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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Feb. 10, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	0001462418
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		18,773,438
Entity Treasury Stock		6,639,310
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Entity Public Float			$ 505,239,875

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 149,294	$ 179,327
Available for sale securities	45,754	0
Accounts receivable, net	87,821	105,023
Prepaid expenses and other current assets	42,608	21,751
Total current assets	325,477	306,101
Premises and equipment, net	103,473	119,121
Goodwill	86,283	82,801
Intangible assets, net	155,432	197,003
Deferred tax assets, net	7,292	3,619
Other assets	11,255	13,153
Total assets	689,212	721,798
Current liabilities:
Accounts payable and accrued expenses	83,135	91,871
Accrued litigation settlement	32,000	0
Current portion of long-term debt	5,945	5,945
Deferred revenue	8,797	15,060
Other current liabilities	19,061	16,266
Total current liabilities	148,938	129,142
Long-term debt, less current portion	467,600	522,233
Other non-current liabilities	10,480	18,153
Commitments, contingencies and regulatory matters
Equity:
Common stock ($1.00 par value; 25,413 shares authorized and issued and 18,774 outstanding as of December 31, 2016; 25,413 shares authorized and issued and 19,021 outstanding as of December 31, 2015)	25,413	25,413
Additional paid-in capital	107,288	96,321
Retained earnings	333,786	369,270
Accumulated other comprehensive loss	(1,745)	0
Treasury stock, at cost (6,639 shares as of December 31, 2016 and 6,392 shares as of December 31, 2015)	(403,953)	(440,026)
Altisource equity	60,789	50,978
Non-controlling interests	1,405	1,292
Total equity	62,194	52,270
Total liabilities and equity	$ 689,212	$ 721,798

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	25,413,000	25,413,000
Common stock, shares issued	25,413,000	25,413,000
Common stock, shares outstanding	18,774,000	19,021,000
Treasury stock, shares	6,639,000	6,392,000

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 997,303	$ 1,051,466	$ 1,078,916
Cost of revenue	690,045	687,327	707,180
Gross profit	307,258	364,139	371,736
Selling, general and administrative expenses	214,155	220,868	201,733
Litigation settlement loss, net of $4,000 insurance recovery	28,000	0	0
Impairment losses	0	71,785	37,473
Change in the fair value of Equator Earn Out	0	(7,591)	(37,924)
Income from operations	65,103	79,077	170,454
Other income (expense), net:
Interest expense	(24,412)	(28,208)	(23,363)
Other income (expense), net	3,630	2,191	174
Total other income (expense), net	(20,782)	(26,017)	(23,189)
Income before income taxes and non-controlling interests	44,321	53,060	147,265
Income tax provision	(12,935)	(8,260)	(10,178)
Net income	31,386	44,800	137,087
Net income attributable to non-controlling interests	(2,693)	(3,202)	(2,603)
Net income attributable to Altisource	$ 28,693	$ 41,598	$ 134,484
Earnings per share:
Basic (in dollars per share)	$ 1.53	$ 2.13	$ 6.22
Diluted (in dollars per share)	$ 1.46	$ 2.02	$ 5.69
Weighted average shares outstanding:
Basic (in shares)	18,696	19,504	21,625
Diluted (in shares)	19,612	20,619	23,634
Comprehensive income:
Unrealized loss on securities, net of income tax benefit of $720, $0, $0	$ (1,745)	$ 0	$ 0
Comprehensive income, net of tax	29,641	44,800	137,087
Comprehensive income attributable to non-controlling interests	(2,693)	(3,202)	(2,603)
Comprehensive income attributable to Altisource	$ 26,948	$ 41,598	134,484
Transactions with related parties included above:
Revenue			666,800
Cost of revenue			38,610
Selling, general and administrative expenses			$ (268)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Insurance recovery related to litigation settlement loss	$ 4,000	$ 0	$ 0
Income tax benefit (provision) on securities	$ 720	$ 0	$ 0

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Treasury stock, at cost	Non-controlling interests
Balance at Dec. 31, 2013	$ 157,741	$ 25,413	$ 89,273	$ 239,561	$ 0	$ (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
Other comprehensive loss, net of tax	0
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	0	(444,495)	1,049
Balance (in shares) at Dec. 31, 2014		25,413
Increase (Decrease) in Equity
Net income	44,800			41,598			3,202
Other comprehensive loss, net of tax	0
Distributions to non-controlling interest holders	(2,959)						(2,959)
Share-based compensation expense	4,812		4,812
Exercise of stock options	1,390			(8,292)		9,682
Issuance of restricted shares for acquisitions	21,733			(32,003)		53,736
Repurchase of shares	(58,949)					(58,949)
Balance at Dec. 31, 2015	52,270	$ 25,413	96,321	369,270	0	(440,026)	1,292
Balance (in shares) at Dec. 31, 2015		25,413
Increase (Decrease) in Equity
Net income	31,386			28,693			2,693
Other comprehensive loss, net of tax	(1,745)				(1,745)
Distributions to non-controlling interest holders	(2,580)						(2,580)
Share-based compensation expense	6,188		6,188
Excess tax benefit on stock-based compensation	4,779		4,779
Exercise of stock options	9,558			(64,177)		73,735
Repurchase of shares	(37,662)					(37,662)
Balance at Dec. 31, 2016	$ 62,194	$ 25,413	$ 107,288	$ 333,786	$ (1,745)	$ (403,953)	$ 1,405
Balance (in shares) at Dec. 31, 2016		25,413

