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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Ocwen Financial Corp | NYSE:OCN | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 25.08 | 0 | 00:00:00 |
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| For the transition period from: ____________________ to ____________________ | |||||
| Florida | 65-0039856 | ||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| 1661 Worthington Road, Suite 100 | 33409 | ||||||||||
West Palm Beach, | Florida | ||||||||||
| (Address of principal executive office) | (Zip Code) | ||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, $0.01 Par Value | OCN | New York Stock Exchange | ||||||
| Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
| Emerging growth company | ☐ | |||||||||||||
| PAGE | |||||||||||
Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 | |||||||||||
Consolidated Statements of Operations for the Three Months Ended March 31, 2023 and 2022 | |||||||||||
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2023 and 2022 | |||||||||||
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2023 and 2022 | |||||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 | |||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 216.6 | $ | 208.0 | |||||||
Restricted cash ($17.8 and $17.6 related to variable interest entities (VIEs)) | 39.3 | 66.2 | |||||||||
| Mortgage servicing rights (MSRs), at fair value | 2,580.6 | 2,665.2 | |||||||||
Advances, net ($548.8 and $608.4 related to VIEs) | 656.9 | 718.9 | |||||||||
Loans held for sale ($845.2 and $617.8 carried at fair value) | 849.4 | 622.7 | |||||||||
Loans held for investment, at fair value ($6.2 and $6.7 related to VIEs) | 7,669.0 | 7,510.8 | |||||||||
| Receivables, net | 200.2 | 180.8 | |||||||||
| Investment in equity method investee | 36.8 | 42.2 | |||||||||
| Premises and equipment, net | 18.9 | 20.2 | |||||||||
Other assets ($32.9 and $8.0 carried at fair value) ($2.0 and $3.2 related to VIEs) | 359.3 | 364.2 | |||||||||
| Total assets | $ | 12,627.0 | $ | 12,399.2 | |||||||
| Liabilities and Equity | |||||||||||
| Liabilities | |||||||||||
| Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | $ | 7,470.6 | $ | 7,326.8 | |||||||
Other financing liabilities, at fair value ($318.7 and $329.8 due to related party) ($6.2 and $6.7 related to VIEs) | 1,152.5 | 1,137.4 | |||||||||
Advance match funded liabilities ($468.9 and $512.5 related to VIEs) | 469.9 | 513.7 | |||||||||
| Mortgage loan warehouse facilities | 948.3 | 702.7 | |||||||||
| MSR financing facilities, net | 914.6 | 953.8 | |||||||||
Senior notes, net ($232.5 and $230.2 due to related party) | 602.3 | 599.6 | |||||||||
Other liabilities ($12.4 and $15.8 carried at fair value) | 652.5 | 708.5 | |||||||||
| Total liabilities | $ | 12,210.7 | 11,942.5 | ||||||||
| Commitments and Contingencies (Notes 19 and 20) | |||||||||||
| Stockholders’ Equity | |||||||||||
Common stock, $.01 par value; 13,333,333 shares authorized; 7,638,611 and 7,526,117 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 0.1 | 0.1 | |||||||||
| Additional paid-in capital | 546.7 | 547.0 | |||||||||
| Accumulated deficit | (128.1) | (87.9) | |||||||||
| Accumulated other comprehensive loss, net of income taxes | (2.4) | (2.5) | |||||||||
| Total stockholders’ equity | 416.3 | 456.7 | |||||||||
| Total liabilities and stockholders’ equity | $ | 12,627.0 | $ | 12,399.2 | |||||||
| For the Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Revenue | |||||||||||
| Servicing and subservicing fees | $ | 232.2 | $ | 212.6 | |||||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 21.2 | 13.1 | |||||||||
| Gain (loss) on loans held for sale, net | 2.8 | (3.2) | |||||||||
| Other revenue, net | 5.6 | 9.1 | |||||||||
| Total revenue | 261.8 | 231.6 | |||||||||
| MSR valuation adjustments, net | (69.0) | 35.4 | |||||||||
| Operating expenses | |||||||||||
| Compensation and benefits | 58.0 | 68.0 | |||||||||
| Servicing and origination | 15.7 | 14.2 | |||||||||
| Technology and communications | 13.4 | 14.9 | |||||||||
| Professional services | 13.3 | 12.2 | |||||||||
| Occupancy and equipment | 8.8 | 10.1 | |||||||||
| Other expenses | 4.9 | 7.6 | |||||||||
| Total operating expenses | 114.1 | 127.0 | |||||||||
| Other income (expense) | |||||||||||
| Interest income | 14.1 | 7.1 | |||||||||
Interest expense ($10.8 and $10.4 on amounts due to related party) | (62.3) | (37.9) | |||||||||
Pledged MSR liability expense ($14.2 and $14.3 on amounts due to related party) | (70.3) | (59.7) | |||||||||
| Earnings of equity method investee | 0.3 | 12.0 | |||||||||
| Other, net | 1.2 | (0.2) | |||||||||
| Total other income (expense), net | (117.0) | (78.7) | |||||||||
| Income (loss) before income taxes | (38.3) | 61.3 | |||||||||
| Income tax expense | 1.9 | 3.2 | |||||||||
| Net income (loss) | $ | (40.2) | $ | 58.1 | |||||||
| Earnings (loss) per share | |||||||||||
| Basic | $ | (5.34) | $ | 6.30 | |||||||
| Diluted | $ | (5.34) | $ | 6.01 | |||||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 7,533,561 | 9,215,122 | |||||||||
| Diluted | 7,533,561 | 9,661,567 | |||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Net income (loss) | $ | (40.2) | $ | 58.1 | |||||||
| Other comprehensive income (loss), net of income taxes: | |||||||||||
Change in unfunded pension plan obligation liability | — | 0.1 | |||||||||
| Other | 0.1 | — | |||||||||
| Comprehensive income (loss) | $ | (40.1) | $ | 58.2 | |||||||
| Common Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Taxes | Total | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 7,526,117 | $ | 0.1 | $ | 547.0 | $ | (87.9) | $ | (2.5) | $ | 456.7 | ||||||||||||||||||||||||
| Net loss | — | — | — | (40.2) | — | (40.2) | |||||||||||||||||||||||||||||
| Equity-based compensation and other | 112,494 | — | (0.3) | — | — | (0.3) | |||||||||||||||||||||||||||||
| Other comprehensive income, net of income taxes | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||||||||||||||
| Balance at March 31, 2023 | 7,638,611 | $ | 0.1 | $ | 546.7 | $ | (128.1) | $ | (2.4) | $ | 416.3 | ||||||||||||||||||||||||
| Balance at December 31, 2021 | 9,208,312 | $ | 0.1 | $ | 592.6 | $ | (113.6) | $ | (2.4) | $ | 476.7 | ||||||||||||||||||||||||
| Net income | — | — | — | 58.1 | — | 58.1 | |||||||||||||||||||||||||||||
| Equity-based compensation and other | 35,346 | — | (0.8) | — | — | (0.8) | |||||||||||||||||||||||||||||
| Other comprehensive loss, net of income taxes | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||||||||||||||
| Balance at March 31, 2022 | 9,243,658 | $ | 0.1 | $ | 591.8 | $ | (55.5) | $ | (2.3) | $ | 534.1 | ||||||||||||||||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | (40.2) | $ | 58.1 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| MSR valuation adjustments, net | 90.3 | (7.2) | |||||||||
| Loss on sale of MSRs, net | 0.2 | 0.1 | |||||||||
| Provision for bad debts (advances and receivables) | 5.7 | 4.1 | |||||||||
| Provision for (reversal of) indemnification obligations | 2.9 | (3.2) | |||||||||
| Depreciation | 1.8 | 2.6 | |||||||||
| Amortization of debt issuance costs and discount | 2.8 | 2.5 | |||||||||
| Amortization of intangibles | 1.5 | 0.6 | |||||||||
| Equity-based compensation expense | 2.1 | (0.1) | |||||||||
Net loss (gain) on valuation of loans held for investment and HMBS-related borrowings | (14.2) | 3.1 | |||||||||
| Loss (gain) on loans held for sale, net | (2.8) | 3.2 | |||||||||
| Earnings of equity method investee | (0.3) | (12.0) | |||||||||
| Distribution of earnings from equity method investee | 0.3 | 12.0 | |||||||||
| Origination and purchase of loans held for sale | (2,552.4) | (3,472.6) | |||||||||
| Proceeds from sale and collections of loans held for sale | 2,312.3 | 3,600.9 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Decrease in advances, net | 62.8 | 27.3 | |||||||||
| Increase in receivables and other assets, net | (28.3) | (9.9) | |||||||||
| Increase in derivatives, net | (29.0) | (23.3) | |||||||||
| Increase (decrease) in other liabilities | (20.5) | 15.4 | |||||||||
| Other, net | (2.4) | (3.5) | |||||||||
| Net cash provided by (used in) operating activities | (207.4) | 198.2 | |||||||||
| Cash flows from investing activities | |||||||||||
| Origination of loans held for investment | (235.3) | (620.2) | |||||||||
Principal payments received on loans held for investment | 236.1 | 519.0 | |||||||||
| Acquisition of loans held for investment, net | — | (3.6) | |||||||||
| Purchase of MSRs | (30.4) | (64.3) | |||||||||
| Proceeds from sale of MSRs | 0.3 | 134.3 | |||||||||
| Proceeds from sale of advances | 4.6 | — | |||||||||
| Additions to premises and equipment | (1.1) | (1.4) | |||||||||
| Purchase of real estate | (0.5) | (0.2) | |||||||||
| Proceeds from sale of real estate | 0.8 | 2.1 | |||||||||
| Proceeds from sale of premises and equipment | 0.1 | — | |||||||||
| Distribution from (investment in) equity method investee, net | 5.5 | (11.6) | |||||||||
| Other, net | — | 0.4 | |||||||||
| Net cash provided by (used in) investing activities | (19.9) | (45.7) | |||||||||
| Cash flows from financing activities | |||||||||||
| Repayment of advance match funded liabilities, net | (43.8) | (15.0) | |||||||||
| Proceeds from (repayment of) mortgage loan warehouse facilities, net | 245.6 | (126.0) | |||||||||
| Proceeds from MSR financing facilities | 144.4 | 114.2 | |||||||||
| Repayment of MSR financing facilities | (183.3) | (121.0) | |||||||||
| Payment of debt issuance costs | — | (0.9) | |||||||||
| Proceeds from other financing liabilities - Sale of MSRs accounted for as secured financing | 3.3 | 39.8 | |||||||||
| Proceeds from other financing liabilities - Excess Servicing Spread (ESS) liability | 68.7 | — | |||||||||
| Repayment of other financing liabilities | (21.8) | (28.4) | |||||||||
Proceeds from sale of Home Equity Conversion Mortgages (HECM, or reverse mortgages) accounted for as a financing (HMBS-related borrowings) | 231.2 | 583.9 | |||||||||
| Repayment of HMBS-related borrowings | (235.3) | (517.4) | |||||||||
| Net cash provided by (used in) financing activities | 209.0 | (70.9) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (18.3) | 81.6 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of year | 274.2 | 263.4 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 255.9 | $ | 345.0 | |||||||
| Supplemental non-cash investing and financing activities: | |||||||||||
Recognition of gross right-of-use asset and lease liability: | |||||||||||
| Right-of-use asset | $ | 0.6 | $ | 8.1 | |||||||
| Lease liability | 0.6 | 8.1 | |||||||||
| Transfers of loans held for sale to real estate owned (REO) | 4.4 | 0.4 | |||||||||
| Loans held for investment acquired at fair value | $ | — | $ | 224.1 | |||||||
| HMBS-related borrowings assumed at fair value | — | (219.5) | |||||||||
| Purchase price holdback | — | (0.9) | |||||||||
| Net cash paid to acquire loans held for investment | $ | — | $ | 3.7 | |||||||
| March 31, 2023 | March 31, 2022 | ||||||||||
| Cash and cash equivalents | $ | 216.6 | $ | 268.7 | |||||||
| Restricted cash and equivalents: | |||||||||||
| Debt service accounts | 21.5 | 13.1 | |||||||||
| Other restricted cash | 17.8 | 63.2 | |||||||||
| Total cash, cash equivalents and restricted cash reported in the statements of cash flows | $ | 255.9 | $ | 345.0 | |||||||
Note 1 - Organization and Basis of Presentation | ||
Note 2 – Securitizations and Variable Interest Entities | ||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Proceeds received from securitizations | $ | 2,316.8 | $ | 3,588.3 | |||||||
| Servicing fees collected (1) | 27.0 | 21.7 | |||||||||
Purchases of previously transferred assets, net of claims reimbursed | (3.1) | (2.0) | |||||||||
| $ | 2,340.6 | $ | 3,607.9 | ||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Carrying value of assets | |||||||||||
