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Document and Entity Information - USD ($)	12 Months Ended
Dec. 31, 2013	Jan. 31, 2014	Jun. 30, 2013
Document and Entity Information
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	0001462418
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,602,571,543
Entity Common Stock, Shares Outstanding		22,628,618
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 130,324	$ 105,502
Accounts receivable, net	101,297	88,955
Prepaid expenses and other current assets	11,389	7,618
Deferred tax assets, net	2,837	1,775
Total current assets	245,847	203,850
Premises and equipment, net	87,252	50,399
Deferred tax assets, net	622	4,073
Intangible assets, net	276,162	56,586
Goodwill	97,375	14,915
Investment in Correspondent One		12,729
Loan to Ocwen		75,000
Other assets	17,580	11,674
Total assets	724,838	429,226
Current liabilities:
Accounts payable and accrued expenses	79,492	58,976
Current portion of long-term debt	3,975	2,000
Current portion of capital lease obligations		233
Deferred revenue	36,742	2,482
Other current liabilities	10,131	7,941
Total current liabilities	130,340	71,632
Long-term debt, less current portion	391,281	196,027
Other non-current liabilities	45,476	1,738
Commitments and contingencies (Note 21)
Equity:
Common stock ($1.00 par value; 100,000 shares authorized; 25,413 issued and 22,629 outstanding as of December 31, 2013; 25,413 issued and 23,427 outstanding as of December 31, 2012)	25,413	25,413
Additional paid-in-capital	89,273	86,873
Retained earnings	239,561	124,127
Treasury stock, at cost (2,784 shares as of December 31, 2013 and 1,986 shares as of December 31, 2012)	(197,548)	(77,954)
Altisource equity	156,699	158,459
Non-controlling interests	1,042	1,370
Total equity	157,741	159,829
Total liabilities and equity	$ 724,838	$ 429,226

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Operations
Revenue	$ 768,357	$ 568,360	$ 423,687
Cost of revenue	492,480	366,201	275,849
Gross profit	275,877	202,159	147,838
Selling, general and administrative expenses	113,810	74,712	62,131
Income from operations	162,067	127,447	85,707
Other income (expense), net:
Interest expense	(20,291)	(1,210)	(85)
Other income (expense), net	557	(1,588)	288
Total other income (expense), net	(19,734)	(2,798)	203
Income before income taxes and non-controlling interests	142,333	124,649	85,910
Income tax provision	(8,540)	(8,738)	(7,943)
Net income	133,793	115,911	77,967
Net income attributable to non-controlling interests	(3,820)	(5,284)	(6,855)
Net income attributable to Altisource	$ 129,973	$ 110,627	$ 71,112
Earnings per share:
Basic (in dollars per share)	$ 5.63	$ 4.74	$ 2.92
Diluted (in dollars per share)	$ 5.19	$ 4.43	$ 2.77
Weighted average shares outstanding:
Basic (in shares)	23,072	23,358	24,373
Diluted (in shares)	25,053	24,962	25,685
Transactions with related parties included above:
Revenue	$ 502,087	$ 338,227	$ 245,262
Selling, general and administrative expenses	2,921	2,430	$ 1,893
Other income	$ 773	$ 86

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, 2010	$ 151,898	$ 25,413	$ 79,297	$ 58,546	$ (14,418)	$ 3,060
Balance (in shares) at Dec. 31, 2010		25,413
Increase (Decrease) in Equity
Net income	77,967			71,112		6,855
Contributions from non-controlling interest holders	49					49
Distributions to non-controlling interest holders	(6,776)					(6,776)
Share-based compensation expense	3,932		3,932
Exercise of stock options	1,024			(3,497)	4,521
Repurchase of shares	(62,151)				(62,151)
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	115,911			110,627		5,284
Contributions from non-controlling interest holders	43					43
Distributions to non-controlling interest holders	(7,145)					(7,145)
Net assets distributed in connection with the Separation of the Residential Asset Businesses	(105,000)			(105,000)
Share-based compensation expense	3,644		3,644
Exercise of stock options	3,214			(7,661)	10,875
Repurchase of shares	(16,781)				(16,781)
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	133,793			129,973		3,820
Contributions from non-controlling interest holders	28					28
Distributions to non-controlling interest holders	(4,176)					(4,176)
Share-based compensation expense	2,400		2,400
Exercise of stock options	6,885			(14,539)	21,424
Repurchase of shares	(141,018)				(141,018)
Balance at Dec. 31, 2013	$ 157,741	$ 25,413	$ 89,273	$ 239,561	$ (197,548)	$ 1,042
Balance (in shares) at Dec. 31, 2013		25,413

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 133,793	$ 115,911	$ 77,967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,056	12,776	8,351
Amortization of intangible assets	28,176	5,030	5,291
Share-based compensation expense	2,400	3,644	3,932
Equity in losses of and impairment loss on investment in affiliate	176	1,741	530
Bad debt expense	2,549	3,049	967
Amortization of debt discount	223	27
Amortization of debt issuance costs	958	57
Deferred income taxes	2,015	2,992	(381)
Loss on sale or disposal of fixed assets	1,309	445
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(5,602)	(39,999)	812
Prepaid expenses and other current assets	(2,817)	(2,616)	747
Other assets	(1,586)	2,172	(4,892)
Accounts payable and accrued expenses	7,381	11,652	14,760
Other current and non-current liabilities	(2,557)	(352)	3,527
Net cash flows provided by operating activities	185,474	116,529	111,611
Cash flows from investing activities:
Additions to premises and equipment	(34,134)	(35,563)	(16,442)
Acquisition of businesses, net of cash acquired	(267,946)		(2,515)
Investment in equity affiliate	(50)		(15,000)
Proceeds from sale of equity affiliate	12,648
Proceeds from loan to Ocwen	75,000
Loan to Ocwen		(75,000)
Change in restricted cash	(1,462)		887
Net cash flows used in investing activities	(215,944)	(110,563)	(33,070)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	200,502	198,000
Repayment of long-term debt	(3,496)
Distribution of cash in connection with the Separation of the Residential Asset Businesses		(105,000)
Debt issuance costs	(3,200)	(4,317)
Principal payments on capital lease obligations	(233)	(603)	(696)
Proceeds from stock option exercises	6,885	3,214	1,024
Purchases of treasury stock	(141,018)	(16,781)	(62,151)
Contributions from non-controlling interests	28	43	49
Distributions to non-controlling interests	(4,176)	(7,145)	(6,776)
Net cash flows provided by (used in) financing activities	55,292	67,411	(68,550)
Net increase in cash and cash equivalents	24,822	73,377	9,991
Cash and cash equivalents at the beginning of the period	105,502	32,125	22,134
Cash and cash equivalents at the end of the period	130,324	105,502	32,125
Supplemental cash flow information:
Interest paid	19,325	1,134	83
Income taxes paid (refunded), net	3,671	4,912	(1,956)
Non-cash investing and financing activities:
Amortization of tax-deductible goodwill		3,334	$ 3,367
Premises and equipment purchased on account	$ 4,552	$ 2,457

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting — The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation — The financial statements include the accounts of the Company, its wholly-owned subsidiaries and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated.

The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource, serves as the manager of Best Partners Mortgage Cooperative, Inc. (“BPMC”) doing business as Lenders One Mortgage Cooperative (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025. MPA acts on behalf of Lenders One and its members principally to provide its members with education and training along with revenue enhancing, cost reducing and market share expanding opportunities. For providing these services, MPA receives payments from Lenders One, and in some instances the vendors, based upon the benefits achieved for the members. The management agreement provides MPA with broad powers such as recruiting members for Lenders One, collection of fees and other obligations from members of Lenders One, processing of all rebates owed to Lenders One, day-to-day operation of Lenders One and negotiation of contracts with vendors including signing contracts on behalf of 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 consolidated financial statements on a consolidated basis with the interests of the members reflected as non-controlling interests. At December 31, 2013, Lenders One had total assets of $4.6 million and liabilities of $3.5 million. At December 31, 2012, Lenders One had total assets of $2.3 million and liabilities of $1.0 million.

Use of Estimates — The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining share-based compensation, income taxes, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives of fixed assets and contingencies. Actual results could differ materially from those estimates.

Cash and Cash Equivalents — We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents.

Accounts Receivable, Net — Accounts receivable are net of an allowance for doubtful accounts that represents an amount that we estimate to be uncollectible. We have estimated the allowance for doubtful accounts based on our historical write-offs, our analysis of past due accounts based on the contractual terms of the receivables and our assessment of the economic status of our customers, if known. The carrying value of accounts receivable, net, approximates fair value.

Premises and Equipment, Net — We report premises and equipment, net at cost or estimated fair value at acquisition and depreciate these assets over their estimated useful lives using the straight-line method as follows:

	Furniture and fixtures		5 years
	Office equipment		5 years
	Computer hardware		5 years
	Computer software		3-7 years
	Leasehold improvements		Shorter of useful life, 10 years or the term of the lease

Maintenance and repair costs are expensed as incurred. We capitalize expenditures for significant improvements and new equipment and depreciate the assets over the shorter of the capitalized asset’s life or the life of the lease.

We review premises and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. We measure recoverability of assets to be held and used by comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge for the amount that the carrying value of the assets exceeds the fair value of the asset or asset group.

Computer software includes the fair value of software acquired in business combinations and purchased software. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life. Software acquired in business combinations is recorded at its fair value and amortized using the straight-line method over its estimated useful life, ranging from two to three years.

Business Combinations — We account for acquisitions using the purchase method of accounting in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of an acquisition is allocated to the assets acquired and liabilities assumed using the fair values as of the acquisition date.

Investment in Equity Affiliates — We utilize the equity method to account for investments in equity securities where we have the ability to exercise significant influence over operating and financial policies of the investee. We include a proportionate share of losses of equity method investees in equity losses of affiliates, net which is included in other income (expense), net in the consolidated statements of operations. We review investments in equity affiliates for an other than temporary impairment whenever events or circumstances indicate that the carrying value is greater than the value of the investment and the loss is other than a temporary decline.

Goodwill — Goodwill represents the excess cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative two-step goodwill impairment test. Only if we determine, based on our qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will we calculate the fair value of the reporting unit. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our estimate of future sales and operating expenses, based primarily on estimated pricing, sales volumes, market segment share, cost trends and general economic conditions.

We conduct our annual impairment assessment as of November 30 each year. No impairments of goodwill were recorded for the years ended December 31, 2013, 2012 and 2011.

Intangible Assets, Net — Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any arrangements, the history of the asset, our long-term strategy for use of the asset and other economic factors. We amortize intangible assets that we deem to have definite lives on a straight-line basis over their useful lives, generally ranging from 5 to 20 years.

We perform tests for impairment if conditions exist that indicate the carrying value may not be recoverable. When facts and circumstances indicate that the carrying value of intangible assets determined to have definite lives may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of cash flows of discrete intangible assets consistent with models utilized for internal planning purposes. If the sum of the undiscounted expected future cash flows is less than the carrying value, we would recognize an impairment to the extent the carrying amount exceeds fair value. Based on the fourth quarter 2013, 2012 and 2011 cash flow analyses prepared by management for certain of the intangible assets, no impairments of intangible assets were recorded for the years ended December 31, 2013, 2012 and 2011.

Debt Issuance Costs — Debt issuance costs are capitalized and amortized to interest expense through maturity of the related debt using the effective interest method.

Long-Term Debt — Long-term debt is reported net of applicable discount. The debt discount is amortized to interest expense through maturity of the related debt using the effective interest method.

