View Filing Data

Prepaid expenses and other current assets

$ 161,361

$ 130,324

Accounts receivable, net

112,183

104,787

23,567

10,996

Deferred tax assets, net

4,987

2,837

Total current assets

302,098

248,944

Premises and equipment, net

127,759

87,252

Non-current deferred tax assets, net

622

Accounts payable and accrued expenses

90,851

99,414

Intangible assets, net

245,246

276,162

Other assets

22,267

17,658

Total assets

788,221

730,052

Current liabilities:

111,766

84,706

^[1]

Current portion of long-term debt

5,945

3,975

Deferred revenue

9,829

36,742

Other current liabilities

13,227

10,131

Total current liabilities

140,767

135,554

Long-term debt, less current portion

582,669

391,281

Deferred tax liabilities, net

2,694

Other non-current liabilities

20,648

45,476

Commitments, contingencies and regulatory matters (Note 22)

Equity:

Common stock ($1.00 par value; 25,413 shares authorized and issued, and 20,279 outstanding, as of December 31, 2014; 100,000 shares authorized, 25,413 issued and 22,629 outstanding as of December 31, 2013)

25,413

Additional paid-in capital

91,509

89,273

Retained earnings

367,967

239,561

Treasury stock, at cost (5,134 shares as of December 31, 2014 and 2,784 shares as of December 31, 2013)

(444,495)

(197,548)

Altisource equity

40,394

156,699

Non-controlling interests

1,049

1,042

Total equity

41,443

157,741

Total liabilities and equity

$ 788,221

$ 730,052

[1]	December 31, 2013 payables have been revised to reflect purchase accounting measurement period adjustments related to the Homeward and Equator acquisitions. See Note 5.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	25,413	100,000
Common stock, shares issued	25,413	25,413
Common stock, shares outstanding	20,279	22,629
Treasury stock, shares	5,134	2,784

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Revenue	$ 1,078,916	$ 768,357	$ 568,360
Cost of revenue	707,180	492,480	366,201
Gross profit	371,736	275,877	202,159
Selling, general and administrative expenses	201,282	113,810	74,712
Income from operations	170,454	162,067	127,447
Other income (expense), net:
Interest expense	(23,363)	(20,291)	(1,210)
Other income (expense), net	174	557	(1,588)
Total other income (expense), net	(23,189)	(19,734)	(2,798)
Income before income taxes and non-controlling interests	147,265	142,333	124,649
Income tax provision	(10,178)	(8,540)	(8,738)
Net income	137,087	133,793	115,911
Net income attributable to non-controlling interests	(2,603)	(3,820)	(5,284)
Net income attributable to Altisource	$ 134,484	$ 129,973	$ 110,627
Earnings per share:
Basic (in dollars per share)	$ 6.22	$ 5.63	$ 4.74
Diluted (in dollars per share)	$ 5.69	$ 5.19	$ 4.43
Weighted average shares outstanding:
Basic (in shares)	21,625	23,072	23,358
Diluted (in shares)	23,634	25,053	24,962
Transactions with related parties included above:
Revenue	$ 666,800	$ 502,087	$ 338,227
Cost of revenue	38,610	19,983	13,469
Selling, general and administrative expenses	(268)	569	(542)
Other income	$ 0	$ 773	$ 86

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Treasury stock, at cost	Non-controlling interests
Balance at Dec. 31, 2011	$ 165,943	$ 25,413	$ 83,229	$ 126,161	$ (72,048)	$ 3,188
Balance (in shares) at Dec. 31, 2011		25,413
Increase (Decrease) in Equity
Net income	115,911			110,627		5,284
Contributions from non-controlling interest holders	43					43
Distributions to non-controlling interest holders	(7,145)					(7,145)
Stockholders' Equity Note, Spinoff Transaction	(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
Increase (Decrease) in Equity
Net income	137,087			134,484		2,603
Distributions to non-controlling interest holders	(2,596)					(2,596)
Share-based compensation expense	2,236		2,236
Exercise of stock options	2,688			6,078	8,766
Repurchase of shares	(255,713)				(255,713)
Balance at Dec. 31, 2014	$ 41,443	$ 25,413	$ 91,509	$ 367,967	$ (444,495)	$ 1,049
Balance (in shares) at Dec. 31, 2014		25,413

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Cash flows from operating activities:

Net income

$ 137,087

$ 133,793

$ 115,911

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

29,046

19,056

12,776

Amortization of intangible assets

37,680

28,176

5,030

(37,924)

Share-based compensation expense

37,473

^[1]

2,236

2,400

3,644

Equity in losses of investment in affiliate

176

1,741

Bad debt expense

16,257

2,549

3,049

Amortization of debt discount

317

223

Amortization of debt issuance costs

1,151

958

Deferred income taxes

1,166

2,015

2,992

Loss on disposal of fixed assets

184

1,309

445

Changes in operating assets and liabilities, net of effects of acquisitions:

Accounts receivable

(22,492)

(5,602)

(39,999)

Prepaid expenses and other current assets

(12,501)

(2,817)

(2,616)

Other assets

(1,750)

(1,586)

2,172

Accounts payable and accrued expenses

24,285

7,381

11,652

Other current and non-current liabilities

(14,722)

(2,557)

(352)

Net cash provided by operating activities

197,493

185,474

116,529

Cash flows from investing activities:

Additions to premises and equipment

(64,846)

(34,134)

(35,563)

Acquisition of businesses, net of cash acquired

(34,720)

(267,946)

Loan to Ocwen

(75,000)

Proceeds from loan to Ocwen

75,000

Proceeds from sale of equity affiliate

12,648

Other investing activities

(300)

(50)

Change in restricted cash

(1,402)

(1,462)

Net cash used in investing activities

(101,268)

(215,944)

(110,563)

Cash flows from financing activities:

Repayment of long-term debt and payments on capital lease obligations

(4,959)

(3,729)

(603)

Proceeds from issuance of long-term debt

198,000

200,502

198,000

Distribution of cash in connection with the Separation of the Residential Asset Businesses

(105,000)

Debt issuance costs

(2,608)

(3,200)

(4,317)

Proceeds from stock option exercises

2,688

6,885

3,214

Purchase of treasury stock

(255,713)

(141,018)

(16,781)

Contributions from non-controlling interests

Distributions to non-controlling interests

(2,596)

(4,176)

(7,145)

Net cash (used in) provided by financing activities

(65,188)

55,292

67,411

Net increase in cash and cash equivalents

31,037

24,822

73,377

Cash and cash equivalents at the beginning of the period

130,324

105,502

32,125

Cash and cash equivalents at the end of the period

161,361

130,324

105,502

Supplemental cash flow information:

Interest paid

21,829

19,325

1,134

Income taxes paid, net

13,340

3,671

4,912

Non-cash investing and financing activities:

(Decrease) increase in payables for purchases of premises and equipment

(2,328)

4,552

2,457

Decrease in acquisition of businesses from subsequent working capital true-ups

(3,711)

(2,039)

Amortization of tax-deductible goodwill

$ 0

$ 3,334

[1]	See Note 5 for a discussion of the Equator goodwill impairment.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Presentation - The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany and inter-segment transactions and accounts have been eliminated in consolidation.

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.

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. 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 primarily 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 and negotiating and executing contracts with vendors including executing 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. As of December 31, 2014, Lenders One had total assets of $7.7 million and total liabilities of $6.7 million. As of December 31, 2013, Lenders One had total assets of $4.6 million and total liabilities of $3.5 million.

Correction of Immaterial Errors - As previously disclosed, during 2014 we determined that while we properly identified our related parties in previously issued financial statements, disclosures of certain immaterial related party expenses were omitted. We have corrected the previously presented disclosures of related party expenses in Note 4 - Transactions with Related Parties and on the face of the consolidated statements of operations for the years ended December 31, 2013 and 2012. The impact of correcting these items in the notes to the consolidated financial statements had the effect of:


•	increasing the amounts disclosed as related party cost of revenue from Ocwen Financial Corporation and its subsidiaries (“Ocwen”) by $20.0 million and $13.5 million for the years ended December 31, 2013 and 2012, respectively;


•	increasing the amounts disclosed as selling, general and administrative expenses from Ocwen billings to Altisource by $1.7 million and $0.7 million for the years ended December 31, 2013 and 2012, respectively;


•	decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Ocwen by $0.1 million and less than $0.1 million for the years ended December 31, 2013 and 2012, respectively; and


•	decreasing the amounts disclosed as selling, general and administrative expenses from Altisource billings to Altisource Asset Management Corporation (“AAMC”) by $0.5 million for the year ended December 31, 2013 (no adjustment for the year ended December 31, 2012).

Correcting these items on the face of the consolidated statements of operations resulted in the disclosure of related party cost of revenue of $20.0 million and $13.5 million for the years ended December 31, 2013 and 2012, respectively, and a decrease in previously disclosed related party selling, general and administrative expenses by $2.4 million and $3.0 million for the years ended December 31, 2013 and 2012, respectively.

In accordance with the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections, the Company evaluated the effect of the disclosure and presentation errors on its previously issued annual and quarterly financial statements, both qualitatively and quantitatively, and concluded that the related party disclosures in the Company’s previously issued annual and quarterly financial statements are not materially misstated.

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 asset or asset group 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.

Business Combinations - We account for acquisitions using the purchase method of accounting in accordance with 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 fair 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 during the fourth quarter or more frequently when an event occurs or circumstances change that indicates 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 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 would then 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. The discounted cash flow method is based on present value of projected 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. Certain estimates of discounted cash flows involve businesses with limited financial history and developing revenue models. The estimated cash flows are discounted using a rate that represents our weighted average cost of capital.

Because we recorded an impairment of goodwill during an interim period in 2014 (see Note 5), we elected to bypass the initial analysis of qualitative factors and perform a quantitative two-step goodwill impairment test of all of our reporting units during our annual assessment in the fourth quarter of 2014. For purposes of the annual goodwill impairment assessment, our reporting units are our reportable segments. We calculated the fair value of each of our reporting units by using a discounted cash flow analysis. As of December 31, 2014, the fair value of the Mortgage Services, Financial Services and Technology Services reporting units exceeded their carrying values by a significant margin. Consequently, we determined that no further goodwill impairment exists as of December 31, 2014. There were no goodwill impairments in 2013 or 2012.

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 in proportion to actual and expected customer revenues or 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 2014, 2013 and 2012 cash flow analyses prepared by management for certain of the intangible assets, no impairment of intangible assets was recorded for the years ended December 31, 2014, 2013 and 2012.

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 or premium. The debt discount or premium is amortized to interest expense through maturity of the related debt using the effective interest method.

Fair Value Measurements - Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows:

Level 1 — Quoted prices in active markets for identical assets and liabilities

Level 2 — Observable inputs other than quoted prices included in Level 1

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

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 $0.9 million, $0.4 million and $0.2 million for the years ended December 31, 2014, 2013 and 2012, 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 segment: We recognize revenue for the majority of the services we provide when the services have been performed. 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 upon recording the related foreclosure deed 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 $137.4 million, $102.0 million and $95.6 million incurred for the years ended December 31, 2014, 2013 and 2012, 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 segment: 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 segment: For our REALSuite platform, we charge based on the number of loans 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 or services provided.

For Equator, LLC’s (“Equator”) 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.

For Mortgage Builder Software, Inc. (“Mortgage Builder”) software applications, we recognize subscription revenues ratably over the contract term, beginning on the commencement date of each contract. Revenues for usage-based transactions are generally recognized as the usage occurs, as that is the point when the fee becomes fixed or determinable. Mortgage Builder generally invoices customers on a monthly basis.

We provide information technology (“IT”) infrastructure services to Ocwen, Home Loan Servicing Solutions, Ltd. (“HLSS”), Altisource Residential Corporation (“Residential”) and 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 platforms used by Ocwen, HLSS, Residential and AAMC. We record revenue associated with implementation services upon completion and maintenance ratably over the related service period.

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 tax 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 (“ASC Topic 740”).

Future Adoption of New Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This standard establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the new standard is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new standard will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact this new guidance may have on its results of operations and financial position.

ORGANIZATION	12 Months Ended
ORGANIZATION	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Description of Business - Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries offering both distribution and content. We leverage proprietary business process, vendor and electronic payment management software and behavioral science based analytics to improve outcomes for marketplace participants. We conduct our operations through three reportable segments: Mortgage Services, Financial Services and Technology Services. In addition, we report our corporate related expenditures and eliminations separately (see Note 23 for a description of our business segments).

SEPARATION OF RESIDENTIAL ASSET BUSINESSES

12 Months Ended

Dec. 31, 2014

SEPARATION OF RESIDENTIAL ASSET BUSINESSES

SEPARATION OF RESIDENTIAL ASSET BUSINESSES

On December 21, 2012, we completed the spin-offs of two wholly-owned subsidiaries, AAMC and Residential, into separate publicly traded companies (the “Separation of the Residential Asset Businesses”).

On December 24, 2012, Altisource shareholders of record as of December 17, 2012 received a pro rata distribution of:


•	one share of Residential common stock for every three shares of Altisource common stock held;


•	one share of AAMC common stock for every ten shares of Altisource common stock held; and


•	cash in lieu of fractional Residential and AAMC shares.

We eliminated the assets and liabilities of Residential and AAMC from our consolidated balance sheet effective at the close of business on December 21, 2012. As Residential and AAMC were development stage companies and had not commenced operations

at the date of separation, these entities had no historical results of operations.

The carrying value of the net assets transferred by Altisource was as follows:



(in thousands)	Residential		AAMC		Total

Cash	$	100,000	$	5,000	$	105,000

Reduction in Altisource retained earnings	$	100,000	$	5,000	$	105,000

We incurred $2.7 million of expenses for the year ended December 31, 2012 representing salaries of certain employees who became employees of AAMC after the separation (included in cost of revenue) and advisory expenses (included in selling, general and administrative expenses) incurred in connection with the Separation of the Residential Asset Businesses. These expenses are included in our Mortgage Services segment (no comparative amounts for 2014 and 2013).

Impact on Share-Based Compensation

The exercise price of each outstanding stock option of Altisource was adjusted to reflect the value of Residential and AAMC common stock distributed to Altisource shareholders. On the separation date, all holders of Altisource stock options received the following:

•

stock options (issued by Residential and AAMC) to acquire the number of shares of Residential or AAMC common stock equal to the product of (a) the number of Altisource stock options held on the separation date and (b) the distribution ratio of one share of Residential common stock for every three shares of Altisource common stock and one share of AAMC stock for every ten shares of Altisource common stock; and


•	an adjusted Altisource stock option, with a reduced exercise price per stock option.

TRANSACTIONS WITH RELATED PARTIES

12 Months Ended

Dec. 31, 2014

TRANSACTIONS WITH RELATED PARTIES

Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen and Chairman of each of HLSS, Residential and AAMC. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, HLSS, Residential and AAMC and is no longer a member of the Board of Directors for any of these companies. As of December 31, 2014, Mr. Erbey owned or controlled approximately 29% of the common stock of Altisource, approximately 14% of the common stock of Ocwen, approximately 1% of the common stock of HLSS, approximately 4% of the common stock of Residential and approximately 28% of the common stock of AAMC. As of December 31, 2014, Mr. Erbey also held 873,501 options to purchase Altisource common stock (all of which were exercisable), 3,620,498 options to purchase Ocwen common stock (3,370,498 of which were exercisable) and 87,350 options to purchase AAMC common stock (all of which were exercisable). Accordingly, as a result of Mr. Erbey’s positions and the continuing common ownership, these companies have been and are related parties of Altisource.