| MSRs, at fair value | $ | 515.2 | $ | 524.3 | |||||||
| Advances | 62.5 | 75.9 | |||||||||
| UPB of loans transferred (1) | 39,283.7 | 37,571.1 | |||||||||
| Maximum exposure to loss (2) | $ | 39,861.4 | $ | 38,171.2 | |||||||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Match funded advances (Advances, net) | $ | 548.8 | $ | 608.4 | |||||||
| Debt service accounts (Restricted cash) | 15.9 | 15.8 | |||||||||
| Unamortized deferred lender fees (Other assets) | 1.4 | 2.3 | |||||||||
| Prepaid interest (Other assets) | 0.7 | 0.9 | |||||||||
| Advance match funded liabilities | 468.9 | 512.5 | |||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||
| MSRs pledged (MSRs, at fair value) | $ | 599.8 | $ | 696.9 | |||||||
| Debt service account (Restricted cash) | 1.9 | 1.8 | |||||||||
| Unamortized deferred lender fees (Other assets) | 0.6 | 1.1 | |||||||||
| Outstanding borrowings (MSR financing facilities, net) | 342.3 | 366.5 | |||||||||
| Unamortized debt issuance costs (MSR financing facilities, net) | 0.6 | 0.8 | |||||||||
Note 3 – Fair Value | ||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| 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 | $ | 845.2 | $ | 845.2 | $ | 617.8 | $ | 617.8 | ||||||||||||||||||||
Loans held for sale, at lower of cost or fair value (b) | 3 | 4.2 | 4.2 | 4.9 | 4.9 | ||||||||||||||||||||||||
| Total Loans held for sale | $ | 849.4 | $ | 849.4 | $ | 622.7 | $ | 622.7 | |||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Level | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||
| Loans held for investment, at fair value | |||||||||||||||||||||||||||||
| Loans held for investment - Reverse mortgages (a) | 3 | $ | 7,662.8 | $ | 7,662.8 | $ | 7,504.1 | $ | 7,504.1 | ||||||||||||||||||||
Loans held for investment - Restricted for securitization investors (a) | 3 | 6.2 | 6.2 | 6.7 | 6.7 | ||||||||||||||||||||||||
| Total Loans held for investment, at fair value | $ | 7,669.0 | $ | 7,669.0 | $ | 7,510.8 | $ | 7,510.8 | |||||||||||||||||||||
Advances, net (c) | 3 | $ | 656.9 | $ | 656.9 | $ | 718.9 | $ | 718.9 | ||||||||||||||||||||
| Receivables, net (c) | 3 | 200.2 | 200.2 | 180.8 | 180.8 | ||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||
| Advance match funded liabilities (c) | 3 | $ | 469.9 | $ | 469.9 | $ | 513.7 | $ | 513.7 | ||||||||||||||||||||
| Financing liabilities, at fair value | |||||||||||||||||||||||||||||
| HMBS-related borrowings (a) | 3 | $ | 7,470.6 | $ | 7,470.6 | $ | 7,326.8 | $ | 7,326.8 | ||||||||||||||||||||
| Other financing liabilities | |||||||||||||||||||||||||||||
| Financing liability - Pledged MSR liability (a) | 3 | $ | 883.2 | $ | 883.2 | $ | 931.7 | $ | 931.7 | ||||||||||||||||||||
| Financing liability - Excess Servicing Spread (ESS) (a) | 3 | 263.1 | 263.1 | 199.0 | 199.0 | ||||||||||||||||||||||||
| Financing liability - Owed to securitization investors (a) | 3 | 6.2 | 6.2 | 6.7 | 6.7 | ||||||||||||||||||||||||
| Total Other financing liabilities | $ | 1,152.5 | $ | 1,152.5 | $ | 1,137.4 | $ | 1,137.4 | |||||||||||||||||||||
| Mortgage loan warehouse facilities (c) | 3 | 948.3 | 948.3 | 702.7 | 702.7 | ||||||||||||||||||||||||
| MSR financing facilities (c) (d) | 3 | 914.6 | 893.8 | 953.8 | 932.1 | ||||||||||||||||||||||||
| Senior notes: | |||||||||||||||||||||||||||||
| PMC Senior secured notes due 2026 (c) (d) | 2 | $ | 369.8 | $ | 329.2 | $ | 369.4 | $ | 331.4 | ||||||||||||||||||||
| OFC Senior secured notes due 2027 (c) (d) | 3 | 232.5 | 221.6 | 230.2 | 223.9 | ||||||||||||||||||||||||
| Total Senior notes | $ | 602.3 | $ | 550.8 | $ | 599.6 | $ | 555.2 | |||||||||||||||||||||
| Derivative financial instrument assets (liabilities), net | |||||||||||||||||||||||||||||
| Interest rate lock commitments (IRLCs) (a) | 3 | $ | 4.8 | $ | 4.8 | $ | (0.7) | $ | (0.7) | ||||||||||||||||||||
| Forward sales of loans (a) | 1 | — | — | 0.5 | 0.5 | ||||||||||||||||||||||||
| TBA / Forward mortgage-backed securities (MBS) trades (a) | 1 | 1.4 | 1.4 | (0.7) | (0.7) | ||||||||||||||||||||||||
| Interest rate swap futures (a) | 1 | 22.9 | 22.9 | (13.6) | (13.6) | ||||||||||||||||||||||||
| TBA forward pipeline trades (a) | 1 | (10.4) | (10.4) | 6.6 | 6.6 | ||||||||||||||||||||||||
| Option contracts (a) | 2 | 1.3 | 1.3 | — | — | ||||||||||||||||||||||||
| Other (a) | 3 | 0.2 | 0.2 | (0.1) | (0.1) | ||||||||||||||||||||||||
| MSRs (a) | 3 | $ | 2,580.6 | $ | 2,580.6 | $ | 2,665.2 | $ | 2,665.2 | ||||||||||||||||||||
| Loans Held for Investment - Restricted for Securitization Investors | Financing Liability - Owed to Securitization Investors | Loans Held for Sale - Fair Value | ESS Financing Liability | IRLCs | |||||||||||||||||||||||||
| Three months ended March 31, 2023 | |||||||||||||||||||||||||||||
| Beginning balance | $ | 6.7 | $ | (6.7) | $ | 32.1 | $ | (199.0) | $ | (0.7) | |||||||||||||||||||
| Purchases, issuances, sales and settlements | |||||||||||||||||||||||||||||
| Purchases | — | — | 12.4 | — | — | ||||||||||||||||||||||||
| Issuances (1) | — | — | — | (68.7) | 5.8 | ||||||||||||||||||||||||
| Sales | — | — | (20.2) | — | — | ||||||||||||||||||||||||
| Settlements | (0.5) | 0.5 | — | 6.8 | — | ||||||||||||||||||||||||
| Transfers: | |||||||||||||||||||||||||||||
| Loans held for sale, at fair value (1) | — | — | — | — | (20.4) | ||||||||||||||||||||||||
| Receivables, net | — | — | (0.4) | — | — | ||||||||||||||||||||||||
| Net addition (disposition/derecognition) | (0.5) | 0.5 | (8.2) | (62.0) | (14.6) | ||||||||||||||||||||||||
| Change in fair value included in earnings (1) | — | — | (0.5) | (2.1) | 20.1 | ||||||||||||||||||||||||
| Ending balance | $ | 6.2 | $ | (6.2) | $ | 23.3 | $ | (263.1) | $ | 4.8 | |||||||||||||||||||
| Loans Held for Investment - Restricted for Securitization Investors | Financing Liability - Owed to Securitization Investors | Loans Held for Sale - Fair Value | IRLCs | ||||||||||||||||||||
| Three months ended March 31, 2022 | |||||||||||||||||||||||
| Beginning balance | $ | 7.9 | $ | (7.9) | $ | 220.9 | $ | 18.1 | |||||||||||||||
| Purchases, issuances, sales and settlements | |||||||||||||||||||||||
| Purchases | — | — | 60.7 | — | |||||||||||||||||||
| Issuances (1) | — | — | — | 79.6 | |||||||||||||||||||
| Sales | — | — | (47.8) | — | |||||||||||||||||||
| Settlements | (0.2) | 0.2 | — | — | |||||||||||||||||||
| Transfers: | |||||||||||||||||||||||
| Loans held for sale, at fair value (1) | — | — | — | (57.5) | |||||||||||||||||||
| Receivables, net | — | — | (0.1) | — | |||||||||||||||||||
| Net addition (disposition/derecognition) | (0.2) | 0.2 | 12.8 | 22.1 | |||||||||||||||||||
| Change in fair value included in earnings (1) | — | — | (3.3) | (34.5) | |||||||||||||||||||
| Ending balance | $ | 7.7 | $ | (7.7) | $ | 230.4 | $ | 5.7 | |||||||||||||||
| Significant unobservable assumptions | March 31, 2023 | December 31, 2022 | |||||||||
| Life in years | |||||||||||
| Range | 0.9 to 7.8 | 1.0 to 7.6 | |||||||||
| Weighted average | 5.2 | 5.0 | |||||||||
| Conditional prepayment rate, including voluntary and involuntary prepayments | |||||||||||
| Range | 12.3% to 44.0% | 13.2% to 45.0% | |||||||||
| Weighted average | 17.5 | % | 18.0 | % | |||||||
| Discount rate | 4.7 | % | 5.1 | % | |||||||
| Significant unobservable assumptions | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||
| Agency | Non-Agency | Agency | Non-Agency | ||||||||||||||||||||
| Weighted average prepayment speed | 7.2 | % | 7.9 | % | 6.9 | % | 7.9 | % | |||||||||||||||
| Weighted average lifetime delinquency rate | 1.3 | % | 10.5 | % | 1.4 | % | 10.1 | % | |||||||||||||||
| Weighted average discount rate | 9.6 | % | 10.5 | % | 9.6 | % | 10.6 | % | |||||||||||||||
| Weighted average cost to service (in dollars) | $ | 72 | $ | 205 | $ | 72 | $ | 201 | |||||||||||||||
| Adverse change in fair value | 10% | 20% | |||||||||
| Change in weighted average prepayment speeds (in percentage points) | 0.9 | 1.7 | |||||||||
| Change in fair value due to change in weighted average prepayment speeds | $ | (63.2) | $ | (123.6) | |||||||
| Change in weighted average discount rate (in percentage points) | 1.0 | 1.9 | |||||||||
| Change in fair value due to change in weighted average discount rate | $ | (73.3) | $ | (140.9) | |||||||
| Significant unobservable assumptions | March 31, 2023 | December 31, 2022 | |||||||||
| Life in years | |||||||||||
| Range | 0.9 to 7.8 | 1.0 to 7.6 | |||||||||
| Weighted average | 5.2 | 5.0 | |||||||||
| Conditional prepayment rate | |||||||||||
| Range | 12.3% to 44.0% | 13.2% to 45.0% | |||||||||
| Weighted average | 17.5 | % | 18.0 | % | |||||||
| Discount rate | 4.6 | % | 5.0 | % | |||||||
| Significant unobservable assumptions | March 31, 2023 | December 31, 2022 | |||||||||
| Weighted average prepayment speed | 7.6 | % | 7.6 | % | |||||||
| Weighted average delinquency rate | 7.3 | % | 7.1 | % | |||||||
| Weighted average discount rate | 10.2 | % | 10.2 | % | |||||||
| Weighted average cost to service (in dollars) | $ | 177 | $ | 174 | |||||||
Note 4 – Loans Held for Sale | ||
Loans Held for Sale - Fair Value | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Beginning balance | $ | 617.8 | $ | 917.5 | |||||||
| Originations and purchases | 2,552.4 | 3,472.6 | |||||||||
| Proceeds from sales | (2,296.1) | (3,570.9) | |||||||||
| Principal collections | (15.4) | (29.5) | |||||||||
| Transfers from (to): | |||||||||||
| Loans held for investment, at fair value | 1.6 | 3.1 | |||||||||
| Receivables, net | 1.1 | (0.7) | |||||||||
| REO (Other assets) | (4.2) | — | |||||||||
| Capitalization of advances on Ginnie Mae modifications | 2.0 | 7.3 | |||||||||
| Realized loss on sale of loans | (22.0) | (72.3) | |||||||||
| Fair value gain (loss) on loans held for sale | 6.2 | (12.3) | |||||||||
| Other | 1.7 | 1.0 | |||||||||
Ending balance (1) | $ | 845.2 | $ | 716.0 | |||||||
| UPB | $ | 845.6 | $ | 736.6 | |||||||
| Premium (discount) | 6.7 | (3.9) | |||||||||
| Fair value adjustment | (7.1) | (16.7) | |||||||||
| Total | $ | 845.2 | $ | 716.0 | |||||||
Loans Held for Sale - Lower of Cost or Fair Value | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Carrying amount before valuation allowance | $ | 8.1 | $ | 13.3 | |||||||
| Valuation allowance | (3.9) | (4.3) | |||||||||
| Ending balance, net | $ | 4.2 | $ | 9.0 | |||||||
Gain (Loss) on Loans Held for Sale, Net | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Gain (loss) on sales of loans, net | |||||||||||
MSRs retained on transfers of forward mortgage loans | $ | 31.1 | $ | 45.8 | |||||||
| Gain (loss) on sale of forward mortgage loans (1) | (22.1) | (72.3) | |||||||||
| Gain (loss) on sale of repurchased Ginnie Mae loans (1) | 0.2 | 0.6 | |||||||||
| 9.1 | (25.9) | ||||||||||
| Change in fair value of IRLCs | 5.7 | (12.1) | |||||||||
| Change in fair value of loans held for sale | 4.8 | (11.7) | |||||||||
| Gain (loss) on economic hedge instruments (2) | (16.4) | 47.1 | |||||||||
| Other | (0.3) | (0.7) | |||||||||
| $ | 2.8 | $ | (3.2) | ||||||||
| Note 5 - Reverse Mortgages | ||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Loans Held for Investment - Reverse Mortgages | HMBS - Related Borrowings | Loans Held for Investment - Reverse Mortgages | HMBS - Related Borrowings | ||||||||||||||||||||
| Beginning balance | $ | 7,504.1 | $ | (7,326.8) | $ | 7,199.8 | $ | (6,885.0) | |||||||||||||||
| Originations | 235.3 | — | 620.2 | — | |||||||||||||||||||
| Securitization of HECM loans accounted for as a financing (including realized fair value changes) | — | (231.2) | — | (583.9) | |||||||||||||||||||
| Additional proceeds from securitization of HECM loans and tails | — | (6.4) | — | (12.2) | |||||||||||||||||||
| Acquisition | — | — | 211.3 | (209.1) | |||||||||||||||||||
| Repayments (principal payments received) | (235.6) | 235.3 | (518.8) | 517.4 | |||||||||||||||||||
| Transfers to: | |||||||||||||||||||||||