Fair Value Measurements — Our financial assets and liabilities primarily include cash and cash equivalents, restricted cash, long-term debt and acquisition-related contingent consideration. 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 ASC Topic 820, Fair Value Measurement, using quoted prices in active markets for identical assets. The carrying amount of 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. The carrying amount of acquisition-related contingent consideration, related to the acquisition of Equator, LLC (“Equator”) on November 15, 2013 (see Note 5), approximates fair value due to the recent closing of the transaction and purchase price allocation calculations. The fair value was determined by level 3 of the three level hierarchy in ASC Topic 820 using unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company may be required to pay up to $80 million in potential additional consideration under the terms of the Equator Purchase and Sale Agreement based on Equator Adjusted EBITA (as defined in the Purchase and Sale Agreement) in the three consecutive 12-month periods following closing. Acquisition-related contingent consideration was initially measured and recorded at fair value as an element of consideration paid in connection with an acquisition, with any subsequent adjustments recognized in operating expenses in the consolidated statements of operations. The Company determines the fair value of acquisition-related contingent consideration, and any subsequent changes in fair value, using a discounted probability-weighted approach. This approach takes into consideration level 3 unobservable inputs including probability assessments of expected future cash flows over the period in which the obligation is expected to be settled and applies a discount factor that captures the uncertainties associated with the obligation. Changes in these unobservable inputs could significantly impact the fair value of the liabilities recorded in the accompanying consolidated balance sheets and operating expenses in the consolidated statements of operations. As of December 31, 2013, the Company estimates the value of the Equator acquisition-related contingent consideration required payments to be $46.0 million.

Functional Currency — The currency of the primary economic environment in which our operations are conducted is the United States dollar. Therefore, the United States dollar has been determined to be our functional and reporting currency. Non-United States dollar transactions and balances have been measured in United States dollars in accordance with ASC Topic 830, Foreign Currency Matters. All transaction gains and losses from the measurement of monetary balance sheet items denominated in non-United States dollar currencies are reflected in the statement of operations as income or expenses, as appropriate.

Defined Contribution 401(k) Plan — Some of our employees currently participate in a defined contribution 401(k) plan under which we may make matching contributions equal to a discretionary percentage determined by us. We recorded expense of $0.4 million, $0.2 million and $0.1 million for the years ended December 31, 2013, 2012 and 2011, respectively, related to our discretionary amounts contributed.

Share-Based Compensation — Share-based compensation is accounted for under the provisions of ASC Topic 718, Compensation — Stock Compensation. Under ASC Topic 718, the cost of employee services received in exchange for an award of equity instruments is generally measured based on the grant-date fair value of the award. Share-based awards that do not require future service are expensed immediately. Share-based employee awards that require future service are recognized over the relevant service period. Further, as required under ASC Topic 718, we estimate forfeitures for share-based awards that are not expected to vest.

Earnings Per Share — We compute earnings per share (“EPS”) in accordance with ASC Topic 260, Earnings Per Share. Basic net income per share is computed by dividing net income attributable to Altisource by the weighted average number of shares of common stock outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities.

Revenue Recognition — We recognize revenue from the services we provide in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Generally, the contract terms for these services are relatively short in duration, and we recognize revenue as the services are performed either on a per unit or a fixed price basis. Specific policies for each of our reportable segments are as follows:

Mortgage Services: We recognize revenue for the majority of the services we provide in this segment on completion of the service to our customers. For default processing services and certain property preservation services, we recognize revenue over the period during which we perform the related services, with full recognition on completion of the related foreclosure filing or on closing of the related real estate transaction. We record revenue associated with real estate sales on a net basis as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage. Reimbursable expenses of $102.0 million, $95.6 million and $80.1 million incurred for the years ended December 31, 2013, 2012 and 2011, respectively, are included in revenue with an equal offsetting expense included in cost of revenue primarily related to our property preservation and default processing services. These amounts are recognized on a gross basis, principally because we have complete control over selection of vendors and the vendor relationship is with us, rather than with our customers.

Financial Services: We generally earn our fees for asset recovery management services as a percentage of the amount we collect on delinquent consumer receivables and charged-off mortgages on behalf of our clients and recognize revenue upon collection from the debtors. We also earn fees for packaging and selling charged-off mortgages and recognize revenue after the sale of the notes and once the risks and rewards of the mortgage notes are transferred to the purchasers. In addition, we provide customer relationship management services for which we earn and recognize revenue on a per-call, per-person or per-minute basis as the related services are performed.

Technology Services: For our REALSuite platform, we charge based on the number of our clients’ loans processed on the system or on a per-transaction basis. We record transactional revenue when the service is provided and other revenue monthly based on the number of loans processed, employees serviced or services provided. Furthermore, we provide information technology (“IT”) infrastructure services to Ocwen Financial Corporation (“Ocwen”) and its subsidiaries, Home Loan Servicing Solutions, Ltd. (“HLSS”), Altisource Residential Corporation (“Residential”) and Altisource Asset Management Corporation (“AAMC”) and charge for these services primarily based on the number of employees that are using the applicable systems and the number and type of licensed products used by Ocwen and its subsidiaries, HLSS, Residential and AAMC. We record revenue associated with implementation services upon completion and maintenance ratably over the related service period.

For Equator’s software applications, we recognize revenue from arrangements with multiple deliverables in accordance with ASC Subtopic 605-25, Revenue Recognition: Multiple-Element Arrangements (“ASC 605-25”), and Securities and Exchange Commission Staff Accounting Bulletin Topic 13, Revenue Recognition (“SAB Topic 13”). ASC 605-25 and SAB Topic 13 require each deliverable within a multiple-deliverable revenue arrangement to be accounted for as a separate unit if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the seller’s control. Deliverables not meeting the criteria for accounting treatment as a separate unit are combined with a deliverable that meets that criterion. Equator derives its revenue from platform services fees, professional services fees and other services. Equator does not begin to recognize revenue for platform services fees until these fees become billable, as the services fees are not fixed and determinable until such time. Platform services fees are recognized ratably over the shorter of the term of the contract with the customer or the minimum cancellation period. Professional services fees consist primarily of configuration services related to customizing the platform for individual customers and are generally billed as the hours are worked. Due to the essential and specialized nature of the configuration services, these services do not qualify as separate units of accounting separate from the platform services as the delivered services do not have value to the customer on a standalone basis. Therefore, the related fees are recorded as deferred revenue until the project configuration is complete and then recognized ratably over the longer of the term of the agreement or the estimated expected customer life. Other services consist primarily of training, including agent certification, and consulting services. These services are generally sold separately and are recognized as revenue as the services are performed and earned.

Income Taxes — We account for certain income and expense items differently for financial purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. The most significant temporary differences relate to accrued compensation, amortization and loss and credit carryforwards. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we anticipate recovery or settlement of those temporary differences. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred assets will not be realized.

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions including evaluating uncertainties under ASC Topic 740, Income Taxes.

Adoption of New Accounting Pronouncement

Effective January 1, 2012, the Company adopted new guidance on goodwill impairment testing that simplifies how an entity tests goodwill for impairment. This new guidance allows an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it needs to perform the quantitative two-step goodwill impairment test. Only if an entity determines, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will it be required to calculate the fair value of the reporting unit. The qualitative assessment is optional and the Company is permitted to bypass it for any reporting unit in any period and begin its impairment analysis with the quantitative calculation. In 2013, the Company determined that, based upon the qualitative assessment, the fair value of its reporting units’ goodwill was not less than the carrying values. The Company is permitted to perform the qualitative assessment in any subsequent period.

Future Adoption of New Accounting Pronouncement

In July 2013, the Financial Accounting Standards Board issued guidance on the disclosure requirements for unrecognized tax benefits, or a portion of an unrecognized tax benefit. This new guidance requires the Company to present an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with some exceptions. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not anticipate a material impact on our consolidated financial statements as a result of this guidance.

TRANSACTIONS WITH RELATED PARTIES

12 Months Ended

Dec. 31, 2013

TRANSACTIONS WITH RELATED PARTIES

TRANSACTIONS WITH RELATED PARTIES

4. TRANSACTIONS WITH RELATED PARTIES

Ocwen

Ocwen, together with its subsidiaries, 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 5), 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 its subsidiaries and revenue earned from the loans serviced by Ocwen and its subsidiaries when Ocwen designates us as the service provider. We earn additional revenue on the portfolios serviced by Ocwen and its subsidiaries that are not considered related party revenue when a party other than Ocwen selects Altisource as the service provider. Related party revenue as a percentage of segment and consolidated revenue was as follows for the years ended December 31:

	2013	2012	2011

Mortgage Services	71%	68%	72%
Financial Services	30%	< 1%	< 1%
Technology Services	49%	42%	39%
Consolidated revenue	65%	60%	58%

We record revenue we earn from Ocwen and its subsidiaries 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 and its subsidiaries. These services include such areas as human resources, vendor management, corporate services, operational effectiveness, quality assurance, quantitative analytics and treasury. Payment for the services provided is based on the fully-allocated cost of providing the service based on an estimate of the time and expense of providing the service. For the years ended December 31, 2013, 2012 and 2011, we billed Ocwen and its subsidiaries $2.6 million, $2.7 million and $2.6 million, respectively, and Ocwen and its subsidiaries billed us $2.9 million, $2.4 million and $1.9 million, respectively, for services provided under these agreements. These amounts are reflected as a component of selling, general and administrative expenses in the 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 and $0.1 million for the years ended December 31, 2013 and 2012, respectively (no comparative amount for 2011).

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 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 5). 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 5).

Correspondent One® and HLSS™

In July 2011, we acquired an equity interest in Correspondent One S.A. (“Correspondent One”) (see Note 10). 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 years ended December 31, 2013, 2012 and 2011, we billed Correspondent One less than $0.1 million, $0.4 million and $0.1 million, respectively. We also provided certain origination related services to Correspondent One. We earned revenue of $0.1 million and $0.3 million for the years ended December 31, 2013 and 2012, respectively, for these services (no comparative amount in 2011).

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 years ended December 31, 2013 and 2012, we billed HLSS $0.7 million and $0.6 million, respectively (no comparative amount in 2011).

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

Residential and AAMC

Residential and AAMC were established, capitalized and their equity was distributed to our shareholders on December 21, 2012 and are each separate publicly traded companies. 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 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 year ended December 31, 2013, we billed Residential $2.6 million, and we billed AAMC less than $0.1 million, under these agreements (no comparative amounts in 2012 and 2011).

- 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.

+ References + Details

ACQUISITIONS

12 Months Ended

Dec. 31, 2013

ACQUISITIONS

ACQUISITIONS

5. 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 our service agreements with Ocwen were amended to extend the term from 2020 to 2025 (see Note 4). 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 December 31, 2013, we recorded service revenue of $108.8 million and we estimate pre-tax income is $24.3 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 & 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 December 31, 2013, we recorded service revenue of $59.4 million and we estimate pre-tax income is $19.9 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.

Management prepared a final purchase price allocation and assigned associated asset lives based upon available information at the time of the agreement and through the date of filing. 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.

Equator Acquisition

On November 15, 2013, we completed the acquisition of all of the outstanding limited liability company interests of Equator pursuant to the previously reported Purchase and Sale Agreement dated as of August 19, 2013 (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, we paid $63.4 million at closing in cash (net of closing working capital adjustments), subject to certain post-closing adjustments based on current assets and current liabilities of Equator at closing, to be settled within 90 days of the closing date. Additionally, the Purchase Agreement provides for the payment of up to $80 million in potential additional consideration (the “Earn Out”). The Earn Out consideration is determined based on Equator Adjusted EBITA (as defined in the Purchase Agreement) in the three consecutive 12-month periods following closing. Up to $22.5 million of the Earn Out consideration can be earned in each of the first two 12-month periods, and up to $35.0 million can be earned in the third 12-month period.

Any amounts earned upon the achievement of Adjusted EBITA thresholds are payable through 2017. We may, in our discretion, pay up to 20% of each payment of any Earn Out consideration in shares of Company restricted stock, with the balance to be paid in cash. From the acquisition date through December 31, 2013, we recorded service revenue of $7.5 million, and pre-tax loss is $1.0 million.

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

(in thousands)

Accounts receivable	$	9,293
Prepaid expenses and other current assets	954
Premises and equipment	16,974
Customer relationships and trade names	43,393
Goodwill	82,460
Other non-current assets	242
Assets acquired	153,316
Accounts payable and accrued expenses	(7,232		)
Deferred revenue	(36,689		)
Liabilities assumed	(43,921		)

Purchase price	$	109,395

The Equator purchase price includes the fair value of the Earn Out of $46.0 million, determined based on the present value of future estimated Earn Out payments.

