — Interest Expense Years Ended December 31, 2022 2021 2020 OFC Senior Secured Notes (1) $ 42.1 $ 31.7 $ — PHH and PMC senior notes 31.8 31.9 26.6 Mortgage loan warehouse facilities 37.8 30.6 15.2 MSR financing facilities 47.0 26.0 15.9 Advance match funded liabilities 19.8 14.2 24.1 SSTL — 3.0 20.5 Escrow 7.5 6.5 7.0 $ 186.0 $ 144.0 $ 109.4 (1) Notes issued to Oaktree affiliates, inclusive of amortization of debt issuance costs and discount of $7.9 million and $5.0 million for the years ended December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19 — Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act includes several significant business tax provisions that, among other things, temporarily repealed the taxable income limitation for certain net operating losses (NOL) and allows businesses to carry back NOLs arising in 2018, 2019, and 2020 tax years to the five prior tax years, accelerated refunds of previously generated corporate Alternative Minimum Tax (AMT) credits, and adjusted the business interest expense limitation under section 163(j) from 30% to 50% of Adjusted Taxable Income (ATI) for 2019 and 2020 tax years. Based on information available at the time, we estimated that modifications to the tax rules for the carryback of NOLs and business interest expense limitations would result in U.S. and USVI federal net tax refunds of approximately $62.6 million and $1.4 million, respectively, and as such we recognized an income tax benefit, net of related uncertain tax positions, of $64.0 million in our consolidated financial statements for the year ended December 31, 2020. We recognized an additional $12.6 million of income tax benefit in our financial statements for the year ended December 31, 2021 as we refined estimates and received resolution on uncertainties related to our CARES Act claims. During the years ended December 31, 2022, 2021 and 2020, we collected $11.3 million, $24.6 million and $51.4 million, respectively, which represents the tax refunds associated with the NOLs generated in 2018, 2019 and 2020 carried back to prior tax years. The income tax benefit recognized represents the release of valuation allowances against certain NOL and Section 163(j) deferred tax assets that are now more likely than not to be realizable as a result of certain provisions of the CARES Act as well as a permanent income tax benefit related to the carryback of NOLs created in a tax year that was subject to U.S. federal tax at 21% to a tax year subject to tax at 35%. For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows: Years Ended December 31, 2022 2021 2020 Domestic $ 14.0 (13.9) (118.0) Foreign 10.9 9.5 12.4 $ 24.9 $ (4.4) $ (105.7) The components of income tax expense (benefit) were as follows: Years Ended December 31, 2022 2021 2020 Current: Federal $ 0.2 $ (20.1) $ (67.1) State (0.8) (1.3) 0.3 Foreign (0.2) 1.6 2.6 (0.8) (19.8) (64.2) Deferred: Federal 4.7 (2.3) (26.0) State (0.7) — (2.1) Foreign 0.6 0.2 (1.4) Provision for (reversal of) valuation allowance on deferred tax assets (3.9) 2.3 28.2 0.7 0.2 (1.3) Other (0.7) (2.8) — Total $ (0.8) $ (22.4) $ (65.5) Ocwen is a global company with operations in the U.S., USVI, India and the Philippines, among other jurisdictions. In the effective tax rate reconciliation, we first calculate income tax expense attributable to worldwide continuing operations at the U.S. statutory tax rate. The foreign tax rate differential therefore represents the difference in tax expense between jurisdictional income taxed at the U.S. statutory rate and each respective jurisdictional statutory rate. Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows: Years Ended December 31, 2022 2021 2020 Expected income tax expense (benefit) at statutory rate $ 5.2 $ (0.9) $ (22.2) Differences between expected and actual income tax expense: CARES Act (0.1) (12.6) (79.0) Provision for (reversal of) valuation allowance on deferred tax assets (3.9) 2.3 28.2 Provision for (reversal of) liability for uncertain tax positions (3.4) (8.7) 13.1 Interest on refund claims due from tax authorities (0.7) (2.8) — Other provision to return differences (0.2) (1.0) (3.3) Foreign tax differential including effectively connected income (1) 2.3 1.4 (2.5) State tax, after Federal tax benefit (0.3) 0.2 (1.4) Benefit of state NOL carryback claims and amended return filings (1.2) (1.8) — Executive compensation disallowance 1.6 1.4 0.6 Excess tax benefits from share-based compensation (0.4) (0.5) 0.4 Other permanent differences 0.1 0.2 0.4 Foreign tax credit (generation) utilization 0.1 — — U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion 0.1 0.2 0.2 Other — 0.2 0.1 Actual income tax expense (benefit) $ (0.8) $ (22.4) $ (65.5) Net deferred tax assets were comprised of the following: December 31, 2022 2021 Deferred tax assets Net operating loss carryforwards - federal and foreign $ 107.9 $ 54.6 Net operating loss carryforwards and credits - state and local 90.3 70.7 Interest expense disallowance 72.6 39.3 Reserve for servicing exposure 5.7 6.8 Accrued legal settlements 10.0 9.9 Partnership losses 5.4 8.6 Stock-based compensation expense 10.4 9.9 Accrued incentive compensation 3.7 6.7 Accrued other liabilities 5.4 5.9 Lease liabilities 1.0 2.5 Intangible asset amortization 6.3 5.0 Foreign deferred assets 3.2 3.8 Tax residuals and deferred income on tax residuals 1.5 1.5 Bad debt and allowance for loan losses 8.2 4.0 Other 4.1 5.1 335.7 $ 234.1 Deferred tax liabilities Mortgage servicing rights amortization 153.1 57.3 Other 1.5 1.3 154.6 58.6 181.1 175.4 Valuation allowance (178.5) (172.1) Deferred tax assets, net $ 2.6 $ 3.3 As of December 31, 2022, we had a deferred tax asset, net of deferred tax liability, of $181.1 million including $177.5 million in the U.S. As of December 31, 2021, we had a deferred tax asset, net of deferred tax liability, of $175.4 million including $171.1 million in the U.S. Valuation Allowances We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that the deferred tax asset can be realized in future periods. In these evaluations, we gave more significant weight to objective evidence, such as our actual financial condition and historical results of operations, as compared to subjective evidence, such as projections of future taxable income or losses. The U.S. jurisdiction is in a three-year cumulative loss position as of December 31, 2022. We recognize that cumulative losses in recent years is an objective form of negative evidence in assessing the need for a valuation allowance and that such negative evidence is difficult to overcome. Other factors considered in these evaluations are estimates of future taxable income, future reversals of temporary differences, taxable income in prior carryback years, tax character and the impact of tax planning strategies that may be implemented, if warranted. As a result of these evaluations, we recorded a full valuation allowance of $177.5 million and $171.1 million on our U.S. net deferred tax assets at December 31, 2022 and 2021, respectively. These U.S. jurisdictional deferred tax assets are not considered to be more likely than not realizable based on all available positive and negative evidence. We intend to continue maintaining a full valuation allowance on our net deferred tax assets in the U.S. until there is sufficient evidence to support the reversal of all or some portion of these allowances. Net Operating Loss Carryforwards At December 31, 2022, we had U.S. federal NOL carryforwards of $510.4 million, and state NOL and tax credit carryforwards valued at $90.3 million. These U.S. federal and state NOL carryforwards will expire beginning 2023 through 2042 with U.S. federal NOLs generated after 2017 never expiring. We believe that it is more likely than not that the benefit from certain U.S. federal and state NOL carryforwards will not be realized. In recognition of this risk, we have provided a total valuation allowance of $107.2 million and $90.3 million on the deferred tax assets relating to the U.S. federal and state NOL carryforwards, respectively. If our assumptions change and we determine we will be able to realize these NOLs, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of December 31, 2022 will be accounted for as a reduction of income tax expense. Additionally, $334.5 million of USVI NOLs have been carried back to offset prior period tax due in the USVI and we have, therefore, reflected the tax-effect of this attribute as a $12.9 million income taxes receivable. We also have U.S. capital loss carryforwards of $7.2 million at December 31, 2022 against which a valuation allowance has been recorded. Change of Control: Annual Limitations on Utilization of Tax Attributes NOL carryforwards may be subject to annual limitations under Internal Revenue Code Section 382 (Section 382) (or comparable provisions of foreign or state law) in the event that certain changes in ownership were to occur. We periodically evaluate our NOL carryforwards and whether certain changes in ownership have occurred that would limit our ability to utilize a portion of our NOL and tax credit carryforwards. If it is determined that an ownership change(s) has occurred, there may be annual limitations on the use of these NOL and tax credit carryforwards under Section 382 (or comparable provisions of foreign or state law). Ocwen and PHH have both experienced historical ownership changes that have caused the use of certain tax attributes to be limited and have resulted in the write-off of certain of these attributes based on our inability to use them in the carryforward periods defined under the tax laws. Ocwen continues to monitor the ownership in its stock to evaluate whether any additional ownership changes have occurred that would further limit its ability to utilize certain tax attributes. As such, our analysis regarding the amount of tax attributes that may be available to offset taxable income in the future without restrictions imposed by Section 382 may continue to evolve. Uncertain Tax Positions Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2018 through the present, our USVI corporate tax return for the years ended December 31, 2019 through the present, and our India corporate tax returns for the years ended March 31, 2010 through the present. During 2021, we concluded our audit in the USVI jurisdiction for tax years 2013 - 2016 related to the carryback of losses generated in 2015 and 2016 to tax years 2013 and 2014, respectively, without any adjustment, and in December 2022, we executed a closing agreement with the BIR that calls for payment of the income tax refunds, plus accrued interest, over a two-year period ending December 31, 2024. A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows: Years Ended December 31, 2022 2021 2020 Beginning balance $ 11.5 $ 20.6 $ 10.6 Additions for tax positions of current year — — — Additions for tax positions of prior years — 0.2 15.2 Reductions for tax positions of prior years — (6.4) (0.2) Reductions for settlements (2.1) (0.6) (3.1) Lapses in statute of limitations (0.7) (2.4) (1.9) Ending balance (1) $ 8.7 $ 11.5 $ 20.6 (1) At December 31, 2022 and 2021, $8.7 million and $11.3 million, respectively, of the balance is included in the Liability for uncertain tax positions in Other liabilities, with $0.2 million at December 31, 2021 included as a reduction of Income taxes receivable in Receivables. We recognized total interest and penalties of $(1.0) million, $0.1 million and $(1.6) million as income tax expense or (benefit) in 2022, 2021 and 2020, respectively. At December 31, 2022 and 2021, accruals for interest and penalties were $2.2 million and $3.4 million, respectively, and are included in the Liability for uncertain tax positions in Other liabilities. As of December 31, 2022 and 2021, we had unrecognized tax benefits for uncertain tax positions, excluding accrued interest and penalties, of $8.7 million and $11.5 million, respectively, all of which if recognized would affect the effective tax rate. It is reasonably possible that there could be a change in the amount of our unrecognized tax benefits within the next 12 months due to activities of the Internal Revenue Service or other taxing authorities, including proposed assessments of additional tax, possible settlement of audit issues, or the expiration of applicable statutes of limitations. Undistributed Foreign Earnings and Non-U.S. Jurisdictions As of December 31, 2022, we have recognized a deferred tax liability of $0.7 million for foreign subsidiary undistributed earnings. We do not consider our foreign subsidiary undistributed earnings to be indefinitely invested outside the U.S. |
Basic and Diluted Earnings (Los
Basic and Diluted Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings (Loss) per Share | Note 20 — Basic and Diluted Earnings (Loss) per Share Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the year. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Ocwen by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding restricted stock awards, stock options and warrants as determined using the treasury stock method. For 2020, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss. Years Ended December 31, 2022 2021 2020 Basic earnings (loss) per share Net income (loss) $ 25.7 $ 18.1 $ (40.2) Weighted average shares of common stock outstanding 8,647,399 9,021,975 8,748,725 Basic earnings (loss) per share $ 2.97 $ 2.00 $ (4.59) Diluted earnings (loss) per share Net income (loss) $ 25.7 $ 18.1 $ (40.2) Weighted average shares of common stock 8,647,399 9,021,975 8,748,725 Effect of dilutive elements Contingent issuance of common stock — 38,685 — Common stock warrants 158,542 152,208 — Stock option awards 18 60 — Common stock awards 191,347 169,539 — Dilutive weighted average shares of common stock 8,997,306 9,382,467 8,748,725 Diluted earnings (loss) per share $ 2.85 $ 1.93 $ (4.59) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 222,602 143,593 199,079 Market-based (2) 62,867 87,509 125,395 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. |
Employee Compensation and Benef
Employee Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Compensation and Benefit Plans | Note 21 — Employee Compensation and Benefit Plans We maintain defined contribution plans to provide post-retirement benefits to our eligible employees and one non-contributory defined benefit pension plan which is frozen and covers certain eligible active and former employees. We also maintain additional incentive compensation plans for certain employees. We designed these plans to facilitate a pay-for-performance culture, further align the interests of our officers and key employees with the interests of our shareholders and to assist in attracting and retaining employees vital to our long-term success. These plans are summarized below. Defined Contribution Savings Plans We sponsor defined contribution savings plans for eligible employees in the U.S (401(k) plans) and India (Provident Fund). Contributions of participating employees to the plans are matched on the basis specified by these plans. For the 401(k) plans, we match 50% of the first 6% of each eligible participant’s contribution to the 401(k) plans with maximum aggregate matching of $9,150 for 2022. For the Provident Fund, both the employee and the employer are required to make minimum contributions to the fund at a predetermined rate (currently 12%) applied to a portion of the employee's salary. Employers are not required to make contributions beyond this minimum. Our contributions to these plans were $5.0 million, $5.1 million and $5.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. Defined Benefit Pension Plans As of December 31, 2022, Ocwen sponsors a non-contributory defined benefit pension plan for which benefits are based on an employee’s years of credited service and a percentage of final average compensation, or as otherwise described by the Plan. Two defined benefit pension plans were assumed as part of business acquisitions and merged in 2022. The Plans are frozen and only accrue additional benefits for a limited number of employees while no additional employees are eligible for participation in the plans. The following table shows the total change in the benefit obligation, plan assets and funded status for the pension plan(s): December 31, 2022 2021 Projected benefit obligation $ 40.9 $ 54.3 Fair value of plan assets 37.5 50.1 Unfunded status recognized in Other liabilities $ (3.4) $ (4.2) Amounts recognized in Accumulated other comprehensive loss $ 2.2 $ 2.0 The rate used to discount the projected benefit obligation of the PHH Plan increased from 2.75% in 2021 to 5.25% in 2022, resulting in a decrease of $11.7 million in the PHH Plan’s benefit obligation. The rate used to discount the projected benefit obligation of the Berkeley Plan increased from 2.80% to 5.51%. The net periodic benefit cost related to the defined benefit pension plans, included in Other expenses, was $(0.9) million, $(0.9) million and $(0.2) million for 2022, 2021 and 2020 respectively. As of December 31, 2022, future expected benefit payments to be made from the assets of the PHH Plan is $3.0 million, for each of the years ending December 31, 2023 and 2024, $3.0 million for year ending December 31, 2025, $3.0 million for each of the years ending December 31, 2026 and 2027. The expected benefit payments to be made for the subsequent five years ending December 31, 2028 through 2032 are $15.4 million. Ocwen contributes to the defined benefit pension plans amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws as well as additional amounts at their discretion. Our contributions to the defined benefit pension plans were $0.1 million, $1.0 million and $2.1 million for 2022, 2021 and 2020, respectively. Gratuity Plan In accordance with India law, OFSPL provides for a defined benefit retirement plan (Gratuity Plan) covering all of its employees in India. The Gratuity Plan provides a lump-sum payment to vested employees at retirement or termination of employment based upon the respective employee’s salary and years of employment. OFSPL provides for the gratuity benefit through actuarially determined valuations. The following table shows the total change in the benefit obligation, plan assets and funded status for the Gratuity Plan: December 31, 2022 2021 Benefit obligation $ 5.9 $ 6.3 Fair value of plan assets — — Unfunded status recognized in Other liabilities $ (5.9) $ (6.3) During the years ended December 31, 2022, 2021 and 2020, benefits of $0.7 million, $0.8 million, and $0.8 million were paid by OFSPL. As of December 31, 2022, future expected benefit payments to be made from the assets of the Gratuity Plan, which reflect expected future service, is $1.0 million, $0.9 million, $0.8 million, $0.7 million and $0.7 million for the years ending December 31, 2023, 2024, 2025, 2026 and 2027, respectively. The expected benefit payments to be made for the subsequent five years ending December 31, 2028 through 2032 are $2.5 million. Annual Incentive Plan The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan and the 2021 Equity Incentive Plan (the 2021 Equity Plan) are our primary incentive compensation plans for executives, management and other eligible employees. Previously issued equity awards remain outstanding under the 2017 Performance Incentive Plan (the 2017 Equity Plan) and the 2007 Equity Incentive Plan (the 2007 Equity Plan). Under the terms of these plans, participants can earn cash and equity-based awards as determined by the Compensation and Human Capital Committee of the Board of Directors (the Committee). The awards are based on objective and subjective performance criteria established by the Committee. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. We recognized $13.1 million, $23.6 million and $25.7 million of compensation expense during 2022, 2021 and 2020, respectively, related to annual incentive compensation awarded in cash. The 2007 Equity Plan, the 2017 Equity Plan and the 2021 Equity Incentive Plan authorize the grant of stock options, restricted stock, stock units or other equity-based awards, including cash-settled awards, to employees. Effective with the approval of the 2021 Equity Plan by Ocwen shareholders on May 25, 2021, no new awards have been, or will be, granted under the 2017 Equity Plan. The number of remaining shares available for award grants under the 2017 Equity Plan became available for award grants under the 2021 Equity Incentive Plan effective upon shareholder approval. At December 31, 2022, there were 404,693 shares of common stock remaining available for future issuance under these plans. Equity Awards Outstanding equity awards granted under the 2007 Equity Plan, the 2017 Equity Plan and 2021 Equity Incentive Plan had the following characteristics in common: Type of Award Percent of Total Equity Award Vesting Period 2014 Awards: Options: Servicing Condition - Time-based 25 % Ratably over four years (25% on each of the four anniversaries of the grant date) Market Condition: Market performance-based 50 Over three years beginning with 25% vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Extraordinary market performance-based 25 Over three years beginning with 25% vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Total Award 100 % 2015 - 2022 Awards: Options: Service Condition - Time-based 1 % Ratably over four years (25% vesting on each of the first four anniversaries of the grant date.) Service Condition - Time-based 4 Ratably over three years (one-third vesting on each of the first three anniversaries of the grant date). Stock Units: Service Condition - Time-based 35 Ratably over three years with one-third vesting on each of the first three anniversaries of the grant date. Service Condition - Time-based 8 Ratably over four years with 25% vesting on each of the first four anniversaries of the grant date. Market Condition: Time-based vesting schedule and Market performance-based vesting date 52 Cliff-vest 100% after three years. Vesting of units credited based on Total Shareholder Return (TSR) for any performance period is subject to continued service through the third anniversary of the grant. There is no interim or ratable vesting. The number of performance-based awards that will vest is determined by Ocwen’s TSR, either absolute or relative to a performance peer group, during each performance period. Total Award 100 % The contractual term of all options granted is ten years from the grant date, except where employment terminates by reason of death, disability or retirement, in which case, the agreement may provide for an earlier termination of the options. The terms of the market-based options do not include a retirement provision. Stock units have a three-year or four-year term. All our market-based stock units have a three-year term and if the market conditions are not met by the third anniversary of the award of stock units, those units terminate on that date. Years Ended December 31, Stock Options 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 114,658 $ 281.89 124,866 $ 274.30 131,962 $ 282.30 Granted — — — — — — Exercised — — — — — — Forfeited / Expired (1) (75,501) 354.83 (10,208) 189.00 (7,096) 423.80 Outstanding at end of year (2)(3) 39,157 $ 141.27 114,658 $ 281.89 124,866 $ 274.30 Exercisable at end of year (2)(3)(4) 34,657 $ 94.46 108,754 $ 273.97 110,484 $ 283.08 (1) Includes 74,834 and 10,208 options which expired unexercised in 2022 and 2021, respectively, because their exercise price was greater than the market price of Ocwen’s stock. (2) At December 31, 2022, 4,500 options with a market condition for vesting based on an average common stock trading price of $501.75, had not met their performance criteria. Outstanding and exercisable stock options at December 31, 2022 have a net aggregate intrinsic value of $0.0 million. A total of 4,500 market-based options were outstanding at December 31, 2022, of which none were exercisable. (3) At December 31, 2022, the weighted average remaining contractual term of options outstanding and options exercisable was 3.56 years and 3.84 years, respectively. (4) The total fair value of stock options that vested and became exercisable during 2022, 2021 and 2020, based on grant-date fair value, was $0.0 million, $0.3 million and $0.3 million, respectively. In 2019, Ocwen established a Long-Term Incentive (LTI) program in connection with changes made by the Committee to the compensation structure of Ocwen’s executives and management. The LTI program is designed to promote actions and decisions aligned with our strategic objectives and reward our executives and other program participants for long-term value creation for our shareholders in a manner that is consistent with our pay-for-performance philosophy. The program includes both a time-vesting component for retention purposes and a performance component to align with pay-for-performance objectives, using TSR as the performance metric. For awards granted during 2020, 2021 and 2022, market-based performance is measured based on TSR relative to performance peer groups. The LTI awards are granted under the 2021 Equity Incentive Plan and 2017 Equity Plan. The CEO's PRSU award granted in 2021 under the LTI contains a provision that will allow Ocwen to settle a portion of the units in cash in the unlikely event of above-target market-based performance levels resulting in a shortfall of shares available in the equity plan. This will only occur if market-based performance is significantly above target. The hybrid awards granted to certain Ocwen executives contain a provision that will allow Ocwen to settle some or all share units in shares rather than cash, subject to the availability of shares for issuance under the 2017 Equity Plan. We determined that in the case of the hybrid awards, Ocwen has sole discretion in the choice of settlement in shares or cash and it has both the intent and the ability to deliver the shares, therefore we accounted for the hybrid awards as equity-settled awards. Of the awards granted under the LTI program in 2022, 2021 and 2020, 50% were performance-based with a market condition and the remaining were time-based. The time-based awards vest equally on the first, second and third anniversaries of the award grant date if the continued employment condition is met. The recurring annual performance-based awards cliff-vest 100% after three years subject to meeting the market-based performance conditions and continuing employment. Because the cash-settled awards must be settled in cash, they are classified as liabilities (Other liabilities) in the consolidated balance sheets and remeasured at fair value at each reporting date with adjustments recorded as Compensation expense in the consolidated statements of operations. Stock Units - Equity-Classified Awards Years Ended December 31, 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Unvested at beginning of year 416,226 $ 25.97 261,647 $ 21.74 177,275 $ 39.45 Granted (1) (2) 373,614 28.43 236,593 33.50 150,000 8.78 Vested (3)(4) (109,077) 23.11 (71,855) 33.43 (62,954) 42.25 Forfeited/Cancelled (5) (76,874) 32.42 (10,159) 39.74 (2,674) 26.85 Unvested at end of year (6)(7) 603,889 $ 27.19 416,226 $ 25.97 261,647 $ 21.74 (1) Stock units granted in 2022, 2021 and 2020 include 147,058, 115,173 and 150,000 units, respectively, granted to Ocwen’s CEO under the long-term incentive (LTI) program. Stock units granted in 2022 and 2021 include 13,091 and 4,623 units, respectively, added for performance factor related to awards under LTI program. Stock units granted in 2022 includes 436 units reclassified from liability-classified awards. (2) Includes 57,187 one-time equity settled awards granted in 2022 to certain employees in connection with their employment, of which 51,546 vest ratably over four years (25% vesting on each of the first four anniversaries of the grant date) and 5,641 awards vest ratably over four years (one-third vesting on each of the first three anniversaries of the grant date). Stock units granted in 2021 includes 117,233 hybrid awards granted to certain Ocwen executives. (3) The total intrinsic value of stock units vested, which is defined as the weighted market value of the stock on the date of vesting, was $2.2 million, $2.1 million and $1.0 million for 2022, 2021 and 2020, respectively. (4) The total fair value of the stock units that vested during 2022, 2021 and 2020, based on grant-date fair value, was $2.5 million, $2.4 million and $2.7 million, respectively. (5) Stock units forfeited/cancelled in 2022 includes 42,885 units forfeited due to market-based performance under the LTI program. (6) Excluding the 327,603 market-based stock awards that have not met their market-based performance criteria (and time-vesting requirements, where applicable), the net aggregate intrinsic value of stock awards outstanding at December 31, 2022 was $8.5 million. At December 31, 2022, the market-based performance for 327,603 stock units is measured based on TSR relative to Ocwen’s compensation peer group TSR over the four performance periods. (7) At December 31, 2022, the weighted average remaining contractual term of share units outstanding was 2.1 years. Years Ended December 31, Stock Units - Liability-Classified Awards 2022 2021 2020 Unvested units at beginning of year 758,626 728,373 243,441 Granted (1) 246,018 233,056 601,787 Vested (191,728) (105,974) (21,909) Forfeited/Cancelled (2) (204,158) (111,507) (94,954) Other (3) 11,801 14,678 8 Unvested units at end of year 620,559 758,626 728,373 (1) Awards granted in 2020 include 57,891 one-time time-based long-term incentive awards to certain Ocwen executives with a vesting period of 18 months from the date of grant, subject to continued employment and other conditions. (2) Units forfeited/cancelled in 2022, 2021 and 2020 include 105,552, 35,000 and 36,898 units, respectively, forfeited due to market-based performance under the LTI program. (3) Includes 12,204 and 14,681 units added during 2022 and 2021, respectively, as a result of market-based performance, and 8 shares added in 2020 representing the conversion of fractional stock units on the reverse stock split. The number of performance-based awards that will vest under the LTI program awards for 2022, 2021 and 2020 is determined by Ocwen’s TSR relative to a performance peer group (15-18 companies selected by the Committee, unique group for each grant year) during each performance period. Median (50 th percentile) TSR performance will earn the target number of performance-based awards. The awards use four distinct weighted performance periods to measure overall market-based performance – for example for 2022, the period would be three annual periods ending March 31, 2023, 2024, 2025 and one three-year period ending March 31, 2025. Note that the awards do not vest at the end of each performance period. Vesting of units credited based on the TSR for any performance period is subject to continued service through the third anniversary of the grant date. There is no interim or ratable vesting. For all performance-based awards, the number of units earned depends on the level of market-based performance achieved (Threshold = 50%; Target = 100%; Maximum = 200%, with results between levels interpolated). No units will be awarded for performance below the Threshold level. TSR is calculated using the average closing stock prices during the 30 trading days up to and including the beginning and end date of each performance period. Compensation expense related to all stock-based awards is initially measured at fair value on the grant date using an appropriate valuation model based on the vesting conditions of the awards. Awards classified as liabilities are subsequently remeasured at fair value at each reporting date, as described above. The fair value of the time-based option awards was determined using the Black-Scholes options pricing model. Stock unit awards with only a service condition are valued at their intrinsic value, which is the market value of the stock on the date of the award. The fair value of stock unit awards with both a service condition and a market-based vesting condition is based on the output of a Monte Carlo simulation. The following assumptions were used to value awards: Monte Carlo 2022 2021 2020 Risk-free interest rate 1.31% - 4.66% 0.01% - 0.77% 0.08% – 0.29% Expected stock price volatility (1) 93.8% - 94.7% 95% - 96.4% 88.7% - 94.1% Expected dividend yield —% —% —% Expected life (in years) (2) (2) (2) Fair value $26.53 - $50.99 $36.09 - $62.03 $24.36 - $38.75 (1) We generally estimate volatility based on the historical volatility of Ocwen’s common stock over the most recent period that corresponds with the estimated expected life of the option. For awards valued using a Monte Carlo simulation, volatility is computed as a blend of historical volatility based on daily stock price returns and implied volatility based on traded options on Ocwen’s common stock. (2) The stock units that contain both a service condition and a market-based condition are valued using the Monte Carlo simulation. The expected term is derived from the output of the simulation and represents the expected time to meet the market-based vesting condition. For equity awards with both service and market conditions, the requisite service period is the longer of the derived or explicit service period. In this case, the explicit service condition (vesting period) is the requisite service period, and the graded vesting method is used for expense recognition. The following table summarizes Ocwen's stock-based compensation expense included as a component of Compensation and benefits expense in the consolidated statements of operations: Years Ended December 31, 2022 2021 2020 Compensation expense - Equity-classified awards Stock option awards $ (0.1) $ 0.3 $ (0.4) Stock awards 4.7 4.5 2.8 $ 4.6 $ 4.7 $ 2.4 Compensation expense - Liability-classified awards $ 2.2 $ 15.1 $ 5.6 Excess tax benefit (tax deficiency) related to share-based awards $ 0.4 $ 0.5 $ (0.4) |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Note 22 — Business Segment Reporting Our business segments reflect the internal reporting that we use to evaluate our operating and financial performance and to assess the allocation of our resources. A brief description of our current reportable business segments is as follows: Servicing. This segment is primarily comprised of our residential mortgage servicing business and accounted for 86% of our total revenues in 2022. We provide residential and commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. We provide these services either because we purchased the MSRs from the owner of the mortgage, retained the MSRs on the sale or securitization of residential mortgage loans or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Our residential servicing portfolio includes both forward and reverse conventional, government-insured and non-Agency mortgage loans, including the reverse mortgage loans classified as loans held for investment on our balance sheet. Non-Agency loans include subprime loans, which represent residential loans that generally did not qualify under GSE guidelines or have subsequently become delinquent. The Servicing segment also includes the earnings of our equity-method investment in MAV Canopy. Originations. The Originations segment purchases and originates conventional and government-insured residential forward and reverse mortgage loans through multiple channels. The loans are typically sold shortly after origination on a servicing retained basis. We originate forward mortgage loans directly with customers (consumer direct channel) as well as through correspondent lending arrangements. We originate reverse mortgage loans in all three channels through our correspondent lending arrangements, broker relationships (wholesale) and retail channels. In addition to our originated MSRs, we acquire MSRs through multiple channels, including flow purchase agreements, the Agency Cash Window programs and bulk MSR purchases. Corporate Items and Other. Corporate Items and Other includes revenues and expenses of corporate support services, CR Limited (CRL), our wholly-owned captive reinsurance subsidiary, inactive entities, and our other business activities that are currently individually insignificant, revenues and expenses that are not directly related to other reportable segments, interest income on short-term investments of cash, gain or loss on extinguishment of debt, interest expense on unallocated corporate debt and foreign currency exchange gains or losses. Corporate Items and Other also includes severance, retention, facility-related and other expenses incurred in 2020 related to our cost re-engineering initiatives. Our cash balances are included in Corporate Items and Other. CRL provides re-insurance related to coverage on foreclosed real estate properties owned or serviced by us. Revenues and expenses directly associated with each respective business segments are included in determining its results of operations. We allocate certain expenses incurred by corporate support services to each business segment using various methodologies intended to approximate the utilization of such services, primarily based on time studies, personnel volumes and service consumption levels. Support service costs not allocated to the Servicing and Originations segments are retained in the Corporate Items and Other segment along with certain other costs including certain litigation and settlement related expenses or recoveries, costs related to our re-engineering initiatives, and other costs related to operating as a public company. Interest expense on direct asset-backed financings are recorded in the respective Servicing and Originations segments. We allocate interest expense on corporate debt from Corporate Items and Other to the business segments based on relative financing requirements. Effective in the first quarter of 2022, we no longer allocate interest expense on the OFC Senior Secured Notes to the business segments. Interest expense allocated to the business segments for prior periods has been revised to conform to the current period presentation. The interest expense allocation adjustment for 2021 is $24.4 million ($23.7 million Servicing and $0.7 million Originations). No such interest expense was recorded in 2020 as the OFC Senior Secured Notes were issued in March 2021. As a result of our risk management strategy to hedge the interest rate risk of our net MSR portfolio, the fair value changes of third-party derivative instruments were reported within MSR valuation adjustments, net. For management segment reporting purposes, we established inter-segment derivative instruments to transfer the risks and allocate the associated fair value changes of derivatives between Servicing and Originations, and specifically between MSR valuation adjustments, net and Gain on loans held for sale, net (Gain/loss on economic hedge instruments). In the second quarter of 2021, we began separately hedging our MSR portfolio and pipeline. However, we may, from time to time, continue to establish intersegment derivative instruments between our MSR and pipeline hedging strategies to optimize the use of third-party derivatives. The inter-segment derivative fair value changes are eliminated in the consolidated financial statements in the Corporate Eliminations column in the table below. Financial information for our segments is as follows: Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2022 Servicing and subservicing fees $ 860.5 $ 2.1 $ — $ — $ 862.6 Gain on reverse loans held for investment and HMBS-related borrowings, net (25.1) 61.2 — — 36.1 Gain (loss) on loans held for sale, net (1) (15.1) 52.9 — (15.7) 22.0 Other revenue, net 1.4 24.9 6.9 — 33.2 Revenue 821.7 141.1 6.9 (15.7) 953.9 MSR valuation adjustments, net (1) (36.0) 9.9 — 15.7 (10.4) Operating expenses (2) 314.1 148.5 69.8 — 532.4 Other income (expense): Interest income 12.9 31.2 1.5 — 45.6 Interest expense (114.8) (29.0) (42.2) — (186.0) Pledged MSR liability expense (255.0) — — — (255.0) Gain on extinguishment of debt — — 0.9 — 0.9 Equity in earnings of unconsolidated entity 18.5 — — — 18.5 Other, net (7.3) (1.8) (1.1) — (10.2) Other income (expense), net (345.7) 0.4 (40.9) — (386.2) Income (loss) before income taxes $ 125.9 $ 2.9 $ (103.8) $ — $ 24.9 Year Ended December 31, 2021 Servicing and subservicing fees $ 773.5 $ 8.5 $ — $ — $ 781.9 Gain on reverse loans held for investment and HMBS-related borrowings, net (2.3) 82.0 — — 79.7 Gain on loans held for sale, net (1) 46.6 124.5 — (25.3) 145.8 Other revenue, net 1.7 34.9 6.2 — 42.7 Revenue 819.4 249.9 6.2 (25.3) 1,050.1 MSR valuation adjustments, net (1) (4) (143.4) 19.6 — 25.3 (98.5) Operating expenses (2) 342.4 172.8 94.1 — 609.3 Other income (expense): Interest income 8.2 17.7 0.5 — 26.4 Interest expense (80.8) (22.3) (40.9) — (144.0) Pledged MSR liability expense (221.3) — — — (221.3) Loss on extinguishment of debt (15.5) (15.5) Equity in earnings of unconsolidated entity 3.6 3.6 Other, net 5.2 (2.3) 1.2 — 4.1 Other expense, net (285.1) (6.9) (54.7) — (346.7) Income (loss) before income taxes $ 48.5 $ 89.8 $ (142.6) $ — $ (4.4) Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2020 Servicing and subservicing fees $ 731.2 $ 6.0 $ 0.1 $ — $ 737.3 Gain on reverse loans held for investment and HMBS-related borrowings, net 7.6 53.1 — — 60.7 Gain on loans held for sale, net (1) 14.7 105.2 — 17.4 137.2 Other revenue, net 4.2 14.9 6.5 — 25.6 Revenue 757.7 179.3 6.6 17.4 960.9 MSR valuation adjustments, net (1) (159.5) 41.7 — (17.4) (135.2) Operating expenses (2) (3) 331.9 114.4 129.5 — 575.7 Other income (expense): Interest income 7.1 7.0 1.9 — 16.0 Interest expense (90.7) (9.8) (8.9) — (109.4) Pledged MSR liability expense (269.1) — — — (269.1) Other, net 10.8 0.4 (4.4) — 6.7 Other expense, net (342.0) (2.5) (11.3) — (355.7) Income (loss) before income taxes $ (75.7) $ 104.2 $ (134.2) $ — $ (105.7) (1) Corporate Eliminations for 2022, 2021 and 2020 includes inter-segment derivatives eliminations of $15.7 million, $25.3 million and $17.4 million reported as Gain on loans held for sale, net (2) Included in Professional services expense for 2022 are reimbursements received from mortgage loan investors related to prior years legal expenses and payments received following resolution of legacy litigation matters of $27.6 million ($19.8 million Servicing and $7.8 million Corporate Items and Other). Professional services expense for 2021 (Servicing) includes $2.5 million reimbursements received from mortgage loan investors related to prior years legal expenses, and 2020 (Corporate Items and Other) includes an $8.0 million recovery of prior expenses received from a mortgage insurer. (3) In 2020, we executed certain cost re-engineering initiatives to generate further cost savings, some of which qualify as restructuring charges under GAAP, including the partial abandonment of certain leased properties and additional severance costs. As a result of these initiatives, we accelerated the depreciation of facility lease ROU assets and leasehold improvements by $3.3 million, recorded $6.3 million of facility and other related exit costs, and accrued $3.4 million of employee severance costs. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense (4) Effective in 2022, we recognize revaluation gains or losses on those Fannie Mae MSRs purchased through the Agency Cash Window Program that are sold to MAV within the Servicing segment (historically reported in the Originations segment). $5.6 million MSR valuation adjustments, net have been reclassified in 2021 from the Originations segment to the Servicing segment to conform to the current segment presentation. Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated December 31, 2022 $ 11,535.0 $ 570.5 $ 293.7 $ 12,399.2 December 31, 2021 10,999.2 823.5 324.4 12,147.1 December 31, 2020 9,847.6 379.2 424.3 10,651.1 Depreciation and Amortization Expense Servicing Originations Corporate Items and Other Business Segments Consolidated Year Ended December 31, 2022: Depreciation expense $ 0.9 $ 0.4 $ 9.2 $ 10.5 Amortization of debt discount and issuance costs 0.8 — 9.3 10.1 Amortization of intangible assets 4.3 — — 4.3 Year Ended December 31, 2021: Depreciation expense $ 0.7 $ 0.2 $ 9.3 $ 10.3 Amortization of debt discount and issuance costs 0.7 — 7.1 7.8 Amortization of intangible assets 0.7 — — 0.7 Year Ended December 31, 2020: Depreciation expense $ 0.9 $ 0.1 $ 18.1 $ 19.1 Amortization of debt discount and issuance costs 0.5 — 6.5 7.0 |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Regulatory Requirements | Note 23 — Regulatory Requirements Our business is subject to extensive regulation and supervision by federal, state, local and foreign governmental authorities, including the Consumer Financial Protection Bureau (CFPB), HUD, the SEC and various state agencies that license our servicing and lending activities. Accordingly, we are regularly subject to examinations, inquiries and requests, including civil investigative demands and subpoenas. The GSEs and their conservator, the Federal Housing Finance Agency (FHFA), Ginnie Mae, the United States Treasury Department, various investors, non-Agency securitization trustees and others also subject us to periodic reviews and audits. We must comply with a large number of federal, state and local consumer protection and other laws and regulations, including, among others, the CARES Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Telephone Consumer Protection Act (TCPA), the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act (FDCPA), the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, as well as individual state and local laws, and federal and local bankruptcy rules. These laws and regulations apply to all facets of our business, including, but not limited to, licensing, loan originations, consumer disclosures, default servicing and collections, foreclosure, filing of claims, registration of vacant or foreclosed properties, handling of escrow accounts, payment application, interest rate adjustments, assessment of fees, loss mitigation, use of credit reports, handling of unclaimed property, safeguarding of non-public personally identifiable information about our customers, and the ability of our employees to work remotely. These complex requirements can and do change as laws and regulations are enacted, promulgated, amended, interpreted and enforced. The general trend among federal, state and local legislative bodies and regulatory agencies as well as state attorneys general has been toward increasing laws, regulations, investigative proceedings and enforcement actions with regard to residential real estate lenders and servicers, which could increase the possibility of adverse regulatory action against us. In addition, a number of foreign laws and regulations apply to our operations outside of the U.S., including laws and regulations that govern licensing, privacy, employment, safety, payroll and other taxes and insurance and laws and regulations that govern the creation, continuation and the winding up of companies as well as the relationships between shareholders, our corporate entities, the public and the government in these countries. Our foreign subsidiaries are subject to inquiries and examinations from foreign governmental regulators in the countries in which we operate outside of the U.S. Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements and satisfying minimum net worth requirements and non-financial requirements such as satisfactory completion of examinations relating to the licensee’s compliance with applicable laws and regulations. We are also subject to seller/servicer obligations under agreements with the GSEs, HUD, FHA, VA and Ginnie Mae, including capital requirements related to tangible net worth, as defined by the applicable agency, an obligation to provide audited financial statements within 90 days of the applicable entity’s fiscal year end as well as extensive requirements regarding servicing, selling and other matters. We believe our licensed entities were in compliance with all of their minimum net worth requirements at December 31, 2022. Our non-Agency servicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have a material adverse impact on our business. The most restrictive of the various net worth requirements for licensing and seller/servicer obligations referenced above is based on the UPB of assets serviced by PMC. Under the applicable formula, the required minimum net worth was $372.4 million at December 31, 2022. PMC’s adjusted net worth was $589.4 million at December 31, 2022. The most restrictive of the various liquidity requirements for licensing and seller/servicer obligations referenced above pertains to PMC and was $41.4 million at December 31, 2022. PMC’s liquid assets were $181.5 million at December 31, 2022. On August 17, 2022, the FHFA and Ginnie Mae announced updated minimum financial eligibility requirements for GSE seller/servicers and Ginnie Mae issuers. The updated minimum financial eligibility requirements modify the definitions of tangible net worth and eligible liquidity, modify their minimum standard measurement and include a new risk-based capital ratio, among other changes. On September 21, 2022, at the direction of the FHFA, Fannie Mae and Freddie Mac announced similar revisions to minimum financial eligibility requirements. The majority of the updated requirements are effective on September 30, 2023. On October 21, 2022, Ginnie Mae extended the compliance date for its risk-based capital requirements to December 31, 2024. We believe PMC would be in compliance with the updated requirements if the updated requirements were in effect as of December 31, 2022, except for the new risk-based capital requirement. We are currently evaluating the potential impacts of these updated requirements, the costs and benefits of achieving compliance, and possible courses of action involving external investor solutions, structural solutions or exiting Ginnie Mae forward originations and owned servicing activities. If we are unable to identify and execute a cost-effective solution that allows us to continue these businesses and are unable to replace the lost income from these activities, or if we misjudge the magnitude of the costs and benefits and their impacts on our business, our financial results could be negatively impacted. As of December 31, 2022, our forward owned servicing portfolio included 83,282 government-insured loans with a UPB of $12.7 billion, 10% of our total forward owned MSRs or 4% of our total UPB serviced and subserviced. In addition, during 2022, we originated and purchased a total of 6,148 forward government-insured loans with a UPB of $2.0 billion, 11% of our total Originations UPB. New York Department of Financial Services (NY DFS). We operate pursuant to certain regulatory requirements with the NY DFS, including obligations arising under a consent order entered into in March 2017 (the NY Consent Order) and the terms of the NY DFS’ conditional approval in September 2018 of our acquisition of PHH. The conditional approval includes reporting obligations and record retention and other requirements relating to the transfer of loans collateralized by New York property (New York loans) onto our servicing system, the Black Knight Financial Services, Inc. (Black Knight) LoanSphere MSP® servicing system (Black Knight MSP), and certain requirements with respect to the evaluation and supervision of management of both Ocwen and PMC. In addition, we were prohibited from boarding any additional loans onto the REALServicing system and we were required to transfer all New York loans off the REALServicing system by April 30, 2020. The conditional approval also restricts our ability to acquire MSRs with respect to New York loans, so that Ocwen may not increase its aggregate portfolio of New York loans serviced or subserviced by Ocwen by more than 2% per year. This restriction will remain in place until the NY DFS determines that all loans serviced on the REALServicing system have been successfully migrated to Black Knight MSP and that Ocwen has developed a satisfactory infrastructure to board sizable portfolios of MSRs. We transferred all loans onto Black Knight MSP in 2019 and no longer service any loans on the REALServicing system. We believe we have complied with all terms of the PHH acquisition conditional approval to date. We continue to work with the NY DFS to address matters they raise with us as well as to fulfill our commitments under the NY Consent Order and PHH acquisition conditional approval. California Department of Financial Protection and Innovation (CA DFPI). In January 2015 and February 2017, Ocwen Loan Servicing, LLC (OLS) entered into consent orders with the CA DFPI (formerly known as the California Department of Business Oversight) relating to our alleged failure to produce certain information and documents during a routine licensing examination and relating to alleged servicing practices. We have completed all of our obligations under each of these consent orders. We also recently entered into a consent order to resolve a legacy OLS matter with the CA DFPI primarily addressing OLS’s post-boarding process related to loan payment terms. The Consent Order provides for a $2.5 million settlement with the CA DFPI (that is fully accrued for at December 31, 2022) with the waiver of certain late fees, a loss mitigation campaign, and other reliefs. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 24 — Commitments Servicer Advance Obligations In the normal course of business as servicer or master servicer, we are required to advance loan principal and interest payments (P&I), property taxes and insurance premiums (T&I) on behalf of the borrower, if delinquent or delinquent and under a forbearance plan. We also advance legal fees, inspection, maintenance, and preservation costs (Corporate advances) on properties that are in default or have been foreclosed. Our obligations to make these advances are governed by servicing agreements or guides, depending on investors or guarantor. Advances made by us as primary servicer are generally recovered from the borrower or the mortgage loan investor. For PLS loans, generally, we may stop advancing for P&I once future advances are deemed non-recoverable from the net proceeds of the property, although we are generally obligated to continue T&I and Corporate advances until the loan is brought current or until completion of a foreclosure and sale of the REO, in which case, we generally recover our advances from the net proceeds of the property or the pool level proceeds, i.e., generally after the completion of the foreclosure and sale of the REO. For loans in forbearance, Ocwen provides monthly payment deferrals throughout the forbearance period which advance the due date and move the resulting missed payments to or near the loan’s maturity as a non-interest bearing balance. As such, Ocwen does not expect to be out of pocket cash for P&I and T&I advances for any more than one month for eligible PLS loans in forbearance that were not significantly delinquent at the time forbearance was applied to the account. For Ginnie Mae loans, we are required to make advances for the life of the loan without regard to whether we will be able to recover those payments from cure, liquidation proceeds, insurance proceeds, or late payments. We may stop advancing P&I by purchasing loans out of the pool when they are more than 90 days delinquent. To the extent there are excess funds in the custodial accounts, we are permitted to borrow from these amounts if P&I advances are required for our P&I remittance. We are also required to advance both T&I and Corporate advances until cure or liquidation. For loans in forbearance, we advance P&I while the forbearance plan is active. Reimbursement of such P&I advance is expected after the forbearance period ends, through loan resolution, cure or liquidation. For GSE loans, we are required to advance P&I until the borrower is 120 days delinquent for Fannie Mae loans, but advance only interest payments for the same length of delinquency for Freddie Mac loans. For Freddie Mac loans, servicers may submit claims for T&I and Corporate advances upon borrower resolution or liquidation. For Fannie Mae loans, we can submit reimbursement claims for certain T&I and Corporate advances after incurring the expense. T&I and Corporate advancing on GSE loans continues until the completion of the foreclosure sale. For GSE loans in forbearance, once we have advanced four months of missed payments on a loan, we have no further obligation to advance scheduled payments as the loan will be moved into an “Actual/Actual” remittance status. Reimbursement of such P&I advance is expected after the forbearance period ends, through loan resolution, cure or liquidation. We are required to make T&I and Corporate advances for loans in forbearance until the loan is brought current or until completion of a foreclosure, but we can submit reimbursement claims for certain T&I and Corporate advances after incurring the expense on Fannie Mae loans. Freddie Mac requires servicers to wait until borrower resolution or liquidation to submit claims for T&I and Corporate advances. As master servicer, we collect mortgage payments from primary servicers and distribute the funds to investors in the mortgage-backed securities. To the extent the primary servicer does not advance the scheduled principal and interest, as master servicer we are responsible for advancing the shortfall, subject to certain limitations. As subservicer, we are required to make P&I, T&I and Corporate advances on behalf of servicers following the servicing agreements or guides. Servicers are generally required to reimburse us within 30 days of our advancing under the terms of the subservicing agreements. We are generally reimbursed by Rithm the same day we fund P&I advances, or within no more than three days for servicing advances and certain P&I advances under the Ocwen agreements. Rithm is obligated to fund new servicing advances with respect to the MSRs underlying the Rights to MSRs (RMSR), pursuant to the 2017 Agreements and New RMSR Agreements. Rithm has the responsibility to fund advances for loans where they own the MSR, i.e., are the servicer of record. We are dependent upon Rithm for funding the servicing advance obligations for Rights to MSRs where we are the servicer of record. As the servicer of record, we are contractually required under our servicing agreements to make certain servicing advances even if Rithm does not perform its contractual obligations to fund those advances. Rithm currently uses advance financing facilities in order to fund a substantial portion of the servicing advances that they are contractually obligated to purchase pursuant to our agreements with them. If Rithm were unable to meet its advance funding obligations, we would remain obligated to meet any future advance financing obligations with respect to the loans underlying these Rights to MSRs, which could materially and adversely affect our liquidity, financial condition, results of operations and servicing business. Unfunded Lending Commitments We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $1.8 billion and $1.5 billion at December 31, 2022 and 2021, respectively. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. In 2022, we funded $246.1 million out of the $1.5 billion borrowing capacity as of December 31, 2021. In 2021, we funded $226.6 million out of the $2.0 billion borrowing capacity as of December 31, 2020. We also had short-term commitments to lend $540.1 million and $13.8 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at December 31, 2022. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, referred to as warehouse lines. HMBS Issuer Obligations As an HMBS issuer, we assume certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of a reverse mortgage loan is equal to or greater than 98% of the maximum claim amount (MCA repurchases). Active repurchased loans or buyouts are assigned to HUD and payment is received from HUD, typically within 90 days of repurchase. HUD reimburses us for the outstanding principal balance on the loan up to the maximum claim amount. We bear the risk of exposure if the amount of the outstanding principal balance on a loan exceeds the maximum claim amount. Inactive repurchased loans (the borrower is deceased, no longer occupies the property or is delinquent on tax and insurance payments) are generally liquidated through foreclosure and subsequent sale of REO, with a claim filed with HUD for recoverable remaining principal and advance balances. The recovery timeline for inactive repurchased loans depends on various factors, including foreclosure status at the time of repurchase, state-level foreclosure timelines, and the post-foreclosure REO liquidation timeline. We have no such exposure with our subservicing portfolio as our subservicing clients bear the financial obligation and risks associated with purchasing loans out of securitization pools. The timing and amount of our obligation with respect to MCA repurchases is uncertain as repurchase is dependent largely on circumstances outside of our control including the amount and timing of future draws and the status of the loan. MCA repurchases are expected to continue to increase due to the increased flow of HECMs and REO that are reaching 98% of their maximum claim amount. Activity with regard to HMBS repurchases is as follows: Year Ended December 31, 2022 Active Inactive Total Number Amount Number Amount Number Amount Beginning balance 138 $ 35.3 448 $ 93.8 586 $ 129.1 Additions 644 175.1 221 60.6 865 235.7 Recoveries, net (1) (531) (139.6) (199) (42.6) (730) (182.2) Transfers 13 (0.2) (13) 0.2 — — Changes in value — 0.1 — (4.3) — (4.2) Ending balance 264 $ 70.7 457 $ 107.7 721 $ 178.4 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. Active loan repurchases are classified as Receivables, as reimbursement from HUD is generally received within 60 days and are initially recorded at fair value. Inactive loan repurchases are classified as Loans held for sale and recorded at fair value. Loans are reclassified to REO in Other assets or Receivables as the loans move through the resolution process and permissible claims are submitted to HUD for reimbursement. Receivables are valued at net realizable value. REO is valued at the estimated value of the underlying property less cost to sell. Lease Commitments We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2029 exclusive of renewal option periods. At December 31, 2022, the weighted average remaining term of our leases was 4.3 years. A maturity analysis of our lease liability as of December 31, 2022 is summarized as follows: 2023 $ 5.1 2024 4.4 2025 3.6 2026 3.0 2027 2.3 Thereafter 1.1 19.6 Less: Adjustment to present value (1) (3.0) Total lease payments, net $ 16.6 (1) At December 31, 2022, the weighted average of the discount rate used to estimate the present value was 8.7% based on our incremental borrowing rate. Operating lease cost for 2022, 2021 and 2020 was $8.3 million, $8.8 million and $14.6 million, respectively. The operating lease cost for 2022, 2021 and 2020 includes $1.0 million, $1.6 million and $1.6 million, respectively, of variable lease expense. Restricted cash at December 31, 2022 and 2021 includes a secured deposit of $2.8 million and $23.2 million, respectively, as collateral for an irrevocable standby letter of credit issued in connection with the Mount Laurel facility lease that expired in the fourth quarter of 2022. As required by the terms of the lease amendment, we incurred $2.9 million for facility repairs and decommissioning charges in connection with the lease expiration in 2022. Client Concentration Our Servicing segment has exposure to concentration risk and client retention risk. As of December 31, 2022, our servicing portfolio included significant client relationship with Rithm (formerly NRZ) which represented 17% and 28% of our total servicing portfolio UPB and loan count, respectively, and approximately 68% of all delinquent loans that Ocwen services. Our Subservicing Agreements and Servicing Addendum with Rithm are in their Second Terms that end December 31, 2023. At the end of the Second Term, subject to notice by October 1, 2023, Rithm has the right to terminate the Subservicing Agreements and Servicing Addendum for convenience. If Rithm exercised its right to terminate all or some of the agreements for convenience at the end of the Second Term on December 31, 2023, we might need to right-size certain aspects of our servicing business as well as the related corporate support functions. The impacts to our consolidated statements of operations in connection with our Rithm agreements are disclosed in Note 8 — Other Financing Liabilities, at Fair Value. Receivables and Other liabilities recorded on our consolidated balance sheets are disclosed in Note 9 — Receivables and Note 14 — Other Liabilities, respectively. In addition, as of December 31, 2022, our servicing portfolio also included a significant client relationship with MAV which represented 17% and 12% of our total servicing portfolio UPB and loan count, respectively. While our servicing agreement with MAV is non-cancellable and provides us with exclusivity, MAV is permitted to sell the underlying MSR without Ocwen’s consent after May 3, 2024. See Note 11 — Investment in Equity Method Investee and Related Party Transactions. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 25 — Contingencies When we become aware of a matter involving uncertainty for which we may incur a loss, we assess the likelihood of any loss. If a loss contingency is probable and the amount of the loss can be reasonably estimated, we record an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. If a reasonable estimate of loss cannot be made, we do not accrue for any loss or disclose any estimate of exposure to potential loss even if the potential loss could be material and adverse to our business, reputation, financial condition and results of operations. An assessment regarding the ultimate outcome of any such matter involves judgments about future events, actions and circumstances that are inherently uncertain. The actual outcome could differ materially. Where we have retained external legal counsel or other professional advisers, such advisers assist us in making such assessments. Litigation In the ordinary course of business, we are a defendant in, or a party or potential party to, many threatened and pending legal proceedings, including proceedings brought by borrowers, regulatory agencies (discussed further under “Regulatory” below), current or former employees, those brought on behalf of various classes of claimants, and those brought derivatively on behalf of Ocwen against certain current or former officers and directors or others, and those brought under the False Claims Act by private citizens on behalf of the U.S. In addition, we may be a party or potential party to threatened or pending legal proceedings brought by fair-housing advocates, current and former commercial counterparties and market competitors, including, among others, claims related to the sale or purchase of loans, MSRs or other assets, and breach of contract actions, parties on whose behalf we service or serviced mortgage loans, parties who provide ancillary services including property preservation and other post-foreclosure related services, and parties who provide or provided consulting, subservicing, or other services to Ocwen. The majority of these proceedings are based on alleged violations of federal, state and local laws and regulations governing our mortgage servicing and lending activities, including, among others, the Dodd-Frank Act, the Gramm-Leach-Bliley Act, the FDCPA, the RESPA, the TILA, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the TCPA, the Equal Credit Opportunity Act, as well as individual state licensing and foreclosure laws, federal and local bankruptcy rules, federal and local tax regulations, and state deceptive trade practices laws. Such proceedings include wrongful foreclosure and eviction actions, bankruptcy violation actions, payment misapplication actions, allegations of wrongdoing in connection with lender-placed insurance and mortgage reinsurance arrangements, claims relating to our property preservation activities, claims related to REO management, claims relating to our written and telephonic communications with our borrowers such as claims under the TCPA and individual state laws, claims related to our payment, escrow and other processing operations, claims relating to fees imposed on borrowers relating to inspection fees, foreclosure attorneys’ fees, reinstatement fees, foreclosure registration fees, payment processing, payment facilitation or payment convenience fees, claims related to ancillary products marketed and sold to borrowers, claims related to loan modifications and loan assumptions, claims related to call recordings, claims regarding certifications of our legal compliance related to our participation in certain government programs, claims related to improper occupancy inspections, and claims related to untimely recording of mortgage satisfactions. In some of these proceedings, claims for substantial monetary damages are asserted against us. For example, we are currently a defendant in various matters alleging that (1) certain fees imposed on borrowers relating to payment processing, payment facilitation or payment convenience violate the FDCPA and similar state laws, (2) certain fees we assess on borrowers are improperly assessed and/or marked up improperly in violation of applicable state and federal law, (3) we breached fiduciary duties we purportedly owe to benefit plans due to the discretion we exercise in servicing certain securitized mortgage loans, (4) certain legacy mortgage reinsurance arrangements violated RESPA, and (5) we failed to subservice loans appropriately pursuant to subservicing and other agreements. In the future, we are likely to become subject to other private legal proceedings alleging failures to comply with applicable laws and regulations, including putative class actions, in the ordinary course of our business. In view of the inherent difficulty of predicting the outcome of any threatened or pending legal proceedings, particularly where the claimants seek very large or indeterminate damages, including punitive damages, or where the matters present novel legal theories or involve a large number of parties, we generally cannot predict what the eventual outcome of such proceedings will be, what the timing of the ultimate resolution will be, or what the eventual loss, if any, will be. Any material adverse resolution could materially and adversely affect our business, reputation, financial condition, liquidity and results of operations. Where we determine that a loss contingency is probable in connection with a pending or threatened legal proceeding and the amount of our loss can be reasonably estimated, we record an accrual for the loss. We have accrued for losses relating to threatened and pending litigation that we believe are probable and reasonably estimable based on current information regarding these matters. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to threatened and pending litigation that materially exceed the amount accrued. Our accrual for probable and estimable legal and regulatory matters, including accrued legal fees, was $42.2 million at December 31, 2022. We cannot currently estimate the amount, if any, of reasonably possible losses above amounts that have been recorded at December 31, 2022 . As previously disclosed, we are subject to individual lawsuits relating to our FDCPA compliance and putative state law class actions based on the FDCPA and similar state statutes. We are currently defending class actions challenging, under state and federal law, our practice of charging borrowers a fee to use certain optional payment methods, including: Morris v. PHH Mortg. Corp., et al. (S.D. FL), Torliatt v. PHH Mortg. Corp., et al. (N.D. Ca), Thacker v. PHH Mortg. Corp., et al. (N.D. WV), Forest v. PHH Mortg. Corp., et al. (D. RI), and Williams v. PHH Mortg. Corp., et al. (S.D. TX). We have reached settlements in four of these class actions. In the Thacker and Torliatt cases, the parties executed settlement agreements which were granted final approval by the Court in November 2022. In the Morris class action, the Court granted preliminary approval of the parties’ settlement, and we are proceeding with class notice before moving for final approval. Finally, we have reached a tentative settlement agreement with the class plaintiffs in the Williams class action and we are currently awaiting the Court’s ruling on the parties’ motion for preliminary approval. In addition, we continue to be involved in legacy matters arising prior to Ocwen’s October 2018 acquisition of PHH, including a putative class action filed in 2008 in the United States District Court for the Eastern District of California against PHH and related entities alleging that PHH’s legacy mortgage reinsurance arrangements between its captive reinsurer, Atrium Insurance Corporation, and certain mortgage insurance providers violated RESPA. See Munoz v. PHH Mortgage Corp. et al . (Eastern District of California). In June 2015, the court certified a class of borrowers who obtained loans with private mortgage insurance through PHH’s captive reinsurance arrangement between June 2007 and December 2009. PHH asserted numerous defenses to the merits of the case. Following pre-trial developments in August 2020, the only issues remaining for trial were whether the plaintiffs had standing to bring their claims and whether the reinsurance services provided by PHH’s captive reinsurance subsidiary, Atrium, were actually provided in order for the safe harbor provision of RESPA to apply. In January 2022, the Court denied a motion by the plaintiffs to enter new evidence and a motion by PHH to decertify the class, which motion PHH may renew if the case ultimately goes to trial. Following the entry of this order, at the request of the parties, the Court dismissed all of the plaintiffs’ claims for lack of standing and entered judgment in favor of PHH. The plaintiffs appealed to the United States Court of Appeals for the Ninth Circuit, and on February 24, 2023 that court reversed and remanded for further proceedings. Ocwen will continue to vigorously defend itself. Our current accrual with respect to this matter is included in the $42.2 million legal and regulatory accrual referenced above. At this time, Ocwen is unable to predict the outcome of this lawsuit or the possible loss or range of loss, if any, associated with the resolution of such lawsuit. If our efforts to defend this lawsuit are not successful, our business, reputation, financial condition, liquidity and results of operations could be materially and adversely affected. Ocwen is a defendant in a certified class action in the U.S. District Court in the Eastern District of California where the plaintiffs claim Ocwen marked up fees for property valuations and title searches in violation of California state law. See Weiner v. Ocwen Financial Corp., et al. In May 2020, the court ruled that plaintiff’s recoverable damages are limited to out-of-pocket costs, i.e., the amount of marked-up fees actually paid, rather than the entire cost of the valuation that plaintiffs sought. Following further pre-trial developments, in August 2022, the Court entered an order granting our motion to decertify each of the three classes. The plaintiffs filed a petition for permission to appeal the decertification decision and a motion asking the trial court to reconsider its decertification decision, and on February 28, 2023, the court granted that motion. At this time, Ocwen is unable to predict the outcome of this lawsuit or any additional lawsuits that may be filed, the possible loss or range of loss, if any, associated with the resolution of such lawsuits or the potential impact such lawsuits may have on us or our operations. Ocwen intends to vigorously defend against this lawsuit. If our efforts to defend this lawsuit are not successful, our business, financial condition liquidity and results of operations could be materially and adversely affected. Ocwen may have affirmative indemnification rights and/or other claims against third parties related to the allegations in the lawsuit. Although we may pursue these claims, we cannot currently estimate the amount, if any, of recoveries from these third parties. We are currently involved in a dispute with a former subservicing client, HSBC Bank USA, N.A. (HSBC), which filed a complaint in the Supreme Court of the State of New York against PHH. See HSBC Bank USA, N.A. v. PHH Mortgage Corp. (Supreme Court of the State of New York). HSBC’s claims relate to alleged breaches of agreements entered into under a prior subservicing arrangement and origination assistance agreement. In its complaint, HSBC also asserted a claim for fraud, which was dismissed by the Court. PHH has answered the complaint and has asserted counterclaims against HSBC for breach of contract. We believe we have strong factual and legal defenses to the remaining claims and are vigorously defending the action. Ocwen is currently unable to predict the outcome of this dispute or estimate the size of any loss which could result from a potential resolution reached through litigation or otherwise. Over the past several years, lawsuits have been filed by RMBS trust investors alleging that the trustees and master servicers breached their contractual and statutory duties by (i) failing to require loan servicers to abide by their contractual obligations; (ii) failing to declare that certain alleged servicing events of default under the applicable contracts occurred; and (iii) failing to demand that loan sellers repurchase allegedly defective loans, among other things. Ocwen has received several letters from trustees and master servicers purporting to put Ocwen on notice that the trustees and master servicers may ultimately seek indemnification from Ocwen in connection with the litigations. Ocwen has not yet been impleaded into any of these cases, but it has produced and continues to produce documents to the parties in response to third-party subpoenas. Ocwen has, however, been impleaded as a third-party defendant into five consolidated loan repurchase cases first filed against Nomura Credit & Capital, Inc. in 2012 and 2013. Ocwen is vigorously defending itself in those cases against allegations by the mortgage loan seller-defendant that Ocwen failed to inform its contractual counterparties that it had discovered defective loans in the course of servicing them and had otherwise failed to service the loans in accordance with accepted standards. Ocwen is unable at this time to predict the ultimate outcome of these matters, the possible loss or range of loss, if any, associated with the resolution of these matters or any potential impact they may have on us or our operations. If, however, we were required to compensate claimants for losses related to the alleged loan servicing breaches, then our business, reputation, financial condition, liquidity and results of operations could be adversely affected. In addition, several RMBS trustees have received notices of events of default alleging material failures by servicers to comply with applicable servicing agreements. Although Ocwen has not been sued by an RMBS trustee in response to an event of default notice, there is a risk that Ocwen could be replaced as servicer as a result of said notices, that the trustees could take legal action on behalf of the trust certificate holders, or, under certain circumstances, that the RMBS investors who issue notices of event of default could seek to press their allegations against Ocwen, independent of the trustees. We are unable at this time to predict what, if any, actions any trustee will take in response to an event of default notice, nor can we predict at this time the potential loss or range of loss, if any, associated with the resolution of any event of default notice or the potential impact on our operations. If Ocwen were to be terminated as servicer, or other related legal actions were pursued against Ocwen, it could have an adverse effect on Ocwen’s business, reputation, financial condition, liquidity and results of operations. Regulatory We are subject to a number of ongoing federal and state regulatory examinations, orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions. We may also on occasion be subject to foreign regulatory actions in the countries where we operate outside the U.S. Where we determine that a loss contingency is probable in connection with a regulatory matter and the amount of our loss can be reasonably estimated, we record an accrual for the loss. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to regulatory matters that materially exceed any accrued amount. Predicting the outcome of any regulatory matter is inherently difficult and we generally cannot predict the eventual outcome of any regulatory matter or the eventual loss, if any, associated with the outcome. To the extent that an examination, audit or other regulatory engagement results in an alleged failure by us to comply with applicable laws, regulations or licensing requirements, or if allegations are made that we have failed to comply with applicable laws, regulations or licensing requirements or the commitments we have made in connection with our regulatory settlements (whether such allegations are made through administrative actions such as cease and desist orders, through legal proceedings or otherwise) or if other regulatory actions of a similar or different nature are taken in the future against us, this could lead to (i) administrative fines and penalties and litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) damage to our reputation, (vii) inability to raise capital or otherwise fund our operations and (viii) inability to execute on our business strategy. Any of these occurrences could increase our operating expenses and reduce our revenues, hamper our ability to grow or otherwise materially and adversely affect our business, reputation, financial condition, liquidity and results of operations. CFPB In April 2017, the CFPB filed a lawsuit in the federal district court for the Southern District of Florida against Ocwen, Ocwen Mortgage Servicing, Inc. (OMS) and OLS alleging violations of federal consumer financial laws relating to our servicing business dating back to 2014. The CFPB’s claims include allegations regarding (1) the adequacy of Ocwen’s servicing system and integrity of Ocwen’s mortgage servicing data, (2) Ocwen’s foreclosure practices and (3) various purported servicer errors with respect to borrower escrow accounts, hazard insurance policies, timely cancellation of private mortgage insurance, handling of customer complaints, and marketing of optional products. The CFPB alleges violations of laws prohibiting unfair, deceptive or abusive acts or practices, as well as violations of other laws or regulations. The CFPB does not claim specific monetary damages, although it does seek consumer relief, disgorgement of allegedly improper gains, and civil money penalties. The parties participated in mediation in October 2020 and subsequently held additional settlement discussions. However, the parties were unable to reach a resolution of the litigation. In March 2021, the court issued an order granting in part and reserving ruling in part on Ocwen’s motion for summary judgment. In that order, the court granted Ocwen summary judgment on 9 of 10 counts in the CFPB’s amended complaint, finding that the CFPB’s allegations were barred under the principles of claim preclusion or res judicata to the extent those claims are premised on servicing activity occurring prior to February 26, 2017 and are covered by a 2014 Consent Judgment entered by the United States District Court for the District of Columbia. The CFPB subsequently filed its Second Amended Complaint to remove count 10 as well as allegations in counts 1-9 concerning servicing activity that occurred after February 26, 2017. In April 2021, the court entered final judgment in our favor, denied all pending motions as moot, and closed the case. The CFPB appealed the judgment. In April 2022, the Eleventh Circuit ruled on the appeal, largely adopting the district court’s decision precluding the CFPB from bringing claims covered by the National Mortgage Settlement but vacating and remanding the case back to the district court to determine which, if any, claims are not covered and may still be brought by the CFPB. Neither party sought rehearing of the Eleventh Circuit’s decision. Supplemental briefing at the District Court was completed in September 2022 and we await the court’s determination. If the case is not resolved in our favor by the District Court, Ocwen will continue to vigorously defend itself. Our current accrual with respect to this matter is included in the $42.2 million legal and regulatory accrual referenced above. The outcome of the matters raised by the CFPB, whether through negotiated settlements, court rulings or otherwise, could potentially involve monetary fines or penalties or additional restrictions on our business and could have a material adverse impact on our business, reputation, financial condition, liquidity and results of operations. State Licensing and Other Matters Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements or satisfying minimum net worth requirements and non-financial requirements such as satisfactorily completing examinations as to the licensee’s compliance with applicable laws and regulations. Failure to satisfy any of the requirements to which our licensed entities are subject could result in a variety of regulatory actions ranging from a fine, a directive requiring a certain step to be taken, entry into a consent order, a suspension or ultimately a revocation of a license, any of which could have a material adverse impact on our results of operations and financial condition. In addition, we receive information requests and other inquiries, both formal and informal in nature, from our state financial regulators as part of their general regulatory oversight of our servicing and lending businesses, as well as from state attorneys general, the CFPB and other federal agencies, including the Department of Justice and various inspectors general. For example, we have received requests regarding the charging of certain fees to borrowers; the post-boarding process to verify loan and payment terms are properly implemented, calculated, and applied; bankruptcy practices; COVID-19-related forbearance and post-forbearance options; and Homeowner Assistance Fund participation and implementation. Many of our regulatory engagements arise from a complaint that the entity is investigating, although some are formal investigations or proceedings. The GSEs (and their conservator, FHFA), HUD, FHA, VA, Ginnie Mae, the United States Treasury Department, and others also subject us to periodic reviews and audits, and engage with us on various matters. We have in the past resolved, and may in the future resolve, matters via consent orders, payments of monetary amounts and other agreements in order to settle issues identified in connection with examinations or other oversight activities, and such resolutions could have material and adverse effects on our business, reputation, operations, results of operations and financial condition. Loan Put-Back and Related Contingencies Our contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. While the language in the purchase contracts varies, they generally contain provisions that require us to indemnify purchasers of related loans or repurchase such loans if: • representations and warranties concerning loan quality, contents of the loan file or loan underwriting circumstances are inaccurate; • adequate mortgage insurance is not secured within a certain period after closing; • a mortgage insurance provider denies coverage; or • there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements. We received origination representations and warranties from our network of approved originators in connection with loans we purchased through our correspondent lending channel. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur. We believe that, as a result of historical actions by investors, many purchasers of residential mortgage loans are particularly aware of the conditions under which originators must indemnify or repurchase loans and under which such purchasers would benefit from enforcing any indemnification rights and repurchase remedies they may have. In our Originations business, we have exposure to indemnification risks and repurchase requests. In our Servicing business, claims alleging that we did not comply with our servicing obligations may require us to repurchase mortgage loans, make whole or otherwise indemnify investors or other parties. If home values were to decrease, our realized losses from loan repurchases and indemnifications may increase as well. As a result, our liability for repurchases may increase beyond our current expectations. If we are required to indemnify or repurchase loans that we originate and sell, or where we have assumed this risk on loans that we service, as discussed above, in either case resulting in losses that exceed our related liability, our business, financial condition and results of operations could be adversely affected. We have exposure to representation, warranty and indemnification obligations relating to our Originations business, including lending, loan sales and securitization activities. We initially recognize these obligations at fair value. Thereafter, the estimation of the liability considers probable future obligations based on industry data of loans of similar type segregated by year of origination, to the extent applicable, and estimated loss severity based on current loss rates for similar loans, our historical rescission rates and the current pipeline of unresolved demands. Our historical loss severity considers the historical loss experience that we incur upon loan sale or collateral liquidation as well as current market conditions. We have exposure to servicing representation, warranty and indemnification obligations relating to our servicing practices. We record an accrual for a loss contingency if the loss contingency is probable and the amount can be reasonably estimated. We monitor the adequacy of the overall liability and make adjustments, as necessary, after consideration of our historical losses and other qualitative factors including ongoing dialogue and experience with our counterparties. We do not provide or assume any origination representations and warranties in connection with our MSR purchases through MSR flow purchase agreements or Agency Cash Window and co-issue programs. At December 31, 2022 and 2021, we had outstanding representation and warranty repurchase demands of $66.7 million UPB (354 loans) and $52.5 million UPB (288 loans), respectively. We review each demand and monitor through resolution, primarily through rescission, loan repurchase or make-whole payment. The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations: Years Ended December 31, 2022 2021 2020 Beginning balance (1) $ 49.4 $ 40.4 $ 50.8 Provision (reversal) for representation and warranty obligations 0.3 3.2 (7.8) New production liability 3.0 4.7 2.6 Charge-offs and other (2) (11.2) 1.1 (5.3) Ending balance (1) $ 41.5 $ 49.4 $ 40.4 (1) The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our consolidated balance sheets. (2) Includes principal and interest losses realized in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any. We believe that it is reasonably possible that losses beyond amounts currently recorded for potential representation and warranty obligations and other claims described above could occur, and such losses could have an adverse impact on our results of operations, financial condition or cash flows. However, based on currently available information, we are unable to estimate a range of reasonably possible losses above amounts that have been recorded at December 31, 2022 . Other Ocwen, on its own behalf and on behalf of various mortgage loan investors, is engaged in a variety of activities to seek payments from mortgage insurers for unpaid claims, including claims where the mortgage insurers paid less than the full claim amount. Ocwen believes that many of the actions by mortgage insurers were in violation of the applicable insurance policies and insurance law. In some cases, Ocwen has entered into tolling agreements, initiated arbitration or litigation, engaged in settlement discussions, or taken other similar actions. To date, Ocwen has settled with five mortgage insurers, and expects the ultimate outcome to result in recovery of additional unpaid claims, although we cannot quantify the likely amount at this time. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Principles of Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (GAAP). Our consolidated financial statements include the accounts of Ocwen, its wholly-owned subsidiaries and any variable interest entity (VIE) for which we have determined that we are the primary beneficiary. We apply the equity method of accounting to investments where we are able to exercise significant influence, but not control, over the policies and procedures of the entity. We have eliminated intercompany accounts and transactions in consolidation. Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the U.S. dollar. Re-measurement adjustments of foreign-denominated amounts to U.S. dollars are included in Other, net in our consolidated statements of operations. |
Change in Presentation | Change in Presentation Other Financing Liabilities Effective in the fourth quarter of 2022, in our consolidated statements of operations we now present all fair value gains and losses of Other financing liabilities, at fair value in MSR valuation adjustments, net (previously reported in Pledged MSR liability expense). Other financing liabilities, at fair value include the financing liabilities recognized upon transfers of MSRs that do not meet the requirements for sale accounting treatment (also referred as Pledged MSR liability) and for which we elected the fair value option. The Pledged MSR liability is the obligation to deliver Rithm and MAV all contractual cash flows associated with the underlying MSR. The Pledged MSR liability expense now reflects servicing fee remittance to Rithm and MAV, net of subservicing fee. The purpose of this presentation change is to present all fair value gains and losses of MSRs and MSR related financial instruments for which we elected the fair value option in the same financial statement line item, and provide additional insights on the performance of our interest rate risk management activities. The consolidated statements of operations and the consolidated statements of cash flows for the years ended December 31, 2021 and 2020 have been recast to conform to the current year presentation, with the impact summarized in the table below. These presentation changes had no impact on revenue, operating expenses or net income (loss) in our consolidated statements of operations, no impact on our consolidated balance sheets and no impact on operating, investing and financing cash flows in our consolidated statements of cash flows. Years Ended December 31, 2021 2020 Consolidated Statements of Operations From Other income (expense) - Pledged MSR liability expense $ (11.4) $ (116.8) To MSR valuation adjustments, net 11.4 116.8 Income (loss) before income taxes $ — $ — Consolidated Statements of Cash Flows Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: From Loss (gain) on valuation of Pledged MSR financing liability $ (77.9) $ 17.9 To MSR valuation adjustments, net 77.9 (17.9) Net cash provided by (used in) operating activities $ — $ — The impact of the presentation changes on the quarterly periods for the years ended December 31, 2022 and 2021 is summarized in the following tables: Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Operations 2022 From Other income (expense) - Pledged MSR liability expense $ 28.5 $ 11.7 $ 67.8 $ (28.0) To MSR valuation adjustments, net (28.5) (11.7) (67.8) 28.0 Net $ — $ — $ — $ — 2021 From Other income (expense) - Pledged MSR liability expense $ (16.1) $ (12.5) $ 39.5 $ (22.4) To MSR valuation adjustments, net 16.1 12.5 (39.5) 22.4 $ — $ — $ — $ — Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Cash Flows 2022 From Loss (gain) on valuation of Pledged MSR financing liability (55.5) (39.9) (89.6) (3.7) To MSR valuation adjustments, net 55.5 39.9 89.6 3.7 $ — $ — $ — $ — 2021 From Loss (gain) on valuation of Pledged MSR financing liability (1.6) (8.4) (61.3) (6.7) To MSR valuation adjustments, net 1.6 8.4 61.3 6.7 $ — $ — $ — $ — |
Change in Presentation - Change in Statement of Cash Flows Accounting Policy | Change in Statement of Cash Flows Accounting Policy - Presentation of Equity Method Investee Distributions Effective December 31, 2022, Ocwen changed its accounting policy from the nature of the distribution approach to the cumulative earnings approach for classifying distributions from its equity method investee MAV Canopy between operating and investing cash flows in accordance with, and as required by ASC 230 Statement of Cash Flows, as certain distributions from MAV Canopy do not differentiate between returns on investment and returns of investment. For the year ended December 31, 2021 (fourth quarter of 2021), the consolidated statement of cash flows has been revised to reclassify $3.6 million of distributions from investing activity (Investment in equity method investee, net) to operating activity (Distribution of earnings from equity method investee) to conform to the current year presentation policy. The presentation change had no impact on financing activity or the net change in cash, cash equivalents and restricted cash. The impact of the presentation changes on the quarterly periods for the year ended December 31, 2022 (nil in 2021) is summarized in the following table: 2022 Year to Date Periods (Unaudited) Three Months Ended March 31 Six Months Ended June 30 Nine Months Ended September 30 Statement of Cash Flows From Cash flows from investing activities - Investment in equity method investee, net $ (12.0) $ (12.0) $ (14.0) To Cash flows from operating activities - Distribution of earnings from equity method investee 12.0 12.0 14.0 $ — $ — $ — Recently Adopted Accounting Standards Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) This standard provides for optional expedients and other guidance regarding the accounting related to modifications of contracts, hedging relationships and other transactions affected by the phase-out of certain tenors of the London Inter-bank Offered Rate (LIBOR) by the end of 2021 (or June 30, 2023 for one-, three-, six-, and 12-month tenors of U.S. dollar LIBOR). This guidance was effective upon issuance in March 2020 through December 31, 2022 and allowed for retrospective application to contract modifications as early as January 1, 2020. We elected to retrospectively adopt this ASU as of January 1, 2020 which resulted in no immediate impact on our consolidated financial statements. Although we do not have any hedge accounting relationships, many of our debt facilities and loan agreements incorporated LIBOR as the referenced interest rate. All but one of these facilities and loan agreements either matured as of December 31, 2022 or had terms in place that provided for an alternative to LIBOR upon renewal. The one remaining facility will be transitioned from LIBOR upon renewal in June 2023 prior to the phase-out of LIBOR by June 30, 2023. Reference Rate Reform (ASC 848): Deferral of the Sunset Date of ASC 848 (ASU 2022-06) On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024, after which entities will no longer be permitted to apply the temporary relief in ASC 848 during the transition period. The cessation date for certain tenors of LIBOR by June 30, 2023 was beyond the current sunset date of December 31, 2022 for ASC 848 (see ASU 2020-04 above). This standard defers the sunset of ASC 848 in ASU 2020-04 from December 31, 2022 to December 31, 2024 for all entities that have contracts, hedging relationships and other transactions that reference LIBOR or another rate expected to be discontinued due to reference rate reform. The amendments in this ASU were effective upon issuance in December 2022. Earnings Per Share (ASC 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (ASC 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force) (ASU 2021-04) The amendments in this ASU provide the following guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic: (1) treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument, (2) measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange and (3) recognize the effect of a modification or an exchange of a freestanding equity-classified written call option to compensate for goods or services in accordance with the guidance in ASC 718. In a multiple-element transaction (for example, one that includes both debt financing and equity financing), the total effect of the modification should be allocated to the respective elements in the transaction. Our adoption of this standard on January 1, 2022 did not have a material impact on our consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Business Combinations (ASC 805) - Accounting for Contract Assets and Contract Liabilities (ASU 2021-08) The amendments in this Update apply to all entities that enter into a business combination within the scope of Subtopic 805-10, Business Combinations— Overall. The amendments in this ASU are issued to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied ASC 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with generally accepted accounting principles (GAAP)). The amendments in this ASU are effective for us on January 1, 2023. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses (ASC 326) Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) The amendments in this ASU are related to 1) trouble debt restructurings (TDRs) and 2) vintage disclosures which affect all entities after they have adopted ASU 2016-13. The amendments eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40 Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in ASC 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments in this ASU also requires an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases with the scope of ASC 326 – Financial Instruments – Credit Losses – Measured at Amortized Cost. The amendments in this ASU are effective for us on January 1, 2023. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less. |
Restricted Cash | Restricted CashRestricted cash includes amounts specifically designated to repay debt, to provide over-collateralization for MSR financing facilities, mortgage loan warehouse facilities and match funded debt facilities, and to provide additional collateral to support certain obligations, including letters of credit. |
Mortgage Servicing Rights | Mortgage Servicing Rights MSRs are assets representing our right to service portfolios of mortgage loans. We recognize MSRs when originated or purchased loans are securitized or sold in the secondary market. We also acquire MSRs through flow purchase agreements, Agency Cash Window programs, and bulk acquisition transactions, or through asset purchases or business combination transactions . The unpaid principal balance (UPB) of the loans underlying the MSRs is not included on our consolidated balance sheets. For servicing retained in connection with the securitization of reverse mortgage loans accounted for as secured financings, we do not recognize an MSR. All newly acquired or retained MSRs are initially measured at fair value. To the extent any portfolio contract is not expected to compensate us adequately for performing the servicing, we would recognize a servicing liability. We define contracts as Agency, government-insured or non-Agency (commonly referred to as non-prime, subprime or private-label loans) based on applicable servicing guidelines, underwriting standards and borrower risk characteristics. We account for servicing assets and servicing liabilities at fair value, and report changes in fair value in earnings (MSR valuation adjustments, net) in the period in which the changes occur. |
Advances | Advances During any period in which a borrower does not make payments, servicing and subservicing contracts may require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process modifications and foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing and subservicing contract. Each servicing and subservicing contract is associated with specific loans, identified as a pool. When we make an advance on a loan under each servicing or subservicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from guarantors (GSEs), insurers (FHA/VA) and investors, for modified and liquidated loans in accordance with the governing servicing contract or published servicing guide. Most of our servicing and subservicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans that are the subject of that servicing or subservicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. Servicing advances are financial assets subject to the credit loss allowance model under Accounting Standards Codification (ASC) 326: Financial Instruments - Credit Losses (CECL). The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. Expected credit losses on advances are expected to be nil, or de minimis, as advances are generally fully reimbursable or recoverable under the terms of the servicing agreements. GSE and government-insured advances are subject to implicit and government guarantees, respectively, regarding advance reimbursement and the non-Agency pooling and servicing agreement terms regarding advance recovery, the credit loss history and the expectation over the remaining life of the advance portfolio support a zero allowance for credit loss. Servicing advances may also include claimable (with investors) but nonrecoverable expenses, for example due to servicer error, such as lack of reasonable documentation as to the type and amount of advances. Such servicer errors result in the determination that the advance is uncollectible and represent operational losses resulting from not complying with servicing guidelines as established by the respective party (i.e., trustee, master servicer, investor, mortgage insurer). We establish an allowance for such operational losses through a charge to earnings (Servicing and origination expense) to the extent that a portion of advances are uncollectible taking into consideration, among other factors, probability of cure or modification, length of delinquency and the amount of the advance. We also assess collectability using proprietary cash flow projection models that incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, estimated time to a foreclosure sale, estimated costs of foreclosure action, estimated future property tax payments and the estimated value of the underlying property net of estimated carrying costs, commissions and closing costs. Under the terms of our subservicing agreements, we are generally reimbursed by our subservicing clients on a monthly or more frequent basis. For those advances that have been reimbursed, i.e., that are off-balance sheet, if a loss contingency is probable and reasonably estimable, we recognize a loss contingency accrual for the amount of advances deemed uncollectible caused by our failure to comply with the subservicing agreements or our servicing practices. We report such loss contingency within Other liabilities - Liability for indemnification obligations. Receivables Receivables are financial assets subject to the expected credit loss allowance model under ASC 326: Financial Instruments - Credit Losses (CECL). The allowance for expected credit losses is estimated based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. We generally charge off the receivable balance when management determines the receivable to be uncollectible and when the receivable has been classified as a loss by our servicing claims analysis process. |
Loans Held for Sale | Loans Held for Sale Loans held for sale include forward and reverse mortgage loans that we do not intend to hold until maturity. We report loans held for sale at either fair value or the lower of cost or fair value computed on an aggregate basis. Residential forward and reverse mortgage loans that we intend to sell are carried at fair value as a result of a fair value election. In addition, effective January 1, 2020, repurchased loans by our Servicing business, including those loans we repurchase from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines, are accounted for under the fair value election. For loans that we elected to measure at fair value on a recurring basis, we report changes in fair value in Gain on loans held for sale, net in the consolidated statements of operations in the period in which the changes occur. These loans are expected to be sold into the secondary market to the GSEs, into Ginnie Mae guaranteed securitizations or to third-party investors. For the legacy portfolio of loans measured at the lower of cost or fair value, we account for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other, net, in the consolidated statements of operations in the period in which the change occurs. We report any gain or loss on the transfer of loans held for sale in Gain on loans held for sale, net in the consolidated statements of operations along with the changes in fair value of the loans and the gain or loss on any related derivatives. Gains or losses on sales or securitizations take into consideration any retained interests, including servicing rights and representation and warranty obligations, both of which are initially recorded at fair value at the date of sale in Gain on loans held for sale, net, in our consolidated statements of operations. We include all changes in loans held for sale and related derivative balances in operating activities in the consolidated statements of cash flows. We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent for more than 89 days, or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse the interest that we have accrued but not yet received. We return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. |
Loans Held for Investment | Loans Held for Investment Originated and purchased reverse mortgage loans that are insured by the FHA and pooled into Ginnie Mae guaranteed securities that we sell into the secondary market with servicing rights retained are classified as loans held for investment. We have elected to measure these loans at fair value, with changes in fair value reported in Gain on reverse loans held for investment and HMBS-related borrowings, net in the consolidated statements of operations. Loan transfers in these Ginnie Mae securitizations do not meet the definition of a participating interest and as a result, the transfers of the reverse mortgages do not qualify for sale accounting. Therefore, we account for these transfers as financings, with the reverse mortgages classified as Loans held for investment, at fair value, on our consolidated balance sheets, with no gain or loss recognized on the transfer. We record the proceeds from the transfer of assets as secured borrowings (HMBS-related borrowings) and recognize no gain or loss on the transfer. The fair value of HECM loans includes the fair value of future scheduled and unscheduled draw commitments for HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize (referred as tails). Effective January 1, 2019, we elected to fair value future draw commitments for HECM loans purchased or originated after December 31, 2018. The value of future draw commitments for HECM loans purchased or originated before January 1, 2019 were recognized as the draws were securitized or sold. Effective January 1, 2020, in connection with the adoption of Accounting Standard Update (ASU) 2016-13 and ASU 2019-04: Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, we made an irrevocable fair value election on all future draw commitments for HECM loans that were purchased or originated before January 1, 2019. We recorded cumulative-effect adjustments of $47.0 million to retained earnings as of January 1, 2020, to reflect the excess of the fair value over the carrying amount. We report originations and collections of HECM loans in investing activities in the consolidated statements of cash flows. We report net fair value gains on HECM loans and the related HMBS borrowings as an adjustment to the net cash provided by or used in operating activities in the consolidated statements of cash flows. Proceeds from securitizations of HECM loans and payments on HMBS-related borrowings are included in financing activities in the consolidated statements of cash flows. Gain on Reverse Loans Held for Investment and HMBS-Related Borrowings, Net We measure the HECM loans held for investment and HMBS-related borrowings at fair value on a recurring basis. The fair value gains and losses of the HECM loans and HMBS-related borrowings are included in Gain on reverse loans held for investment and HMBS-related borrowings, net in our consolidated statements of operations. Included in net fair value gains and losses on the securitized HECM loans and HMBS-related borrowings are the interest income on the securitized HECM loans and the interest expense on the HMBS-related borrowings, together with the realized gains or losses on tail securitization. In addition, Gain on reverse loans held for investment and HMBS-related borrowings, net includes the fair value changes of the interest rate lock commitments related to new reverse mortgage loans through securitization date, reported in the Originations segment. Upfront costs and fees related to loans held for investment, including broker fees, are recognized in Gain on reverse loans held for investment and HMBS-related borrowings, net in the consolidated statement of operations as incurred and are not capitalized. Premiums on loans purchased via the correspondent channel are capitalized upon origination because they represent part of the purchase price. However, the loans are subsequently measured at fair value on a recurring basis. Gain on reverse loans held for investment and HMBS-related borrowings, net excludes subservicing fees and ancillary income associated with our subservicing agreements, that are reported in Servicing and subservicing fees in our consolidated statements of operations. |