| Loans held for sale, at fair value | (1.6) | — | (3.2) | — | |||||||||||||||||||
| Receivables, net | (0.9) | — | (12.5) | — | |||||||||||||||||||
| Other assets | — | — | (0.1) | — | |||||||||||||||||||
| Change in fair value included in earnings (1) | 161.5 | (141.5) | (45.1) | 54.0 | |||||||||||||||||||
| Ending balance | $ | 7,662.8 | $ | (7,470.6) | $ | 7,451.6 | $ | (7,118.8) | |||||||||||||||
| Securitized loans (pledged to HMBS-Related Borrowings) | $ | 7,545.2 | $ | (7,470.6) | $ | 7,202.0 | $ | (7,118.8) | |||||||||||||||
| Unsecuritized loans | 117.6 | 249.5 | |||||||||||||||||||||
| Total | $ | 7,662.8 | $ | 7,451.6 | |||||||||||||||||||
Gain on Reverse Loans Held for Investment and HMBS-related Borrowings, Net | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Gain on new originations (1) | $ | 5.9 | $ | 20.7 | |||||||
| Gain on tail securitizations (2) | 3.6 | 3.8 | |||||||||
| Net interest income (servicing fee) (3) | 5.9 | 5.3 | |||||||||
| Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net | 4.5 | (21.0) | |||||||||
| Fair value gains (losses) included in earnings (2) | 20.0 | 8.8 | |||||||||
| Loan fees and other | 1.2 | 4.3 | |||||||||
| $ | 21.2 | $ | 13.1 | ||||||||
Note 6 – Advances | ||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Principal and interest | $ | 204.5 | $ | 215.5 | |||||||
| Taxes and insurance | 320.2 | 367.5 | |||||||||
| Foreclosures, bankruptcy, REO and other | 138.4 | 142.1 | |||||||||
| 663.1 | 725.1 | ||||||||||
| Allowance for losses | (6.2) | (6.2) | |||||||||
| Advances, net | $ | 656.9 | $ | 718.9 | |||||||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Beginning balance - before Allowance for Losses | $ | 725.1 | $ | 779.5 | |||||||
| New advances | 188.9 | 197.3 | |||||||||
| Transfer from Receivables | 8.9 | 1.6 | — | ||||||||
| Sales of advances | (4.2) | (0.6) | |||||||||
| Collections of advances and other | (255.6) | (239.2) | |||||||||
| Ending balance - before Allowance for Losses | 663.1 | 736.9 | |||||||||
| Beginning balance - Allowance for Losses | $ | (6.2) | $ | (7.0) | |||||||
| Provision expense | (1.7) | (1.8) | |||||||||
| Net charge-offs and other | 1.7 | 1.9 | |||||||||
| Ending balance - Allowance for Losses | (6.2) | (6.9) | |||||||||
| Ending balance, net | $ | 656.9 | $ | 730.0 | |||||||
Note 7 – Mortgage Servicing | ||
MSRs – At Fair Value | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||
| Agency | Non-Agency | Total | Agency | Non-Agency | Total | ||||||||||||||||||||||||||||||
| Beginning balance | $ | 1,931.8 | $ | 733.5 | $ | 2,665.2 | $ | 1,571.8 | $ | 678.3 | $ | 2,250.1 | |||||||||||||||||||||||
| Sales | — | — | — | (149.3) | — | (149.3) | |||||||||||||||||||||||||||||
| Additions: | |||||||||||||||||||||||||||||||||||
| Recognized on the sale of residential mortgage loans | 31.1 | — | 31.1 | 45.8 | — | 45.8 | |||||||||||||||||||||||||||||
| Purchases | 25.0 | — | 25.0 | 46.8 | — | 46.8 | |||||||||||||||||||||||||||||
| Servicing transfers and adjustments | — | — | — | — | (0.8) | (0.8) | |||||||||||||||||||||||||||||
| Net additions (sales) | 56.1 | — | 56.1 | (56.7) | (0.8) | (57.5) | |||||||||||||||||||||||||||||
| Changes in fair value recognized in earnings: | |||||||||||||||||||||||||||||||||||
| Changes in valuation inputs or assumptions | (42.1) | (41.5) | (83.6) | 194.5 | 9.0 | 203.5 | |||||||||||||||||||||||||||||
| Realization of expected cash flows | (49.3) | (7.8) | (57.1) | (47.7) | (25.2) | (72.8) | |||||||||||||||||||||||||||||
| Fair value gains (losses) recognized in earnings | (91.4) | (49.3) | (140.7) | 146.8 | (16.2) | 130.7 | |||||||||||||||||||||||||||||
| Ending balance | $ | 1,896.5 | $ | 684.2 | $ | 2,580.6 | $ | 1,661.9 | $ | 661.3 | $ | 2,323.3 | |||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
| Delinquent loans | Agency | Non - Agency | Total | Agency | Non - Agency | Total | |||||||||||||||||||||||||||||
| 30 days | 1.4 | % | 7.5 | % | 4.1 | % | 1.7 | % | 8.5 | % | 4.8 | % | |||||||||||||||||||||||
| 60 days | 0.4 | 3.0 | 1.6 | 0.5 | 3.3 | 1.8 | |||||||||||||||||||||||||||||
| 90 days or more | 1.0 | 8.4 | 4.3 | 1.1 | 8.6 | 4.5 | |||||||||||||||||||||||||||||
| Total 30-60-90 days or more | 2.8 | % | 18.9 | % | 10.0 | % | 3.3 | % | 20.4 | % | 11.1 | % | |||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||
| Fair Value | UPB ($ billions) | Fair Value | UPB ($ billions) | Fair Value | UPB ($ billions) | |||||||||||||||||||||
| Owned MSRs | $ | 1,673.1 | $ | 127.6 | $ | 1,710.6 | $ | 126.2 | $ | 1,435.2 | $ | 115.7 | ||||||||||||||
| Rithm and others transferred MSRs (1) (2) | 565.7 | $ | 46.7 | 601.2 | $ | 47.3 | 545.3 | $ | 51.5 | |||||||||||||||||
| MAV transferred MSRs (1) | 341.9 | $ | 25.7 | 353.4 | $ | 26.1 | 342.8 | $ | 26.8 | |||||||||||||||||
| Total MSRs | $ | 2,580.6 | $ | 200.0 | $ | 2,665.2 | $ | 199.6 | $ | 2,323.3 | $ | 194.0 | ||||||||||||||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Loan servicing and subservicing fees | |||||||||||
| Servicing | $ | 90.0 | $ | 88.5 | |||||||
| Subservicing | 19.7 | 14.7 | |||||||||
| MAV (1) | 18.2 | 16.6 | |||||||||
| Rithm and others (1) | 59.6 | 67.1 | |||||||||
| 187.5 | 187.0 | ||||||||||
| Ancillary income | |||||||||||
| Custodial accounts (float earnings) | 20.2 | 1.0 | |||||||||
| Late charges | 9.6 | 10.0 | |||||||||
| Reverse subservicing ancillary fees | 8.1 | 3.1 | |||||||||
| Loan collection fees | 2.6 | 2.9 | |||||||||
| Recording fees | 1.2 | 3.3 | |||||||||
| Boarding and deboarding fees | 0.9 | 1.8 | |||||||||
| GSE forbearance fees | 0.2 | 0.2 | |||||||||
| Other, net | 2.0 | 3.4 | |||||||||
| 44.7 | 25.6 | ||||||||||
| Total Servicing and subservicing fees | $ | 232.2 | $ | 212.6 | |||||||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| MSR fair value changes due to rates and assumptions (1) | $ | (83.6) | $ | 203.5 | |||||||
| MSR realization of expected cash flows (1) | (57.0) | (72.8) | |||||||||
| Total MSR fair value gains (losses) | (140.6) | 130.7 | |||||||||
| MSR pledged liability fair value changes due to rates and assumptions | 38.3 | (56.8) | |||||||||
| MSR pledged liability realization of expected cash flows | 14.5 | 28.3 | |||||||||
| Total MSR pledged liability fair value gains (losses) (2) | 52.8 | (28.5) | |||||||||
| ESS financing liability fair value changes due to rates and assumptions | (2.1) | — | |||||||||
| ESS financing liability realization of expected cash flows | 6.8 | — | |||||||||
| Total ESS financing liability fair value gains (losses) (2) | 4.7 | — | |||||||||
| Derivative fair value gain (loss) (MSR economic hedges) | 14.1 | (66.8) | |||||||||
| MSR valuation adjustments, net | $ | (69.0) | $ | 35.4 | |||||||
Note 8 — Other Financing Liabilities, at Fair Value | ||
| Outstanding Balance | |||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | March 31, 2023 | December 31, 2022 | |||||||||||||||||||
| MSR transfers not qualifying for sale accounting (1): | |||||||||||||||||||||||
| Original Rights to MSRs Agreements, at fair value - Rithm | MSRs | (1) | $ | 560.2 | $ | 601.2 | |||||||||||||||||
| Pledged MSR liability, at fair value - MAV | MSRs | (1) | 318.7 | 329.8 | |||||||||||||||||||
| Pledged MSR liability, at fair value - Others | MSRs | (1) | 4.3 | 0.7 | |||||||||||||||||||
| 883.2 | 931.7 | ||||||||||||||||||||||
| 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 | 6.2 | 6.7 | |||||||||||||||||||
| ESS financing liability, at fair value (3) | MSRs (3) | (3) | 263.1 | 199.0 | |||||||||||||||||||
| Total Other financing liabilities, at fair value | $ | 1,152.5 | $ | 1,137.4 | |||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||
| Pledged MSR Liability | Rithm and Others | MAV (1) | Total | Rithm and Others | MAV (1) | Total | |||||||||||||||||||||||||||||
| Beginning Balance | $ | 601.9 | $ | 329.8 | $ | 931.7 | $ | 558.9 | $ | 238.1 | $ | 797.1 | |||||||||||||||||||||||
| Additions | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| MSR transfers | 4.3 | 0.1 | 4.4 | — | 39.3 | 39.3 | |||||||||||||||||||||||||||||
| Changes in fair value due to inputs and assumptions | (35.8) | (2.5) | (38.3) | 6.8 | 50.0 | 56.8 | |||||||||||||||||||||||||||||
| Runoff and settlement | (5.9) | (8.6) | (14.5) | (19.9) | (8.4) | (28.3) | |||||||||||||||||||||||||||||
| Fair value (gain) loss (2) | (41.7) | (11.1) | (52.8) | (13.1) | 41.6 | 28.5 | |||||||||||||||||||||||||||||
| Calls | — | — | — | (0.6) | — | (0.6) | |||||||||||||||||||||||||||||
| Ending Balance | $ | 564.5 | $ | 318.7 | $ | 883.2 | $ | 545.2 | $ | 319.0 | $ | 864.3 | |||||||||||||||||||||||
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||
| Rithm and Others | MAV | Total | Rithm and Others | MAV | Total | ||||||||||||||||||||||||||||||
| Servicing fees collected on behalf of Rithm | $ | 59.6 | $ | 16.4 | $ | 76.0 | $ | 67.1 | $ | 15.7 | $ | 82.9 | |||||||||||||||||||||||
| Less: Subservicing fee retained by Ocwen | (17.3) | (2.2) | (19.5) | (19.4) | (2.1) | (21.5) | |||||||||||||||||||||||||||||
| Ancillary fee/income and other settlement (incl. expense reimbursement) | 3.3 | — | 3.3 | (2.3) | 0.6 | (1.7) | |||||||||||||||||||||||||||||
| Transferred MSR net servicing fee remittance | $ | 45.6 | $ | 14.2 | 59.8 | $ | 45.4 | $ | 14.3 | 59.7 | |||||||||||||||||||||||||
| ESS servicing spread remittance | 10.5 | — | |||||||||||||||||||||||||||||||||
| Pledged MSR liability expense | $ | 70.3 | $ | 59.7 | |||||||||||||||||||||||||||||||
Note 9 – Receivables | ||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Servicing-related receivables: | |||||||||||
| Government-insured loan claims - Forward | $ | 53.4 | $ | 65.0 | |||||||
| Government-insured loan claims - Reverse | 96.6 | 73.8 | |||||||||
| Due from custodial accounts | 22.7 | 16.3 | |||||||||
| Servicing fees | 7.7 | 6.4 | |||||||||
| Reimbursable expenses | 5.8 | 5.3 | |||||||||
| Subservicing fees and reimbursable expenses - Due from Rithm | 1.6 | 3.0 | |||||||||
| Receivable from sale of MSRs (holdback) | 1.5 | 1.5 | |||||||||
| Subservicing fees, reimbursable expenses and other - Due from MAV | 0.5 | 1.0 | |||||||||
| Other | 0.8 | 3.2 | |||||||||
| 190.6 | 175.5 | ||||||||||
| Income taxes receivable | 33.4 | 34.4 | |||||||||
| Due from MAV | 0.4 | 0.6 | |||||||||
| Other receivables | 5.3 | 4.6 | |||||||||
| 229.7 | 215.1 | ||||||||||
| Allowance for losses | (29.5) | (34.3) | |||||||||
| $ | 200.2 | $ | 180.8 | ||||||||
Allowance for Losses - Government-Insured Loan Claims | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Beginning balance | $ | 33.8 | $ | 41.5 | |||||||
| Provision | 4.1 | 2.2 | |||||||||
| Charge-offs and other, net | (8.8) | (2.9) | |||||||||
| Ending balance | $ | 29.1 | $ | 40.8 | |||||||
| Note 10 - Investment in Equity Method Investee and Related Party Transactions | ||
Note 11 – Other Assets | ||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Contingent loan repurchase asset | $ | 257.6 | $ | 289.9 | |||||||
| Derivatives, at fair value | 32.6 | 7.7 | |||||||||
| Prepaid expenses | 20.8 | 19.8 | |||||||||
| REO | 12.4 | 9.8 | |||||||||
Intangible assets, net (net of accumulated amortization of $6.5 million and $5.0 million) | 9.8 | 14.7 | |||||||||
| Derivative margin deposit | 6.7 | 1.5 | |||||||||
| Prepaid lender fees, net | 5.7 | 7.7 | |||||||||
| Prepaid representation, warranty and indemnification claims - Agency MSR sale | 5.0 | 5.0 | |||||||||
| Deferred tax asset, net | 2.6 | 2.6 | |||||||||
| Security deposits | 0.8 | 0.8 | |||||||||
| Other | 5.3 | 4.7 | |||||||||
| $ | 359.3 | $ | 364.2 | ||||||||
Note 12 – Borrowings | ||
Advance Match Funded Liabilities | Borrowing Capacity | Outstanding Balance | ||||||||||||||||||||||||||||||||||||
| Borrowing Type | Maturity | Amort. Date (1) | Total | Available (2) | March 31, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||||||
Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2015-VF5 | Aug. 2053 | Aug. 2023 | $ | 450.0 | $ | 45.0 | $ | 405.0 | $ | 422.5 | ||||||||||||||||||||||||||||
Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 | Aug. 2053 | Aug. 2023 | 90.0 | 26.1 | 63.9 | 90.0 | ||||||||||||||||||||||||||||||||
| EBO Advance facility (3) | May 2026 | NA | 14.4 | 13.4 | 1.0 | 1.2 | ||||||||||||||||||||||||||||||||
| $ | 554.4 | $ | 84.5 | $ | 469.9 | $ | 513.7 | |||||||||||||||||||||||||||||||
| Weighted average interest rate (4) | 7.65 | % | 7.09 | % | ||||||||||||||||||||||||||||||||||
| Mortgage Loan Warehouse Facilities | Available Borrowing Capacity | Outstanding Balance | ||||||||||||||||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | Un-committed | Committed (1) | March 31, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||||||
| $175 million Master repurchase agreement | Loans held for sale (LHFS), Receivables and REO | Aug. 2023 | $ | 47.8 | $ | — | $ | 127.2 | $ | 142.2 | ||||||||||||||||||||||||||||
| Master repurchase agreement (2) | LHFS and Loans Held for Investment (LHFI) | N/A | — | — | — | 100.3 | ||||||||||||||||||||||||||||||||
| $50 million Mortgage warehouse agreement (3) | LHFS | N/A | 50.0 | — | — | — | ||||||||||||||||||||||||||||||||
| $350 million Participation agreement | LHFS | June 2023 | 162.5 | — | 187.5 | 64.3 | ||||||||||||||||||||||||||||||||
| $173 million Master repurchase agreement | LHFS, LHFI and Receivables | June 2023 | — | 110.1 | 62.9 | 26.1 | ||||||||||||||||||||||||||||||||
| Master repurchase agreement | LHFS | June 2023 | — | 1.0 | — | — | ||||||||||||||||||||||||||||||||
| $50 million Mortgage warehouse agreement | Reverse LHFS and LHFI | June 2023 | — | 50.0 | — | 7.8 | ||||||||||||||||||||||||||||||||
| $204 million Mortgage warehouse agreement (4) | LHFS and LHFI | May 2023 | 147.3 | — | 56.7 | 44.2 | ||||||||||||||||||||||||||||||||
| $230 million Mortgage warehouse agreement (5) | LHFS and Receivables | (4) | 213.6 | — | 16.4 | 21.9 | ||||||||||||||||||||||||||||||||
| Master repurchase agreement (6) | LHFS | (5) | — | — | — | — | ||||||||||||||||||||||||||||||||
| $50 million Loan and security agreement (7) | LHFS and Receivables | March 2024 | — | 38.7 | 11.3 | 7.2 | ||||||||||||||||||||||||||||||||
| $500 million Master repurchase agreement (8) | LHFS and LHFI | April 2024 | 13.8 | — | 486.2 | 288.8 | ||||||||||||||||||||||||||||||||
| $ | 635.0 | $ | 199.8 | $ | 948.3 | $ | 702.7 | |||||||||||||||||||||||||||||||
| Weighted average interest rate (9) | 6.27 | % | 5.74 | % | ||||||||||||||||||||||||||||||||||
| MSR Financing Facilities, net | Available Borrowing Capacity | Outstanding Balance | ||||||||||||||||||||||||||||||||||||
| Borrowing Type | Collateral | Maturity | Un-committed | Committed (1) | March 31, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||||||
| $450 million Agency MSR financing facility (2) | MSRs | June 2023 | $ | — | $ | 159.7 | $ | 290.3 | $ | 309.8 | ||||||||||||||||||||||||||||
| $200 million Ginnie Mae MSR financing facility (3) | MSRs, Advances | April 2024 | 47.2 | — | 152.8 | 157.9 | ||||||||||||||||||||||||||||||||
| Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 (4) | MSRs | Feb. 2025 | — | — | 51.9 | 56.7 | ||||||||||||||||||||||||||||||||
| Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 (5) | MSRs | Feb. 2028 | — | — | 32.1 | 33.4 | ||||||||||||||||||||||||||||||||
| $400 million Agency MSR financing facility - revolving loan (6) | MSRs | Dec. 2026 | — | 11.9 | 388.1 | 396.8 | ||||||||||||||||||||||||||||||||
| Total MSR financing facilities | $ | 47.2 | $ | 171.6 | 915.2 | 954.6 | ||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs - PLS Notes (7) | (0.6) | (0.8) | ||||||||||||||||||||||||||||||||||||
| Total MSR financing facilities, net | $ | 914.6 | $ | 953.8 | ||||||||||||||||||||||||||||||||||
| Weighted average interest rate (8) | 7.77% | 7.31% | ||||||||||||||||||||||||||||||||||||
| Senior Notes | Interest Rate (1) | Maturity | Outstanding Balance | |||||||||||||||||
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||
| PMC Senior Secured Notes (2) | 7.875% | March 2026 | $ | 375.0 | $ | 375.0 | ||||||||||||||
| OFC Senior Secured Notes (due to related parties) (3) | 12% paid in cash or 13.25% paid-in-kind (see below) | March 2027 | 285.0 | 285.0 | ||||||||||||||||
| Principal balance | 660.0 | 660.0 | ||||||||||||||||||
| Discount | ||||||||||||||||||||
| PMC Senior Secured Notes | (1.2) | (1.3) | ||||||||||||||||||
| OFC Senior Secured Notes | (45.3) | (47.3) | ||||||||||||||||||
| (46.5) | (48.6) | |||||||||||||||||||
| Unamortized debt issuance costs | ||||||||||||||||||||
| PMC Senior Secured Notes | (4.0) | (4.3) | ||||||||||||||||||
| OFC Senior Secured Notes | (7.2) | (7.5) | ||||||||||||||||||
| (11.2) | (11.8) | |||||||||||||||||||
| $ | 602.3 | $ | 599.6 | |||||||||||||||||
| Assets | Pledged Assets | Collateralized Borrowings | Unencumbered Assets (1) | ||||||||||||||||||||
| Cash | $ | 216.6 | $ | — | $ | — | $ | 216.6 | |||||||||||||||
| Restricted cash | 39.3 | 39.3 | — | — | |||||||||||||||||||
| Loans held for sale | 849.4 | 825.3 | 797.6 | 24.1 | |||||||||||||||||||
| Loans held for investment - securitized (2) | 7,545.2 | 7,545.2 | 7,470.6 | — | |||||||||||||||||||
| Loans held for investment - unsecuritized | 117.6 | 65.5 | 59.4 | 52.1 | |||||||||||||||||||
| MSRs (3) | 1,673.1 | 1,684.9 | 1,144.3 | 0.5 | |||||||||||||||||||
| Advances, net | 656.9 | 600.6 | 504.0 | 56.3 | |||||||||||||||||||
| Receivables, net | 200.2 | 87.9 | 86.1 | 112.3 | |||||||||||||||||||
| REO | 12.4 | 6.2 | 5.2 | 6.2 | |||||||||||||||||||
| Total (4) | $ | 11,310.7 | $ | 10,854.9 | $ | 10,067.2 | $ | 468.1 | |||||||||||||||
| March 31, 2023 | |||||
| Specified net servicing advances | $ | 203.9 | |||
| Specified deferred servicing fee | 4.4 | ||||
| Specified MSR value less borrowings | 632.7 | ||||
| Specified unrestricted cash balances | 124.1 | ||||
| Specified advance facility reserves | 15.9 | ||||
| Specified loan value | 108.8 | ||||
| Specified residual value | — | ||||
| Total | $ | 1,089.8 | |||
Note 13 – Other Liabilities | ||
| March 31, 2023 | December 31, 2022 | ||||||||||
| Contingent loan repurchase liability | 257.6 | $ | 289.9 | ||||||||
| Other accrued expenses | 64.3 | 75.9 | |||||||||
| Due to Rithm - Advance collections, servicing fees and other | 59.8 | 64.4 | |||||||||
| Checks held for escheat | 52.8 | 48.1 | |||||||||
| Liability for indemnification obligations | 44.4 | 43.8 | |||||||||
| Accrued legal fees and settlements | 40.0 | 42.2 | |||||||||
| Servicing-related obligations | 39.3 | 40.1 | |||||||||
| Lease liability | 15.2 | 16.6 | |||||||||
| Derivatives, at fair value | 12.3 | 15.7 | |||||||||
| Liability for uncertain tax positions | 11.2 | 10.9 | |||||||||
| Accrued interest payable | 9.8 | 13.7 | |||||||||
| Liability for unfunded pension obligation and India gratuity plan | 9.3 | 9.3 | |||||||||
| MSR purchase price holdback | 8.5 | 13.9 | |||||||||
Derivative related payables | 7.1 | 6.0 | |||||||||
| Income taxes payable | 6.8 | 6.2 | |||||||||
| Mortgage insurance premium payable | 5.1 | 5.0 | |||||||||
| Excess servicing fee spread payable | 3.5 | 3.4 | |||||||||
| Other | 5.5 | 3.4 | |||||||||
| 652.5 | $ | 708.5 | |||||||||
Note 14 – Derivative Financial Instruments and Hedging Activities | ||
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| Maturities | Notional | Fair value | Maturities | Notional | Fair value | |||||||||||||||||||||
| Derivative Assets (Other assets) | ||||||||||||||||||||||||||
| Forward sales of Reverse loans | April, 2023 | $ | 20.0 | $ | 0.2 | January, 2023 | $ | 20.0 | $ | 0.1 | ||||||||||||||||
| Forward loans IRLCs | April 2023 to July 2023 | 612.1 | 4.3 | N/A | — | — | ||||||||||||||||||||
| Reverse loans IRLCs | April, 2023 | 21.9 | 0.5 | January, 2023 | 13.8 | 0.6 | ||||||||||||||||||||
| TBA forward MBS trades | April 2023 to June 2023 | 160.0 | 1.6 | January - March 2023 | 804.0 | 6.6 | ||||||||||||||||||||
| Forward sales of Forward loans | N/A | — | — | January, 2023 | 100.0 | 0.4 | ||||||||||||||||||||
| Interest rate swap futures | June, 2023 | 975.0 | 22.9 | N/A | — | — | ||||||||||||||||||||
| Interest rate option contracts | April, 2023 | 450.0 | 2.9 | N/A | — | — | ||||||||||||||||||||
| Other | N/A | 189.1 | 0.3 | N/A | — | — | ||||||||||||||||||||
| Total | $ | 2,428.1 | $ | 32.6 | $ | 937.8 | $ | 7.7 | ||||||||||||||||||
| Derivative Liabilities (Other liabilities) | ||||||||||||||||||||||||||
| Forward loans IRLCs | N/A | $ | — | $ | — | January - April 2023 | $ | 540.1 | $ | (1.3) | ||||||||||||||||
| Forward sales of Reverse loans | April, 2023 | 25.0 | (0.2) | January, 2023 | 20.0 | (0.1) | ||||||||||||||||||||
| TBA forward MBS trades | April 2023 to June 2023 | 1,103.0 | (10.5) | January - February 2023 | 85.0 | (0.7) | ||||||||||||||||||||
| Interest rate swap futures | N/A | — | — | January, 2023 | 670.0 | (13.6) | ||||||||||||||||||||
| Interest rate option contracts | May, 2023 | 415.0 | (1.5) | N/A | — | — | ||||||||||||||||||||
| Other | N/A | 7.7 | (0.1) | N/A | 56.4 | (0.1) | ||||||||||||||||||||
| Total | $ | 1,550.7 | $ | (12.3) | $ | 1,371.4 | $ | (15.7) | ||||||||||||||||||
| Three Months Ended March 31, | Financial Statement Line | ||||||||||||||||
| Gain (loss) | 2023 | 2022 | |||||||||||||||
| Derivative Instruments | |||||||||||||||||
| Forward loans IRLCs | $ | 5.7 | $ | (12.1) | Gain on loans held for sale, net | ||||||||||||
| Reverse loans IRLCs | (0.1) | (0.4) | Gain on reverse loans held for investment and HMBS-related borrowings, net | ||||||||||||||
| TBA trades (economically hedging forward pipeline trades and EBO pipeline) | (16.4) | 47.1 | Gain on loans held for sale, net (Economic hedge) | ||||||||||||||
| TBA trades (economically hedging reverse pipeline trades) | — | — | Gain on reverse loans held for investment and HMBS-related borrowings, net | ||||||||||||||
| Interest rate swap futures, TBA trades and interest rate option contracts | 14.1 | (66.8) | MSR valuation adjustments, net | ||||||||||||||
| Forward sales of Reverse loans | — | (0.4) | Gain on reverse loans held for investment and HMBS-related borrowings, net | ||||||||||||||
| Other | 0.3 | 0.4 | Other, net | ||||||||||||||
| Total | $ | 3.5 | $ | (32.0) | |||||||||||||
Note 15 – Interest Expense | ||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| MSR financing facilities | $ | 17.5 | $ | 7.8 | |||||||
| Mortgage loan warehouse facilities | 13.6 | 7.1 | |||||||||
| OFC Senior Secured Notes (1) | 10.8 | 10.4 | |||||||||
| Advance match funded liabilities | 10.7 | 2.7 | |||||||||
| PMC Senior Secured Notes | 7.8 | 8.2 | |||||||||
| Escrow | 1.9 | 1.7 | |||||||||
| $ | 62.3 | $ | 37.9 | ||||||||
Note 16 – Basic and Diluted Earnings per Share | ||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Basic earnings (loss) per share | |||||||||||
| Net income (loss) | $ | (40.2) | $ | 58.1 | |||||||
Weighted average shares of common stock | 7,533,561 | 9,215,122 | |||||||||
| Basic earnings (loss) per share | $ | (5.34) | $ | 6.30 | |||||||
| Diluted earnings (loss) per share | |||||||||||
| Net income (loss) | $ | (40.2) | $ | 58.1 | |||||||
| Weighted average shares of common stock | 7,533,561 | 9,215,122 | |||||||||
| Effect of dilutive elements | |||||||||||
| Common stock warrants | — | 278,320 | |||||||||
| Stock option awards | — | 73 | |||||||||
| Common stock awards | — | 168,052 | |||||||||
Dilutive weighted average shares of common stock | 7,533,561 | 9,661,567 | |||||||||
| Diluted earnings (loss) per share | $ | (5.34) | $ | 6.01 | |||||||
| Stock options and common stock awards excluded from the computation of diluted earnings per share | |||||||||||
| Anti-dilutive (1) | 34,657 | 98,520 | |||||||||
| Market-based (2) | 56,281 | 166,269 | |||||||||
Note 17 – Business Segment Reporting | ||
| Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
| Results of Operations | Servicing | Originations | Corporate Items and Other | Corporate Eliminations (1) | Business Segments Consolidated | ||||||||||||||||||||||||
