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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2013	Oct. 19, 2013
Document and Entity Information
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	0001462418
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		22,857,130
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 212,585	$ 105,502
Accounts receivable, net	83,851	88,955
Prepaid expenses and other current assets	13,760	7,618
Deferred tax assets, net	1,775	1,775
Total current assets	311,971	203,850
Premises and equipment, net	59,464	50,399
Deferred tax assets, net	4,073	4,073
Intangible assets, net	242,088	56,586
Goodwill	14,915	14,915
Investment in Correspondent One		12,729
Loan to Ocwen		75,000
Other assets	15,243	11,674
Total assets	647,754	429,226
Current liabilities:
Accounts payable and accrued expenses	66,848	58,976
Current portion of long-term debt	4,000	2,000
Current portion of capital lease obligations		233
Other current liabilities	9,371	10,423
Total current liabilities	80,219	71,632
Long-term debt, less current portion	392,708	196,027
Other non-current liabilities	1,296	1,738
Commitments and contingencies (Note 17)
Equity:
Common stock ($1.00 par value; 100,000 shares authorized; 25,413 issued and 22,866 outstanding as of September 30, 2013; 25,413 issued and 23,427 outstanding as of December 31, 2012)	25,413	25,413
Additional paid-in-capital	88,949	86,873
Retained earnings	209,783	124,127
Treasury stock, at cost (2,547 shares as of September 30, 2013 and 1,986 shares as of December 31, 2012)	(151,861)	(77,954)
Altisource equity	172,284	158,459
Non-controlling interests	1,247	1,370
Total equity	173,531	159,829
Total liabilities and equity	$ 647,754	$ 429,226

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2013	Dec. 31, 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	25,413	25,413
Common stock, shares outstanding	22,866	23,427
Treasury stock, shares	2,547	1,986

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 210,835	$ 143,988	$ 545,772	$ 427,259
Cost of revenue	134,261	94,287	348,195	278,785
Gross profit	76,574	49,701	197,577	148,474
Selling, general and administrative expenses	31,519	18,452	80,027	54,485
Income from operations	45,055	31,249	117,550	93,989
Other income (expense), net:
Interest expense	(6,188)	(10)	(14,302)	(39)
Other income (expense), net	(253)	(257)	529	(900)
Total other income (expense), net	(6,441)	(267)	(13,773)	(939)
Income before income taxes and non-controlling interests	38,614	30,982	103,777	93,050
Income tax provision	(1,659)	(2,898)	(6,227)	(8,493)
Net income	36,955	28,084	97,550	84,557
Net income attributable to non-controlling interests	(947)	(1,060)	(3,093)	(4,223)
Net income attributable to Altisource	$ 36,008	$ 27,024	$ 94,457	$ 80,334
Earnings per share:
Basic (in dollars per share)	$ 1.56	$ 1.16	$ 4.07	$ 3.44
Diluted (in dollars per share)	$ 1.42	$ 1.08	$ 3.77	$ 3.23
Weighted average shares outstanding:
Basic (in shares)	23,025	23,338	23,185	23,347
Diluted (in shares)	25,333	25,016	25,070	24,895
Transactions with related parties included above:
Revenue	$ 143,557	$ 86,558	$ 354,889	$ 257,491
Selling, general and administrative expenses	$ 720	$ 621	2,133	$ 1,801
Other income			$ 773

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Treasury stock, at cost	Non-controlling interests
Balance at Dec. 31, 2011	$ 165,943	$ 25,413	$ 83,229	$ 126,161	$ (72,048)	$ 3,188
Balance (in shares) at Dec. 31, 2011		25,413
Increase (Decrease) in Equity
Net income	84,557			80,334		4,223
Contributions from non-controlling interest holders	27					27
Distributions to non-controlling interest holders	(6,008)					(6,008)
Share-based compensation expense	2,038		2,038
Exercise of stock options	2,619			(5,759)	8,378
Repurchase of shares	(16,781)				(16,781)
Balance at Sep. 30, 2012	232,395	$ 25,413	85,267	200,736	(80,451)	1,430
Balance (in shares) at Sep. 30, 2012		25,413
Balance at Dec. 31, 2012	159,829	$ 25,413	86,873	124,127	(77,954)	1,370
Balance (in shares) at Dec. 31, 2012		25,413
Increase (Decrease) in Equity
Net income	97,550			94,457		3,093
Contributions from non-controlling interest holders	18					18
Distributions to non-controlling interest holders	(3,234)					(3,234)
Share-based compensation expense	2,076		2,076
Exercise of stock options	4,710			(8,801)	13,511
Repurchase of shares	(87,418)				(87,418)
Balance at Sep. 30, 2013	$ 173,531	$ 25,413	$ 88,949	$ 209,783	$ (151,861)	$ 1,247
Balance (in shares) at Sep. 30, 2013		25,413

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References + Details

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 97,550	$ 84,557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,791	9,038
Amortization of intangible assets	18,857	3,833
Share-based compensation expense	2,076	2,038
Equity in losses of affiliates	176	872
Bad debt expense	1,338	1,170
Amortization of debt discount	184
Amortization of debt issuance costs	702
Loss on sale or disposal of fixed assets	1,178	401
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	3,762	(11,662)
Prepaid expenses and other current assets	(6,142)	(4,058)
Other assets	(1,871)	809
Accounts payable and accrued expenses	4,574	10,405
Other current and non-current liabilities	(1,535)	(266)
Net cash provided by operating activities	134,640	97,137
Cash flows from investing activities:
Additions to premises and equipment	(20,528)	(24,199)
Acquisition of businesses, net of cash acquired	(204,567)
Investment in equity affiliate	(50)
Proceeds from sale of equity affiliate	12,648
Proceeds from loan to Ocwen	75,000
Net cash used in investing activities	(137,497)	(24,199)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	201,000
Repayment of long-term debt	(2,503)
Debt issuance costs	(2,400)
Principal payments on capital lease obligations	(233)	(491)
Proceeds from stock option exercises	4,710	2,619
Purchase of treasury stock	(87,418)	(16,781)
Contributions from non-controlling interests	18	27
Distributions to non-controlling interests	(3,234)	(6,008)
Net cash provided by (used in) financing activities	109,940	(20,634)
Increase in cash and cash equivalents	107,083	52,304
Cash and cash equivalents at the beginning of the period	105,502	32,125
Cash and cash equivalents at the end of the period	212,585	84,429
Supplemental cash flow information
Interest paid	13,592	39
Income taxes paid, net	2,360	2,252
Non-cash investing and financing activities
Amortization of tax-deductible goodwill		2,524
Premises and equipment purchased on account	$ 1,947	$ 5,992

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Sep. 30, 2013
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION Description of Business Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries offering both distribution and content. We leverage proprietary business process, vendor and electronic payment management software and behavioral science based analytics to improve outcomes for marketplace participants. We are incorporated under the laws of Luxembourg and are publicly traded on the NASDAQ Global Select market under the symbol “ASPS.” We conduct our operations through three reporting segments: Mortgage Services, Financial Services and Technology Services. In addition, we report our corporate related expenditures and eliminations as a separate segment (see Note 18 for a description of our business segments). Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All significant intercompany and inter-segment transactions and accounts have been eliminated in consolidation. The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource®, is the manager of a national alliance of community mortgage bankers, correspondent lenders and suppliers of mortgage products and services that is referred to as the Lenders One® Mortgage Cooperative (“Lenders One”). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company of Lenders One, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact Lenders One’s economic performance and the obligation to absorb losses or the right to receive benefits from Lenders One. As a result, Lenders One is presented in the accompanying interim condensed consolidated financial statements on a consolidated basis with the interests of the members reflected as non-controlling interests. As of September 30, 2013, Lenders One had total assets of $3.8 million and liabilities of $2.5 million. As of December 31, 2012, Lenders One had total assets of $2.3 million and liabilities of $1.0 million. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Form 10-K for the year ended December 31, 2012, filed with the SEC on February 13, 2013, which contains a summary of our significant accounting policies. Certain footnote detail in the Form 10-K is omitted from the information included herein. Fair Value of Financial Instruments Our financial instruments primarily include cash and cash equivalents, restricted cash and long-term debt. Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair value due to the short-term nature of these instruments. The fair value was determined by level 1 of the three level hierarchy established by the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement, using quoted prices in active markets for identical assets. The carrying amount of the long-term debt approximates fair value due to the variable interest rate. The fair value was determined by level 2 of the three level hierarchy in ASC Topic 820 using inputs other than quoted prices that are observable, either directly or indirectly.

TRANSACTIONS WITH RELATED PARTIES

9 Months Ended

Sep. 30, 2013

TRANSACTIONS WITH RELATED PARTIES

TRANSACTIONS WITH RELATED PARTIES

NOTE 2 — TRANSACTIONS WITH RELATED PARTIES

Ocwen®

Ocwen Financial Corporation, together with its subsidiaries (“Ocwen”), is our largest customer. Our Chairman is also the Chairman of Ocwen. Ocwen is contractually obligated to purchase certain mortgage services and technology services from us through August 2025 under the terms of a master services agreement and amendments to the master services agreement (collectively, the “Service Agreements”). In connection with our acquisition from Ocwen of the fee-based businesses of Homeward Residential, Inc. (“Homeward”) that closed on March 29, 2013 and the acquisition from Ocwen related to the fee-based businesses of Residential Capital, LLC (“ResCap”) that closed on April 12, 2013 (see Note 3), our Service Agreements with Ocwen were amended to extend the term from 2020 to 2025. Further, as part of the amendments, we are the exclusive provider of services to Ocwen with respect to the Homeward and ResCap servicing portfolios, and Ocwen agreed not to establish similar fee-based businesses that would directly or indirectly compete with Altisource’s services with respect to the Homeward and ResCap businesses. We settle amounts with Ocwen on a daily, weekly or monthly basis depending upon the nature of the service and when the service is provided.