Transfers of Financial Assets and MSRs | VIEs and Transfers of Financial Assets and MSRs We securitize, sell and service forward and reverse residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. We typically retain economic interests in the securitized assets in the form of servicing rights and obligations. In order to efficiently finance our assets and operations and create liquidity, we may sell servicing advances, MSRs or the right to receive certain servicing fees relating to MSRs (Rights to MSRs). In order to determine whether or not a VIE is required to be consolidated, we consider our ongoing involvement with the VIE. In circumstances where we have both the power to direct the activities that most significantly impact the performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be significant, we would conclude that we would consolidate the entity, which precludes us from recording an accounting sale in connection with the transfer of the financial assets. In the case of a consolidated VIE, we continue to report the underlying residential mortgage loans or servicing advances, and we record the securitized debt on our consolidated balance sheet. In the case of transfers where either one or both of the power or economic criteria above are not met, we evaluate whether a sale has occurred for accounting purposes. In order to recognize a sale of financial assets, the transferred assets must be legally isolated, not be constrained by restrictions from further transfer and be deemed to be beyond our control. If the transfer does not meet any of these three criteria, the financial assets are not derecognized and the transaction is accounted for consistent with a secured financing. In certain situations, we may have continuing involvement in transferred loans through our retained servicing. Transactions involving retained servicing would still be eligible for sale accounting, as we have ceded effective control of these loans to the purchaser. A sale of MSRs shall be recognized as a sale for accounting purposes if substantially all the risks and rewards inherent in owning the MSRs have been effectively transferred to the buyer, title has transferred to the buyer and any protection provisions retained by the seller are minor and can be reasonably estimated. In the case of transfers of MSRs accounted for as a sale where we retain the right to subservice, we defer any related gain or loss and amortize the balance over the life of the subservicing agreement. A loss shall be recognized currently if the transferor determines that prepayments of the underlying mortgage loans may result in performing the future servicing at a loss. Other Financing Liabilities and Pledged MSR Liability Expense A sale of mortgage servicing rights with a subservicing contract may not be treated as a sale when the terms of the subservicing contract unduly limit the buyer's ability to exercise ownership control over the servicing rights or results in the seller retaining some of the risks and rewards of ownership. If the buyer cannot cancel or decline to renew the subservicing contract after a reasonable period of time, the buyer is precluded from exercising certain rights of ownership. Conversely, if the seller cannot cancel the subservicing contract after a reasonable period of time, the seller has not transferred substantially all of the risks of ownership. If the criteria for sale recognition are not met, the transferred MSRs are not derecognized and the transaction is accounted for consistent with a secured financing. Accordingly, when a transaction does not achieve sale treatment, we recognize the proceeds received and a corresponding liability, referred to as Pledged MSR liability within Other financing liabilities, that we subsequently remeasure at fair value with fair value gains and losses reported with in MSR valuation adjustments, net in the consolidated statements of operations. In the case of a sale of MSRs accounted for as a secured financing where we retain the right to subservice, no gain or loss is generally recognized on the transfer. A gain or loss may be recognized to the extent the estimated fair value of the pledged MSR liability differs from the total proceeds of the MSR transfer. If the criteria for MSR sale recognition are not met, the servicing fee collected on behalf of MSR transferee and related ancillary income remain reported within Servicing and subservicing fees. Servicing fee remittance, net of the subservicing fee we are entitled to, is reported within Pledged MSR liability expense in the consolidated statements of operations. Subsequent to the determination that a transaction does not meet the accounting sale criteria, we may determine that we meet the criteria. In the event we subsequently meet the accounting sale criteria, we derecognize the transferred assets and related liabilities. See Note 8 — Other Financing Liabilities, at Fair Value. In addition, we report within Other financing liabilities certain financing liabilities, including certain ESS liabilities collateralized by MSR portfolios, for which we elected to measure under the fair value option. The fair value gains and losses of these financial liabilities are reported with in MSR valuation adjustment, net in the consolidated statements of operations. The excess servicing spread remittance is reported within Pledged MSR liability expense in the consolidated statement of operations. Contingent Loan Repurchase Asset and Liability |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage the fair value changes in our MSRs, interest rate lock commitments and loan portfolios which are exposed to interest rate risk. We do not use derivative instruments for trading or speculative purposes. We recognize all derivative instruments at fair value on our consolidated balance sheets in Other assets and Other liabilities. Derivative instruments are generally entered into as economic hedges against changes in the fair value of a recognized asset or liability and are not designated as hedges for accounting purposes. We generally report the changes in fair value of such derivative instruments in the same line item in the consolidated statement of operations as the changes in fair value of the related asset or liability. For all other derivative instruments not designated as a hedging instrument, we report changes in fair value in Other, net. |
Premises and Equipment, Leases | Premises and Equipment, Leases We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on a straight-line basis as follows: Computer hardware and software 2 – 3 years Buildings 40 years Leasehold improvements Term of the lease not to exceed useful life Right of Use (ROU) assets Term of the lease not to exceed useful life Furniture and fixtures 5 years Office equipment 5 years Our leases include non-cancelable operating leases for premises and equipment. At lease commencement and renewal date, we estimate the ROU assets and lease liability at present value using our estimated incremental borrowing rate. We amortize the balance of the ROU assets and recognize interest on the lease liability. Our lease liability represents the present value of the lease payments and is reduced as we make cash payments on our lease obligations. Our ROU lease assets are evaluated for impairment in accordance with ASC 360: Premises and Equipment. |
Intangible Assets | Intangible Assets Intangible assets are recorded at their estimated fair value at the date of acquisition. Intangible assets deemed to have a finite useful life are amortized on a basis representative of the time pattern over which the benefit is derived. Intangible assets subject to amortization are evaluated for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable, but no less than annually. An impairment loss is recognized if the carrying value of the intangible asset is not recoverable and exceeds fair value. Intangible assets primarily consist of reverse subservicing contract intangible assets acquired in transactions with Mortgage Assets Management, LLC (formerly known as Reverse Mortgage Solutions, Inc.) (MAM (RMS)) and its then parent. The subservicing intangible assets are being amortized ratably over the five-year term of the respective subservicing contracts based on portfolio runoff. Intangible assets are included in Other assets, net of accumulated amortization, on our consolidated balance sheets, and amortization expense is included in Other expenses in our consolidated statements of operations. |
Investments in Unconsolidated Entities | Investments in Equity Method Investee We account for our investments in unconsolidated entities using the equity method. These investments include our investment in MAV Canopy in which we hold a significant, but less than controlling, ownership interest. Under ASC 323: Investments - Equity Method and Joint Ventures, an investment of less than 20 percent of the voting stock of an investee shall lead to a presumption that an investor does not have the ability to exercise significant influence unless such ability can be demonstrated. Ocwen determined it has significant influence over MAV Canopy based on its representation on the MAV Canopy Board of Directors and certain services it provides, amongst other factors. Accordingly, Ocwen accounts for its investment in MAV Canopy under the equity method. |
Litigation | LitigationWe monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish a liability for settlements, judgments on appeal and filed and/or threatened claims for which we believe that it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize legal costs associated with loss contingencies in Professional services expense in the consolidated statement of operations as incurred. |
Stock-Based Compensation | Stock-Based Compensation We initially measure the cost of employee services received in exchange for a stock-based award as the fair value of the award on the grant date. For awards which must be settled in cash and are therefore classified as liabilities rather than equity in the consolidated balance sheet, fair value is subsequently remeasured and fair value changes are reported as compensation expense at each reporting date. For equity-classified awards with a service condition, we recognize the cost as compensation expense ratably over the vesting period. For equity-classified awards with both a market condition and a service condition for vesting, we recognize cost as compensation expense over the requisite service period for each tranche of the award using the graded-vesting method. All compensation expense for an equity-classified award with a market condition is recognized if the requisite service period is fulfilled, even if the market condition is never satisfied. |
Income Taxes | Income Taxes We file consolidated U.S. federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized in future periods. In these evaluations, we consider our sources of future taxable income as the deferred tax assets represent future tax deductions. Taxable income of the appropriate character, within the appropriate time frame, is necessary for the realization of deferred tax assets. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit, based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in Income tax expense. |
Basic and Diluted Earnings per Share | Basic and Diluted Earnings per ShareWe calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of outstanding options and warrants to purchase common stock using the treasury stock method. |
Going Concern | Going Concern In accordance with Financial Accounting Standards Board (FASB) ASC 205-40: Presentation of Financial Statements - Going Concern, we evaluate whether there are conditions that are known or reasonably knowable that raise substantial doubt about our ability to continue as a going concern within one year after the date that our financial statements are issued. Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prior Period Adjustments | The consolidated statements of operations and the consolidated statements of cash flows for the years ended December 31, 2021 and 2020 have been recast to conform to the current year presentation, with the impact summarized in the table below. These presentation changes had no impact on revenue, operating expenses or net income (loss) in our consolidated statements of operations, no impact on our consolidated balance sheets and no impact on operating, investing and financing cash flows in our consolidated statements of cash flows. Years Ended December 31, 2021 2020 Consolidated Statements of Operations From Other income (expense) - Pledged MSR liability expense $ (11.4) $ (116.8) To MSR valuation adjustments, net 11.4 116.8 Income (loss) before income taxes $ — $ — Consolidated Statements of Cash Flows Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: From Loss (gain) on valuation of Pledged MSR financing liability $ (77.9) $ 17.9 To MSR valuation adjustments, net 77.9 (17.9) Net cash provided by (used in) operating activities $ — $ — The impact of the presentation changes on the quarterly periods for the years ended December 31, 2022 and 2021 is summarized in the following tables: Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Operations 2022 From Other income (expense) - Pledged MSR liability expense $ 28.5 $ 11.7 $ 67.8 $ (28.0) To MSR valuation adjustments, net (28.5) (11.7) (67.8) 28.0 Net $ — $ — $ — $ — 2021 From Other income (expense) - Pledged MSR liability expense $ (16.1) $ (12.5) $ 39.5 $ (22.4) To MSR valuation adjustments, net 16.1 12.5 (39.5) 22.4 $ — $ — $ — $ — Quarters Ended (Unaudited) March 31 June 30 September 30 December 31 Consolidated Statements of Cash Flows 2022 From Loss (gain) on valuation of Pledged MSR financing liability (55.5) (39.9) (89.6) (3.7) To MSR valuation adjustments, net 55.5 39.9 89.6 3.7 $ — $ — $ — $ — 2021 From Loss (gain) on valuation of Pledged MSR financing liability (1.6) (8.4) (61.3) (6.7) To MSR valuation adjustments, net 1.6 8.4 61.3 6.7 $ — $ — $ — $ — 2022 Year to Date Periods (Unaudited) Three Months Ended March 31 Six Months Ended June 30 Nine Months Ended September 30 Statement of Cash Flows From Cash flows from investing activities - Investment in equity method investee, net $ (12.0) $ (12.0) $ (14.0) To Cash flows from operating activities - Distribution of earnings from equity method investee 12.0 12.0 14.0 $ — $ — $ — |
Schedule of Property and Equipment Useful Lives | We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on a straight-line basis as follows: Computer hardware and software 2 – 3 years Buildings 40 years Leasehold improvements Term of the lease not to exceed useful life Right of Use (ROU) assets Term of the lease not to exceed useful life Furniture and fixtures 5 years Office equipment 5 years |
Securitizations and Variable _2
Securitizations and Variable Interests Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Cash Flows Received from and Paid to Securitization Trusts Related to Transfers Accounted for as Sales Outstanding | The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Years Ended December 31, 2022 2021 2020 Proceeds received from securitizations $ 17,027.0 $ 19,293.2 $ 7,533.3 Servicing fees collected (1) 91.8 63.7 47.2 Purchases of previously transferred assets, net of claims reimbursed (11.4) (17.4) (6.9) $ 17,107.4 $ 19,339.5 $ 7,573.6 |
Schedule of Carrying Amounts of Assets that Relate to Continuing Involvement with Transferred Forward Loans | The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: December 31, 2022 2021 Carrying value of assets MSRs, at fair value $ 524.3 $ 360.8 Advances 75.9 151.2 UPB of loans transferred (1) 37,571.1 31,864.8 Maximum exposure to loss (2) $ 38,171.2 $ 32,376.8 (1) Includes $6.8 billion and $5.6 billion of loans delivered to Ginnie Mae as of December 31, 2022 and 2021, respectively, and includes loan modifications repurchased and delivered through the Ginnie Mae Early Buyout Program (EBO). |
Schedule of Carrying Value and Classification of Assets and Liabilities of Loans Held for Sale Financing Facility | The table below presents the carrying value and classification of the assets and liabilities of the loans held for sale financing facility: December 31, 2022 2021 Mortgage loans (Loans held for sale, at fair value) $ — $ 462.1 Outstanding borrowings (Mortgage loan warehouse facilities) — 459.3 |
Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities | The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: December 31, 2022 2021 Match funded advances (Advances, net) $ 608.4 $ 587.1 Debt service accounts (Restricted cash) 15.8 7.7 Unamortized deferred lender fees (Other assets) 2.3 1.3 Prepaid interest (Other assets) 0.9 0.2 Advance match funded liabilities 512.5 512.3 |
Carrying Value And Classification Of Assets And Liabilities Of PLS Notes Facility | The table below presents the carrying value and classification of the assets and liabilities of the Agency MSR financing facility and the PLS Notes facility: December 31, 2022 2021 MSRs pledged (MSRs, at fair value) $ 696.9 $ 730.4 Debt service account (Restricted cash) 1.8 2.1 Unamortized deferred lender fees (Other assets) 1.1 1.5 Outstanding borrowings (MSR financing facilities, net) 366.5 359.2 Unamortized debt issuance costs (MSR financing facilities, net) 0.8 0.4 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value | The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: December 31, 2022 2021 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 617.8 $ 617.8 $ 917.5 $ 917.5 Loans held for sale, at lower of cost or fair value (b) 3 4.9 4.9 11.0 11.0 Total Loans held for sale $ 622.7 $ 622.7 $ 928.5 $ 928.5 Loans held for investment, at fair value Loans held for investment - Reverse mortgages (a) 3 $ 7,504.1 $ 7,504.1 $ 7,199.8 $ 7,199.8 Loans held for investment - Restricted for securitization investors (a) 3 6.7 6.7 7.9 7.9 Total loans held for investment 7,510.8 7,510.8 7,207.7 7,207.7 Advances, net (c) 3 718.9 718.9 772.4 772.4 Receivables, net (c) 3 180.8 180.8 180.7 180.7 Financial liabilities: Advance match funded liabilities (c) 3 $ 513.7 $ 513.7 $ 512.3 $ 512.0 Financing liabilities, at fair value: HMBS-related borrowings (a) 3 $ 7,326.8 $ 7,326.8 $ 6,885.0 $ 6,885.0 Other financing liabilities: Financing liability - Pledged MSR liability (a) 3 931.7 931.7 797.1 797.1 Financing liability - Excess Servicing Spread (ESS) (a) 3 199.0 199.0 — — Financing liability - Owed to securitization investors (a) 3 6.7 6.7 7.9 7.9 Total Other financing liabilities $ 1,137.4 $ 1,137.4 $ 805.0 $ 805.0 Mortgage loan warehouse facilities (c) 3 $ 702.7 $ 702.7 $ 1,085.1 $ 1,085.1 MSR financing facilities (c) (d) 3 953.8 932.1 900.8 873.8 Senior notes: PMC Senior notes due 2026 (c) (d) 2 369.4 331.4 392.6 413.5 OFC Senior secured notes due 2027 (c) (d) 3 230.2 223.9 222.2 261.5 Total Senior notes $ 599.6 $ 555.2 $ 614.8 $ 674.9 December 31, 2022 2021 Level Carrying Value Fair Value Carrying Value Fair Value Derivative financial instrument assets (liabilities), net Interest rate lock commitments (IRLCs) (a) 3 $ (0.7) $ (0.7) $ 18.1 $ 18.1 Forward sales of loans (a) 1 0.5 0.5 0.4 0.4 TBA / Forward mortgage-backed securities (MBS) trades (a) 1 (0.7) (0.7) (0.3) (0.3) Interest rate swap futures (a) 1 (13.6) (13.6) 1.7 1.7 TBA forward Pipeline trades (a) 1 6.6 6.6 — — Option contracts (a) 2 — — (0.3) (0.3) Other (a) 3 (0.1) (0.1) (1.1) (1.1) MSRs (a) 3 $ 2,665.2 $ 2,665.2 $ 2,250.1 $ 2,250.1 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Disclosed, but not measured, at fair value. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 13 — Borrowings for additional information . |
Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis: Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Year Ended December 31, 2022 Beginning balance $ 7.9 $ (7.9) 220.9 $ — $ 18.1 Purchases, issuances, sales and settlements Purchases — — 140.4 — — Issuances (1) — — — (200.9) 168.0 Sales — — (318.0) — — Settlements (1.2) 1.2 — 6.6 — Transfers: Loans held for sale, at fair value (1) — — — — (141.5) Receivables, net — — (4.2) — — Other assets and liabilities — — (0.3) (6.1) — Net addition (disposition/derecognition) (1.2) 1.2 (182.1) (200.4) 26.5 Change in fair value included in earnings (1) — — (6.8) 1.4 (45.3) Ending balance $ 6.7 $ (6.7) $ 32.1 $ (199.0) $ (0.7) Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2021 Beginning balance $ 9.8 $ (9.8) $ 51.1 $ 2.0 $ 22.7 Purchases, issuances, sales and settlements Purchases — — 436.2 — — Issuances (1) — — — — 627.7 Sales — — (260.0) (1.6) — Settlements (1.9) 1.9 — — — Transfers: Loans held for sale, at fair value (1) — — — — (591.7) Receivables, net — — (1.6) — — Other assets — — (0.4) — — Net addition (disposition/derecognition) (1.9) 1.9 174.1 (1.6) 36.0 Change in fair value included in earnings (1) — — (4.3) (0.4) (40.6) Ending balance $ 7.9 $ (7.9) $ 220.9 $ — $ 18.1 Loans Held for Investment - Restricted for Securitization Investors Financing Liability - Owed to Securitiza - Loans Held for Sale - Fair Value Mortgage-Backed Securities IRLCs Year Ended December 31, 2020 Beginning balance $ 23.3 $ (22.0) $ — $ 2.1 $ — Purchases, issuances, sales and settlements Purchases — — 162.6 — — Issuances (1) — — — — 287.0 Deconsolidation of mortgage-backed securitization trusts (10.7) 9.5 — — — Sales — — (137.8) — — Settlements (2.9) 2.9 — — — Transfers: Loans held for sale, at fair value (1) — — — — (285.2) Receivables, net — — (1.0) — — Net addition (disposition/derecognition) (13.6) 12.4 23.8 — 1.8 Change in fair value included in earnings (1) — (0.1) 1.7 (0.1) 10.4 Transfers in and / or out of Level 3 — — 25.6 — 10.5 Ending balance $ 9.8 $ (9.8) $ 51.1 $ 2.0 $ 22.7 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $(18.8) million, $(4.6) million and $17.8 million for 2022, 2021 and 2020, respectively. See Note 16 — Derivative Financial Instruments and Hedging Activities. |
Summary of Estimated Change in the Value of MSRs Carried at Fair Value | The following table summarizes the estimated change in the value of the MSRs as of December 31, 2022 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Change in weighted average prepayment speeds (in percentage points) 0.8 1.6 Change in fair value due to change in weighted average prepayment speeds $ (61.7) $ (120.8) Change in weighted average discount rate (in percentage points) 1.0 1.9 Change in fair value due to change weighted average discount rate $ (76.1) $ (146.2) |
Loans Held for Investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2022 2021 Life in years Range 1.0 to 7.6 1.0 to 8.2 Weighted average 5.0 5.7 Conditional prepayment rate, including voluntary and involuntary prepayments Range 13.2% to 45.0% 11.2% to 36.6% Weighted average 18.0 % 16.0 % Discount rate 5.1 % 2.6 % |
Fair Value Mortgage Servicing Rights | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2022 2021 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 6.9 % 7.9 % 8.5 % 12.1 % Weighted average lifetime delinquency rate 1.4 % 10.1 % 1.2 % 11.9 % Weighted average discount rate 9.6 % 10.6 % 8.5 % 11.2 % Weighted average cost to service (in dollars) $ 72 $ 201 $ 71 $ 205 |
HMBS - Related Borrowings | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2022 2021 Life in years Range 1.0 to 7.6 1.0 to 8.2 Weighted average 5.0 5.7 Conditional prepayment rate Range 13.2% to 45.0% 11.2% to 36.6% Weighted average 18.0 % 16.0 % Discount rate 5.0 % 2.5 % |
Mortgage Servicing Rights Pledged | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Significant Assumptions used in Valuation | December 31, Significant unobservable assumptions 2022 2021 Weighted average prepayment speed 7.6 % 10.9 % Weighted average delinquency rate 7.1 % 8.8 % Weighted average discount rate 10.2 % 10.5 % Weighted average cost to service (in dollars) $ 174 $ 182 |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Activity in Balance of Loans Held for Sale, at Fair Value | Loans Held for Sale - Fair Value Years Ended December 31, 2022 2021 2020 Beginning balance $ 917.5 $ 366.4 $ 208.8 Originations and purchases 17,582.0 19,972.4 7,552.0 Proceeds from sales (17,477.2) (19,279.1) (7,344.2) Principal collections (106.9) (58.6) (26.0) Transfers from (to): Loans held for investment, at fair value 8.0 4.3 3.1 Receivables (13.2) (33.6) (85.0) REO (Other assets) (3.1) (8.4) (3.7) Capitalization of advances on Ginnie Mae modifications 18.1 24.8 12.8 Realized gain (loss) on sale of loans (290.0) (69.9) 50.2 Fair value gain (loss) on loans held for sale (9.0) (0.9) 1.1 Other (8.4) 0.5 (2.8) Ending balance (1) $ 617.8 $ 917.5 $ 366.4 UPB $ 623.7 $ 910.4 $ 364.0 Premium (discount) 7.4 11.5 9.1 Fair value adjustment (13.3) (4.4) (6.7) Total $ 617.8 $ 917.5 $ 366.4 |
Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value | Loans Held for Sale - Lower of Cost or Fair Value Years Ended December 31, 2022 2021 2020 Carrying amount before valuation allowance (1) 8.8 15.4 27.7 Valuation allowance (4.0) (4.4) (6.2) Ending balance, net $ 4.9 $ 11.0 $ 21.5 |
Summary of Activity in Gain on Loans Held for Sale, Net | Years Ended December 31, Gains on Loans Held for Sale, Net 2022 2021 2020 Gain (loss) on sales of loans, net MSRs retained on transfers of forward mortgage loans $ 234.7 $ 222.7 $ 68.7 Gain (loss) on sale of forward mortgage loans (1)(2) (278.0) (87.8) 45.5 Gain on sale of repurchased Ginnie Mae loans (2)(3) (10.1) 18.4 15.9 (53.4) 153.3 130.1 Change in fair value of IRLCs (17.4) (6.2) 17.5 Change in fair value of loans held for sale (5.9) 1.9 2.3 Gain (loss) on economic hedge instruments (4) 101.7 1.5 (10.1) Other (3.0) (4.7) (2.6) $ 22.0 $ 145.8 $ 137.2 (1) Includes $27.1 million gain in 2021 related to loans purchased through the exercise of our servicer call rights with respect to certain Non-Agency trusts and sold, servicing released. (2) Realized gain (loss) on sale of loans, excluding retained MSR. (3) Includes an $8.8 million loss in 2022 on certain delinquent and aged loans repurchased (net of the associated Ginnie Mae MSR fair value adjustment) in connection with the Ginnie Mae EBO program with an aggregated UPB of $299.7 million, net of the associated MSR fair value adjustment. |
Reverse Mortgages (Tables)
Reverse Mortgages (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Held For Investment and HMBS Related Borrowings | Years Ended December 31, 2022 2021 2020 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings (3) Beginning balance $ 7,199.8 $ (6,885.0) $ 6,997.1 $ (6,772.7) $ 6,269.6 $ (6,063.4) Cumulative effect of fair value election (1) — — — — 47.0 — Originations 1,658.1 — 1,763.4 — 1,203.6 — Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (1,780.4) — (1,674.9) — (1,232.6) Additional proceeds from securitization of HECM loans and tails — (25.2) — (44.6) — (40.9) Acquisition (2) 211.3 (209.1) — — — — Repayments (principal payments received) (1,579.9) 1,568.4 (1,626.4) 1,614.3 (944.7) 935.8 Transfers: Loans held for sale, at fair value (8.0) — (3.4) — (3.1) — Receivables, net 2.1 — (0.3) — (0.2) — REO (Other assets) (0.4) — (0.3) — (0.5) — Fair value gains (losses) recognized in earnings (4) 21.1 4.5 69.7 (7.1) 425.4 (371.5) Ending Balance $ 7,504.1 $ (7,326.8) $ 7,199.8 $ (6,885.0) $ 6,997.1 $ (6,772.7) Securitized loans (pledged to HMBS-Related Borrowings) $ 7,392.6 $ (7,326.8) $ 6,979.1 $ (6,885.0) $ 6,872.2 $ (6,772.7) Unsecuritized loans 111.5 220.7 124.9 Total $ 7,504.1 $ 7,199.8 $ 6,997.1 (1) In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020. (2) During 2022, we purchased a reverse mortgage servicing portfolio of HECM loans securitized in Ginnie Mae pools. As the Ginnie Mae HMBS program does not qualify for sale accounting, the transaction conveyed the HECM loans and associated HMBS-related borrowings to us. We have accounted for this transaction as a secured financing, as a purchase of loans held for investment and assumption of an HMBS securitization liability for the obligation to Ginnie Mae. (3) Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is the pass-through rate of the loans less applicable margin. See Note 2 — Securitizations and Variable Interest Entities. (4) See further breakdown in the table below. |
Schedule of Reverse Mortgage Revenue, Net | Gain on Reverse Loans Held for Investment and HMBS-related Borrowings, Net Years Ended December 31, 2022 2021 2020 Gain on new originations (1) $ 50.7 $ 65.0 $ 46.3 Gain on tail securitization (2) 11.2 21.6 24.4 Net interest income (servicing fee) (3) 21.9 19.9 19.2 Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net (58.2) (43.8) (36.0) Fair value gains (losses) included in earnings (2)(4) 25.6 62.7 53.9 Loan fees and other 10.5 17.0 6.8 $ 36.1 $ 79.7 $ 60.7 (1) Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date. (2) Includes the cash realized gains upon securitization of tails (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above) (3) Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings (previously reported within Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net in the table above). The net interest income includes the servicing fee Ocwen is contractually entitled to on securitized loans. (4) See breakdown between Loans held for investment and HMBS-related borrowings in the table above. |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Advances [Abstract] | |
Schedule of Advance Payments by Financial Institution on Foreclosed Properties | December 31, 2022 2021 Principal and interest $ 215.5 $ 228.0 Taxes and insurance 367.5 381.0 Foreclosures, bankruptcy, REO and other 142.1 170.4 725.1 779.5 Allowance for losses (6.2) (7.0) Advances, net $ 718.9 $ 772.4 |
Schedule of Activity in Advances | The following table summarizes the activity in net advances: Years Ended December 31, 2022 2021 2020 Beginning balance - before Allowance for Losses $ 779.5 $ 834.5 $ 1,066.4 New advances 784.8 831.2 890.4 Transfer from (to) Receivables 6.5 (3.7) (2.5) Sales of advances (2.9) (1.3) (0.8) Asset acquisition — 6.9 — Collections of advances and other (842.8) (888.2) (1,119.0) Ending balance - before Allowance for Losses 725.1 779.5 834.5 Beginning balance - Allowance for Losses $ (7.0) $ (6.3) $ (9.9) Provision expense (7.2) (8.1) (7.8) Net charge-offs and other 8.0 7.4 11.4 Ending balance - Allowance for Losses (6.2) (7.0) (6.3) Ending balance, net $ 718.9 $ 772.4 $ 828.2 |
Schedule of Change in Allowance for Losses |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Activity Related to Fair Value Servicing Assets | Mortgage Servicing Rights – Fair Value Measurement Method Years Ended December 31, 2022 2021 2020 Agency Non-Agency Total Agency Non-Agency Total Agency Non-Agency Total Beginning balance $ 1,571.8 $ 678.3 $ 2,250.1 $ 578.9 $ 715.9 $ 1,294.8 $ 714.0 $ 772.4 $ 1,486.4 Sales (154.4) — (154.4) — — — — (0.1) (0.1) Additions: Recognized on the sale of residential mortgage loans 234.7 — 234.7 222.7 — 222.7 68.7 — 68.7 Purchase of MSRs 181.6 — 181.6 844.1 — 844.1 285.1 — 285.1 Servicing transfers and adjustments (1) (24.3) (0.9) (25.3) 0.1 (10.9) (10.8) (266.2) 0.4 (265.8) Net additions (sales) 237.6 (0.9) 236.6 1,067.0 (10.9) 1,056.0 87.6 0.3 87.9 Changes in fair value recognized in earnings: Changes in valuation inputs or assumptions 307.8 146.2 454.0 62.4 87.1 149.5 (145.3) 37.3 (108.1) Realization of cash flows (185.4) (90.1) (275.5) (136.5) (113.7) (250.2) (77.4) (94.0) (171.4) Fair value gains (losses) recognized in earnings 122.4 56.1 178.5 (74.1) (26.7) (100.7) (222.7) (56.8) (279.5) Ending balance $ 1,931.8 $ 733.5 $ 2,665.2 $ 1,571.8 $ 678.3 $ 2,250.1 $ 578.9 $ 715.9 $ 1,294.8 (1) Servicing transfers and adjustments for 2022 include a $39.0 million derecognition of Agency MSRs previously sold to MAV in a transaction which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $2.9 billion from our balance sheet upon the sale of the MSRs by MAV to a third party. Servicing transfers and adjustments for 2020 include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the PMC subservicing agreement by Rithm. See Note 8 — Other Financing Liabilities, at Fair Value for further information. December 31, 2022 December 31, 2021 Delinquent loans Agency Non - Agency Total Agency Non - Agency Total 30 days 1.7 % 8.5 % 4.8 % 1.4 % 7.2 % 4.1 % 60 days 0.5 3.3 1.8 0.4 2.8 1.6 90 days or more 1.1 8.6 4.5 1.9 8.0 4.8 Total 30-60-90 days or more 3.3 % 20.4 % 11.1 % 3.7 % 18.0 % 10.5 % |
Schedule of Composition of Primary Servicing and Subservicing Portfolios by Type of Property Serviced as Measured by UPB | December 31, 2022 December 31, 2021 Fair Value UPB Fair Value UPB Owned MSRs $ 1,710.6 $ 126.2 $ 1,422.5 $ 127.9 Rithm transferred MSRs (1) (2) 601.2 47.3 558.9 53.7 MAV transferred MSRs (1) 353.4 26.1 268.7 24.0 Total MSRs $ 2,665.2 $ 199.6 $ 2,250.1 $ 205.6 (1) MSRs subject to sale agreements with Rithm and MAV that do not meet sale accounting criteria. During 2022 and 2021, we transferred MSRs with a UPB of $7.4 billion and $24.9 billion to MAV. See Note 8 — Other Financing Liabilities, at Fair Value. |
Summary of Geographic Distributions of UPB and Count of Residential Loans and Real Estate Serviced | The geographic concentration of the UPB of residential loans and real estate we serviced and subserviced at December 31, 2022 was as follows: (Dollars in billions) (Count in thousands) Amount Count California $ 68.9 224.8 Texas 20.8 117.6 Florida 19.3 109.1 New York 19.2 69.9 New Jersey 14.1 56.1 Other 147.5 801.3 $ 289.8 1,378.8 |
Schedule of Components of Servicing and Subservicing Fees | Years Ended December 31, Servicing Revenue 2022 2021 2020 Loan servicing and subservicing fees Servicing $ 337.8 $ 339.2 $ 216.3 Subservicing 72.9 21.1 28.9 MAV (1) 72.8 15.7 — Rithm (1) 255.0 304.2 383.7 Total loan servicing and subservicing fees 738.5 680.3 628.8 Ancillary income Late charges 41.0 40.9 47.7 Custodial accounts (float earnings) 26.2 4.7 9.9 Reverse subservicing ancillary income 20.4 1.4 — Loan collection fees 11.1 11.7 12.9 Recording fees 8.5 16.0 14.3 Boarding and deboarding fees 5.8 10.5 11.1 GSE forbearance fees 0.8 1.5 1.2 Other 10.3 14.8 11.3 Total ancillary income 124.1 101.6 108.5 $ 862.6 $ 781.9 $ 737.3 (1) Includes servicing fees related to transferred MSRs and subservicing fees. See Note 8 — Other Financing Liabilities, at Fair Value. |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents the components of MSR valuation adjustments, net: Years Ended December 31, 2022 2021 2020 MSR fair value changes due to rates and assumptions (1) $ 451.7 $ 149.8 $ (108.1) MSR realization of expected cash flows (275.2) (250.2) (171.4) Total MSR fair value gains (losses) 176.5 (100.4) (279.5) MSR pledged liability fair value changes due to rates and assumptions (192.1) (77.9) 3.8 MSR pledged liability realization of expected cash flows 104.1 89.4 113.0 Total MSR pledged liability fair value gains (losses) (2) (3) (88.0) 11.4 116.8 ESS financing liability fair value changes due to rates and assumptions 1.4 — — ESS financing liability realization of expected cash flows 6.6 — — Total ESS financing liability fair value gains (losses) (2) 8.0 — — Derivative fair value gain (loss) (MSR economic hedges) (106.9) (9.5) 27.5 MSR valuation adjustments, net $ (10.4) $ (98.5) $ (135.2) (1) Includes $(2.0) million, $0.3 million and $— million in 2022, 2021 and 2020, respectively, of fair value changes on the reverse MSR liability and other. (2) Also refer to Note 8 — Other Financing Liabilities, at Fair Value. |
MSR Transfers Not Qualifying _2