| Servicing and subservicing fees | $ | 231.8 | $ | 0.4 | $ | — | $ | — | $ | 232.2 | |||||||||||||||||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 14.0 | 7.2 | — | — | 21.2 | ||||||||||||||||||||||||
| Gain (loss) on loans held for sale, net (1) | (1.3) | 4.1 | — | — | 2.8 | ||||||||||||||||||||||||
| Other revenue, net | 0.5 | 3.1 | 2.0 | — | 5.6 | ||||||||||||||||||||||||
| Revenue | 245.0 | 14.8 | 2.0 | — | 261.8 | ||||||||||||||||||||||||
| MSR valuation adjustments, net (1) | (70.9) | 1.9 | — | — | (69.0) | ||||||||||||||||||||||||
| Operating expenses | 79.8 | 18.7 | 15.6 | — | 114.1 | ||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||
| Interest income | 4.1 | 9.0 | 1.0 | — | 14.1 | ||||||||||||||||||||||||
| Interest expense | (41.6) | (9.9) | (10.8) | — | (62.3) | ||||||||||||||||||||||||
| Pledged MSR liability expense | (70.3) | — | — | — | (70.3) | ||||||||||||||||||||||||
| Earnings of equity method investee | 0.3 | — | — | — | 0.3 | ||||||||||||||||||||||||
| Other | 0.2 | 0.2 | 0.8 | — | 1.2 | ||||||||||||||||||||||||
| Other expense, net | (107.3) | (0.7) | (9.0) | — | (117.0) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (13.0) | $ | (2.7) | $ | (22.6) | $ | — | $ | (38.3) | |||||||||||||||||||
| Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
| Results of Operations | Servicing | Originations | Corporate Items and Other | Corporate Eliminations (1) | Business Segments Consolidated | ||||||||||||||||||||||||
| Servicing and subservicing fees | $ | 212.2 | $ | 0.5 | $ | — | $ | — | 212.6 | ||||||||||||||||||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net | (11.9) | 25.0 | — | — | 13.1 | ||||||||||||||||||||||||
| Gain (loss) on loans held for sale, net (1) | (2.7) | 12.8 | — | (13.3) | (3.2) | ||||||||||||||||||||||||
| Other revenue, net | 0.4 | 6.8 | 1.8 | — | 9.1 | ||||||||||||||||||||||||
| Revenue | 198.0 | 45.1 | 1.8 | (13.3) | 231.6 | ||||||||||||||||||||||||
| MSR valuation adjustments, net (1) | 21.1 | 1.1 | — | 13.3 | 35.4 | ||||||||||||||||||||||||
| Operating expenses | 74.2 | 46.3 | 6.5 | — | 127.0 | ||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||
| Interest income | 4.1 | 3.0 | 0.1 | — | 7.1 | ||||||||||||||||||||||||
| Interest expense | (23.1) | (4.2) | (10.5) | — | (37.9) | ||||||||||||||||||||||||
| Pledged MSR liability expense | (59.7) | — | — | — | (59.7) | ||||||||||||||||||||||||
| Earnings of equity method investee | 12.0 | — | — | — | 12.0 | ||||||||||||||||||||||||
| Other | 0.7 | (1.4) | 0.5 | — | (0.2) | ||||||||||||||||||||||||
| Other expense, net | (66.1) | (2.7) | (10.0) | — | (78.7) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 78.8 | $ | (2.8) | $ | (14.7) | $ | — | $ | 61.3 | |||||||||||||||||||
| Total Assets | Servicing | Originations | Corporate Items and Other | Business Segments Consolidated | |||||||||||||||||||
| March 31, 2023 | $ | 11,553.4 | $ | 774.0 | $ | 299.6 | $ | 12,627.0 | |||||||||||||||
| December 31, 2022 | $ | 11,535.0 | $ | 570.5 | $ | 293.7 | $ | 12,399.2 | |||||||||||||||
| March 31, 2022 | $ | 11,251.8 | $ | 610.9 | $ | 435.1 | $ | 12,297.8 | |||||||||||||||
| Depreciation and Amortization Expense | Servicing | Originations | Corporate Items and Other | Business Segments Consolidated | |||||||||||||||||||
| Three months ended March 31, 2023 | |||||||||||||||||||||||
| Depreciation expense | $ | 0.2 | $ | 0.1 | $ | 1.5 | $ | 1.8 | |||||||||||||||
| Amortization of debt issuance costs and discount | 0.1 | — | 2.7 | 2.8 | |||||||||||||||||||
| Amortization of intangibles | 1.5 | — | — | 1.5 | |||||||||||||||||||
| Three months ended March 31, 2022 | |||||||||||||||||||||||
| Depreciation expense | $ | 0.2 | $ | 0.1 | $ | 2.3 | $ | 2.6 | |||||||||||||||
| Amortization of debt issuance costs and discount | 0.2 | — | 2.3 | 2.5 | |||||||||||||||||||
| Amortization of intangibles | 0.6 | — | — | 0.6 | |||||||||||||||||||
Note 18 – Regulatory Requirements | ||
Note 19 — Commitments | ||
| Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
| Active | Inactive | Total | |||||||||||||||||||||||||||||||||
| Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
| Beginning balance | 264 | $ | 70.7 | 457 | $ | 107.7 | 721 | $ | 178.4 | ||||||||||||||||||||||||||
| Additions | 264 | 71.4 | 81 | 20.4 | 345 | 91.9 | |||||||||||||||||||||||||||||
| Recoveries, net (1) | (220) | (58.0) | (42) | (9.7) | (262) | (67.6) | |||||||||||||||||||||||||||||
| Transfers | (13) | (3.8) | 13 | 3.8 | — | — | |||||||||||||||||||||||||||||
| Changes in value | — | — | — | (1.1) | — | (1.2) | |||||||||||||||||||||||||||||
| Ending balance | 295 | $ | 80.3 | 509 | $ | 121.1 | 804 | $ | 201.5 | ||||||||||||||||||||||||||
Note 20 – Contingencies | ||
| Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Beginning balance (1) | $ | 41.6 | $ | 49.4 | |||||||
| Provision for (reversal of) representation and warranty obligations | 2.7 | (3.6) | |||||||||
| New production liability | 0.3 | 0.7 | |||||||||
| Charge-offs and other (2) | (2.7) | (2.1) | |||||||||
| Ending balance (1) | $ | 41.9 | $ | 44.4 | |||||||
OVERVIEW | ||
| $ in billions | UPB | $ Change | ||||||||||||||||||||||||
| Three Months Ended | Q1 2023 vs Q4 2022 | Q1 2023 vs Q1 2022 | ||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||
| Mortgage servicing originations | ||||||||||||||||||||||||||
| Retail - Consumer Direct MSR (1) | $ | 0.1 | $ | 0.1 | $ | 0.7 | $ | — | $ | (0.6) | ||||||||||||||||
| Correspondent MSR (1) | 2.4 | 3.9 | 2.7 | (1.5) | (0.3) | |||||||||||||||||||||
| Flow and Agency Cash Window MSR purchases (2) | 1.8 | 2.0 | 4.1 | (0.2) | (2.3) | |||||||||||||||||||||
| Reverse mortgage servicing (3) | 0.1 | 0.2 | 0.5 | (0.1) | (0.4) | |||||||||||||||||||||
| Total servicing | 4.5 | 6.2 | 8.0 | (1.8) | (3.6) | |||||||||||||||||||||
| Bulk purchases (2) | 0.2 | — | 0.2 | 0.2 | — | |||||||||||||||||||||
| Total servicing additions | 4.7 | 6.2 | 8.2 | (1.6) | (3.6) | |||||||||||||||||||||
| Interim forward subservicing | 1.2 | 1.9 | 2.9 | (0.7) | (1.7) | |||||||||||||||||||||
| Other new forward subservicing | 11.5 | 15.9 | 0.4 | (4.4) | 11.1 | |||||||||||||||||||||
| Reverse subservicing | 0.1 | — | 9.0 | 0.1 | (8.9) | |||||||||||||||||||||
| Total Subservicing additions (4) | 12.8 | 17.8 | 12.2 | (5.0) | 0.5 | |||||||||||||||||||||
| Total servicing and subservicing UPB additions | $ | 17.5 | $ | 24.0 | $ | 20.4 | $ | (6.6) | $ | (3.1) | ||||||||||||||||
| $ in billions | Average UPB | $ Change | |||||||||||||||||||||||||||
| Three Months Ended | Q1 2023 vs Q4 2022 | Q1 2023 vs Q1 2022 | |||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||||||||||
| Owned MSR | $ | 127.0 | $ | 125.1 | $ | 124.9 | $ | 1.9 | $ | 2.1 | |||||||||||||||||||
| Rithm (formerly NRZ) and others | 48.8 | 49.7 | 54.7 | (0.9) | (5.9) | ||||||||||||||||||||||||
| MAV | 49.3 | 47.5 | 34.0 | 1.8 | 15.3 | ||||||||||||||||||||||||
| Subservicing (including interim subservicing) | 60.6 | 57.2 | 48.8 | 3.4 | 11.8 | ||||||||||||||||||||||||
| Reverse mortgage loans (owned) | 7.6 | 7.5 | 7.2 | 0.1 | 0.4 | ||||||||||||||||||||||||
| Commercial and other servicing | 0.8 | 0.8 | 0.9 | — | (0.1) | ||||||||||||||||||||||||
| Total serviced and subserviced UPB (average) | $ | 294.1 | $ | 287.8 | $ | 270.5 | $ | 6.3 | $ | 23.6 | |||||||||||||||||||
| Condensed Results of Operations | Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | |||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Revenue | $ | 261.8 | $ | 250.5 | 5% | $ | 231.6 | 13 | % | ||||||||||||||||||||
| MSR valuation adjustments, net | (69.0) | (95.8) | (28) | 35.4 | (295) | ||||||||||||||||||||||||
| Operating expenses | 114.1 | 119.6 | (5) | 127.0 | (10) | ||||||||||||||||||||||||
| Other income (expense), net | (117.0) | (113.9) | 3 | (78.7) | 49 | ||||||||||||||||||||||||
| Income (loss) before income taxes | (38.3) | (78.8) | (51) | 61.3 | (163) | ||||||||||||||||||||||||
| Income tax expense (benefit) | 1.9 | 0.9 | 111 | 3.2 | (41) | ||||||||||||||||||||||||
| Net income (loss) | $ | (40.2) | $ | (79.7) | (50)% | $ | 58.1 | (169) | % | ||||||||||||||||||||
Segment income (loss) before income taxes | |||||||||||||||||||||||||||||
| Servicing | $ | (13.0) | $ | (46.7) | (72)% | $ | 78.8 | (116) | % | ||||||||||||||||||||
| Originations | (2.7) | (2.0) | 35 | (2.8) | (4) | ||||||||||||||||||||||||
| Corporate Items and Other | (22.6) | (30.1) | (25) | (14.7) | 55 | ||||||||||||||||||||||||
| $ | (38.3) | $ | (78.8) | (51)% | $ | 61.3 | (163) | % | |||||||||||||||||||||
| Revenue | Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | |||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Servicing | $ | 245.0 | $ | 227.4 | 8 | % | $ | 198.0 | 24 | % | |||||||||||||||||||
| Originations | 14.8 | 21.5 | (31) | 45.1 | (67) | ||||||||||||||||||||||||
| Corporate | 2.0 | 1.9 | 5 | 1.8 | 11 | ||||||||||||||||||||||||
| Total segment revenue | 261.8 | 250.8 | 4 | 244.9 | 7 | ||||||||||||||||||||||||
| Inter-segment elimination (1) | — | (0.3) | (100) | (13.3) | (100) | ||||||||||||||||||||||||
| Total revenue | $ | 261.8 | $ | 250.5 | 5 | $ | 231.6 | 13 | |||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Realization of expected cash flows (runoff) of MSRs, MSR pledged liability and ESS financing liability | $ | (35.7) | $ | (36.8) | (3) | % | $ | (44.6) | (20) | % | |||||||||||||||||||
| Fair value gains (losses) of MSRs, MSR pledged liability and ESS financing liability due to rates and assumptions | (47.4) | (59.7) | (21) | 146.8 | (132) | ||||||||||||||||||||||||
| Total fair value gains (losses) of MSR, MSR pledged liability and ESS financing liability | (83.1) | (96.4) | (14) | 102.2 | (181) | ||||||||||||||||||||||||
| Derivative fair value gain (loss) (1) | 14.1 | 0.6 | n/m | (66.8) | (121) | ||||||||||||||||||||||||
| MSR valuation adjustments, net | $ | (69.0) | $ | (95.8) | (28) | % | $ | 35.4 | (295) | % | |||||||||||||||||||
| n/m: not meaningful | |||||||||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Compensation and benefits | $ | 58.0 | $ | 66.2 | (12) | % | $ | 68.0 | (15) | % | |||||||||||||||||||
| Servicing and origination | 15.7 | 12.6 | 25 | 14.2 | 11 | ||||||||||||||||||||||||
| Technology and communications | 13.4 | 13.9 | (4) | 14.9 | (10) | ||||||||||||||||||||||||
| Professional services | 13.3 | 11.2 | 19 | 12.2 | 9 | ||||||||||||||||||||||||
| Occupancy and equipment | 8.8 | 9.7 | (9) | 10.1 | (13) | ||||||||||||||||||||||||
| Other expenses | 4.9 | 6.0 | (18) | 7.6 | (36) | ||||||||||||||||||||||||
| Total operating expenses | $ | 114.1 | $ | 119.6 | (5) | % | $ | 127.0 | (10) | % | |||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Net interest expense | $ | (48.2) | $ | (44.9) | 7 | $ | (30.8) | 56 | |||||||||||||||||||||
| Pledged MSR liability expense | (70.3) | (66.7) | 5 | (59.7) | 18 | ||||||||||||||||||||||||
| Earnings (loss) of equity method investee | 0.3 | (0.8) | (138) | 12.0 | (98) | ||||||||||||||||||||||||
| Other, net | 1.2 | (1.6) | (175) | (0.2) | (700) | ||||||||||||||||||||||||
| Total other income (expense), net | $ | (117.0) | $ | (113.9) | 3 | $ | (78.7) | 49 | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31 | % Change | March 31, | % Change | |||||||||||||||||||||||||
| 2023 | 2022 | 2022 | |||||||||||||||||||||||||||
| Income tax expense | $ | 1.9 | $ | 0.9 | 111 | % | $ | 3.2 | (41) | ||||||||||||||||||||
| Income (loss) before income taxes | $ | (38.3) | $ | (78.8) | (51) | % | $ | 61.3 | (162) | ||||||||||||||||||||
| Effective tax rate | (5.0) | % | (1.1) | % | 355 | % | 5.2 | % | (196) | ||||||||||||||||||||
| Financial Condition Summary | March 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
| Cash | $ | 216.6 | $ | 208.0 | $ | 8.6 | 4 | % | |||||||||||||||
Restricted cash | 39.3 | 66.2 | (26.9) | (41) | |||||||||||||||||||
MSRs, at fair value | 2,580.6 | 2,665.2 | (84.6) | (3) | |||||||||||||||||||