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 31,386	$ 44,800	$ 137,087
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	36,788	36,470	29,046
Amortization of intangible assets	47,576	41,135	37,680
Loss on HLSS equity securities and dividends received, net	0	1,854	0
Change in the fair value of acquisition related contingent consideration	(3,555)	(7,184)	(37,924)
Impairment losses	0	71,785	37,473
Share-based compensation expense	6,188	4,812	2,236
Bad debt expense	1,829	5,514	16,257
Gain on early extinguishment of debt	(5,464)	(3,836)	0
Amortization of debt discount	413	498	317
Amortization of debt issuance costs	1,141	1,374	1,151
Deferred income taxes	(2,597)	(1,326)	1,166
Loss on disposal of fixed assets	1,765	26	184
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	15,980	2,401	(22,492)
Prepaid expenses and other current assets	(20,881)	1,883	(12,501)
Other assets	1,053	2,993	(1,750)
Accounts payable and accrued expenses	(9,113)	(14,483)	24,285
Other current and non-current liabilities	24,309	6,636	(14,722)
Net cash provided by operating activities	126,818	195,352	197,493
Cash flows from investing activities:
Additions to premises and equipment	(23,269)	(36,188)	(64,846)
Acquisition of businesses, net of cash acquired	(9,409)	(28,675)	(34,720)
Purchase of available for sale securities	(48,219)	(29,966)	0
Proceeds received from sale of and dividends from HLSS equity securities	0	28,112	0
Change in restricted cash	674	722	(1,402)
Other investing activities	0	0	(300)
Net cash used in investing activities	(80,223)	(65,995)	(101,268)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	0	198,000
Repayment and repurchases of long-term debt	(50,723)	(50,373)	(4,959)
Debt issuance costs	0	0	(2,608)
Proceeds from stock option exercises	9,558	1,390	2,688
Excess tax benefit on stock-based compensation	4,779	0	0
Purchase of treasury stock	(37,662)	(58,949)	(255,713)
Distributions to non-controlling interests	(2,580)	(2,959)	(2,596)
Other financing activities	0	(500)	0
Net cash used in financing activities	(76,628)	(111,391)	(65,188)
Net (decrease) increase in cash and cash equivalents	(30,033)	17,966	31,037
Cash and cash equivalents at the beginning of the period	179,327	161,361	130,324
Cash and cash equivalents at the end of the period	149,294	179,327	161,361
Supplemental cash flow information:
Interest paid	22,717	26,274	21,829
Income taxes paid, net	18,327	9,725	13,340
Non-cash investing and financing activities:
Acquisition of businesses with restricted shares	0	21,733	0
Increase (decrease) in payables for purchases of premises and equipment	404	(6,679)	(2,328)
Decrease in acquisition of businesses from subsequent working capital true-ups	$ 0	$ 0	$ (3,711)

ORGANIZATION	12 Months Ended
ORGANIZATION	Dec. 31, 2016
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. Altisource’s proprietary business processes, vendor and electronic payment management software and behavioral science-based analytics 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 24 for a description of our business segments).

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2016

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 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.

Altisource consolidates two cooperative entities which are managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource: Best Partners Mortgage Cooperative, Inc., a mortgage cooperative doing business as Lenders One^® (“Lenders One”) and Best Partners Mortgage Brokers Cooperative, Inc., a mortgage cooperative doing business as Wholesale One^® (“Wholesale One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option) and to Wholesale One under a management agreement that ends on July 8, 2039 (with automatic renewals for three successive five-year periods).

The management agreements between MPA and Lenders One and between MPA and Wholesale One, pursuant to which MPA is the management company, represent variable interests in variable interest entities. MPA is the primary beneficiary of Lenders One and Wholesale One as it has the power to direct the activities that most significantly impact each of these cooperatives’ economic performance and the right to receive benefits from each of these cooperatives. As a result, Lenders One and Wholesale One are presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of December 31, 2016, Lenders One had total assets of $3.8 million and total liabilities of $1.5 million. As of December 31, 2015, Lenders One had total assets of $4.9 million and total liabilities of $3.7 million. As of December 31, 2016 and December 31, 2015, Wholesale One had less than $0.1 million in total assets and less than $0.1 million in total liabilities.

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 and valuation 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 presented 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 for premises and equipment recorded in connection with a business combination 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 comparing 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. There were no impairments of premises and equipment for the years ended December 31, 2016 and 2014. For the year ended December 31, 2015, we recognized a $4.1 million premises and equipment impairment loss. See Note 9 for additional information.

Computer software includes the fair value of software acquired in business combinations, capitalized software development costs and purchased software. Capitalized software development and purchased software are 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of an acquisition is allocated to the assets acquired and liabilities assumed using their fair value as of the acquisition date.

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 in a manner 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 and market comparisons. The discounted cash flow method is based on the 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. The market comparisons include an analysis of revenue and earnings multiples of guideline public companies compared to the Company. There were no impairments of goodwill for the year ended December 31, 2016. For the years ended December 31, 2015 and 2014, we recognized goodwill impairment losses of $55.7 million and $37.5 million, respectively. See Note 10 for additional information.

Intangible Assets, Net - Identified intangible assets consist primarily of customer related intangible assets, operating agreements, trademarks and trade names and other intangible assets. 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 4 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. There were no impairments of intangible assets for the years ended December 31, 2016 and 2014. For the year ended December 31, 2015, we recognized impairments of intangible assets of $11.9 million. See Note 10 for additional information on impairments.

Long-Term Debt - Long-term debt is reported net of applicable discount or premium and net of debt issuance costs. The debt discount or premium and debt issuance costs are 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 consolidated statements of operations and comprehensive income 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 expenses of $1.2 million, $1.0 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively, related to our discretionary contributions.

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 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 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 using the treasury stock method.

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 certain default management services, we recognize revenue over the period during which we perform the related services, with full recognition upon recording the related foreclosure deed. A significant area of judgment includes the period over which we recognize certain default management services revenue. For disbursement processing services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements. We record revenue associated with fees earned on real estate sales other than our short-term investments in real estate 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. For short-term investments in real estate, we record revenue in the amount of the selling price of the property upon the sale of the property. Reimbursable expenses of $51.9 million, $107.2 million and $137.4 million incurred for the years ended December 31, 2016, 2015 and 2014, respectively, are included in revenue with an equal offsetting expense included in cost of revenue primarily related to our default management 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 following 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 typically earn and recognize revenue on a per-person, per-call or per-minute basis as the related services are performed.

Technology Services segment: For our software services, we charge fees 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. In addition, we charge fees for professional services engagements, which consist primarily of time and materials agreements with customers that are generally billed and recognized as the hours are worked.

For 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 (“SEC”) 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. We derive revenue from platform services fees, professional services fees and other services. We do 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 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. We generally invoice customers on a monthly basis.

We currently provide information technology (“IT”) infrastructure services to Ocwen Financial Corporation (“Ocwen”), Altisource Residential Corporation (“Residential”) and Altisource Asset Management Corporation (“AAMC”) and charge for these services primarily based on the number of employees that are using the applicable systems and the number and type of licensed platforms used by Ocwen, Residential and AAMC. We record revenue associated with implementation services upon completion and maintenance ratably over the related service period.

Income Taxes - We record income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). We account for certain income and expense items differently for financial reporting 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.