		Estimated life (in years)

Premises and equipment (excluding internally developed software)		3 - 5
Internally developed software (included in premises and equipment)		7
Customer relationships		7 - 15
Trade names		4

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

	Year ended December 31, 2013
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	768,357	$	854,098
Net income attributable to Altisource	129,973		132,907
Earnings per share — diluted	5.19		5.31

	Year ended December 31, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	568,360	$	781,834
Net income attributable to Altisource	110,627		129,229
Earnings per share — diluted	4.43		5.18

The unaudited pro forma information presents the combined operating results of Altisource and the Homeward, ResCap Business and Equator transactions. The Homeward, ResCap Business and Equator 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, and Amendment No. 2 to the senior secured term loan agreement dated as of December 9, 2013 used in the Homeward, ResCap Business and Equator 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.

- 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
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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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 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2013

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET

6. ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consists of the following as of December 31:

(in thousands)	2013			2012

Billed
Non-related parties	$	39,588		$	25,950
Ocwen	11,410			19,817
Correspondent One	—			27
HLSS	83			163
AAMC	1,347			14
Residential	547			—
Other receivables	1,642			353
	54,617			46,324
Unbilled
Non-related parties	42,284			39,496
Ocwen	10,027			6,377
Correspondent One	—			32
	106,928			92,229
Allowance for doubtful accounts	(5,631		)	(3,274		)

Total	$	101,297		$	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.

A summary of the allowance for doubtful accounts, net of recoveries, for the years ended December 31, 2013, 2012 and 2011 is as follows:

	(in thousands)

Balance, January 1, 2011	$	2,132
Bad debt expense	967
Recoveries	(54		)
Write-offs	(998		)
Balance, December 31, 2011		2,047
Bad debt expense	3,049
Recoveries	(21		)
Write-offs	(1,801		)
Balance, December 31, 2012		3,274
Bad debt expense	2,549
Recoveries	(21		)
Write-offs	(171		)

Balance, December 31, 2013	$	5,631

GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2013

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

9. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Goodwill primarily relates to the acquisitions of Equator, MPA, Springhouse, LLC and Tracmail. Changes in goodwill during the years ended December 31, 2013 and 2012 are summarized below:

	Mortgage		Financial		Technology
(in thousands)	Services		Services		Services		Total

Balance, January 1, 2012 and December 31, 2012	$	10,919	$	2,378	$	1,618	$	14,915
Acquisition of Equator	—		—		82,460		82,460

Balance, December 31, 2013	$	10,919	$	2,378	$	84,078	$	97,375

Intangible Assets, Net

Intangible assets relate to our acquisitions of the Homeward and ResCap fee-based businesses, Equator, MPA and Nationwide Credit, Inc. (“NCI”) (see Note 5). No impairment charges were taken during the periods presented.

Intangible assets, net consist of the following as of December 31, 2013 and 2012:

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

Definite lived intangible assets
Trademarks	14	$	12,249	$	10,614	$	(4,534	)	$	(4,060	)	$	7,715	$	6,554
Customer-related intangible assets	10	284,484		38,366		(44,208		)	(18,567		)(a)	240,276		19,799
Operating agreement	20	35,000		35,000		(6,854		)	(5,104		)	28,146		29,896
Non-compete agreement	4	1,300		1,300		(1,275		)	(963		)	25		337

Total		$	333,033	$	85,280	$	(56,871	)	$	(28,694	)	$	276,162	$	56,586

(a) Prior to our acquisition of NCI in 2007, NCI completed an acquisition which created tax-deductible goodwill that amortizes for tax purposes over time. When we acquired NCI in 2007, we recorded a lesser amount of goodwill for financial reporting purposes than what had previously been recorded at NCI for tax purposes. This difference between the amount of goodwill recorded for financial reporting purposes and the amount recorded for taxes is referred to as “Component 2” goodwill and resulted in our recording periodic reductions first to our book goodwill balance in our consolidated financial statements. As our book goodwill balance was fully written off at December 31, 2010, we continued to amortize the remaining Component 2 goodwill for United States tax purposes by reducing certain intangible assets by the remaining tax benefits of the Component 2 goodwill as they are realized in our tax returns. The reduction in intangible assets was $3.3 million and $3.4 million for the years ended December 31, 2012 and 2011, respectively. Component 2 goodwill was fully amortized in 2012.

Amortization expense for definite lived intangible assets was $28.2 million, $5.0 million and $5.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. Expected annual amortization for 2014 through 2018, is $44.2 million, $40.3 million, $34.4 million, $29.1 million and $24.0 million, respectively.

- 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

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2013

LONG-TERM DEBT

LONG-TERM DEBT

13. LONG-TERM DEBT

Long-term debt consists of the following as of December 31:

(in thousands)	2013			2012

Senior secured term loan	$	396,503		$	200,000
Less: unamortized discount, net	(1,247		)	(1,973		)
Net long-term debt	395,256			198,027
Less: current portion	(3,975		)	(2,000		)

Long-term debt, less current portion	$	391,281		$	196,027

On November 27, 2012, we entered into a senior secured term loan agreement, as subsequently amended, 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 of $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”).

The Initial Proceeds were used to capitalize Residential and AAMC (see Note 3), and also to pay certain fees, commissions and expenses in connection with the senior secured term loan agreement. The Initial Proceeds were also used for general corporate purposes, including acquisitions and investments permitted under the senior secured term loan agreement.

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 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 5), with the remainder to be used for stock repurchases and for general corporate purposes, including additional acquisitions. The Incremental Term Loan was also used to pay certain fees, commissions and expenses in connection with the Incremental Term Loan. The Company paid costs associated with the Incremental Term Loan of $2.4 million, which were recorded as debt issuance costs in other assets in the accompanying consolidated balance sheets.

Additionally, the Incremental Term Loan amended the senior secured term loan agreement to, among other changes, provide for an additional $200 million incremental term loan facility accordion borrowings 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.

On December 9, 2013, we entered into an Amendment No. 2 (“Second Amendment”) to the senior secured term loan agreement in which we incurred indebtedness in the form of Refinancing Debt (as defined in the senior secured term loan agreement), the proceeds of which were used to refinance, in full, the $397.5 million of term loans outstanding under the senior secured term loan agreement immediately prior to the effectiveness of the Second Amendment. The Refinancing Debt bears interest at lower rates and has a maturity date approximately one year later than the prior term loans. The Second Amendment further modified the senior secured term loan agreement to, among other changes, increase the maximum permitted amount of Restricted Junior Payments (as defined in the senior secured term loan agreement), including share repurchases by the Company.

The refinanced term loans under the senior secured term loan agreement must be repaid in equal consecutive quarterly principal installments of $1.0 million commencing on December 31, 2013, with the balance due at maturity. After giving effect to the Second Amendment, all amounts outstanding under the senior secured term loan agreement will become due on the earlier of (i) December 9, 2020, being the seventh anniversary of the closing date of the Second Amendment and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the senior secured term loan agreement) upon the occurrence of any event of default under the senior secured term loan agreement.

In addition to the scheduled principal payments, the Refinanced Debt is (with certain exceptions) subject to mandatory prepayment upon issuances of debt, casualty and condemnation events and sales of assets, as well as from a percentage of excess cash flow (as defined in the senior secured term loan agreement) if the leverage ratio (as defined in the senior secured term loan agreement) is greater than 2.75 to 1.00. No mandatory prepayments were owed for the year ended December 31, 2013. We are permitted to make voluntary prepayments without penalty after June 9, 2014. If prepayments are made prior to June 9, 2014, a fee of 1.0% of the principal amount of the prepaid term loans will be incurred.

After giving effect to the Second Amendment, all of the term loans outstanding under the senior secured term loan 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). Adjusted 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) 1.00% plus (ii) a 3.50% 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) 2.00% plus (ii) a 2.50% margin. The interest rate at December 31, 2013 was 4.50%.

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.

The senior secured term loan agreement includes covenants that restrict or limit, among other things, our ability to: create liens and encumbrances; incur additional indebtedness; sell, transfer or dispose of assets; change lines of business; amend material debt agreements or other material contracts; engage in certain transactions with affiliates; enter into sale/leaseback transactions; grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions; make changes to its fiscal year and engage in mergers and consolidations.

The senior secured term loan agreement contains certain events of default, including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the senior secured term loan agreement within 5 days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of covenants, (iv) failure to pay principal or interest on any other debt that equals or exceeds $40.0 million when due, (v) default on any other debt that equals or exceeds $40.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) occurrence of a Change in Control (as defined in the senior secured term loan agreement), (vii) bankruptcy and insolvency events (as defined in the senior secured term loan agreement), (viii) entry by a court of one or more judgments against us (as defined in the senior secured term loan agreement) in an amount in excess of $40.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events and (x) the failure of certain Loan Documents (as defined in the senior secured term loan agreement) to be in full force and effect. If any event of default occurs and is not cured within applicable grace periods set forth in the senior secured term loan agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated.

At December 31, 2013, debt issuance costs were $6.7 million, net of $1.0 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 consolidated balance sheets.

Interest expense on the term loans, including amortization of debt issuance costs and the net debt discount, totaled $20.3 million and $1.2 million for the years ended December 31, 2013 and 2012, respectively (no comparative amount in 2011).

Maturities of our long-term debt are as follows:

(in thousands)

2014	$	3,975
2015	3,975
2016	3,975
2017	3,975
2018	3,975
Thereafter	376,628
	396,503
Less: current portion	(3,975		)

	$	392,528

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2013

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

15. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common Stock

Our Board of Directors has the power to issue shares of authorized but unissued common stock without further shareholder action subject to the requirements of applicable laws and stock exchanges. At December 31, 2013, we had 100.0 million shares authorized. At December 31, 2013, we had 22.6 million shares of common stock outstanding. The holders of shares of Altisource common stock are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares will possess all voting power.

Stock Repurchase Plan

In May 2012, our shareholders approved a new 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 December 31, 2013, we have purchased approximately 3.7 million shares of our common stock in the open market at an average price of $63.04 per share. We purchased 1.2 million shares of common stock at an average price of $116.99 per share during the year ended December 31, 2013 and 0.3 million shares at an average price of $63.25 per share during the year ended December 31, 2012. As of December 31, 2013, approximately 2.3 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 December 31, 2013, approximately $14 million was available to repurchase our common stock under Luxembourg law. Our senior secured term loan also limits the amount we can spend on share repurchases in any year and may prevent repurchases in certain circumstances. As of December 31, 2013, approximately $55 million was available to repurchase our common stock under our senior secured term loan.

Equity Incentive Plan

Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares and other awards, or a combination of any of the above. Under the Plan, we may grant up to 6.7 million Altisource share-based awards to officers, directors, key employees and to employees of our affiliates. As of December 31, 2013, 2.5 million share-based awards were available for future grant under the Plan. The shares will be issued from authorized and unissued shares of our common stock. Expired and forfeited awards are available for reissuance. Vesting and exercise of share-based awards are generally contingent on continued employment.

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 $2.4 million, $3.6 million and $3.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. The amount for the year ended December 31, 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 December 31, 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 1.8 million market-based awards were outstanding at December 31, 2013.

The Company granted less than 0.1 million stock options (at a weighted average exercise price of $104.84 per share), 0.3 million stock options (at a weighted average exercise price of $69.48 per share) and 0.2 million stock options (at a weighted average exercise price of $33.15 per share) during the years ended December 31, 2013, 2012 and 2011, 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:

	2013		2012		2011
	Black-Scholes	Binomial	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	1.69 — 1.93	0.04 — 3.03
Expected stock price volatility (%)	36.35 — 36.76	36.40 — 36.80	34.22 — 34.65	34.20 — 34.60	48.00	55.70 — 55.80
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years)	6.25	—	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14	—	14

Fair value	$31.33 — $49.14	$16.12 — $41.72	$19.25 — $29.80	$9.98 — $22.76	$16.33 — $17.85	$16.91 — $20.39

The following table summarizes the weighted-average fair value of stock options granted and the total intrinsic value of stock options exercised for the years ended December 31:

		2013		2012		2011

Weighted average fair value at date of grant		$	32.59	$	20.77	$	17.66
Intrinsic value of options exercised	(in thousands)	40,761		17,598		4,966
Fair value of options vested	(in thousands)	3,156		2,790		3,536

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

As of December 31, 2013, estimated unrecognized compensation costs related to share-based payments amounted to $2.5 million which we expect to recognize over a weighted average remaining requisite service period of approximately 2.9 years.