Related party revenue consists of revenue earned directly from Ocwen and revenue earned from the loans serviced by Ocwen when Ocwen designates us as the service provider. We earn additional revenue on the portfolios serviced by Ocwen that are not considered related party revenue when a party other than Ocwen selects the service provider. Related party revenue as a percentage of segment and consolidated revenue was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Mortgage Services	73	%	68	%	71	%	69	%
Financial Services	37	%	<1	%	25	%	<1	%
Technology Services	53	%	39	%	53	%	40	%
Consolidated revenue	68	%	60	%	65	%	60	%

We record revenue we earn from Ocwen under various long-term servicing contracts at rates we believe to be market rates as they are consistent with one or more of the following: the fees we charge to other customers for comparable services, the fees Ocwen pays to other service providers and fees charged by our competitors.

Support Services

We have support services agreements with Ocwen. These services provided and received pursuant to the above agreements include such areas as human resources, vendor management, corporate services, operational effectiveness, quality assurance, quantitative analytics and treasury. Payment for the services provided or received is on the fully-allocated cost of providing the service based on an estimate of the time and expense of providing the service. For the nine months ended September 30, 2013 and 2012, we billed Ocwen $1.8 million and $2.0 million, respectively ($0.6 million for the third quarter of 2013 and 2012), and Ocwen billed us $2.1 million and $1.8 million, respectively ($0.7 million and $0.6 million for the third quarter of 2013 and 2012, respectively), for services provided under these agreements. These amounts are reflected as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

Unsecured Term Loan

On December 27, 2012, we entered into a senior unsecured term loan agreement with Ocwen under which we loaned $75.0 million to Ocwen. Payments of interest were due quarterly at a rate per annum equal to the Eurodollar Rate (as defined in the agreement) plus 6.75%, provided that the Eurodollar Rate shall at no time be less than 1.50%. On February 15, 2013, Ocwen repaid the outstanding principal amount of $75.0 million, plus all accrued and unpaid interest and the term loan was terminated. Interest income related to this loan was $0.8 million for the nine months ended September 30, 2013 (no comparative amounts for 2012).

Transactions Related to Fee-Based Businesses

On January 31, 2013, we entered into non-binding letters of intent with Ocwen to acquire certain fee-based businesses associated with Ocwen’s acquisitions of the Homeward and the ResCap servicing portfolios. Ocwen acquired the Homeward servicing portfolio on December 27, 2012 and the ResCap servicing portfolio on February 15, 2013. Altisource acquired the Homeward fee-based businesses from Ocwen on March 29, 2013 (see Note 3). Altisource entered into an agreement with Ocwen on April 12, 2013 to establish additional terms related to our services in connection with the ResCap fee-based businesses (see Note 3).

Correspondent One® and HLSS™

In July 2011, we acquired an equity interest in Correspondent One S.A. (“Correspondent One”) (see Note 8). Correspondent One purchased closed conforming and government guaranteed residential mortgages from approved mortgage bankers. On March 31, 2013, we sold our 49% interest in Correspondent One to Ocwen for $12.6 million. Under a support services agreement, we provided Correspondent One certain finance, human resources, legal support, facilities, technology, vendor management and risk management services. For the nine months ended September 30, 2013 and 2012, we billed Correspondent One less than $0.1 million and $0.2 million, respectively (none for the third quarter of 2013 and $0.1 million for the third quarter of 2012). We also provided certain origination related services to Correspondent One. We earned revenue of $0.1 million and $0.2 million for the nine months ended September 30, 2013 and 2012, respectively, for these services (none for the third quarter of 2013 and $0.2 million for the third quarter of 2012).

Home Loan Servicing Solutions, Ltd. (“HLSS”) is a publicly traded company whose primary objective is the acquisition of mortgage servicing rights and advances. In connection with the February 2012 HLSS initial public offering and subsequent thereto, HLSS acquired mortgage servicing related assets from Ocwen. Our Chairman is also the Chairman of HLSS. Under a support services agreement, we provide HLSS certain finance, human resources and legal support services. For the nine months ended September 30, 2013 and 2012, we billed HLSS $0.5 million and $0.4 million, respectively ($0.2 million for the third quarter of 2013 and 2012).

These amounts are reflected as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

Residential and AAMC

Altisource Residential Corporation (“Residential”) and Altisource Asset Management Corporation (“AAMC”) were established, capitalized and their equity was distributed to our shareholders on December 21, 2012 and are each separate publicly traded companies (the “Separation of the Residential Asset Businesses”). Residential is focused on acquiring and managing single family rental properties by acquiring portfolios of sub-performing and non-performing residential mortgage loans throughout the United States. AAMC is an asset management company providing portfolio management and corporate governance services to Residential. Our Chairman is also the Chairman of each of Residential and AAMC.

For purposes of governing certain ongoing relationships between Altisource, Residential and AAMC after the Separation of the Residential Asset Businesses, and to provide for an orderly transition, we entered into certain agreements with Residential and AAMC. We have agreements to provide Residential with renovation management, lease management and property management services. In addition, we have agreements with Residential and AAMC to provide support services such as finance, human resources, legal support, facilities, technology, vendor management and risk management. Further, we have separate agreements for certain services related to income tax matters, trademark licenses and technology products and services. For the nine months ended September 30, 2013, we billed Residential $0.4 million, and we billed AAMC $0.9 million ($0.2 million for Residential and $0.7 million for AAMC for the third quarter of 2013 and no comparative amounts in 2012), under these agreements.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

ACQUISITIONS

9 Months Ended

Sep. 30, 2013

ACQUISITIONS

ACQUISITIONS

NOTE 3 — ACQUISITIONS

Homeward Fee-Based Businesses

On March 29, 2013, we acquired certain fee-based businesses associated with Ocwen’s acquisition of Homeward. As part of the acquisition, Ocwen agreed not to develop similar fee-based businesses that would directly or indirectly compete with services provided by Altisource relative to the Homeward servicing portfolio. Additionally, the terms of the Service Agreements were amended to extend the term from 2020 to 2025 (see Note 2). We paid $75.8 million, after a working capital and net income adjustment of $11.1 million, for the Homeward fee-based businesses. From the acquisition date through September 30, 2013, we recorded service revenue of $74.3 million and we estimate pre-tax income is $14.2 million related to these businesses.

Since the acquisition date, management adjusted the preliminary purchase price allocation and assigned associated asset lives based upon information that has become available. In addition to the working capital adjustment, we also reduced premises and equipment by $1.2 million based on a post-acquisition detailed analysis of software licenses received. The purchase price allocation and assessment of asset lives will continue to be revised as additional information about the fair value of assets and liabilities becomes available. Such assessment must be completed within 12 months from the acquisition date.

The preliminary adjusted allocation of the purchase price is estimated as follows:

(in thousands)

Premises and equipment	$	1,559
Customer relationship	75,609
	77,168
Accounts payable and accrued expenses	(1,351		)
Purchase price	$	75,817

		Estimated life (in years)

Premises and equipment		3 - 5
Customer relationship		7

ResCap Fee-Based Businesses

On April 12, 2013, we entered into an agreement with Ocwen to establish additional terms related to the existing servicing arrangements between Altisource and Ocwen in connection with certain mortgage servicing platform assets of ResCap (the “ResCap Business”). The Service Agreements provide that (i) Altisource will be the exclusive provider, except as prohibited by applicable law, to Ocwen of certain services related to the ResCap Business, (ii) Ocwen will not establish similar fee-based businesses that would directly or indirectly compete with Altisource’s services as they relate to the ResCap Business and (iii) Ocwen will market and promote the utilization of Altisource’s services to their various third party relationships. Additionally, the parties agreed to use commercially reasonable best efforts to ensure that the loans associated with the ResCap Business are boarded onto Altisource’s mortgage servicing platform. We paid $128.8 million ($80.0 million on April 12, 2013 and $48.8 million on May 10, 2013) for the ResCap fee-based businesses. From the acquisition date through September 30, 2013, we recorded service revenue of $28.6 million and we estimate pre-tax income is $10.9 million related to these businesses.

We acquired no tangible assets and assumed no liabilities in connection with the acquisition. However, certain employees as well as practices and processes developed to support the ResCap servicing portfolio were components of the transaction. We accounted for this transaction as a business combination in accordance with ASC Topic 805, Business Combinations.

Management prepared a preliminary purchase price allocation and assigned associated asset lives based upon available information at the time of the agreement and through the date of filing. This preliminary allocation and assessment of asset lives will be revised as additional information about the fair value of assets and liabilities becomes available. Such assessment must be completed within 12 months from the acquisition date. The agreement consideration of $128.8 million was fully allocated to the customer relationship intangible asset with an estimated average useful life of 7 years.

The following tables present the unaudited pro forma condensed consolidated results of operations as if the Homeward and ResCap Business transactions had occurred at the beginning of the earliest period presented.

	Nine months ended September 30, 2013
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	545,772	$	579,263
Net income attributable to Altisource	94,457		101,413
Earnings per share — diluted	3.77		4.05

	Nine months ended September 30, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	427,259	$	536,647
Net income attributable to Altisource	80,334		103,313
Earnings per share — diluted	3.23		4.15

	Three months ended September 30, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	143,988	$	180,451
Net income attributable to Altisource	27,024		34,665
Earnings per share — diluted	1.08		1.39

The unaudited pro forma information presents the combined operating results of Altisource and the Homeward and ResCap Business transactions. The Homeward and ResCap Business operating results were derived from their historical financial statements for the most comparable periods available. The results prior to the acquisition dates have been adjusted to include the pro forma impact of the adjustment of amortization of the acquired intangible assets based on the preliminary purchase price allocations, the adjustment of interest expense reflecting the portion of our $200 million senior secured term loan, increased to $400 million on May 7, 2013, used in the Homeward and ResCap Business transactions and to reflect the impact of income taxes on the pro forma adjustments utilizing Altisource’s effective income tax rate in each period presented.

The unaudited pro forma results are presented for illustrative purposes only and do not reflect additional revenue opportunities, the realization of any potential cost savings and any related integration costs. Certain revenue opportunities and cost savings may result from the transactions and the conversion to the Altisource model; however, there can be no assurance that these revenue opportunities and cost savings will be achieved. These pro forma results do not purport to be indicative of the results that would have actually been obtained if the transactions occurred as of the beginning of each of the periods presented, nor is the pro forma data intended to be a projection of results that may be obtained in the future.