In 2015, the Company early-adopted FASB Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This standard simplifies the presentation of deferred taxes by requiring that deferred tax assets and deferred tax liabilities be classified as non-current in an entity’s balance sheet. We adopted this standard prospectively. Accordingly, prior periods were not retrospectively adjusted.

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. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our results of operations.

Recently Adopted Accounting Pronouncements

On January 1, 2016, FASB ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, became effective. This standard addresses the consolidation of certain legal entities relative to current requirements under GAAP. Specifically, the standard pertains to a reporting entity’s consolidation of another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The adoption of this standard did not have an impact on the Company’s consolidated financial statements.

On January 1, 2016, FASB ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs became effective. As a result of this accounting change, the Company now presents debt issuance costs, net as a direct deduction from the related debt (see Note 13). Prior to January 1, 2016, debt issuance costs, net were included in other assets. We adopted the standard retrospectively. Accordingly, prior period amounts were reclassified to conform to the current presentation.

On January 1, 2016, FASB ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments became effective. This standard requires that adjustments to provisional amounts that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined rather than recognizing the adjustments retrospectively. The standard also requires that the acquirer records, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, calculated as if the accounting had been completed at the acquisition date. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

Future Adoption of New Accounting Pronouncements

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). 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 this 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 standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of over 90% of its revenue from customers for the year ended December 31, 2016, the Company estimated that less than 5% of consolidated revenue, primarily related to software development professional services, would likely be deferred and recognized over future periods under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact on its results of operations and financial position.

In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This standard will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. It also amends certain financial statement presentation and disclosure requirements associated with the fair value of financial instruments. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of this guidance, upon adoption of ASU No. 2016-01 the Company will reflect changes in the fair value of its available for sale securities in income. These changes in fair value are currently reflected in other comprehensive income. The Company will continue to analyze the impact of this guidance and refine the estimated impact on its results of operations and financial position.

In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). This standard introduces a new lessee model that brings substantially all leases on the balance sheet. The standard will require companies to recognize lease assets and lease liabilities on their balance sheets and disclose key information about leasing arrangements in their financial statements. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of its lease arrangements as of December 31, 2016 where the Company is a lessee, the impact of adopting the new standard is primarily related to office leases, which would be recorded as right-of-use assets and lease liabilities on the Company’s balance sheet under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact on its results of operations and financial position.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This standard clarifies guidance on principal versus agent considerations in connection with revenue recognition. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard will require companies to recognize all award-related excess tax benefits and tax deficiencies in their income statements, classify any excess tax benefits as an operating activity in their statements of cash flows, provide companies with the option of estimating forfeitures or recognizing forfeitures as they occur, modify the statutory tax withholding requirements and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in their statements of cash flows. This standard will be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. Early application of this standard is permitted. The Company is completing its evaluation of the impact of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of the income tax impact of this guidance and the impact of estimating or recognizing forfeitures as they occur, the Company does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This standard provides guidance on identifying performance obligations in a contract with a customer and clarifying several licensing considerations, including whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time) and guidance on sales-based and usage-based royalties. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This standard addresses collectability, sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition and completed contracts at transition. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard will require that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This standard will require that companies include restricted cash and restricted cash equivalents in their cash and cash equivalent balances in the statement of cash flows. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows. As of December 31, 2016 and 2015, restricted cash was $4.1 million and $4.8 million, respectively.

In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The FASB issued 13 technical corrections and improvements to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), including providing optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. The amendments in this standard also expand the information that is required to be disclosed when an entity applies one of the optional exemptions. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This standard clarifies the definition of a business and provides a screen to determine if a set of inputs, processes and outputs is a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired would not be a business. Under the new guidance, in order to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. In addition, the standard narrows the definition of the term “output” so that it is consistent with how it is described in ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard will simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Current guidance requires that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This standard will require companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This standard will be effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, and will be applied prospectively. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

CUSTOMER CONCENTRATION

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATION

Ocwen is our largest customer. Ocwen purchases certain mortgage services and technology services from us under the terms of master services agreements and amendments thereto (collectively, the “Ocwen Service Agreements”) with terms extending through August 2025. Certain of the Ocwen Service Agreements, among other things, contain a “most favored nation” provision and the parties to the Ocwen Service Agreements have the right to renegotiate pricing. Certain of the Ocwen Service Agreements also prohibit Ocwen from establishing fee-based businesses that would directly or indirectly compete with Altisource’s services with respect to the Homeward Residential, Inc. (“Homeward”) and Residential Capital, LLC (“ResCap”) servicing portfolios acquired by Ocwen in December 2012 and February 2013, respectively. In addition, Ocwen purchases certain origination services from Altisource under an agreement that continues until January 23, 2019, but which is subject to a 90 day termination right by Ocwen.

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



	2016	2015	2014

Mortgage Services	60%	63%	67%
Financial Services	17%	21%	27%
Technology Services	42%	54%	42%
Consolidated revenue	56%	60%	60%

For the years ended December 31, 2016, 2015 and 2014, we generated revenue from Ocwen of $561.9 million, $631.6 million and $650.7 million, respectively. Services provided to Ocwen during such periods and reported in the Mortgage Services segment included real estate asset management and sales, residential property valuation, trustee management services, property preservation and inspection services and insurance services. Services provided to Ocwen and reported in the Financial Services segment included mortgage charge-off collections. Services provided to Ocwen and reported in the Technology Services segment included IT infrastructure management and software applications. As of December 31, 2016, accounts receivable from Ocwen totaled $26.2 million, $15.8 million of which was billed and $10.4 million of which was unbilled (see Note 7 for additional information on billed and unbilled accounts receivable).

We earn additional revenue related to the portfolios serviced by Ocwen when a party other than Ocwen selects Altisource as the service provider. For the years ended December 31, 2016, 2015 and 2014, we recognized revenue of $188.0 million, $216.9 million and $256.0 million, respectively, related to the portfolios serviced by Ocwen when a party other than Ocwen selected Altisource as the service provider. These amounts are not included in deriving the revenue from Ocwen as a percentage of revenue in the table above.