The following table summarizes activity of 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	6.11	$	211,072
Granted	75,000		104.84
Exercised	(401,718	)	16.48
Forfeited	(142,248	)	55.35

Outstanding at December 31, 2013	2,589,343		18.33		5.20	363,293

Exercisable at December 31, 2013	2,194,755		12.68		4.79	320,326

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

	Options outstanding				Options exercisable
Exercise price range	Number	Weighted average remaining contractual life	Weighted average exercise price		Number	Weighted average remaining contractual life	Weighted average exercise price

$0.00 — $10.00(a)	1,700,112	4.49	$	9.14	1,700,112	4.49	$	9.14
$10.01 — $20.00(a)	97,737	2.80	12.45		97,737	2.80	12.45
$20.01 — $30.00(a)	502,686	6.30	23.07		328,625	6.31	23.15
$30.01 — $40.00(a)	61,058	6.98	33.54		23,874	7.30	33.44
$50.01 — $60.00(a)	10,000	8.37	53.00		3,750	8.37	53.00
$60.01 — $70.00(a)	142,750	8.19	60.67		40,657	8.19	60.67
$80.01 — $90.00(a)	15,000	9.12	83.86		—	—	—
$90.01 — $100.00(a)	30,000	9.21	94.19		—	—	—
$120.01 — $130.00(a)	30,000	9.62	125.98		—	—	—

	2,589,343				2,194,755

(a) These options contain market-based components as described above. All other options are time-based awards.

The following table summarizes the market prices necessary in order for the market performance options to begin to vest:

	Market-based options
Vesting price	Ordinary performance		Extraordinary performance

$160.01 — $170.00	7,500		—
Over $170.00	22,500		52,125

	30,000		52,125

Weighted average share price	$	107.27	$	74.08

INCOME TAXES

12 Months Ended

Dec. 31, 2013

INCOME TAXES

INCOME TAXES

19. INCOME TAXES

The income tax provision consists of the following for the years ended December 31:

(in thousands)	2013			2012			2011

Current:
Domestic - Luxembourg	$	2,516		$	2,841		$	2,300
Foreign - U.S. Federal	6			—			—
Foreign - U.S. State	403			353			119
Foreign - Non U.S.	3,600			2,552			2,891

	$	6,525		$	5,746		$	5,310
Deferred:
Domestic - Luxembourg	$	—		$	388		$	(387	)
Foreign - U.S. Federal	2,506			2,419			3,216
Foreign - U.S. State	84			(23		)	(22		)
Foreign - Non U.S.	(575		)	208			(174		)
	2,015			2,992			2,633

Total	$	8,540		$	8,738		$	7,943

We received a favorable ruling in June 2010 regarding the treatment of certain intangibles that exist for purposes of determining the Company’s taxable income. This ruling does not have a material impact on our deferred tax assets or liabilities. Income tax computed by applying the Luxembourg statutory income tax rate of 29.22% differs from income tax computed at the effective tax rate primarily because of the effect of the favorable tax ruling, differing tax rates in multiple jurisdictions, changes in valuation allowance and minority interest.

We operate under tax holidays in certain geographies in India and the Philippines. The India tax holidays are effective through 2020, and may be extended if certain additional requirements are satisfied. The Philippines tax holiday is effective through 2016, and may also be extended. The tax holidays are conditional upon our meeting certain employment and investment thresholds. The impact of these tax holidays decreased foreign taxes by $0.2 million ($0.01 per diluted share), $1.5 million ($0.06 per diluted share), and $0.6 million ($0.02 per diluted share) for the years ended December 31, 2013, 2012 and 2011, respectively. The Philippines tax holiday commenced in 2013 and had no impact on taxes for the year ended December 31, 2013.

The Company accounts for certain income and expense items differently for financial purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences.

A summary of the tax effects of the temporary differences is as follows for the years ended December 31:

(in thousands)	2013			2012

Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$	43		$	40
Accrued expenses	3,183			1,940
Current deferred tax liabilities:
Prepaid expenses	(389		)	(205		)

Current deferred tax assets, net	$	2,837		$	1,775

Non-current deferred tax assets:
Net operating loss carryforwards	$	12,439		$	14,342
Non-U.S. deferred tax assets	1,471			895
Share-based compensation	784			956
Other	7			7
Non-current deferred tax liabilities:
Intangible assets	(6,035		)	(6,869		)
Depreciation	(4,855		)	(2,845		)
	3,811			6,486
Valuation allowance	(3,189		)	(2,413		)

Non-current deferred tax assets, net	$	622		$	4,073

Net deferred tax assets	$	3,459		$	5,848

A valuation allowance is provided when it is deemed more likely than not that some portion or all of a deferred tax asset will not be realized. In determining whether a valuation allowance is needed, we considered estimates of future taxable income, future reversals of temporary differences, the tax character of gains and losses, and the impact of tax planning strategies that can be implemented, if warranted. The increase in valuation allowance of $0.8 million during 2013 relates to state and foreign losses generated in the current year.

We have not provided Luxembourg deferred taxes on cumulative earnings of non-Luxembourg affiliates as we have chosen to indefinitely reinvest these earnings. The earnings reinvested as of December 31, 2013 were approximately $38.5 million.

The Company had a deferred tax asset of $12.4 million as of December 31, 2013 relating to United States federal, state and foreign net operating losses compared to $14.3 million as of December 31, 2012. Of this amount, $1.4 million as of December 31, 2013 related to state net operating losses subject to a valuation allowance compared to $1.5 million as of December 31, 2012, and $1.8 million as of December 31, 2013 related to Luxembourg net operating losses subject to a valuation allowance compared to $0.9 million as of December 31, 2012. The Company has not recognized federal net operating loss carry forwards of $9.5 million as of December 31, 2013 related to stock options exercised compared to $2.2 million as of December 31, 2012. If realized, the benefit would be an increase to additional paid-in-capital. The gross amount of net operating losses available for carryover to future years is approximately $32.6 million as of December 31, 2013 compared to $36.1 million as of December 31, 2012. Of this amount, $13.5 million as of December 31, 2013 compared to $14.7 million as of December 31, 2012 relates to NCI for periods prior to our acquisition of NCI and is subject to Section 382 of the Internal Revenue Code (the “Code”) which limits their use to approximately $1.3 million per year. These losses are scheduled to expire between the years 2022 and 2029.

The distribution of the Company in connection with the separation from Ocwen during 2009 was intended to be a tax-free transaction under Section 355 of the Code. However, Ocwen recognized, and paid tax on, substantially all of the gain it had in the assets that comprised Altisource as a result of the restructuring. To the extent Ocwen does recognize tax under Section 355 of the Code, Altisource has agreed to indemnify Ocwen. In addition, we have agreed to indemnify Ocwen should the expected tax treatments not be upheld upon review or audit to the extent related to our operating results. The Company does not anticipate a material obligation under this indemnity. The following table reconciles the income tax provision to the Luxembourg statutory income tax rate for the years ended December 31:

	2013		2012		2011

Statutory tax rate	29.22	%	28.80	%	28.80	%
Foreign rate differential	(24.97	)	(23.30	)	(20.03	)
Change in valuation allowance	0.76		0.16		—
State tax expense	0.24		0.17		0.06
Other	0.75		1.18		0.42

	6.00	%	7.01	%	9.25	%

The Company follows ASC Topic 740 which clarifies the accounting and disclosure for uncertainty in tax positions. We analyzed our tax filing positions in all of the domestic and foreign tax jurisdictions where we are required to file income tax returns as well as for all open tax years in these jurisdictions. Based on this review, no reserves for uncertain income tax positions were required to have been recorded pursuant to ASC Topic 740.

We recognize accrued interest and penalties related to uncertain tax positions in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2013 and 2012, we did not have a liability recorded for payment of interest and penalties associated with uncertain tax positions.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2013

SEGMENT REPORTING

SEGMENT REPORTING

22. 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 business 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, Equator’s 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. Equator’s software applications provide comprehensive, end-to-end workflow and transaction services to manage real estate related activities and purchase related services from vendors. In addition, Corporate Items and Eliminations includes eliminations of transactions between the reporting segments 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:

	For the year ended December 31, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource

Revenue	$	596,152		$	92,958		$	103,891	$	(24,644	)	$	768,357
Cost of revenue	374,713			55,328			84,538		(22,099		)	492,480
Gross profit	221,439			37,630			19,353		(2,545		)	275,877
Selling, general and administrative expenses	46,515			15,571			12,442		39,282			113,810
Income from operations	174,924			22,059			6,911		(41,827		)	162,067
Other income (expense), net	(136		)	(10		)	7		(19,595		)	(19,734		)
Income before income taxes and non-controlling interests	$	174,788		$	22,049		$	6,918	$	(61,422	)	$	142,333

	For the year ended December 31, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	452,796		$	64,522		$	74,189		$	(23,147	)	$	568,360
Cost of revenue	285,586			46,737			54,634			(20,756		)	366,201
Gross profit	167,210			17,785			19,555			(2,391		)	202,159
Selling, general and administrative expenses	25,099			13,415			8,888			27,310			74,712
Income from operations	142,111			4,370			10,667			(29,701		)	127,447
Other income (expense), net	(1,713		)	(27		)	(25		)	(1,033		)	(2,798		)
Income before income taxes and non-controlling interests	$	140,398		$	4,343		$	10,642		$	(30,734	)	$	124,649

	For the year ended December 31, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource

Revenue	$	311,921	$	71,181		$	56,094		$	(15,509	)	$	423,687
Cost of revenue	202,035		51,096			36,874			(14,156		)	275,849
Gross profit	109,886		20,085			19,220			(1,353		)	147,838
Selling, general and administrative expenses	15,278		15,634			4,867			26,352			62,131
Income from operations	94,608		4,451			14,353			(27,705		)	85,707
Other income (expense), net	248		(34		)	(49		)	38			203
Income before income taxes and non-controlling interests	$	94,856	$	4,417		$	14,304		$	(27,667	)	$	85,910

Our services are provided to customers primarily located in the United States.

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

Total assets:
December 31, 2013	$	308,214	$	55,930	$	274,766	$	85,928	$	724,838
December 31, 2012	132,924		37,782		64,570		193,950		429,226

	Premises & equipment, net
Country	(in thousands)

United States	$	63,615
India	16,404
Luxembourg	3,217
Philippines	4,016

Total	$	87,252

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: 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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+ Details

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2013

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables contain selected unaudited statement of operations information for each quarter of 2013 and 2012. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality.

Unaudited quarterly results are as follows:

	2013 quarter ended(1)(2)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	148,827	$	186,110	$	210,835	$	222,585
Gross profit	51,865		69,138		76,574		78,300
Income before income taxes and non-controlling interests	30,678		34,485		38,614		38,556
Net income	28,527		32,068		36,955		36,243
Net income attributable to Altisource	27,518		30,931		36,008		35,516

Earnings per share:
Basic	$	1.18	$	1.34	$	1.56	$	1.56
Diluted	$	1.10	$	1.25	$	1.42	$	1.42
Weighted average shares outstanding:
Basic	23,374		23,161		23,025		22,734
Diluted	25,058		24,823		25,333		25,005

	2012 quarter ended(1)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	139,066	$	144,205	$	143,988	$	141,101
Gross profit	47,306		51,467		49,701		53,685
Income before income taxes and non-controlling interests	29,940		32,128		30,982		31,599
Net income	27,121		29,352		28,084		31,354
Net income attributable to Altisource	25,229		28,081		27,024		30,293

Earnings per share:
Basic	$	1.08	$	1.20	$	1.16	$	1.30
Diluted	$	1.02	$	1.13	$	1.08	$	1.20
Weighted average shares outstanding:
Basic	23,381		23,316		23,338		23,389
Diluted	24,844		24,846		25,016		25,162

(1) The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period.

(2) On March 29, 2013, we acquired the Homeward fee-based businesses. On April 12, 2013, we completed the ResCap fee-based business transaction. On November 15, 2013, we acquired Equator (see Note 5).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

Basis of Accounting — The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents — We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents.