Equator Acquisition

On August 19, 2013, we entered into a Purchase and Sale Agreement (the “Purchase Agreement”) pursuant to which we agreed to purchase all of the outstanding limited liability company interests of Equator, LLC, a California limited-liability company (“Equator”). The aggregate consideration payable under the Purchase Agreement is up to $150.0 million comprised of (i) $70.0 million in initial consideration and (ii) up to an additional $80.0 million in potential additional consideration, the payment of which is dependent upon the Equator business meeting targeted levels of profitability (as described in the Purchase Agreement) for three consecutive 12-month periods following closing. Each 12-month period has targeted levels of profitability and potential additional consideration will be paid based on each 12-month period. We may, at our discretion, pay up to 20% of the initial consideration and up to 20% of each payment of any additional consideration in shares of our restricted stock, with the balance to be paid in cash. The closing is subject to the satisfaction of customary closing terms and conditions, including, without limitation, clearance under the Hart-Scott-Rodino (“HSR”) Act. The purchase price is subject to certain adjustments based on targeted amounts of current assets and current liabilities of Equator at closing, to be settled within 90 days of the closing date.

We initially filed the HSR application with the Federal Trade Commission (the “FTC”) in the third quarter and initially expected to receive approval and close the acquisition in the third quarter of 2013. With the recent disruption of the United States government and shutdown of nonessential services, approval from the FTC has been delayed. To ensure that the HSR waiting period did not expire during the United States government disruption, and following discussions with the staff of the FTC, we voluntarily withdrew our initial application and re-filed it early in the fourth quarter of 2013. We believe, although there can be no assurance, the transaction will close in the fourth quarter of 2013.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

ACCOUNTS RECEIVABLE, NET

9 Months Ended

Sep. 30, 2013

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET

NOTE 4 — ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consists of the following:

	September 30,			December 31,
(in thousands)	2013			2012

Billed
Non-related parties	$	27,392		$	25,950
Ocwen	11,146			19,817
Correspondent One	—			27
HLSS	71			163
AAMC	595			14
Residential	71			—
Other receivables	234			353
	39,509			46,324
Unbilled
Non-related parties	40,010			39,496
Ocwen	8,940			6,377
Correspondent One	—			32
	88,459			92,229
Allowance for doubtful accounts	(4,608		)	(3,274		)

Total	$	83,851		$	88,955

Unbilled fees consist primarily of asset management and default management services for which we recognize revenues over the service delivery period but bill following completion of the service.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2013

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 5 — PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

	September 30,		December 31,
(in thousands)	2013		2012

Maintenance agreements, current portion	$	4,350	$	3,636
Income taxes receivable	4,256		1,814
Prepaid expenses	4,646		1,640
Other current assets	508		528

Total	$	13,760	$	7,618

PREMISES AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2013

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET

NOTE 6 — PREMISES AND EQUIPMENT, NET

Premises and equipment, net, which includes amounts recorded under capital leases, consists of the following:

	September 30,			December 31,
(in thousands)	2013			2012

Computer hardware and software	$	81,897		$	68,329
Office equipment and other	21,849			15,592
Furniture and fixtures	6,414			5,344
Leasehold improvements	14,863			12,982
	125,023			102,247
Less: Accumulated depreciation and amortization	(65,559		)	(51,848		)

Total	$	59,464		$	50,399

Depreciation and amortization expense, inclusive of capital leases, amounted to $13.8 million and $9.0 million for the nine months ended September 30, 2013 and 2012, respectively ($4.5 million and $3.8 million for the third quarter of 2013 and 2012, respectively), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2013

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

There were no changes in goodwill during the nine months ended September 30, 2013. The following is a summary of goodwill by segment:

	Mortgage		Financial		Technology
(in thousands)	Services		Services		Services		Total

Balance, September 30, 2013 and December 31, 2012	$	10,919	$	2,378	$	1,618	$	14,915

Intangible Assets, Net

Intangible assets, net consist of the following:

	Weighted average estimated	Gross carrying amount				Accumulated amortization						Net book value
(dollars in thousands)	useful life (years)	September 30, 2013		December 31, 2012		September 30, 2013			December 31, 2012			September 30, 2013		December 31, 2012

Definite lived intangible assets
Trademarks	16	$	10,614	$	10,614	$	(4,414	)	$	(4,060	)	$	6,200	$	6,554
Customer-related intangible assets	9	242,725		38,366		(35,520		)	(18,567		)	207,205		19,799
Operating agreement	20	35,000		35,000		(6,417		)	(5,104		)	28,583		29,896
Non-compete agreement	4	1,300		1,300		(1,200		)	(963		)	100		337

Total		$	289,639	$	85,280	$	(47,551	)	$	(28,694	)	$	242,088	$	56,586

Amortization expense for definite lived intangible assets was $18.9 million and $3.8 million for the nine months ended September 30, 2013 and 2012, respectively ($8.6 million and $1.2 million for the third quarter of 2013 and 2012, respectively). Expected annual definite lived intangible asset amortization for 2013 through 2017 is $27.6 million, $46.9 million, $40.4 million, $32.5 million and $26.0 million, respectively, for assets recorded as of September 30, 2013, including preliminary amounts associated with the Homeward and ResCap fee-based business transactions (see Note 3).

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

INVESTMENT IN EQUITY AFFILIATES	9 Months Ended
INVESTMENT IN EQUITY AFFILIATES	Sep. 30, 2013
INVESTMENT IN EQUITY AFFILIATES
INVESTMENT IN EQUITY AFFILIATES	NOTE 8 — INVESTMENT IN EQUITY AFFILIATES Correspondent One purchased closed conforming and government guaranteed residential mortgages from approved mortgage bankers. Prior to the sale of our interest in Correspondent One to Ocwen on March 31, 2013 (see Note 2), we had significant influence over the general operations of Correspondent One consistent with our 49% ownership level, and therefore, accounted for our investment under the equity method. On March 31, 2013, we sold our 49% interest in Correspondent One to Ocwen for $12.6 million. Our net loss on this investment was $0.1 million and $0.9 million for the nine months ended September 30, 2013 and 2012, respectively (none for the third quarter of 2013 and $0.3 million net loss for the third quarter of 2012).

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References + Details

OTHER ASSETS

9 Months Ended

Sep. 30, 2013

OTHER ASSETS

OTHER ASSETS

NOTE 9 — OTHER ASSETS

Other assets consist of the following:

	September 30,		December 31,
(in thousands)	2013		2012

Security deposits, net	$	7,105	$	5,019
Debt issuance costs, net	6,143		4,260
Maintenance agreements, non-current portion	1,743		1,614
Restricted cash	158		158
Other	94		623

Total	$	15,243	$	11,674

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2013

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 10 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consist of the following:

	September 30,		December 31,
(in thousands)	2013		2012

Accounts payable	$	7,818	$	5,079
Accrued expenses - general	16,903		16,528
Accrued salaries and benefits	23,222		19,613
Income taxes payable	14,774		8,750
Payable to Ocwen	4,131		8,865
Payable to AAMC	—		141

Total	$	66,848	$	58,976

Other current liabilities consist of the following:

	September 30,		December 31,
(in thousands)	2013		2012

Deferred revenue	$	1,512	$	2,482
Facility closure cost accrual, current portion	141		138
Book overdrafts	4,601		5,229
Other	3,117		2,574

Total	$	9,371	$	10,423

LONG-TERM DEBT

9 Months Ended

Sep. 30, 2013

LONG-TERM DEBT

LONG-TERM DEBT

NOTE 11 — LONG-TERM DEBT

Long-term debt consists of the following:

	September 30,			December 31,
(in thousands)	2013			2012

Senior secured term loan	$	397,497		$	200,000
Less: Unamortized discount, net	(789		)	(1,973		)
Net long-term debt	396,708			198,027
Less: Current portion	(4,000		)	(2,000		)

Long-term debt, less current portion	$	392,708		$	196,027

On November 27, 2012, we entered into a senior secured term loan agreement with Bank of America, N.A., as administrative agent, and certain lenders, pursuant to which we borrowed $200 million. The senior secured term loan was issued with a 1.0% original issue discount ($2.0 million), resulting in net proceeds of $198.0 million (the “Initial Proceeds”), with the Company and certain wholly-owned subsidiaries acting as guarantors (collectively, the “Guarantors”).

On May 7, 2013, we amended the senior secured term loan agreement to increase the principal amount of the senior secured term loan by $200 million (the “Incremental Term Loan”), which was issued with a $1.0 million original issue premium, resulting in gross proceeds to the Company of $201.0 million.

The Initial Proceeds and the Incremental Term Loan must be repaid in equal consecutive quarterly principal installments of 0.25% of the initial principal amounts, with the balance due at maturity. The aggregate amount of each quarterly scheduled principal installment of the term loans is equal to approximately $1.0 million. All amounts outstanding under the senior secured term loan agreement will become due on the earlier of (i) November 27, 2019, being the seventh anniversary of the closing date of the senior secured term loan agreement or (ii) the date on which the loans are declared to be due and owed by the administrative agent at the request (or with the consent) of the lenders upon the occurrence of any event of default under the senior secured term loan agreement.

The Incremental Term Loan was used to fund a portion of the Company’s previously announced transaction with Ocwen related to the ResCap servicing portfolio (see Note 3), with the remainder to be used for stock repurchases and for general corporate purposes, including potential acquisitions. Additionally, the Incremental Term Loan was used to pay certain fees, commissions and expenses in connection with the Incremental Term Loan. The Company paid legal fees and other costs associated with the Incremental Term Loan of $2.4 million, which were recorded as debt issuance costs in other assets in the accompanying condensed consolidated balance sheets.

Additionally, the Incremental Term Loan modified the senior secured term loan agreement to, among other changes, provide for an additional $200 million incremental term loan facility accordion and increase the maximum amount of Restricted Payments (as defined in the senior secured term loan) that may be made by us, including increasing the amount of Company share repurchases permitted.