MSR Transfers Not Qualifying for Sale Accounting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Interest Expense Related to Financial Liability | The following tables presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 13 — Borrowings for ESS financing liability carried at amortized cost). Outstanding Balance at December 31, Borrowing Type Collateral Maturity 2022 2021 MSR transfers not qualifying for sale accounting (1): Original Rights to MSRs Agreements, at fair value - Rithm MSRs (1) $ 601.2 $ 558.9 Pledged MSR liability, at fair value - MAV MSRs (1) 329.8 238.1 Pledged MSR liability, at fair value - Others MSRs (1) 0.7 — 931.7 797.1 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment October 2033 6.7 7.9 ESS financing liability, at fair value (3) MSRs (3) (3) 199.0 — Total Other financing liabilities, at fair value $ 1,137.4 $ 805.0 (1) MSRs transferred or sold in transactions which do not qualify for sale accounting treatment are accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. Fair value gains and losses of the Pledged MSR liability are recognized in MSR valuation adjustments, net in the consolidated statements of operations - See Note 7 — Mortgage Servicing. (2) Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that are consolidated. (3) Consists of the obligation to remit to a third party a specified percentage of future servicing fee collections (servicing spread) on reference pools of MSRs, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustment, net. The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with MAV, Rithm and others that do not qualify for sale accounting. Year Ended December 31, 2022 Pledged MSR Liability Rithm and Others MAV (1) Total Beginning balance $ 558.9 $ 238.1 $ 797.1 Additions 0.6 85.6 86.3 Changes in fair value due to input and assumptions 113.8 78.3 192.1 Runoff and settlement (70.9) (33.2) (104.1) Fair value (gain) loss (4) 43.0 45.1 88.0 Derecognition of financing liability (2) — (39.0) (39.0) Calls (3) (0.7) — (0.7) Ending balance $ 601.9 $ 329.8 $ 931.7 Year Ended December 31, 2021 Pledged MSR Liability Rithm Original Rights to MSRs Agreements MAV (1) Total Beginning balance $ 567.0 $ — $ 567.0 Additions — 250.0 250.0 Changes in fair value due to inputs and assumptions 82.3 (4.3) 77.9 Runoff and settlement (81.8) (7.5) (89.4) Fair value (gain) loss 0.5 (11.9) (11.4) Calls (3) (8.5) — (8.5) Ending balance $ 558.9 $ 238.1 $ 797.1 Year Ended December 31, 2020 Rithm Pledged MSR Liability Original Rights to MSRs Agreements 2017 Agreements and New RMSR Agreements PMC MSR Agreements Total Beginning balance $ 603.0 $ 35.4 $ 312.1 $ 950.6 Sales — — (0.2) (0.2) Changes in fair value due to inputs and assumptions 36.1 0.9 (40.7) (3.8) Runoff and settlement (70.4) (35.1) (7.5) (113.0) Fair value (gain) loss (34.3) (34.2) (48.2) (116.8) Derecognition of financing liability due to termination of PMC Agreement (5) — — (263.7) (263.7) Calls (3) (1.8) (1.2) — (3.0) Ending balance $ 567.0 $ — $ — $ 567.0 (1) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is retained by PMC (shared between PMC and MAV) and other contractual cash flows under the terms of the subservicing agreement. (2) Derecognition of a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to a third party with a UPB of $2.9 billion. (3) Represents the carrying value of MSRs in connection with call rights exercised by Rithm, for MSRs transferred to Rithm under the 2017 Agreements and New RMSR Agreements, or by Ocwen at Rithm’s direction, for MSRs underlying the Original Rights to MSRs Agreements (as defined below). Ocwen derecognizes the MSRs and the related financing liability upon collapse of the securitization. (4) The changes in fair value of the MAV Pledged MSR Liability include a $14.1 million loss associated with the amendment to the MAV Subservicing Agreement in March 2022, resulting in lower contractually ancillary income retained by PMC. See Note 11 — Investment in Equity Method Investee and Related Party Transactions. (5) On February 20, 2020, we received a notice of termination from Rithm with respect to a portfolio (referred as the PMC MSR Agreements). The MSRs and the Rights to MSRs associated with these loans, representing $34.2 billion of UPB, were derecognized from our balance sheet without any gain or loss on derecognition. The following tables present the Pledged MSR liability expense recorded in connection with the MSR sale agreements with MAV, Rithm and others that do not qualify for sale accounting and the ESS financing liabilities. Year Ended December 31, 2022 Rithm and Others MAV Total Servicing fees collected on behalf of third party $ 255.0 $ 67.5 $ 322.5 Less: Subservicing fee retained (74.0) (8.8) (82.8) Ancillary fee/income and other settlement (incl. expense reimbursement) 5.7 0.4 6.1 Transferred MSR net servicing fee remittance $ 186.7 $ 59.1 245.9 ESS servicing spread remittance 9.1 Pledged MSR liability expense $ 255.0 Year Ended December 31, 2021 Year Ended December 31, 2020 Rithm MAV Total Servicing fees collected on behalf of third party $ 304.2 14.2 $ 318.4 $ 383.7 Less: Subservicing fee retained (88.4) (2.0) (90.4) (104.8) Ancillary and other settlement (1) (11.1) 4.4 (6.7) (9.7) Pledged MSR liability expense $ 204.7 $ 16.6 $ 221.3 $ 269.1 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Receivables | December 31, 2022 2021 Servicing-related receivables: Government-insured loan claims - Forward $ 65.0 $ 90.6 Government-insured loan claims - Reverse 73.8 39.9 Due from custodial accounts 16.3 7.8 Servicing fees 6.4 6.7 Reimbursable expenses 5.3 6.1 Subservicing fees and reimbursable expenses - Due from Rithm 3.0 3.8 Receivable from sale of MSRs (holdback) 1.5 — Subservicing fees, reimbursable expenses and other - Due from MAV 1.0 4.9 Other 3.2 1.2 175.5 160.9 Income taxes receivable (1) 34.4 56.8 Due from MAV 0.6 1.0 Other receivables 4.6 3.8 215.1 222.5 Allowance for losses (34.3) (41.7) $ 180.8 $ 180.7 |
Government Insured Loans Claims | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Changes in Allowance For Losses | Allowance for Losses - Government-Insured Loan Claims Years Ended December 31, 2022 2021 2020 Beginning balance $ 41.5 $ 38.3 $ 56.9 Provision 12.5 14.4 18.1 Charge-offs and other, net (20.2) (11.3) (36.7) Ending balance $ 33.8 $ 41.5 $ 38.3 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | December 31, 2022 2021 Computer hardware $ 25.6 $ 25.5 Operating lease ROU assets 21.0 22.9 Computer software 15.7 17.0 Leasehold improvements 5.3 13.8 Furniture and fixtures, office equipment and other 3.3 4.7 70.9 83.8 Less accumulated depreciation and amortization (50.7) (70.2) $ 20.2 $ 13.7 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | December 31, 2022 2021 Contingent loan repurchase asset $ 289.9 $ 403.7 Prepaid expenses 19.8 21.5 Intangible assets, net (net of accumulated amortization of $5.0 million and $0.7 million) 14.7 14.3 REO 9.8 10.1 Derivatives, at fair value 7.7 21.7 Prepaid lender fees, net 7.7 7.2 Prepaid representation, warranty and indemnification claims - Agency MSR sale 5.0 15.2 Deferred tax assets, net 2.6 3.3 Derivative margin deposit 1.5 2.0 Security deposits 0.8 1.2 Other 4.7 7.1 $ 364.2 $ 507.3 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Match Funded Liabilities | Advance Match Funded Liabilities Borrowing Capacity Outstanding Balance at December 31, Borrowing Type Maturity (1) Amort. Date (1) Total Available (2) 2022 2021 Advance Receivables Backed Notes - Series 2015-VF5 (3) Aug. 2053 Aug. 2023 $ 450.0 $ 27.5 $ 422.5 $ 14.2 Advance Receivables Backed Notes, Series 2020-T1 (4) N/A N/A — — — 475.0 Total Ocwen Master Advance Receivables Trust (OMART) 450.0 27.5 422.5 489.2 Ocwen GSE Advance Funding (OGAF ) - Advance Receivables Backed Notes, Series 2015-VF1 (5) Aug. 2053 Aug. 2023 90.0 — 90.0 23.1 EBO Advance facility (6) May 2026 NA 14.4 13.2 1.2 — $ 554.4 $ 40.7 $ 513.7 $ 512.3 Weighted average interest rate (7) 7.09 % 1.54 % (1) The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In all of our advance facilities, there are multiple notes outstanding. After the amortization date for each note, all collections that represent the repayment of advances pledged to the facility must be applied ratably to each outstanding amortizing note to reduce the balance and as such the collection of advances allocated to the amortizing note may not be used to fund new advances. (2) The committed borrowing capacity under the OMART and OGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At December 31, 2022, none of the available borrowing capacity of the OMART and OGAF advance financing notes could be used based on the amount of eligible collateral. (3) Interest is computed based on the lender’s cost of funds plus applicable margin. Effective August 15, 2022, we extended the amortization date of Series 2015-VF5 variable funding notes to August 14, 2023, increased the borrowing capacity from $80.0 million to $450.0 million and modified the interest rate margins. (4) We voluntarily repaid the outstanding balance of the Series 2020-T1 term notes at the amortization date in August 2022 and replaced with variable funding notes. See (3) above. The range of interest rates on the individual classes of the repaid notes was between 1.28% to 5.42%. (5) Interest is computed based on the lender’s cost of funds plus applicable margin. On January 31, 2022, we amended the Ocwen Freddie Advance Funding (OFAF) advance facility to include Fannie Mae advances as eligible collateral and renamed the facility Ocwen GSE Advance Funding (OGAF). On August 26, 2022, the amortization date of the facility was extended to August 25, 2023, the committed borrowing capacity was increased from $40.0 million to $50.0 million and the interest rate margin was modified. On November 30, 2022, the committed borrowing capacity was further increased to $90.0 million. (6) On May 2, 2022, we entered into a loan and security agreement and issued a $1.7 million promissory note to the lender. The facility has total uncommitted borrowing capacity of $14.4 million to finance the acquisition of advances in connection with the early buyout of certain fixed-rate, fully-amortizing FHA-insured residential mortgage loans, at an interest rate of 1M Term Secured Overnight Financing Rate ( SOFR) plus applicable margin. At December 31, 2022, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. |
Schedule of Senior Notes | Senior Notes Outstanding Balance at December 31, Interest Rate (1) Maturity 2022 2021 PMC Senior Secured Notes 7.875% March 2026 $ 375.0 $ 400.0 OFC Senior Secured Notes (due to related parties) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285.0 285.0 Principal balance 660.0 685.0 Discount (2) PMC Senior Secured Notes (1.3) (1.8) OFC Senior Secured Notes (3) (47.3) (54.2) (48.6) (55.9) Unamortized debt issuance costs (2) PMC Senior Secured Notes (4.3) (5.7) OFC Senior Secured Notes (7.5) (8.6) (11.8) (14.3) $ 599.6 $ 614.8 (1) Excluding the effect of the amortization of debt issuance costs and discount. (2) The discount and debt issuance costs are amortized to interest expense through the maturity of the respective notes. (3) Includes original issue discount (OID) and additional discount related to the concurrent issuance of warrants and common stock. See below for additional information. |
Schedule of Assets Held as Collateral Related to Secured Borrowings | Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at December 31, 2022: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 208.0 $ — $ — $ 208.0 Restricted cash 66.2 66.2 — — Loans held for sale 622.7 592.4 572.4 30.3 Loans held for investment - securitized (2) 7,392.6 7,392.6 7,326.8 — Loans held for investment - unsecuritized 111.5 67.5 60.9 44.0 MSRs (3) 1,710.6 1,725.8 1,115.9 — Advances, net 718.9 667.2 551.4 51.7 Receivables, net 180.8 67.0 65.7 113.8 REO 9.8 4.3 3.8 5.5 Total (4) $ 11,021.1 $ 10,582.9 $ 9,696.8 $ 453.4 (1) Certain assets are pledged as collateral to the PMC Senior Secured Notes and OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PMC’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PMC in connection with certain claims relating to the performance and obligations of PMC as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to Rithm and MAV and associated Pledged MSR liability recorded as sale accounting criteria are not met. Pledged assets exceed the MSR asset balance due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral. |
Schedule of Aggregate Long-term Borrowings | Certain of our borrowings mature within one year of the date of issuance of these financial statements. Based on management’s evaluation, we expect to renew, replace or extend all such borrowings to the extent necessary to finance our business on or prior to their respective maturities consistent with our historical experience. Expected Maturity Date (1) (2) 2023 2024 2025 2026 2027 Thereafter Total Fair Advance match funded liabilities $ 512.5 $ — $ — $ 1.2 $ — $ — $ 513.7 $ 513.7 Mortgage loan warehouse facilities 702.7 — — — — — 702.7 702.7 MSR financing facilities 485.2 13.8 422.2 — — 33.4 954.6 932.1 Senior notes — — — 375.0 285.0 — 660.0 555.2 $ 1,700.5 $ 13.8 $ 422.2 $ 376.2 $ 285.0 $ 33.4 $ 2,831.0 $ 2,703.7 (1) Amounts are exclusive of any related discount, unamortized debt issuance costs or fair value adjustment. (2) For match funded liabilities, the Expected Maturity Date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. |
Schedule of Redemption Prices | On or after March 15, 2023, PMC may redeem some or all of the PMC Senior Secured Notes at its option at the following redemption prices, plus accrued and unpaid interest, if any, on the notes redeemed to, but excluding, the redemption date if redeemed during the 12-month period beginning on March 15th of the years indicated below: Redemption Year Redemption Price 2023 103.938 % 2024 101.969 2025 and thereafter 100.000 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | December 31, 2022 2021 Contingent loan repurchase liability $ 289.9 $ 403.7 Other accrued expenses 75.9 104.9 Due to Rithm - Advance collections and servicing fees 64.4 76.6 Checks held for escheat 48.1 44.9 Liability for indemnification obligations 43.8 51.2 Accrued legal fees and settlements 42.2 44.0 Servicing-related obligations 40.1 32.4 Lease liability 16.6 16.8 Derivatives, at fair value 15.7 3.1 MSR purchase price holdback 13.9 32.6 Accrued interest payable 13.7 12.0 Liability for uncertain tax positions 10.9 14.7 Income taxes payable 6.2 — Derivative related payables 6.0 3.7 Liability for unfunded India gratuity plan 5.9 6.3 Mortgage insurance premium payable 5.0 5.1 Liability for unfunded pension obligation 3.4 4.2 Excess servicing fee spread payable 3.4 — Due to MAV 0.2 2.1 Other 3.2 9.2 $ 708.5 $ 867.5 |
Schedule of Accrued Legal Fees and Settlements | Accrued Legal Fees and Settlements Years Ended December 31, 2022 2021 2020 Beginning balance $ 44.0 $ 38.9 $ 30.7 Accrual for probable losses (1) 6.6 9.4 26.5 Payments (2) (6.9) (5.5) (14.8) Net increase (decrease) in accrued legal fees (1.5) 1.2 (3.4) Other — — 0.1 Ending balance $ 42.2 $ 44.0 $ 38.9 (1) Consists of amounts accrued for probable losses in connection with legal and regulatory settlements and judgments. Such amounts are reported in Professional services expense in the consolidated statements of operations. |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss (AOCL), Net of Income Taxes | The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows: December 31, 2022 2021 Unfunded pension plan obligation, net $ 2.1 $ 1.9 Unrealized losses on cash flow hedges, net 0.5 0.6 Other (0.1) (0.1) $ 2.5 $ 2.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Changes in Notional Balances of Holdings of Derivatives | The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Maturities Notional Fair Value Maturities Notional Fair Value Derivative Assets (Other assets) Forward sales of Reverse loans January 2023 $ 20.0 $ 0.1 February 2022 $ 175.0 $ 0.4 Forward loans IRLCs N/A — — January - April 2022 1,022.0 16.1 Reverse loans IRLCs January 2023 13.8 0.6 January 2022 63.3 2.0 TBA forward MBS trades January - March 2023 804.0 6.6 January - March 2022 587.0 0.9 Forward sales of Forward loans January 2023 100.0 0.4 N/A — — Interest rate swap futures N/A — — March 2022 792.5 1.7 Interest rate option contracts N/A — — January 2022 125.0 0.5 Total $ 937.8 $ 7.7 $ 2,764.8 $ 21.7 Derivative Liabilities (Other liabilities) Forward loans IRLCs January - April 2023 $ 540.1 $ (1.3) N/A $ — $ — Forward sales of Reverse loans January 2023 20.0 (0.1) N/A — — TBA forward MBS trades January - February 2023 85.0 (0.7) January - March 2022 1,195.0 (1.2) Interest rate swap futures January 2023 670.0 (13.6) N/A — — Interest rate option contracts N/A — — February 2022 450.0 (0.8) Other N/A 56.4 (0.1) N/A — (1.1) Total $ 1,371.4 $ (15.7) $ 1,645.0 $ (3.1) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statement of operations. Years Ended December 31, Gain (Loss) 2022 2021 2020 Financial Statement Line Derivative Instruments Forward loans IRLCs $ (17.4) $ (6.2) $ 17.5 Gain on loans held for sale, net Reverse loans IRLCs (1.4) 1.5 0.3 Gain on reverse loans held for investment and HMBS-related borrowings, net TBA trades (economically hedging forward pipeline trades and EBO pipeline) 101.3 1.5 — Gain on loans held for sale, net (Economic hedge) Forward trades (economically hedging forward pipeline trades and EBO pipeline) 0.4 — — Gain on loans held for sale, net (Economic hedge) Interest rate swap futures and TBA forward MBS trades — — (10.1) Gain on loans held for sale, net (Economic hedge) TBA trades (economically hedging reverse pipeline trades) (0.3) — — Gain on reverse loans held for investment and HMBS-related borrowings, net Interest rate swap futures, TBA trades and interest rate option contracts (106.9) (9.5) 27.5 MSR valuation adjustments, net Forward sales of Reverse loans (0.3) 0.4 — Gain on reverse loans held for investment and HMBS-related borrowings, net Other — — 0.1 Gain on loans held for sale, net Other 1.0 (1.1) — Other, net Total $ (23.5) $ (13.3) $ 35.3 |
Interest Income (Tables)
Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest Income | Years Ended December 31, 2022 2021 2020 Loans held for sale $ 43.9 $ 25.9 $ 13.9 Interest earning cash deposits and other 1.7 0.5 2.1 $ 45.6 $ 26.4 $ 16.0 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest Expense | Years Ended December 31, 2022 2021 2020 OFC Senior Secured Notes (1) $ 42.1 $ 31.7 $ — PHH and PMC senior notes 31.8 31.9 26.6 Mortgage loan warehouse facilities 37.8 30.6 15.2 MSR financing facilities 47.0 26.0 15.9 Advance match funded liabilities 19.8 14.2 24.1 SSTL — 3.0 20.5 Escrow 7.5 6.5 7.0 $ 186.0 $ 144.0 $ 109.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Taxes | For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows: Years Ended December 31, 2022 2021 2020 Domestic $ 14.0 (13.9) (118.0) Foreign 10.9 9.5 12.4 $ 24.9 $ (4.4) $ (105.7) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Years Ended December 31, 2022 2021 2020 Current: Federal $ 0.2 $ (20.1) $ (67.1) State (0.8) (1.3) 0.3 Foreign (0.2) 1.6 2.6 (0.8) (19.8) (64.2) Deferred: Federal 4.7 (2.3) (26.0) State (0.7) — (2.1) Foreign 0.6 0.2 (1.4) Provision for (reversal of) valuation allowance on deferred tax assets (3.9) 2.3 28.2 0.7 0.2 (1.3) Other (0.7) (2.8) — Total $ (0.8) $ (22.4) $ (65.5) |
Schedule of Effective Income Tax Reconciliation | Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows: Years Ended December 31, 2022 2021 2020 Expected income tax expense (benefit) at statutory rate $ 5.2 $ (0.9) $ (22.2) Differences between expected and actual income tax expense: CARES Act (0.1) (12.6) (79.0) Provision for (reversal of) valuation allowance on deferred tax assets (3.9) 2.3 28.2 Provision for (reversal of) liability for uncertain tax positions (3.4) (8.7) 13.1 Interest on refund claims due from tax authorities (0.7) (2.8) — Other provision to return differences (0.2) (1.0) (3.3) Foreign tax differential including effectively connected income (1) 2.3 1.4 (2.5) State tax, after Federal tax benefit (0.3) 0.2 (1.4) Benefit of state NOL carryback claims and amended return filings (1.2) (1.8) — Executive compensation disallowance 1.6 1.4 0.6 Excess tax benefits from share-based compensation (0.4) (0.5) 0.4 Other permanent differences 0.1 0.2 0.4 Foreign tax credit (generation) utilization 0.1 — — U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion 0.1 0.2 0.2 Other — 0.2 0.1 Actual income tax expense (benefit) $ (0.8) $ (22.4) $ (65.5) |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following: December 31, 2022 2021 Deferred tax assets Net operating loss carryforwards - federal and foreign $ 107.9 $ 54.6 Net operating loss carryforwards and credits - state and local 90.3 70.7 Interest expense disallowance 72.6 39.3 Reserve for servicing exposure 5.7 6.8 Accrued legal settlements 10.0 9.9 Partnership losses 5.4 8.6 Stock-based compensation expense 10.4 9.9 Accrued incentive compensation 3.7 6.7 Accrued other liabilities 5.4 5.9 Lease liabilities 1.0 2.5 Intangible asset amortization 6.3 5.0 Foreign deferred assets 3.2 3.8 Tax residuals and deferred income on tax residuals 1.5 1.5 Bad debt and allowance for loan losses 8.2 4.0 Other 4.1 5.1 335.7 $ 234.1 Deferred tax liabilities Mortgage servicing rights amortization 153.1 57.3 Other 1.5 1.3 154.6 58.6 181.1 175.4 Valuation allowance (178.5) (172.1) Deferred tax assets, net $ 2.6 $ 3.3 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows: Years Ended December 31, 2022 2021 2020 Beginning balance $ 11.5 $ 20.6 $ 10.6 Additions for tax positions of current year — — — Additions for tax positions of prior years — 0.2 15.2 Reductions for tax positions of prior years — (6.4) (0.2) Reductions for settlements (2.1) (0.6) (3.1) Lapses in statute of limitations (0.7) (2.4) (1.9) Ending balance (1) $ 8.7 $ 11.5 $ 20.6 |
Basic and Diluted Earnings (L_2
Basic and Diluted Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Calculation of Basic EPS to Diluted EPS | Years Ended December 31, 2022 2021 2020 Basic earnings (loss) per share Net income (loss) $ 25.7 $ 18.1 $ (40.2) Weighted average shares of common stock outstanding 8,647,399 9,021,975 8,748,725 Basic earnings (loss) per share $ 2.97 $ 2.00 $ (4.59) Diluted earnings (loss) per share Net income (loss) $ 25.7 $ 18.1 $ (40.2) Weighted average shares of common stock 8,647,399 9,021,975 8,748,725 Effect of dilutive elements Contingent issuance of common stock — 38,685 — Common stock warrants 158,542 152,208 — Stock option awards 18 60 — Common stock awards 191,347 169,539 — Dilutive weighted average shares of common stock 8,997,306 9,382,467 8,748,725 Diluted earnings (loss) per share $ 2.85 $ 1.93 $ (4.59) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 222,602 143,593 199,079 Market-based (2) 62,867 87,509 125,395 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. |
Employee Compensation and Ben_2
Employee Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Change in Benefit Obligation, Plan Assets and Funded Status for Pension Plans | The following table shows the total change in the benefit obligation, plan assets and funded status for the pension plan(s): December 31, 2022 2021 Projected benefit obligation $ 40.9 $ 54.3 Fair value of plan assets 37.5 50.1 Unfunded status recognized in Other liabilities $ (3.4) $ (4.2) Amounts recognized in Accumulated other comprehensive loss $ 2.2 $ 2.0 |
Change in Benefit Obligation, Plan Assets and Funded Status for Gratuity Plan | The following table shows the total change in the benefit obligation, plan assets and funded status for the Gratuity Plan: December 31, 2022 2021 Benefit obligation $ 5.9 $ 6.3 Fair value of plan assets — — Unfunded status recognized in Other liabilities $ (5.9) $ (6.3) |
Schedule of Stock Options Vesting | Outstanding equity awards granted under the 2007 Equity Plan, the 2017 Equity Plan and 2021 Equity Incentive Plan had the following characteristics in common: Type of Award Percent of Total Equity Award Vesting Period 2014 Awards: Options: Servicing Condition - Time-based 25 % Ratably over four years (25% on each of the four anniversaries of the grant date) Market Condition: Market performance-based 50 Over three years beginning with 25% vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Extraordinary market performance-based 25 Over three years beginning with 25% vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (25% on each of the next three anniversaries of the achievement of the market condition) Total Award 100 % 2015 - 2022 Awards: Options: Service Condition - Time-based 1 % Ratably over four years (25% vesting on each of the first four anniversaries of the grant date.) Service Condition - Time-based 4 Ratably over three years (one-third vesting on each of the first three anniversaries of the grant date). Stock Units: Service Condition - Time-based 35 Ratably over three years with one-third vesting on each of the first three anniversaries of the grant date. Service Condition - Time-based 8 Ratably over four years with 25% vesting on each of the first four anniversaries of the grant date. Market Condition: Time-based vesting schedule and Market performance-based vesting date 52 Cliff-vest 100% after three years. Vesting of units credited based on Total Shareholder Return (TSR) for any performance period is subject to continued service through the third anniversary of the grant. There is no interim or ratable vesting. The number of performance-based awards that will vest is determined by Ocwen’s TSR, either absolute or relative to a performance peer group, during each performance period. Total Award 100 % |
Schedule of Stock Option Activity | Years Ended December 31, Stock Options 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 114,658 $ 281.89 124,866 $ 274.30 131,962 $ 282.30 Granted — — — — — — Exercised — — — — — — Forfeited / Expired (1) (75,501) 354.83 (10,208) 189.00 (7,096) 423.80 Outstanding at end of year (2)(3) 39,157 $ 141.27 114,658 $ 281.89 124,866 $ 274.30 Exercisable at end of year (2)(3)(4) 34,657 $ 94.46 108,754 $ 273.97 110,484 $ 283.08 (1) Includes 74,834 and 10,208 options which expired unexercised in 2022 and 2021, respectively, because their exercise price was greater than the market price of Ocwen’s stock. (2) At December 31, 2022, 4,500 options with a market condition for vesting based on an average common stock trading price of $501.75, had not met their performance criteria. Outstanding and exercisable stock options at December 31, 2022 have a net aggregate intrinsic value of $0.0 million. A total of 4,500 market-based options were outstanding at December 31, 2022, of which none were exercisable. (3) At December 31, 2022, the weighted average remaining contractual term of options outstanding and options exercisable was 3.56 years and 3.84 years, respectively. (4) The total fair value of stock options that vested and became exercisable during 2022, 2021 and 2020, based on grant-date fair value, was $0.0 million, $0.3 million and $0.3 million, respectively. |
Schedule of Stock Unit Activity | Stock Units - Equity-Classified Awards Years Ended December 31, 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Unvested at beginning of year 416,226 $ 25.97 261,647 $ 21.74 177,275 $ 39.45 Granted (1) (2) 373,614 28.43 236,593 33.50 150,000 8.78 Vested (3)(4) (109,077) 23.11 (71,855) 33.43 (62,954) 42.25 Forfeited/Cancelled (5) (76,874) 32.42 (10,159) 39.74 (2,674) 26.85 Unvested at end of year (6)(7) 603,889 $ 27.19 416,226 $ 25.97 261,647 $ 21.74 (1) Stock units granted in 2022, 2021 and 2020 include 147,058, 115,173 and 150,000 units, respectively, granted to Ocwen’s CEO under the long-term incentive (LTI) program. Stock units granted in 2022 and 2021 include 13,091 and 4,623 units, respectively, added for performance factor related to awards under LTI program. Stock units granted in 2022 includes 436 units reclassified from liability-classified awards. (2) Includes 57,187 one-time equity settled awards granted in 2022 to certain employees in connection with their employment, of which 51,546 vest ratably over four years (25% vesting on each of the first four anniversaries of the grant date) and 5,641 awards vest ratably over four years (one-third vesting on each of the first three anniversaries of the grant date). Stock units granted in 2021 includes 117,233 hybrid awards granted to certain Ocwen executives. (3) The total intrinsic value of stock units vested, which is defined as the weighted market value of the stock on the date of vesting, was $2.2 million, $2.1 million and $1.0 million for 2022, 2021 and 2020, respectively. (4) The total fair value of the stock units that vested during 2022, 2021 and 2020, based on grant-date fair value, was $2.5 million, $2.4 million and $2.7 million, respectively. (5) Stock units forfeited/cancelled in 2022 includes 42,885 units forfeited due to market-based performance under the LTI program. (6) Excluding the 327,603 market-based stock awards that have not met their market-based performance criteria (and time-vesting requirements, where applicable), the net aggregate intrinsic value of stock awards outstanding at December 31, 2022 was $8.5 million. At December 31, 2022, the market-based performance for 327,603 stock units is measured based on TSR relative to Ocwen’s compensation peer group TSR over the four performance periods. (7) At December 31, 2022, the weighted average remaining contractual term of share units outstanding was 2.1 years. |
Stock Units Liability Awards | Years Ended December 31, Stock Units - Liability-Classified Awards 2022 2021 2020 Unvested units at beginning of year 758,626 728,373 243,441 Granted (1) 246,018 233,056 601,787 Vested (191,728) (105,974) (21,909) Forfeited/Cancelled (2) (204,158) (111,507) (94,954) Other (3) 11,801 14,678 8 Unvested units at end of year 620,559 758,626 728,373 (1) Awards granted in 2020 include 57,891 one-time time-based long-term incentive awards to certain Ocwen executives with a vesting period of 18 months from the date of grant, subject to continued employment and other conditions. (2) Units forfeited/cancelled in 2022, 2021 and 2020 include 105,552, 35,000 and 36,898 units, respectively, forfeited due to market-based performance under the LTI program. (3) Includes 12,204 and 14,681 units added during 2022 and 2021, respectively, as a result of market-based performance, and 8 shares added in 2020 representing the conversion of fractional stock units on the reverse stock split. |
Schedule of Assumptions used to Value Stock Option Awards Granted | The following assumptions were used to value awards: Monte Carlo 2022 2021 2020 Risk-free interest rate 1.31% - 4.66% 0.01% - 0.77% 0.08% – 0.29% Expected stock price volatility (1) 93.8% - 94.7% 95% - 96.4% 88.7% - 94.1% Expected dividend yield —% —% —% Expected life (in years) (2) (2) (2) Fair value $26.53 - $50.99 $36.09 - $62.03 $24.36 - $38.75 (1) We generally estimate volatility based on the historical volatility of Ocwen’s common stock over the most recent period that corresponds with the estimated expected life of the option. For awards valued using a Monte Carlo simulation, volatility is computed as a blend of historical volatility based on daily stock price returns and implied volatility based on traded options on Ocwen’s common stock. (2) The stock units that contain both a service condition and a market-based condition are valued using the Monte Carlo simulation. The expected term is derived from the output of the simulation and represents the expected time to meet the market-based vesting condition. For equity awards with both service and market conditions, the requisite service period is the longer of the derived or explicit service period. In this case, the explicit service condition (vesting period) is the requisite service period, and the graded vesting method is used for expense recognition. |
Schedule of Equity-based Compensation Expense Related to Stock Options and Stock Awards and Related Excess Tax Benefit | The following table summarizes Ocwen's stock-based compensation expense included as a component of Compensation and benefits expense in the consolidated statements of operations: Years Ended December 31, 2022 2021 2020 Compensation expense - Equity-classified awards Stock option awards $ (0.1) $ 0.3 $ (0.4) Stock awards 4.7 4.5 2.8 $ 4.6 $ 4.7 $ 2.4 Compensation expense - Liability-classified awards $ 2.2 $ 15.1 $ 5.6 Excess tax benefit (tax deficiency) related to share-based awards $ 0.4 $ 0.5 $ (0.4) |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Financial information for our segments is as follows: Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2022 Servicing and subservicing fees $ 860.5 $ 2.1 $ — $ — $ 862.6 Gain on reverse loans held for investment and HMBS-related borrowings, net (25.1) 61.2 — — 36.1 Gain (loss) on loans held for sale, net (1) (15.1) 52.9 — (15.7) 22.0 Other revenue, net 1.4 24.9 6.9 — 33.2 Revenue 821.7 141.1 6.9 (15.7) 953.9 MSR valuation adjustments, net (1) (36.0) 9.9 — 15.7 (10.4) Operating expenses (2) 314.1 148.5 69.8 — 532.4 Other income (expense): Interest income 12.9 31.2 1.5 — 45.6 Interest expense (114.8) (29.0) (42.2) — (186.0) Pledged MSR liability expense (255.0) — — — (255.0) Gain on extinguishment of debt — — 0.9 — 0.9 Equity in earnings of unconsolidated entity 18.5 — — — 18.5 Other, net (7.3) (1.8) (1.1) — (10.2) Other income (expense), net (345.7) 0.4 (40.9) — (386.2) Income (loss) before income taxes $ 125.9 $ 2.9 $ (103.8) $ — $ 24.9 Year Ended December 31, 2021 Servicing and subservicing fees $ 773.5 $ 8.5 $ — $ — $ 781.9 Gain on reverse loans held for investment and HMBS-related borrowings, net (2.3) 82.0 — — 79.7 Gain on loans held for sale, net (1) 46.6 124.5 — (25.3) 145.8 Other revenue, net 1.7 34.9 6.2 — 42.7 Revenue 819.4 249.9 6.2 (25.3) 1,050.1 MSR valuation adjustments, net (1) (4) (143.4) 19.6 — 25.3 (98.5) Operating expenses (2) 342.4 172.8 94.1 — 609.3 Other income (expense): Interest income 8.2 17.7 0.5 — 26.4 Interest expense (80.8) (22.3) (40.9) — (144.0) Pledged MSR liability expense (221.3) — — — (221.3) Loss on extinguishment of debt (15.5) (15.5) Equity in earnings of unconsolidated entity 3.6 3.6 Other, net 5.2 (2.3) 1.2 — 4.1 Other expense, net (285.1) (6.9) (54.7) — (346.7) Income (loss) before income taxes $ 48.5 $ 89.8 $ (142.6) $ — $ (4.4) Results of Operations Servicing Originations Corporate Items and Other Corporate Eliminations (1) Business Segments Consolidated Year Ended December 31, 2020 Servicing and subservicing fees $ 731.2 $ 6.0 $ 0.1 $ — $ 737.3 Gain on reverse loans held for investment and HMBS-related borrowings, net 7.6 53.1 — — 60.7 Gain on loans held for sale, net (1) 14.7 105.2 — 17.4 137.2 Other revenue, net 4.2 14.9 6.5 — 25.6 Revenue 757.7 179.3 6.6 17.4 960.9 MSR valuation adjustments, net (1) (159.5) 41.7 — (17.4) (135.2) Operating expenses (2) (3) 331.9 114.4 129.5 — 575.7 Other income (expense): Interest income 7.1 7.0 1.9 — 16.0 Interest expense (90.7) (9.8) (8.9) — (109.4) Pledged MSR liability expense (269.1) — — — (269.1) Other, net 10.8 0.4 (4.4) — 6.7 Other expense, net (342.0) (2.5) (11.3) — (355.7) Income (loss) before income taxes $ (75.7) $ 104.2 $ (134.2) $ — $ (105.7) (1) Corporate Eliminations for 2022, 2021 and 2020 includes inter-segment derivatives eliminations of $15.7 million, $25.3 million and $17.4 million reported as Gain on loans held for sale, net (2) Included in Professional services expense for 2022 are reimbursements received from mortgage loan investors related to prior years legal expenses and payments received following resolution of legacy litigation matters of $27.6 million ($19.8 million Servicing and $7.8 million Corporate Items and Other). Professional services expense for 2021 (Servicing) includes $2.5 million reimbursements received from mortgage loan investors related to prior years legal expenses, and 2020 (Corporate Items and Other) includes an $8.0 million recovery of prior expenses received from a mortgage insurer. (3) In 2020, we executed certain cost re-engineering initiatives to generate further cost savings, some of which qualify as restructuring charges under GAAP, including the partial abandonment of certain leased properties and additional severance costs. As a result of these initiatives, we accelerated the depreciation of facility lease ROU assets and leasehold improvements by $3.3 million, recorded $6.3 million of facility and other related exit costs, and accrued $3.4 million of employee severance costs. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense (4) Effective in 2022, we recognize revaluation gains or losses on those Fannie Mae MSRs purchased through the Agency Cash Window Program that are sold to MAV within the Servicing segment (historically reported in the Originations segment). $5.6 million MSR valuation adjustments, net have been reclassified in 2021 from the Originations segment to the Servicing segment to conform to the current segment presentation. Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated December 31, 2022 $ 11,535.0 $ 570.5 $ 293.7 $ 12,399.2 December 31, 2021 10,999.2 823.5 324.4 12,147.1 December 31, 2020 9,847.6 379.2 424.3 10,651.1 Depreciation and Amortization Expense Servicing Originations Corporate Items and Other Business Segments Consolidated Year Ended December 31, 2022: Depreciation expense $ 0.9 $ 0.4 $ 9.2 $ 10.5 Amortization of debt discount and issuance costs 0.8 — 9.3 10.1 Amortization of intangible assets 4.3 — — 4.3 Year Ended December 31, 2021: Depreciation expense $ 0.7 $ 0.2 $ 9.3 $ 10.3 Amortization of debt discount and issuance costs 0.7 — 7.1 7.8 Amortization of intangible assets 0.7 — — 0.7 Year Ended December 31, 2020: Depreciation expense $ 0.9 $ 0.1 $ 18.1 $ 19.1 Amortization of debt discount and issuance costs 0.5 — 6.5 7.0 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity Related to HMBS Repurchases | Activity with regard to HMBS repurchases is as follows: Year Ended December 31, 2022 Active Inactive Total Number Amount Number Amount Number Amount Beginning balance 138 $ 35.3 448 $ 93.8 586 $ 129.1 Additions 644 175.1 221 60.6 865 235.7 Recoveries, net (1) (531) (139.6) (199) (42.6) (730) (182.2) Transfers 13 (0.2) (13) 0.2 — — Changes in value — 0.1 — (4.3) — (4.2) Ending balance 264 $ 70.7 457 $ 107.7 721 $ 178.4 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. |
Schedule of Future Minimum Rental Commitments under Non-cancelable Operating Leases | A maturity analysis of our lease liability as of December 31, 2022 is summarized as follows: 2023 $ 5.1 2024 4.4 2025 3.6 2026 3.0 2027 2.3 Thereafter 1.1 19.6 Less: Adjustment to present value (1) (3.0) Total lease payments, net $ 16.6 (1) At December 31, 2022, the weighted average of the discount rate used to estimate the present value was 8.7% based on our incremental borrowing rate. |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Liability for Representation and Warrant Obligations and Indemnification Obligations | The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations: Years Ended December 31, 2022 2021 2020 Beginning balance (1) $ 49.4 $ 40.4 $ 50.8 Provision (reversal) for representation and warranty obligations 0.3 3.2 (7.8) New production liability 3.0 4.7 2.6 Charge-offs and other (2) (11.2) 1.1 (5.3) Ending balance (1) $ 41.5 $ 49.4 $ 40.4 (1) The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our consolidated balance sheets. |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Employees | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 02, 2022 | May 03, 2021 | |