Accounts Receivable, Net

Premises and Equipment, Net

	Furniture and fixtures		5 years
	Office equipment		5 years
	Computer hardware		5 years
	Computer software		3-7 years
	Leasehold improvements		Shorter of useful life, 10 years or the term of the lease

Business Combinations

Investment in Equity Affiliates

Goodwill

We conduct our annual impairment assessment as of November 30 each year. No impairments of goodwill were recorded for the years ended December 31, 2013, 2012 and 2011.

Intangible Assets, Net

Debt Issuance Costs and Long-Term Debt

Debt Issuance Costs — Debt issuance costs are capitalized and amortized to interest expense through maturity of the related debt using the effective interest method.

Fair Value Measurements

Functional Currency

Defined Contribution 401(k) Plan

Share-Based Compensation

Earnings Per Share

Revenue Recognition

Income Taxes

Adoption/Future Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncement

Future Adoption of New Accounting Pronouncement

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2013

Acquisitions

Schedule of unaudited pro forma consolidated results of operations

	Year ended December 31, 2013
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	768,357	$	854,098
Net income attributable to Altisource	129,973		132,907
Earnings per share — diluted	5.19		5.31

	Year ended December 31, 2012
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	568,360	$	781,834
Net income attributable to Altisource	110,627		129,229
Earnings per share — diluted	4.43		5.18

Homeward servicing portfolio

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 & equipment		3 - 5
Customer relationship		7

Equator

Acquisitions

Schedule of the preliminary adjusted allocation of the purchase price

(in thousands)

Accounts receivable	$	9,293
Prepaid expenses and other current assets	954
Premises and equipment	16,974
Customer relationships and trade names	43,393
Goodwill	82,460
Other non-current assets	242
Assets acquired	153,316
Accounts payable and accrued expenses	(7,232		)
Deferred revenue	(36,689		)
Liabilities assumed	(43,921		)

Purchase price	$	109,395

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

		Estimated life (in years)

Premises and equipment (excluding internally developed software)		3 - 5
Internally developed software (included in premises and equipment)		7
Customer relationships		7 - 15
Trade names		4

ACCOUNTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2013

ACCOUNTS RECEIVABLE, NET

Schedule of accounts receivable, net

(in thousands)	2013			2012

Billed
Non-related parties	$	39,588		$	25,950
Ocwen	11,410			19,817
Correspondent One	—			27
HLSS	83			163
AAMC	1,347			14
Residential	547			—
Other receivables	1,642			353
	54,617			46,324
Unbilled
Non-related parties	42,284			39,496
Ocwen	10,027			6,377
Correspondent One	—			32
	106,928			92,229
Allowance for doubtful accounts	(5,631		)	(3,274		)

Total	$	101,297		$	88,955

Summary of the allowance for doubtful accounts, net of recoveries

	(in thousands)

Balance, January 1, 2011	$	2,132
Bad debt expense	967
Recoveries	(54		)
Write-offs	(998		)
Balance, December 31, 2011		2,047
Bad debt expense	3,049
Recoveries	(21		)
Write-offs	(1,801		)
Balance, December 31, 2012		3,274
Bad debt expense	2,549
Recoveries	(21		)
Write-offs	(171		)

Balance, December 31, 2013	$	5,631

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2013

GOODWILL AND INTANGIBLE ASSETS, NET

Summary of changes in goodwill

	Mortgage		Financial		Technology
(in thousands)	Services		Services		Services		Total

Balance, January 1, 2012 and December 31, 2012	$	10,919	$	2,378	$	1,618	$	14,915
Acquisition of Equator	—		—		82,460		82,460

Balance, December 31, 2013	$	10,919	$	2,378	$	84,078	$	97,375

Schedule of intangible assets, net

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

Definite lived intangible assets
Trademarks	14	$	12,249	$	10,614	$	(4,534	)	$	(4,060	)	$	7,715	$	6,554
Customer-related intangible assets	10	284,484		38,366		(44,208		)	(18,567		)(a)	240,276		19,799
Operating agreement	20	35,000		35,000		(6,854		)	(5,104		)	28,146		29,896
Non-compete agreement	4	1,300		1,300		(1,275		)	(963		)	25		337

Total		$	333,033	$	85,280	$	(56,871	)	$	(28,694	)	$	276,162	$	56,586

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2013

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

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

	2013		2012		2011
	Black-Scholes	Binomial	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	1.69 — 1.93	0.04 — 3.03
Expected stock price volatility (%)	36.35 — 36.76	36.40 — 36.80	34.22 — 34.65	34.20 — 34.60	48.00	55.70 — 55.80
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years)	6.25	—	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14	—	14

Fair value	$31.33 — $49.14	$16.12 — $41.72	$19.25 — $29.80	$9.98 — $22.76	$16.33 — $17.85	$16.91 — $20.39

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

		2013		2012		2011

Weighted average fair value at date of grant		$	32.59	$	20.77	$	17.66
Intrinsic value of options exercised	(in thousands)	40,761		17,598		4,966
Fair value of options vested	(in thousands)	3,156		2,790		3,536

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	6.11	$	211,072
Granted	75,000		104.84
Exercised	(401,718	)	16.48
Forfeited	(142,248	)	55.35

Outstanding at December 31, 2013	2,589,343		18.33		5.20	363,293

Exercisable at December 31, 2013	2,194,755		12.68		4.79	320,326

Summary of information about stock options outstanding and exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

	Options outstanding				Options exercisable
Exercise price range	Number	Weighted average remaining contractual life	Weighted average exercise price		Number	Weighted average remaining contractual life	Weighted average exercise price

$0.00 — $10.00(a)	1,700,112	4.49	$	9.14	1,700,112	4.49	$	9.14
$10.01 — $20.00(a)	97,737	2.80	12.45		97,737	2.80	12.45
$20.01 — $30.00(a)	502,686	6.30	23.07		328,625	6.31	23.15
$30.01 — $40.00(a)	61,058	6.98	33.54		23,874	7.30	33.44
$50.01 — $60.00(a)	10,000	8.37	53.00		3,750	8.37	53.00
$60.01 — $70.00(a)	142,750	8.19	60.67		40,657	8.19	60.67
$80.01 — $90.00(a)	15,000	9.12	83.86		—	—	—
$90.01 — $100.00(a)	30,000	9.21	94.19		—	—	—
$120.01 — $130.00(a)	30,000	9.62	125.98		—	—	—

	2,589,343				2,194,755

Summary of the market prices for options to begin to vest

	Market-based options
Vesting price	Ordinary performance		Extraordinary performance

$160.01 — $170.00	7,500		—
Over $170.00	22,500		52,125

	30,000		52,125

Weighted average share price	$	107.27	$	74.08

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of income tax provision

(in thousands)	2013			2012			2011

Current:
Domestic - Luxembourg	$	2,516		$	2,841		$	2,300
Foreign - U.S. Federal	6			—			—
Foreign - U.S. State	403			353			119
Foreign - Non U.S.	3,600			2,552			2,891

	$	6,525		$	5,746		$	5,310
Deferred:
Domestic - Luxembourg	$	—		$	388		$	(387	)
Foreign - U.S. Federal	2,506			2,419			3,216
Foreign - U.S. State	84			(23		)	(22		)
Foreign - Non U.S.	(575		)	208			(174		)
	2,015			2,992			2,633

Total	$	8,540		$	8,738		$	7,943

Summary of tax effects of the temporary differences

(in thousands)	2013			2012

Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$	43		$	40
Accrued expenses	3,183			1,940
Current deferred tax liabilities:
Prepaid expenses	(389		)	(205		)

Current deferred tax assets, net	$	2,837		$	1,775

Non-current deferred tax assets:
Net operating loss carryforwards	$	12,439		$	14,342
Non-U.S. deferred tax assets	1,471			895
Share-based compensation	784			956
Other	7			7
Non-current deferred tax liabilities:
Intangible assets	(6,035		)	(6,869		)
Depreciation	(4,855		)	(2,845		)
	3,811			6,486
Valuation allowance	(3,189		)	(2,413		)

Non-current deferred tax assets, net	$	622		$	4,073

Net deferred tax assets	$	3,459		$	5,848

Schedule of the reconciliation of income tax provision to the Luxembourg statutory income tax rate

	2013		2012		2011

Statutory tax rate	29.22	%	28.80	%	28.80	%
Foreign rate differential	(24.97	)	(23.30	)	(20.03	)
Change in valuation allowance	0.76		0.16		—
State tax expense	0.24		0.17		0.06
Other	0.75		1.18		0.42

	6.00	%	7.01	%	9.25	%

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2013

SEGMENT REPORTING

Schedule of financial information of segments

	For the year ended December 31, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource

Revenue	$	596,152		$	92,958		$	103,891	$	(24,644	)	$	768,357
Cost of revenue	374,713			55,328			84,538		(22,099		)	492,480
Gross profit	221,439			37,630			19,353		(2,545		)	275,877
Selling, general and administrative expenses	46,515			15,571			12,442		39,282			113,810
Income from operations	174,924			22,059			6,911		(41,827		)	162,067
Other income (expense), net	(136		)	(10		)	7		(19,595		)	(19,734		)
Income before income taxes and non-controlling interests	$	174,788		$	22,049		$	6,918	$	(61,422	)	$	142,333

	For the year ended December 31, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource

Revenue	$	452,796		$	64,522		$	74,189		$	(23,147	)	$	568,360
Cost of revenue	285,586			46,737			54,634			(20,756		)	366,201
Gross profit	167,210			17,785			19,555			(2,391		)	202,159
Selling, general and administrative expenses	25,099			13,415			8,888			27,310			74,712
Income from operations	142,111			4,370			10,667			(29,701		)	127,447
Other income (expense), net	(1,713		)	(27		)	(25		)	(1,033		)	(2,798		)
Income before income taxes and non-controlling interests	$	140,398		$	4,343		$	10,642		$	(30,734	)	$	124,649

	For the year ended December 31, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource

Revenue	$	311,921	$	71,181		$	56,094		$	(15,509	)	$	423,687
Cost of revenue	202,035		51,096			36,874			(14,156		)	275,849
Gross profit	109,886		20,085			19,220			(1,353		)	147,838
Selling, general and administrative expenses	15,278		15,634			4,867			26,352			62,131
Income from operations	94,608		4,451			14,353			(27,705		)	85,707
Other income (expense), net	248		(34		)	(49		)	38			203
Income before income taxes and non-controlling interests	$	94,856	$	4,417		$	14,304		$	(27,667	)	$	85,910

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

Total assets:
December 31, 2013	$	308,214	$	55,930	$	274,766	$	85,928	$	724,838
December 31, 2012	132,924		37,782		64,570		193,950		429,226

Schedule of premises and equipment, net by country

	Premises & equipment, net
Country	(in thousands)

United States	$	63,615
India	16,404
Luxembourg	3,217
Philippines	4,016

Total	$	87,252

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2013

QUARTERLY FINANCIAL DATA (UNAUDITED)

Schedule of unaudited quarterly results

	2013 quarter ended(1)(2)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	148,827	$	186,110	$	210,835	$	222,585
Gross profit	51,865		69,138		76,574		78,300
Income before income taxes and non-controlling interests	30,678		34,485		38,614		38,556
Net income	28,527		32,068		36,955		36,243
Net income attributable to Altisource	27,518		30,931		36,008		35,516

Earnings per share:
Basic	$	1.18	$	1.34	$	1.56	$	1.56
Diluted	$	1.10	$	1.25	$	1.42	$	1.42
Weighted average shares outstanding:
Basic	23,374		23,161		23,025		22,734
Diluted	25,058		24,823		25,333		25,005

	2012 quarter ended(1)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	139,066	$	144,205	$	143,988	$	141,101
Gross profit	47,306		51,467		49,701		53,685
Income before income taxes and non-controlling interests	29,940		32,128		30,982		31,599
Net income	27,121		29,352		28,084		31,354
Net income attributable to Altisource	25,229		28,081		27,024		30,293

Earnings per share:
Basic	$	1.08	$	1.20	$	1.16	$	1.30
Diluted	$	1.02	$	1.13	$	1.08	$	1.20
Weighted average shares outstanding:
Basic	23,381		23,316		23,338		23,389
Diluted	24,844		24,846		25,016		25,162