All of the term loans outstanding bear interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate (each as defined in the senior secured term loan agreement). Eurodollar Rate loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted Eurodollar Rate for the applicable interest period and (y) 1.25% plus (ii) a 4.50% margin. Base Rate loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Base Rate and (y) 2.25% plus (ii) a 3.50% margin. The interest rate at September 30, 2013 was 5.75%.

Payments under the senior secured term loan agreement are guaranteed by the Guarantors and are secured by a pledge of all equity interests of certain subsidiaries, as well as a lien on substantially all of the assets of Altisource Solutions S.à r.l., a wholly-owned subsidiary of Altisource, and the Guarantors, subject to certain exceptions.

At September 30, 2013, debt issuance costs were $6.1 million, net of $0.8 million of accumulated amortization. At December 31, 2012, debt issuance costs were $4.3 million, net of $0.1 million of accumulated amortization. Debt issuance costs are included in other assets in the accompanying condensed consolidated balance sheets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

EQUITY AND SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2013

EQUITY AND SHARE-BASED COMPENSATION

EQUITY AND SHARE-BASED COMPENSATION

NOTE 12 — EQUITY AND SHARE-BASED COMPENSATION

Stock Repurchase Plan

In May 2012, our shareholders approved a stock repurchase program, which replaced the previous stock repurchase program. Under the program, we are authorized to purchase up to 3.5 million shares of our common stock in the open market in addition to amounts previously purchased under the prior program. From authorization of the previous program in May 2010 through September 30, 2013, we have purchased approximately 3.4 million shares of our common stock in the open market at an average price of $53.94 per share. We purchased 0.8 million shares of common stock (at an average price of $103.45 per share) and 0.3 million shares of common stock (at an average price of $63.25 per share) during the nine months ended September 30, 2013 and 2012, respectively (0.3 million shares at an average price of $134.86 per share for the third quarter of 2013 and no comparative amounts in the third quarter of 2012). Approximately 2.7 million shares of common stock remain available for repurchase under the program. Luxembourg law limits share repurchases to approximately the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings less shares repurchased. As of September 30, 2013, approximately $38 million was available to repurchase our common stock under Luxembourg law. Our $200 million senior secured term loan, increased to $400 million on May 7, 2013, also limits the amount we can spend on share repurchases in any year and may prevent repurchases in certain circumstances. As of September 30, 2013, approximately $107 million was available to repurchase our common stock under our senior secured term loan.

Share-Based Compensation

We issue share-based awards in the form of stock options and certain other equity-based awards for certain employees and officers. We recorded share-based compensation expense of $2.1 million and $2.0 million for the nine months ended September 30, 2013 and 2012, respectively ($0.6 million and $1.1 million for the third quarter of 2013 and 2012, respectively). The amount for the nine months ended September 30, 2012 includes the reversal of $0.8 million of share-based compensation expense related to the departure of an executive officer in March 2012.

Outstanding share-based compensation currently consists primarily of stock option grants that are a combination of service-based and market-based options.

Service-based Options. These options are granted at fair value on the date of grant. The options generally vest over four years with equal annual cliff-vesting and expire on the earlier of 10 years after the date of grant or following termination of service. A total of 0.8 million service-based awards were outstanding at September 30, 2013.

Market-based Options. These option grants have two components each of which vest only upon the achievement of certain criteria. The first component, which we refer to internally as “ordinary performance” grants, consists of two-thirds of the market-based grant and begins to vest if the stock price is at least double the exercise price, as long as the stock price realizes a compounded annual gain of at least 20% over the exercise price. The remaining third of the market-based options, which we refer to internally as “extraordinary performance” grants, begins to vest if the stock price is at least triple the exercise price, as long as the stock price realizes a compounded annual gain of at least 25% over the exercise price. The vesting schedule for all market-based awards is 25% upon achievement of the criteria and the remaining 75% in three equal annual installments. A total of 1.9 million market-based awards were outstanding at September 30, 2013.

The Company granted less than 0.1 million stock options (at a weighted average exercise price of $104.84 per share) and 0.3 million stock options (at a weighted average exercise price of $69.48 per share) during the nine months ended September 30, 2013 and 2012, respectively.

The fair value of the service-based options was determined using the Black-Scholes option pricing model, and a lattice (binomial) model was used to determine the fair value of the market-based options, using the following assumptions as of the grant date:

	Nine months ended September 30, 2013		Nine months ended September 30, 2012
	Black-Scholes	Binomial	Black-Scholes	Binomial

Risk-free interest rate	1.02% — 1.81%	0.01% — 2.71%	0.87% — 1.17%	0.08% — 2.04%

Expected stock price volatility	36.35% — 36.76%	36.40% — 36.80%	34.22% — 34.65%	34.20% — 34.60%
Expected dividend yield	—	—	—	—

Expected option life (in years)	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14

Fair value	$31.33 — $49.14	$16.12 — $41.72	$19.25 — $29.80	$9.98 — $22.76

The following table summarizes the weighted average fair value of stock options granted, the total intrinsic value of stock options exercised and the fair value of options vested:

	Nine months ended September 30,
(in thousands, except per share amounts)	2013		2012

Weighted average fair value at grant date per share	$	32.59	$	20.77
Intrinsic value of options exercised	24,587		11,535
Fair value of options vested	1,867		1,491

Share-based compensation expense is recorded net of estimated forfeiture rates ranging from 1% to 10%.

As of September 30, 2013, estimated unrecognized compensation costs related to share-based payments amounted to $3.0 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 2.9 years.

The following table summarizes the activity related to our stock options:

	Number of options		Weighted average exercise price		Weighted average contractual term (in years)	Aggregate intrinsic value (in thousands)

Outstanding at December 31, 2012	3,058,309		$	17.69	6.1	$	211,072
Granted	75,000		104.84
Exercised	(279,531	)	17.12
Forfeited	(117,248	)	59.49
Outstanding at September 30, 2013	2,736,530		18.34		5.4	332,955

Exercisable at September 30, 2013	2,216,347		11.99		4.9	283,735

COST OF REVENUE

9 Months Ended

Sep. 30, 2013

COST OF REVENUE

COST OF REVENUE

NOTE 13 — COST OF REVENUE

Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service and operations roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications expenses as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013		2012

Compensation and benefits	$	39,600	$	28,840	$	108,923	$	84,314
Outside fees and services	56,611		31,084		137,851		91,494
Reimbursable expenses	29,496		24,326		73,061		77,846
Technology and telecommunications	5,459		6,900		18,010		17,890
Depreciation and amortization	3,095		3,137		10,350		7,241

Total	$	134,261	$	94,287	$	348,195	$	278,785

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

9 Months Ended

Sep. 30, 2013

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

NOTE 14 — SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses include payroll for personnel employed in executive, finance, legal, human resources, vendor management, risk and operational effectiveness roles. This category also includes occupancy costs, professional fees and depreciation and amortization on non-operating assets. The components of selling, general and administrative expenses were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013		2012

Compensation and benefits	$	6,802	$	5,212	$	18,868	$	15,995
Professional services	2,168		2,089		5,184		5,550
Occupancy related costs	7,438		6,641		21,971		19,308
Amortization of intangible assets	8,620		1,201		18,857		3,833
Depreciation and amortization	1,390		701		3,441		1,797
Other	5,101		2,608		11,706		8,002

Total	$	31,519	$	18,452	$	80,027	$	54,485

OTHER INCOME (EXPENSE), NET

9 Months Ended

Sep. 30, 2013

OTHER INCOME (EXPENSE), NET

OTHER INCOME (EXPENSE), NET

NOTE 15 — OTHER INCOME (EXPENSE), NET

Other income (expense), net consists of the following:

	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2013			2012			2013			2012

Loss in equity affiliates	$	(54	)	$	(293	)	$	(176	)	$	(872	)
Interest income	14			49			881			75
Other, net	(213		)	(13		)	(176		)	(103		)

Total	$	(253	)	$	(257	)	$	529		$	(900	)

Loss in equity affiliates primarily represents our proportional share of the losses in Correspondent One (see Note 8), net of the gain on sale of Correspondent One (see Note 2).

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 16 — EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities using the treasury stock method.

Basic and diluted EPS are calculated as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2013		2012		2013		2012

Net income attributable to Altisource	$	36,008	$	27,024	$	94,457	$	80,334

Weighted average common shares outstanding, basic	23,025		23,338		23,185		23,347
Dilutive effect of stock options	2,308		1,678		1,885		1,548

Weighted average common shares outstanding, diluted	25,333		25,016		25,070		24,895

Earnings per share
Basic	$	1.56	$	1.16	$	4.07	$	3.44
Diluted	$	1.42	$	1.08	$	3.77	$	3.23

For the nine months ended September 30, 2013 and 2012, less than 0.1 million options (less than 0.1 million for the third quarter of 2013 and 2012), that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS for the nine months ended September 30, 2013 and 2012 are 0.1 million and 0.3 million options, respectively (0.1 million and 0.2 million options for the third quarter of 2013 and 2012, respectively), granted for shares that are issuable upon the achievement of certain market and performance criteria related to our common stock price and an annualized rate of return to investors that have not been met.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2013
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 17 — COMMITMENTS AND CONTINGENCIES Litigation From time to time, we are involved in legal proceedings arising in the ordinary course of business. We record a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where a range of loss is determined, we record a best estimate of loss within the range. When legal proceedings are material, we disclose the nature of the litigation, and to the extent possible, the estimate of loss or range of loss. In the opinion of management, after consultation with legal counsel and considering insurance coverage where applicable, the outcome of current legal proceedings, both individually and in the aggregate, will not have a material impact on our financial condition, results of operations or cash flows. Escrow Balances We hold customers’ assets in escrow at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow for limited periods of time, generally consisting of a few days and are not included in the condensed consolidated balance sheets. Amounts held in escrow were $56.8 million and $47.2 million as of September 30, 2013 and December 31, 2012, respectively.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

SEGMENT REPORTING

9 Months Ended

Sep. 30, 2013

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 18 — SEGMENT REPORTING

Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer to evaluate operating performance and to assess the allocation of our resources.