Description of Business and Basis of Presentation [Line Items] | |||||||||
Total number of employees | Employees | 4,900 | ||||||||
Threshold period past due for financing receivables to be delinquent | 89 days | ||||||||
Investment in equity method investee, net | $ 19 | $ 23.3 | $ 0 | ||||||
Distribution of earnings from equity method investee | $ 18.5 | 3.6 | $ 0 | ||||||
MAV Canopy HoldCo I LLC | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Ownership percentage | 15% | 15% | 15% | ||||||
Previously Reported | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Investment in equity method investee, net | $ 14 | $ 12 | $ 12 | $ 3.6 | |||||
Revision of Prior Period, Reclassification, Adjustment | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Distribution of earnings from equity method investee | $ 14 | $ 12 | $ 12 | $ 3.6 | |||||
Customer Contracts | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Estimated useful lives | five | ||||||||
Accounting Standards Update 2016-13 | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Cumulative-effect adjustments | $ 47 | ||||||||
India | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Total number of employees | Employees | 3,200 | ||||||||
Philippines | |||||||||
Description of Business and Basis of Presentation [Line Items] | |||||||||
Total number of employees | Employees | 500 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies - Change in Presentation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification [Line Items] | |||||||||||
Servicing Asset, Fair Value, Change in Fair Value, Valuation Input, Statement of Income or Comprehensive Income [Extensible Enumeration] | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | MSR valuation adjustments, net | |
Total other income (expense), net | $ (386,200,000) | $ (346,700,000) | $ (355,700,000) | ||||||||
MSR valuation adjustments, net | 10,400,000 | 98,500,000 | 135,200,000 | ||||||||
Income (loss) before income taxes | 24,900,000 | (4,400,000) | (105,700,000) | ||||||||
Net cash provided by (used in) operating activities | 173,200,000 | (468,400,000) | 261,000,000 | ||||||||
Investment in equity method investee, net | (19,000,000) | (23,300,000) | 0 | ||||||||
Distribution of earnings from equity method investee | 18,500,000 | 3,600,000 | 0 | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ 10,700,000 | (93,700,000) | (135,100,000) | ||||||||
Previously Reported | |||||||||||
Reclassification [Line Items] | |||||||||||
Investment in equity method investee, net | $ (14,000,000) | $ (12,000,000) | $ (12,000,000) | $ (3,600,000) | |||||||
Previously Reported | Loss (gain) on valuation of Pledged MSR financing liability | |||||||||||
Reclassification [Line Items] | |||||||||||
Loss (gain) on valuation of Pledged MSR financing liability | $ (3,700,000) | (89,600,000) | (39,900,000) | (55,500,000) | (6,700,000) | $ (61,300,000) | $ (8,400,000) | $ (1,600,000) | (77,900,000) | 17,900,000 | |
Previously Reported | Other Income (Expense) | |||||||||||
Reclassification [Line Items] | |||||||||||
Total other income (expense), net | (28,000,000) | 67,800,000 | 11,700,000 | 28,500,000 | 22,400,000 | (39,500,000) | 12,500,000 | 16,100,000 | 11,400,000 | 116,800,000 | |
Restatement Adjustment | |||||||||||
Reclassification [Line Items] | |||||||||||
MSR valuation adjustments, net | 5,600,000 | ||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||||||||
Revision of Prior Period, Reclassification, Adjustment | |||||||||||
Reclassification [Line Items] | |||||||||||
MSR valuation adjustments, net | (28,000,000) | 67,800,000 | 11,700,000 | 28,500,000 | 22,400,000 | (39,500,000) | 12,500,000 | 16,100,000 | 11,400,000 | 116,800,000 | |
Distribution of earnings from equity method investee | 14,000,000 | 12,000,000 | 12,000,000 | 3,600,000 | |||||||
Revision of Prior Period, Reclassification, Adjustment | MSR valuation adjustments, net | |||||||||||
Reclassification [Line Items] | |||||||||||
MSR valuation adjustments, net | $ 3,700,000 | $ 89,600,000 | $ 39,900,000 | $ 55,500,000 | $ 6,700,000 | $ 61,300,000 | $ 8,400,000 | $ 1,600,000 | $ 77,900,000 | $ (17,900,000) |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer Hardware and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Computer Hardware and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Term of the lease not to exceed useful life |
Right of Use (ROU) Assets | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Term of the lease not to exceed useful life |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Securitizations and Variable _3
Securitizations and Variable Interests Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | |||
Average period to securitization | 30 days | ||
Financing Receivable, Threshold Period Past Due | 60 days | 60 days | |
Ginnie Mae | |||
Servicing Assets at Fair Value [Line Items] | |||
Percentage of transferred residential loans serviced 60 days or more past due | 8.30% | 12% | |
Financing Receivable, Threshold Period Past Due | 60 days | ||
Forward Loans | |||
Servicing Assets at Fair Value [Line Items] | |||
MSRs retained | $ 234.7 | $ 222.7 | $ 68.7 |
Percentage of transferred residential loans serviced 60 days or more past due | 2.50% | 3.60% |
Securitizations and Variable _4
Securitizations and Variable Interests Entities - Summary of Cash Flows Received from and Paid to Securitization Trusts Related to Transfers Accounted for as Sales Outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |||
Proceeds received from securitizations | $ 17,027 | $ 19,293.2 | $ 7,533.3 |
Servicing fees collected | 91.8 | 63.7 | 47.2 |
Purchases of previously transferred assets, net of claims reimbursed | (11.4) | (17.4) | (6.9) |
Cash flows between transferor and transferee proceeds and payment related to transfers accounted for sales | $ 17,107.4 | $ 19,339.5 | $ 7,573.6 |
Securitizations and Variable _5
Securitizations and Variable Interests Entities - Schedule of Carrying Amounts of Assets that Relate to Continuing Involvement with Transferred Forward Loans (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | $ 37,571.1 | $ 31,864.8 |
Maximum exposure to loss (2) | 38,171.2 | 32,376.8 |
Ginnie Mae | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | 6,800 | 5,600 |
Mortgage Servicing Rights | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | 524.3 | 360.8 |
Advances | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | $ 75.9 | $ 151.2 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Schedule of Carrying Value of Assets and Liabilities of Loans Held for Sale Financing Facility (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Loans held for sale, at fair value | $ 617.8 | $ 917.5 | $ 366.4 | $ 208.8 |
Master Repurchase Agreement | Secured Debt | ||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Outstanding borrowings (Mortgage loan warehouse facilities) | 0 | 459.3 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||
Loans held for sale, at fair value | $ 0 | $ 462.1 |
Securitizations and Variable _7
Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Debt service accounts | $ 22.3 | $ 10 | $ 20.1 |
Prepaid lender fees, net | 7.7 | 7.2 | |
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512.3 | |
Match Funded Liabilities | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Match funded advances (related to VIEs) | 608.4 | 587.1 | |
Debt service accounts | 15.8 | 7.7 | |
Prepaid lender fees, net | 2.3 | 1.3 | |
Prepaid Interest | 0.9 | 0.2 | |
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 512.5 | 512.3 | |
Variable Interest Entity, Primary Beneficiary | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | $ 512.3 | $ 512.5 |
Securitizations and Variable _8
Securitizations and Variable Interests Entities - Schedule of Carrying Value of Assets and Liabilities of Agency MSR Financing Facility (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | $ 2,665.2 | $ 2,250.1 | |
Prepaid lender fees, net | 7.7 | 7.2 | |
Debt service accounts | $ 22.3 | $ 10 | $ 20.1 |
Securitizations and Variable _9
Securitizations and Variable Interest Entities - Carrying Value and Classification of Assets And Liabilities of PLS Notes Facility (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | $ 2,665.2 | $ 2,250.1 | |
Debt service accounts | 22.3 | 10 | $ 20.1 |
Prepaid lender fees, net | 7.7 | 7.2 | |
Secured Debt | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Senior notes | 953.8 | 900.8 | |
Unamortized debt issuance costs | 0.8 | 0.9 | |
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | Secured Debt | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Senior notes | 41.7 | ||
Variable Interest Entity, Primary Beneficiary | Agency and PLS Mortgage Servicing Rights Financing Facility | Secured Debt | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgage servicing rights, at fair value | 696.9 | 730.4 | |
Debt service accounts | 1.8 | 2.1 | |
Prepaid lender fees, net | 1.1 | 1.5 | |
Unamortized debt issuance costs | 0.8 | 0.4 | |
Short-term debt | $ 366.5 | $ 359.2 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||||
Loans held for sale, at fair value | $ 617.8 | $ 917.5 | $ 366.4 | $ 208.8 |
Total Loans held for sale | 617.8 | 917.5 | 366.4 | |
Investment in equity method investee | 42.2 | 23.3 | ||
Financial liabilities: | ||||
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512.3 | ||
Financing liabilities, at fair value: | ||||
HMBS-related borrowings | 7,326.8 | 6,885 | 6,772.7 | 6,063.4 |
Other financing liabilities | 1,137.4 | 805 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 953.8 | 900.8 | ||
Senior notes: | ||||
Senior Notes | 599.6 | 614.8 | ||
Mortgage Service Rights | ||||
MSRs | 2,665.2 | 2,250.1 | $ 1,294.8 | $ 1,486.4 |
Financing Liability Excess Servicing Spread | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 199 | 0 | ||
Carrying Value | ||||
Financial assets: | ||||
Total Loans held for sale | 622.7 | 928.5 | ||
Loans held for investment | 7,510.8 | 7,207.7 | ||
Financing liabilities, at fair value: | ||||
Total Other financing liabilities | 1,137.4 | 805 | ||
Senior notes: | ||||
Senior Notes | 599.6 | 614.8 | ||
Fair Value | ||||
Financial assets: | ||||
Total Loans held for sale | 622.7 | 928.5 | ||
Loans held for investment | 7,510.8 | 7,207.7 | ||
Financing liabilities, at fair value: | ||||
Total Other financing liabilities | 1,137.4 | 805 | ||
Senior notes: | ||||
Senior Notes | 555.2 | 674.9 | ||
Level 2 | Carrying Value | ||||
Financial assets: | ||||
Loans held for sale, at fair value | 617.8 | 917.5 | ||
Senior notes: | ||||
Senior unsecured notes | 369.4 | 392.6 | ||
Level 2 | Carrying Value | Option Contracts | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | 0 | (0.3) | ||
Level 2 | Fair Value | ||||
Financial assets: | ||||
Loans held for sale, at fair value | 617.8 | 917.5 | ||
Senior notes: | ||||
Senior unsecured notes | 331.4 | 413.5 | ||
Level 2 | Fair Value | Option Contracts | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | 0 | (0.3) | ||
Level 3 | Carrying Value | ||||
Financial assets: | ||||
Loans held for sale, at lower of cost or fair value | 4.9 | 11 | ||
Loans held for investment | 7,504.1 | 7,199.8 | ||
Advances (including match funded) | 718.9 | 772.4 | ||
Receivables, net | 180.8 | 180.7 | ||
Financial liabilities: | ||||
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512.3 | ||
Financing liabilities, at fair value: | ||||
HMBS-related borrowings | 7,326.8 | 6,885 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 953.8 | 900.8 | ||
Other | 702.7 | 1,085.1 | ||
Senior notes: | ||||
Senior secured notes | 230.2 | 222.2 | ||
Derivative financial instrument assets (liabilities), at fair value | ||||
Interest rate lock commitments | (0.7) | (18.1) | ||
Mortgage Service Rights | ||||
MSRs | 2,665.2 | 2,250.1 | ||
Level 3 | Carrying Value | Derivative [Member] | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (0.1) | (1.1) | ||
Level 3 | Carrying Value | Loans Held for Investments - Restricted for Securitization Investors | ||||
Financial assets: | ||||
Loans held for investment | 6.7 | 7.9 | ||
Level 3 | Carrying Value | Financing Liability - MSRs Pledged | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 931.7 | 797.1 | ||
Level 3 | Carrying Value | Financing Liability Owed to Securitization Investors | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 6.7 | 7.9 | ||
Level 3 | Carrying Value | Financing Liability Excess Servicing Spread | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 199 | 0 | ||
Level 3 | Fair Value | ||||
Financial assets: | ||||
Loans held for sale, at lower of cost or fair value | 4.9 | 11 | ||
Loans held for investment | 7,504.1 | 7,199.8 | ||
Advances (including match funded) | 718.9 | 772.4 | ||
Receivables, net | 180.8 | 180.7 | ||
Financial liabilities: | ||||
Advance match funded liabilities ($512.5 and $512.3 related to VIEs) | 513.7 | 512 | ||
Financing liabilities, at fair value: | ||||
HMBS-related borrowings | 7,326.8 | 6,885 | ||
Secured Debt [Abstract] | ||||
Long-term Line of Credit | 932.1 | 873.8 | ||
Other | 702.7 | 1,085.1 | ||
Senior notes: | ||||
Senior secured notes | 223.9 | 261.5 | ||
Derivative financial instrument assets (liabilities), at fair value | ||||
Interest rate lock commitments | (0.7) | (18.1) | ||
Mortgage Service Rights | ||||
MSRs | 2,665.2 | 2,250.1 | ||
Level 3 | Fair Value | Derivative [Member] | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (0.1) | (1.1) | ||
Level 3 | Fair Value | Loans Held for Investments - Restricted for Securitization Investors | ||||
Financial assets: | ||||
Loans held for investment | 6.7 | 7.9 | ||
Level 3 | Fair Value | Financing Liability - MSRs Pledged | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 931.7 | 797.1 | ||
Level 3 | Fair Value | Financing Liability Owed to Securitization Investors | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 6.7 | 7.9 | ||
Level 3 | Fair Value | Financing Liability Excess Servicing Spread | ||||
Financing liabilities, at fair value: | ||||
Other financing liabilities | 199 | 0 | ||
Level 1 | Carrying Value | Forward LHFS Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 0.5 | |||
Derivative liabilities | 0.4 | |||
Level 1 | Carrying Value | TBA/Forward Mortgage Backed Securities Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (0.7) | (0.3) | ||
Level 1 | Carrying Value | Interest Rate Swap | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | (13.6) | 1.7 | ||
Level 1 | Carrying Value | TBA Forward Pipelines Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 6.6 | 0 | ||
Level 1 | Fair Value | Forward LHFS Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | 0.5 | |||
Derivative liabilities | 0.4 | |||
Level 1 | Fair Value | TBA/Forward Mortgage Backed Securities Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative liabilities | (0.7) | (0.3) | ||
Level 1 | Fair Value | Interest Rate Swap | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | (13.6) | 1.7 | ||
Level 1 | Fair Value | TBA Forward Pipelines Trades | ||||
Derivative financial instrument assets (liabilities), at fair value | ||||
Derivative Asset | $ 6.6 | $ 0 |
Fair Value - Schedule of Carr_2
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments and Nonfinancial Assets Measured at Fair Value on a Recurring or Non-recurring basis or Disclosed, but not Carried, at Fair Value (Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | May 03, 2021 | Mar. 04, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 599.6 | $ 614.8 | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 199.5 | |||
Level 3 | 7.875% Senior Notes, Due 2026 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 400 | |||
Level 3 | 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior Notes | $ 85.5 | |||
Ginnie Mae | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans repurchased | $ 32.1 | $ 220.9 |
Fair Value - Summary of Reconci
Fair Value - Summary of Reconciliation of the Changes in Fair Value of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total realized and unrealized gains and (losses): | |||
Gain (loss) on derivatives, net | $ (23.5) | $ (13.3) | $ 35.3 |
FairValueRecurringBasisUnobservableInputReconciliationAssetGainLossStatementOfIncomeExtensibleListNotDisclosedFlag | Change in fair value included in earnings (1) | ||
Interest Rate Lock Commitments [Member] | |||
Total realized and unrealized gains and (losses): | |||
Gain (loss) on derivatives, net | $ (18.8) | (4.6) | 17.8 |
Loans Held for Investments - Restricted for Securitization Investors | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 7.9 | 9.8 | 23.3 |
Purchases, issuances, sales and settlements | |||
Deconsolidation of mortgage-backed securitization trusts | (10.7) | ||
Settlements | (1.2) | (1.9) | (2.9) |
Purchases, issuances, sales and settlements, total | (1.2) | (1.9) | (13.6) |
Total realized and unrealized gains and (losses): | |||
Ending balance | 6.7 | 7.9 | 9.8 |
Financing Liability Owed to Securitization Investors | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | (7.9) | (9.8) | (22) |
Purchases, issuances, sales and settlements | |||
Deconsolidation of mortgage-backed securitization trusts | 9.5 | ||
Settlements | 1.2 | 1.9 | 2.9 |
Purchases, issuances, sales and settlements, total | 1.2 | 1.9 | 12.4 |
Total realized and unrealized gains and (losses): | |||
Included in earnings | 0 | ||
Ending balance | (6.7) | (7.9) | (9.8) |
Loans Held-For-Sale, Fair Value | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 220.9 | 51.1 | 0 |
Purchases, issuances, sales and settlements | |||
Purchases | 140.4 | 436.2 | 162.6 |
Sales | (318) | (260) | (137.8) |
Receivables, net | (4.2) | (1.6) | (1) |
Other assets | (0.3) | (0.4) | |
Purchases, issuances, sales and settlements, total | (182.1) | 174.1 | 23.8 |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (6.8) | 4.3 | (1.7) |
Transfers in and / or out of Level 3 | 25.6 | ||
Ending balance | 32.1 | 220.9 | 51.1 |
ESS Financing Liability | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | ||
Purchases, issuances, sales and settlements | |||
Purchases | 0 | ||
Issuances | (200.9) | ||
Sales | 0 | ||
Settlements | 6.6 | ||
Loans held for sale, at fair value (1) | 0 | ||
Receivables, net | 0 | ||
Purchases, issuances, sales and settlements, total | (200.4) | ||
Total realized and unrealized gains and (losses): | |||
Included in earnings | (1.4) | ||
Ending balance | (199) | 0 | |
Other assets and liabilities | (6.1) | ||
Mortgage Backed Securities | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | 2 | 2.1 |
Purchases, issuances, sales and settlements | |||
Sales | (1.6) | ||
Loans held for sale, at fair value (1) | 0 | ||
Purchases, issuances, sales and settlements, total | (1.6) | 0 | |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (0.4) | 0.1 | |
Ending balance | 0 | 2 | |
Other assets and liabilities | 0 | ||
IRLCs | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 18.1 | ||
Purchases, issuances, sales and settlements | |||
Issuances | 168 | 627.7 | 287 |
Loans held for sale, at fair value (1) | (141.5) | (591.7) | (285.2) |
Purchases, issuances, sales and settlements, total | 26.5 | 36 | |
Total realized and unrealized gains and (losses): | |||
Included in earnings | (45.3) | ||
Ending balance | $ (0.7) | 18.1 | |
Other assets and liabilities | 0 | ||
Interest Rate Caps | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 22.7 | 0 | |
Purchases, issuances, sales and settlements | |||
Purchases, issuances, sales and settlements, total | 1.8 | ||
Total realized and unrealized gains and (losses): | |||
Included in earnings | $ (40.6) | (10.4) | |
Transfers in and / or out of Level 3 | 10.5 | ||
Ending balance | $ 22.7 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Assumptions used in Valuation (Details) | Dec. 31, 2022 year USD ($) | Dec. 31, 2021 USD ($) year |
Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 5 | 5.7 |
Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 5 | 5.7 |
Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.180 | 0.160 |
Weighted average prepayment speed | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.069 | 0.085 |
Weighted average prepayment speed | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.079 | 0.121 |
Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.180 | 0.160 |
Weighted average prepayment speed | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.076 | 0.109 |
Weighted average delinquency rate | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.014 | 0.012 |
Weighted average delinquency rate | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.101 | 0.119 |
Weighted average delinquency rate | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.071 | 0.088 |
Weighted average discount rate | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.051 | 0.026 |
Weighted average discount rate | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.096 | 0.085 |
Weighted average discount rate | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.106 | 0.112 |
Weighted average discount rate | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.050 | 0.025 |
Weighted average discount rate | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.102 | 0.105 |
Weighted average cost to service (in dollars) | Fair Value Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 72 | 71 |
Weighted average cost to service (in dollars) | Fair Value Non-Agency Mortgage Servicing Rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 201 | 205 |
Weighted average cost to service (in dollars) | Mortgage Servicing Rights Pledged | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | $ | 174 | 182 |
Minimum | Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 1 | 1 |
Minimum | Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 1 | 1 |
Minimum | Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.132 | 0.112 |
Minimum | Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.132 | 0.112 |
Maximum | Life in years | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 7.6 | 8.2 |
Maximum | Life in years | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 7.6 | 8.2 |
Maximum | Weighted average prepayment speed | Loans Held for Investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.450 | 0.366 |
Maximum | Weighted average prepayment speed | HMBS - Related Borrowings | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement inputs | 0.450 | 0.366 |
Fair Value - Sensitivity Analys
Fair Value - Sensitivity Analysis (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Weighted average prepayment speeds, 10% (in percentage points) | 0.008 |
Weighted average prepayment speeds, 20% (in percentage points) | 0.016 |
Weighted average prepayment speeds, 10% | $ (61.7) |
Weighted average prepayment speeds, 20% | $ (120.8) |
Discount rate (Option-adjusted spread), 10% (in percentage points) | 0.010 |
Discount rate (Option-adjusted spread), 20% (in percentage points) | 0.019 |
Discount rate (Option-adjusted spread), 10% | $ (76.1) |
Discount rate (Option-adjusted spread), 20% | $ (146.2) |
Loans Held for Sale - Summary o
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement In Loans Held For Sale At Fair Value [Roll Forward] | |||
Beginning balance | $ 917.5 | $ 366.4 | $ 208.8 |
Originations and purchases | 17,582 | 19,972.4 | 7,552 |
Proceeds from sales | (17,477.2) | (19,279.1) | (7,344.2) |
Principal collections | (106.9) | (58.6) | (26) |
Loans held for investment, at fair value | 8 | 4.3 | 3.1 |
Receivables | (13.2) | (33.6) | (85) |
Real estate owned (Other assets) | (3.1) | (8.4) | (3.7) |
Realized gain (loss) on sale of loans | (290) | (69.9) | 50.2 |
Capitalization of advances on Ginnie Mae modifications | 18.1 | 24.8 | 12.8 |
Fair value gain (loss) on loans held for sale | (9) | (0.9) | 1.1 |
Other | (8.4) | 0.5 | (2.8) |
Ending balance | 617.8 | 917.5 | 366.4 |
Principal amount outstanding on loans held for sale | 623.7 | 910.4 | 364 |
Premium (discount) balance on loans held for sale | 7.4 | 11.5 | 9.1 |
Fair value adjustment to loans held for sale | (13.3) | (4.4) | (6.7) |
Mortgages Held-for-sale, Fair Value Disclosure | $ 617.8 | $ 917.5 | $ 366.4 |
Loans Held for Sale - Summary_2
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Fair Value (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale, at fair value | $ 617.8 | $ 917.5 | $ 366.4 | $ 208.8 |
Repurchased Ginnie Mae Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale, at fair value | $ 32.1 | $ 220.9 | $ 51.1 |
Loans Held for Sale - Summary_3
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Carrying amount before valuation allowance | $ 8.8 | $ 15.4 | $ 27.7 |
Financing Receivable, Allowance for Credit Loss, Current | (4) | (4.4) | (6.2) |
Loans Held For Sale At Lower Of Cost Or Fair Value | $ 4.9 | $ 11 | $ 21.5 |
Loans Held for Sale - Summary_4
Loans Held for Sale - Summary of Activity in Balance of Loans Held for Sale, at Lower of Cost or Fair Value (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Ginnie Mae | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at lower of cost or fair value | $ 1 | $ 2.7 | $ 12.5 |
Loans Held for Sale - Summary_5
Loans Held for Sale - Summary of Activity in Gain on Loans Held for Sale, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain (loss) on sales of loans, net | $ (53.4) | $ 153.3 | $ 130.1 |
Change in fair value of IRLCs | (17.4) | (6.2) | 17.5 |
Change in fair value of loans held for sale | (5.9) | 1.9 | 2.3 |
Gain (loss) on economic hedge instruments | 101.7 | 1.5 | (10.1) |
Other | (3) | (4.7) | (2.6) |
Gain on loans held for sale, net | 22 | 145.8 | 137.2 |
Intersegment Eliminations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain on loans held for sale, net | (15.7) | (25.3) | 17.4 |
Gains on derivatives | (15.7) | (25.3) | |
Intersegment Eliminations | Economic Hedge | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gains on derivatives | 15.7 | 25.3 | (17.4) |
MSRs Retained on Transfers of Forward Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain (loss) on sales of loans, net | 234.7 | 222.7 | 68.7 |
Forward Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain (loss) on sales of loans, net | (278) | (87.8) | 45.5 |
Financing Receivable, Amount Purchased with Credit Deterioration, Gain (Loss) on Loan | 27.1 | ||
Repurchased Ginnie Mae Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gain (loss) on sales of loans, net | (10.1) | $ 18.4 | $ 15.9 |
Financing Receivable, Amount Purchased with Credit Deterioration, Gain (Loss) on Loan | 8.8 | ||
mpaired Financing Receivable, Unpaid Principal Balance, Net Of MSR Fair Value Adjustments | $ 299.7 |
Reverse Mortgages - Schedule of
Reverse Mortgages - Schedule of Loans Held For Investment and HMBS Related Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Loans held for investment - reverse mortgages, beginning balance | $ 7,199.8 | $ 6,997.1 | $ 6,269.6 |
Cumulative effect of fair value election | 0 | 47 | |
Originations | 1,658.1 | 1,763.4 | 1,203.6 |
Securitization of HECM loans accounted for as a financing | (1,780.4) | (1,674.9) | (1,232.6) |
Additional proceeds from securitization of HECM loans and tails | (25.2) | (44.6) | (40.9) |
HMBS related borrowings, acquisitions. | (209.1) | ||
Repayments (principal payments received) | (1,579.9) | (1,626.4) | (944.7) |
Loans held for sale, at fair value | (8) | (3.4) | (3.1) |
Receivables, net | 2.1 | (0.3) | (0.2) |
REO (Other assets) | (0.4) | (0.3) | (0.5) |
Change in fair value | 21.1 | 69.7 | 425.4 |
Securitized loans (pledged to HMBS-Related Borrowings) | 6,979.1 | 6,872.2 | |
Un-securitized loans | 220.7 | 124.9 | |
Loans held for investment, reverse mortgages, ending balance | 7,504.1 | 7,199.8 | 6,997.1 |
HMBS Related Borrowings, Beginning Balance | (6,885) | (6,772.7) | (6,063.4) |
Repayments (principal payments received) | 1,568.4 | 1,614.3 | 935.8 |
Change in fair value | 4.5 | (7.1) | (371.5) |
HMBS Related Borrowings, Ending Balance | (7,326.8) | (6,885) | $ (6,772.7) |
Loans held for investment, reverse mortgages, acquisitions. | 211.3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | 7,510.8 | 7,207.6 | |
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | 7,510.8 | $ 7,207.6 | |
Senior Lien | |||
Receivables [Abstract] | |||
Loans held for investment - securitized | 7,392.6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment - securitized | 7,392.6 | ||
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | 111.5 | ||
Loans held for sale ($617.8 and $917.5 carried at fair value) ($0.0 and $462.1 related to VIEs) | $ 111.5 |
Reverse Mortgages - Schedule _2
Reverse Mortgages - Schedule of Reverse Mortgage Revenue, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Liability Gain Loss, Statement Of Income, Extensible Enumeration, Not Disclosed Flag | Fair value gains (losses) included in earnings (2)(4) | Fair value gains (losses) included in earnings (2)(4) | Fair value gains (losses) included in earnings (2)(4) |
Gain on new originations | $ 50.7 | $ 65 | $ 46.3 |
Gain on tail securitization | 11.2 | 21.6 | 24.4 |
Net interest income (servicing fee) | 21.9 | 19.9 | 19.2 |
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net | (58.2) | (43.8) | (36) |
Change in fair value included in earnings, net | 25.6 | 62.7 | 53.9 |
Loan fees and other | 10.5 | 17 | 6.8 |
Reverse mortgage revenue, net | $ 36.1 | $ 79.7 | $ 60.7 |
Advances - Schedule of Advance
Advances - Schedule of Advance Payments by Financial Institution on Foreclosed Properties (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | $ 725.1 | $ 779.5 | ||
Allowance for losses | (6.2) | (7) | $ (6.3) | $ (9.9) |
Advances, net | 718.9 | 772.4 | $ 828.2 | |
Principal and interest | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | 215.5 | 228 | ||
Taxes and insurance | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | 367.5 | 381 | ||
Foreclosures, bankruptcy, REO and other | ||||
Advances On Behalf of Borrowers [Line Items] | ||||
Advances | $ 142.1 | $ 170.4 |
Advances - Schedule of Activity
Advances - Schedule of Activity in Advances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Advances [Roll Forward] | |||
Advances, beginning balance | $ 779.5 | $ 834.5 | $ 1,066.4 |
Asset acquisition | 0 | 6.9 | 0 |
New advances | 784.8 | 831.2 | 890.4 |
Sales of advances | (2.9) | (1.3) | (0.8) |
Collections of advances and other | (842.8) | (888.2) | (1,119) |
Advances, ending balance | 725.1 | 779.5 | 834.5 |
Advances, net | 718.9 | 772.4 | 828.2 |
Transfer to Other assets | $ (6.5) | $ 3.7 | $ 2.5 |
Advances - Schedule of Change i
Advances - Schedule of Change in Allowance for Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance, allowance for losses | $ (7) | $ (6.3) | $ (9.9) |
Provision | (7.2) | (8.1) | (7.8) |
Net charge-offs and other | 8 | 7.4 | 11.4 |
Ending balance, allowance for losses | $ (6.2) | $ (7) | $ (6.3) |
Mortgage Servicing - Summary of
Mortgage Servicing - Summary of Activity Related to Fair Value Servicing Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 2,250.1 | $ 1,294.8 | $ 1,486.4 | |
Sales | (154.4) | 0 | (0.1) | |
Recognized on the sale of residential mortgage loans | 234.7 | 222.7 | 68.7 | |
Purchase of MSRs | $ 575.3 | 181.6 | 844.1 | 285.1 |
Servicing transfers and adjustments | (25.3) | (10.8) | (265.8) | |
Servicing assets at fair value, net additions recognized | 236.6 | 1,056 | 87.9 | |
Changes in valuation inputs or assumptions | $ 454 | $ 149.5 | $ (108.1) | |
ServicingAssetAtFairValueOtherChangeInFairValueStatementOfIncomeOrComprehensiveIncomeExtensibleEnumerationNotDisclosedFlag | Realization of cash flows | Realization of cash flows | Realization of cash flows | |
Realization of cash flows | $ (275.5) | $ (250.2) | $ (171.4) | |
Ending balance | 2,665.2 | 2,250.1 | 1,294.8 | |
Servicing Asset at Fair Value, Period Increase (Decrease) | $ 178.5 | $ (100.7) | (279.5) | |
Financing Receivable, Percent Past Due | 11.10% | 10.50% | ||
Derivative, Gain (Loss) on Derivative, Net | $ 23.5 | $ 13.3 | (35.3) | |
MSR valuation adjustments, net | (10.4) | (98.5) | (135.2) | |
MSR realization of expected cash flows | 275.2 | 250.2 | 171.4 | |
Total MSR fair value gains (losses) | (176.5) | 100.4 | ||
Servicing Asset at Fair Value, Changes in Fair Value Resulting from Changes in Valuation Inputs or Changes in Assumptions | (451.7) | (149.8) | 108.1 | |
Financing Liability Excess Servicing Spread | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Changes in fair value | (1.4) | 0 | 0 | |
Runoff and Settlements | 6.6 | 0 | 0 | |
Total Fair value changes in Servicing liability at fair value | 8 | 0 | 0 | |
ESS Financing Liability | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Changes in fair value | 192.1 | 77.9 | (3.8) | |
Runoff and Settlements | 104.1 | 89.4 | 113 | |
Total Fair value changes in Servicing liability at fair value | (88) | 11.4 | 116.8 | |
Derivative, Gain (Loss) on Derivative, Net | $ (106.9) | $ (9.5) | 27.5 | |
Financial Asset, 30 to 59 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 4.80% | 4.10% | ||
Financial Asset, 60 to 89 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 1.80% | 1.60% | ||
Financial Asset, Equal to or Greater than 90 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 4.50% | 4.80% | ||
Fair Value Agency Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 1,571.8 | $ 578.9 | 714 | |
Sales | (154.4) | 0 | 0 | |
Recognized on the sale of residential mortgage loans | 234.7 | 222.7 | 68.7 | |
Purchase of MSRs | 181.6 | 844.1 | 285.1 | |
Servicing transfers and adjustments | (24.3) | 0.1 | (266.2) | |
Servicing assets at fair value, net additions recognized | 237.6 | 1,067 | 87.6 | |
Changes in valuation inputs or assumptions | 307.8 | 62.4 | (145.3) | |
Realization of cash flows | (185.4) | (136.5) | (77.4) | |
Ending balance | 1,931.8 | 1,571.8 | 578.9 | |
Servicing Asset at Fair Value, Period Increase (Decrease) | $ 122.4 | $ (74.1) | (222.7) | |
Financing Receivable, Percent Past Due | 3.30% | 3.70% | ||
Fair Value Agency Mortgage Servicing Rights | Financial Asset, 30 to 59 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 1.70% | 1.40% | ||
Fair Value Agency Mortgage Servicing Rights | Financial Asset, 60 to 89 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 0.50% | 0.40% | ||
Fair Value Agency Mortgage Servicing Rights | Financial Asset, Equal to or Greater than 90 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 1.10% | 1.90% | ||
Fair Value Non-Agency Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 678.3 | $ 715.9 | 772.4 | |
Sales | 0 | 0 | (0.1) | |
Recognized on the sale of residential mortgage loans | 0 | 0 | 0 | |
Purchase of MSRs | 0 | 0 | 0 | |
Servicing transfers and adjustments | (0.9) | (10.9) | 0.4 | |
Servicing assets at fair value, net additions recognized | (0.9) | (10.9) | 0.3 | |
Changes in valuation inputs or assumptions | 146.2 | 87.1 | 37.3 | |
Realization of cash flows | (90.1) | (113.7) | (94) | |
Ending balance | 733.5 | 678.3 | 715.9 | |
Servicing Asset at Fair Value, Period Increase (Decrease) | $ 56.1 | $ (26.7) | $ (56.8) | |
Financing Receivable, Percent Past Due | 20.40% | 18% | ||
Fair Value Non-Agency Mortgage Servicing Rights | Financial Asset, 30 to 59 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 8.50% | 7.20% | ||
Fair Value Non-Agency Mortgage Servicing Rights | Financial Asset, 60 to 89 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 3.30% | 2.80% | ||
Fair Value Non-Agency Mortgage Servicing Rights | Financial Asset, Equal to or Greater than 90 Days Past Due | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Financing Receivable, Percent Past Due | 8.60% | 8% |
Mortgage Servicing - Summary _2
Mortgage Servicing - Summary of Activity Related to Fair Value Servicing Assets (Footnotes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||||
Servicing transfers and adjustments | $ 25.3 | $ 10.8 | $ 265.8 | |
UPB of loans serviced on behalf of NRZ | 49,100 | |||
NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing transfers and adjustments | $ 263.7 | 39 | ||
MAV | ||||
Servicing Assets at Fair Value [Line Items] | ||||
UPB of loans serviced on behalf of NRZ | $ 2,900 |
Mortgage Servicing - Schedule o
Mortgage Servicing - Schedule of Composition of Servicing UPB (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 199,600 | 205,600 | ||
Servicing Asset at Fair Value, Amount | $ 2,665.2 | $ 2,250.1 | $ 1,294.8 | $ 1,486.4 |
UPB of loans transferred | $ 37,571.1 | 31,864.8 | ||
NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 10,800 | |||
UPB of loans transferred | $ 36,400 | |||
MAV | ||||
Servicing Assets at Fair Value [Line Items] | ||||
UPB of loans transferred | $ 7,400 | $ 24,900 | ||
Owned Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 126,200 | 127,900 | ||
Servicing Asset at Fair Value, Amount | $ 1,710.6 | $ 1,422.5 | ||
NRZ Transferred Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 47,300 | 53,700 | ||
NRZ Transferred Mortgage Servicing Rights | NRZ | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing Asset at Fair Value, Amount | $ 601.2 | $ 558.9 | ||
MAV Transferred Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
MSR UPB | 26,100 | 24,000 | ||
Servicing Asset at Fair Value, Amount | $ 353.4 | $ 268.7 |
Mortgage Servicing - Narrative
Mortgage Servicing - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of portfolio loans acquired | $ 46,800 | $ 15,700 | $ 75,600 | $ 31,700 |
Float balances | 1,540 | 2,070 | 1,740 | |
Purchase of MSRs | $ 575.3 | 181.6 | 844.1 | 285.1 |