Ocwen

Revenue

Ocwen is our largest customer. Ocwen purchases certain mortgage services and technology services from us under the terms of the master services agreements and amendments to the master services agreements (collectively, the “Service Agreements”) with terms extending through August 2025. The Service Agreements, among other things, contain a “most favored nation” provision and the parties to the Service Agreements have the right to renegotiate pricing. In connection with our March 29, 2013 acquisition from Ocwen of the fee-based businesses of Homeward Residential, Inc. (“Homeward”) and the April 12, 2013 transaction with Ocwen related to the fee-based businesses of Residential Capital, LLC (“ResCap”) (see Note 5), our Service Agreements with Ocwen were amended to extend the term from 2020 to 2025. Further, as part of the amendments, 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. During 2014, we agreed with Ocwen to apply a negligence standard with respect to indemnification obligations arising out of property preservation and inspection services. Previously, Altisource and Ocwen applied a gross negligence standard with respect to these indemnification obligations. The impact of changing the negligence standard did not have a material effect on our results of operations. In addition, Ocwen purchases certain origination services from Altisource under an agreement that extends through January 2017, subject to termination under certain conditions. 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 primarily consists of revenue earned directly from Ocwen and revenue earned from the loans serviced by Ocwen when Ocwen designates us as the service provider. Related party revenue from Ocwen as a percentage of segment and consolidated revenue was as follows for the years ended December 31:



	2014	2013	2012

Mortgage Services	67%	71%	68%
Financial Services	27%	30%	<1%
Technology Services	41%	49%	42%
Consolidated revenue	60%	65%	59%

We record revenue we earn from Ocwen under the Service Agreements at rates we believe to be market rates as we believe they are consistent with the fees we charge to other customers for comparable services and/or fees charged by our competitors.

We earn additional revenue on the portfolios serviced by Ocwen that is not considered related party revenue when a party other than Ocwen selects Altisource as the service provider. For the years ended December 31, 2014, 2013 and 2012, we recognized revenue of $256.0 million, $161.9 million and $125.4 million, respectively, on the portfolios serviced by Ocwen that are not considered related party revenue.

Cost of Revenue

At times, we use Ocwen’s contractors and/or employees to support Altisource related services. Ocwen generally bills us for these contractors and/or employees based on their fully-allocated cost. Additionally, we purchase certain data relating to Ocwen’s servicing portfolio in connection with a Data Access and Services Agreement. The Data Access and Services Agreement may be renegotiated and may be cancelled by either Altisource or Ocwen with 90 days prior written notice. Ocwen bills us a per asset fee for this data. For the years ended December 31, 2014, 2013 and 2012, Ocwen billed us $38.6 million, $20.0 million and $13.5 million, respectively. These amounts are reflected as a component of cost of revenue in the consolidated statements of operations. On December 31, 2014, we notified Ocwen that we are canceling the Data Access and Services Agreement, effective March 31, 2015.

Selling, General and Administrative Expenses

We provided certain other services to Ocwen and Ocwen provided certain other services to us in connection with Support Services Agreements. These services include such areas as human resources, vendor management, vendor oversight, corporate services, operational effectiveness, quality assurance, quantitative analytics, tax and treasury. The Support Services Agreement with Ocwen Mortgage Servicing, Inc. extends through September 2018 with automatic one-year renewals thereafter. The Support Services Agreement with Ocwen Financial Corporation extends through October 2017 with automatic one-year renewals thereafter. Billings for these services were generally based on the fully-allocated cost of providing the service based on an estimate of the time and expense of providing the service or estimates thereof. For the years ended December 31, 2014, 2013 and 2012, we billed Ocwen $4.5 million, $2.8 million and $2.7 million, respectively, and Ocwen billed us $6.1 million, $4.6 million and $3.2 million, respectively. 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 was not less than 1.50%. On February 15, 2013, Ocwen repaid the outstanding principal amount of this loan and 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 2014).

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”). 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. Prior to the sale to Ocwen, we provided Correspondent One certain finance, human resources, legal support, facilities, technology, vendor management and insurance risk management services under a support services agreement. For the years ended December 31, 2013 and 2012, we billed Correspondent One less than $0.1 million and $0.4 million, respectively (no comparative amount for 2014). These amounts are reflected as a component of selling, general and administrative expenses in the consolidated statements of operations. 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 for 2014).

HLSS is a publicly traded company whose primary objective is the acquisition of mortgage servicing rights and related servicing advances, loans held for investment and other residential mortgage related assets. Under a support services agreement, we provide HLSS certain finance, human resources, tax and facilities services. For the years ended December 31, 2014, 2013 and 2012, we billed HLSS $0.9 million, $0.7 million and $0.6 million, respectively. 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 spun-off on December 21, 2012 and their equity was distributed to our shareholders on December 24, 2012 and they are each separate publicly traded companies. Residential is focused on acquiring and managing single family rental properties by acquiring sub-performing and non-performing residential mortgage loans as well as single family homes at or following the foreclosure sale throughout the United States. AAMC is an asset management company providing portfolio management and corporate governance services to Residential.

For purposes of governing certain ongoing relationships between Altisource, Residential and AAMC, 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 services such as finance, human resources, facilities, technology and insurance risk management. Further, we have separate agreements for certain services related to income tax matters, trademark licenses and technology services.

For the years ended December 31, 2014 and 2013, we billed Residential $16.0 million and $2.6 million, respectively (no comparative amount for 2012). This excludes revenue where we are retained by Ocwen to provide services to Residential’s loans serviced by Ocwen. That revenue is included in related party revenue from Ocwen. For the years ended December 31, 2014 and 2013, we billed AAMC $0.1 million and less than $0.1 million, respectively, under the services agreements (no comparative amount for 2012). These amounts are reflected in revenue in the consolidated statements of operations. In addition, for the years ended December 31, 2014 and 2013, we billed AAMC $0.9 million and $0.5 million, respectively, under the services agreements (no comparative amount for 2012). These amounts are reflected as a component of selling, general and administrative expenses in the consolidated statements of operations.

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, 2014

Business Combinations [Abstract]

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 pre-acquisition net income adjustment payment by Ocwen of $11.1 million, which we received in September 2013.

Since the acquisition date, management adjusted the 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 and increased current liabilities by $2.0 million based on a subsequent detailed analysis of obligations payable as of the closing date, which we paid in 2014. Consequently, the Company retrospectively adjusted the fair value of the assets acquired and liabilities assumed in the consolidated balance sheet as of December 31, 2013 as well as disclosed the corresponding amount of non-cash investing and financing activities in the consolidated statement of cash flows for the year ended December 31, 2013.

The final adjusted allocation of the purchase price is as follows:



(in thousands)

Premises and equipment	$	1,559
Customer relationship	75,609
Goodwill	2,039
	79,207
Accounts payable and accrued expenses	(3,390		)

Purchase price	$	75,817



		Estimated life (in years)

Premises and equipment		3 - 5
Customer relationship		7

ResCap Fee-Based Businesses

On April 12, 2013, we entered into an agreement with Ocwen to establish additional terms related to the existing servicing arrangements between Altisource and Ocwen in connection with certain mortgage servicing platform assets of ResCap (the “ResCap Business”). The agreement provides that (i) Altisource will be a provider 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 to Ocwen in connection with the ResCap fee-based businesses agreement.

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

Management prepared a final purchase price allocation and assigned associated asset lives based upon available information at the time of the agreement and until finalized as of December 31, 2013. 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 a Purchase and Sale Agreement dated 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. After the acquisition date, management adjusted the purchase price allocation based upon information that has subsequently become available relating to acquisition date working capital, resulting in an obligation of the Company to pay the sellers an additional $3.7 million. Consequently, the Company retrospectively adjusted the fair value of the assets acquired and liabilities assumed in the consolidated balance sheet as of December 31, 2013 as well as disclosed the corresponding amount of non-cash investing and financing activities in the consolidated statement of cash flows for the year ended December 31, 2014.

The Purchase Agreement also provided for the payment of up to $80 million in potential additional consideration (“Equator Earn Out”). The Equator Earn Out will be determined based on Equator’s Adjusted EBITA (as defined in the Purchase Agreement) in the three consecutive 12-month periods following closing. Up to $22.5 million of the Equator Earn Out could be earned in each of the first two 12-month periods, and up to $35.0 million could be earned in the third 12-month period. Any amounts earned upon the achievement of Adjusted EBITA thresholds are payable through 2017. We may, at our discretion, pay up to 20% of each payment of any of the Equator Earn Out in shares of Company restricted stock, with the balance to be paid in cash. As of the closing date, we estimated the fair value of the Equator Earn Out to be $46.0 million, determined based on the present value of future estimated Equator Earn Out payments at such date, which has subsequently been reduced to $8.1 million, as further described below. The acquisition date fair value of the Equator Earn Out is included as a component of the purchase price of Equator.

The final adjusted allocation of the purchase price is as follows:



	Initial purchase price allocation			Adjustments			Adjusted purchase price allocation
(in thousands)	Initial purchase price allocation			Adjustments			Adjusted purchase price allocation

Accounts receivable	$	9,293		$	3,490		$	12,783
Prepaid expenses and other current assets	954			(393		)	561
Premises and equipment	16,974			—			16,974
Customer relationships, trademarks and trade names	43,393			—			43,393
Goodwill	82,460			—			82,460
Other non-current assets	242			78			320
Assets acquired	153,316			3,175			156,491
Accounts payable and accrued expenses	(7,232		)	536			(6,696		)
Deferred revenue	(36,689		)	—			(36,689		)
Liabilities assumed	(43,921		)	536			(43,385		)

Purchase price	$	109,395		$	3,711		$	113,106



		Estimated life (in years)

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

In accordance with ASC Topic 805, Business Combinations, the liability for contingent consideration is reflected at fair value and adjusted each reporting period with the change in fair value recognized in earnings. During 2014, the fair value of the contingent consideration related to the Equator acquisition was reduced by $37.9 million with a corresponding increase in earnings based on management’s revised estimates that expected earnings of Equator will be lower than projected at the time of acquisition. The reduction in fair value was recorded in 2014 and is reflected as a reduction of selling, general and administrative expenses in the consolidated statements of operations.

As a result of the decline in fair value of the Equator Earn Out, management evaluated and determined that Equator goodwill should be tested for impairment. Consequently, we initiated a quantitative two-step goodwill impairment test by comparing the carrying value of the net assets of Equator to its fair value based on a discounted cash flow analysis. In 2014, based on our goodwill assessment, we determined that the fair value of Equator was less than its carrying value and goodwill was impaired. Consequently, we recorded an impairment loss of $37.5 million, which is reflected as a component of selling, general and administrative expenses in the consolidated statements of operations (see Note 18).

The following table presents the impact of the change in the fair value of the Equator Earn Out and Equator goodwill impairment for the year ended December 31, 2014, which are included in selling, general and administrative expenses in the consolidated statements of operations:



(in thousands)

Change in the fair value of Equator Earn Out	$	(37,924	)
Goodwill impairment	37,473

	$	(451	)

The following tables present the unaudited pro forma consolidated results of operations for the years ended December 31, 2013 and 2012 as if the Homeward fee-based business, ResCap fee-based business and Equator transactions had occurred at the beginning of the periods 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 fee-based business, ResCap fee-based business and Equator. The Homeward fee-based business, ResCap fee-based 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 purchase price allocations, the adjustment of interest expense reflecting the portion of our senior secured term loan used in the Homeward fee-based business, ResCap fee-based business and Equator transactions and to reflect the impact of income taxes on the pro forma adjustments utilizing Altisource’s effective income tax rate.

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 the period presented, nor is the pro forma data intended to be a projection of results that may be obtained in the future.

Mortgage Builder Acquisition

On September 12, 2014, we acquired certain assets and assumed certain liabilities of Mortgage Builder pursuant to a Purchase and Sale Agreement dated July 18, 2014 (the “Purchase and Sale Agreement”). Mortgage Builder is a provider of residential mortgage loan origination and servicing software systems. Pursuant to the terms of the Purchase and Sale Agreement, we paid $15.7 million at closing in cash (net of closing working capital adjustments). Additionally, the Purchase and Sale Agreement provides for the payment of up to $7.0 million in potential additional consideration (the “MB Earn Out”) based on Adjusted Revenue (as defined in the Purchase and Sale Agreement) in the three consecutive 12-month periods following closing. At closing, we estimated the fair value of the MB Earn Out to be $1.6 million, determined based on the present value of future estimated MB Earn Out payments. The Mortgage Builder acquisition is not material in relation to the Company’s results of operations or financial position.

The preliminary allocation of the purchase price is as follows:



(in thousands)

Cash	$	726
Accounts receivable, net	1,120
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationship	4,824
Goodwill	9,135
	18,114
Accounts payable and accrued expenses	(881		)

Purchase price	$	17,233

Owners.com Acquisition

On November 21, 2014, we acquired certain assets and assumed certain liabilities of Owners Advantage, LLC (“Owners.com”). Owners.com is a self-directed online real estate marketplace. We paid $19.8 million at closing in cash plus contingent consideration of up to an additional $7.0 million over two years (“Owners.com Earn Out”). At closing, we estimated the fair value of the Owners.com Earn Out to be $1.9 million determined based on the present value of future estimated Owners.com Earn Out payments. The Owners.com acquisition is not material in relation to the Company’s results of operations or financial position.

The preliminary allocation of the purchase price is as follows:



(in thousands)

Accounts receivable, net	$	41
Prepaid expenses	32
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
	21,780
Accounts payable	(41		)

Purchase price	$	21,739

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

FAIR VALUE (Notes)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE

Fair Value Measurements on a Recurring Basis

The Company had no assets carried at fair value and its liabilities carried at fair value consist of the acquisition related contingent consideration as of December 31, 2014 and 2013. The liabilities for acquisition related contingent consideration were recorded in connection with the acquisitions of Equator in 2013 and Mortgage Builder and Owners.com in 2014. The fair values of the liabilities for acquisition related contingent consideration were $11.6 million and $46.0 million as of December 31, 2014 and 2013, respectively. We measured the liabilities for acquisition related contingent consideration using Level 3 inputs as they are determined based on the present value of future estimated payments, which included sensitivities pertaining to discount rates and financial projections.

For the year ended December 31, 2014, the Company recorded acquisition related contingent consideration in connection with the acquisitions of Mortgage Builder and Owners.com of $1.9 million and $1.6 million, respectively (see Note 5). Additionally, the Company recorded a change in the fair value of the Equator acquisition related contingent consideration of $37.9 million (see Note 5), which is reflected as a reduction in selling, general and administrative expenses in the consolidated statements of operations.

For the year ended December 31, 2013, the Company recorded acquisition related contingent consideration of $46.0 million related to the acquisition of Equator. There were no gains or losses from the valuation of this contingent consideration during the year ended December 31, 2013.

There were no transfers in or out of the Level 3 fair value hierarchy for the years ended December 31, 2014 and 2013. There were no comparative amounts in 2012.

Fair Value Measurements on a Nonrecurring Basis

The Company recorded a $37.5 million impairment of its goodwill balance during the year ended December 31, 2014 based on a fair value measurement. The goodwill impairment charge is included in selling, general and administrative expenses in the consolidated statements of operations. This fair value measurement was based on inputs classified as Level 3 in the valuation hierarchy. See Note 5.

Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair value of financial instruments held by the Company at December 31, 2014 and 2013 that are not carried at fair value. The fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:



	December 31, 2014								December 31, 2013
(in thousands)	Carrying Amount		Fair Value						Carrying Amount		Fair Value
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3

Cash and cash equivalents	$	161,361	$	161,361	$	—	$	—	$	130,324	$	130,324	$	—	$	—
Restricted cash	3,022		3,022		—		—		1,620		1,620		—		—
Long-term debt	591,543		—		467,319		—		396,503		—		396,503		—

Our financial assets and liabilities primarily include cash and cash equivalents, restricted cash and long-term debt. Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair value due to the short-term nature of these instruments. The fair value for cash and cash equivalents and restricted cash was measured using Level 1 inputs. The fair value of our long-term debt as of December 31, 2014 is based on quoted market prices. However, we do not believe that there is an active market for our debt, based on the frequency of trading; therefore, the quoted prices are considered Level 2 inputs. Our prior year long-term debt was refinanced on December 9, 2013 (see Note 14), and therefore, represents fair value at December 31, 2013.