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands		12 Months Ended
	Nov. 15, 2013 USD ($) period	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Goodwill
Goodwill impairment		$ 0	$ 0	$ 0
Intangible Assets, Net
Impairment of intangible assets		0	0	0
Defined Contribution 401(k) Plan
Expense recorded for discretionary amounts contributed		400	200	100
Revenue Recognition
Reimbursable expenses		102,478	96,147	82,074
Mortgage Services
Revenue Recognition
Reimbursable expenses		$ 102,000	95,600	$ 80,100
Minimum
Intangible Assets, Net
Useful lives of intangible assets		5 years
Maximum
Intangible Assets, Net
Useful lives of intangible assets		20 years
Furniture and fixtures
Premises and Equipment, Net
Estimated useful lives		5 years
Office equipment
Premises and Equipment, Net
Estimated useful lives		5 years
Computer hardware
Premises and Equipment, Net
Estimated useful lives		5 years
Computer software \| Minimum
Premises and Equipment, Net
Estimated useful lives		3 years
Computer software \| Maximum
Premises and Equipment, Net
Estimated useful lives		7 years
Leasehold improvements \| Maximum
Premises and Equipment, Net
Estimated useful lives		10 years
MPA \| Lenders One
Principles of Consolidation
Total assets		$ 4,600	2,300
Liabilities		3,500	$ 1,000
Equator
Intangible Assets, Net
Number of consecutive 12-month periods for meeting targeted levels of adjusted EBITA \| period	3
Number of months for each consecutive period for meeting targeted levels of adjusted EBITA	12 months
Amount of contingent consideration payment to be made	$ 46,000	$ 46,000
Equator \| Maximum
Intangible Assets, Net
Additional consideration	$ 80,000

TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands				3 Months Ended	12 Months Ended
	Mar. 31, 2013	Feb. 15, 2013	Dec. 27, 2012	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
TRANSACTIONS WITH RELATED PARTIES
Amount billed by related party					$ 2,921	$ 2,430	$ 1,893
Revenue earned from related party					502,087	338,227	$ 245,262
Amount of loan provided to related party						$ 75,000
Repayment of outstanding principal amount					$ 75,000
Ocwen
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of consolidated revenue					65.00%	60.00%	58.00%
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			$ 12,700
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	$ 100	$ 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					2,600	2,700	2,600
Amount billed by related party					$ 2,900	$ 2,400	$ 1,900
Ocwen \| Mortgage Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue					71.00%	68.00%	72.00%
Ocwen \| Financial Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue as a percentage of segment revenue					30.00%
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					49.00%	42.00%	39.00%
Correspondent One
TRANSACTIONS WITH RELATED PARTIES
Revenue earned from related party					$ 100	$ 300	$ 0
Correspondent One \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party						400	100
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					700	600	0
Residential \| Management, Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party					2,600	0	0
AAMC \| Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party						$ 0	$ 0
AAMC \| Maximum \| Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Amount billed to related party					$ 100

ACQUISITIONS (Details 4) $ in Thousands		2 Months Ended
ACQUISITIONS (Details 4) $ in Thousands	Nov. 15, 2013 USD ($) period	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Preliminary adjusted allocation of the purchase price
Goodwill		$ 97,375	$ 14,915	$ 14,915
Equator
Acquisitions
Amount paid	$ 63,400
Settlement period of purchase price from closing date	90 days
Number of consecutive 12-month periods for meeting targeted levels of adjusted EBITA \| period	3
Number of months for each consecutive period for meeting targeted levels of adjusted EBITA	12 months
Service revenue recorded from the date of acquisition		7,500
Estimated pre-tax loss recorded from the date of acquisition		(1,000)
Preliminary adjusted allocation of the purchase price
Accounts receivable	$ 9,293
Prepaid expenses and other current assets	954
Premises and equipment	16,974
Customer relationships and trade names	43,393
Goodwill	82,460
Other non-current assets	242
Assets acquired	153,316
Accounts payable and accrued expenses	(7,232)
Deferred revenue	(36,689)
Liabilities assumed	(43,921)
Purchase price	109,395
Present value of future earn outs payments	46,000	$ 46,000
Equator \| Maximum
Acquisitions
Additional consideration	80,000
Earn Out consideration that can be earned in each of the first two 12-month periods	22,500
Earn Out consideration that can be earned in the third 12-month period	$ 35,000
Additional consideration that can be paid in restricted stock shares (as a percent)	20.00%

GOODWILL AND INTANGIBLE ASSETS, NET (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
GOODWILL AND INTANGIBLE ASSETS, NET
Impairment charges	$ 0	$ 0	$ 0
Intangible Assets, Net
Gross carrying amount	333,033	85,280
Accumulated amortization	(56,871)	(28,694)
Net book value	276,162	56,586
Reductions of intangible assets generated by Component 2 goodwill that can be realized for U.S. tax purposes		3,300	3,400
Amortization expense for definite lived intangible assets	28,176	5,030	$ 5,291
2014	44,200
2015	40,300
2016	34,400
2017	29,100
2018	24,000
Trademarks
Intangible Assets, Net
Gross carrying amount	12,249	10,614
Accumulated amortization	(4,534)	(4,060)
Net book value	$ 7,715	6,554
Trademarks \| Weighted average
Intangible Assets, Net
Estimated useful life	14 years
Customer-related intangible assets
Intangible Assets, Net
Gross carrying amount	$ 284,484	38,366
Accumulated amortization	(44,208)	(18,567)
Net book value	$ 240,276	19,799
Customer-related intangible assets \| Weighted average
Intangible Assets, Net
Estimated useful life	10 years
Operating agreement
Intangible Assets, Net
Gross carrying amount	$ 35,000	35,000
Accumulated amortization	(6,854)	(5,104)
Net book value	$ 28,146	29,896
Operating agreement \| Weighted average
Intangible Assets, Net
Estimated useful life	20 years
Non-compete agreement
Intangible Assets, Net
Gross carrying amount	$ 1,300	1,300
Accumulated amortization	(1,275)	(963)
Net book value	$ 25	$ 337
Non-compete agreement \| Weighted average
Intangible Assets, Net
Estimated useful life	4 years

LONG-TERM DEBT (Details) - USD ($) $ in Thousands				12 Months Ended
LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Dec. 09, 2013	May 07, 2013	Nov. 27, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt
Senior secured term loan		$ 400,000		$ 396,503	$ 200,000
Less: unamortized discount, net				(1,247)	(1,973)
Net long-term debt				395,256	198,027
Less: current portion				(3,975)	(2,000)
Long-term debt, less current portion				391,281	196,027
Proceeds from issuance of long-term debt				200,502	198,000
Payment of legal fees and other costs				3,200	4,317
Debt issuance costs, net				6,687	4,260
Interest on long-term debt				20,291	1,210	$ 85
Senior secured term loan
Debt
Amount borrowed		200,000	$ 200,000
Less: unamortized discount, net			$ (2,000)
Original issue discount (as a percent)			1.00%
Original issue premium		1,000
Proceeds from issuance of long-term debt		$ 201,000	$ 198,000
Payment of legal fees and other costs				2,400
Additional increase in debt under accordion borrowings				200,000
Amount of long-term debt refinanced	$ 397,500
Maturity period from prior term loans' maturity date	1 year
Aggregate amount of each consecutive quarterly scheduled principal installment	$ 1,000
Mandatory prepayments owed				$ 0
Fee, as percentage of principal amount of loan prepaid, for prepayment within one year of initial borrowing				1.00%
Interest rate at the end of the period (as a percent)				4.50%
Debt issuance costs, net				$ 6,700	4,300
Accumulated amortization				1,000	100
Interest on long-term debt				$ 20,300	$ 1,200	$ 0
Senior secured term loan \| Maximum
Debt
Loan term	7 years
Leverage ratio to be maintained under the credit facility covenants				2.75
Number of days within which the entity fails to pay principal when due or interest or any other amount owing on any other obligation under the credit agreement, is considered as event of default				5 days
Amount of principal or interest if failed to pay considered as event of default				$ 40,000
Amount of debt which results in acceleration of debt if failed to pay considered as event of default				40,000
Amount of unbonded, undischarged or unstayed debt under entry by court of one or more judgments for certain period to determine as event of default				$ 40,000
Senior secured term loan \| Adjusted Eurodollar Rate
Debt
Reference rate				Adjusted Eurodollar Rate
Fixed interest rate base (as a percent)				1.00%
Interest rate margin (as a percent)				3.50%
Senior secured term loan \| Base Rate
Debt
Reference rate				Base Rate
Fixed interest rate base (as a percent)				2.00%
Interest rate margin (as a percent)				2.50%

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands	12 Months Ended			44 Months Ended
	Dec. 31, 2013 USD ($) component installment right $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	May 31, 2012 shares
Common Stock
Common Stock, Shares Authorized \| shares	100,000,000	100,000,000		100,000,000
Common Stock, Shares, Outstanding \| shares	22,629,000	23,427,000		22,629,000
Number of votes for each share of common stock \| right	1
Equity Incentive Plan
Maximum number of Altisource share-based awards that can be granted under the Plan (in shares) \| shares	6,700,000			6,700,000
Share-based awards available for future grants under the Plan (in shares) \| shares	2,500,000			2,500,000
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Share-based compensation expense (in dollars) \| $	$ 2,400	$ 3,600	$ 3,900
Reversal of share-based compensation expense (in dollars) \| $		$ 800
Outstanding (in shares) \| shares	2,589,343	3,058,309		2,589,343
Stock options granted (in shares) \| shares	75,000	300,000	200,000
Weighted average exercise price of stock options granted (in dollars per share) \| $ / shares	$ 104.84	$ 69.48	$ 33.15
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares	32.59	20.77	17.66
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at date of grant (in dollars per share) \| $ / shares	$ 32.59	$ 20.77	$ 17.66
Intrinsic value of options exercised (in dollars) \| $	$ 40,761	$ 17,598	$ 4,966
Fair value of options vested (in dollars) \| $	3,156	$ 2,790	$ 3,536
Estimated unrecognized compensation costs (in dollars) \| $	$ 2,500			$ 2,500
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%
Maximum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Stock options granted (in shares) \| shares	100,000
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%
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%	1.69%
Risk-free interest rate, maximum (as a percent)	1.81%	1.17%	1.93%
Expected stock price volatility, minimum (as a percent)	36.35%	34.22%
Expected stock price volatility (as a percent)			48.00%
Expected stock price volatility, maximum (as a percent)	36.76%	34.65%
Expected option life	6 years 3 months	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) \| $ / shares	$ 31.33	$ 19.25	$ 16.33
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at date of grant (in dollars per share) \| $ / shares	31.33	19.25	16.33
Black-Scholes \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares	49.14	29.80	17.85
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at date of grant (in dollars per share) \| $ / shares	$ 49.14	$ 29.80	$ 17.85
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%	0.04%
Risk-free interest rate, maximum (as a percent)	2.71%	2.04%	3.03%
Expected stock price volatility, minimum (as a percent)	36.40%	34.20%	55.70%
Expected stock price volatility, maximum (as a percent)	36.80%	34.60%	55.80%
Contractual life	14 years	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) \| $ / shares	$ 16.12	$ 9.98	$ 16.91
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at date of grant (in dollars per share) \| $ / shares	16.12	9.98	16.91
Binomial \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares	41.72	22.76	20.39
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at date of grant (in dollars per share) \| $ / shares	$ 41.72	$ 22.76	$ 20.39
Stock Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased \| shares	1,200,000	300,000		3,700,000
Average purchase price per share (in dollars per share) \| $ / shares	$ 116.99	$ 63.25		$ 63.04
Remaining number of shares available for repurchase under the plan \| shares	2,300,000			2,300,000
Amount available to repurchase common stock under Luxembourg law (in dollars) \| $	$ 14,000			$ 14,000
Capacity available to repurchase common stock under senior secured term loan (in dollars) \| $	$ 55,000			$ 55,000
2012 Stock Repurchase Program
Stock Repurchase Plan
Number of shares of common stock authorized to be purchased \| shares					3,500,000
Options \| Service-Based
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Vesting period	4 years
Expiration term	10 years
Outstanding (in shares) \| shares	800,000			800,000
Options \| Market-Based
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Outstanding (in shares) \| shares	1,800,000			1,800,000
Number of components of an award \| component	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 \| installment	3
Options \| Market-Based, ordinary performance
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Market-based options subject to specified performance achievement (as a percent)	0.67
Options \| Market-Based, ordinary performance \| Minimum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Multiplier of stock price over exercise price as a condition for the award to vest	2
Percentage of compounded annual gain of stock price over exercise price required for the award to vest	20.00%
Options \| Market-Based, extraordinary performance
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Market-based options subject to specified performance achievement (as a percent)	0.33
Options \| Market-Based, extraordinary performance \| Minimum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Multiplier of stock price over exercise price as a condition for the award to vest	3
Percentage of compounded annual gain of stock price over exercise price required for the award to vest	25.00%