Agency and Non-Agency Mortgage Servicing Rights | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of MSRs sold | $ 11,700 | $ 32 | $ 80 |
Mortgage Servicing - Summary _3
Mortgage Servicing - Summary of Geographic Distributions of UPB and Count of Residential Loans and Real Estate Serviced (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 199,600 | 205,600 |
Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 289.8 | |
Count | loan | 1,378,800 | |
California | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 68.9 | |
Count | loan | 224,800 | |
Texas | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 20.8 | |
Count | loan | 117,600 | |
Florida | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 19.3 | |
Count | loan | 109,100 | |
New York | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 19.2 | |
Count | loan | 69,900 | |
New Jersey | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 14.1 | |
Count | loan | 56,100 | |
Other | Residential Mortgage | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Amount | 147.5 | |
Count | loan | 801,300 |
Mortgage Servicing - Schedule_2
Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |||
Servicing | $ 337.8 | $ 339.2 | $ 216.3 |
Subservicing | 72.9 | 21.1 | 28.9 |
MAV | 72.8 | 15.7 | 0 |
Rithm (1) | 255 | 304.2 | 383.7 |
Servicing and Subservicing fees, total | 738.5 | 680.3 | 628.8 |
Late charges | 41 | 40.9 | 47.7 |
Recording Fees | 8.5 | 16 | 14.3 |
Loan collection fees | 11.1 | 11.7 | 12.9 |
Boarding and De-Boarding Fees | 5.8 | 10.5 | 11.1 |
Custodial accounts (float earnings) | 26.2 | 4.7 | 9.9 |
GSE forbearance fees | 0.8 | 1.5 | 1.2 |
Reverse subservicing ancillary income | 20.4 | 1.4 | 0 |
Other | 10.3 | 14.8 | 11.3 |
Fees, total | 124.1 | 101.6 | 108.5 |
Servicing and subservicing fees | $ 862.6 | $ 781.9 | $ 737.3 |
MSR Transfers Not Qualifying _3
MSR Transfers Not Qualifying for Sale Accounting - pledged MSR liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | $ 567 | |||
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements | $ (35.9) | 0 | $ (263.7) | |
Pledged MSR liability | 567 | |||
Other income (expense) - Pledged MSR liability expense | 255 | 221.3 | 269.1 | |
UPB of loans serviced on behalf of NRZ | 49,100 | |||
Servicing fees collected on behalf of NRZ | 322.5 | 318.4 | 383.7 | |
Less: Subservicing fee retained | (82.8) | (90.4) | (104.8) | |
Ancillary and other settlement | 6.1 | (6.7) | (9.7) | |
ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | $ 797.1 | 797.1 | 567 | 950.6 |
Sales | (86.3) | (250) | 0.2 | |
Changes in fair value | 192.1 | 77.9 | (3.8) | |
Runoff and Settlements | (104.1) | (89.4) | (113) | |
Total Fair value changes in Servicing liability at fair value | 88 | (11.4) | (116.8) | |
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements | 263.7 | |||
Calls | (0.7) | (8.5) | (3) | |
Pledged MSR liability | 931.7 | 797.1 | 567 | |
Changes in fair value | 14.1 | 14.1 | ||
Derecognition Of Financing Liability | (39) | |||
Other income (expense) - Pledged MSR liability expense | 245.9 | |||
Financing Liability Excess Servicing Spread | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Changes in fair value | (1.4) | 0 | 0 | |
Runoff and Settlements | (6.6) | 0 | 0 | |
Total Fair value changes in Servicing liability at fair value | (8) | 0 | 0 | |
Other income (expense) - Pledged MSR liability expense | 9.1 | |||
MAV | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
UPB of loans serviced on behalf of NRZ | 2,900 | |||
Servicing fees collected on behalf of NRZ | 67.5 | 14.2 | ||
Less: Subservicing fee retained | (8.8) | (2) | ||
MAV | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | 238.1 | 238.1 | 0 | |
Sales | (85.6) | (250) | ||
Changes in fair value | 78.3 | (4.3) | ||
Runoff and Settlements | (33.2) | (7.5) | ||
Total Fair value changes in Servicing liability at fair value | 45.1 | (11.9) | ||
Pledged MSR liability | 329.8 | 238.1 | 0 | |
NRZ | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Other income (expense) - Pledged MSR liability expense | 204.7 | |||
Servicing fees collected on behalf of NRZ | 304.2 | |||
Less: Subservicing fee retained | (88.4) | |||
Ancillary and other settlement | (11.1) | |||
Rithm Capital Corp . and others | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Other income (expense) - Pledged MSR liability expense | 186.7 | |||
Servicing fees collected on behalf of NRZ | 255 | |||
Less: Subservicing fee retained | (74) | |||
Ancillary and other settlement | 5.7 | |||
Rithm Capital Corp . and others | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | 558.9 | 558.9 | ||
Sales | (0.6) | |||
Changes in fair value | 113.8 | |||
Runoff and Settlements | (70.9) | |||
Total Fair value changes in Servicing liability at fair value | 43 | |||
Calls | (0.7) | |||
Pledged MSR liability | 601.9 | 558.9 | ||
MAV Asset Vehicle LLC | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Other income (expense) - Pledged MSR liability expense | 59.1 | |||
UPB of loans serviced on behalf of NRZ | 2,900 | |||
Ancillary and other settlement | 0.4 | 4.4 | ||
MAV Asset Vehicle LLC | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Derecognition Of Financing Liability | (39) | |||
Original Rights to MSRs Agreements | NRZ | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | $ 558.9 | $ 558.9 | 567 | 603 |
Sales | 0 | |||
Changes in fair value | 82.3 | 36.1 | ||
Runoff and Settlements | (81.8) | (70.4) | ||
Total Fair value changes in Servicing liability at fair value | 0.5 | (34.3) | ||
Calls | (8.5) | (1.8) | ||
Pledged MSR liability | 558.9 | 567 | ||
PMC MSR Agreements | NRZ | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | 0 | 312.1 | ||
Sales | 0.2 | |||
Changes in fair value | (40.7) | |||
Runoff and Settlements | (7.5) | |||
Total Fair value changes in Servicing liability at fair value | (48.2) | |||
Derecognition of Pledged MSR financing liability due to termination of PMC MSR Agreements | 263.7 | |||
Calls | 0 | |||
Pledged MSR liability | 0 | |||
2017 Agreements and New RMSR Agreements | NRZ | ESS Financing Liability | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Pledged MSR liability | $ 0 | 35.4 | ||
Changes in fair value | 0.9 | |||
Runoff and Settlements | (35.1) | |||
Total Fair value changes in Servicing liability at fair value | (34.2) | |||
Calls | (1.2) | |||
Pledged MSR liability | $ 0 |
MSR Transfers Not Qualifying _4
MSR Transfers Not Qualifying for Sale Accounting - Schedule of Assets, Liabilities, Servicing and Subservicing Fees Related to NRZ Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Liabilities at Fair Value [Line Items] | ||||
Servicing Asset at Fair Value, Amount | $ 2,665.2 | $ 2,250.1 | $ 1,294.8 | $ 1,486.4 |
Due to NRZ | 64.4 | 76.6 | ||
Other financing liabilities | 1,137.4 | 805 | ||
Servicing fees collected on behalf of NRZ | 322.5 | 318.4 | 383.7 | |
Less: Subservicing fee retained | (82.8) | (90.4) | (104.8) | |
Other income (expense) - Pledged MSR liability expense | 255 | 221.3 | $ 269.1 | |
NRZ | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Servicing fees collected on behalf of NRZ | 304.2 | |||
Less: Subservicing fee retained | (88.4) | |||
Other income (expense) - Pledged MSR liability expense | 204.7 | |||
MAV | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Servicing fees collected on behalf of NRZ | 67.5 | 14.2 | ||
Less: Subservicing fee retained | (8.8) | (2) | ||
Early Payment Protection | $ 4 | |||
Financing Liability - MSRs Pledged | ||||
Servicing Liabilities at Fair Value [Line Items] | ||||
Other income (expense) - Pledged MSR liability expense | $ 245.9 |
MSR Transfers Not Qualifying _5
MSR Transfers Not Qualifying for Sale Accounting - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||||
Proceeds from sale of mortgage servicing rights accounted for as financing | $ 86.2 | $ 247 | $ 0 | |
UPB of loans serviced on behalf of NRZ | 49,100 | |||
Unpaid Principal Balance of Loans Related to Termination | $ 34,200 | |||
NRZ | Mortgage Servicing Rights Title Retained | 2017 Agreements and New RMSR Agreements | ||||
Servicing Assets at Fair Value [Line Items] | ||||
UPB of loans serviced on behalf of NRZ | 10,800 | |||
NRZ | Subservicing Assets | ||||
Servicing Assets at Fair Value [Line Items] | ||||
UPB of loans serviced on behalf of NRZ | $ 1,900 |
MSR Transfers Not Qualifying _6
MSR Transfers Not Qualifying for Sale Accounting - UPB of Loans Serviced on behalf of NRZ (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Servicing Assets at Fair Value [Line Items] | |
UPB of loans serviced on behalf of NRZ | $ 49.1 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Government-insured loan claims - Forward | $ 65 | $ 90.6 |
Government-insured loan claims - Reverse | 73.8 | 39.9 |
Due from custodial accounts | 16.3 | 7.8 |
Subservicing Fee Receivables | 6.4 | 6.7 |
Reimbursable expenses | 5.3 | 6.1 |
Receivable from sale of MSRs (holdback) | 1.5 | 0 |
Subservicing fees and reimbursable expenses - Due from Rithm | 3 | 3.8 |
Subservicing fees, reimbursable expenses and other - Due from MAV | 1 | 4.9 |
Other | 3.2 | 1.2 |
Servicing | 175.5 | 160.9 |
Income taxes receivable (1) | 34.4 | 56.8 |
Due from MAV | 0.6 | 1 |
Other receivables | 4.6 | 3.8 |
Other receivables, gross | 215.1 | 222.5 |
Allowance for losses | (34.3) | (41.7) |
Receivables, total | 180.8 | 180.7 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Income taxes receivable (1) | 34.4 | $ 56.8 |
USVI Bureau of Internal Revenue | ||
Receivables [Abstract] | ||
Income taxes receivable (1) | 32.5 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Income taxes receivable (1) | $ 32.5 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Delinquent FHA or VA Insured Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for losses related to defaulted FHA or VA insured loans | $ 33.8 | $ 41.5 |
Receivables Schedule of Changes
Receivables Schedule of Changes in Allowance for Loan Losses (Details) - Government Insured Loans Claims - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 41.5 | $ 38.3 | $ 56.9 |
Provision | 12.5 | 14.4 | 18.1 |
Net charge-offs and other | (20.2) | (11.3) | (36.7) |
Ending balance | $ 33.8 | $ 41.5 | $ 38.3 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 70.9 | $ 83.8 |
Less accumulated depreciation and amortization | (50.7) | (70.2) |
Premises and equipment, net | 20.2 | 13.7 |
Computer Hardware | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25.6 | 25.5 |
Operating Lease ROU Assets | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 21 | 22.9 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5.3 | 13.8 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 15.7 | 17 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 3.3 | $ 4.7 |
Investment in Equity Method I_2
Investment in Equity Method Investee (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||
May 03, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 02, 2022 | Nov. 01, 2022 | Jun. 01, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Capital contribution | $ 5 | |||||||
UPB of portfolio loans acquired | $ 15,700 | $ 75,600 | $ 46,800 | $ 31,700 | ||||
Cash proceeds received | $ 4.4 | |||||||
UPB of loans serviced on behalf of NRZ | 49,100 | |||||||
ESS Financing Liability | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Changes in fair value | $ 14.1 | 14.1 | ||||||
Joint Marketing Agreement and Recapture Agreement | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
UPB of MSRs sold | 275.1 | 0 | ||||||
MAV Canopy HoldCo I LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in equity method investee | $ 250 | $ 250 | ||||||
Ownership percentage | 15% | 15% | 15% | |||||
Oaktree | MAV Canopy HoldCo I LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 85% | 85% | ||||||
MAV Asset Vehicle LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
UIPB of loans subserviced | $ 48,200 | |||||||
UPB of loans serviced on behalf of NRZ | 2,900 | |||||||
Forward Bulk Servicing Rights Purchase and Sale Agreement | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
UPB of MSRs sold | 6,600 | 4,300 | ||||||
Bulk Mortgage Servicing Rights Purchase and Sale Agreements | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
UPB of MSRs sold | 600 | $ 20,700 | ||||||
Mortgage Servicing Rights Title Transferred | MAV Asset Vehicle LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
UPB of loans serviced on behalf of NRZ | 26,100 | |||||||
Maximum | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Management fee expense | $ 0.4 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Contingent loan repurchase asset | $ 289.9 | $ 403.7 |
Derivatives, at fair value | 7.7 | 21.7 |
Prepaid expenses | 19.8 | 21.5 |
Prepaid representation, warranty and indemnification claims - Agency MSR sale | 5 | 15.2 |
Intangible assets, net | 14.7 | 14.3 |
Prepaid lender fees, net | 7.7 | 7.2 |
REO | 9.8 | 10.1 |
Deferred tax assets, net | 2.6 | 3.3 |
Receivable from Broker-Dealer and Clearing Organization | 1.5 | 2 |
Security deposits | 0.8 | 1.2 |
Other | 4.7 | 7.1 |
Other assets ($8.0 and $21.9 carried at fair value) ($3.2 and $1.5 related to VIEs) | 364.2 | 507.3 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (5) | $ (0.7) |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Intangible assets | $ 14.1 | $ 13.7 |
Other Financing Liabilities - S
Other Financing Liabilities - Schedule of Financing Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | $ 1,137.4 | $ 805 | |
Ancillary and other settlement | 6.1 | (6.7) | $ (9.7) |
Financing Liability Excess Servicing Spread | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 199 | 0 | |
MAV Asset Vehicle LLC | |||
Debt Instrument [Line Items] | |||
Ancillary and other settlement | 0.4 | 4.4 | |
NRZ | |||
Debt Instrument [Line Items] | |||
Ancillary and other settlement | (11.1) | ||
Financing Liabilities | Other counterparties for Pledged MSR liab. | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 0.7 | 0 | |
Financing Liability - MSRs Pledged | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 931.7 | 797.1 | |
Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) | Financing Liabilities | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 6.7 | 7.9 | |
Original Rights to MSRs Agreements | Financing Liabilities | NRZ | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | 601.2 | 558.9 | |
MAV MSR Sale Agreements | Financing Liabilities | MAV Asset Vehicle LLC | |||
Debt Instrument [Line Items] | |||
Other financing liabilities, at fair value ($329.8 and $238.1 due to related party) ($6.7 and $7.9 related to VIEs) | $ 329.8 | $ 238.1 |
Borrowings - Schedule of Match
Borrowings - Schedule of Match Funded Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Nov. 30, 2022 | Aug. 26, 2022 | Aug. 25, 2022 | Dec. 31, 2021 | Aug. 17, 2020 |
Debt Instrument [Line Items] | ||||||
Match funded liabilities | $ 513.7 | $ 512.3 | ||||
Ocwen Master Advance Receivables Trust (OMART) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 450 | |||||
Available borrowing capacity | 27.5 | |||||
Match funded liabilities | 422.5 | 489.2 | ||||
Advance Receivables Backed Notes - Series 2015-VF5 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 450 | |||||
Advance Receivables Backed Notes - Series 2015-VF5 | Ocwen Master Advance Receivables Trust (OMART) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 450 | |||||
Available borrowing capacity | 27.5 | |||||
Match funded liabilities | 422.5 | 14.2 | ||||
Advance Receivables Backed Notes - Series 2015-VF5 | Total Ocwen Freddie Advance Funding (OFAF) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 90 | $ 50 | $ 40 | |||
Advance Receivables Backed Notes, Series 2020-T1 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 80 | |||||
Advance Receivables Backed Notes, Series 2020-T1 | Ocwen Master Advance Receivables Trust (OMART) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 0 | |||||
Available borrowing capacity | 0 | |||||
Match funded liabilities | 0 | 475 | ||||
Advance Receivables Backed Notes, Series 2015-VF1 | Total Ocwen Freddie Advance Funding (OFAF) | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 90 | |||||
Available borrowing capacity | 0 | |||||
Match funded liabilities | 90 | $ 23.1 | ||||
Match Funded Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 554.4 | |||||
Available borrowing capacity | $ 40.7 | |||||
Weighted average interest rate (percentage) | 7.09% | 1.54% | ||||
Match funded liabilities | $ 513.7 | $ 512.3 | ||||
EBO Advance facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 14.4 | |||||
Available borrowing capacity | 13.2 | |||||
Match funded liabilities | $ 1.2 | $ 0 |
Borrowings - Schedule of Matc_2
Borrowings - Schedule of Match Funded Liabilities (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Prepaid lender fees, net | $ 7.7 | $ 7.2 |
Advance Receivables Backed Notes, Series 2020-T1 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 80 | |
Match Funded Liabilities | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 554.4 | |
Prepaid lender fees, net | $ 2.3 | $ 1.3 |
Weighted average interest rate (percentage) | 7.09% | 1.54% |
EBO Advance facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 14.4 | |
Notes Payable | $ 1.7 | |
Minimum | Advance Receivables Backed Notes, Series 2020-T1 | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (percentage) | 1.28% | |
Maximum | Advance Receivables Backed Notes, Series 2020-T1 | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (percentage) | 5.42% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 03, 2021 | Mar. 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||||
Loss on extinguishment of debt | $ 7.1 | |||
Covenant liquidity requirement | $ 41.4 | |||
Senior Notes | 599.6 | $ 614.8 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt covenant, required consolidated tangible net worth | 300 | |||
Covenant liquidity requirement | 75 | |||
6.375% Senior Notes, Due 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 6.375% | |||
6.375% Senior Notes, Due 2021 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 100% | |||
8.375% Senior Secured Notes Due In 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 8.375% | |||
8.375% Senior Secured Notes Due In 2022 | Debt Instrument, Redemption, Period | ||||
Line of Credit Facility [Line Items] | ||||
Redemption Price | 102.094% | |||
7.875% Senior Notes, Due 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 7.875% | |||
Loss on extinguishment of debt | 0.9 | |||
Unamortized discount | $ (2.1) | |||
Debt instrument, repurchased amount | 25 | |||
Debt instrument, repurchase price | $ 23.6 | |||
7.875% Senior Notes, Due 2026 | Level 3 | ||||
Line of Credit Facility [Line Items] | ||||
Senior Notes | 400 | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 12% | |||
Covenant liquidity requirement | $ 125 | |||
Senior Notes | 199.5 | |||
Unamortized discount | $ (10.5) | (24.5) | ||
Proceeds from Issuance of Debt | 68 | $ 158.5 | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Level 3 | ||||
Line of Credit Facility [Line Items] | ||||
Senior Notes | $ 85.5 | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Payment in Kind | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 13.25% | |||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument stated percentage of interest (percentage) | 7% |
Borrowings - Schedule of Mortga
Borrowings - Schedule of Mortgage Loan Warehouse Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | $ 32.8 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 250 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 50 | |
Other Secured Borrowings | Participation Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 185.7 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement Two | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 159.8 | |
Available borrowing capacity | 0 | |
Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 208.1 | |
Available borrowing capacity | 0 | |
Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Long-term debt, gross | 0 | $ 459.3 |
Other Secured Borrowings | Loan and Security Agreement | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 42.8 | |
Other Secured Borrowings | Master Repurchase Agreement- Flagstar | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | 211.2 | |
Available borrowing capacity | $ 0 | |
Mortgage Loan Warehouse Facilities | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate (percentage) | 5.74% | 2.61% |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | ||
Line of Credit Facility [Line Items] | ||
Uncommitted available borrowing capacity | $ 1,097.6 | |
Available borrowing capacity | 332.6 | |
Long-term debt, gross | 702.7 | $ 1,085.1 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 0 | |
Long-term debt, gross | 142.2 | 109.4 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 99.7 | |
Long-term debt, gross | 100.3 | 160.9 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 0 | |
Long-term debt, gross | 0 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Participation Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 0 | |
Long-term debt, gross | 64.3 | 45.2 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 146.9 | |
Long-term debt, gross | 26.1 | 1.8 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 1 | |
Long-term debt, gross | 0 | 0 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement Two | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 42.2 | |
Long-term debt, gross | 7.8 | 11.8 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 44.2 | 87.8 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Mortgage Warehouse Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 21.9 | 192 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 0 | 459.3 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Loan and Security Agreement | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 7.2 | 16.8 |
Mortgage Loan Warehouse Facilities | Other Secured Borrowings | Master Repurchase Agreement- Flagstar | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 288.8 | $ 0 |
Borrowings - Schedule of Mort_2
Borrowings - Schedule of Mortgage Loan Warehouse Facilities (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 16, 2022 | Sep. 15, 2022 | Sep. 11, 2022 | Jul. 29, 2022 | Jul. 28, 2022 | Jun. 30, 2022 | Jun. 23, 2022 | Jun. 22, 2022 | May 02, 2022 | May 01, 2022 | Apr. 11, 2022 | Jan. 04, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||||||||||||
1-Month LIBOR | 3.25% | |||||||||||||
Master Repurchase Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 450 | |||||||||||||
Participation Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 250 | $ 150 | $ 173 | $ 100 | ||||||||||
Master Repurchase Agreement- Flagstar | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 400 | $ 350 | ||||||||||||
Line of Credit Facility Committed Amount | $ 100 | |||||||||||||
Mortgage Warehouse Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 230 | $ 250 | $ 200 | |||||||||||
Master Repurchase Agreement - Barclays | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 175 | $ 275 | ||||||||||||
Uncommitted available borrowing capacity | 125 | |||||||||||||
Line of Credit Facility Committed Amount | $ 50 | |||||||||||||
Mortgage Loan Warehouse Facilities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Available borrowing capacity | $ 11.1 | |||||||||||||
Mortgage Loan Warehouse Facilities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized debt issuance costs | $ (0.5) | $ (1.2) | ||||||||||||
LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
1-Month LIBOR | 4.39% | 0.10% | ||||||||||||
SOFR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
1-Month LIBOR | 4.36% | 0.05% |
Borrowings - Schedule of MSR Fi
Borrowings - Schedule of MSR Financing Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Agency MSR financing facility - revolving loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (4.7) | |
Agency MSR financing facility - term loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4.9) | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior notes | 953.8 | $ 900.8 |
Unamortized debt issuance costs | (0.8) | (0.9) |
Secured Debt | Agency Mortgage Servicing Rights Financing Facility | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 140.2 | |
Short-term debt | 309.8 | 317.5 |
Secured Debt | Ginnie Mae Mortgage Servicing Rights Financing Facility | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 17.1 | |
Available borrowing capacity | 0 | |
Senior notes | 157.9 | 131.7 |
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||
Debt Instrument [Line Items] | ||
Senior notes | 41.7 | |
Secured Debt | OASIS Series 2014-1 | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 33.4 | 39.5 |
Secured Debt | Agency MSR financing facility - revolving loan | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 3.2 | |
Senior notes | 396.8 | 277.1 |
Secured Debt | Agency MSR financing facility - term loan | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | 0 | $ 94.2 |
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 Class A | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | 0 | |
Available borrowing capacity | 0 | |
Senior notes | $ 56.7 | |
MSR Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (percentage) | 7.31% | 3.71% |
Total Servicing Lines Of Credit | ||
Debt Instrument [Line Items] | ||
Uncommitted available borrowing capacity | $ 17.1 | |
Available borrowing capacity | 143.4 | |
Short-term debt | $ 954.6 | $ 901.7 |
Borrowings - Schedule of MSR _2
Borrowings - Schedule of MSR Financing Facilities (Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2022 | Feb. 14, 2023 | Nov. 28, 2022 | Jun. 30, 2022 | Jun. 29, 2022 | Mar. 15, 2022 | Mar. 14, 2022 | Feb. 28, 2022 | Feb. 27, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||||
1-Month LIBOR | 3.25% | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized debt issuance costs | $ 11.8 | $ 14.3 | ||||||||
Ginnie Mae Mortgage Servicing Rights Financing Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 175 | $ 150 | ||||||||
Line of Credit Facility Committed Amount | $ 50 | |||||||||
Ginnie Mae Mortgage Servicing Rights Financing Facility | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 200 | |||||||||
Line of Credit Facility Committed Amount | $ 50 | |||||||||
Agency MSR financing facility - term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized debt issuance costs | 4.9 | |||||||||
Agency MSR financing facility - revolving loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized debt issuance costs | $ 4.7 | |||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument stated percentage of interest (percentage) | 5.07% | |||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 Class A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument stated percentage of interest (percentage) | 5.114% | |||||||||
LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
1-Month LIBOR | 4.39% | 0.10% | ||||||||
1-Year Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
1-Month LIBOR | 0.19% | |||||||||
SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
1-Month LIBOR | 4.36% | 0.05% | ||||||||
MSR Financing Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | $ 0 | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized debt issuance costs | 0.8 | $ 0.9 | ||||||||
Secured Debt | Agency Mortgage Servicing Rights Financing Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 450 | $ 350 | ||||||||
Secured Debt | Agency MSR financing facility - term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 135 | |||||||||
Secured Debt | Agency MSR financing facility - revolving loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 400 | $ 285 | ||||||||
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2019-PLS1 Class A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 100 | |||||||||
Secured Debt | Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 Class A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 75 | $ 75 | ||||||||
EBO Advance facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 14.4 | |||||||||
OASIS Series 2014-1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate (percentage) | 0.21% |
Borrowings - Senior Secured Ter
Borrowings - Senior Secured Term Loan (Details) - SSTL - Secured Debt $ in Millions | Mar. 04, 2021 USD ($) |
Debt Instrument [Line Items] | |
Repayment of SSTL | $ 185 |
Loss on debt extinguishment | $ 8.4 |
Percentage of prepayment premium | 0.02 |
Redemption premium | $ 3.7 |
Borrowings - Schedule of Senior
Borrowings - Schedule of Senior Notes (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 04, 2021 |
7.875% Senior Notes, Due 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 7.875% | ||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage of interest (percentage) | 12% | ||
Other Secured Borrowings | |||
Debt Instrument [Line Items] | |||
Discount | $ (48.6) | $ (55.9) | |
Unamortized debt issuance costs | (11.8) | (14.3) | |
Other Secured Borrowings | 7.875% Senior Notes, Due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 375 | 400 | |
Discount | (1.3) | (1.8) | |
Other Secured Borrowings | 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 285 | 285 | |
Discount | (47.3) | (54.2) | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 660 | 685 | |
Senior notes | 599.6 | 614.8 | |
Senior Notes | 7.875% Senior Notes, Due 2026 | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | (4.3) | (5.7) | |
Senior Notes | 12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (7.5) | $ (8.6) |
Borrowings - Schedule of Redemp
Borrowings - Schedule of Redemption Prices (Details) | 12 Months Ended |
Dec. 31, 2022 | |
2023 | |
Debt Instrument [Line Items] | |
Redemption Price | 103.938% |
2024 | |
Debt Instrument [Line Items] | |
Redemption Price | 101.969% |
2025 and thereafter | |
Debt Instrument [Line Items] | |
Redemption Price | 100% |
Borrowings - Schedule of Assets
Borrowings - Schedule of Assets Held as Collateral Related to Secured Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | May 03, 2021 | Mar. 04, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Cash | $ 208 | $ 192.8 | |||
Restricted cash | 66.2 | 70.7 | |||
Loans held for sale | 622.7 | 928.5 | |||
Loans held for investment - unsecuritized | 7,510.8 | 7,207.6 | |||
MSRs | 2,665.2 | 2,250.1 | |||
Advances, net | 718.9 | 772.4 | |||
Receivables, net | 180.8 | 180.7 | |||
REO | 9.8 | 10.1 | |||
Balance | 12,399.2 | 12,147.1 | $ 10,651.1 | ||
Senior Notes | 599.6 | $ 614.8 | |||
7.875% Senior Notes, Due 2026 | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 400 | ||||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 199.5 | ||||
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 85.5 | ||||
Senior Lien | |||||
Debt Instrument [Line Items] | |||||
Loans held for investment - securitized | 7,392.6 | ||||
Loans held for investment - unsecuritized | 111.5 | ||||
MSRs | 1,710.6 | ||||
Advances, net | 718.9 | ||||
Balance | 11,021.1 | ||||
Senior Lien | Pledged Assets | |||||
Debt Instrument [Line Items] | |||||
Cash | 0 | ||||
Restricted cash | 66.2 | ||||
Loans held for sale | 592.4 | ||||
Loans held for investment - securitized | 7,392.6 | ||||
Loans held for investment - unsecuritized | 67.5 | ||||
MSRs | 1,725.8 | ||||
Advances, net | 667.2 | ||||
Receivables, net | 67 | ||||
REO | 4.3 | ||||
Balance | 10,582.9 | ||||
Senior Lien | Collateralized Borrowings | |||||
Debt Instrument [Line Items] | |||||
Cash | 0 | ||||
Restricted cash | 0 | ||||
Loans held for sale | 572.4 | ||||
Loans held for investment - securitized | 7,326.8 | ||||
Loans held for investment - unsecuritized | 60.9 | ||||
MSRs | 1,115.9 | ||||
Advances, net | 551.4 | ||||
Receivables, net | 65.7 | ||||
REO | 3.8 | ||||
Balance | 9,696.8 | ||||
Senior Lien | Unencumbered Assets | |||||
Debt Instrument [Line Items] | |||||
Cash | 208 | ||||
Restricted cash | 0 | ||||
Loans held for sale | 30.3 | ||||
Loans held for investment - securitized | 0 | ||||
Loans held for investment - unsecuritized | 44 | ||||
MSRs | 0 | ||||
Advances, net | 51.7 | ||||
Receivables, net | 113.8 | ||||
REO | 5.5 | ||||
Balance | 453.4 | ||||
Assets | |||||
Debt Instrument [Line Items] | |||||
Cash | 208 | ||||
Restricted cash | 66.2 | ||||
Loans held for sale | 622.7 | ||||
REO | $ 9.8 |
Borrowings - Schedule of Second
Borrowings - Schedule of Second Lien Priority on Specified Assets Carried on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Advances, net (amounts related to VIEs of $608.4 and $587.1) | $ 718.9 | $ 772.4 | |
Mortgage servicing rights, at fair value | 2,665.2 | 2,250.1 | |
Cash and cash equivalents | 208 | 192.8 | |
Balance | 12,399.2 | $ 12,147.1 | $ 10,651.1 |
Second Lien | |||
Debt Instrument [Line Items] | |||
Advances, net (amounts related to VIEs of $608.4 and $587.1) | 228.1 | ||
Deferred Servicing Income | 3.7 | ||
Mortgage servicing rights, at fair value | 690.4 | ||
Cash and cash equivalents | 124.1 | ||
Advance Facility Reserve | 15.8 | ||
Specified Loan Value | 99.7 | ||
Specified Residual Value | 0 | ||
Balance | $ 1,161.7 |
Borrowings - Schedule of Aggreg
Borrowings - Schedule of Aggregate Long-term Borrowings (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 1,700.5 |
2023 | 13.8 |
2024 | 422.2 |
2025 | 376.2 |
2026 | 285 |
Thereafter | 33.4 |
Long-term debt, gross | 2,831 |
Fair value | 2,703.7 |
Match Funded Liabilities | |
Debt Instrument [Line Items] | |
2022 | 512.5 |
2023 | 0 |
2024 | 0 |
2025 | 1.2 |
2026 | 0 |
Thereafter | 0 |
Long-term debt, gross | 513.7 |
Fair value | 513.7 |
Mortgage Loan Warehouse Facilities | |
Debt Instrument [Line Items] | |
2022 | 702.7 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Long-term debt, gross | 702.7 |
Fair value | 702.7 |
MSR Financing Facilities | |
Debt Instrument [Line Items] | |
2022 | 485.2 |
2023 | 13.8 |
2024 | 422.2 |
2025 | 0 |
2026 | 0 |
Thereafter | 33.4 |
Long-term debt, gross | 954.6 |
Fair value | 932.1 |
Senior Notes | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 375 |
2026 | 285 |
Thereafter | 0 |
Long-term debt, gross | 660 |
Fair value | $ 555.2 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Contingent loan repurchase liability | $ 289.9 | $ 403.7 |
Other accrued expenses | 75.9 | 104.9 |
Due to Rithm - Advance collections and servicing fees | 64.4 | 76.6 |
Liability for indemnification obligations | 43.8 | 51.2 |
Checks held for escheat | 48.1 | 44.9 |
Accrued legal fees and settlements | 42.2 | 44 |
MSR purchase price holdback | 13.9 | 32.6 |
Servicing-related obligations | $ 40.1 | $ 32.4 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total other liabilities | Total other liabilities |
Lease liability | $ 16.6 | $ 16.8 |
Liability for uncertain tax positions | 10.9 | 14.7 |
Hedged Liability, Fair Value Hedge | 6 | 3.7 |
Accrued interest payable | 13.7 | 12 |
Liability for unfunded India gratuity plan | 5.9 | 6.3 |
Mortgage Insurance Premium Payable | 5 | 5.1 |
Liability for unfunded pension obligation | 3.4 | 4.2 |
Excess Servicing Fees Spread payable | 3.4 | 0 |
Derivatives, at fair value | 15.7 | 3.1 |
Due to Related Parties, Current | 0.2 | 2.1 |
Other | 3.2 | 9.2 |
Total other liabilities | 708.5 | 867.5 |
Income taxes receivable (1) | $ 6.2 | $ 0 |
Other Liabilities Schedule of C
Other Liabilities Schedule of Changes in Liability for Legal Fees and Settlements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |||
Beginning balance | $ 44 | $ 38.9 | $ 30.7 |
Accrual for probable losses | 6.6 | 9.4 | 26.5 |
Payments | (6.9) | (5.5) | (14.8) |
Net increase (decrease) in accrued legal fees | (1.5) | 1.2 | (3.4) |
Other | 0 | 0 | 0.1 |
Ending balance | $ 42.2 | $ 44 | $ 38.9 |
Stockholders Equity - Narrative
Stockholders Equity - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 03, 2021 USD ($) $ / shares shares | Mar. 04, 2021 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | Nov. 20, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | May 20, 2022 USD ($) | Feb. 03, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Stock repurchase program, authorized aggregate amount | $ 50 | $ 5 | |||||
Repurchase of common stock, shares | shares | 377,484 | 1,750,557 | |||||
Repurchase of common stock | $ 4.5 | $ 50 | |||||
Average price paid per share | $ / shares | $ 11.90 | $ 28.53 | |||||
Payments for Commissions | $ 0.1 | ||||||
Warrants to purchase, common stock shares | shares | 261,248 | 1,184,768 | |||||
Percentage ownership upon exercise of warrants | 0.03 | 0.12 | |||||
Warrants exercise price | $ / shares | $ 24.31 | $ 26.82 | |||||
Fair value of warrants issued | $ 16.5 | ||||||
Debt issuance cost in connection with warrants | $ 0.5 | $ 0.8 | |||||
Issuance of common stock (in shares) | shares | 426,705 | ||||||
Sale of stock, price per share | $ / shares | $ 23.15 | ||||||
Allocated fair value of common stock | $ 12.6 | ||||||
Allocated fair value of warrants | 4.3 | ||||||
Issuance of common stock | $ 9.9 | $ 12.2 | |||||
Ocwen Financial Corporation | Oaktree | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 4.90% |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Accumulated Other Comprehensive Loss (AOCL), Net of Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | $ (2.5) | $ (2.4) |
Unfunded pension plan obligation, net | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | 2.1 | 1.9 |
Unrealized losses on cash flow hedges, net | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | 0.5 | 0.6 |
Other | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, net of income taxes | $ (0.1) | $ (0.1) |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 937.8 | $ 2,764.8 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 7.7 | 21.7 | |
Derivative Liability, Notional Amount | 1,371.4 | 1,645 | |
Derivative Liability, Fair Value, Gross Liability | (15.7) | (3.1) | |
Gain (loss) on derivatives, net | (23.5) | (13.3) | $ 35.3 |