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

ACCOUNTS RECEIVABLE, NET

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



(in thousands)	2014			2013 ⁽¹⁾

Billed
Non-related parties	$	37,576		$	41,011
Ocwen	22,831			11,658
HLSS	86			83
AAMC	129			1,347
Residential	11,320			547
Other receivables	1,590			1,643
	73,532			56,289
Unbilled
Non-related parties	46,775			44,102
Ocwen	14,551			10,027
	134,858			110,418
Less: allowance for doubtful accounts	(22,675		)	(5,631		)

Total	$	112,183		$	104,787

⁽¹⁾December 31, 2013 accounts receivable has been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

Unbilled receivables 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. We also include in unbilled receivables amounts that are earned during a month and billed in the following month.

Bad debt expense amounted to $16.3 million, $2.5 million and $3.0 million for years ended December 31, 2014, 2013 and 2012, respectively, and is included in selling, general and administrative expenses in the consolidated statements of operations. Bad debt expense increased during 2014 driven primarily from the default management services business. A change in our customers’ business model and fourth quarter 2014 discussions with those customers led us to believe that a portion of the accounts receivable balance is no longer collectible.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2014

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Maintenance agreements, current portion	$	6,367	$	4,600
Income taxes receivable	5,258		1,645
Prepaid expenses	6,989		3,672
Other current assets	4,953		1,079

Total	$	23,567	$	10,996

⁽¹⁾December 31, 2013 prepaid expenses and other current assets have been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

Premises and equipment, net, which include amounts recorded under capital leases, consists of the following as of December 31:



(in thousands)	2014			2013

Computer hardware and software	$	140,799		$	103,400
Office equipment and other	36,032			28,057
Furniture and fixtures	12,231			8,391
Leasehold improvements	34,069			17,574
	223,131			157,422
Less: accumulated depreciation and amortization	(95,372		)	(70,170		)

Total	$	127,759		$	87,252

Depreciation and amortization expense, inclusive of capital leases, amounted to $29.0 million, $19.1 million and $12.8 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the consolidated statements of operations.

GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Goodwill primarily relates to the acquisitions of Equator, Owners.com and Mortgage Builder, discussed in Note 5, Springhouse, LLC and Tracmail acquired in 2011 and MPA acquired in 2010. Changes in goodwill during the years ended December 31, 2014 and 2013 are summarized below:



(in thousands)	Mortgage Services		Financial Services		Technology Services			Total

Balance, January 1, 2013	$	10,919	$	2,378	$	1,618		$	14,915
Acquisition of Equator	—		—		82,460			82,460
Acquisition of Homeward⁽¹⁾	2,039		—		—			2,039
Balance, December 31, 2013	12,958		2,378		84,078			99,414
Acquisition of Mortgage Builder	—		—		9,135			9,135
Acquisition of Owners.com	19,775		—		—			19,775
Impairment of Equator goodwill⁽²⁾	—		—		(37,473		)	(37,473		)

Balance, December 31, 2014	$	32,733	$	2,378	$	55,740		$	90,851

(1) December 31, 2013 goodwill has been revised to reflect a purchase accounting measurement period adjustment related to the

Homeward acquisition. See Note 5.

⁽²⁾See Note 5 for a discussion of the Equator goodwill impairment.

Intangible Assets, Net

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

Intangible assets, net consist of the following as of December 31, 2014 and 2013:



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	2014		2013		2014			2013			2014		2013

Definite lived intangible assets:
Trademarks and trade names	13	$	13,889	$	12,249	$	(5,016	)	$	(4,534	)	$	8,873	$	7,715
Customer related intangible assets	10	289,308		284,484		(79,606		)	(44,208		)	209,702		240,276
Operating agreement	20	35,000		35,000		(8,604		)	(6,854		)	26,396		28,146
Non-compete agreement	4	—		1,300		—			(1,275		)	—		25
Intellectual property	10	300		—		(25		)	—			275		—

Total		$	338,497	$	333,033	$	(93,251	)	$	(56,871	)	$	245,246	$	276,162

Amortization expense for definite lived intangible assets was $37.7 million, $28.2 million and $5.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expected annual definite lived intangible asset amortization for 2015 through 2019 is $39.4 million, $34.2 million, $30.0 million, $26.1 million and $23.0 million, respectively.

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

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

+ References + Details

INVESTMENT IN EQUITY AFFILIATE	12 Months Ended
INVESTMENT IN EQUITY AFFILIATE	Dec. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN EQUITY AFFILIATE	INVESTMENT IN EQUITY AFFILIATE Correspondent One purchased closed conforming 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 net loss on this investment using the equity method was $0.2 million and $1.2 million for the years ended December 31, 2013 and 2012, respectively (no comparative amount for 2014).

OTHER ASSETS

12 Months Ended

Dec. 31, 2014

OTHER ASSETS

Other assets consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Security deposits, net	$	7,277	$	7,314
Debt issuance costs, net	8,099		6,687
Maintenance agreements, non-current portion	3,324		1,465
Restricted cash	3,022		1,620
Other	545		572

Total	$	22,267	$	17,658

⁽¹⁾December 31, 2013 security deposits, net and other assets have been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

Debt issuance costs of $2.6 million and $3.2 million were capitalized for the years ended December 31, 2014 and 2013, respectively, in connection with issuing and refinancing our long-term debt (see Note 14).

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Accounts payable	$	22,880	$	15,171
Accrued expenses - general	25,500		20,945
Accrued salaries and benefits	44,150		30,011
Accrued expenses - Ocwen	6,193		—
Income taxes payable	7,643		11,211
Payable to Ocwen	5,400		7,361
Payable to AAMC	—		7

Total	$	111,766	$	84,706

⁽¹⁾December 31, 2013 payables have been revised to reflect purchase accounting measurement period adjustments related to the Homeward and Equator acquisitions. See Note 5.

Other current liabilities consist of the following as of December 31:



(in thousands)	2014		2013

Book overdrafts	$	4,788	$	4,232
Other	8,439		5,899

Total	$	13,227	$	10,131

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

LONG-TERM DEBT

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



(in thousands)	2014			2013

Senior secured term loan	$	591,543		$	396,503
Less: unamortized discount, net	(2,929		)	(1,247		)
Net long-term debt	588,614			395,256
Less: current portion	(5,945		)	(3,975		)

Long-term debt, less current portion	$	582,669		$	391,281

On November 27, 2012, Altisource Solutions S.à r.l., a wholly-owned subsidiary of the Company, 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 $200.0 million. The senior secured term loan was issued with an original issue discount of $2.0 million, resulting in net proceeds of $198.0 million, with the Company and certain wholly-owned subsidiaries acting as guarantors (collectively, the “Guarantors”).

On May 7, 2013, we amended the senior secured term loan agreement to increase the principal amount of the senior secured term loan by $200.0 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. Additionally, the Incremental Term Loan amended the senior secured term loan agreement to, among other changes, provide for an additional $200.0 million incremental term loan facility accordion and increase the maximum amount of Restricted Junior Payments (as defined in the senior secured term loan agreement) 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, including share repurchases by the Company.

On August 1, 2014, we entered into Amendment No. 3 (“Third Amendment”) to the senior secured term loan agreement to increase the principal amount of the term loan under the senior secured term loan agreement by $200.0 million, which was issued with a $2.0 million original issue discount, resulting in gross proceeds to the Company of $198.0 million. Additionally, the Third Amendment modified the senior secured term loan agreement to, among other changes, to re-establish the $200.0 million incremental term loan facility accordion and increase the maximum amount of permitted Restricted Junior Payments, including share repurchases, by $200.0 million.

After giving effect to the Third Amendment, the Refinancing Debt must be repaid in equal consecutive quarterly principal installments of $1.5 million, which commenced on September 30, 2014, with the balance due at maturity. 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 Refinancing 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 3.00 to 1.00. No mandatory prepayments were owed for the year ended December 31, 2014.

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, 2014 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. 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; make Restricted Junior Payments including share repurchases; 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 five 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 of 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, 2014, debt issuance costs were $8.1 million, net of $2.2 million of accumulated amortization. At December 31, 2013, debt issuance costs were $6.7 million, net of $1.0 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 $23.4 million, $20.3 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Maturities of our long-term debt are as follows:



(in thousands)

2015	$	5,945
2016	5,945
2017	5,945
2018	5,945
2019	5,945
Thereafter	561,818

	$	591,543

OTHER NON-CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2014

Other Liabilities Disclosure [Abstract]

OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consist of the following as of December 31:



(in thousands)	2014		2013

Acquisition related contingent consideration	$	11,616	$	42,946
Other non-current liabilities	9,032		2,530

Total	$	20,648	$	45,476

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common Stock

At December 31, 2014, we had 25.4 million shares authorized and issued, and 20.3 million shares of common stock outstanding. As of December 31, 2013, the Board of Directors had 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, and we had 100.0 million shares authorized, 25.4 million shares issued and 22.6 million shares outstanding. In 2014, this authorization to the Board of Directors expired. 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.

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, 2014, 2.5 million share-based awards were available for future grant under the Plan. Expired and forfeited awards are available for reissuance. Vesting and exercise of share-based awards are generally contingent on continued employment.

Stock Repurchase Plan

On February 28, 2014, our shareholders approved a new stock repurchase program, which replaced the previous stock repurchase program. Under the new program, we are authorized to purchase up to 3.4 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, in the open market, at a minimum price of $1.00 per share and a maximum price of $500.00 per share. This is in addition to amounts previously purchased under the prior programs. From authorization of the previous programs through December 31, 2014, we have purchased approximately 6.2 million shares of our common stock in the open market at an average price of $79.16 per share. We purchased 2.5 million shares of common stock at an average price of $103.67 per share during the year ended December 31, 2014 and 1.2 million shares at an average price of $116.99 per share during the year ended December 31, 2013. As of December 31, 2014, approximately 1.1 million shares of common stock remain available for repurchase under the new program. Our senior secured term loan limits the amount we can spend on share repurchases in any year and may prevent repurchases in certain circumstances. As of December 31, 2014, approximately $225 million was available to repurchase our common stock under our senior secured term loan.

Share-Based Compensation

We issue share-based awards in the form of stock options and certain other equity-based awards for certain employees and officers. We recorded share-based compensation expense of $2.2 million, $2.4 million and $3.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.

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, 2014.

Market-Based Options. These option grants have two components, each of which vests 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, 2014.

The Company granted 0.1 million stock options (at a weighted average exercise price of $84.61 per share), less than 0.1 million stock options (at a weighted average exercise price $104.84 per share) and 0.3 million stock options (at a weighted average exercise price of $69.48 per share) during the years ended December 31, 2014, 2013 and 2012, respectively.

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



	2014		2013		2012
	Black-Scholes	Binomial	Black-Scholes	Binomial	Black-Scholes	Binomial

Risk-free interest rate (%)	1.80 – 1.91	0.01 – 2.49	1.02 – 1.81	0.01 – 2.71	0.87 – 1.17	0.08 – 2.04
Expected stock price volatility (%)	37.57 – 45.15	38.38 – 45.15	36.35 – 36.76	36.40 – 36.80	34.22 – 34.65	34.20 – 34.60
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years)	6.25	—	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14	—	14
Fair value	$15.54 – $41.79	$12.66 – $33.62	$31.33 – $49.14	$16.12 – $41.72	$19.25 – $29.80	$9.98 – $22.76

The following table summarizes the weighted average fair value of stock options granted, the total intrinsic value of stock options exercised and the grant date fair value of stock options vested during the years ended December 31:



(in thousands, except per share amounts)	2014		2013		2012

Weighted average fair value at grant date per share	$	26.92	$	32.59	$	20.77
Intrinsic value of options exercised	10,250		40,761		17,598
Grant date fair value of options vested during the period	2,641		3,156		2,790

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

As of December 31, 2014, estimated unrecognized compensation costs related to share-based payments amounted to $3.4 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 3.3 years.

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



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

Outstanding at December 31, 2013	2,589,343		$	18.33	5.20	$	363,293
Granted	137,000		84.61
Exercised	(108,450	)	24.82
Forfeited	(16,001	)	73.14

Outstanding at December 31, 2014	2,601,892		21.21		4.44	47,805

Exercisable at December 31, 2014	2,279,555		13.82		3.91	47,430

The following table summarizes information about stock options outstanding and exercisable at December 31, 2014:



	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)	1,647,654	3.49	$	9.14	1,647,654	3.49	$	9.14
$10.01 — $20.00^(a)	97,737	1.80	12.45		97,737	1.80	12.45
$20.01 — $30.00^(a)	477,061	5.31	23.18		443,624	5.31	23.19
$30.01 — $40.00^(a)	48,309	6.27	33.31		28,319	6.37	33.10
$40.01 — $50.00^(a)	15,000	9.94	49.06		—	—	—
$50.01 — $60.00^(a)	10,000	7.37	53.00		6,250	7.37	53.00
$60.01 — $70.00^(a)	122,250	7.19	60.68		48,001	7.19	60.70
$70.01 — $80.00^(a)	25,600	9.86	72.78		—	—	—
$80.01 — $90.00^(a)	40,000	9.04	85.63		4,688	8.12	83.86
$90.01 — $100.00^(a)	73,281	9.31	94.32		1,407	8.16	93.88
$100.01 — $110.00^(a)	15,000	9.37	105.11		—	—	—
$120.01 — $130.00^(a)	30,000	8.62	125.98		1,875	8.62	125.98

	2,601,892				2,279,555

^(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

$170.01 — $180.00	12,500		—
$180.01 — $190.00	12,500		40,875
Over $190.00	37,500		37,650

Total	62,500		78,525

Weighted average share price	$	100.37	$	78.56

COST OF REVENUE

12 Months Ended

Dec. 31, 2014

Cost of Revenue [Abstract]

COST OF REVENUE

Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service and operations roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications expenses as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows for the years ended December 31:



(in thousands)	2014		2013		2012

Compensation and benefits	$	255,889	$	156,812	$	113,145
Outside fees and services	243,325		193,233		123,338
Reimbursable expenses	137,634		102,478		96,147
Technology and telecommunications	48,834		25,534		23,404
Depreciation and amortization	21,498		14,423		10,167

Total	$	707,180	$	492,480	$	366,201

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

12 Months Ended

Dec. 31, 2014

Selling, General and Administrative Expense [Abstract]

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses include payroll for personnel employed in executive, finance, legal, compliance, human resources, vendor management, risk and operational effectiveness roles. This category also includes occupancy costs, professional fees and depreciation and amortization on non-operating assets. The components of selling, general and administrative expenses were as follows for the years ended December 31:



(in thousands)	2014			2013		2012

Compensation and benefits	$	45,098		$	27,864	$	21,166
Professional services	18,598			8,022		9,864
Occupancy related costs	38,262			28,424		24,041
Amortization of intangible assets	37,680			28,176		5,030
Depreciation and amortization	7,548			4,633		2,609
Change in the fair value of Equator Earn Out	(37,924		)	—		—
Goodwill impairment	37,473			—		—
Marketing costs	24,130			5,028		2,500
Other	30,417			11,663		9,502

Total	$	201,282		$	113,810	$	74,712

OTHER INCOME (EXPENSE), NET

12 Months Ended

Dec. 31, 2014

Other Income and Expenses [Abstract]

OTHER INCOME (EXPENSE), NET

Other income (expense), net consists of the following for the years ended December 31:



(in thousands)	2014		2013			2012

Loss in equity affiliate, including impairment loss	$	—	$	(176	)	$	(1,741	)
Interest income	103		899			222
Other, net	71		(166		)	(69		)

Total	$	174	$	557		$	(1,588	)

Loss in equity affiliates primarily represents our proportional share of the losses in Correspondent One and impairment loss on the investment (see Note 11).