TRANSACTIONS WITH RELATED PARTIES	12 Months Ended
TRANSACTIONS WITH RELATED PARTIES	Dec. 31, 2016
Related Party Transactions [Abstract]
TRANSACTIONS WITH RELATED PARTIES	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 Home Loan Servicing Solutions, Ltd. (“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 of any of these companies. Consequently, as of January 16, 2015, these companies are no longer related parties of Altisource, as defined by FASB ASC Topic 850, Related Party Disclosures. The disclosures in this note are limited to the periods that each of Ocwen, HLSS, Residential and AAMC were related parties of Altisource and are not reflective of current activities with these former related parties. Ocwen Revenue For the year ended December 31, 2014, we generated revenue from Ocwen of $650.7 million. For the period from January 1, 2015 through January 16, 2015, we estimated that we generated revenue from Ocwen of $22.9 million. Services provided to Ocwen during such periods included real estate asset management and sales, residential property valuation, trustee management services, property inspection and preservation services, insurance services, mortgage charge-off collections, IT infrastructure management and software applications. We record revenue we earn from Ocwen under the Ocwen Service Agreements at rates we believe to be comparable market rates as we believe they are consistent with the fees we charge to other customers and/or fees charged by our competitors for comparable services. Cost of Revenue and Selling, General and Administrative Expenses At times, we have used Ocwen’s contractors and/or employees to support Altisource related services. Ocwen generally billed us for these contractors and/or employees based on their fully-allocated cost. Additionally, through March 31, 2015, we purchased certain data relating to Ocwen’s servicing portfolio in connection with a Data Access and Services Agreement. Based upon our previously provided notice, the Data Access and Services Agreement was terminated effective March 31, 2015. For the year ended December 31, 2014, Ocwen billed us $38.6 million for these items. For the period from January 1, 2015 through January 16, 2015, we estimated that we incurred $1.9 million of expenses related to these items. These amounts are reflected as a component of cost of revenue in the consolidated statements of operations and comprehensive income. We provided certain other services to Ocwen and Ocwen provided certain other services to us in connection with Support Services Agreements. These services primarily included such areas as vendor management, corporate services and facilities related services. 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 year ended December 31, 2014, we billed Ocwen $4.5 million for these items. For the year ended December 31, 2014, Ocwen billed us $6.1 million for these items. Of the January 2015 billings to Ocwen, we estimated that $0.1 million related to the period from January 1, 2015 through January 16, 2015. Of the January 2015 billings from Ocwen, we estimated that $0.3 million related to the period from January 1, 2015 through January 16, 2015. These amounts are reflected as a component of selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. HLSS Prior to April 2015, HLSS was a publicly traded company whose primary objective was the acquisition of mortgage servicing rights and related servicing advances, loans held for investment and other residential mortgage related assets. We provided HLSS certain finance, human resources, tax and facilities services and sold information technology services to HLSS under a support services agreement. For the year ended December 31, 2014, we billed HLSS $0.9 million for these items. For the period from January 1, 2015 through January 16, 2015, our billings to HLSS were immaterial. Residential and AAMC Residential is focused on acquiring, owning and managing single-family-rental properties throughout the United States. AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles that own real estate related assets. Its initial client is Residential. We have agreements and amendments thereto, which extend through 2027, to provide Residential with renovation management, lease management, property management, real estate owned asset management, title insurance, settlement and valuation services. In addition, we have agreements with Residential and AAMC pursuant to which we may 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 products and services. For the year ended December 31, 2014, we generated revenue from Residential of $16.0 million under these services agreements. For the period from January 1, 2015 through January 16, 2015, we estimated that we generated revenue from Residential of $1.0 million. These amounts are reflected in revenue in the consolidated statements of operations and comprehensive income. This excludes revenue from services we provided to Residential’s loans serviced by Ocwen or other loan servicers where we were retained by Ocwen or Residential’s other loan servicers. The revenue associated with Residential’s loans serviced by Ocwen is included in Ocwen related party revenue for the year ended December 31, 2014. For the year ended December 31, 2014, we billed AAMC $1.0 million under these services agreements, $0.1 million of which is reflected in revenue and $0.9 million of which is reflected as a component of selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. For the period from January 1, 2015 through January 16, 2015, our billings to AAMC were immaterial.

- Definition

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

+ References + Details

ACQUISITIONS

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

ACQUISITIONS

Granite Acquisition

On July 29, 2016, we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for $9.6 million in cash at closing. Granite provides residential and commercial loan disbursement processing, risk mitigation and construction inspection services to lenders. During the fourth quarter of 2016, management adjusted the allocation of the purchase price based upon information that subsequently became available relating to acquisition date working capital and the purchase price allocation to intangible assets. The working capital adjustment resulted in an obligation of the sellers to pay the Company $0.1 million. Granite 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)	Initial purchase price allocation

Accounts receivable, net	$	1,024
Prepaid expenses	22
Other assets	25
Premises and equipment, net	299
Non-compete agreements	100
Trademarks and trade names	100
Customer relationships	3,400
Goodwill	4,827
	9,797
Accounts payable and accrued expenses	(57		)
Deferred revenue	(192		)

Purchase price	$	9,548

RentRange, Investability and Onit Solutions Acquisitions

On October 9, 2015, we acquired GoldenGator, LLC (doing business as RentRange^®) (“RentRange”), REIsmart, LLC (doing business as Investability^™) (“Investability”) and Onit Solutions, LLC, a support company for RentRange and Investability (collectively “RentRange and Investability”) for $24.8 million. RentRange is a leading provider of rental home data and information to the financial services and real estate industries, delivering a wide assortment of address and geography level data, analytics and rent-based valuation solutions for single and multi-family properties. Investability is an online residential real estate search and acquisition platform that utilizes data and analytics to allow real estate investors to access the estimated cash flow, capitalization rate, net yield and market value of properties for sale in the United States. The purchase price was composed of $17.5 million in cash and 247 thousand shares of restricted common stock of the Company with a value of $7.3 million as of the closing date. Upon issuance, the restricted shares were subject to transfer restrictions and potential forfeiture provisions. These restrictions and forfeiture provisions will lapse over a four year period, subject to the recipients meeting certain continued employment conditions with the Company and the satisfaction of certain acquisition related escrow release conditions. During 2016, restrictions were removed on 55 thousand shares. Also during 2016, management adjusted the allocation of the purchase price based upon information that subsequently became available relating to acquisition date working capital and the purchase price allocation to intangible assets. The working capital adjustment resulted in an obligation of the sellers to pay the Company $0.2 million. RentRange and Investability are not material in relation to the Company’s results of operations or financial position.