We classify our businesses into three reportable segments. The Mortgage Services segment provides services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators and investors in single family homes. The Financial Services segment provides collection and customer relationship management services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and the utility and insurance industries. The Technology Services segment principally consists of our REALSuite software applications as well as our information technology infrastructure services. The REALSuite platform provides a fully integrated set of software applications and technologies that manage the end-to-end lifecycle for residential and commercial mortgage loan servicing including the automated management and payment of a distributed network of vendors. In addition, our Corporate Items and Eliminations segment includes eliminations of transactions between the reporting segments, interest expense and costs related to corporate support functions including executive, finance, legal, human resources, vendor management, risk and operational effectiveness.

Financial information for our segments is as follows:

	Three months ended September 30, 2013
								Corporate
	Mortgage			Financial		Technology		Items and			Consolidated
(in thousands)	Services			Services		Services		Eliminations			Altisource

Revenue	$	164,661		$	27,267	$	25,175	$	(6,268	)	$	210,835
Cost of revenue	106,412			14,998		18,569		(5,718		)	134,261
Gross profit	58,249			12,269		6,606		(550		)	76,574
Selling, general and administrative expenses	14,224			4,616		2,621		10,058			31,519
Income from operations	44,025			7,653		3,985		(10,608		)	45,055
Other income (expense), net	(41		)	—		—		(6,400		)	(6,441		)
Income before income taxes and non-controlling interests	$	43,984		$	7,653	$	3,985	$	(17,008	)	$	38,614

	Three months ended September 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	115,882		$	15,394		$	19,076		$	(6,364	)	$	143,988
Cost of revenue	72,774			11,784			15,418			(5,689		)	94,287
Gross profit	43,108			3,610			3,658			(675		)	49,701
Selling, general and administrative expenses	6,155			3,116			1,851			7,330			18,452
Income from operations	36,953			494			1,807			(8,005		)	31,249
Other income (expense), net	(290		)	(6		)	(5		)	34			(267		)
Income before income taxes and non-controlling interests	$	36,663		$	488		$	1,802		$	(7,971	)	$	30,982

	Nine months ended September 30, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource

Revenue	$	426,319		$	66,675		$	70,189	$	(17,411	)	$	545,772
Cost of revenue	267,859			40,831			55,088		(15,583		)	348,195
Gross profit	158,460			25,844			15,101		(1,828		)	197,577
Selling, general and administrative expenses	32,272			11,000			7,514		29,241			80,027
Income from operations	126,188			14,844			7,587		(31,069		)	117,550
Other income (expense), net	(153		)	(8		)	3		(13,615		)	(13,773		)
Income before income taxes and non-controlling interests	$	126,035		$	14,836		$	7,590	$	(44,684	)	$	103,777

	Nine months ended September 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	341,446		$	49,649		$	53,984		$	(17,820	)	$	427,259
Cost of revenue	218,969			35,780			40,098			(16,062		)	278,785
Gross profit	122,477			13,869			13,886			(1,758		)	148,474
Selling, general and administrative expenses	17,458			10,550			5,519			20,958			54,485
Income from operations	105,019			3,319			8,367			(22,716		)	93,989
Other income (expense), net	(857		)	(22		)	(22		)	(38		)	(939		)
Income before income taxes and non-controlling interests	$	104,162		$	3,297		$	8,345		$	(22,754	)	$	93,050

							Corporate
	Mortgage		Financial		Technology		Items and		Consolidated
(in thousands)	Services		Services		Services		Eliminations		Altisource

Total assets:
September 30, 2013	$	313,441	$	52,578	$	120,059	$	161,676	$	647,754
December 31, 2012	132,924		37,782		64,570		193,950		429,226

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

TRANSACTIONS WITH RELATED PARTIES (Tables)

9 Months Ended

Sep. 30, 2013

TRANSACTIONS WITH RELATED PARTIES

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Mortgage Services	73	%	68	%	71	%	69	%
Financial Services	37	%	<1	%	25	%	<1	%
Technology Services	53	%	39	%	53	%	40	%
Consolidated revenue	68	%	60	%	65	%	60	%

ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2013

ACQUISITIONS

Schedule of the preliminary adjusted allocation of the purchase price

(in thousands)

Premises and equipment	$	1,559
Customer relationship	75,609
	77,168
Accounts payable and accrued expenses	(1,351		)
Purchase price	$	75,817

Schedule of estimated life of identified assets acquired as a result of acquisitions

		Estimated life (in years)

Premises and equipment		3 - 5
Customer relationship		7

Schedule of unaudited pro forma condensed consolidated results of operations

	Nine months ended September 30, 2013
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	545,772	$	579,263
Net income attributable to Altisource	94,457		101,413
Earnings per share — diluted	3.77		4.05

	Nine months ended September 30, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	427,259	$	536,647
Net income attributable to Altisource	80,334		103,313
Earnings per share — diluted	3.23		4.15

	Three months ended September 30, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	143,988	$	180,451
Net income attributable to Altisource	27,024		34,665
Earnings per share — diluted	1.08		1.39

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

ACCOUNTS RECEIVABLE, NET (Tables)

9 Months Ended

Sep. 30, 2013

ACCOUNTS RECEIVABLE, NET

Schedule of accounts receivable, net

	September 30,			December 31,
(in thousands)	2013			2012

Billed
Non-related parties	$	27,392		$	25,950
Ocwen	11,146			19,817
Correspondent One	—			27
HLSS	71			163
AAMC	595			14
Residential	71			—
Other receivables	234			353
	39,509			46,324
Unbilled
Non-related parties	40,010			39,496
Ocwen	8,940			6,377
Correspondent One	—			32
	88,459			92,229
Allowance for doubtful accounts	(4,608		)	(3,274		)

Total	$	83,851		$	88,955

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

9 Months Ended

Sep. 30, 2013

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets

	September 30,		December 31,
(in thousands)	2013		2012

Maintenance agreements, current portion	$	4,350	$	3,636
Income taxes receivable	4,256		1,814
Prepaid expenses	4,646		1,640
Other current assets	508		528

Total	$	13,760	$	7,618

PREMISES AND EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2013

PREMISES AND EQUIPMENT, NET

Schedule of premises and equipment, net, which includes amounts recorded under capital leases

	September 30,			December 31,
(in thousands)	2013			2012

Computer hardware and software	$	81,897		$	68,329
Office equipment and other	21,849			15,592
Furniture and fixtures	6,414			5,344
Leasehold improvements	14,863			12,982
	125,023			102,247
Less: Accumulated depreciation and amortization	(65,559		)	(51,848		)

Total	$	59,464		$	50,399

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

9 Months Ended

Sep. 30, 2013

GOODWILL AND INTANGIBLE ASSETS, NET

Summary of goodwill by segment

	Mortgage		Financial		Technology
(in thousands)	Services		Services		Services		Total

Balance, September 30, 2013 and December 31, 2012	$	10,919	$	2,378	$	1,618	$	14,915

Schedule of intangible assets, net

	Weighted average estimated	Gross carrying amount				Accumulated amortization						Net book value
(dollars in thousands)	useful life (years)	September 30, 2013		December 31, 2012		September 30, 2013			December 31, 2012			September 30, 2013		December 31, 2012

Definite lived intangible assets
Trademarks	16	$	10,614	$	10,614	$	(4,414	)	$	(4,060	)	$	6,200	$	6,554
Customer-related intangible assets	9	242,725		38,366		(35,520		)	(18,567		)	207,205		19,799
Operating agreement	20	35,000		35,000		(6,417		)	(5,104		)	28,583		29,896
Non-compete agreement	4	1,300		1,300		(1,200		)	(963		)	100		337

Total		$	289,639	$	85,280	$	(47,551	)	$	(28,694	)	$	242,088	$	56,586

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

OTHER ASSETS (Tables)

9 Months Ended

Sep. 30, 2013

OTHER ASSETS

Schedule of other assets

	September 30,		December 31,
(in thousands)	2013		2012

Security deposits, net	$	7,105	$	5,019
Debt issuance costs, net	6,143		4,260
Maintenance agreements, non-current portion	1,743		1,614
Restricted cash	158		158
Other	94		623

Total	$	15,243	$	11,674

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2013

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accounts payable and accrued expenses

	September 30,		December 31,
(in thousands)	2013		2012

Accounts payable	$	7,818	$	5,079
Accrued expenses - general	16,903		16,528
Accrued salaries and benefits	23,222		19,613
Income taxes payable	14,774		8,750
Payable to Ocwen	4,131		8,865
Payable to AAMC	—		141

Total	$	66,848	$	58,976

Schedule of other current liabilities

	September 30,		December 31,
(in thousands)	2013		2012

Deferred revenue	$	1,512	$	2,482
Facility closure cost accrual, current portion	141		138
Book overdrafts	4,601		5,229
Other	3,117		2,574

Total	$	9,371	$	10,423

LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2013

LONG-TERM DEBT

Schedule of long-term debt

	September 30,			December 31,
(in thousands)	2013			2012

Senior secured term loan	$	397,497		$	200,000
Less: Unamortized discount, net	(789		)	(1,973		)
Net long-term debt	396,708			198,027
Less: Current portion	(4,000		)	(2,000		)

Long-term debt, less current portion	$	392,708		$	196,027

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

EQUITY AND SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2013

EQUITY AND SHARE-BASED COMPENSATION

Schedule of assumptions used to determine the fair value of options as of the grant date

	Nine months ended September 30, 2013		Nine months ended September 30, 2012
	Black-Scholes	Binomial	Black-Scholes	Binomial

Risk-free interest rate	1.02% — 1.81%	0.01% — 2.71%	0.87% — 1.17%	0.08% — 2.04%

Expected stock price volatility	36.35% — 36.76%	36.40% — 36.80%	34.22% — 34.65%	34.20% — 34.60%
Expected dividend yield	—	—	—	—

Expected option life (in years)	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14

Fair value	$31.33 — $49.14	$16.12 — $41.72	$19.25 — $29.80	$9.98 — $22.76

Summary of the weighted average fair value of stock options granted, the total intrinsic value of stock options exercised and the fair value of options vested

	Nine months ended September 30,
(in thousands, except per share amounts)	2013		2012

Weighted average fair value at grant date per share	$	32.59	$	20.77
Intrinsic value of options exercised	24,587		11,535
Fair value of options vested	1,867		1,491