INCOME TAXES

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income before income taxes and non-controlling interests consist of the following for the year ended December 31:



(in thousands)	2014		2013		2012

Domestic - Luxembourg	$	124,181	$	122,722	$	107,498
Foreign - U.S.	9,575		11,125		4,915
Foreign - Non-U.S.	13,509		8,486		12,236

Total	$	147,265	$	142,333	$	124,649

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



(in thousands)	2014			2013			2012

Current:
Domestic - Luxembourg	$	4,415		$	2,516		$	2,841
Foreign - U.S. Federal	75			6			—
Foreign - U.S. State	476			403			353
Foreign - Non-U.S.	4,046			3,600			2,552

	$	9,012		$	6,525		$	5,746
Deferred:
Domestic - Luxembourg	$	—		$	—		$	388
Foreign - U.S. Federal	1,756			2,506			2,419
Foreign - U.S. State	(281		)	84			(23		)
Foreign - Non-U.S.	(309		)	(575		)	208

	$	1,166		$	2,015		$	2,992

Total	$	10,178		$	8,540		$	8,738

We received a tax ruling in June 2010 regarding the treatment of certain intangibles that exist for purposes of determining the Company’s taxable income, which expires in 2019 unless extended or renewed. 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 tax ruling and differing tax rates in multiple jurisdictions.

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 $0.9 million ($0.04 per diluted share), $0.2 million ($0.01 per diluted share) and $1.5 million ($0.06 per diluted share) for the years ended December 31, 2014, 2013 and 2012, respectively.

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)	2014			2013

Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$	72		$	43
Accrued expenses	5,165			3,183
Current deferred tax liabilities:
Prepaid expenses	(250		)	(389		)

Current deferred tax assets, net	$	4,987		$	2,837

Non-current deferred tax assets:
Net operating loss carryforwards	$	13,940		$	12,439
U.S. federal and state tax credits	1,202			—
Non-U.S. deferred tax assets	1,780			1,471
Share-based compensation	856			784
Other	—			7
Non-current deferred tax liabilities:
Intangible assets	(5,302		)	(6,035		)
Depreciation	(11,878		)	(4,855		)
Other	(177		)	—
	421			3,811
Valuation allowance	(3,115		)	(3,189		)

Non-current deferred tax assets, net	$	—		$	622

Non-current deferred tax liabilities, net	$	(2,694	)	$	—

Net deferred tax assets	$	2,293		$	3,459

Total deferred tax assets	$	19,900		$	14,738

Total deferred tax liabilities	$	(17,607	)	$	(11,279	)

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 net decrease in valuation allowance of $0.1 million during 2014 relates to an increase in state and foreign losses generated in the current year and a release of prior year valuation allowance related to certain state losses the Company believes will more likely than not be realized.

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, 2014 were approximately $48.0 million, which if distributed would result in additional tax due totaling approximately $9.6 million.

The Company had a deferred tax asset of $13.9 million as of December 31, 2014 relating to the U.S. federal, state and foreign net operating losses compared to $12.4 million as of December 31, 2013. Of this amount, $1.8 million as of December 31, 2014 related to state net operating losses subject to a valuation allowance compared to $1.4 million as of December 31, 2013, and $1.7 million as of December 31, 2014 related to Luxembourg net operating losses subject to a valuation allowance compared to $1.8 million as of December 31, 2013. The Company has not recognized the U.S. federal net operating loss carryforwards of $13.6 million as of December 31, 2014 related to stock options exercised compared to $9.5 million as of December 31, 2013. 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 $35.7 million as of December 31, 2014 compared to $32.6 million as of December 31, 2013. Of this amount, $12.2 million as of December 31, 2014 compared to $13.5 million as of December 31, 2013 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.

In addition, the Company had a deferred tax asset of $1.2 million as of December 31, 2014 relating to the U.S. federal and state tax credits (no comparative amount for 2013). The U.S. federal credit carryforward is scheduled to expire between 2032 and 2034. The state tax credit carryforwards are scheduled to expire between 2017 and 2024.

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. 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:



	2014		2013		2012

Statutory tax rate	29.22	%	29.22	%	28.80	%
Permanent difference related to Luxembourg intangible assets	(22.60	)	(23.59	)	(21.99	)
Change in valuation allowance	(0.05	)	0.76		0.16
State tax expense	0.03		0.24		0.17
Tax credits	(0.71	)	—		—
Uncertain taxes	0.88		—		—
Other	0.14		(0.63	)	(0.13	)

Effective tax rate	6.91	%	6.00	%	7.01	%

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. The Company has open tax years in the United States (2011 through 2013), India (2010 through 2014) and Luxembourg (2010 through 2013).

The following table reconciles the amount of unrecognized tax benefits for the year ended December 31, 2014 (no comparative amounts for 2013):



(in thousands)	2014

Amount of unrecognized tax benefits as of the beginning of the year	$	—
Increases as a result of tax positions taken in a prior period	1,153

Amount of unrecognized tax benefit as of the end of the year	$	1,153

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate is $1.3 million as of December 31, 2014 (no comparative amount for 2013). The Company recognizes interest, if any, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2014, the Company had recorded accrued interest and penalties related to unrecognized tax benefits of $0.1 million (no comparative amount for 2013).

Due to an expected settlement within the next twelve months, an estimated $1.3 million of unrecognized tax benefits may be recognized during that twelve month period.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

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

Basic and diluted EPS are calculated as follows for the years ended December 31:



(in thousands, except per share data)	2014		2013		2012

Net income attributable to Altisource	$	134,484	$	129,973	$	110,627

Weighted average common shares outstanding, basic	21,625		23,072		23,358
Dilutive effect of stock options	2,009		1,981		1,604

Weighted average common shares outstanding, diluted	23,634		25,053		24,962

Earnings per share:
Basic	$	6.22	$	5.63	$	4.74

Diluted	$	5.69	$	5.19	$	4.43

For each of the years ended December 31, 2014, 2013 and 2012, less than 0.1 million options that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS are 0.1 million, 0.1 million and 0.3 million options for the years ended December 31, 2014, 2013 and 2012, respectively, granted for shares that are issuable upon the achievement of certain market and performance criteria related to our common stock price and an annualized rate of return to investors that have not yet been met.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS

Litigation

From time to time, we are involved in legal and administrative proceedings arising in the course of our business. We record a liability for these matters if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range.

On September 8, 2014, the West Palm Beach Firefighter’s Pension Fund filed a putative securities class action suit against Altisource and certain of its officers and directors in the United States District Court for the Southern District of Florida alleging violations of the Securities Exchange Act of 1934 and Rule 10b-5 with regard to disclosures concerning pricing and transactions with related parties that allegedly inflated Altisource share prices. The court subsequently appointed the Pension Fund of the International Union of Painters and Allied Trades District Council 35 and the Annuity Fund of the International Union of Painters and Allied Trades District Council 35 as Lead Plaintiffs. On January 30, 2015, Lead Plaintiffs filed an amended class action complaint which adds Ocwen Financial Corporation as a defendant, and seeks a determination that the action may be maintained as a class action on behalf of purchasers of the Company’s securities between April 25, 2013 and December 21, 2014 and an unspecified amount of damages. Altisource intends to vigorously defend this lawsuit. Altisource is unable to predict the outcome of this lawsuit or reasonably estimate the potential loss, if any, arising from the suit, given that motions to dismiss have not yet been filed or adjudicated, discovery has not commenced and significant legal and factual issues remain to be determined.

In addition to the matter referenced above, we are involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows.

Regulatory Matters

Our business is subject to regulation and oversight by federal, state and local governmental authorities. We periodically receive subpoenas, civil investigative demands or other requests for information from regulatory agencies in connection with their regulatory or investigative authority. We are currently responding to such inquiries from federal and state agencies relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries.

Ocwen Related Matters

Ocwen is our largest customer and 60% of our 2014 revenue was related party revenue from Ocwen. Additionally, 24% of our 2014 revenue was earned on the portfolios serviced by Ocwen, but is not considered related party revenue because a party other than Ocwen selects Altisource as the service provider. Ocwen has been and is subject to a number of pending federal and state regulatory investigations, inquiries and requests for information that have or could result in adverse regulatory actions against Ocwen. For example, as a result of various regulatory actions, Ocwen is (i) subject to an independent auditor’s review of compliance with California servicing laws and has agreed not to obtain any new servicing rights in California until the regulator is satisfied with future document requests, (ii) operating under the oversight of an on-site operations monitor imposed by New York Department of Financial Services (“NYDFS”), which is assessing the adequacy and effectiveness of Ocwen’s operations, including information technology systems, (iii) required to perform benchmarking pricing studies for transactions with related parties, which are subject to periodic review by the monitor imposed by the NYDFS and (iv) subject to requirements under an agreement with the Consumer Finance Protection Bureau and various states attorneys general and agencies that imposed specific servicing guidelines and oversight by an independent national monitor, who recently reported they were investigating the reliability of information Ocwen has provided. In addition to these matters, Ocwen continues to be subject to other regulatory investigations, inquiries and requests for information and pending legal proceedings, and Ocwen may become subject to future federal and state regulatory investigations, inquiries and requests for information, any of which could also result in adverse regulatory or other actions against Ocwen.

As a result of these various difficulties faced by Ocwen, its debt and servicer ratings have been downgraded. Further, certain bondholders of Ocwen-serviced residential mortgage-backed securities (“RMBS”) alleged that Ocwen, as servicer of certain mortgage-backed securities trusts, defaulted on these servicing agreements.

Ocwen relies, in part, on HLSS to finance its operations. For a significant portion of Ocwen-serviced non-government-sponsored enterprise (“non-GSE”) loans, HLSS owns (1) the rights to receive the servicing fees that Ocwen is entitled to receive and (2) associated servicing advances. As a result of certain of the foregoing matters, HLSS has received notices of default with respect to certain of its debt financing and has received demands from a shareholder that servicing be transferred away from Ocwen.

The foregoing may have significant and varied effects on Ocwen’s business and our continuing relationships with Ocwen. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services (including information technology services), it may be required to seek changes to its existing pricing structure with related parties or otherwise, it may lose or sell some or all of its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing licenses. Additional regulatory actions may impose additional restrictions on or require changes in Ocwen’s business that would require it to sell assets or change its business operations. Further, Ocwen’s ability to finance its operations and repay maturing obligations rests in large part on its ability and the ability of HLSS to continue to borrow money, which also may be affected by any or all of the circumstances described above. Any or all of these effects could result in our eventual loss of Ocwen as a customer or a reduction in the volume of services they purchase from us or the loss of other customers.

If any of the following events occurred, Altisource’s revenue would be significantly lower and our results of operations would be materially adversely affected, including from the impairment or write-off of goodwill, intangible assets, property and equipment, other assets and accounts receivable:


•	Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us


•	Ocwen loses or sells a significant portion or all of its non-GSE servicing rights or subservicing arrangements


•	Ocwen loses its state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio


•	The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue

Management cannot predict the outcome of the Ocwen related matters or the impact they may have on Altisource. However, in the event these Ocwen related matters materially negatively impact Altisource, we believe the impact to Altisource would occur over an extended period of time and the variable nature of our cost structure allows us to realign our cost structure in line with remaining revenue.

In this regard, we have a plan that allows us to efficiently execute on this realignment. We believe that transfers of Ocwen’s servicing rights to a successor servicer(s) would take an extended period of time because of the approval required from many parties, including regulators, rating agencies, RMBS trustees, lenders and others. During this period of time, we believe we would continue to generate revenue from the services we provide to the portfolio. Additionally, we have several growth initiatives that focus on diversifying and growing our revenue and customer base. Our major growth initiatives include:


•	Attracting new clients to our comprehensive default related businesses


•	Growing our origination services and technology businesses


•	Expanding our innovative online real estate marketplaces


•	Growing our property management and renovation services businesses

We have an established sales and marketing strategy to support each of these initiatives.

Management believes our plans, together with current liquidity and cash flows from operations will be sufficient to meet working capital, capital expenditures, debt service and other cash needs for at least the next year. However, there can be no assurance that our plans would be successful or our operations would be profitable.

Leases

We lease certain premises and equipment under various operating lease agreements. Future minimum lease payments at December 31, 2014 under non-cancelable operating leases with an original term exceeding one year are as follows:



(in thousands)	Operating lease obligations

2015	$	17,924
2016	15,357
2017	11,841
2018	7,941
2019	5,060
Thereafter	5,355

	$	63,478

Total operating lease expense, net of sublease income, was $20.1 million, $12.8 million and $10.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. The operating leases generally relate to office locations and reflect customary lease terms which range from 1 to 10 years in duration.

In connection with the acquisition of Equator (see Note 5), we executed a standby letter of credit in the amount of $1.5 million related to an office lease, secured by a restricted cash balance. In addition, we executed standby letters of credit totaling $1.8 million for three other office leases.

Escrow and Trust Balances

We hold customers’ assets in escrow and trust accounts at various financial institutions pending completion of certain real estate activities. We also hold cash in trust accounts at various financial institutions where contractual obligations mandate maintaining dedicated bank accounts for Financial Services collections. These amounts are held in escrow and trust accounts for limited periods of time and are not included in the consolidated balance sheets. Amounts held in escrow and trust accounts were $62.5 million and $71.8 million at December 31, 2014 and 2013, respectively.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

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 (our Chief Operating Decision Maker) to evaluate operating performance and to assess the allocation of our resources.

We classify our businesses into three reportable segments. The Mortgage Services segment provides services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators, investors and other sellers of 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, insurance and hotel industries. The Technology Services segment principally consists of our REALSuite software applications, Equator’s software applications, Mortgage Builder’s software applications and 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 and foreclosure related activities and purchase related services from vendors. Mortgage Builder provides mortgage origination and servicing software applications. In addition, Corporate Items and Eliminations include eliminations of transactions between the reportable segments, interest expense and costs related to corporate support functions including executive, finance, legal, compliance, human resources, vendor management, risk and operational effectiveness and marketing.

Financial information for our segments is as follows:



	For the year ended December 31, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	790,076	$	98,499	$	230,367		$	(40,026	)	$	1,078,916
Cost of revenue	484,512		64,338		194,301			(35,971		)	707,180
Gross profit	305,564		34,161		36,066			(4,055		)	371,736
Selling, general and administrative expenses	94,678		18,791		31,950			55,863			201,282
Income from operations	210,886		15,370		4,116			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)

Income before income taxes and non-controlling interests	$	211,090	$	15,432	$	4,085		$	(83,342	)	$	147,265



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



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

Total assets:
December 31, 2014	$	313,206	$	56,096	$	250,403	$	168,516	$	788,221
December 31, 2013	310,253		55,930		277,941		85,928		730,052

Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:



(in thousands)	December 31, 2014		December 31, 2013

United States	$	88,274	$	63,615
India	27,082		16,404
Luxembourg	9,059		3,217
Philippines	3,344		4,016

Total	$	127,759	$	87,252

Quarterly Financial Information Disclosure [Abstract]

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
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2014

QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables contain selected unaudited statement of operations information for each quarter of 2014 and 2013. 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.



	2014 quarter ended ⁽¹⁾⁽²⁾
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	239,269	$	296,072	$	287,688	$	255,887
Gross profit	91,464		112,073		98,964		69,235
Income (loss) before income taxes and non-controlling interests	43,201		58,225		45,867		(28		)
Net income (loss)	40,146		54,732		43,115		(906		)
Net income (loss) attributable to Altisource	39,631		54,101		42,287		(1,535		)

Earnings (loss) per share:
Basic	$	1.76	$	2.45	$	1.96	$	(0.08	)
Diluted	$	1.61	$	2.24	$	1.79	$	(0.08	)

Weighted average shares outstanding:
Basic	22,509		22,089		21,626		20,306
Diluted	24,662		24,166		23,640		20,306



	2013 quarter ended ⁽¹⁾⁽³⁾
(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

^{___________________________________________________}

⁽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⁾We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).

⁽³⁾We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS (Notes)

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

For the years ended December 31, 2014, 2013 and 2012:



			Additions
	Balance at				Charged to
	Beginning of		Charged to		Other Accounts		Deductions		Balance at
(in thousands)	Period		Expenses		Note (a)(b)		Note (c)(d)		End of Period

Deductions from asset accounts:

Allowance for doubtful accounts:

Year 2014	$	5,631	$	16,257	$	1,399	$	612	$	22,675
Year 2013	3,274		2,549		—		192		5,631
Year 2012	2,047		3,049		—		1,822		3,274

Valuation allowance for deferred tax assets:

Year 2014	$	3,189	$	—	$	—	$	74	$	3,115
Year 2013	2,413		—		776		—		3,189
Year 2012	2,209		—		204		—		2,413

______________________________________

(a) Allowance for doubtful accounts primarily includes amounts previously written off which were credited directly to this account when recovered.