The initial and final allocation of the purchase price is as follows:



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

Cash	$	3		$	—		$	3
Accounts receivable, net	245			(76		)	169
Premises and equipment, net	2,471			(1,067		)	1,404
Other assets	199			(196		)	3
Trademarks and trade names	1,205			—			1,205
Databases/other	910			1,035			1,945
Non-compete agreements	330			—			330
Customer relationships	255			—			255
Goodwill	19,565			50			19,615
	25,183			(254		)	24,929
Accounts payable and accrued expenses	(391		)	46			(345		)

Purchase price	$	24,792		$	(208	)	$	24,584

CastleLine Acquisition

On July 17, 2015, we acquired CastleLine Holdings, LLC and its subsidiaries (“CastleLine”) for $33.4 million. CastleLine is a specialty risk management and insurance services firm that provides financial products and services to parties involved in the origination, underwriting, purchase and securitization of residential mortgages. The purchase consideration was composed of $12.3 million of cash at closing, $10.5 million of cash payable over four years from the acquisition date and 495 thousand shares of restricted common stock of the Company, that were subject to transfer restrictions, with a value of $14.4 million as of the closing date. During 2016, the restrictions were removed on the 495 thousand shares. Of the cash payable following acquisition, $3.8 million is contingent on certain future employment conditions of certain of the sellers, and therefore excluded from the purchase price. During the second quarter of 2016, management adjusted the allocation of the purchase price based upon information that subsequently became available relating to acquisition date working capital and the purchase price allocation to intangible assets. The CastleLine acquisition is not material in relation to the Company’s results of operations or financial position.

The initial and final allocation of the purchase price is as follows:



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

Cash	$	1,088		$	—		$	1,088
Accounts receivable, net	510			(410		)	100
Prepaid expenses	66			(46		)	20
Restricted cash	2,501			—			2,501
Non-compete agreements	1,105			25			1,130
Databases/other	465			1,335			1,800
Customer relationships	395			—			395
Trademarks and trade names	150			10			160
Deferred taxes	—			356			356
Goodwill	28,125			(1,395		)	26,730
	34,405			(125		)	34,280
Accounts payable and accrued expenses	(875		)	38			(837		)
Deferred revenue	(87		)	87			—

Purchase price	$	33,443		$	—		$	33,443

Owners Acquisition

On November 21, 2014, we acquired certain assets and assumed certain liabilities of Owners Advantage, LLC (“Owners”). Owners is a self-directed online real estate marketplace. We paid $19.8 million at closing in cash and agreed to pay additional contingent consideration of up to an additional $7.0 million over two years following the closing (“Owners Earn Out”), based on Adjusted Revenue (as defined in the purchase agreement). At closing, we estimated the fair value of the Owners Earn Out to be $1.9 million determined based on the present value of future estimated Owners Earn Out payments. After the acquisition date, we paid the sellers less than $0.1 million relating to an acquisition date working capital adjustment. The Owners acquisition is not material in relation to the Company’s results of operations or financial position.

The final allocation of the purchase price is as follows:



(in thousands)

Accounts receivable, net	$	32
Prepaid expenses	28
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
	21,767
Accounts payable	(22		)

Purchase price	$	21,745

Mortgage Builder Acquisition

On September 12, 2014, we acquired certain assets and assumed certain liabilities of Mortgage Builder Software, Inc. (“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. After the acquisition date, the sellers paid the Company $0.2 million relating to an acquisition date working capital adjustment. The Mortgage Builder acquisition is not material in relation to the Company’s results of operations or financial position.

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



(in thousands)

Cash	$	668
Accounts receivable, net	1,102
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationships	4,824
Goodwill	9,135
	18,038
Accounts payable and accrued expenses	(950		)

Purchase price	$	17,088

See Note 10 for additional information on the impairment of Technology Services goodwill for the year ended December 31, 2015, which includes Mortgage Builder goodwill.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&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=56956515&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=56956515&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
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+ Details

AVAILABLE FOR SALE SECURITIES	12 Months Ended
AVAILABLE FOR SALE SECURITIES	Dec. 31, 2016
Available-for-sale Securities [Abstract]
AVAILABLE FOR SALE SECURITIES	AVAILABLE FOR SALE SECURITIES During the year ended December 31, 2016, we purchased 4.1 million shares of Residential common stock for $48.2 million. This investment is classified as available for sale and reflected in the condensed consolidated balance sheets at fair value at the balance sheet date ($45.8 million as of December 31, 2016) (no comparative amount as of December 31, 2015). Unrealized gains and losses on available for sale securities are reflected in other comprehensive income, unless there is an impairment that is other than temporary. In the event that a decline in market value is other than temporary, we would record a charge to earnings and a new cost basis in the investment would be established. During the year December 31, 2016, we incurred expenses of $3.4 million and earned dividends of $2.3 million related to this investment (no comparative amounts in 2015).

ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

ACCOUNTS RECEIVABLE, NET

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



(in thousands)	2016			2015

Billed	$	58,392		$	67,021
Unbilled	39,853			56,458
	98,245			123,479
Less: allowance for doubtful accounts	(10,424		)	(18,456		)

Total	$	87,821		$	105,023

Unbilled receivables consist primarily of certain asset management and default management services for which we generally recognize revenues over the service delivery period but bill following completion of the service. We also include amounts in unbilled receivables that are earned during a month and billed in the following month.

Bad debt expense amounted to $1.8 million, $5.5 million and $16.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. The higher bad debt expense in 2014 was primarily driven by the default management services business. A change in many of our default management services customers’ business models and fourth quarter 2014 discussions with those customers led us to believe that a portion of the accounts receivable balance was no longer collectible.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2016

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

PREPAID EXPENSES AND OTHER CURRENT ASSETS

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



(in thousands)	2016		2015

Maintenance agreements, current portion	$	6,590	$	7,000
Short-term investments in real estate	13,025		—
Income taxes receivable	5,186		633
Prepaid expenses	6,919		7,873
Litigation settlement insurance recovery (Note 23)	4,000		—
Other current assets	6,888		6,245

Total	$	42,608	$	21,751

PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

Premises and equipment, net consists of the following as of December 31:



(in thousands)	2016			2015

Computer hardware and software	$	164,877		$	177,010
Office equipment and other	20,188			21,720
Furniture and fixtures	13,997			14,443
Leasehold improvements	33,808			35,503
	232,870			248,676
Less: accumulated depreciation and amortization	(129,397		)	(129,555		)

Total	$	103,473		$	119,121

Depreciation and amortization expense amounted to $36.8 million, $36.5 million and $29.0 million for the years ended December 31, 2016, 2015 and 2014, 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 and comprehensive income.