Advances, net | 656.9 | 718.9 | (62.0) | (9) | |||||||||||||||||||
Loans held for sale | 849.4 | 622.7 | 226.7 | 36 | |||||||||||||||||||
Loans held for investment, at fair value | 7,669.0 | 7,510.8 | 158.3 | 2 | |||||||||||||||||||
| Receivables | 200.2 | 180.8 | 19.4 | 11 | |||||||||||||||||||
| Investment in equity method investee | 36.8 | 42.2 | (5.5) | (13) | |||||||||||||||||||
| Premises and equipment, net | 18.9 | 20.2 | (1.3) | (6) | |||||||||||||||||||
| Other assets | 359.3 | 364.2 | (4.9) | (1) | |||||||||||||||||||
| Total assets | $ | 12,627.0 | $ | 12,399.2 | $ | 227.8 | 2 | % | |||||||||||||||
| Total Assets by Segment | |||||||||||||||||||||||
| Servicing | $ | 11,553.4 | $ | 11,535.0 | $ | 18.4 | — | % | |||||||||||||||
| Originations | 774.0 | 570.5 | 203.5 | 36 | |||||||||||||||||||
| Corporate Items and Other | 299.6 | 293.7 | 5.9 | 2 | |||||||||||||||||||
| $ | 12,627.0 | $ | 12,399.2 | $ | 227.8 | 2 | % | ||||||||||||||||
HMBS-related borrowings, at fair value | $ | 7,470.6 | $ | 7,326.8 | $ | 143.8 | 2 | % | |||||||||||||||
Other financing liabilities, at fair value | 1,152.5 | 1,137.4 | 15.1 | 1 | |||||||||||||||||||
| Advance match funded liabilities | 469.9 | 513.7 | (43.7) | (9) | |||||||||||||||||||
| Mortgage loan warehouse facilities | 948.3 | 702.7 | 245.5 | 35 | |||||||||||||||||||
| MSR financing facilities, net | 914.6 | 953.8 | (39.2) | (4) | |||||||||||||||||||
| Senior notes, net | 602.3 | 599.6 | 2.7 | — | |||||||||||||||||||
| Other liabilities | 652.5 | 708.5 | (56.0) | (8) | |||||||||||||||||||
| Total liabilities | 12,210.7 | 11,942.5 | 268.2 | 2 | % | ||||||||||||||||||
| Total stockholders’ equity | 416.3 | 456.7 | (40.4) | (9) | |||||||||||||||||||
| Total liabilities and equity | $ | 12,627.0 | $ | 12,399.2 | $ | 227.8 | 2 | % | |||||||||||||||
| Total Liabilities by Segment | |||||||||||||||||||||||
| Servicing | $ | 11,094.1 | $ | 11,049.0 | $ | 45.1 | — | % | |||||||||||||||
| Originations | 772.3 | 544.2 | 228.1 | 42 | |||||||||||||||||||
| Corporate Items and Other | 344.3 | 349.3 | (5.0) | (1) | |||||||||||||||||||
| $ | 12,210.7 | $ | 11,942.5 | $ | 268.2 | 2 | % | ||||||||||||||||
| Book value per share | $ | 54.50 | $ | 60.68 | $ | (6.18) | (10) | % | |||||||||||||||
SEGMENT RESULTS OF OPERATIONS | ||
SERVICING | ||
| PHH Mortgage Corporation (PMC) | |||||||||||||||||
| Moody’s | S&P | Fitch | |||||||||||||||
| Forward | |||||||||||||||||
| Residential Prime Servicer | SQ3 | Above Average | RPS3+ | ||||||||||||||
| Residential Subprime Servicer | SQ3 | Above Average | RPS3+ | ||||||||||||||
| Residential Special Servicer | SQ3 | Above Average | RSS3 | ||||||||||||||
| Residential Second/Subordinate Lien Servicer | SQ3 | Above Average | RPS3 | ||||||||||||||
| Residential Home Equity Servicer | — | — | RPS3 | ||||||||||||||
| Residential Alt-A Servicer | — | — | RPS3 | ||||||||||||||
| Master Servicer | SQ3+ | Above Average | RMS3 | ||||||||||||||
| Ratings Outlook | N/A | Stable | Positive / Stable | ||||||||||||||
| Date of last action | September 28, 2021 | March 22, 2023 | August 2, 2022 | ||||||||||||||
| Reverse | |||||||||||||||||
| Residential Reverse Servicer | — | Above Average | — | ||||||||||||||
| Ratings Outlook | — | Stable | — | ||||||||||||||
| Date of initial rating | — | May 27, 2022 | — | ||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Servicing and subservicing fees | $ | 231.8 | $ | 218.8 | 6 | % | $ | 212.2 | 9 | % | |||||||||||||||||||
| Gain (loss) on loans held for sale, net | (1.3) | (1.1) | 18 | (2.7) | (52) | ||||||||||||||||||||||||
Gain on reverse loans held for investment and HMBS-related borrowings, net | 14.0 | 9.4 | 49 | (11.9) | (218) | ||||||||||||||||||||||||
| Other revenue, net | 0.5 | 0.3 | 67 | 0.4 | 25 | ||||||||||||||||||||||||
| Total revenue | 245.0 | 227.4 | 8 | 198.0 | 24 | ||||||||||||||||||||||||
| MSR valuation adjustments, net | (70.9) | (98.7) | (28) | 21.1 | (436) | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Compensation and benefits | 29.4 | 28.5 | 3 | 29.0 | 1 | ||||||||||||||||||||||||
| Servicing expense | 14.9 | 10.0 | 49 | 10.8 | 38 | ||||||||||||||||||||||||
| Occupancy and equipment | 7.7 | 7.9 | (3) | 7.9 | (3) | ||||||||||||||||||||||||
| Professional services | 7.8 | 6.3 | 24 | 6.8 | 15 | ||||||||||||||||||||||||
Technology and communications | 6.3 | 5.8 | 9 | 6.6 | (5) | ||||||||||||||||||||||||
| Corporate overhead allocations | 11.5 | 11.4 | 1 | 11.1 | 4 | ||||||||||||||||||||||||
| Other expenses | 2.2 | 1.4 | 57 | 2.0 | 10 | ||||||||||||||||||||||||
| Total operating expenses | 79.8 | 71.3 | 12 | 74.2 | 8 | ||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest income | 4.1 | 3.0 | 37 | 4.1 | — | ||||||||||||||||||||||||
| Interest expense | (41.6) | (38.5) | 8 | (23.1) | 80 | ||||||||||||||||||||||||
Pledged MSR liability expense | (70.3) | (66.7) | 5 | (59.7) | 18 | ||||||||||||||||||||||||
| Earnings of equity method investee | 0.3 | (0.8) | (138) | 12.0 | (98) | ||||||||||||||||||||||||
| Other, net | 0.2 | (1.1) | (118) | 0.7 | (71) | ||||||||||||||||||||||||
| Total other income (expense), net | (107.3) | (104.1) | 3 | (66.1) | 62 | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (13.0) | $ | (46.7) | (72) | % | $ | 78.8 | (116) | % | |||||||||||||||||||
n/m: not meaningful | |||||||||||||||||||||||||||||
| March 31, | December 31, | % Change | March 31, | % Change | |||||||||||||||||||||||||
| 2023 | 2022 | 2022 | |||||||||||||||||||||||||||
| Assets Serviced | |||||||||||||||||||||||||||||
| Unpaid principal balance (UPB) in billions: | |||||||||||||||||||||||||||||
| Performing loans (1) | $ | 285.25 | $ | 276.22 | 3 | % | $ | 259.89 | 10 | % | |||||||||||||||||||
| Non-performing loans | 12.69 | 12.93 | (2) | 14.72 | (14) | ||||||||||||||||||||||||
| Non-performing real estate | 0.53 | 0.67 | (21) | 0.71 | (25) | ||||||||||||||||||||||||
| Total | $ | 298.47 | $ | 289.82 | 3 | % | $ | 275.32 | 8 | % | |||||||||||||||||||
| Conventional loans (2) | $ | 192.28 | $ | 186.25 | 3 | % | $ | 173.36 | 11 | % | |||||||||||||||||||
| Government-insured loans | 36.88 | 32.56 | 13 | 27.61 | 34 | ||||||||||||||||||||||||
| Non-Agency loans | 69.32 | 71.00 | (2) | 74.35 | (7) | ||||||||||||||||||||||||
| Total | $ | 298.47 | $ | 289.82 | 3 | % | $ | 275.32 | 8 | % | |||||||||||||||||||
| Servicing portfolio (3) | $ | 136.14 | $ | 134.55 | 1 | % | $ | 123.89 | 10 | % | |||||||||||||||||||
| Subservicing portfolio | |||||||||||||||||||||||||||||
| Subservicing - forward | 40.27 | 34.74 | 16 | 40.41 | — | ||||||||||||||||||||||||
| Subservicing - reverse | 21.68 | 23.23 | (7) | 22.16 | (2) | ||||||||||||||||||||||||
| Total subservicing | 61.96 | 57.97 | 7 | 62.57 | (1) | ||||||||||||||||||||||||
| MAV (4) (5) | 51.81 | 48.18 | 8 | 35.31 | 47 | ||||||||||||||||||||||||
| Rithm (formerly NRZ) and others (5) (6) | 48.56 | 49.11 | (1) | 53.55 | (9) | ||||||||||||||||||||||||
| Total | $ | 298.47 | $ | 289.82 | 3 | % | $ | 275.32 | 8 | % | |||||||||||||||||||
| Number (in 000’s): | |||||||||||||||||||||||||||||
| Performing loans (1) | 1,347.3 | 1,319.8 | 2 | % | 1,302.8 | 3 | % | ||||||||||||||||||||||
| Non-performing loans | |||||||||||||||||||||||||||||
| Non-performing loans - Rithm | 23.0 | 24.1 | (5) | 30.4 | (24) | ||||||||||||||||||||||||
| Non-performing loans - Other | 30.4 | 31.6 | (4) | 37.2 | (18) | ||||||||||||||||||||||||
| 53.4 | 55.7 | (4) | 67.6 | (21) | |||||||||||||||||||||||||
| Non-performing real estate | 3.0 | 3.3 | (9) | 4.8 | (38) | ||||||||||||||||||||||||
| Total | 1,403.7 | 1,378.8 | 2 | % | 1,375.1 | 2 | % | ||||||||||||||||||||||
| Conventional loans (2) | 756.8 | 734.2 | 3 | % | 713.2 | 6 | % | ||||||||||||||||||||||
| Government-insured loans | 180.6 | 168.1 | 7 | 161.7 | 12 | ||||||||||||||||||||||||
| Non-Agency loans | 466.3 | 476.5 | (2) | 500.2 | (7) | ||||||||||||||||||||||||
| Total | 1,403.7 | 1,378.8 | 2 | % | 1,375.1 | 2 | % | ||||||||||||||||||||||
| Servicing portfolio (3) | 610.2 | 605.7 | 1 | % | 589.3 | 4 | % | ||||||||||||||||||||||
| Subservicing portfolio | |||||||||||||||||||||||||||||
| Subservicing - forward | 145.1 | 126.0 | 15 | 142.9 | 2 | ||||||||||||||||||||||||
| Subservicing - reverse | 85.5 | 93.7 | (9) | 91.8 | (7) | ||||||||||||||||||||||||
| Total subservicing | 230.6 | 219.7 | 5 | 234.7 | (2) | ||||||||||||||||||||||||
| MAV (5) | 185.2 | 170.7 | 8 | 139.7 | 33 | ||||||||||||||||||||||||
| Rithm and others (5) | 377.7 | 382.7 | (1) | 411.3 | (8) | ||||||||||||||||||||||||
| Total | 1,403.7 | 1,378.8 | 2 | % | 1,375.1 | 2 | % | ||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Prepayment speed (CPR) (7): | |||||||||||||||||||||||||||||
| % Voluntary CPR | 3.5 | % | 4.0 | % | (13) | % | 11.4 | % | (69) | % | |||||||||||||||||||
| % Involuntary CPR | 0.3 | 0.4 | (25) | 0.3 | — | ||||||||||||||||||||||||
| % Total CPR | 7.2 | 7.6 | (5) | 14.8 | (51) | ||||||||||||||||||||||||
Number of completed modifications (in 000’s) | 3.4 | 3.3 | 3 | % | 4.0 | (15) | % | ||||||||||||||||||||||
| Revenue recognized in connection with loan modifications | $ | 3.5 | $ | 4.0 | (13) | % | $ | 6.4 | (45) | % | |||||||||||||||||||
Amount of UPB ($ in billions) | Count (000’s) | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Portfolio at January 1 | $ | 289.67 | $ | 267.97 | 1,378.89 | 1,353.25 | |||||||||||||||||
| Additions (1) (2) (3) | 17.50 | 31.51 | 59.46 | 78.10 | |||||||||||||||||||
| MSR sales (2) | (0.01) | (11.08) | (0.09) | (0.09) | |||||||||||||||||||
| Servicing transfers | (2.21) | (2.30) | (7.71) | (9.02) | |||||||||||||||||||
| Runoff | (6.47) | (10.78) | (26.87) | (47.14) | |||||||||||||||||||
| Portfolio at March 31 | $ | 298.47 | $ | 275.32 | 1,403.69 | 1,375.10 | |||||||||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Advances by investor type | Principal and Interest | Taxes and Insurance | Foreclosures, bankruptcy, REO and other | Total | Principal and Interest | Taxes and Insurance | Foreclosures, bankruptcy, REO and other | Total | |||||||||||||||||||||||||||||||||||||||
| Conventional | $ | 4.6 | $ | 65.8 | $ | 3.9 | $ | 74.3 | $ | 3.2 | $ | 97.7 | $ | 7.5 | $ | 108.3 | |||||||||||||||||||||||||||||||
| Government-insured | 2.3 | 30.8 | 18.6 | 51.7 | 3.0 | 35.9 | 17.7 | 56.6 | |||||||||||||||||||||||||||||||||||||||
| Non-Agency | 197.3 | 223.6 | 110.0 | 530.9 | 209.1 | 233.9 | 111.0 | 554.0 | |||||||||||||||||||||||||||||||||||||||
| Total, net | $ | 204.2 | $ | 320.2 | $ | 132.5 | $ | 656.9 | $ | 215.3 | $ | 367.5 | $ | 136.2 | $ | 718.9 | |||||||||||||||||||||||||||||||
| March 31, | December 31, | % Change | March 31, | % Change | |||||||||||||||||||||||||
| 2023 | 2022 | 2022 | |||||||||||||||||||||||||||
| Reverse Mortgage Loans | |||||||||||||||||||||||||||||
| Unpaid principal balance (UPB) in millions: | |||||||||||||||||||||||||||||
| Loans held for investment (1) | $ | 7,290.7 | $ | 7,199.6 | 1 | % | $ | 6,849.1 | 6 | % | |||||||||||||||||||
| Active Buyouts (2) | 83.7 | 73.0 | 15 | 57.8 | 45 | ||||||||||||||||||||||||
| Inactive Buyouts (2) | 136.7 | 121.4 | 13 | 108.5 | 26 | ||||||||||||||||||||||||
| Total | $ | 7,511.2 | $ | 7,394.0 | 2 | % | $ | 7,015.4 | 7 | % | |||||||||||||||||||
| Inactive buyouts % to total | 1.82 | % | 1.64 | % | 11 | % | 1.55 | % | 17 | % | |||||||||||||||||||
| Future draw commitments (UPB) in millions: | 1,769.6 | 1,756.6 | 1 | % | 1,659.9 | 7 | % | ||||||||||||||||||||||
| Fair value in millions: | |||||||||||||||||||||||||||||
| Loans held for investment (1) | $ | 7,545.2 | $ | 7,392.6 | 2 | % | $ | 7,202.0 | 5 | % | |||||||||||||||||||
| HMBS related borrowings | 7,470.6 | 7,326.8 | 2 | 7,118.8 | 5 | ||||||||||||||||||||||||
| Net asset value | $ | 74.6 | $ | 65.8 | 13 | % | $ | 83.2 | (10) | % | |||||||||||||||||||
| Net asset value to UPB | 1.02 | % | 0.91 | % | 1.21 | % | |||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Loan servicing and subservicing fees: | |||||||||||||||||||||||||||||