(b)Valuation allowance for deferred tax assets includes current year increase to valuation allowance charged to equity and reclassifications from other balance sheet accounts.

(d) Reductions to valuation allowances related to deferred tax assets.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Accounting

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

Debt Issuance Costs and Long-Term Debt

Intangible Assets, Net

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

Level 1 — Quoted prices in active markets for identical assets and liabilities

Level 2 — Observable inputs other than quoted prices included in Level 1

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

Functional Currency

Defined Contribution 401(k) Plan

Share-Based Compensation

Earnings Per Share

Revenue Recognition

Income Taxes

Adoption/Future Adoption of New Accounting Pronouncements

Future Adoption of New Accounting Pronouncement

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Schedule of estimated useful lives using the straight-line method

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

SEPARATION OF RESIDENTIAL ASSET BUSINESSES (Tables)

12 Months Ended

Dec. 31, 2014

SEPARATION OF RESIDENTIAL ASSET BUSINESSES

Schedule of carrying value of the net assets transferred

The carrying value of the net assets transferred by Altisource was as follows:



(in thousands)	Residential		AAMC		Total

Cash	$	100,000	$	5,000	$	105,000

Reduction in Altisource retained earnings	$	100,000	$	5,000	$	105,000

TRANSACTIONS WITH RELATED PARTIES (Tables)

12 Months Ended

Dec. 31, 2014

Related party revenue from Ocwen as a percentage of segment and consolidated revenue was as follows for the years ended December 31:



	2014	2013	2012

Mortgage Services	67%	71%	68%
Financial Services	27%	30%	<1%
Technology Services	41%	49%	42%
Consolidated revenue	60%	65%	59%

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2014

Business Acquisition, Pro Forma Information



	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

Schedule of the adjusted allocation of the purchase price

The final adjusted allocation of the purchase price is as follows:



(in thousands)

Premises and equipment	$	1,559
Customer relationship	75,609
Goodwill	2,039
	79,207
Accounts payable and accrued expenses	(3,390		)

Purchase price	$	75,817

Schedule of estimated life of identified assets acquired



		Estimated life (in years)

Premises and equipment		3 - 5
Customer relationship		7

Schedule of the adjusted allocation of the purchase price

The final adjusted allocation of the purchase price is as follows:



	Initial purchase price allocation			Adjustments			Adjusted purchase price allocation
(in thousands)	Initial purchase price allocation			Adjustments			Adjusted purchase price allocation

Accounts receivable	$	9,293		$	3,490		$	12,783
Prepaid expenses and other current assets	954			(393		)	561
Premises and equipment	16,974			—			16,974
Customer relationships, trademarks and trade names	43,393			—			43,393
Goodwill	82,460			—			82,460
Other non-current assets	242			78			320
Assets acquired	153,316			3,175			156,491
Accounts payable and accrued expenses	(7,232		)	536			(6,696		)
Deferred revenue	(36,689		)	—			(36,689		)
Liabilities assumed	(43,921		)	536			(43,385		)

Purchase price	$	109,395		$	3,711		$	113,106

Schedule of estimated life of identified assets acquired



		Estimated life (in years)

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

Schedule of Business Acquisitions by Acquisition Change in Contingent Consideration and Goodwill Impairment



(in thousands)

Change in the fair value of Equator Earn Out	$	(37,924	)
Goodwill impairment	37,473

	$	(451	)

Mortgage Builder

Schedule of the adjusted allocation of the purchase price

The preliminary allocation of the purchase price is as follows:



(in thousands)

Cash	$	726
Accounts receivable, net	1,120
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationship	4,824
Goodwill	9,135
	18,114
Accounts payable and accrued expenses	(881		)

Purchase price	$	17,233

Owners.com

Schedule of the adjusted allocation of the purchase price

The preliminary allocation of the purchase price is as follows:



(in thousands)

Accounts receivable, net	$	41
Prepaid expenses	32
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
	21,780
Accounts payable	(41		)

Purchase price	$	21,739

FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair value methodologies

The fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:



	December 31, 2014								December 31, 2013
(in thousands)	Carrying Amount		Fair Value						Carrying Amount		Fair Value
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3

Cash and cash equivalents	$	161,361	$	161,361	$	—	$	—	$	130,324	$	130,324	$	—	$	—
Restricted cash	3,022		3,022		—		—		1,620		1,620		—		—
Long-term debt	591,543		—		467,319		—		396,503		—		396,503		—

ACCOUNTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of accounts receivable, net

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



(in thousands)	2014			2013 ⁽¹⁾

Billed
Non-related parties	$	37,576		$	41,011
Ocwen	22,831			11,658
HLSS	86			83
AAMC	129			1,347
Residential	11,320			547
Other receivables	1,590			1,643
	73,532			56,289
Unbilled
Non-related parties	46,775			44,102
Ocwen	14,551			10,027
	134,858			110,418
Less: allowance for doubtful accounts	(22,675		)	(5,631		)

Total	$	112,183		$	104,787

⁽¹⁾December 31, 2013 accounts receivable has been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Maintenance agreements, current portion	$	6,367	$	4,600
Income taxes receivable	5,258		1,645
Prepaid expenses	6,989		3,672
Other current assets	4,953		1,079

Total	$	23,567	$	10,996

⁽¹⁾December 31, 2013 prepaid expenses and other current assets have been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Schedule of premises and equipment, net

Premises and equipment, net, which include amounts recorded under capital leases, consists of the following as of December 31:



(in thousands)	2014			2013

Computer hardware and software	$	140,799		$	103,400
Office equipment and other	36,032			28,057
Furniture and fixtures	12,231			8,391
Leasehold improvements	34,069			17,574
	223,131			157,422
Less: accumulated depreciation and amortization	(95,372		)	(70,170		)

Total	$	127,759		$	87,252

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of changes in goodwill



(in thousands)	Mortgage Services		Financial Services		Technology Services			Total

Balance, January 1, 2013	$	10,919	$	2,378	$	1,618		$	14,915
Acquisition of Equator	—		—		82,460			82,460
Acquisition of Homeward⁽¹⁾	2,039		—		—			2,039
Balance, December 31, 2013	12,958		2,378		84,078			99,414
Acquisition of Mortgage Builder	—		—		9,135			9,135
Acquisition of Owners.com	19,775		—		—			19,775
Impairment of Equator goodwill⁽²⁾	—		—		(37,473		)	(37,473		)

Balance, December 31, 2014	$	32,733	$	2,378	$	55,740		$	90,851

(1) December 31, 2013 goodwill has been revised to reflect a purchase accounting measurement period adjustment related to the

Homeward acquisition. See Note 5.

⁽²⁾See Note 5 for a discussion of the Equator goodwill impairment.

Schedule of intangible assets, net



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	2014		2013		2014			2013			2014		2013

Definite lived intangible assets:
Trademarks and trade names	13	$	13,889	$	12,249	$	(5,016	)	$	(4,534	)	$	8,873	$	7,715
Customer related intangible assets	10	289,308		284,484		(79,606		)	(44,208		)	209,702		240,276
Operating agreement	20	35,000		35,000		(8,604		)	(6,854		)	26,396		28,146
Non-compete agreement	4	—		1,300		—			(1,275		)	—		25
Intellectual property	10	300		—		(25		)	—			275		—

Total		$	338,497	$	333,033	$	(93,251	)	$	(56,871	)	$	245,246	$	276,162

OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of other assets

Other assets consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Security deposits, net	$	7,277	$	7,314
Debt issuance costs, net	8,099		6,687
Maintenance agreements, non-current portion	3,324		1,465
Restricted cash	3,022		1,620
Other	545		572

Total	$	22,267	$	17,658

⁽¹⁾December 31, 2013 security deposits, net and other assets have been revised to reflect a purchase accounting measurement period adjustment related to the Equator acquisition. See Note 5.

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

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

Accounts payable and accrued expenses consist of the following as of December 31:



(in thousands)	2014		2013 ⁽¹⁾

Accounts payable	$	22,880	$	15,171
Accrued expenses - general	25,500		20,945
Accrued salaries and benefits	44,150		30,011
Accrued expenses - Ocwen	6,193		—
Income taxes payable	7,643		11,211
Payable to Ocwen	5,400		7,361
Payable to AAMC	—		7

Total	$	111,766	$	84,706

⁽¹⁾December 31, 2013 payables have been revised to reflect purchase accounting measurement period adjustments related to the Homeward and Equator acquisitions. See Note 5.

Schedule of other current liabilities

Other current liabilities consist of the following as of December 31:



(in thousands)	2014		2013

Book overdrafts	$	4,788	$	4,232
Other	8,439		5,899

Total	$	13,227	$	10,131

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of long-term debt

Maturities of our long-term debt are as follows:



(in thousands)

2015	$	5,945
2016	5,945
2017	5,945
2018	5,945
2019	5,945
Thereafter	561,818

	$	591,543

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



(in thousands)	2014			2013

Senior secured term loan	$	591,543		$	396,503
Less: unamortized discount, net	(2,929		)	(1,247		)
Net long-term debt	588,614			395,256
Less: current portion	(5,945		)	(3,975		)

Long-term debt, less current portion	$	582,669		$	391,281

Other Liabilities Disclosure [Abstract]

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

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

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

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

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

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

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

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

+ Details

OTHER NON-CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of other non current liabilities

Other non-current liabilities consist of the following as of December 31:



(in thousands)	2014		2013

Acquisition related contingent consideration	$	11,616	$	42,946
Other non-current liabilities	9,032		2,530

Total	$	20,648	$	45,476

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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



	2014		2013		2012
	Black-Scholes	Binomial	Black-Scholes	Binomial	Black-Scholes	Binomial

Risk-free interest rate (%)	1.80 – 1.91	0.01 – 2.49	1.02 – 1.81	0.01 – 2.71	0.87 – 1.17	0.08 – 2.04
Expected stock price volatility (%)	37.57 – 45.15	38.38 – 45.15	36.35 – 36.76	36.40 – 36.80	34.22 – 34.65	34.20 – 34.60
Expected dividend yield	—	—	—	—	—	—
Expected option life (in years)	6.25	—	6.25	—	6.25	—
Contractual life (in years)	—	14	—	14	—	14
Fair value	$15.54 – $41.79	$12.66 – $33.62	$31.33 – $49.14	$16.12 – $41.72	$19.25 – $29.80	$9.98 – $22.76

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



(in thousands, except per share amounts)	2014		2013		2012

Weighted average fair value at grant date per share	$	26.92	$	32.59	$	20.77
Intrinsic value of options exercised	10,250		40,761		17,598
Grant date fair value of options vested during the period	2,641		3,156		2,790

Summary of the activity of the entity's stock options

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



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

Outstanding at December 31, 2013	2,589,343		$	18.33	5.20	$	363,293
Granted	137,000		84.61
Exercised	(108,450	)	24.82
Forfeited	(16,001	)	73.14

Outstanding at December 31, 2014	2,601,892		21.21		4.44	47,805

Exercisable at December 31, 2014	2,279,555		13.82		3.91	47,430

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table summarizes information about stock options outstanding and exercisable at December 31, 2014:



	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)	1,647,654	3.49	$	9.14	1,647,654	3.49	$	9.14
$10.01 — $20.00^(a)	97,737	1.80	12.45		97,737	1.80	12.45
$20.01 — $30.00^(a)	477,061	5.31	23.18		443,624	5.31	23.19
$30.01 — $40.00^(a)	48,309	6.27	33.31		28,319	6.37	33.10
$40.01 — $50.00^(a)	15,000	9.94	49.06		—	—	—
$50.01 — $60.00^(a)	10,000	7.37	53.00		6,250	7.37	53.00
$60.01 — $70.00^(a)	122,250	7.19	60.68		48,001	7.19	60.70
$70.01 — $80.00^(a)	25,600	9.86	72.78		—	—	—
$80.01 — $90.00^(a)	40,000	9.04	85.63		4,688	8.12	83.86
$90.01 — $100.00^(a)	73,281	9.31	94.32		1,407	8.16	93.88
$100.01 — $110.00^(a)	15,000	9.37	105.11		—	—	—
$120.01 — $130.00^(a)	30,000	8.62	125.98		1,875	8.62	125.98

	2,601,892				2,279,555

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

Schedule of Share Based Compensation Shares Authorized under Stock Option Plans by Vesting Price Range [Table Text Block]

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

$170.01 — $180.00	12,500		—
$180.01 — $190.00	12,500		40,875
Over $190.00	37,500		37,650

Total	62,500		78,525

Weighted average share price	$	100.37	$	78.56

COST OF REVENUE (Tables)

12 Months Ended

Dec. 31, 2014

Cost of Revenue [Abstract]

Schedule of components of cost of revenue

The components of cost of revenue were as follows for the years ended December 31:



(in thousands)	2014		2013		2012

Compensation and benefits	$	255,889	$	156,812	$	113,145
Outside fees and services	243,325		193,233		123,338
Reimbursable expenses	137,634		102,478		96,147
Technology and telecommunications	48,834		25,534		23,404
Depreciation and amortization	21,498		14,423		10,167

Total	$	707,180	$	492,480	$	366,201

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)

12 Months Ended

Dec. 31, 2014

Selling, General and Administrative Expense [Abstract]

Schedule of the components of selling, general and administrative expenses

The components of selling, general and administrative expenses were as follows for the years ended December 31:



(in thousands)	2014			2013		2012

Compensation and benefits	$	45,098		$	27,864	$	21,166
Professional services	18,598			8,022		9,864
Occupancy related costs	38,262			28,424		24,041
Amortization of intangible assets	37,680			28,176		5,030
Depreciation and amortization	7,548			4,633		2,609
Change in the fair value of Equator Earn Out	(37,924		)	—		—
Goodwill impairment	37,473			—		—
Marketing costs	24,130			5,028		2,500
Other	30,417			11,663		9,502

Total	$	201,282		$	113,810	$	74,712

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Dec. 31, 2014

Other Income and Expenses [Abstract]

Schedule of other income (expense), net

Other income (expense), net consists of the following for the years ended December 31:



(in thousands)	2014		2013			2012

Loss in equity affiliate, including impairment loss	$	—	$	(176	)	$	(1,741	)
Interest income	103		899			222
Other, net	71		(166		)	(69		)

Total	$	174	$	557		$	(1,588	)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes and non-controlling interests consist of the following for the year ended December 31:



(in thousands)	2014		2013		2012

Domestic - Luxembourg	$	124,181	$	122,722	$	107,498
Foreign - U.S.	9,575		11,125		4,915
Foreign - Non-U.S.	13,509		8,486		12,236

Total	$	147,265	$	142,333	$	124,649

Schedule of income tax provision

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



(in thousands)	2014			2013			2012

Current:
Domestic - Luxembourg	$	4,415		$	2,516		$	2,841
Foreign - U.S. Federal	75			6			—
Foreign - U.S. State	476			403			353
Foreign - Non-U.S.	4,046			3,600			2,552

	$	9,012		$	6,525		$	5,746
Deferred:
Domestic - Luxembourg	$	—		$	—		$	388
Foreign - U.S. Federal	1,756			2,506			2,419
Foreign - U.S. State	(281		)	84			(23		)
Foreign - Non-U.S.	(309		)	(575		)	208

	$	1,166		$	2,015		$	2,992

Total	$	10,178		$	8,540		$	8,738

Summary of tax effects of the temporary differences

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



(in thousands)	2014			2013

Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$	72		$	43
Accrued expenses	5,165			3,183
Current deferred tax liabilities:
Prepaid expenses	(250		)	(389		)

Current deferred tax assets, net	$	4,987		$	2,837

Non-current deferred tax assets:
Net operating loss carryforwards	$	13,940		$	12,439
U.S. federal and state tax credits	1,202			—
Non-U.S. deferred tax assets	1,780			1,471
Share-based compensation	856			784
Other	—			7
Non-current deferred tax liabilities:
Intangible assets	(5,302		)	(6,035		)
Depreciation	(11,878		)	(4,855		)
Other	(177		)	—
	421			3,811
Valuation allowance	(3,115		)	(3,189		)