Summary of the activity of the entity's stock options

	Number of options		Weighted average exercise price		Weighted average contractual term (in years)	Aggregate intrinsic value (in thousands)

Outstanding at December 31, 2012	3,058,309		$	17.69	6.1	$	211,072
Granted	75,000		104.84
Exercised	(279,531	)	17.12
Forfeited	(117,248	)	59.49
Outstanding at September 30, 2013	2,736,530		18.34		5.4	332,955

Exercisable at September 30, 2013	2,216,347		11.99		4.9	283,735

COST OF REVENUE (Tables)

9 Months Ended

Sep. 30, 2013

COST OF REVENUE

Schedule of components of cost of revenue

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013		2012

Compensation and benefits	$	39,600	$	28,840	$	108,923	$	84,314
Outside fees and services	56,611		31,084		137,851		91,494
Reimbursable expenses	29,496		24,326		73,061		77,846
Technology and telecommunications	5,459		6,900		18,010		17,890
Depreciation and amortization	3,095		3,137		10,350		7,241

Total	$	134,261	$	94,287	$	348,195	$	278,785

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)

9 Months Ended

Sep. 30, 2013

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Schedule of the components of selling, general and administrative expenses

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013		2012

Compensation and benefits	$	6,802	$	5,212	$	18,868	$	15,995
Professional services	2,168		2,089		5,184		5,550
Occupancy related costs	7,438		6,641		21,971		19,308
Amortization of intangible assets	8,620		1,201		18,857		3,833
Depreciation and amortization	1,390		701		3,441		1,797
Other	5,101		2,608		11,706		8,002

Total	$	31,519	$	18,452	$	80,027	$	54,485

OTHER INCOME (EXPENSE), NET (Tables)

9 Months Ended

Sep. 30, 2013

OTHER INCOME (EXPENSE), NET

Schedule of other income (expense), net

	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2013			2012			2013			2012

Loss in equity affiliates	$	(54	)	$	(293	)	$	(176	)	$	(872	)
Interest income	14			49			881			75
Other, net	(213		)	(13		)	(176		)	(103		)

Total	$	(253	)	$	(257	)	$	529		$	(900	)

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE

Schedule of basic and diluted EPS calculation

	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2013		2012		2013		2012

Net income attributable to Altisource	$	36,008	$	27,024	$	94,457	$	80,334

Weighted average common shares outstanding, basic	23,025		23,338		23,185		23,347
Dilutive effect of stock options	2,308		1,678		1,885		1,548

Weighted average common shares outstanding, diluted	25,333		25,016		25,070		24,895

Earnings per share
Basic	$	1.56	$	1.16	$	4.07	$	3.44
Diluted	$	1.42	$	1.08	$	3.77	$	3.23

SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2013

SEGMENT REPORTING

Schedule of financial information of segments

	Three months ended September 30, 2013
								Corporate
	Mortgage			Financial		Technology		Items and			Consolidated
(in thousands)	Services			Services		Services		Eliminations			Altisource

Revenue	$	164,661		$	27,267	$	25,175	$	(6,268	)	$	210,835
Cost of revenue	106,412			14,998		18,569		(5,718		)	134,261
Gross profit	58,249			12,269		6,606		(550		)	76,574
Selling, general and administrative expenses	14,224			4,616		2,621		10,058			31,519
Income from operations	44,025			7,653		3,985		(10,608		)	45,055
Other income (expense), net	(41		)	—		—		(6,400		)	(6,441		)
Income before income taxes and non-controlling interests	$	43,984		$	7,653	$	3,985	$	(17,008	)	$	38,614

	Three months ended September 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	115,882		$	15,394		$	19,076		$	(6,364	)	$	143,988
Cost of revenue	72,774			11,784			15,418			(5,689		)	94,287
Gross profit	43,108			3,610			3,658			(675		)	49,701
Selling, general and administrative expenses	6,155			3,116			1,851			7,330			18,452
Income from operations	36,953			494			1,807			(8,005		)	31,249
Other income (expense), net	(290		)	(6		)	(5		)	34			(267		)
Income before income taxes and non-controlling interests	$	36,663		$	488		$	1,802		$	(7,971	)	$	30,982

	Nine months ended September 30, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource

Revenue	$	426,319		$	66,675		$	70,189	$	(17,411	)	$	545,772
Cost of revenue	267,859			40,831			55,088		(15,583		)	348,195
Gross profit	158,460			25,844			15,101		(1,828		)	197,577
Selling, general and administrative expenses	32,272			11,000			7,514		29,241			80,027
Income from operations	126,188			14,844			7,587		(31,069		)	117,550
Other income (expense), net	(153		)	(8		)	3		(13,615		)	(13,773		)
Income before income taxes and non-controlling interests	$	126,035		$	14,836		$	7,590	$	(44,684	)	$	103,777

	Nine months ended September 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	341,446		$	49,649		$	53,984		$	(17,820	)	$	427,259
Cost of revenue	218,969			35,780			40,098			(16,062		)	278,785
Gross profit	122,477			13,869			13,886			(1,758		)	148,474
Selling, general and administrative expenses	17,458			10,550			5,519			20,958			54,485
Income from operations	105,019			3,319			8,367			(22,716		)	93,989
Other income (expense), net	(857		)	(22		)	(22		)	(38		)	(939		)
Income before income taxes and non-controlling interests	$	104,162		$	3,297		$	8,345		$	(22,754	)	$	93,050

							Corporate
	Mortgage		Financial		Technology		Items and		Consolidated
(in thousands)	Services		Services		Services		Eliminations		Altisource

Total assets:
September 30, 2013	$	313,441	$	52,578	$	120,059	$	161,676	$	647,754
December 31, 2012	132,924		37,782		64,570		193,950		429,226

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions	9 Months Ended
	Sep. 30, 2013 USD ($) item	Dec. 31, 2012 USD ($)
ORGANIZATION AND BASIS OF PRESENTATION
Number of reportable segments \| item	3
Lenders One
Summary of significant accounting policies
Total assets	$ 3.8	$ 2.3
Liabilities	$ 2.5	$ 1.0

TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
	Mar. 31, 2013	Feb. 15, 2013	Dec. 27, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
TRANSACTIONS WITH RELATED PARTIES
Amount billed by related party				$ 720	$ 621	$ 2,133	$ 1,801
Revenue earned from related party				143,557	86,558	354,889	257,491
Amount of loan provided to related party								$ 75,000
Repayment of outstanding principal amount						75,000
Residential
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party				200	0	400	0
AAMC
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party				$ 700	$ 0	$ 900	$ 0
Ocwen
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of consolidated revenue				68.00%	60.00%	65.00%	60.00%
Ocwen \| Correspondent One
TRANSACTIONS WITH RELATED PARTIES
Percentage of equity interest sold to the related party	49.00%
Proceeds from sale of equity interest	$ 12,600
Ocwen \| Senior unsecured term loan
TRANSACTIONS WITH RELATED PARTIES
Amount of loan provided to related party			$ 75,000
Repayment of outstanding principal amount		$ 75,000
Interest income						$ 800	$ 0
Ocwen \| Senior unsecured term loan \| Eurodollar Rate
TRANSACTIONS WITH RELATED PARTIES
Reference rate			Eurodollar Rate
Interest rate margin (as a percent)			6.75%
Interest rate, variable interest rate floor (as a percent)			1.50%
Ocwen \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party				$ 600	$ 600	1,800	2,000
Amount billed by related party				$ 700	$ 600	$ 2,100	$ 1,800
Ocwen \| Mortgage Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue				73.00%	68.00%	71.00%	69.00%
Ocwen \| Financial Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue				37.00%		25.00%
Ocwen \| Financial Services \| Maximum
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue					1.00%		1.00%
Ocwen \| Technology Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue				53.00%	39.00%	53.00%	40.00%
Correspondent One
TRANSACTIONS WITH RELATED PARTIES
Revenue earned from related party				$ 0	$ 200	$ 100	$ 200
Correspondent One \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party				0	100		200
Correspondent One \| Maximum \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party						100
HLSS \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party				$ 200	$ 200	$ 500	$ 400

ACQUISITIONS (Details) - Homeward servicing portfolio - USD ($) $ in Thousands		6 Months Ended
	Mar. 29, 2013	Sep. 30, 2013
Acquisitions
Service revenue recorded from the date of acquisition		$ 74,300
Estimated pre-tax income recorded from the date of acquisition		14,200
Ocwen
Acquisitions
Amount paid	$ 75,800
Working capital and net income adjustment		11,100
Reduction in premises and equipment		$ 1,200
Preliminary allocation of the purchase price
Premises and equipment	1,559
Customer relationship	75,609
Assets acquired	77,168
Accounts payable and accrued expenses	(1,351)
Purchase price	$ 75,817
Estimated life (in years)
Customer relationship	7 years
Minimum \| Ocwen
Estimated life (in years)
Premises and equipment	3 years
Maximum \| Ocwen
Estimated life (in years)
Premises and equipment	5 years

ACQUISITIONS (Details 2) - ResCap - USD ($) $ in Millions			3 Months Ended	6 Months Ended
ACQUISITIONS (Details 2) - ResCap - USD ($) $ in Millions	May 10, 2013	Apr. 12, 2013	Jun. 30, 2013	Sep. 30, 2013
Acquisitions
Service revenue recorded from the date of acquisition				$ 28.6
Estimated pre-tax income recorded from the date of acquisition				$ 10.9
Ocwen
Acquisitions
Amount paid	$ 48.8	$ 80.0	$ 128.8
Preliminary allocation of the purchase price
Acquired tangible assets		0.0
Assumed liabilities in connection with the acquisition		0.0
Customer relationship		$ 128.8
Estimated life (in years)
Customer relationship		7 years