| Servicing (owned MSR) | $ | 90.0 | $ | 85.0 | 6 | % | $ | 88.5 | 2 | % | |||||||||||||||||||
| Subservicing | 19.7 | 19.0 | 4 | 14.7 | 34 | ||||||||||||||||||||||||
| MAV | 18.2 | 18.0 | 1 | 16.6 | 10 | ||||||||||||||||||||||||
| Rithm | 59.6 | 59.8 | — | 67.1 | (11) | ||||||||||||||||||||||||
| Servicing and subservicing fees | 187.5 | 181.8 | 3 | 187.0 | — | ||||||||||||||||||||||||
| Ancillary income | 44.3 | 37.0 | 20 | 25.2 | 76 | ||||||||||||||||||||||||
| $ | 231.8 | $ | 218.8 | 6 | % | $ | 212.2 | 9 | % | ||||||||||||||||||||
| Three Months Ended | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
| March 31, | December 31, | % Change | % Change | ||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Servicing and Subservicing Fees | |||||||||||||||||||||||||||||
| Servicing fees (owned MSRs) | $ | 90.0 | $ | 85.0 | 6 | % | $ | 88.5 | 2 | % | |||||||||||||||||||
| Average servicing fee (% of UPB) (1) | $ | 0.28 | $ | 0.27 | 4 | % | $ | 0.28 | — | % | |||||||||||||||||||
| Subservicing fee (excluding MAV and Rithm) | $ | 19.7 | $ | 19.0 | 4 | % | $ | 14.7 | 34 | % | |||||||||||||||||||
| Average monthly fee per loan (in dollars) (2) | $ | 29 | $ | 31 | (6) | % | $ | 27 | 7 | % | |||||||||||||||||||
| Residential assets serviced | |||||||||||||||||||||||||||||
| Average UPB ($ in billions): | |||||||||||||||||||||||||||||
| Servicing portfolio - Owned (2) | $ | 135.4 | $ | 133.4 | 1 | % | $ | 133.0 | 2 | % | |||||||||||||||||||
| Subservicing portfolio | |||||||||||||||||||||||||||||
| Subservicing - forward | 38.0 | 33.5 | 13 | 32.6 | 17 | ||||||||||||||||||||||||
| Subservicing - reverse | 22.6 | 23.7 | (5) | 16.3 | 39 | ||||||||||||||||||||||||
| Total subservicing | 60.6 | 57.2 | 6 | 48.8 | 24 | ||||||||||||||||||||||||
| MAV | 49.3 | 47.5 | 4 | 34.0 | 45 | ||||||||||||||||||||||||
| Rithm and others | 48.8 | 49.7 | (2) | 54.7 | (11) | ||||||||||||||||||||||||
| Total | $ | 294.1 | $ | 287.8 | 2 | % | $ | 270.5 | 9 | % | |||||||||||||||||||
| Average number (in 000’s): | |||||||||||||||||||||||||||||
| Servicing portfolio (2) | 608.1 | 603.7 | 1 | % | 623.6 | (2) | % | ||||||||||||||||||||||
| Subservicing portfolio | |||||||||||||||||||||||||||||
| Subservicing - forward | 137.3 | 119.9 | 15 | 116.1 | 18 | ||||||||||||||||||||||||
| Subservicing - reverse | 90.0 | 96.3 | (7) | 65.1 | 38 | ||||||||||||||||||||||||
| Total subservicing | 227.3 | 216.2 | 5 | 181.2 | 25 | ||||||||||||||||||||||||
| MAV | 175.4 | 170.8 | 3 | 135.4 | 30 | ||||||||||||||||||||||||
| Rithm and others | 380.2 | 386.1 | (2) | 422.3 | (10) | ||||||||||||||||||||||||
| 1,391.0 | 1,376.8 | 1 | % | 1,362.4 | 2 | % | |||||||||||||||||||||||
| Rithm Servicing and Subservicing Fees | Three Months Ended | ||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2023 | 2022 | 2022 | |||||||||||||||
| Servicing fees collected on behalf of Rithm | $ | 59.6 | $ | 59.8 | $ | 67.1 | |||||||||||
| Servicing fees remitted to Rithm (1) | (42.3) | (41.7) | (47.8) | ||||||||||||||
| Retained subservicing fees on Rithm agreements (2) | $ | 17.3 | $ | 18.0 | $ | 19.4 | |||||||||||
| Average Rithm UPB ($ in billions) | $ | 48.8 | $ | 49.7 | $ | 54.7 | |||||||||||
| Average annualized retained subservicing fees as a % of Rithm UPB | 0.14 | % | 0.15 | % | 0.14 | % | |||||||||||
| Ancillary Income | Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | |||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Custodial accounts (float earnings) | $ | 20.2 | $ | 15.9 | 27 | % | $ | 1.0 | n/m | ||||||||||||||||||||
| Late charges | 9.6 | 8.7 | 10 | 10.0 | (4) | % | |||||||||||||||||||||||
| Reverse subservicing ancillary fees | 8.1 | 6.1 | 33 | 2.1 | 286 | ||||||||||||||||||||||||
| Loan collection fees | 2.6 | 2.7 | (4) | 2.9 | (10) | ||||||||||||||||||||||||
| Recording fees | 1.2 | 0.8 | 50 | 3.3 | (64) | ||||||||||||||||||||||||
| Boarding and deboarding fees | 0.6 | 1.1 | (45) | 1.3 | (54) | ||||||||||||||||||||||||
| GSE forbearance fees | 0.2 | 0.2 | — | 0.2 | — | ||||||||||||||||||||||||
| Other | 1.9 | 1.5 | 27 | 4.4 | (57) | ||||||||||||||||||||||||
| Ancillary income | $ | 44.3 | $ | 37.0 | 20 | % | $ | 25.2 | 76 | % | |||||||||||||||||||
| Three Months Ended | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
| March 31, | December 31, | % Change | % Change | ||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Net interest income (servicing fee) | $ | 5.9 | $ | 5.7 | 4 | % | $ | 5.3 | 11 | % | |||||||||||||||||||
| Realized gain on tail securitization | 3.6 | 1.9 | 89 | 3.8 | (5) | ||||||||||||||||||||||||
| Other fair value gains (losses) (1) | 4.5 | 1.8 | 150 | (21.0) | (121) | ||||||||||||||||||||||||
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net (Servicing) | $ | 14.0 | $ | 9.4 | 49 | % | $ | (11.9) | (218) | ||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||||||||||||||||
| Total fair value gains (losses) (1)+(2) | Runoff (1) | Changes in rates and assumptions (2) | Total fair value gains (losses) (1)+(2) | Runoff (1) | Changes in rates and assumptions (2) | Total fair value gains (losses) (1)+(2) | Runoff (1) | Changes in rates and assumptions (2) | |||||||||||||||||||||||||||
| MSR | $ | (142.5) | (56.9) | $ | (85.5) | $ | (126.7) | $ | (66.2) | $ | (60.5) | $ | 127.0 | $ | (72.8) | $ | 199.9 | ||||||||||||||||||
| MSR pledged liability | 52.8 | 14.5 | 38.3 | 19.6 | 23.5 | (3.9) | (25.9) | 28.3 | (54.2) | ||||||||||||||||||||||||||
| ESS financing liability | 4.7 | 6.8 | (2.1) | 8.1 | 5.9 | 2.1 | — | — | — | ||||||||||||||||||||||||||
| Derivatives | 14.1 | — | 14.1 | 0.3 | — | 0.3 | (80.0) | — | (80.0) | ||||||||||||||||||||||||||
| Total | $ | (70.9) | $ | (35.7) | $ | (35.2) | $ | (98.7) | $ | (36.8) | $ | (62.0) | $ | 21.1 | $ | (44.5) | $ | 65.7 | |||||||||||||||||
| Owned MSR Fair Value (1) | Owned MSR UPB ($ in billions) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
| GSEs | Ginnie Mae | Non- Agency | Total | GSEs | Ginnie Mae | Non- Agency | Total | ||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 1,395.3 | $ | 189.5 | $ | 125.8 | $ | 1,710.6 | $ | 98.4 | $ | 12.9 | $ | 14.9 | $ | 126.2 | |||||||||||||||||||||||||||||||
| Additions | |||||||||||||||||||||||||||||||||||||||||||||||
New cap. | 19.4 | 11.5 | — | 30.9 | 1.6 | 0.7 | — | 2.3 | |||||||||||||||||||||||||||||||||||||||
| Purchases | 15.0 | 10.0 | — | 25.0 | 1.5 | 0.5 | — | 2.0 | |||||||||||||||||||||||||||||||||||||||
| Sales/transfers/calls | (5.9) | — | — | (5.9) | (0.5) | — | — | (0.5) | |||||||||||||||||||||||||||||||||||||||
| Change in fair value: | |||||||||||||||||||||||||||||||||||||||||||||||
| Inputs and assumptions (2) | (30.9) | (8.7) | (6.0) | (45.6) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Realization of expected cash flows | (35.2) | (5.0) | (1.7) | (41.9) | (1.7) | (0.3) | (0.4) | (2.4) | |||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 1,357.7 | $ | 197.3 | $ | 118.1 | $ | 1,673.1 | $ | 99.2 | $ | 13.9 | $ | 14.5 | $ | 127.6 | |||||||||||||||||||||||||||||||
| Weighted average note rate | 3.6 | % | 4.4 | % | 4.4 | % | 3.8 | % | |||||||||||||||||||||||||||||||||||||||
| Fair value (% of UPB) | 1.37 | % | 1.42 | % | 0.82 | % | 1.31 | % | |||||||||||||||||||||||||||||||||||||||
| Fair value multiple (3) | 5.4 | x | 3.7 | x | 2.5 | x | 4.7 | x | |||||||||||||||||||||||||||||||||||||||
| New capitalization fair value (% of UPB) | 1.19 | % | 1.82 | % | |||||||||||||||||||||||||||||||||||||||||||
| New capitalization fair value multiple (3) | 4.7 | x | 4.0 | x | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Compensation and benefits | $ | 29.4 | $ | 28.5 | 3 | % | $ | 29.0 | 1 | % | |||||||||||||||||||
| Average Employment - Servicing | |||||||||||||||||||||||||||||
| Forward | 2,472 | 2,550 | (3) | % | 2,858 | (14) | |||||||||||||||||||||||
| Reverse | 1,048 | 1,045 | — | 628 | 67 | ||||||||||||||||||||||||
| Total | 3,520 | 3,595 | (2) | % | 3,486 | 1 | % | ||||||||||||||||||||||
| India and other | 2,730 | 2,750 | (1) | % | 2,463 | 11 | % | ||||||||||||||||||||||
| U.S. | 790 | 845 | (7) | 1,023 | (23) | ||||||||||||||||||||||||
| Total | 3,520 | 3,595 | (2) | % | 3,486 | 1 | % | ||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||||
| Advance match funded liabilities | $ | 10.7 | $ | 9.2 | 16 | % | $ | 2.7 | 296 | ||||||||||||||||||||
| Mortgage loan warehouse facilities | 3.8 | 2.7 | 41 | 3.1 | 23 | ||||||||||||||||||||||||
| MSR financing facilities | 17.5 | 16.8 | 4 | 7.8 | 124 | ||||||||||||||||||||||||
| Corporate debt interest expense allocation | 7.7 | 7.6 | 1 | 7.8 | (1) | ||||||||||||||||||||||||
| Escrow | 1.9 | 2.1 | (10) | 1.8 | 6 | ||||||||||||||||||||||||
| Total interest expense | $ | 41.6 | $ | 38.5 | 8 | % | $ | 23.1 | 80 | % | |||||||||||||||||||
| Average balances | |||||||||||||||||||||||||||||
| Advance match funded liabilities | 460.6 | 453.0 | 2 | 488.2 | (6) | ||||||||||||||||||||||||
| Mortgage loan warehouse facilities | 221.3 | 183.1 | 21 | 369.8 | (40) | ||||||||||||||||||||||||
| MSR financing facilities | 932.2 | 981.5 | (5) | 925.8 | 1 | ||||||||||||||||||||||||
| Effective average interest rate | |||||||||||||||||||||||||||||
| Advance match funded liabilities | 9.30 | % | 8.15 | % | 14 | % | 2.22 | % | 319 | % | |||||||||||||||||||
| Mortgage loan warehouse facilities | 6.91 | 5.83 | 19 | 3.32 | 108 | ||||||||||||||||||||||||
| MSR financing facilities | 7.52 | 6.85 | 10 | 3.37 | 123 | ||||||||||||||||||||||||
| Average 1M Term SOFR | 4.61 | % | 3.88 | % | 19 | % | 0.16 | % | n/m | ||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Servicing fees collected on behalf of third party | $ | 76.0 | $ | 76.3 | — | % | $ | 82.9 | (8) | % | |||||||||||||||||||
| Less: Subservicing fee retained | (19.5) | (20.1) | (3) | (21.5) | (9) | ||||||||||||||||||||||||
| Ancillary fee/income and other settlement (including expense reimbursement) | 3.3 | 2.6 | 27 | (1.7) | (294) | ||||||||||||||||||||||||
| Net servicing fee remittance (1) | 59.8 | 58.8 | 2 | 59.7 | — | ||||||||||||||||||||||||
| ESS servicing spread remittance | 10.5 | 7.9 | 33 | — | n/m | ||||||||||||||||||||||||
| Pledged MSR liability expense | $ | 70.3 | $ | 66.7 | 5 | % | $ | 59.7 | 18 | % | |||||||||||||||||||
ORIGINATIONS | ||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Gain on loans held for sale, net | $ | 4.1 | $ | 6.8 | (40) | % | $ | 12.8 | (68) | % | |||||||||||||||||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 7.2 | 9.3 | (23) | 25.0 | (71) | ||||||||||||||||||||||||
| Other revenue, net (1) | 3.5 | 5.4 | (35) | 7.3 | (52) | ||||||||||||||||||||||||
| Total revenue | 14.8 | 21.5 | (31) | 45.1 | (67) | ||||||||||||||||||||||||
| MSR valuation adjustments, net | 1.9 | 2.6 | (27) | 1.1 | 73 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Compensation and benefits | 9.6 | 14.5 | (34) | 28.5 | (66) | ||||||||||||||||||||||||
| Origination expense | 0.2 | 1.8 | (89) | 3.5 | (94) | ||||||||||||||||||||||||
| Occupancy and equipment | 0.5 | 0.7 | (29) | 1.6 | (69) | ||||||||||||||||||||||||
Technology and communications | 1.7 | 1.8 | (6) | 2.5 | (32) | ||||||||||||||||||||||||
| Professional services | 0.4 | 0.5 | (20) | 1.7 | (76) | ||||||||||||||||||||||||
| Corporate overhead allocations | 4.8 | 4.9 | (2) | 5.3 | (9) | ||||||||||||||||||||||||
| Other expenses | 1.5 | 2.2 | (32) | 3.2 | (53) | ||||||||||||||||||||||||
| Total operating expenses | 18.7 | 26.5 | (29) | 46.3 | (60) | ||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest income | 9.0 | 11.3 | (20) | 3.0 | 200 | ||||||||||||||||||||||||
| Interest expense | (9.9) | (10.7) | (7) | (4.2) | 136 | ||||||||||||||||||||||||
| Other, net | 0.2 | (0.1) | (300) | (1.4) | (114) | ||||||||||||||||||||||||
| Total other income (expense), net | (0.7) | 0.5 | (240) | (2.7) | (74) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (2.7) | $ | (2.0) | 35 | % | $ | (2.8) | (4) | % | |||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