Non-current deferred tax assets, net	$	—		$	622

Non-current deferred tax liabilities, net	$	(2,694	)	$	—

Net deferred tax assets	$	2,293		$	3,459

Total deferred tax assets	$	19,900		$	14,738

Total deferred tax liabilities	$	(17,607	)	$	(11,279	)

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

The following table reconciles the income tax provision to the Luxembourg statutory income tax rate for the years ended December 31:



	2014		2013		2012

Statutory tax rate	29.22	%	29.22	%	28.80	%
Permanent difference related to Luxembourg intangible assets	(22.60	)	(23.59	)	(21.99	)
Change in valuation allowance	(0.05	)	0.76		0.16
State tax expense	0.03		0.24		0.17
Tax credits	(0.71	)	—		—
Uncertain taxes	0.88		—		—
Other	0.14		(0.63	)	(0.13	)

Effective tax rate	6.91	%	6.00	%	7.01	%

Summary of Income Tax Contingencies

The following table reconciles the amount of unrecognized tax benefits for the year ended December 31, 2014 (no comparative amounts for 2013):



(in thousands)	2014

Amount of unrecognized tax benefits as of the beginning of the year	$	—
Increases as a result of tax positions taken in a prior period	1,153

Amount of unrecognized tax benefit as of the end of the year	$	1,153

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Schedule of basic and diluted EPS calculation

Basic and diluted EPS are calculated as follows for the years ended December 31:



(in thousands, except per share data)	2014		2013		2012

Net income attributable to Altisource	$	134,484	$	129,973	$	110,627

Weighted average common shares outstanding, basic	21,625		23,072		23,358
Dilutive effect of stock options	2,009		1,981		1,604

Weighted average common shares outstanding, diluted	23,634		25,053		24,962

Earnings per share:
Basic	$	6.22	$	5.63	$	4.74

Diluted	$	5.69	$	5.19	$	4.43

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments under non-cancelable capital and operating leases with an original term exceeding one year



(in thousands)	Operating lease obligations

2015	$	17,924
2016	15,357
2017	11,841
2018	7,941
2019	5,060
Thereafter	5,355

	$	63,478

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Schedule of financial information of segments

Financial information for our segments is as follows:



	For the year ended December 31, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	790,076	$	98,499	$	230,367		$	(40,026	)	$	1,078,916
Cost of revenue	484,512		64,338		194,301			(35,971		)	707,180
Gross profit	305,564		34,161		36,066			(4,055		)	371,736
Selling, general and administrative expenses	94,678		18,791		31,950			55,863			201,282
Income from operations	210,886		15,370		4,116			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)

Income before income taxes and non-controlling interests	$	211,090	$	15,432	$	4,085		$	(83,342	)	$	147,265



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



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

Total assets:
December 31, 2014	$	313,206	$	56,096	$	250,403	$	168,516	$	788,221
December 31, 2013	310,253		55,930		277,941		85,928		730,052

Schedule of premises and equipment, net by country

Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:



(in thousands)	December 31, 2014		December 31, 2013

United States	$	88,274	$	63,615
India	27,082		16,404
Luxembourg	9,059		3,217
Philippines	3,344		4,016

Total	$	127,759	$	87,252

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of unaudited quarterly results



	2014 quarter ended ⁽¹⁾⁽²⁾
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	239,269	$	296,072	$	287,688	$	255,887
Gross profit	91,464		112,073		98,964		69,235
Income (loss) before income taxes and non-controlling interests	43,201		58,225		45,867		(28		)
Net income (loss)	40,146		54,732		43,115		(906		)
Net income (loss) attributable to Altisource	39,631		54,101		42,287		(1,535		)

Earnings (loss) per share:
Basic	$	1.76	$	2.45	$	1.96	$	(0.08	)
Diluted	$	1.61	$	2.24	$	1.79	$	(0.08	)

Weighted average shares outstanding:
Basic	22,509		22,089		21,626		20,306
Diluted	24,662		24,166		23,640		20,306



	2013 quarter ended ⁽¹⁾⁽³⁾
(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

^{___________________________________________________}

⁽²⁾We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).

⁽³⁾We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

ORGANIZATION (Details)	12 Months Ended
ORGANIZATION (Details)	Dec. 31, 2014 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reporting segments	3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		12 Months Ended
	Nov. 15, 2013 USD ($) period	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Goodwill
Goodwill impairment		$ 0
Intangible Assets, Net
Impairment of intangible assets		0	$ 0	$ 0
Defined Contribution 401(k) Plan
Expense recorded for discretionary amounts contributed		900,000	400,000	200,000
Revenue Recognition
Reimbursable expenses		137,634,000	102,478,000	96,147,000
Related Party Transaction Cost Of Revenue		38,610,000	19,983,000	13,469,000
Selling, general and administrative expenses		(268,000)	569,000	(542,000)
Mortgage Services
Revenue Recognition
Reimbursable expenses		$ 137,400,000	102,000,000	95,600,000
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		$ 7,700,000	4,600,000
Total liabilities		6,700,000	3,500,000
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	$ 46,000,000	$ 8,100,000
Equator \| Maximum
Intangible Assets, Net
Additional consideration	$ 80,000,000
Adjustments For Related Party Expenses \| Restatement Adjustment
Revenue Recognition
Related Party Transaction Cost Of Revenue			20,000,000	13,500,000
Selling, general and administrative expenses			(2,400,000)	(3,000,000)
Ocwen \| Adjustments For Related Party Expenses \| Restatement Adjustment
Principles of Consolidation
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party			1,700,000	700,000
Selling, general and administrative expenses billed to related party			(100,000)
Revenue Recognition
Related Party Transaction Cost Of Revenue			20,000,000	13,500,000
Ocwen \| Adjustments For Related Party Expenses \| Restatement Adjustment \| Maximum
Principles of Consolidation
Selling, general and administrative expenses billed to related party				(100,000)
AAMC \| Adjustments For Related Party Expenses \| Restatement Adjustment
Principles of Consolidation
Selling, general and administrative expenses billed to related party			$ (500,000)	$ 0

SEPARATION OF RESIDENTIAL ASSET BUSINESSES (Details) $ in Thousands		12 Months Ended
	Dec. 21, 2012 USD ($) subsidiary	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
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	$ 0	$ 0	$ 105,000
Amount of expenses incurred in connection with the separation				$ 2,700
Residential
Carrying value of the net assets transferred
Cash	100,000
AAMC
Carrying value of the net assets transferred
Cash	$ 5,000

TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($)			12 Months Ended
TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($)	Mar. 31, 2013	Dec. 27, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
TRANSACTIONS WITH RELATED PARTIES
Other portfolio servicing revenue			$ 256,000,000	$ 161,900,000	$ 125,400,000
Cost of revenue			38,610,000	19,983,000	13,469,000
Revenue earned from related party			$ 666,800,000	$ 502,087,000	$ 338,227,000
Exercisable at the end of the period (in shares)			2,279,555
Ocwen
TRANSACTIONS WITH RELATED PARTIES
Related party revenue from Ocwen as a percentage of consolidated revenue			60.00%	65.00%	59.00%
Ocwen \| Correspondent One
TRANSACTIONS WITH RELATED PARTIES
Percentage of equity interest sold to the related party	49.00%
Proceeds from sale of equity interest	$ 12,600,000
Ocwen \| Senior unsecured term loan
TRANSACTIONS WITH RELATED PARTIES
Amount of loan provided to related party		$ 75,000,000
Interest income			$ 0	$ 800,000	$ 100,000
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 \| Data Access and Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Prior written notice period for cancellation of agreement			90 days
Cost of revenue			$ 38,600,000	20,000,000	13,500,000
Ocwen \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Service agreement renewals period			1 year
Selling, general and administrative expenses billed to related party			$ 4,500,000	2,800,000	2,700,000
Selling, general and administrative expenses billed by related party			$ 6,100,000	$ 4,600,000	$ 3,200,000
Ocwen \| Mortgage Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue from Ocwen as a percentage of segment revenue			67.00%	71.00%	68.00%
Ocwen \| Financial Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue from Ocwen as a percentage of segment revenue			27.00%	30.00%	1.00%
Ocwen \| Technology Services
TRANSACTIONS WITH RELATED PARTIES
Related party revenue from Ocwen as a percentage of segment revenue			41.00%	49.00%	42.00%
Ocwen Mortgage Servicing, Inc. \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Service agreement renewals period			1 year
Correspondent One \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party			$ 0	$ 100,000	$ 400,000
Revenue earned from related party			0	100,000	300,000
HLSS \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party			900,000	700,000	600,000
Residential \| Management, Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Revenue earned from related party			16,000,000	2,600,000	0
AAMC \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party			900,000	500,000	0
AAMC \| Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Revenue earned from related party			$ 100,000	$ 100,000	$ 0
Board of Directors Chairman \| Altisource Portfolio Solutions
TRANSACTIONS WITH RELATED PARTIES
William C. Erbey ownership percentage			29.00%
Exercisable at the end of the period (in shares)			873,501
Board of Directors Chairman \| Ocwen
TRANSACTIONS WITH RELATED PARTIES
William C. Erbey ownership percentage			14.00%
Options held by related parties			3,620,498
Exercisable at the end of the period (in shares)			3,370,498
Board of Directors Chairman \| HLSS
TRANSACTIONS WITH RELATED PARTIES
William C. Erbey ownership percentage			1.00%
Board of Directors Chairman \| Residential
TRANSACTIONS WITH RELATED PARTIES
William C. Erbey ownership percentage			4.00%
Board of Directors Chairman \| AAMC
TRANSACTIONS WITH RELATED PARTIES
William C. Erbey ownership percentage			28.00%
Exercisable at the end of the period (in shares)			87,350

ACQUISITIONS Homeward Fee-Based (Details) - USD ($) $ in Thousands		21 Months Ended
	Mar. 29, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Preliminary adjusted allocation of the purchase price
Goodwill		$ 90,851	$ 99,414	$ 14,915
Homeward servicing portfolio \| Ocwen
Acquisitions
Amount paid	$ 75,800
Working capital and net income adjustment	11,100
Reduction in premises and equipment		1,200
Increase in current liabilities		$ 2,000
Preliminary adjusted allocation of the purchase price
Premises and equipment, net	1,559
Customer relationship	75,609
Goodwill	2,039
Assets acquired	79,207
Accounts payable and accrued expenses	(3,390)
Purchase price	$ 75,817
Estimated life
Customer relationship	7 years
Homeward servicing portfolio \| Ocwen \| Minimum
Estimated life
Premises and equipment	3 years
Homeward servicing portfolio \| Ocwen \| Maximum
Estimated life
Premises and equipment	5 years

ACQUISITIONS ResCap Fee-Based (Details 2) - USD ($)	Nov. 15, 2013	Apr. 12, 2013	Dec. 31, 2014
ResCap \| Ocwen
Acquisitions
Amount paid		$ 128,800,000
Acquired tangible assets		0
Assumed liabilities in connection with the acquisition		0
Final allocation of the purchase price
Customer relationship		$ 128,800,000
Estimated life
Customer relationship		7 years
Equator
Acquisitions
Amount paid	$ 63,400,000
Assumed liabilities in connection with the acquisition	43,921,000		$ 43,385,000
Final allocation of the purchase price
Customer relationship	$ 43,393,000		$ 43,393,000

ACQUISITIONS Equator Acquisition (Details 3)
$ in Thousands

12 Months Ended

Nov. 15, 2013

USD ($)

period

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Dec. 31, 2012

USD ($)

Preliminary adjusted allocation of the purchase price

$ 90,851

$ 99,414

$ 14,915

(37,924)

37,473

^[1]

$ 0

Business Combination, Contingent Consideration, Asset, Current

Amount paid

$ 63,400

$ 3,700

Number of consecutive 12-month periods for meeting targeted levels of adjusted EBITA | period

Number of months for each consecutive period for meeting targeted levels of adjusted EBITA

12 months

Present value of future earn outs payments

$ 46,000

8,100

Preliminary adjusted allocation of the purchase price

Accounts receivable, net

9,293

12,783

Accounts receivable - Adjustment

3,490

Prepaid expenses

954

561

Prepaid expenses and other current assets - Adjustment

(393)

Premises and equipment, net

16,974

Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment

Customer relationships and trade names

43,393

Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Intangible Assets, Other than Goodwill

Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Good will Excluding Estimated Impairment

82,460

Goodwill excluding estimated impairment

82,460

Other non-current assets

242

320

Other non-current assets - Adjustment

Assets acquired

153,316

156,491

Assets acquired - Adjustment

3,175

Accounts payable and accrued expenses

(7,232)

(6,696)

Accounts payable and accrued expenses - Adjustment

536

Deferred revenue

(36,689)

Business Combination, Provisional Information Initial Accounting Incomplete Adjustment, Current Liabilities, Deferred Revenue

Liabilities assumed

(43,921)

(43,385)

Liabilities assumed - Adjustment

536

Purchase price

109,395

113,106

Purchase price - Adjustment

3,711

(37,924)

$ (451)

Equator | Maximum

Earn Out consideration that can be earned in each of the first two 12-month periods

Additional consideration

80,000

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%

Premises and Equipment Excluding Internally Developed Software | Equator | Maximum

Premises and Equipment Excluding Internally Developed Software | Equator | Minimum

Estimated useful lives

5 years

Software Development | Equator

Estimated useful lives

3 years

Customer Relationships | Equator

Estimated useful lives

7 years

Customer relationship

15 years

Trade Names | Equator

Pro forma consolidated results of operations

Customer relationship

4 years

[1]	See Note 5 for a discussion of the Equator goodwill impairment.

ACQUISITIONS Pro Forma Results (Details 4) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[1],[2]

Sep. 30, 2014

^[1],[2]

Jun. 30, 2014

^[1],[2]

Mar. 31, 2014

^[1],[2]

Dec. 31, 2013

^[1],[3]

Sep. 30, 2013

^[1],[3]

Jun. 30, 2013

^[1],[3]

Mar. 31, 2013

^[1],[3]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Revenue, As reported

$ 1,078,916

$ 768,357

$ 568,360

Revenue, Pro forma

854,098

781,834

Net income attributable to Altisource, As reported

$ (1,535)

$ 42,287

$ 54,101

$ 39,631

$ 35,516

$ 36,008

$ 30,931

$ 27,518

$ 134,484

129,973

110,627

Net income attributable to Altisource, Pro forma

$ 132,907

$ 129,229

Earnings per share - Diluted (in dollars per share), As reported

$ (0.08)

$ 1.79

$ 2.24

$ 1.61

$ 1.42

$ 1.25

$ 1.10

$ 5.69

$ 5.19

$ 4.43

Earnings per share - Diluted (in dollars per share), Pro forma

$ 5.31

$ 5.18

[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]	We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).
[3]	We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

ACQUISITIONS Mortgage Builder Acquisition (Details 5) - USD ($) $ in Thousands	Sep. 12, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill		$ 90,851	$ 99,414	$ 14,915
Mortgage Builder
Acquisitions
Amount paid	$ 15,700
Additional consideration	7,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash	726
Accounts receivable, net	1,120
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationship	4,824
Goodwill	9,135
Assets acquired	18,114
Accounts payable and accrued expenses	(881)
Purchase price	$ 17,233

ACQUISITIONS ACQUISITIONS Owners.com Acquisition (Details 6) - USD ($) $ in Thousands	Nov. 21, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill		$ 90,851	$ 99,414	$ 14,915
Owners.com
Acquisitions
Amount paid	$ 19,800
Additional consideration	7,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Accounts receivable, net	41
Prepaid expenses	32
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
Assets acquired	21,780
Accounts payable	(41)
Purchase price	$ 21,739

FAIR VALUE (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Nov. 15, 2013

Dec. 31, 2011

$ (37,924)

$ 0

37,473

^[1]

161,361

130,324

$ 105,502

$ 32,125

Company recorded acquisition-related contingent consideration in connection with the acquisitions

8,100

$ 46,000

(37,924)

Fair value measurements

Fair values of the liabilities for acquisition-related contingent consideration

11,600

Fair value measurements | Owners.com

Company recorded acquisition-related contingent consideration in connection with the acquisitions

1,900

Fair value measurements | Mortgage Builder

Company recorded acquisition-related contingent consideration in connection with the acquisitions

1,600

Fair value measurements | Equator

Fair values of the liabilities for acquisition-related contingent consideration

46,000

Estimate of Fair Value Measurement | Fair value measurements

(38,000)

161,361

130,324

3,022

1,620

Changes Measurement | Equator

591,543

396,503

Fair Value, Inputs, Level 2 [Member] | Fair value measurements

37,473

Fair Value, Inputs, Level 1 [Member] | Fair value measurements

467,319

396,503

161,361

130,324

3,022

1,620

Fair Value, Inputs, Level 3 [Member] | Fair value measurements

$ 0

[1]	See Note 5 for a discussion of the Equator goodwill impairment.