ACQUISITIONS (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	May 07, 2013	Dec. 31, 2012
Pro forma condensed consolidated results of operations
Revenue, As reported	$ 210,835	$ 143,988	$ 545,772	$ 427,259
Revenue, Pro forma		180,451	579,263	536,647
Net income attributable to Altisource, As reported	$ 36,008	27,024	94,457	80,334
Net income attributable to Altisource, Pro forma		$ 34,665	$ 101,413	$ 103,313
Earnings per share - diluted (in dollars per share), As reported	$ 1.42	$ 1.08	$ 3.77	$ 3.23
Earnings per share - diluted (in dollars per share), Pro forma		$ 1.39	$ 4.05	$ 4.15
Debt carrying amount	$ 397,497		$ 397,497		$ 400,000	$ 200,000

- Definition

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

ACQUISITIONS (Details 4) - Equator $ in Millions	Aug. 19, 2013 USD ($) item
Acquisitions
Initial consideration	$ 70.0
Number of consecutive 12-month periods for meeting targeted levels of adjusted EBITA \| item	3
Number of months for each consecutive period for meeting targeted levels of adjusted EBITA	12 months
Settlement period of purchase price from closing date	90 days
Maximum
Acquisitions
Aggregate consideration	$ 150.0
Additional consideration	$ 80.0
Initial consideration that can be paid in restricted stock shares (as a percent)	20.00%
Additional consideration that can be paid in restricted stock shares (as a percent)	20.00%

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Accounts receivable, net
Accounts receivable, gross	$ 88,459	$ 92,229
Allowance for doubtful accounts	(4,608)	(3,274)
Total	83,851	88,955
Billed
Accounts receivable, net
Non-related party, Accounts receivable	27,392	25,950
Other receivables	234	353
Accounts receivable, gross	39,509	46,324
Billed \| Ocwen
Accounts receivable, net
Receivable from related party	11,146	19,817
Billed \| Correspondent One
Accounts receivable, net
Receivable from related party		27
Billed \| HLSS
Accounts receivable, net
Receivable from related party	71	163
Billed \| AAMC
Accounts receivable, net
Receivable from related party	595	14
Billed \| Residential
Accounts receivable, net
Receivable from related party	71
Unbilled
Accounts receivable, net
Non-related party, Accounts receivable	40,010	39,496
Unbilled \| Ocwen
Accounts receivable, net
Receivable from related party	$ 8,940	6,377
Unbilled \| Correspondent One
Accounts receivable, net
Receivable from related party		$ 32

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Maintenance agreements, current portion	$ 4,350	$ 3,636
Income taxes receivable	4,256	1,814
Prepaid expenses	4,646	1,640
Other current assets	508	528
Total	$ 13,760	$ 7,618

- Definition

Carrying amount due within one year of the balance sheet date (or one operating cycle, if longer) from tax authorities as of the balance sheet date representing refunds of overpayments or recoveries based on agreed-upon resolutions of disputes.

+ References + Details

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 125,023		$ 125,023		$ 102,247
Less: Accumulated depreciation and amortization	(65,559)		(65,559)		(51,848)
Total	59,464		59,464		50,399
Depreciation and amortization expense, inclusive of capital leases	4,500	$ 3,800	13,791	$ 9,038
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	81,897		81,897		68,329
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	21,849		21,849		15,592
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	6,414		6,414		5,344
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 14,863		$ 14,863		$ 12,982

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

- Definition

The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
GOODWILL AND INTANGIBLE ASSETS, NET
Changes in goodwill	$ 0
Changes in goodwill
Balance at the end of the period	14,915	$ 14,915
Mortgage Services
Changes in goodwill
Balance at the end of the period	10,919	10,919
Financial Services
Changes in goodwill
Balance at the end of the period	2,378	2,378
Technology Services
Changes in goodwill
Balance at the end of the period	$ 1,618	$ 1,618

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

GOODWILL AND INTANGIBLE ASSETS, NET (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Intangible Assets, Net
Gross carrying amount	$ 289,639		$ 289,639		$ 85,280
Accumulated amortization	(47,551)		(47,551)		(28,694)
Net book value	242,088		242,088		56,586
Amortization expense for definite lived intangible assets	8,620	$ 1,201	18,857	$ 3,833
2013	27,600		27,600
2014	46,900		46,900
2015	40,400		40,400
2016	32,500		32,500
2017	26,000		$ 26,000
Trademarks
Intangible Assets, Net
Weighted average estimated useful life			16 years
Gross carrying amount	10,614		$ 10,614		10,614
Accumulated amortization	(4,414)		(4,414)		(4,060)
Net book value	6,200		$ 6,200		6,554
Customer-related intangible assets
Intangible Assets, Net
Weighted average estimated useful life			9 years
Gross carrying amount	242,725		$ 242,725		38,366
Accumulated amortization	(35,520)		(35,520)		(18,567)
Net book value	207,205		$ 207,205		19,799
Operating agreement
Intangible Assets, Net
Weighted average estimated useful life			20 years
Gross carrying amount	35,000		$ 35,000		35,000
Accumulated amortization	(6,417)		(6,417)		(5,104)
Net book value	28,583		$ 28,583		29,896
Non-compete agreement
Intangible Assets, Net
Weighted average estimated useful life			4 years
Gross carrying amount	1,300		$ 1,300		1,300
Accumulated amortization	(1,200)		(1,200)		(963)
Net book value	$ 100		$ 100		$ 337

INVESTMENT IN EQUITY AFFILIATES (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 29, 2013
Investment in equity affiliates
Net loss on investment		$ 54	$ 293	$ 176	$ 872
Correspondent One
Investment in equity affiliates
Ownership percentage						49.00%
Net loss on investment		$ 0	$ 300	$ 100	$ 900
Correspondent One \| Ocwen
Investment in equity affiliates
Percentage of equity interest sold to the related party	49.00%
Proceeds from sale of equity interest	$ 12,600

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33749-111570

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.12)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 9
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 19
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 6
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 11
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

OTHER ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
OTHER ASSETS
Security deposits, net	$ 7,105	$ 5,019
Debt issuance costs, net	6,143	4,260
Maintenance agreements, non-current portion	1,743	1,614
Restricted cash	158	158
Other	94	623
Total	$ 15,243	$ 11,674

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Accounts payable and accrued expenses
Accounts payable	$ 7,818	$ 5,079
Accrued expenses - general	16,903	16,528
Accrued salaries and benefits	23,222	19,613
Income taxes payable	14,774	8,750
Total	66,848	58,976
Ocwen
Accounts payable and accrued expenses
Payable to related party	$ 4,131	8,865
AAMC
Accounts payable and accrued expenses
Payable to related party		$ 141

- Definition

Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all currently due domestic and foreign income tax obligations.

+ References + Details

- Definition

The aggregate obligations owed to related parties other than affiliates, officers or stockholders (for example, owner's immediate families or employee pension trusts) at the financial statement date. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Other current liabilities
Deferred revenue	$ 1,512	$ 2,482
Facility closure cost accrual, current portion	141	138
Book overdrafts	4,601	5,229
Other	3,117	2,574
Total	$ 9,371	$ 10,423

- Definition

Aggregate carrying amount of current liabilities (due within one year or within the normal operating cycle if longer) not separately disclosed in the balance sheet. Includes costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed.

+ References + Details

- Definition

Carrying amount as of the balance sheet date of known and estimated obligations associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, which are expected to be paid in the next twelve months or in the normal operating cycle if longer. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset.

+ References + Details

LONG-TERM DEBT (Details) - USD ($) $ in Thousands			9 Months Ended
LONG-TERM DEBT (Details) - USD ($) $ in Thousands	May 07, 2013	Nov. 27, 2012	Sep. 30, 2013	Dec. 31, 2012
Debt
Senior secured term loan	$ 400,000		$ 397,497	$ 200,000
Less: Unamortized discount, net			(789)	(1,973)
Net long-term debt			396,708	198,027
Less: Current portion			(4,000)	(2,000)
Long-term debt, less current portion			392,708	196,027
Proceeds from issuance of long-term debt			201,000
Payment of legal fees and other costs			2,400
Debt issuance costs, net			$ 6,143	4,260
Senior secured term loan
Debt
Less: Unamortized discount, net		$ (2,000)
Amount borrowed		$ 200,000
Original issue discount (as a percent)		1.00%
Proceeds from issuance of long-term debt		$ 198,000
Aggregate amount of each quarterly scheduled principal installment	1,000
Interest rate at the end of the period (as a percent)			5.75%
Debt issuance costs, net			$ 6,100	4,300
Accumulated amortization			$ 800	$ 100
Senior secured term loan \| Adjusted Eurodollar Rate
Debt
Reference rate			Adjusted Eurodollar Rate
Fixed interest rate base (as a percent)			1.25%
Interest rate margin (as a percent)			4.50%
Senior secured term loan \| Base Rate
Debt
Reference rate			Base Rate
Fixed interest rate base (as a percent)			2.25%
Interest rate margin (as a percent)			3.50%
Incremental Term Loan
Debt
Amount borrowed	200,000
Original issue premium	1,000
Proceeds from issuance of long-term debt	$ 201,000
Quarterly principal installments of loan as a percentage of the initial principal amount	0.25%
Payment of legal fees and other costs	$ 2,400