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Number of Options
Outstanding at the beginning of the period (in shares)	3,058,309
Granted (in shares)	75,000	300,000	200,000
Exercised (in shares)	(401,718)
Forfeited (in shares)	(142,248)
Outstanding at the end of the period (in shares)	2,589,343	3,058,309
Exercisable at the end of the period (in shares)	2,194,755
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	$ 33.15
Exercised (in dollars per share)	16.48
Forfeited (in dollars per share)	55.35
Outstanding at the end of the period (in dollars per share)	18.33	$ 17.69
Exercisable at the end of the period (in dollars per share)	$ 12.68
Weighted average contractual term
Weighted average contractual term	5 years 2 months 12 days	6 years 1 month 10 days
Exercisable at the end of the period	4 years 9 months 14 days
Aggregate intrinsic value
Aggregate intrinsic value (in dollars)	$ 363,293	$ 211,072
Exercisable at the end of the period (in dollars)	$ 320,326

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 3)	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Options outstanding
Number (in shares) \| shares	2,589,343
Options exercisable
Number (in shares) \| shares	2,194,755
$0.00 - $10.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	$ 0.00
Exercise price, high end of range (in dollars per share)	$ 10.00
Options outstanding
Number (in shares) \| shares	1,700,112
Weighted average remaining contractual life	4 years 5 months 26 days
Weighted average exercise price (in dollars per share)	$ 9.14
Options exercisable
Number (in shares) \| shares	1,700,112
Weighted average remaining contractual life	4 years 5 months 26 days
Weighted average exercise price (in dollars per share)	$ 9.14
$10.01 - $20.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	10.01
Exercise price, high end of range (in dollars per share)	$ 20.00
Options outstanding
Number (in shares) \| shares	97,737
Weighted average remaining contractual life	2 years 9 months 18 days
Weighted average exercise price (in dollars per share)	$ 12.45
Options exercisable
Number (in shares) \| shares	97,737
Weighted average remaining contractual life	2 years 9 months 18 days
Weighted average exercise price (in dollars per share)	$ 12.45
$20.01 - $30.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	20.01
Exercise price, high end of range (in dollars per share)	$ 30.00
Options outstanding
Number (in shares) \| shares	502,686
Weighted average remaining contractual life	6 years 3 months 18 days
Weighted average exercise price (in dollars per share)	$ 23.07
Options exercisable
Number (in shares) \| shares	328,625
Weighted average remaining contractual life	6 years 3 months 22 days
Weighted average exercise price (in dollars per share)	$ 23.15
$30.01 - $40.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	30.01
Exercise price, high end of range (in dollars per share)	$ 40.00
Options outstanding
Number (in shares) \| shares	61,058
Weighted average remaining contractual life	6 years 11 months 23 days
Weighted average exercise price (in dollars per share)	$ 33.54
Options exercisable
Number (in shares) \| shares	23,874
Weighted average remaining contractual life	7 years 3 months 18 days
Weighted average exercise price (in dollars per share)	$ 33.44
$50.01 - $60.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	50.01
Exercise price, high end of range (in dollars per share)	$ 60.00
Options outstanding
Number (in shares) \| shares	10,000
Weighted average remaining contractual life	8 years 4 months 13 days
Weighted average exercise price (in dollars per share)	$ 53.00
Options exercisable
Number (in shares) \| shares	3,750
Weighted average remaining contractual life	8 years 4 months 13 days
Weighted average exercise price (in dollars per share)	$ 53.00
$60.01 - $70.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	60.01
Exercise price, high end of range (in dollars per share)	$ 70.00
Options outstanding
Number (in shares) \| shares	142,750
Weighted average remaining contractual life	8 years 2 months 8 days
Weighted average exercise price (in dollars per share)	$ 60.67
Options exercisable
Number (in shares) \| shares	40,657
Weighted average remaining contractual life	8 years 2 months 8 days
Weighted average exercise price (in dollars per share)	$ 60.67
$80.01 - $90.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	80.01
Exercise price, high end of range (in dollars per share)	$ 90.00
Options outstanding
Number (in shares) \| shares	15,000
Weighted average remaining contractual life	9 years 1 month 13 days
Weighted average exercise price (in dollars per share)	$ 83.86
$90.01 - $100.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	90.01
Exercise price, high end of range (in dollars per share)	$ 100.00
Options outstanding
Number (in shares) \| shares	30,000
Weighted average remaining contractual life	9 years 2 months 16 days
Weighted average exercise price (in dollars per share)	$ 94.19
$120.01 - $130.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	120.01
Exercise price, high end of range (in dollars per share)	$ 130.00
Options outstanding
Number (in shares) \| shares	30,000
Weighted average remaining contractual life	9 years 7 months 13 days
Weighted average exercise price (in dollars per share)	$ 125.98

INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current:
Domestic - Luxembourg	$ 2,516	$ 2,841	$ 2,300
Current income tax provision	6,525	5,746	5,310
Deferred:
Domestic - Luxembourg		388	(387)
Deferred income tax provision	2,015	2,992	2,633
Total	$ 8,540	$ 8,738	$ 7,943
Statutory tax rate (as a percent)	29.22%	28.80%	28.80%
Decrease in foreign taxes due to tax holidays	$ 200	$ 1,500	$ 600
Effect on diluted per share due to decrease in foreign tax holiday (in dollars per share)	$ 0.01	$ 0.06	$ 0.02
U.S. Federal
Current:
Foreign	$ 6
Deferred:
Foreign	2,506	$ 2,419	$ 3,216
U.S. State
Current:
Foreign	403	353	119
Deferred:
Foreign	84	(23)	(22)
Non U.S.
Current:
Foreign	3,600	2,552	2,891
Deferred:
Foreign	(575)	$ 208	$ (174)
Philippines
Deferred:
Decrease in foreign taxes due to tax holidays	$ 0

INCOME TAXES (Details 2) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$ 43	$ 40
Accrued expenses	3,183	1,940
Current deferred tax liabilities:
Prepaid expenses	(389)	(205)
Current deferred tax asset, net:	2,837	1,775
Non-current deferred tax assets:
Net operating loss carryforwards	12,439	14,342
Share-based compensation	784	956
Other	7	7
Non-current deferred tax liabilities:
Intangible assets	(6,035)	(6,869)
Depreciation	(4,855)	(2,845)
Non-current deferred tax assets, gross	3,811	6,486
Valuation allowance	(3,189)	(2,413)
Non-current deferred tax assets, net	622	4,073
Net deferred tax asset	3,459	5,848
Income Taxes
Increase in valuation allowance related to state and foreign losses	800
Indefinitely reinvested cumulative earnings of non-Luxembourg affiliates	38,500
Gross amount of net operating losses available for carryover to future years	32,600	36,100
NCI
Income Taxes
Gross amount of net operating losses available for carryover to future years	13,500	14,700
Annual limit on use of operating loss carryforward	1,300
U.S. State
Non-current deferred tax assets:
Net operating loss carryforwards	1,400	1,500
Non U.S.
Non-current deferred tax assets:
Deferred tax asset	1,471	895
Luxembourg
Non-current deferred tax assets:
Net operating loss carryforwards	1,800	900
U.S. Federal
Income Taxes
Net operating loss carryforwards related to stock options exercised, not recognized	$ 9,500	$ 2,200

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
EARNINGS PER SHARE
Net income attributable to Altisource (in dollars)	$ 35,516	$ 36,008	$ 30,931	$ 27,518	$ 30,293	$ 27,024	$ 28,081	$ 25,229	$ 129,973	$ 110,627	$ 71,112
Weighted average common shares outstanding, basic	22,734	23,025	23,161	23,374	23,389	23,338	23,316	23,381	23,072	23,358	24,373
Dilutive effect of stock options (in shares)									1,981	1,604	1,312
Weighted average common shares outstanding, diluted	25,005	25,333	24,823	25,058	25,162	25,016	24,846	24,844	25,053	24,962	25,685
Earnings per share:
Basic (in dollars per share)	$ 1.56	$ 1.56	$ 1.34	$ 1.18	$ 1.30	$ 1.16	$ 1.20	$ 1.08	$ 5.63	$ 4.74	$ 2.92
Diluted (in dollars per share)	$ 1.42	$ 1.42	$ 1.25	$ 1.10	$ 1.20	$ 1.08	$ 1.13	$ 1.02	$ 5.19	$ 4.43	$ 2.77
Options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)											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	300	300

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2013 USD ($) segment	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
SEGMENT REPORTING
Number of reportable segments \| segment									3
SEGMENT REPORTING
Revenue									$ 768,357	$ 568,360	$ 423,687
Cost of revenue									492,480	366,201	275,849
Gross profit	$ 78,300	$ 76,574	$ 69,138	$ 51,865	$ 53,685	$ 49,701	$ 51,467	$ 47,306	275,877	202,159	147,838
Selling, general and administrative expenses									113,810	74,712	62,131
Income from operations									162,067	127,447	85,707
Other income (expense), net									(19,734)	(2,798)	203
Income before income taxes and non-controlling interests	38,556	$ 38,614	$ 34,485	$ 30,678	31,599	$ 30,982	$ 32,128	$ 29,940	142,333	124,649	85,910
Total Assets:
Total Assets	724,838				429,226				724,838	429,226
Operating Segment \| Mortgage Services
SEGMENT REPORTING
Revenue									596,152	452,796	311,921
Cost of revenue									374,713	285,586	202,035
Gross profit									221,439	167,210	109,886
Selling, general and administrative expenses									46,515	25,099	15,278
Income from operations									174,924	142,111	94,608
Other income (expense), net									(136)	(1,713)	248
Income before income taxes and non-controlling interests									174,788	140,398	94,856
Total Assets:
Total Assets	308,214				132,924				308,214	132,924
Operating Segment \| Financial Services
SEGMENT REPORTING
Revenue									92,958	64,522	71,181
Cost of revenue									55,328	46,737	51,096
Gross profit									37,630	17,785	20,085
Selling, general and administrative expenses									15,571	13,415	15,634
Income from operations									22,059	4,370	4,451
Other income (expense), net									(10)	(27)	(34)
Income before income taxes and non-controlling interests									22,049	4,343	4,417
Total Assets:
Total Assets	55,930				37,782				55,930	37,782
Operating Segment \| Technology Services
SEGMENT REPORTING
Revenue									103,891	74,189	56,094
Cost of revenue									84,538	54,634	36,874
Gross profit									19,353	19,555	19,220
Selling, general and administrative expenses									12,442	8,888	4,867
Income from operations									6,911	10,667	14,353
Other income (expense), net									7	(25)	(49)
Income before income taxes and non-controlling interests									6,918	10,642	14,304
Total Assets:
Total Assets	274,766				64,570				274,766	64,570
Corporate Items and Eliminations
SEGMENT REPORTING
Revenue									(24,644)	(23,147)	(15,509)
Cost of revenue									(22,099)	(20,756)	(14,156)
Gross profit									(2,545)	(2,391)	(1,353)
Selling, general and administrative expenses									39,282	27,310	26,352
Income from operations									(41,827)	(29,701)	(27,705)
Other income (expense), net									(19,595)	(1,033)	38
Income before income taxes and non-controlling interests									(61,422)	(30,734)	$ (27,667)
Total Assets:
Total Assets	$ 85,928				$ 193,950				$ 85,928	$ 193,950

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
QUARTERLY FINANCIAL DATA (UNAUDITED)
Revenue	$ 222,585	$ 210,835	$ 186,110	$ 148,827	$ 141,101	$ 143,988	$ 144,205	$ 139,066
Gross profit	78,300	76,574	69,138	51,865	53,685	49,701	51,467	47,306	$ 275,877	$ 202,159	$ 147,838
Income before income taxes and non-controlling interests	38,556	38,614	34,485	30,678	31,599	30,982	32,128	29,940	142,333	124,649	85,910
Net income	36,243	36,955	32,068	28,527	31,354	28,084	29,352	27,121	133,793	115,911	77,967
Net income attributable to Altisource	$ 35,516	$ 36,008	$ 30,931	$ 27,518	$ 30,293	$ 27,024	$ 28,081	$ 25,229	$ 129,973	$ 110,627	$ 71,112
Earnings per share:
Basic (in dollars per share)	$ 1.56	$ 1.56	$ 1.34	$ 1.18	$ 1.30	$ 1.16	$ 1.20	$ 1.08	$ 5.63	$ 4.74	$ 2.92
Diluted (in dollars per share)	$ 1.42	$ 1.42	$ 1.25	$ 1.10	$ 1.20	$ 1.08	$ 1.13	$ 1.02	$ 5.19	$ 4.43	$ 2.77
Weighted average shares outstanding:
Basic (in shares)	22,734	23,025	23,161	23,374	23,389	23,338	23,316	23,381	23,072	23,358	24,373
Diluted (in shares)	25,005	25,333	24,823	25,058	25,162	25,016	24,846	24,844	25,053	24,962	25,685

ORGANIZATION AND BASIS OF PRESENTATION	12 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Dec. 31, 2013
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	1. ORGANIZATION AND BASIS OF PRESENTATION 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 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 22 for a description of our business segments). Basis of Presentation — Our consolidated financial statements include the assets, liabilities, revenue and expenses directly attributable to our operations. All significant intercompany and inter-segment transactions and accounts have been eliminated in consolidation.