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	12 Months Ended
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts receivable, net
Accounts receivable, gross	$ 134,858	$ 110,418
Less: allowance for doubtful accounts	(22,675)	(5,631)
Total	112,183	104,787
Bad debt expense	16,257	2,549	$ 3,049
Billed
Accounts receivable, net
Non-related party, Accounts receivable	37,576	41,011
Other receivables	1,590	1,643
Accounts receivable, gross	73,532	56,289
Billed \| Ocwen
Accounts receivable, net
Receivable from related party	22,831	11,658
Billed \| HLSS
Accounts receivable, net
Receivable from related party	86	83
Billed \| AAMC
Accounts receivable, net
Receivable from related party	129	1,347
Billed \| Residential
Accounts receivable, net
Receivable from related party	11,320	547
Unbilled
Accounts receivable, net
Non-related party, Accounts receivable	46,775	44,102
Unbilled \| Ocwen
Accounts receivable, net
Receivable from related party	$ 14,551	$ 10,027

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Maintenance agreements, current portion	$ 6,367	$ 4,600
Income taxes receivable	5,258	1,645
Prepaid expenses	6,989	3,672
Other current assets	4,953	1,079
Total	$ 23,567	$ 10,996

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 223,131	$ 157,422
Less: accumulated depreciation and amortization	(95,372)	(70,170)
Total	127,759	87,252
Depreciation and amortization expense, inclusive of capital leases	29,046	19,056	$ 12,776
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	140,799	103,400
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	36,032	28,057
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	12,231	8,391
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 34,069	$ 17,574

GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

$ 99,414

$ 14,915

(37,473)

^[1]

$ 0

90,851

99,414

14,915

Mortgage Services

12,958

10,919

^[1]

32,733

12,958

10,919

Financial Services

2,378

^[1]

2,378

Technology Services

84,078

1,618

^[1]

(37,473)

55,740

84,078

$ 1,618

Equator | Mortgage Services

82,460

Equator | Financial Services

Equator | Technology Services

Homeward servicing portfolio

82,460

Homeward servicing portfolio | Mortgage Services

^[2]

2,039

Homeward servicing portfolio | Financial Services

^[2]

2,039

Homeward servicing portfolio | Technology Services

^[2]

^[2]

$ 0

Mortgage Builder

Mortgage Builder | Mortgage Services

9,135

Mortgage Builder | Financial Services

Mortgage Builder | Technology Services

9,135

Owners.com

Owners.com | Mortgage Services

19,775

Owners.com | Financial Services

19,775

Owners.com | Technology Services

Accounts payable and accrued expenses

$ 0

[1]	See Note 5 for a discussion of the Equator goodwill impairment.
[2]	December 31, 2013 goodwill has been revised to reflect a purchase accounting measurement period adjustment related to the Homeward acquisition. See Note 5.

GOODWILL AND INTANGIBLE ASSETS, NET (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Intangible Assets, Net
Impairment of intangible assets	$ 0	$ 0	$ 0
Gross carrying amount	338,497,000	333,033,000
Accumulated amortization	(93,251,000)	(56,871,000)
Net book value	245,246,000	276,162,000
Amortization expense for definite lived intangible assets	37,680,000	28,176,000	$ 5,030,000
2015	39,400,000
2016	34,200,000
2017	30,000,000
2018	26,100,000
2019	23,000,000
Trademarks
Intangible Assets, Net
Gross carrying amount	13,889,000	12,249,000
Accumulated amortization	(5,016,000)	(4,534,000)
Net book value	$ 8,873,000	7,715,000
Trademarks \| Weighted average
Intangible Assets, Net
Customer relationship	13 years
Customer-related intangible assets
Intangible Assets, Net
Gross carrying amount	$ 289,308,000	284,484,000
Accumulated amortization	(79,606,000)	(44,208,000)
Net book value	$ 209,702,000	240,276,000
Customer-related intangible assets \| Weighted average
Intangible Assets, Net
Customer relationship	10 years
Operating agreement
Intangible Assets, Net
Gross carrying amount	$ 35,000,000	35,000,000
Accumulated amortization	(8,604,000)	(6,854,000)
Net book value	$ 26,396,000	28,146,000
Operating agreement \| Weighted average
Intangible Assets, Net
Customer relationship	20 years
Non-compete agreement
Intangible Assets, Net
Gross carrying amount	$ 0	1,300,000
Accumulated amortization	0	(1,275,000)
Net book value	$ 0	25,000
Non-compete agreement \| Weighted average
Intangible Assets, Net
Customer relationship	4 years
Intellectual property
Intangible Assets, Net
Gross carrying amount	$ 300,000	0
Accumulated amortization	(25,000)	0
Net book value	$ 275,000	$ 0
Intellectual property \| Weighted average
Intangible Assets, Net
Customer relationship	10 years

INVESTMENT IN EQUITY AFFILIATE (Details) - Correspondent One - USD ($) $ in Millions		12 Months Ended
	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 29, 2013
Investment in equity affiliates
Ownership percentage					49.00%
Net gain (loss) on investment using the equity method		$ 0.0	$ 0.2	$ 1.2
Ocwen
Investment in equity affiliates
Percentage of equity interest sold to the related party	49.00%
Proceeds from sale of equity interest	$ 12.6

OTHER ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
OTHER ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits, net	$ 7,277	$ 7,314
Debt issuance costs, net	8,099	6,687
Maintenance agreements, non-current portion	3,324	1,465
Restricted cash	3,022	1,620
Other	545	572
Total	22,267	17,658
Debt issuance costs	$ 2,608	$ 3,200	$ 4,317

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)
$ in Thousands

Dec. 31, 2014

Dec. 31, 2013

Accounts payable

$ 22,880

$ 15,171

^[1]

Accrued expenses

25,500

20,945

^[1]

Accrued salaries and benefits

44,150

30,011

^[1]

Income taxes payable

7,643

11,211

^[1]

Accounts payable and accrued expenses

111,766

84,706

^[1]

Ocwen

Accrued expenses

6,193

^[1]

Payable to related party

$ 5,400

7,361

^[1]

AAMC

Accounts payable and accrued expenses

Payable to related party

^[1]

$ 7

[1]	December 31, 2013 payables have been revised to reflect purchase accounting measurement period adjustments related to the Homeward and Equator acquisitions. See Note 5.

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Other current liabilities
Book overdrafts	$ 4,788	$ 4,232
Other	8,439	5,899
Total	$ 13,227	$ 10,131

LONG-TERM DEBT (Details)					12 Months Ended
LONG-TERM DEBT (Details)	Aug. 01, 2014 USD ($)	Dec. 09, 2013 USD ($)	May 07, 2013 USD ($)	Nov. 27, 2012 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Debt
Senior secured term loan					$ 591,543,000	$ 396,503,000
Less: unamortized discount, net					(2,929,000)	(1,247,000)
Net long-term debt					588,614,000	395,256,000
Less: current portion					(5,945,000)	(3,975,000)
Long-term debt, less current portion					582,669,000	391,281,000
Proceeds from issuance of long-term debt					198,000,000	200,502,000	$ 198,000,000
Debt issuance costs, net					8,099,000	6,687,000
Interest on long-term debt					23,363,000	20,291,000	1,210,000
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months					5,945,000
Long-term Debt, Maturities, Repayments of Principal in Year Two					5,945,000
Long-term Debt, Maturities, Repayments of Principal in Year Three					5,945,000
Long-term Debt, Maturities, Repayments of Principal in Year Four					5,945,000
Long-term Debt, Maturities, Repayments of Principal in Year Five					5,945,000
Long-term Debt, Maturities, Repayments of Principal after Year Five					561,818,000
Debt Instrument Carrying Amount, Noncurrent					591,543,000
Senior secured term loan
Debt
Less: unamortized discount, net	$ (2,000,000)			$ (2,000,000)
Amount borrowed	200,000,000		$ 200,000,000	200,000,000
Proceeds from issuance of long-term debt	198,000,000		201,000,000	$ 198,000,000
Original issue premium			1,000,000
Additional increase in debt	200,000,000		$ 200,000,000
Amount of long-term debt refinanced		$ 397,500,000
Debt Instrument, Maturity Period from Prior Term Loans Maturity Date		1 year
Maximum restricted junior payments	200,000,000
Aggregate amount of each consecutive quarterly scheduled principal installment	$ 1,500,000
Term of senior secured loan agreement	7 years
Mandatory prepayments owed					$ 0
Interest rate at the end of the period (as a percent)					4.50%
Debt issuance costs, net					$ 8,100,000	6,700,000
Accumulated amortization					2,200,000	1,000,000
Interest on long-term debt					$ 23,400,000	$ 20,300,000	$ 1,200,000
Senior secured term loan \| Maximum
Debt
Leverage ratio to be maintained under the credit facility covenants					3
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					$ 40,000,000
Amount of debt which results in acceleration of debt if failed to pay considered as event of default					40,000,000
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					$ 40,000,000
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%

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]
Acquisition related contingent consideration	$ 11,616	$ 42,946
Other non-current liabilities	9,032	2,530
Total	$ 20,648	$ 45,476

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands		12 Months Ended			56 Months Ended
	Feb. 28, 2014 $ / shares shares	Dec. 31, 2014 USD ($) component installment right $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares
Common Stock [Abstract]
Common stock, shares authorized \| shares		25,413,000	100,000,000		25,413,000
Common stock, shares issued \| shares		25,413,000	25,413,000		25,413,000
Common stock, shares outstanding \| shares		20,279,000	22,629,000		20,279,000
Common Stock Voting Rights Per Share \| right		1
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
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) \| $		$ 2,200	$ 2,400	$ 3,600
Outstanding (in shares) \| shares		2,601,892	2,589,343		2,601,892
Stock options granted, approximate (in shares) \| shares		137,000	100,000	300,000
Weighted average exercise price of stock options granted (in dollars per share)		$ 84.61	$ 104.84	$ 69.48
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)		26.92	32.59	20.77
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)		$ 26.92	$ 32.59	$ 20.77
Intrinsic value of options exercised (in dollars) \| $		$ 10,250	$ 40,761	$ 17,598
Grant date fair value of options vested during the period (in dollars) \| $		2,641	$ 3,156	$ 2,790
Estimated unrecognized compensation costs (in dollars) \| $		$ 3,400			$ 3,400
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized		3 years 3 months
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
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)		1.80%	1.02%	0.87%
Risk-free interest rate, maximum (as a percent)		1.91%	1.81%	1.17%
Expected stock price volatility, minimum (as a percent)		37.57%	36.35%	34.22%
Expected stock price volatility, maximum (as a percent)		45.15%	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)		$ 15.54	$ 31.33	$ 19.25
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)		15.54	31.33	19.25
Black-Scholes \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)		41.79	49.14	29.80
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)		$ 41.79	$ 49.14	$ 29.80
Binomial
Assumptions used to determine the fair value of options as of the grant date
Risk-free interest rate, minimum (as a percent)		0.01%	0.01%	0.08%
Risk-free interest rate, maximum (as a percent)		2.49%	2.71%	2.04%
Expected stock price volatility, minimum (as a percent)		38.38%	36.40%	34.20%
Expected stock price volatility, maximum (as a percent)		45.15%	36.80%	34.60%
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)		$ 12.66	$ 16.12	$ 9.98
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)		12.66	16.12	9.98
Binomial \| Maximum
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share)		33.62	41.72	22.76
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average fair value at grant date per share (in dollars per share)		$ 33.62	$ 41.72	$ 22.76
Options \| Service-Based
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Vesting period		4 years
Outstanding (in shares) \| shares		800,000			800,000
Options \| Service-Based \| Maximum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Expiration term		10 years
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 \| Minimum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Percentage of compounded annual gain of stock price over exercise price required for the award to vest		20.00%
Options \| Market-Based, extraordinary performance \| Minimum
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION
Percentage of compounded annual gain of stock price over exercise price required for the award to vest		25.00%
Stock Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased \| shares		2,500,000	1,200,000		6,200,000
Average purchase price per share (in dollars per share)		$ 103.67	$ 116.99		$ 79.16
Remaining number of shares available for repurchase under the plan \| shares		1,100,000			1,100,000
Capacity available to repurchase common stock under senior secured term loan (in dollars) \| $		$ 225,000			$ 225,000
2014 Stock Repurchase Program
Stock Repurchase Plan
Number of shares of common stock authorized to be purchased \| shares	3,400,000
Percentage of outstanding shares authorized to be repurchased	15.00%
Minimum purchase price authorized (in dollars per share)	$ 1.00
Maximum purchase price authorized (in dollars per share)	$ 500.00

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of Options
Outstanding at the beginning of the period (in shares)	2,589,343
Granted (in shares)	137,000	100,000	300,000
Exercised (in shares)	(108,450)
Forfeited (in shares)	(16,001)
Outstanding at the end of the period (in shares)	2,601,892	2,589,343
Exercisable at the end of the period (in shares)	2,279,555
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 18.33
Granted (in dollars per share)	84.61	$ 104.84	$ 69.48
Exercised (in dollars per share)	24.82
Forfeited (in dollars per share)	73.14
Outstanding at the end of the period (in dollars per share)	21.21	$ 18.33
Exercisable at the end of the period (in dollars per share)	$ 13.82
Weighted average contractual term
Weighted average contractual term	4 years 5 months 8 days	5 years 2 months 12 days
Exercisable at the end of the period	3 years 10 months 29 days
Aggregate intrinsic value
Aggregate intrinsic value (in dollars)	$ 47,805	$ 363,293
Exercisable at the end of the period (in dollars)	$ 47,430