In the fourth quarter of 2015, we recognized a $4.1 million premises and equipment impairment loss in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen. There were no impairments of premises and equipment for the years ended December 31, 2016 and 2014.

GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Goodwill was recorded primarily in connection with the 2016 acquisition of Granite, the 2015 acquisitions of CastleLine and RentRange and Investability, the 2014 acquisitions of Mortgage Builder and Owners, the 2013 acquisitions of the Homeward fee-based business and Equator, LLC (“Equator”), the 2011 acquisitions of Springhouse, LLC and Tracmail and the 2010 acquisition of MPA. Note 5 discusses the 2016, 2015 and 2014 acquisitions. Changes in goodwill during the years ended December 31, 2016 and 2015 are summarized below:



(in thousands)	Mortgage Services			Financial Services		Technology Services			Total

Balance January 1, 2015	$	32,733		$	2,378	$	55,740		$	90,851
Acquisition of CastleLine	28,125			—		—			28,125
Acquisition of RentRange and Investability	19,565			—		—			19,565
Impairment of Technology Services goodwill	—			—		(55,740		)	(55,740		)
Balance, December 31, 2015	80,423			2,378		—			82,801
CastleLine purchase price allocation adjustment ⁽¹⁾	(1,395		)	—		—			(1,395		)
RentRange and Investability purchase price allocation adjustment ⁽²⁾	50			—		—			50
Acquisition of Granite	4,827			—		—			4,827

Balance, December 31, 2016	$	83,905		$	2,378	$	—		$	86,283

______________________________________


⁽¹⁾	During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See Note 5.


⁽²⁾	During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See Note 5.

During 2014, the fair value of the contingent consideration related to the Equator acquisition (“Equator Earn Out”) 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. In the second quarter of 2014, management determined that Equator goodwill should be tested for impairment as a result of the decline in fair value of the Equator Earn Out. 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. Based on this goodwill assessment, we determined that the fair value of Equator was less than its carrying value and goodwill was impaired. As a result, we recorded an impairment loss of $37.5 million.

During our fourth quarter 2014 and 2015 annual goodwill assessments, 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 as a result of the goodwill impairment recorded in the second quarter of 2014. We calculated the fair value of each of our reporting units by using a discounted cash flow analysis and concluded that the fair values of the Mortgage Services, Financial Services and Technology Services reporting units exceeded their carrying values by a significant margin in 2014 and that the fair values of the Mortgage Services and Financial Services reporting units exceeded their carrying values by a significant margin in 2015. In 2015, the fair value of the Technology Services reporting unit was less than its carrying value. Accordingly, we performed step two of the impairment test for the Technology Services reporting unit and determined that the remaining $55.7 million of goodwill was impaired. As a result, we recorded a $55.7 million impairment loss in the fourth quarter of 2015. This goodwill impairment was primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen. There were no additional goodwill impairments as of December 31, 2015 and 2014. Based on our fourth quarter 2016 goodwill assessment, we concluded that there was no impairment of goodwill for the year ended December 31, 2016.

Intangible Assets, Net

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



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	2016		2015		2016			2015			2016		2015

Definite lived intangible assets:
Trademarks and trade names	13	$	15,354	$	15,244	$	(7,724	)	$	(6,491	)	$	7,630	$	8,753
Customer related intangible assets	10	277,828		274,428		(156,980		)	(113,725		)	120,848		160,703
Operating agreement	20	35,000		35,000		(12,104		)	(10,354		)	22,896		24,646
Non-compete agreements	4	1,560		1,435		(507		)	(115		)	1,053		1,320
Intellectual property	10	300		300		(85		)	(55		)	215		245
Other intangible assets	5	3,745		1,375		(955		)	(39		)	2,790		1,336

Total		$	333,787	$	327,782	$	(178,355	)	$	(130,779	)	$	155,432	$	197,003

Amortization expense for definite lived intangible assets was $47.6 million, $41.1 million and $37.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Expected annual definite lived intangible asset amortization expense for 2017 through 2021 is $35.0 million, $26.5 million, $21.1 million, $17.2 million and $12.7 million, respectively.

In the fourth quarter of 2015, we recorded an impairment loss of $11.9 million in our Technology Services segment related to customer relationship intangible assets from the 2013 Homeward and ResCap fee-based business acquisitions. These impairments of intangible assets were primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen. There were no impairments of intangible assets for the years ended December 31, 2016 and 2014.

- Definition

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

+ References + Details

OTHER ASSETS

12 Months Ended

Dec. 31, 2016

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

OTHER ASSETS

Other assets consist of the following as of December 31:



(in thousands)	2016		2015

Security deposits	$	5,508	$	5,341
Maintenance agreements, non-current portion	853		1,570
Restricted cash	4,127		4,801
Other	767		1,441

Total	$	11,255	$	13,153

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2016

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)	2016		2015

Accounts payable	$	8,787	$	11,644
Accrued expenses - general	26,426		30,347
Accrued salaries and benefits	47,614		46,564
Income taxes payable	308		3,316

Total	$	83,135	$	91,871

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



(in thousands)	2016		2015

Unfunded cash account balances	$	7,137	$	6,395
Other	11,924		9,871

Total	$	19,061	$	16,266

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

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



(in thousands)	2016			2015

Senior secured term loan	$	479,653		$	536,598
Less: debt issuance costs, net	(4,486		)	(6,184		)
Less: unamortized discount, net	(1,622		)	(2,236		)
Net long-term debt	473,545			528,178
Less: current portion	(5,945		)	(5,945		)

Long-term debt, less current portion	$	467,600		$	522,233

On November 27, 2012, Altisource Solutions S.à r.l., a wholly-owned subsidiary of Altisource Portfolio Solutions S.A., entered into a senior secured term loan agreement with Bank of America, N.A., as administrative agent, and certain lenders. Altisource Portfolio Solutions S.A. and certain wholly-owned subsidiaries are guarantors of the term loan (collectively, the “Guarantors”). We subsequently amended the senior secured term loan agreement to increase the principal amount of the senior secured term loan and, among other changes, re-establish the $200.0 million incremental term loan facility accordion, lower the interest rate, extend the maturity date by approximately one year and increase the maximum amount of Restricted Junior Payments (as defined in the senior secured term loan agreement; other capitalized terms, unless defined herein, are defined in the senior secured term loan agreement).