Loan Production by Channel (in billions) | |||||||||||||||||||||||||||||
| Forward loans | |||||||||||||||||||||||||||||
| Correspondent | $ | 2.44 | $ | 3.92 | (38) | % | $ | 2.67 | (9) | % | |||||||||||||||||||
| Consumer Direct | 0.06 | 0.08 | (25) | 0.66 | (91) | ||||||||||||||||||||||||
| $ | 2.50 | $ | 4.00 | (38) | % | $ | 3.33 | (25) | % | ||||||||||||||||||||
| % Purchase production | 85 | % | 87 | % | (2) | 40 | % | 113 | |||||||||||||||||||||
| % Refinance production | 15 | 13 | 15 | 60 | (75) | ||||||||||||||||||||||||
| Reverse loans (1) | |||||||||||||||||||||||||||||
| Correspondent | $ | 0.08 | $ | 0.09 | (11) | % | $ | 0.28 | (71) | % | |||||||||||||||||||
| Wholesale | 0.04 | 0.04 | — | 0.12 | (67) | ||||||||||||||||||||||||
| Retail | 0.02 | 0.04 | (50) | 0.15 | (87) | ||||||||||||||||||||||||
| $ | 0.14 | $ | 0.17 | (18) | % | $ | 0.55 | (75) | % | ||||||||||||||||||||
MSR Purchases by Channel (in billions) | |||||||||||||||||||||||||||||
| Agency Cash Window / Flow MSR | $ | 1.81 | $ | 1.99 | (9)% | $ | 4.09 | (56)% | |||||||||||||||||||||
| Bulk purchases | 0.24 | — | n/m | 0.21 | 14 | ||||||||||||||||||||||||
| $ | 2.05 | $ | 1.99 | 3 | $ | 4.30 | (52) | ||||||||||||||||||||||
| Total | $ | 4.69 | $ | 6.16 | (24)% | $ | 8.18 | (43)% | |||||||||||||||||||||
Short-term loan commitment (at period end; in millions) | |||||||||||||||||||||||||||||
| Forward loans | $ | 612.1 | $ | 540.1 | 13 | % | $ | 569.8 | 7 | % | |||||||||||||||||||
| Reverse loans | 21.9 | 13.8 | 59 | 47.8 | (54) | ||||||||||||||||||||||||
| Average Employment - Originations | |||||||||||||||||||||||||||||
| Forward | 401 | 484 | (17) | 1,007 | (60) | ||||||||||||||||||||||||
| Reverse | 110 | 166 | (34) | 306 | (64) | ||||||||||||||||||||||||
| Total | 511 | 650 | (21) | % | 1,313 | (61) | % | ||||||||||||||||||||||
| India and other | 298 | 367 | (19) | 579 | (49) | ||||||||||||||||||||||||
| U.S. | 213 | 283 | (25) | 734 | (71) | ||||||||||||||||||||||||
| Total | 511 | 650 | (21) | % | 1,313 | (61) | % | ||||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Gain on Loans Held for Sale (1) | |||||||||||||||||||||||||||||
| Correspondent | $ | 2.2 | $ | 5.1 | (57) | % | $ | 0.1 | n/m | ||||||||||||||||||||
| Consumer Direct | 1.9 | 1.7 | 12 | 12.6 | (85) | ||||||||||||||||||||||||
| $ | 4.1 | $ | 6.8 | (40) | % | $ | 12.8 | (68) | % | ||||||||||||||||||||
| % Gain on Sale Margin (2) | |||||||||||||||||||||||||||||
| Correspondent | 0.09 | % | 0.13 | % | (31) | % | 0.01 | % | 800 | % | |||||||||||||||||||
| Consumer Direct | 3.18 | 2.06 | 54 | 1.91 | 66 | ||||||||||||||||||||||||
| 0.17 | % | 0.17 | % | — | % | 0.38 | % | (55) | % | ||||||||||||||||||||
Origination UPB (3) (in billions) | |||||||||||||||||||||||||||||
| Correspondent | $ | 2.44 | $ | 3.92 | (38) | % | $ | 2.67 | (9) | % | |||||||||||||||||||
| Consumer Direct | 0.06 | 0.08 | (25) | 0.66 | (91) | ||||||||||||||||||||||||
| $ | 2.50 | $ | 4.00 | (38) | % | $ | 3.33 | (25) | % | ||||||||||||||||||||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
Origination UPB (1) (in billions) | $ | 0.14 | $ | 0.17 | (18) | % | $ | 0.55 | (75) | % | |||||||||||||||||||
| Origination margin (2) | 5.02 | % | 5.55 | % | (10) | 4.56 | % | 10 | |||||||||||||||||||||
| Gain on reverse loans held for investment and HMBS-related borrowings, net (Originations) (3) | $ | 7.2 | $ | 9.3 | (23) | % | $ | 25.0 | (71) | % | |||||||||||||||||||
CORPORATE ITEMS AND OTHER | ||
| Three Months Ended | % Change | Three Months Ended March 31, 2022 | % Change | ||||||||||||||||||||||||||
| March 31, | December 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Reinsurance premiums (CRL) | $ | 1.9 | $ | 1.8 | 6 | % | $ | 1.7 | 12 | % | |||||||||||||||||||
| Other revenue | 0.1 | 0.1 | — | 0.1 | — | ||||||||||||||||||||||||
| Total revenue | 2.0 | 1.9 | 5 | 1.8 | 11 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Compensation and benefits | 19.0 | 23.2 | (18) | 10.5 | 81 | ||||||||||||||||||||||||
| Professional services | 5.1 | 4.4 | 16 | 3.6 | 42 | ||||||||||||||||||||||||
Technology and communications | 5.4 | 6.2 | (13) | 5.9 | (8) | ||||||||||||||||||||||||
| Occupancy and equipment | 0.6 | 1.0 | (40) | 0.6 | — | ||||||||||||||||||||||||
| Servicing and origination | 0.6 | 0.8 | (25) | (0.2) | (400) | ||||||||||||||||||||||||
| Other expenses | 1.2 | 2.4 | (50) | 2.5 | (52) | ||||||||||||||||||||||||
| Total operating expenses before corporate overhead allocations | 31.9 | 38.1 | (16) | 22.9 | 39 | ||||||||||||||||||||||||
| Corporate overhead allocations | |||||||||||||||||||||||||||||
| Servicing segment | (11.5) | (11.4) | 1 | (11.1) | 4 | ||||||||||||||||||||||||
| Originations segment | (4.8) | (4.9) | (2) | (5.3) | (9) | ||||||||||||||||||||||||
| Total operating expenses | 15.6 | 21.7 | (28) | 6.5 | 140 | ||||||||||||||||||||||||
| Other income (expense), net | |||||||||||||||||||||||||||||
| Interest income | 1.0 | 0.8 | 25 | 0.1 | 900 | ||||||||||||||||||||||||
| Interest expense | (10.8) | (10.7) | 1 | (10.5) | 3 | ||||||||||||||||||||||||
| Other, net | 0.8 | (0.4) | (300) | 0.5 | 40 | ||||||||||||||||||||||||
| Total other income (expense), net | (9.0) | (10.3) | (13) | (10.0) | (9) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (22.6) | $ | (30.1) | (25) | % | $ | (14.7) | 54 | % | |||||||||||||||||||
LIQUIDITY AND CAPITAL RESOURCES | ||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
| Total Borrowing Capacity (1) | Available Borrowing Capacity - Committed (1) | Available Borrowing Capacity - Uncommitted (1) | Total Borrowing Capacity (1) | Available Borrowing Capacity - Committed (1) | Available Borrowing Capacity - Uncommitted (1) | ||||||||||||||||||||||||||||||
| Advance facilities | $ | 554.4 | $ | 71.1 | $ | 13.4 | $ | 554.4 | $ | 27.5 | $ | 13.2 | |||||||||||||||||||||||
| Mortgage loan warehouse facilities | 1,783.0 | 199.8 | 635.0 | 2,133.0 | 332.6 | 1,097.6 | |||||||||||||||||||||||||||||
| MSR financing facilities | 1,050.0 | 171.6 | 47.2 | 1,025.0 | 143.4 | 17.1 | |||||||||||||||||||||||||||||
| Total | $ | 3,387.4 | $ | 442.5 | $ | 695.6 | $ | 3,712.4 | $ | 503.5 | $ | 1,128.0 | |||||||||||||||||||||||
| Rating Agency | Long-term Corporate Rating | Review Status / Outlook | Date of last action | |||||||||||||||||
| Moody’s | Caa1 | Positive | August 15, 2022 | |||||||||||||||||
| S&P | B- | Stable | January 24, 2023 | |||||||||||||||||
| $ in millions | Three Months Ended March 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Net cash provided by (used in) operating activities | $ | (207) | $ | 198 | |||||||
| Net cash used in investing activities | (20) | (46) | |||||||||
| Net cash provided by (used in) financing activities | 209 | (71) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (18) | $ | 82 | |||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 256 | $ | 345 | |||||||
CRITICAL ACCOUNTING POLICIES AND ESTIMATES | ||
RECENT ACCOUNTING DEVELOPMENTS | ||
Fair value at March 31, 2023 | Hypothetical change in fair value due to 25 bps rate decrease (1) | Hypothetical change in fair value due to 25 bps rate increase (1) | |||||||||||||||
| Agency MSRs - interest rate sensitive (excluding Rithm and MAV) | $ | 1,555.0 | $ | (44.7) | $ | 43.7 | |||||||||||
| Asset value of securitized HECM loans, net of HMBS-related borrowing (Reverse MSR) | 74.6 | 3.9 | (4.0) | ||||||||||||||
| MSR hedging derivative instruments | $ | 25.7 | 19.9 | (16.7) | |||||||||||||
| Total hedge position | $ | 23.8 | $ | (20.6) | |||||||||||||
| Hypothetical hedge coverage ratio (2) | 53 | % | 47 | % | |||||||||||||
| Hypothetical residual exposure to changes in interest rates | $ | (20.9) | $ | 23.1 | |||||||||||||
Fair value changes during the three months ended March 31, 2023 | ||||||||
| Change in 10-year swap (basis points) | (30) | |||||||
| Agency MSRs - interest rate sensitive (excluding Rithm and MAV) | $ | (50.5) | ||||||
| Asset value of securitized HECM loans, net of HMBS-related borrowing (Reverse MSR) | 4.7 | |||||||
| MSR hedging derivative instruments | 14.1 | |||||||
| Total hedge position | $ | 18.8 | ||||||
| Actual hedge coverage ratio | 37 | % | ||||||
| Residual fair value changes due to changes in interest rates | $ | (31.7) | ||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Balance | Fair Value (1) | Balance | Fair Value (1) | ||||||||||||||||||||
| Rate-Sensitive Assets: | |||||||||||||||||||||||
| Interest-earning cash | $ | 188.2 | $ | 188.2 | $ | 186.1 | $ | 186.1 | |||||||||||||||
| Loans held for sale, at fair value | 845.2 | 845.2 | 617.8 | 617.8 | |||||||||||||||||||
Loans held for sale, at lower of cost or fair value (2) | 4.2 | 4.2 | 4.9 | 4.9 | |||||||||||||||||||
Loans held for investment, at fair value | 7,662.8 | 7,662.8 | 7,504.1 | 7,504.1 | |||||||||||||||||||
Debt service accounts and time deposits | 22.0 | 22.0 | 22.8 | 22.8 | |||||||||||||||||||
| Total rate-sensitive assets | $ | 8,722.4 | $ | 8,722.4 | $ | 8,335.7 | $ | 8,335.7 | |||||||||||||||
| Rate-Sensitive Liabilities (3): | |||||||||||||||||||||||
| Match funded liabilities | $ | 469.9 | $ | 469.9 | $ | 513.7 | $ | 513.7 | |||||||||||||||
| Senior notes (4) | 660.0 | 550.8 | 660.0 | 555.2 | |||||||||||||||||||
| Mortgage loan warehouse facilities | 948.3 | 948.3 | 702.7 | 702.7 | |||||||||||||||||||
| MSR financing facilities, net (4) | 915.2 | 893.8 | 954.6 | 932.1 | |||||||||||||||||||
Total rate-sensitive liabilities | $ | 2,993.4 | $ | 2,862.8 | $ | 2,831.0 | $ | 2,703.7 | |||||||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Notional Balance | Fair Value (1) | Notional Balance | Fair Value (1) | ||||||||||||||||||||
| Rate-Sensitive Derivative Financial Instruments: | |||||||||||||||||||||||
| Derivative assets (liabilities): | |||||||||||||||||||||||
| IRLCs | $ | 634.0 | $ | 4.8 | $ | 553.9 | $ | (0.7) | |||||||||||||||
| Forward sales of loans | 45.0 | — | 140.0 | 0.5 | |||||||||||||||||||
| Interest rate swap futures | 975.0 | 22.9 | 670.0 | (13.6) | |||||||||||||||||||
| TBA forward MBS trades | 1,263.0 | (9.0) | 889.0 | 5.9 | |||||||||||||||||||
| Interest rate option contracts | 865.0 | 1.3 | — | — | |||||||||||||||||||
| Others | 196.8 | 0.2 | 56.4 | (0.1) | |||||||||||||||||||
| Derivatives, net | $ | 3,978.8 | $ | 20.2 | $ | 2,309.3 | $ | (8.0) | |||||||||||||||
| Change in Fair Value | |||||||||||
| Down 25 bps | Up 25 bps | ||||||||||
| Asset value of securitized HECM loans, net of HMBS-related borrowing | $ | 3.9 | $ | (4.0) | |||||||
| Loans held for investment - Unsecuritized HECM loans and tails | 0.04 | (0.04) | |||||||||
| Loans held for sale | 9.4 | (10.9) | |||||||||
| Derivative instruments | 11.0 | (6.9) | |||||||||
| Total MSRs - Agency and non-Agency (1) | (45.7) | 44.6 | |||||||||
| IRLCs | (0.9) | 0.8 | |||||||||
| Total, net | $ | (22.1) | $ | 23.7 | |||||||
| 4.1 | The Company agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument with respect to the issuance of long-term debt of the Company and its subsidiaries, the authorized principal amount of which does not exceed 10% of the consolidated assets of the Company and its subsidiaries. | |||||||||||||
| 101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 were formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Equity, (v) Consolidated Statements of Cash Flows, and (v) the Notes to Unaudited Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | |||||||||||||
| 104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL (Included as Exhibit 101). | |||||||||||||
| Ocwen Financial Corporation | ||||||||
| By: | /s/ Sean B. O’Neil | |||||||
| Sean B. O’Neil | ||||||||
| Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as its principal financial officer) | ||||||||
| Date: May 4, 2023 | ||||||||
1 Year Ocwen Financial Chart |
1 Month Ocwen Financial Chart |
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