Forward Sales Of Reverse Loans | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 20 | 175 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0.1 | 0.4 | |
Derivative Liability, Notional Amount | 20 | 0 | |
Derivative Liability, Fair Value, Gross Liability | (0.1) | 0 | |
Gain (loss) on derivatives, net | $ (0.3) | 0.4 | 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on reverse loans held for investment and HMBS-related borrowings, net | ||
Forward loans IRLCs | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 0 | 1,022 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0 | 16.1 | |
Derivative Liability, Notional Amount | 540.1 | 0 | |
Derivative Liability, Fair Value, Gross Liability | 1.3 | 0 | |
Gain (loss) on derivatives, net | $ (17.4) | (6.2) | 17.5 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | ||
TBA Forward Pipelines Trades | |||
Fair value of derivative assets (liabilities) at: | |||
Gain (loss) on derivatives, net | $ 101.3 | 1.5 | 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 0 | 792.5 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0 | 1.7 | |
Derivative Liability, Notional Amount | 670 | 0 | |
Derivative Liability, Fair Value, Gross Liability | 13.6 | 0 | |
Gain (loss) on derivatives, net | $ 0 | 0 | (10.1) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | ||
Option Contracts | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 0 | 125 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0 | 0.5 | |
Derivative Liability, Notional Amount | 0 | 450 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 0.8 | |
TBA/Forward Mortgage Backed Securities Trades Maturing January Through March 2022 And 2023 | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 804 | 587 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 6.6 | 0.9 | |
TBA/Forward Mortgage Backed Securities Trades Maturing January Through March 2022 And January Through February 2023 | |||
Fair value of derivative assets (liabilities) at: | |||
Derivative Liability, Notional Amount | 85 | 1,195 | |
Derivative Liability, Fair Value, Gross Liability | 0.7 | 1.2 | |
Interest Rate Swap Futures And TBA Forward MBS Trades | |||
Fair value of derivative assets (liabilities) at: | |||
Gain (loss) on derivatives, net | $ (106.9) | (9.5) | 27.5 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | MSR valuation adjustments, net | ||
Others | |||
Fair value of derivative assets (liabilities) at: | |||
Derivative Liability, Notional Amount | $ 56.4 | 0 | |
Derivative Liability, Fair Value, Gross Liability | (0.1) | (1.1) | |
Gain (loss) on derivatives, net | $ 0 | 0 | 0.1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | ||
Other | |||
Fair value of derivative assets (liabilities) at: | |||
Gain (loss) on derivatives, net | $ 1 | (1.1) | 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other revenue, net | ||
TBA Reverse Loan Trades | |||
Fair value of derivative assets (liabilities) at: | |||
Gain (loss) on derivatives, net | $ (0.3) | 0 | 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on reverse loans held for investment and HMBS-related borrowings, net | ||
Forward Trades | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 100 | 0 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0.4 | 0 | |
Gain (loss) on derivatives, net | $ 0.4 | 0 | 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | ||
Reverse Loans IRLCs | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 13.8 | 63.3 | |
Fair value of derivative assets (liabilities) at: | |||
Derivatives, at fair value | 0.6 | 2 | |
Gain (loss) on derivatives, net | $ (1.4) | $ 1.5 | $ 0.3 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on reverse loans held for investment and HMBS-related borrowings, net |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 29, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Foreign currency re-measurement exchange gains (losses) | $ (0.1) | $ 0.3 | $ (1) | |
Maximum | ||||
Derivative [Line Items] | ||||
Loans Held-for-sale, Period of Sale | 20 days | |||
Mortgage Servicing Rights, Coverage Ratio | 0.30 | 0.60 | ||
Minimum | ||||
Derivative [Line Items] | ||||
Loans Held-for-sale, Period of Sale | 3 days | |||
Mortgage Servicing Rights, Coverage Ratio | 0.25 | 0.40 | ||
Interest rate (percentage) | 0.50% | |||
Interest Rate Lock Commitments [Member] | ||||
Derivative [Line Items] | ||||
Loan Commitment to Correspondents | 7 days | |||
Interest Rate Lock Commitments [Member] | Maximum | ||||
Derivative [Line Items] | ||||
Loan Commitment, Term | 90 days | |||
Loan Commitment to borrowers, Term | 75 days | |||
Interest Rate Lock Commitments [Member] | Minimum | ||||
Derivative [Line Items] | ||||
Loan Commitment, Term | 5 days | |||
Loan Commitment to borrowers, Term | 55 days |
Interest Income - Schedule of C
Interest Income - Schedule of Components of Interest Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Loans held for sale | $ 43.9 | $ 25.9 | $ 13.9 |
Interest earning cash deposits and other | 1.7 | 0.5 | 2.1 |
Interest and Other Income | $ 45.6 | $ 26.4 | $ 16 |
Interest Expense - Schedule of
Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt securities: | |||
Interest expense | $ 186 | $ 144 | $ 109.4 |
Amortization of debt discount and issuance costs | 10.1 | 7.8 | 7 |
Other Secured Borrowings | |||
Debt securities: | |||
Interest expense | 42.1 | 31.7 | 0 |
Amortization of debt discount and issuance costs | 7.9 | 5 | |
Senior Notes | |||
Debt securities: | |||
Interest expense | 31.8 | 31.9 | 26.6 |
Mortgage Loan Warehouse Facilities | |||
Debt securities: | |||
Interest expense | 37.8 | 30.6 | 15.2 |
MSR Financing Facilities | |||
Debt securities: | |||
Interest expense | 47 | 26 | 15.9 |
Match Funded Liabilities | |||
Debt securities: | |||
Interest expense | 19.8 | 14.2 | 24.1 |
SSTL | |||
Debt securities: | |||
Interest expense | 0 | 3 | 20.5 |
Other | |||
Debt securities: | |||
Interest expense | $ 7.5 | $ 6.5 | $ 7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Income tax benefit | $ (0.8) | $ (22.4) | $ (65.5) |
Proceeds from Income Tax Refunds | 24.6 | 11.3 | 51.4 |
Income taxes receivable (1) | 34.4 | 56.8 | |
Deferred tax assets, gross | 181.1 | 175.4 | |
Valuation allowance | 178.5 | 172.1 | |
Net operating loss carryforwards and credits - state and local | 90.3 | 70.7 | |
Total interest and penalties | 1 | 0.1 | $ 1.6 |
Accruals for interest and penalties | 2.2 | ||
Liability for selected tax items | 8.7 | 11.5 | |
U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Income tax benefit | 62.6 | ||
Deferred tax assets, gross | 177.5 | 171.1 | |
Valuation allowance | 177.5 | $ 171.1 | |
U.S. NOL carryforwards | 510.4 | ||
Net operating loss carryforwards and credits - state and local | 90.3 | ||
USVI | |||
Tax Credit Carryforward [Line Items] | |||
Income tax benefit | 1.4 | ||
Income taxes receivable (1) | 12.9 | ||
Expected carry back of net operating loss | 334.5 | ||
US and USVI | |||
Tax Credit Carryforward [Line Items] | |||
Income tax benefit | 64 | ||
India and Philippines Subsidiary | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax liability | 0.7 | ||
CARES Act Claims | |||
Tax Credit Carryforward [Line Items] | |||
Income tax benefit | (12.6) | ||
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward | U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 107.2 | ||
Capital Loss Carryforward | U.S. | |||
Tax Credit Carryforward [Line Items] | |||
Capital loss carryforwards | $ 7.2 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 14 | $ (13.9) | $ (118) |
Foreign | 10.9 | 9.5 | 12.4 |
Income (loss) before income taxes | $ 24.9 | $ (4.4) | $ (105.7) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 0.2 | $ (20.1) | $ (67.1) |
State | (0.8) | (1.3) | 0.3 |
Foreign | (0.2) | 1.6 | 2.6 |
Current Income tax expense (benefit) | (0.8) | (19.8) | (64.2) |
Deferred: | |||
Federal | 4.7 | (2.3) | (26) |
State | (0.7) | 0 | (2.1) |
Foreign | 0.6 | 0.2 | (1.4) |
Provision for (reversal of) valuation allowance on deferred tax assets | (3.9) | 2.3 | 28.2 |
Deferred income tax expense (benefit) | 0.7 | 0.2 | (1.3) |
Other | (0.7) | (2.8) | 0 |
Total | $ (0.8) | $ (22.4) | $ (65.5) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense (benefit) at statutory rate | $ 5.2 | $ (0.9) | $ (22.2) |
Differences between expected and actual income tax expense: | |||
CARES Act | (0.1) | (12.6) | (79) |
Provision for (reversal of) valuation allowance on deferred tax assets | (3.9) | 2.3 | 28.2 |
Provision for (reversal of) liability for uncertain tax positions | (3.4) | (8.7) | 13.1 |
Interest on refund claims due from tax authorities | (0.7) | (2.8) | 0 |
Other provision to return differences | (0.2) | (1) | (3.3) |
Foreign tax differential including effectively connected income | 2.3 | 1.4 | (2.5) |
State tax, after Federal tax benefit | (0.3) | 0.2 | (1.4) |
Benefit of state NOL carryback claims and amended return filings | (1.2) | (1.8) | 0 |
Executive compensation disallowance | 1.6 | 1.4 | 0.6 |
Excess tax benefits from share-based compensation | (0.4) | (0.5) | 0.4 |
Other permanent differences | 0.1 | 0.2 | 0.4 |
Foreign tax credit (generation) utilization | 0.1 | 0 | 0 |
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion | 0.1 | 0.2 | 0.2 |
Other | 0 | 0.2 | 0.1 |
Total | $ (0.8) | $ (22.4) | $ (65.5) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating loss carryforwards - federal and foreign | $ 107.9 | $ 54.6 |
Net operating loss carryforwards and credits - state and local | 90.3 | 70.7 |
Interest expense disallowance | 72.6 | 39.3 |
Reserve for servicing exposure | 5.7 | 6.8 |
Accrued legal settlements | 10 | 9.9 |
Partnership losses | 5.4 | 8.6 |
Stock-based compensation expense | 10.4 | 9.9 |
Accrued incentive compensation | 3.7 | 6.7 |
Accrued other liabilities | 5.4 | 5.9 |
Lease liabilities | 1 | 2.5 |
Intangible asset amortization | 6.3 | 5 |
Foreign deferred assets | 3.2 | 3.8 |
Tax residuals and deferred income on tax residuals | 1.5 | 1.5 |
Bad debt and allowance for loan losses | 8.2 | 4 |
Other | 4.1 | 5.1 |
Deferred tax assets, gross | 335.7 | 234.1 |
Deferred tax liabilities | ||
Mortgage servicing rights amortization | 153.1 | 57.3 |
Other | 1.5 | 1.3 |
Deferred tax liabilities, gross | 154.6 | 58.6 |
Deferred tax assets (liability), gross | 181.1 | 175.4 |
Valuation allowance | (178.5) | (172.1) |
Deferred tax assets, net | $ 2.6 | $ 3.3 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 11.5 | $ 20.6 | $ 10.6 |
Additions for tax positions of current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0 | 0.2 | 15.2 |
Reductions for tax positions of prior years | 0 | (6.4) | (0.2) |
Reductions for settlements | (2.1) | (0.6) | (3.1) |
Lapses in statute of limitations | (0.7) | (2.4) | (1.9) |
Ending balance (1) | $ 8.7 | $ 11.5 | $ 20.6 |
Income Taxes - Schedule of Un_2
Income Taxes - Schedule of Unrecognized Tax Benefits (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 8.7 | $ 11.5 | $ 20.6 | $ 10.6 |
Income Tax Receivables | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | 0.2 | |||
Other Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 8.7 | $ 11.3 |
Basic and Diluted Earnings (L_3
Basic and Diluted Earnings (Loss) per Share - Schedule of Reconciliation of the Calculation of Basic EPS to Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic loss per share | |||
Net income (loss) | $ 25.7 | $ 18.1 | $ (40.2) |
Basic (in shares) | 8,647,399 | 9,021,975 | 8,748,725 |
Basic | $ 2.97 | $ 2 | $ (4.59) |
Contingent issuance of common stock | 0 | 38,685 | 0 |
Common stock warrants | 158,542 | 152,208 | 0 |
Stock option awards | 18 | 60 | 0 |
Common stock awards | 191,347 | 169,539 | 0 |
Diluted (in shares) | 8,997,306 | 9,382,467 | 8,748,725 |
Diluted | $ 2.85 | $ 1.93 | $ (4.59) |
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | |||
Anti-dilutive securities (in shares) | 222,602 | 143,593 | 199,079 |
Market-based | |||
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | |||
Anti-dilutive securities (in shares) | 62,867 | 87,509 | 125,395 |
Employee Compensation and Ben_3
Employee Compensation and Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee contributions | 50% | ||
Provident fund contribution percentage on portion of employees salary | 12% | ||
Contributions | $ 5,000,000 | $ 5,100,000 | $ 5,200,000 |
Future expected benefit payments | 3,000,000 | ||
Compensation expense recognized | $ 13,100,000 | $ 23,600,000 | $ 25,700,000 |
Common stock remaining available for future issuance (in shares) | 404,693 | ||
Contractual term of all options granted (years) | 10 years | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer match limit, percent of employee compensation | 6% | ||
Matching compensation per pay period (usd per pay period) | $ 9,150 | ||
Equity-Settled Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 57,187 | ||
Restricted Stock Units | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Grants in period, performance-based (percentage) | 50% | 50% | 50% |
Weighted average remaining requisite service period | 2 years 1 month 6 days | ||
Unvested awards, cost not yet recognized | $ 9,900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period, performance-based (percentage) | 50% | 50% | 50% |
Liability Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average remaining requisite service period | 1 year 1 month 6 days | ||
Unvested awards, cost not yet recognized | $ 9,800,000 | ||
Hybrid Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 117,233 | ||
Market-based Stock Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Grants in period, time-based (percentage) | 50% | 50% | 50% |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period, time-based (percentage) | 50% | 50% | 50% |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ (900,000) | $ (900,000) | $ (200,000) |
Future expected benefit payments | 3,000,000 | ||
Future expected benefit payments | 3,000,000 | ||
Future expected benefit payments | 3,000,000 | ||
Future expected benefit payments | 15,400,000 | ||
Contributions to defined benefit pension plans | 100,000 | 1,000,000 | 2,100,000 |
Fair value of plan assets | 37,500,000 | 50,100,000 | |
Benefit obligation | 40,900,000 | 54,300,000 | |
Unfunded status recognized in Other liabilities | (3,400,000) | (4,200,000) | |
Gratuity Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Future expected benefit payments | 1,000,000 | ||
Future expected benefit payments | 900,000 | ||
Future expected benefit payments | 800,000 | ||
Future expected benefit payments | 700,000 | ||
Future expected benefit payments | 700,000 | ||
Future expected benefit payments | 2,500,000 | ||
Fair value of plan assets | 0 | 0 | |
Benefit obligation | 5,900,000 | 6,300,000 | |
Unfunded status recognized in Other liabilities | (5,900,000) | (6,300,000) | |
Plan assets, benefits paid | $ 700,000 | $ 800,000 | $ 800,000 |
PHH Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation discount rate | 5.25% | 2.75% | |
Benefit obligation, period increase (decrease) | $ 11,700,000 | ||
Berkeley Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation discount rate | 5.51% | 2.80% | |
Long-Term Incentive (LTI) Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 246,018 | 233,056 | 601,787 |
Long-Term Incentive (LTI) Program | Cash-Settled Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 57,891 | ||
Long-Term Incentive (LTI) Program | Performance-Based Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Vesting percentage of awards (percentage) | 100% | ||
Long-Term Incentive (LTI) Program | Market-based Stock Awards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 13,091 | 4,623 | |
Chief Executive Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Granted (in shares) | 147,058 | 115,173 | 150,000 |
Employee Compensation and Ben_4
Employee Compensation and Benefit Plans - Schedule of Change in Benefit Obligation, Plan Assets and Funded Status for Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation | $ 40.9 | $ 54.3 |
Fair value of plan assets | 37.5 | 50.1 |
Unfunded status recognized in Other liabilities | (3.4) | (4.2) |
Amounts recognized in Accumulated other comprehensive loss | 2.2 | 2 |
Gratuity Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation | 5.9 | 6.3 |
Fair value of plan assets | 0 | 0 |
Unfunded status recognized in Other liabilities | $ (5.9) | $ (6.3) |
Employee Compensation and Ben_5
Employee Compensation and Benefit Plans - Schedule of Stock Awards Vesting (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
2012 - 2014 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 100% | ||
2012 - 2014 Awards | Time-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 25% | ||
Award vesting period (years) | 4 years | ||
Vesting percentage of awards (percentage) | 25% | ||
2012 - 2014 Awards | Market Performance-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 50% | ||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 25% | ||
Percentage of compounded annual gain of stock price over the exercise price (percentage) | 20% | ||
2012 - 2014 Awards | Extraordinary Market Performance-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 25% | ||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 25% | ||
Percentage of compounded annual gain of stock price over the exercise price (percentage) | 25% | ||
2015 - 2016 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options awarded (percentage) | 100% | ||
2015 - 2016 Awards | Time-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 4 years | ||
Vesting percentage of awards (percentage) | 25% | ||
Percent of Total awards | 1% | ||
2015 - 2016 Awards | Time-Based | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Percent of Total awards | 35% | ||
2015 - 2016 Awards | Market Performance-Based | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Percent of Total awards | 4% | ||
2015 - 2016 Awards | Market Performance-Based | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of awards (percentage) | 25% | ||
Percent of Total awards | 8% | ||
2015 - 2016 Awards | Time-Based Vesting Schedule And Market Performance-Based Vesting Date | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Vesting percentage of awards (percentage) | 100% | ||
Percent of Total awards | 52% |
Employee Compensation and Ben_6
Employee Compensation and Benefit Plans - Schedule of Stock Option Activity (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding (in shares) | 114,658 | 124,866 | 131,962 |
Forfeited / Expired (in shares) | (75,501) | (10,208) | (7,096) |
Outstanding (in shares) | 39,157 | 114,658 | 124,866 |
Exercisable at end of year (in shares) | 34,657 | 108,754 | 110,484 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding (in dollars per share) | $ 281.89 | $ 274.30 | $ 282.30 |
Forfeited / Expired (in dollars per share) | 354.83 | 189 | 423.80 |
Outstanding (in dollars per share) | 141.27 | 281.89 | 274.30 |
Exercisable at end of year (in dollars per share) | $ 94.46 | $ 273.97 | $ 283.08 |
Employee Compensation and Ben_7
Employee Compensation and Benefit Plans - Schedule of Stock Option Activity (Footnote) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock options which expired unexercised | 74,834 | 10,208 | |
Market-based options that have not met performance criteria (in shares) | 4,500 | ||
Average common stock trading price to determine market condition for options exercise | $ 501.75 | ||
Net aggregate intrinsic value of stock options outstanding | $ 0 | ||
Market-based options outstanding (in shares) | 4,500 | ||
Market-based options outstanding, exercisable (in shares) | 0 | ||
Weighted average remaining contractual term of options outstanding | 3 years 6 months 21 days | ||
Weighted average remaining contractual term of options exercisable | 3 years 10 months 2 days | ||
Total fair value of stock options vested and became exercisable | $ 0 | $ 0.3 | $ 0.3 |
Employee Compensation and Ben_8
Employee Compensation and Benefit Plans - Schedule of Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long-Term Incentive (LTI) Program | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of year (in shares) | 758,626 | 728,373 | 243,441 |
Granted (in shares) | 246,018 | 233,056 | 601,787 |
Vested (in shares) | (191,728) | (105,974) | (21,909) |
Forfeited/Cancelled (in shares) | (204,158) | (111,507) | (94,954) |
Unvested at end of year (in shares) | 620,559 | 758,626 | 728,373 |
Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of year (in shares) | 416,226 | 261,647 | 177,275 |
Granted (in shares) | 373,614 | 236,593 | 150,000 |
Vested (in shares) | (109,077) | (71,855) | (62,954) |
Forfeited/Cancelled (in shares) | (76,874) | (10,159) | (2,674) |
Unvested at end of year (in shares) | 603,889 | 416,226 | 261,647 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested at beginning of year (in dollar per share) | $ 25.97 | $ 21.74 | $ 39.45 |
Granted (in dollar per share) | 28.43 | 33.50 | 8.78 |
Vested (in dollar per share) | 23.11 | 33.43 | 42.25 |
Forfeited/Canceled (in dollar per share) | 32.42 | 39.74 | 26.85 |
Unvested at end of year (in dollar per share) | $ 27.19 | $ 25.97 | $ 21.74 |
Market-based Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at end of year (in shares) | 327,603 | ||
Market-based Stock Awards | Long-Term Incentive (LTI) Program | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 13,091 | 4,623 | |
Forfeited/Cancelled (in shares) | (42,885) | ||
Equity-Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 57,187 |
Employee Compensation and Ben_9
Employee Compensation and Benefit Plans - Schedule of Stock Unit Activity (Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 147,058 | 115,173 | 150,000 | |
Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 373,614 | 236,593 | 150,000 | |
Intrinsic value of stock units vested | $ 2.2 | $ 2.1 | $ 1 | |
Total intrinsic value of stock units vested | $ 2.5 | $ 2.4 | $ 2.7 | |
Unvested stock units (in shares) | 603,889 | 416,226 | 261,647 | 177,275 |
Weighted average remaining contractual term of share units outstanding (years) | 2 years 1 month 6 days | |||
Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested stock units (in shares) | 327,603 | |||
Net aggregate intrinsic value of stock awards outstanding | $ 8.5 | |||
Equity-Settled Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 57,187 | |||
Share-Based Payments Arrangement, Tranche Five | Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units with market condition not met, number | 327,603 | |||
Over Three Years | Equity-Settled Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 5,641 | |||
Over Four Years | Equity-Settled Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 51,546 |
Employee Compensation and Be_10
Employee Compensation and Benefit Plans - Schedule of Liability Award Activity (Details) - Long-Term Incentive (LTI) Program - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested at beginning of year (in shares) | 758,626 | 728,373 | 243,441 |
Granted (in shares) | 246,018 | 233,056 | 601,787 |
Vested (in shares) | (191,728) | (105,974) | (21,909) |
Forfeited/Cancelled (in shares) | (204,158) | (111,507) | (94,954) |
Other | 11,801 | 14,678 | 8 |
Conversion of fractional stock units on reverse stock split | 8 | ||
Unvested at end of year (in shares) | 620,559 | 758,626 | 728,373 |
Market-based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 12,204 | 14,681 | |
Forfeited/Cancelled (in shares) | (105,552) | (35,000) | (36,898) |
Employee Compensation and Be_11
Employee Compensation and Benefit Plans - Schedule of Assumptions used to Value Stock Awards Granted (Details) - Monte Carlo - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum (percentage) | 1.31% | 0.01% | 0.08% |
Risk-free interest rate, maximum (percentage) | 4.66% | 0.77% | 0.29% |
Expected stock price volatility, minimum (percentage) | 93.80% | 95% | 88.70% |
Expected stock price volatility, maximum (percentage) | 94.70% | 96.40% | 94.10% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | $ 26.53 | $ 36.09 | $ 24.36 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value (USD per share) | $ 50.99 | $ 62.03 | $ 38.75 |
Employee Compensation and Be_12
Employee Compensation and Benefit Plans - Schedule of Equity-based Compensation Expense Related to Stock Options and Stock Awards and Related Excess Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity-based compensation expense: | |||
Awards | $ 4.6 | $ 4.7 | $ 2.4 |
Excess tax benefit (tax deficiency) related to share-based awards | 0.4 | 0.5 | (0.4) |
Stock Options | |||
Equity-based compensation expense: | |||
Awards | (0.1) | 0.3 | (0.4) |
Stock Awards | |||
Equity-based compensation expense: | |||
Awards | 4.7 | 4.5 | 2.8 |
Liability Awards | |||
Equity-based compensation expense: | |||
Awards | $ 2.2 | $ 15.1 | $ 5.6 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Interest expense | $ 186 | $ 144 | $ 109.4 |
Restatement Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 24.4 | ||
Servicing | |||
Segment Reporting Information [Line Items] | |||
Percentage of Revenue | 0.86 | ||
Servicing | Restatement Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 23.7 | ||
Originations | Restatement Adjustment | |||
Segment Reporting Information [Line Items] | |||
Interest expense | $ 0.7 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Results of Operations | |||
Servicing and subservicing fees | $ 862.6 | $ 781.9 | $ 737.3 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 36.1 | 79.7 | 60.7 |
Gain on loans held for sale, net | 22 | 145.8 | 137.2 |
Other revenue, net | 33.2 | 42.7 | 25.6 |
Revenue | 953.9 | 1,050.1 | 960.9 |
MSR valuation adjustments, net | (10.4) | (98.5) | (135.2) |
Operating expenses | 532.4 | 609.3 | 575.7 |
Other income (expense): | |||
Interest income | 45.6 | 26.4 | 16 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (186) | (144) | (109.4) |
Pledged MSR liability expense | (255) | (221.3) | (269.1) |
Gain (loss) on extinguishment of debt | 0.9 | (15.5) | 0 |
Earnings of equity method investee | 18.5 | 3.6 | 0 |
Other, net | (10.2) | 4.1 | 6.7 |
Total other income (expense), net | (386.2) | (346.7) | (355.7) |
Income (loss) before income taxes | $ 24.9 | $ (4.4) | $ (105.7) |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on loans held for sale, net | Gain on loans held for sale, net | Gain on loans held for sale, net |
Accelerated depreciation related to facility lease right of use | $ 3.3 | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Occupancy and equipment | ||
Total Assets | |||
Balance | $ 12,399.2 | $ 12,147.1 | $ 10,651.1 |
Restatement Adjustment | |||
Results of Operations | |||
MSR valuation adjustments, net | (5.6) | ||
Other income (expense): | |||
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (24.4) | ||
Servicing | |||
Total Assets | |||
Servicing Expense Recovery | 19.8 | 2.5 | |
Servicing | Restatement Adjustment | |||
Other income (expense): | |||
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (23.7) | ||
Corporate Items and Other | |||
Total Assets | |||
Servicing Expense Recovery | 7.8 | 8 | |
Servicing and Corporate | |||
Total Assets | |||
Servicing Expense Recovery | 27.6 | ||
Operating Segments | Servicing | |||
Results of Operations | |||
Servicing and subservicing fees | 860.5 | 773.5 | 731.2 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | (25.1) | (2.3) | 7.6 |
Gain on loans held for sale, net | (15.1) | 46.6 | 14.7 |
Other revenue, net | 1.4 | 1.7 | 4.2 |
Revenue | 821.7 | 819.4 | 757.7 |
MSR valuation adjustments, net | (36) | (143.4) | (159.5) |
Operating expenses | 314.1 | 342.4 | 331.9 |
Other income (expense): | |||
Interest income | 12.9 | 8.2 | 7.1 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (114.8) | (80.8) | (90.7) |
Pledged MSR liability expense | (255) | (221.3) | (269.1) |
Gain (loss) on extinguishment of debt | 0 | ||
Earnings of equity method investee | 18.5 | 3.6 | |
Other, net | (7.3) | 5.2 | 10.8 |
Total other income (expense), net | (345.7) | (285.1) | (342) |
Income (loss) before income taxes | 125.9 | 48.5 | (75.7) |
Total Assets | |||
Balance | 11,535 | 10,999.2 | 9,847.6 |
Operating Segments | Originations | |||
Results of Operations | |||
Servicing and subservicing fees | 2.1 | 8.5 | 6 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 61.2 | 82 | 53.1 |
Gain on loans held for sale, net | 52.9 | 124.5 | 105.2 |
Other revenue, net | 24.9 | 34.9 | 14.9 |
Revenue | 141.1 | 249.9 | 179.3 |
MSR valuation adjustments, net | 9.9 | 19.6 | 41.7 |
Operating expenses | 148.5 | 172.8 | 114.4 |
Other income (expense): | |||
Interest income | 31.2 | 17.7 | 7 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (29) | (22.3) | (9.8) |
Pledged MSR liability expense | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | 0 | ||
Earnings of equity method investee | 0 | ||
Other, net | (1.8) | (2.3) | 0.4 |
Total other income (expense), net | 0.4 | (6.9) | (2.5) |
Income (loss) before income taxes | 2.9 | 89.8 | 104.2 |
Total Assets | |||
Balance | 570.5 | 823.5 | 379.2 |
Operating Segments | Corporate Items and Other | |||
Results of Operations | |||
Servicing and subservicing fees | 0 | 0 | 0.1 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 0 | 0 | 0 |
Gain on loans held for sale, net | 0 | 0 | 0 |
Other revenue, net | 6.9 | 6.2 | 6.5 |
Revenue | 6.9 | 6.2 | 6.6 |
MSR valuation adjustments, net | 0 | 0 | 0 |
Operating expenses | 69.8 | 94.1 | 129.5 |
Other income (expense): | |||
Interest income | 1.5 | 0.5 | 1.9 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | (42.2) | (40.9) | (8.9) |
Pledged MSR liability expense | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | 0.9 | (15.5) | |
Earnings of equity method investee | 0 | ||
Other, net | (1.1) | 1.2 | (4.4) |
Total other income (expense), net | (40.9) | (54.7) | (11.3) |
Income (loss) before income taxes | (103.8) | (142.6) | (134.2) |
Total Assets | |||
Balance | 293.7 | 324.4 | 424.3 |
Intersegment Eliminations | |||
Results of Operations | |||
Servicing and subservicing fees | 0 | 0 | 0 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 0 | 0 | 0 |
Gain on loans held for sale, net | (15.7) | (25.3) | 17.4 |
Other revenue, net | 0 | 0 | 0 |
Revenue | (15.7) | (25.3) | 17.4 |
MSR valuation adjustments, net | 15.7 | 25.3 | 17.4 |
Operating expenses | 0 | 0 | 0 |
Other income (expense): | |||
Interest income | 0 | 0 | 0 |
Interest expense ($42.1, $31.7 and $0.0 due to related parties) | 0 | 0 | 0 |
Pledged MSR liability expense | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | 0 | ||
Earnings of equity method investee | 0 | ||
Other, net | 0 | 0 | 0 |
Total other income (expense), net | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Gains on derivatives | $ (15.7) | $ (25.3) | |
Facility-related | |||
Other income (expense): | |||
Restructuring costs | 6.3 | ||
Employee-related | |||
Other income (expense): | |||
Restructuring costs | $ 3.4 |
Business Segment Reporting - _2
Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 10.5 | $ 10.3 | $ 19.1 |
Amortization of debt discount and issuance costs | 10.1 | 7.8 | 7 |
Amortization of Intangible Assets | 4.3 | 0.7 | 0 |
Servicing | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 0.9 | 0.7 | 0.9 |
Amortization of debt discount and issuance costs | 0.8 | 0.7 | 0.5 |
Amortization of Intangible Assets | 4.3 | 0.7 | |
Originations | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 0.4 | 0.2 | 0.1 |
Corporate Items and Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 9.2 | 9.3 | 18.1 |
Amortization of debt discount and issuance costs | $ 9.3 | $ 7.1 | $ 6.5 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Number of days from fiscal year end that servicer is obliged to provide audited financial statements | 90 days | |
Capital requirement based on outstanding UPB of owned and subserviced portfolio | $ 372.4 | |
Covenant liquidity requirement | 41.4 | |
Capital | 589.4 | |
Cash and cash equivalents | $ 208 | $ 192.8 |
Percentage portfolio of loans serviced or subserviced | 2% | |
Amount | 199,600 | 205,600 |
Percentage of portfolio to total forward owned servicing | 10% | |
Percentage of government-insured loans UPB to total UPB serviced and sub-serviced | 4% | |
Percentage of Originations and purchases to total originations and purchases | 11% | |
CA DFPI | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Litigation Settlement, Amount Awarded to Other Party | $ 2.5 | |
Owned Mortgage Servicing Rights | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Amount | 126,200 | 127,900 |
Owned Mortgage Servicing Rights | Loan Count | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Loans originated and purchased | loan | 6,148 | |
Amount | loan | 83,282 | |
Owned Mortgage Servicing Rights | Unpaid Principal Balance | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Loans originated and purchased | 2,000 | |
Amount | 12,700 | |
PMC | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Cash and cash equivalents | $ 181.5 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | |||
Funded amount in connection with reverse mortgage loans | $ 246.1 | $ 226.6 | |
Threshold percentage of outstanding principal balance on maximum claim amount | 98% | ||
Weighted average remaining lease term (years) | 4 years 3 months 18 days | ||
Restricted cash | $ 43.9 | 60.7 | $ 52.3 |
Weighted average discount rate (percent) | 8.70% | ||
Operating lease cost | $ 8.3 | 8.8 | 14.6 |
Variable lease cost | 1 | 1.6 | 1.6 |
Floating Rate Reverse Mortgage Loans | |||
Other Commitments [Line Items] | |||
Additional borrowing capacity to borrowers | 1,800 | 1,500 | $ 2,000 |
Forward Mortgage Loan Interest Rate Lock Commitments | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | 540.1 | ||
Reverse Loans IRLCs | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | $ 13.8 | ||
NRZ | Unpaid Principal Balance | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 17% | ||
NRZ | Loan Count | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 28% | ||
NRZ | Delinquent Loans | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 68% | ||
MAV Asset Vehicle LLC | Unpaid Principal Balance | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 17% | ||
MAV Asset Vehicle LLC | Loan Count | Customer Concentration Risk | |||
Other Commitments [Line Items] | |||
Concentration risk (percentage) | 12% | ||
Leased Facility | |||
Other Commitments [Line Items] | |||
Restricted cash | $ 2.8 | $ 23.2 | |
Cost of Property Repairs and Maintenance | $ 2.9 |
Commitments - Schedule of Activ
Commitments - Schedule of Activity Related to HMBS Repurchases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) security | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 586 |
Additions, repurchase securities, number | security | 865 |
Recoveries, net, repurchase securities, number | security | (730) |
Transfers, repurchase securities, number | security | 0 |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 721 |
Beginning balance, repurchase securities, value | $ | $ 129.1 |
Additions, repurchase securities, value | $ | 235.7 |
Recoveries, repurchase securities, value | $ | (182.2) |
Transfers, repurchase securities, value | $ | 0 |
Change in value, repurchase securities, value | $ | (4.2) |
Ending balance, repurchase securities, value | $ | $ 178.4 |
Active | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 138 |
Additions, repurchase securities, number | security | 644 |
Recoveries, net, repurchase securities, number | security | (531) |
Transfers, repurchase securities, number | security | 13 |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 264 |
Beginning balance, repurchase securities, value | $ | $ 35.3 |
Additions, repurchase securities, value | $ | 175.1 |
Recoveries, repurchase securities, value | $ | (139.6) |
Transfers, repurchase securities, value | $ | (0.2) |
Change in value, repurchase securities, value | $ | 0.1 |
Ending balance, repurchase securities, value | $ | $ 70.7 |
Inactive | |
Schedule Of Repurchases Activity [Roll Forward] | |
Beginning balance, repurchase securities, number | security | 448 |
Additions, repurchase securities, number | security | 221 |
Recoveries, net, repurchase securities, number | security | (199) |
Transfers, repurchase securities, number | security | (13) |
Change in value, repurchase securities, number | security | 0 |
Ending balance, repurchase securities, number | security | 457 |
Beginning balance, repurchase securities, value | $ | $ 93.8 |
Additions, repurchase securities, value | $ | 60.6 |
Recoveries, repurchase securities, value | $ | (42.6) |
Transfers, repurchase securities, value | $ | 0.2 |
Change in value, repurchase securities, value | $ | (4.3) |
Ending balance, repurchase securities, value | $ | $ 107.7 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rental Commitments under Non-cancelable Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 5.1 | |
2023 | 4.4 | |
2024 | 3.6 | |
2025 | 3 | |
2026 | 2.3 | |
Thereafter | 1.1 | |
Total minimum lease payments, gross | 19.6 | |
Less: Adjustment to present value | (3) | |
Total lease payments, net | $ 16.6 | $ 16.8 |
Weighted average discount rate (percent) | 8.70% |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||
Accrued legal fees and settlements | $ 42.2 | $ 44 | ||
Outstanding representation and warranty repurchase demands | $ 66.7 | $ 52.5 | ||
Outstanding representation and warranty repurchase demands, number of loans | loan | 354 | 288 | ||
Representation warranty and compensatory fees obligations | $ 41.5 | $ 49.4 | $ 40.4 | $ 50.8 |
Contingencies - Schedule of Cha
Contingencies - Schedule of Changes in Liability for Representation and Warrant Obligations and Indemnification Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Indemnification Obligations Liability [Roll Forward] | |||
Beginning balance | $ 49.4 | $ 40.4 | $ 50.8 |
Provision (reversal) for representation and warranty obligations | 0.3 | 3.2 | (7.8) |
New production liability | 3 | 4.7 | 2.6 |
Charge-offs and other | (11.2) | 1.1 | (5.3) |
Ending balance | $ 41.5 | $ 49.4 | $ 40.4 |