EQUITY AND SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		41 Months Ended
	Mar. 31, 2012 USD ($)	Sep. 30, 2013 USD ($) $ / shares shares	Sep. 30, 2012 USD ($) shares	Sep. 30, 2013 USD ($) item $ / shares shares	Sep. 30, 2012 USD ($) $ / shares shares	Sep. 30, 2013 USD ($) $ / shares shares	May 07, 2013 USD ($)	Dec. 31, 2012 USD ($) shares	May 31, 2012 shares
Stock Repurchase Plan
Senior secured term loan \| $		$ 397,497		$ 397,497		$ 397,497	$ 400,000	$ 200,000
EQUITY AND SHARE-BASED COMPENSATION
Share-based compensation expense (in dollars) \| $		$ 600	$ 1,100	$ 2,100	$ 2,000
Reversal of share-based compensation expense (in dollars) \| $	$ 800
Outstanding (in shares) \| shares		2,736,530		2,736,530		2,736,530		3,058,309
Stock options granted (in shares) \| shares				75,000	300,000
Weighted average exercise price of stock options granted (in dollars per share)				$ 104.84	$ 69.48
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)				32.59	20.77
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)				$ 32.59	$ 20.77
Intrinsic value of options exercised (in dollars) \| $				$ 24,587	$ 11,535
Fair value of options vested (in dollars) \| $				1,867	$ 1,491
Estimated unrecognized compensation costs (in dollars) \| $		$ 3,000		$ 3,000		$ 3,000
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized				2 years 10 months 24 days
Minimum
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Estimated forfeiture rate (as a percent)		1.00%		1.00%		1.00%
Maximum
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Estimated forfeiture rate (as a percent)		10.00%		10.00%		10.00%
Black-Scholes
Assumptions used to determine the fair value of options as of the grant date
Risk-free interest rate, minimum (as a percent)				1.02%	0.87%
Risk-free interest rate, maximum (as a percent)				1.81%	1.17%
Expected stock price volatility, minimum (as a percent)				36.35%	34.22%
Expected stock price volatility, maximum (as a percent)				36.76%	34.65%
Expected option life				6 years 3 months	6 years 3 months
Black-Scholes \| Minimum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)				$ 31.33	$ 19.25
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)				31.33	19.25
Black-Scholes \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)				49.14	29.80
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)				$ 49.14	$ 29.80
Binomial
Assumptions used to determine the fair value of options as of the grant date
Risk-free interest rate, minimum (as a percent)				0.01%	0.08%
Risk-free interest rate, maximum (as a percent)				2.71%	2.04%
Expected stock price volatility, minimum (as a percent)				36.40%	34.20%
Expected stock price volatility, maximum (as a percent)				36.80%	34.60%
Contractual life				14 years	14 years
Binomial \| Minimum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)				$ 16.12	$ 9.98
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)				16.12	9.98
Binomial \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)				41.72	22.76
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)				$ 41.72	$ 22.76
Stock Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased \| shares		300,000	0	800,000	300,000	3,400,000
Average purchase price per share (in dollars per share)		$ 134.86		$ 103.45	$ 63.25	$ 53.94
Remaining number of shares available for repurchase under the plan \| shares		2,700,000		2,700,000		2,700,000
Amount available to repurchase common stock under Luxembourg law (in dollars) \| $		$ 38,000		$ 38,000		$ 38,000
Capacity available to repurchase common stock under senior secured term loan (in dollars) \| $		$ 107,000		$ 107,000		$ 107,000
2012 Stock Repurchase Program \| Maximum
Stock Repurchase Plan
Number of shares of common stock authorized to be purchased \| shares									3,500,000
Service-based Options
EQUITY AND SHARE-BASED COMPENSATION
Vesting period				4 years
Expiration term				10 years
Outstanding (in shares) \| shares		800,000		800,000		800,000
Market-based Options
EQUITY AND SHARE-BASED COMPENSATION
Outstanding (in shares) \| shares		1,900,000		1,900,000		1,900,000
Number of components of an award \| item				2
Vesting percentage for awards that vest upon achievement of certain criteria				25.00%
Cumulative vesting percentage for awards that vest in equal annual installments				75.00%
Number of equal annual installments for vesting of award \| item				3
Ordinary performance grants
EQUITY AND SHARE-BASED COMPENSATION
Market-based options subject to specified performance achievement (as a percent)				0.67
Ordinary performance grants \| Minimum
EQUITY AND SHARE-BASED COMPENSATION
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				20.00%
Multiplier of stock price over exercise price as a condition for the award to vest \| item				2
Extraordinary performance grants
EQUITY AND SHARE-BASED COMPENSATION
Market-based options subject to specified performance achievement (as a percent)				0.33
Extraordinary performance grants \| Minimum
EQUITY AND SHARE-BASED COMPENSATION
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				25.00%
Multiplier of stock price over exercise price as a condition for the award to vest \| item				3

EQUITY AND SHARE-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Number of Options
Outstanding at the beginning of the period (in shares)	3,058,309
Granted (in shares)	75,000	300,000
Exercised (in shares)	(279,531)
Forfeited (in shares)	(117,248)
Outstanding at the end of the period (in shares)	2,736,530		3,058,309
Exercisable at the end of the period (in shares)	2,216,347
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 17.69
Granted (in dollars per share)	104.84	$ 69.48
Exercised (in dollars per share)	17.12
Forfeited (in dollars per share)	59.49
Outstanding at the end of the period (in dollars per share)	18.34		$ 17.69
Exercisable at the end of the period (in dollars per share)	$ 11.99
Weighted average contractual term
Weighted average contractual term	5 years 4 months 24 days		6 years 1 month 6 days
Exercisable at the end of the period	4 years 10 months 24 days
Aggregate intrinsic value
Aggregate intrinsic value (in dollars)	$ 332,955		$ 211,072
Exercisable at the end of the period (in dollars)	$ 283,735

COST OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
COST OF REVENUE
Compensation and benefits	$ 39,600	$ 28,840	$ 108,923	$ 84,314
Outside fees and services	56,611	31,084	137,851	91,494
Reimbursable expenses	29,496	24,326	73,061	77,846
Technology and telecommunications	5,459	6,900	18,010	17,890
Depreciation and amortization	3,095	3,137	10,350	7,241
Total	$ 134,261	$ 94,287	$ 348,195	$ 278,785

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Compensation and benefits	$ 6,802	$ 5,212	$ 18,868	$ 15,995
Professional services	2,168	2,089	5,184	5,550
Occupancy related costs	7,438	6,641	21,971	19,308
Amortization of intangible assets	8,620	1,201	18,857	3,833
Depreciation and amortization	1,390	701	3,441	1,797
Other	5,101	2,608	11,706	8,002
Total	$ 31,519	$ 18,452	$ 80,027	$ 54,485

- Definition

Amount of net occupancy expense that may include items, such as depreciation of facilities and equipment, lease expenses, property taxes and property and casualty insurance expense.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.14(b))
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.6)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6455398&loc=d3e45280-112737

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 13
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 13
-Paragraph 16
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-BRD
-Paragraph 62
-IssueDate 2006-05-01
-Chapter 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 13
-Paragraph 16
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 13
-Paragraph 16
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
OTHER INCOME (EXPENSE), NET
Loss in equity affiliates	$ (54)	$ (293)	$ (176)	$ (872)
Interest income	14	49	881	75
Other, net	(213)	(13)	(176)	(103)
Other income (expense), net	$ (253)	$ (257)	$ 529	$ (900)

- Definition

+ References

+ Details

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
EARNINGS PER SHARE
Net income attributable to Altisource (in dollars)	$ 36,008	$ 27,024	$ 94,457	$ 80,334
Weighted average common shares outstanding, basic	23,025	23,338	23,185	23,347
Dilutive effect of stock options (in shares)	2,308	1,678	1,885	1,548
Weighted average common shares outstanding, diluted	25,333	25,016	25,070	24,895
Earnings per share
Basic (in dollars per share)	$ 1.56	$ 1.16	$ 4.07	$ 3.44
Diluted (in dollars per share)	$ 1.42	$ 1.08	$ 3.77	$ 3.23
Options \| Maximum
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	100	100	100	100
Options for shares issuable upon achievement of market and performance criteria
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	100	200	100	300

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Sep. 30, 2013	Dec. 31, 2012
Escrow Balances
Amounts held in escrow	$ 56.8	$ 47.2

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($) item	Sep. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)
SEGMENT REPORTING
Number of reportable segments \| item			3
SEGMENT REPORTING
Revenue	$ 210,835	$ 143,988	$ 545,772	$ 427,259
Cost of revenue	134,261	94,287	348,195	278,785
Gross profit	76,574	49,701	197,577	148,474
Selling, general and administrative expenses	31,519	18,452	80,027	54,485
Income from operations	45,055	31,249	117,550	93,989
Other income (expense), net	(6,441)	(267)	(13,773)	(939)
Income before income taxes and non-controlling interests	38,614	30,982	103,777	93,050
Total Assets:
Total Assets	647,754		647,754		$ 429,226
Mortgage Services
SEGMENT REPORTING
Revenue	164,661	115,882	426,319	341,446
Cost of revenue	106,412	72,774	267,859	218,969
Gross profit	58,249	43,108	158,460	122,477
Selling, general and administrative expenses	14,224	6,155	32,272	17,458
Income from operations	44,025	36,953	126,188	105,019
Other income (expense), net	(41)	(290)	(153)	(857)
Income before income taxes and non-controlling interests	43,984	36,663	126,035	104,162
Total Assets:
Total Assets	313,441		313,441		132,924
Financial Services
SEGMENT REPORTING
Revenue	27,267	15,394	66,675	49,649
Cost of revenue	14,998	11,784	40,831	35,780
Gross profit	12,269	3,610	25,844	13,869
Selling, general and administrative expenses	4,616	3,116	11,000	10,550
Income from operations	7,653	494	14,844	3,319
Other income (expense), net		(6)	(8)	(22)
Income before income taxes and non-controlling interests	7,653	488	14,836	3,297
Total Assets:
Total Assets	52,578		52,578		37,782
Technology Services
SEGMENT REPORTING
Revenue	25,175	19,076	70,189	53,984
Cost of revenue	18,569	15,418	55,088	40,098
Gross profit	6,606	3,658	15,101	13,886
Selling, general and administrative expenses	2,621	1,851	7,514	5,519
Income from operations	3,985	1,807	7,587	8,367
Other income (expense), net		(5)	3	(22)
Income before income taxes and non-controlling interests	3,985	1,802	7,590	8,345
Total Assets:
Total Assets	120,059		120,059		64,570
Corporate Items and Eliminations
SEGMENT REPORTING
Revenue	(6,268)	(6,364)	(17,411)	(17,820)
Cost of revenue	(5,718)	(5,689)	(15,583)	(16,062)
Gross profit	(550)	(675)	(1,828)	(1,758)
Selling, general and administrative expenses	10,058	7,330	29,241	20,958
Income from operations	(10,608)	(8,005)	(31,069)	(22,716)
Other income (expense), net	(6,400)	34	(13,615)	(38)
Income before income taxes and non-controlling interests	(17,008)	$ (7,971)	(44,684)	$ (22,754)
Total Assets:
Total Assets	$ 161,676		$ 161,676		$ 193,950