After giving effect to the third amendment entered into on August 1, 2014, the term loan must be repaid in equal consecutive quarterly principal installments of $1.5 million, 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, 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 or as otherwise provided 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, subject to certain exceptions, the term loan is subject to mandatory prepayment upon issuances of debt, casualty and condemnation events and sales of assets, as well as from a percentage of Consolidated Excess Cash Flow if the leverage ratio is greater than 3.00 to 1.00, as calculated in accordance with the provisions of the senior secured term loan (the percentage increases if the leverage ratio exceeds 3.50 to 1.00). No mandatory prepayments were owed for the year ended December 31, 2016.

During 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt. During 2015, we repurchased portions of our senior secured term loan with an aggregate par value of $49.0 million at a weighted average discount of 10.3%, recognizing a net gain of $3.8 million on the early extinguishment of debt. These net gains are included in other income (expense), net in the consolidated statements of operations and comprehensive income (see Note 20).

The term loan bears interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. 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, 2016 was 4.50%.

Term loan payments 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, dividends and repayment of junior indebtedness; 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 our 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, (vii) bankruptcy and insolvency events, (viii) entry by a court of one or more judgments against us 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 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, 2016, debt issuance costs were $4.5 million, net of $5.8 million of accumulated amortization. At December 31, 2015, debt issuance costs were $6.2 million, net of $4.1 million of accumulated amortization.

Interest expense on the term loans, including amortization of debt issuance costs and the net debt discount, totaled $24.4 million, $28.2 million and $23.4 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Maturities of our long-term debt are as follows:



(in thousands)

2017	$	5,945
2018	5,945
2019	5,945
2020	461,818

	$	479,653

OTHER NON-CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2016

Other Liabilities Disclosure [Abstract]

OTHER NON-CURRENT LIABILITIES

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



(in thousands)	2016		2015

Acquisition related obligations	$	—	$	8,422
Other non-current liabilities	10,480		9,731

Total	$	10,480	$	18,153

We recognized a net gain on the change in the fair value of the Equator Earn Out of $7.6 million for the year ended December 31, 2015 (no comparative amount for 2016). The liability for contingent consideration was reflected at fair value and adjusted each reporting period with the change in fair value recognized in earnings. In 2015, we reached an agreement with the former owners of Equator to extinguish any liability for the Equator Earn Out. In connection with this settlement, we reduced the liability for the Equator Earn Out to $0 and recognized a $7.6 million increase in earnings.

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The following table presents the carrying amount and estimated fair value of financial instruments held by the Company and acquisition contingent consideration liabilities at December 31, 2016 and 2015. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:



	December 31, 2016								December 31, 2015
(in thousands)	Carrying Amount		Fair Value						Carrying Amount		Fair Value
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	149,294	$	149,294	$	—	$	—	$	179,327	$	179,327	$	—	$	—
Restricted cash	4,127		4,127		—		—		4,801		4,801		—		—
Available for sale securities	45,754		45,754		—		—		—		—		—		—

Liabilities:
Acquisition contingent consideration	376		—		—		376		3,932		—		—		3,932
Long-term debt	479,653		—		474,856		—		536,598		—		469,523		—

Fair Value Measurements on a Recurring Basis

Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair value due to the highly liquid nature of these instruments and were measured using Level 1 inputs.

Available for sale securities are carried at fair value and consist of 4.1 million shares of Residential common stock. Available for sale securities are measured using Level 1 inputs as these securities have quoted prices in active markets.

The fair value of our long-term debt is based on quoted market prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs.

In accordance with ASC Topic 805, Business Combinations, liabilities for contingent consideration are reflected at fair value and adjusted each reporting period with the change in fair value recognized in earnings. Liabilities for acquisition related contingent consideration were recorded in connection with the acquisitions of certain assets and assumption of certain liabilities of Mortgage Builder and Owners in 2014. We measure 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 include sensitivities pertaining to discount rates and financial projections.

During 2016, the Company reduced the fair value of the acquisition contingent consideration related to the Mortgage Builder and Owners acquisitions by $1.4 million and $2.2 million, respectively, as a result of changes in the fair value of expected payments.

There were no transfers between different levels during the periods presented.

Fair Value Measurements on a Nonrecurring Basis

The Company recorded a goodwill impairment loss of $55.7 million for the year ended December 31, 2015, based on fair value measurements (no comparative amount in 2016). In addition, the Company recorded an intangible asset impairment loss of $11.9 million and a premises and equipment impairment loss of $4.1 million for the year ended December 31, 2015, based on fair value measurements (no comparative amounts in 2016). These fair value measurements were based on inputs classified as Level 3 in the valuation hierarchy (see Notes 9 and 10).

Concentrations of Credit Risk

Financial instruments that subject us to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. Our policy is to deposit our cash and cash equivalents with major financial institutions. The Company derives the largest portion of its revenues from Ocwen (see Note 3 for additional information on Ocwen revenues and accounts receivable balance). The Company mitigates its concentrations of credit risk with respect to accounts receivable by actively monitoring past due accounts and the economic status of customers, if known.

- Definition

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

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

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, 2016, we had 25.4 million shares authorized and issued, and 18.8 million shares of common stock outstanding. At December 31, 2015, we had 25.4 million shares authorized and issued, and 19.0 million shares of common stock outstanding. The holders of shares of Altisource common stock generally are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares generally will possess all voting power.

On October 9, 2015, we acquired RentRange and Investability for $24.8 million, which included a cash component and the issuance of 247 thousand shares of restricted common stock of the Company with a value of $7.3 million as of the closing date. The restricted stock is subject to transfer restrictions and potential forfeiture provisions. These restrictions and forfeiture provisions will be removed over a four year period, subject to meeting certain continued employment conditions with the Company and meeting certain acquisition related escrow release conditions. During 2016, restrictions were removed on 55 thousand shares. In addition, on July 17, 2015, we acquired CastleLine for $33.4 million, which included a cash component and the issuance of 495 thousand shares of restricted common stock of the Company with a value of $14.4 million as of the closing date. During 2016, restrictions were removed on the 495 thousand shares. See Note 5 for additional information about these acquisitions.

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, employees and to employees of our affiliates. As of December 31, 2016, 1.5 million share-based awards were available for future grant under the Plan. Expired and forfeited awards are available for reissuance.