INVESTMENT IN EQUITY AFFILIATES	12 Months Ended
INVESTMENT IN EQUITY AFFILIATES	Dec. 31, 2013
INVESTMENT IN EQUITY AFFILIATES
INVESTMENT IN EQUITY AFFILIATES	10. 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 4), 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 loss in equity affiliates was $0.2 million, $1.2 million and $0.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. In the first quarter of 2013, we anticipated entering into an agreement to sell all of our equity interest in Correspondent One to Ocwen for approximately $12.7 million. As a result, we recorded a $0.6 million impairment loss as of December 31, 2012, representing the difference between the expected sales price and the carrying value as of December 31, 2012. The loss was included within loss in equity affiliates in other income (expense), net in the consolidated statements of operations.

ORGANIZATION AND BASIS OF PRESENTATION (Details)	12 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION (Details)	Dec. 31, 2013 segment
ORGANIZATION AND BASIS OF PRESENTATION
Number of reportable segments	3

SEPARATION OF RESIDENTIAL ASSET BUSINESSES (Details) $ in Thousands		12 Months Ended
	Dec. 21, 2012 USD ($) subsidiary	Dec. 31, 2012 USD ($)	Dec. 17, 2012
Separation of residential asset businesses
Number of wholly-owned subsidiaries included in spin-off \| subsidiary	2
Carrying value of the net assets transferred
Cash	$ 105,000	$ 105,000
Reduction in Altisource retained earnings	105,000	105,000
Amount of expenses incurred in connection with the separation		$ 2,700
Residential
Separation of residential asset businesses
Pro rata distribution ratio (in shares)			0.33
Carrying value of the net assets transferred
Cash	100,000
Reduction in Altisource retained earnings	100,000
AAMC
Separation of residential asset businesses
Pro rata distribution ratio (in shares)			0.10
Carrying value of the net assets transferred
Cash	5,000
Reduction in Altisource retained earnings	$ 5,000

ACQUISITIONS (Details 3) - ResCap - USD ($) $ in Millions			1 Months Ended	9 Months Ended
ACQUISITIONS (Details 3) - ResCap - USD ($) $ in Millions	May 10, 2013	Apr. 12, 2013	May 10, 2013	Dec. 31, 2013
Acquisitions
Service revenue recorded from the date of acquisition				$ 59.4
Estimated pre-tax income recorded from the date of acquisition				$ 19.9
Ocwen
Acquisitions
Amount paid	$ 48.8	$ 80.0	$ 128.8
Acquired tangible assets		0.0
Assumed liabilities in connection with the acquisition		0.0
Final allocation of the purchase price
Customer relationship		$ 128.8
Estimated life
Customer relationship		7 years

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2013	Dec. 31, 2012
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	22,629	23,427
Treasury stock, shares	2,784	1,986

ACQUISITIONS (Details) - Homeward servicing portfolio - USD ($) $ in Thousands		9 Months Ended
	Mar. 29, 2013	Dec. 31, 2013
Acquisitions
Service revenue recorded from the date of acquisition		$ 108,800
Estimated pre-tax income recorded from the date of acquisition		24,300
Ocwen
Acquisitions
Amount paid	$ 75,800
Working capital and net income adjustment		11,100
Reduction in premises and equipment		$ 1,200
Preliminary adjusted 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

ACQUISITIONS (Details 5) - Equator	Nov. 15, 2013
Customer relationships \| Minimum
Estimated life
Estimated useful life	7 years
Customer relationships \| Maximum
Estimated life
Estimated useful life	15 years
Trade names
Estimated life
Estimated useful life	4 years
Premises and equipment (excluding internally developed software) \| Minimum
Estimated life
Estimated useful lives	3 years
Premises and equipment (excluding internally developed software) \| Maximum
Estimated life
Estimated useful lives	5 years
Internally developed software (included in premises and equipment)
Estimated life
Estimated useful lives	7 years

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accounts receivable, net
Accounts receivable, gross	$ 106,928	$ 92,229
Allowance for doubtful accounts	(5,631)	(3,274)	$ (2,047)	$ (2,132)
Total	101,297	88,955
Billed
Accounts receivable, net
Non-related party, Accounts receivable	39,588	25,950
Other receivables	1,642	353
Accounts receivable, gross	54,617	46,324
Billed \| Ocwen
Accounts receivable, net
Receivable from related party	11,410	19,817
Billed \| Correspondent One
Accounts receivable, net
Receivable from related party		27
Billed \| HLSS
Accounts receivable, net
Receivable from related party	83	163
Billed \| AAMC
Accounts receivable, net
Receivable from related party	1,347	14
Billed \| Residential
Accounts receivable, net
Receivable from related party	547
Unbilled
Accounts receivable, net
Non-related party, Accounts receivable	42,284	39,496
Unbilled \| Ocwen
Accounts receivable, net
Receivable from related party	$ 10,027	6,377
Unbilled \| Correspondent One
Accounts receivable, net
Receivable from related party		$ 32

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Maintenance agreements, current portion	$ 4,600	$ 3,636
Income taxes receivable	1,645	1,814
Prepaid expenses	4,191	1,640
Other current assets	953	528
Total	$ 11,389	$ 7,618

GOODWILL AND INTANGIBLE ASSETS, NET (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Changes in goodwill
Balance at the beginning of the period	$ 14,915
Balance at the end of the period	97,375
Equator
Changes in goodwill
Acquisition	82,460
Mortgage Services
Changes in goodwill
Balance at the beginning of the period	10,919
Balance at the end of the period	10,919
Financial Services
Changes in goodwill
Balance at the beginning of the period	2,378
Balance at the end of the period	2,378
Technology Services
Changes in goodwill
Balance at the beginning of the period	1,618
Balance at the end of the period	84,078
Technology Services \| Equator
Changes in goodwill
Acquisition	$ 82,460

OTHER ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
OTHER ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
OTHER ASSETS
Security deposits, net	$ 7,291	$ 5,019
Debt issuance costs, net	6,687	4,260
Maintenance agreements, non-current portion	1,465	1,614
Restricted cash	1,620	158
Other	517	623
Total	17,580	11,674
Debt issuance costs	3,200	$ 4,300
Standby letter of credit	$ 1,500

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accounts payable and accrued expenses
Accounts payable	$ 11,600	$ 5,079
Accrued expenses - general	21,547	16,528
Accrued salaries and benefits	29,805	19,613
Income taxes payable	11,211	8,750
Total	79,492	58,976
Ocwen
Accounts payable and accrued expenses
Payable to related party	5,322	8,865
AAMC
Accounts payable and accrued expenses
Payable to related party	$ 7	$ 141

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Other current liabilities
Book overdrafts	$ 4,232	$ 5,229
Other	5,899	2,712
Total	$ 10,131	$ 7,941

LONG-TERM DEBT (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	May 07, 2013	Dec. 31, 2012
Maturities of long-term debt
2014	$ 3,975
2015	3,975
2016	3,975
2017	3,975
2018	3,975
Thereafter	376,628
Net long-term debt	396,503	$ 400,000	$ 200,000
Less: current portion	(3,975)		$ (2,000)
Long-term debt, less current portion	$ 392,528

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
OTHER NON-CURRENT LIABILITIES
Contingent consideration	$ 42,946
Other non-current liabilities	2,530	$ 1,738
Total	$ 45,476	$ 1,738

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 4)	Dec. 31, 2013 $ / shares shares
Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares) \| shares	30,000
Market-based options, Weighted average share price (in dollars per share) \| $ / shares	$ 107.27
Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares) \| shares	52,125
Market-based options, Weighted average share price (in dollars per share) \| $ / shares	$ 74.08
$160.01 - $170.00
Market prices for market performance options to vest
Market-based options, Vesting price, low end of range (in dollars per share) \| $ / shares	160.01
Market-based options, Vesting price, high end of range (in dollars per share) \| $ / shares	$ 170.00
$160.01 - $170.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares) \| shares	7,500
Over $170.00
Market prices for market performance options to vest
Market-based options, Vesting price, low end of range (in dollars per share) \| $ / shares	$ 170.00
Over $170.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares) \| shares	22,500
Over $170.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares) \| shares	52,125

COST OF REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
COST OF REVENUE
Compensation and benefits	$ 156,812	$ 113,145	$ 82,548
Outside fees and services	193,233	123,338	86,201
Reimbursable expenses	102,478	96,147	82,074
Technology and telecommunications	25,534	23,404	18,772
Depreciation and amortization	14,423	10,167	6,254
Total	$ 492,480	$ 366,201	$ 275,849

OTHER INCOME (EXPENSE), NET (Details) $ in Thousands	12 Months Ended
OTHER INCOME (EXPENSE), NET (Details) $ in Thousands	Dec. 31, 2013 USD ($) agreement	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
OTHER INCOME (EXPENSE), NET
Loss in equity affiliates, including impairment loss	$ (176)	$ (1,741)	$ (530)
Interest income	899	222	32
Change in fair value of put option			732
Other, net	(166)	(69)	54
Total other income (expense), net	$ 557	$ (1,588)	$ 288
Number of put option agreements \| agreement	3

INCOME TAXES (Details 3)	12 Months Ended
INCOME TAXES (Details 3)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of Income Tax Provision to the Luxembourg income tax rate
Statutory tax rate (as a percent)	29.22%	28.80%	28.80%
Foreign rate differential (as a percent)	(24.97%)	(23.30%)	(20.03%)
Change in valuation allowance (as a percent)	0.76%	0.16%
State tax expense (as a percent)	0.24%	0.17%	0.06%
Other (as a percent)	0.75%	1.18%	0.42%
Income tax provision (as a percent)	6.00%	7.01%	9.25%

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Operating lease obligations
2014	$ 9,142
2015	8,517
2016	7,077
2017	5,148
2018	4,386
Thereafter	138
Operating lease obligations	$ 34,408

SEGMENT REPORTING (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Premises & equipment, net
Premises and equipment, net	$ 87,252	$ 50,399
United States
Premises & equipment, net
Premises and equipment, net	63,615
India
Premises & equipment, net
Premises and equipment, net	16,404
Luxembourg
Premises & equipment, net
Premises and equipment, net	3,217
Philippines
Premises & equipment, net
Premises and equipment, net	$ 4,016

Label	Element	Value
Mortgage Services [Member]
Goodwill	us-gaap_Goodwill	$ 10,919,000
Financial Services [Member]
Goodwill	us-gaap_Goodwill	2,378,000
Technology Services [Member]
Goodwill	us-gaap_Goodwill	$ 1,618,000