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 3)	12 Months Ended
	Dec. 31, 2014 $ / shares shares
Options outstanding
Number (in shares) \| shares	2,601,892
Options exercisable
Number (in shares) \| shares	2,279,555
$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	1,647,654
Weighted average remaining contractual life	3 years 5 months 27 days
Weighted average exercise price (in dollars per share)	$ 9.14
Options exercisable
Number (in shares) \| shares	1,647,654
Weighted average remaining contractual life	3 years 5 months 27 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	1 year 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	1 year 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	477,061
Weighted average remaining contractual life	5 years 3 months 22 days
Weighted average exercise price (in dollars per share)	$ 23.18
Options exercisable
Number (in shares) \| shares	443,624
Weighted average remaining contractual life	5 years 3 months 22 days
Weighted average exercise price (in dollars per share)	$ 23.19
$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	48,309
Weighted average remaining contractual life	6 years 3 months 7 days
Weighted average exercise price (in dollars per share)	$ 33.31
Options exercisable
Number (in shares) \| shares	28,319
Weighted average remaining contractual life	6 years 4 months 13 days
Weighted average exercise price (in dollars per share)	$ 33.10
$40.01 - $50.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	40.01
Exercise price, high end of range (in dollars per share)	$ 50.00
Options outstanding
Number (in shares) \| shares	15,000
Weighted average remaining contractual life	9 years 11 months 9 days
Weighted average exercise price (in dollars per share)	$ 49.06
Options exercisable
Number (in shares) \| shares	0
Weighted average remaining contractual life	0 days
Weighted average exercise price (in dollars per share)	$ 0.00
$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	7 years 4 months 13 days
Weighted average exercise price (in dollars per share)	$ 53.00
Options exercisable
Number (in shares) \| shares	6,250
Weighted average remaining contractual life	7 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	122,250
Weighted average remaining contractual life	7 years 2 months 9 days
Weighted average exercise price (in dollars per share)	$ 60.68
Options exercisable
Number (in shares) \| shares	48,001
Weighted average remaining contractual life	7 years 2 months 9 days
Weighted average exercise price (in dollars per share)	$ 60.70
$70.01 - $80.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	70.01
Exercise price, high end of range (in dollars per share)	$ 80.00
Options outstanding
Number (in shares) \| shares	25,600
Weighted average remaining contractual life	9 years 10 months 10 days
Weighted average exercise price (in dollars per share)	$ 72.78
Options exercisable
Number (in shares) \| shares	0
Weighted average remaining contractual life	0 days
Weighted average exercise price (in dollars per share)	$ 0.00
$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	40,000
Weighted average remaining contractual life	9 years 15 days
Weighted average exercise price (in dollars per share)	$ 85.63
Options exercisable
Number (in shares) \| shares	4,688
Weighted average remaining contractual life	8 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	73,281
Weighted average remaining contractual life	9 years 3 months 22 days
Weighted average exercise price (in dollars per share)	$ 94.32
Options exercisable
Number (in shares) \| shares	1,407
Weighted average remaining contractual life	8 years 1 month 28 days
Weighted average exercise price (in dollars per share)	$ 93.88
$100.01 - $110.00
Stock options outstanding and exercisable
Exercise price, low end of range (in dollars per share)	101.00
Exercise price, high end of range (in dollars per share)	$ 110.00
Options outstanding
Number (in shares) \| shares	15,000
Weighted average remaining contractual life	9 years 4 months 13 days
Weighted average exercise price (in dollars per share)	$ 105.11
Options exercisable
Number (in shares) \| shares	0
Weighted average remaining contractual life	0 days
Weighted average exercise price (in dollars per share)	$ 0.00
$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	8 years 7 months 13 days
Weighted average exercise price (in dollars per share)	$ 125.98
Options exercisable
Number (in shares) \| shares	1,875
Weighted average remaining contractual life	8 years 7 months 13 days
Weighted average exercise price (in dollars per share)	$ 125.98

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details 4)	Dec. 31, 2014 $ / shares shares
Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	62,500
Market-based options, Weighted average share price (in dollars per share) \| $ / shares	$ 100.37
Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	78,525
Market-based options, Weighted average share price (in dollars per share) \| $ / shares	$ 78.56
$170.01 - $180.00
Market prices for market performance options to vest
Market-based options, Vesting price, low end of range (in dollars per share) \| $ / shares	170.01
Market-based options, Vesting price, high end of range (in dollars per share) \| $ / shares	$ 180.00
$170.01 - $180.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	12,500
$170.01 - $180.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	0
$180.01 - $190.00
Market prices for market performance options to vest
Market-based options, Vesting price, low end of range (in dollars per share) \| $ / shares	$ 180.01
Market-based options, Vesting price, high end of range (in dollars per share) \| $ / shares	$ 190.00
$180.01 - $190.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	12,500
$180.01 - $190.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	40,875
Over $190.00
Market prices for market performance options to vest
Market-based options, Vesting price, low end of range (in dollars per share) \| $ / shares	$ 190.00
Over $190.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	37,500
Over $190.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	37,650

COST OF REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cost of Revenue [Abstract]
Compensation and benefits	$ 255,889	$ 156,812	$ 113,145
Outside fees and services	243,325	193,233	123,338
Reimbursable expenses	137,634	102,478	96,147
Technology and telecommunications	48,834	25,534	23,404
Depreciation and amortization	21,498	14,423	10,167
Total	$ 707,180	$ 492,480	$ 366,201

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Selling, General and Administrative Expense [Abstract]

Compensation and benefits

$ 45,098

$ 27,864

$ 21,166

Professional services

18,598

8,022

9,864

Occupancy related costs

38,262

28,424

24,041

Amortization of intangible assets

37,680

28,176

5,030

Depreciation and amortization

7,548

4,633

2,609

(37,924)

37,473

^[1]

Marketing costs

24,130

5,028

2,500

Other

30,417

11,663

9,502

Income before income taxes and non-controlling interests [Line Items]

$ 201,282

$ 113,810

$ 74,712

[1]	See Note 5 for a discussion of the Equator goodwill impairment.

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Other Income and Expenses [Abstract]
Loss in equity affiliate, including impairment loss		$ (176)	$ (1,741)
Interest income	$ 103	899	222
Other, net	71	(166)	(69)
Total	$ 174	$ 557	$ (1,588)

INCOME TAXES INCOME TAXES (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[1],[2]

Sep. 30, 2014

^[1],[2]

Jun. 30, 2014

^[1],[2]

Mar. 31, 2014

^[1],[2]

Dec. 31, 2013

^[1],[3]

Sep. 30, 2013

^[1],[3]

Jun. 30, 2013

^[1],[3]

Mar. 31, 2013

^[1],[3]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Domestic - Luxembourg

$ 124,181

$ 122,722

$ 107,498

Income before income taxes and non-controlling interests [Line Items]

$ (28)

$ 45,867

$ 58,225

$ 43,201

$ 38,556

$ 38,614

$ 34,485

$ 30,678

147,265

142,333

124,649

U.S. Federal

Foreign - U.S. and Non-U.S.

9,575

11,125

4,915

Non U.S.

Income before income taxes and non-controlling interests [Line Items]

Foreign - U.S. and Non-U.S.

$ 13,509

$ 8,486

$ 12,236

[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]	We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).
[3]	We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

INCOME TAXES (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current:
Domestic - Luxembourg	$ 4,415	$ 2,516	$ 2,841
Current income tax provision	9,012	6,525	5,746
Deferred:
Domestic - Luxembourg	0	0	388
Deferred income tax provision	1,166	2,015	2,992
Total	10,178	8,540	8,738
Decrease in foreign taxes due to tax holidays	$ 900	$ 200	$ 1,500
Effect on diluted per share due to decrease in foreign tax holiday (in dollars per share)	$ 0.04	$ 0.01	$ 0.06
Statutory tax rate	29.22%	29.22%	28.80%
U.S. Federal
Current:
Foreign	$ 75	$ 6	$ 0
Deferred:
Foreign	1,756	2,506	2,419
U.S. State
Current:
Foreign	476	403	353
Deferred:
Foreign	(281)	84	(23)
Non U.S.
Current:
Foreign	4,046	3,600	2,552
Deferred:
Foreign	$ (309)	$ (575)	$ 208

INCOME TAXES (Details 3) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 3) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Current deferred tax assets:
Allowance for doubtful accounts and other reserves	$ 72	$ 43
Accrued expenses	5,165	3,183
Current deferred tax liabilities:
Prepaid expenses	(250)	(389)
Current deferred tax assets, net	4,987	2,837
Non-current deferred tax assets:
Net operating loss carryforwards	13,940	12,439
U.S. federal and state tax credits	1,202	0
Non-U.S. deferred tax assets	1,780	1,471
Share-based compensation	856	784
Other	0	7
Non-current deferred tax liabilities:
Intangible assets	(5,302)	(6,035)
Depreciation	(11,878)	(4,855)
Deferred Tax Liabilities, Other	(177)	0
Deferred tax assets net of deferred tax liabilities	421	3,811
Valuation allowance	(3,115)	(3,189)
Non-current deferred tax assets, net	0	622
Non-current deferred tax liabilities, net	2,694	0
Net deferred tax assets	2,293	3,459
Income Taxes
Increase in valuation allowance related to state and foreign losses	100
Gross amount of net operating losses available for carryover to future years	35,700	32,600
Undistributed earnings	48,000
Deferred tax liability that would be recognized if earnings were distributed	9,600
Total deferred tax assets	19,900	14,738
Total deferred tax liabilities	(17,607)	(11,279)
U.S. State
Non-current deferred tax assets:
Net operating loss carryforwards	1,800	1,400
Luxembourg
Non-current deferred tax assets:
Net operating loss carryforwards	1,700	1,800
U.S. Federal
Income Taxes
Net operating loss carryforwards related to stock options exercised, not recognized	13,600	9,500
U.S. State and U.S. Federal
Non-current deferred tax assets:
Net operating loss carryforwards	1,200	0
NCI
Income Taxes
Gross amount of net operating losses available for carryover to future years	12,200	$ 13,500
Annual limit on use of operating loss carryforward	$ 1,300

INCOME TAXES (Details 4)	12 Months Ended
INCOME TAXES (Details 4)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Income Tax Provision to the Luxembourg income tax rate
Statutory tax rate	29.22%	29.22%	28.80%
Permanent difference related to Luxembourg intangible assets	(22.60%)	(23.59%)	(21.99%)
Change in valuation allowance	(0.05%)	0.76%	0.16%
State tax expense	0.03%	0.24%	0.17%
Tax credits	(0.71%)	(0.00%)	(0.00%)
Uncertain taxes	0.88%	0.00%	0.00%
Other	0.14%	(0.63%)	(0.13%)
Effective tax rate	6.91%	6.00%	7.01%

INCOME TAXES Income Taxes (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Amount of unrecognized tax benefits as of the beginning of the year	$ 1,153	$ 1,153	$ 0
Increases as a result of tax positions taken in a prior period	1,153
Amount of unrecognized tax benefit as of the end of the year	$ 1,153
Unrecognized tax benefits that would affect the effective tax rate		1,300	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		100	$ 0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit		$ 1,300

EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[1],[2]

Sep. 30, 2014

^[1],[2]

Jun. 30, 2014

^[1],[2]

Mar. 31, 2014

^[1],[2]

Dec. 31, 2013

^[1],[3]

Sep. 30, 2013

^[1],[3]

Jun. 30, 2013

^[1],[3]

Mar. 31, 2013

^[1],[3]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Earnings Per Share [Abstract]

Net income attributable to Altisource

$ (1,535)

$ 42,287

$ 54,101

$ 39,631

$ 35,516

$ 36,008

$ 30,931

$ 27,518

$ 134,484

$ 129,973

$ 110,627

Weighted average common shares outstanding, basic

20,306

21,626

22,089

22,509

22,734

23,025

23,161

23,374

21,625

23,072

23,358

Dilutive effect of stock options

2,009

1,981

1,604

Weighted average common shares outstanding, diluted

20,306

23,640

24,166

24,662

25,005

25,333

24,823

25,058

23,634

25,053

24,962

Earnings per share:

Basic (in dollars per share)

$ (0.08)

$ 1.96

$ 2.45

$ 1.76

$ 1.56

$ 1.34

$ 1.18

$ 6.22

$ 5.63

$ 4.74

Diluted (in dollars per share)

$ (0.08)

$ 1.79

$ 2.24

$ 1.61

$ 1.42

$ 1.25

$ 1.10

$ 5.69

$ 5.19

$ 4.43

Options

Anti-dilutive securities

Options excluded from the computation of diluted EPS, approximate (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, approximate (in shares)

100

300

[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]	We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).
[3]	We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Nov. 15, 2013
Operating Lease Obligations
Additional revenue earned on portfolios serviced by Ocwen	24.00%
Operating lease obligations
2015	$ 17,924
2016	15,357
2017	11,841
2018	7,941
2019	5,060
Thereafter	5,355
Operating lease obligations	63,478
Financial Standby Letter of Credit
Operating Lease Obligations
standby letter of credit	$ 1,800
Financial Standby Letter of Credit \| Equator
Operating Lease Obligations
standby letter of credit		$ 1,500
Ocwen \| Sales Revenue, Services, Net [Member]
Operating Lease Obligations
Related party revenue percentage	60.00%

COMMITMENTS AND CONTINGENCIES (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating Lease Obligations
Total operating lease expense, net of sublease income	$ 20.1	$ 12.8	$ 10.9
Escrow and Trust Balances
Amounts held in escrow and trust accounts	$ 62.5	$ 71.8
Minimum
Operating Lease Obligations
Customary lease term	1 year
Maximum
Operating Lease Obligations
Customary lease term	10 years

SEGMENT REPORTING (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

USD ($)

Sep. 30, 2014

USD ($)

^[1],[2]

Jun. 30, 2014

USD ($)

^[1],[2]

Mar. 31, 2014

USD ($)

^[1],[2]

Dec. 31, 2013

USD ($)

Sep. 30, 2013

USD ($)

^[1],[3]

Jun. 30, 2013

USD ($)

^[1],[3]

Mar. 31, 2013

USD ($)

^[1],[3]

Dec. 31, 2014

USD ($)

segment

Dec. 31, 2013

USD ($)

Dec. 31, 2012

USD ($)

Segment Reporting [Abstract]

Number of reporting segments | segment

$ 1,078,916

$ 768,357

$ 568,360

707,180

492,480

366,201

$ 69,235

^[1],[2]

$ 98,964

$ 112,073

$ 91,464

$ 78,300

^[1],[3]

$ 76,574

$ 69,138

$ 51,865

371,736

275,877

202,159

201,282

113,810

74,712

170,454

162,067

127,447

Income before income taxes and non-controlling interests

(23,189)

(19,734)

(2,798)

147,265

142,333

124,649

Operating Segment | Mortgage Services

788,221

730,052

788,221

730,052

790,076

596,152

452,796

484,512

374,713

285,586

305,564

221,439

167,210

94,678

46,515

25,099

210,886

174,924

142,111

Income before income taxes and non-controlling interests

204

(136)

(1,713)

211,090

174,788

140,398

Operating Segment | Financial Services

313,206

310,253

313,206

310,253

98,499

92,958

64,522

64,338

55,328

46,737

34,161

37,630

17,785

18,791

15,571

13,415

15,370

22,059

4,370

Income before income taxes and non-controlling interests

(10)

(27)

15,432

22,049

4,343

Operating Segment | Technology Services

56,096

55,930

56,096

55,930

230,367

103,891

74,189

194,301

84,538

54,634

36,066

19,353

19,555

31,950

12,442

8,888

4,116

6,911

10,667

Income before income taxes and non-controlling interests

(31)

(25)

4,085

6,918

10,642

Corporate Items and Eliminations

250,403

277,941

250,403

277,941

(40,026)

(24,644)

(23,147)

(35,971)

(22,099)

(20,756)

(4,055)

(2,545)

(2,391)

55,863

39,282

27,310

(59,918)

(41,827)

(29,701)

Income before income taxes and non-controlling interests

(23,424)

(19,595)

(1,033)

(83,342)

(61,422)

$ (30,734)

Quarterly Financial Information Disclosure [Abstract]

$ 168,516

$ 85,928

$ 168,516

$ 85,928

[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]	We acquired Mortgage Builder on September 12, 2014 and acquired Owners.com on November 21, 2014 (see Note 5).
[3]	We acquired the Homeward fee-based businesses on March 29, 2013, completed the ResCap fee-based business transaction on April 12, 2013 and acquired Equator on November 15, 2013 (see Note 5).

SEGMENT REPORTING (Details 2) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Premises & equipment, net
Premises and equipment, net	$ 127,759	$ 87,252
United States
Premises & equipment, net
Premises and equipment, net	88,274	63,615
India
Premises & equipment, net
Premises and equipment, net	27,082	16,404
Luxembourg
Premises & equipment, net
Premises and equipment, net	9,059	3,217
Philippines
Premises & equipment, net
Premises and equipment, net	$ 3,344	$ 4,016

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

^[2]

Sep. 30, 2014

^[2]

Jun. 30, 2014

^[2]

Mar. 31, 2014

^[2]

Dec. 31, 2013

^[3]

Sep. 30, 2013

^[3]

Jun. 30, 2013

^[3]

Mar. 31, 2013

^[3]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

^[1]

$ 255,887

$ 287,688

$ 296,072

$ 239,269

$ 222,585

$ 210,835

$ 186,110

$ 148,827