Share Repurchase Program

On May 18, 2016, our shareholders approved a new share repurchase program which replaced the previous share repurchase program. Under the new program, we are authorized to purchase up to 4.6 million shares of our common stock, based on a limit of 25% of the outstanding shares of common stock on the date of approval 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 prior programs. Under the existing and prior programs, we purchased 1.4 million shares of common stock at an average price of $26.81 per share during the year ended December 31, 2016, 2.1 million shares at an average price of $27.60 per share during the year ended December 31, 2015 and 2.5 million shares at an average price of $103.67 per share during the year ended December 31, 2014. As of December 31, 2016, approximately 3.9 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 and may prevent repurchases in certain circumstances. As of December 31, 2016, approximately $395 million was available to repurchase shares of 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, officers and directors. We recorded share-based compensation expense of $6.2 million, $4.8 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, estimated unrecognized compensation costs related to share-based awards amounted to $6.2 million which we expect to recognize over a weighted average remaining requisite service period of approximately 2.13 years.

Stock Options

Stock option grants are composed of a combination of service-based, market-based and performance-based options.

Service-Based Options. These options generally vest over three years or four years with equal annual cliff-vesting and expire on the earlier of ten years after the date of grant or following termination of service. A total of 0.9 million service-based awards were outstanding at December 31, 2016.

Market-Based Options. These option grants generally 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. Market-based awards vest in three or four year installments with the first installment vesting upon the achievement of the criteria and the remaining installments vesting thereafter in annual installments. Market-based options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service or in the final three years of the option term, in which case vesting will generally continue in accordance with the provisions of the award agreement. A total of 1.0 million market-based awards were outstanding at December 31, 2016.

Performance-Based Options. These option grants begin to vest upon the achievement of certain business unit specific financial measures. Generally, 25% of the awards vest upon the achievement of the performance criteria and the remaining 75% vest thereafter in three equal annual installments. The award of performance-based options is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is below a certain threshold, the award is canceled. The options expire on the earlier of ten years after the date of grant or following termination of service. A total of 0.1 million performance-based awards were outstanding at December 31, 2016.

The Company granted 0.1 million stock options (at a weighted average exercise price of $29.17 per share), 0.9 million stock options (at a weighted average exercise price of $24.21 per share) and 0.1 million stock options (at a weighted average exercise price of $84.61 per share) during the years ended December 31, 2016, 2015 and 2014, respectively. Vesting of share-based awards are generally contingent on continued employment.

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

2016

2015

2014

Black-Scholes

Binomial

Black-Scholes

Binomial

Black-Scholes

Binomial

Risk-free interest rate (%)

1.25 – 1.89

0.23 – 2.23

1.50 – 1.91

0.02 – 2.34

1.80 – 1.91

0.01 – 2.49

Expected stock price volatility (%)

59.75 – 62.14

59.76 – 62.14

55.06 – 59.73

37.57 – 45.15

38.38 – 45.15

Expected dividend yield

—

Expected option life

(in years)

6.00 – 6.25

4.06 – 4.88

6.00 – 6.25

4.08 – 4.92

6.25

4.36 – 5.83

Fair value

$11.15 – $18.60

$11.06 – $19.27

$10.01 – $17.66

$9.91 – $18.05

$15.54 – $41.79

$12.66 – $33.62

We determined the expected option life of all service-based stock option grants using the simplified method. We use the simplified method because we believe that our historical data does not provide a reasonable basis upon which to estimate expected option life.

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



(in thousands, except per share amounts)	2016		2015		2014

Weighted average grant date fair value of stock options granted per share	$	16.82	$	13.20	$	26.92
Intrinsic value of stock options exercised	18,209		1,998		10,250
Grant date fair value of stock options that vested during the period	2,698		1,616		2,641

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, 2015	3,163,125		$	20.13	4.94	$	35,842
Granted	144,654		29.17
Exercised	(1,173,132	)	9.63
Forfeited	(138,138	)	34.13

Outstanding at December 31, 2016	1,996,509		25.98		5.32	15,942

Exercisable at December 31, 2016	1,225,924		21.00		3.45	10,825

The following table summarizes information about stock options outstanding and exercisable at December 31, 2016:



	Options outstanding				Options exercisable
Exercise price range ⁽¹⁾	Number	Weighted average remaining contractual life (in years)	Weighted average exercise price		Number	Weighted average remaining contractual life (in years)	Weighted average exercise price

Up to $10.00	480,003	1.53	$	9.14	480,003	1.53	$	9.14
$10.01 — $20.00	298,137	7.91	18.74		101,438	7.77	18.65
$20.01 — $30.00	916,491	5.93	25.74		520,159	3.88	23.79
$30.01 — $40.00	109,003	7.63	32.46		43,729	4.96	32.83
$40.01 — $50.00	5,000	7.94	49.06		625	7.94	49.06
$60.01 — $70.00	71,000	5.19	60.73		51,375	5.19	60.74
$70.01 — $80.00	25,000	7.86	72.78		3,125	7.86	72.78
$80.01 — $90.00	40,000	7.04	85.63		13,438	6.46	84.52
$90.01 — $100.00	50,000	7.18	95.40		11,094	7.12	94.30
$100.01 — $110.00	1,875	7.37	105.11		938	7.37	105.11

	1,996,509				1,225,924

______________________________________


⁽¹⁾	These options contain market-based components as described above.

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



	Market-based options
Vesting price	Ordinary performance		Extraordinary performance

$40.01 — $50.00	14,500		—
$50.01 — $60.00	47,129		16,483
$60.01 — $70.00	17,884		6,250
$70.01 — $80.00	—		1,000
$80.01 — $90.00	—		25,467
$90.01 — $100.00	2,500		8,943
$140.01 — $150.00	12,500		1,250
$170.01 — $180.00	12,500		—
$180.01 — $190.00	—		23,375
Over $190.00	22,500		23,750

Total	129,513		106,518

Weighted average share price	$	50.32	$	48.13

Other Share-Based Awards

The Company’s other share-based and similar types of awards are composed of restricted shares and, through August 29, 2016, Equity Appreciation Rights (“EAR”). Effective August 29, 2016, the EAR plans were terminated.

The restricted shares are service-based awards that vest over one to four years with either annual cliff vesting, vesting of all of the restricted shares at the end of the vesting period or vesting beginning after two years of service. The Company granted 13 thousand restricted shares (at a weighted average price of $26.66 per share) during the year ended December 31, 2016.

The following table summarizes the activity related to our restricted shares:



	Number of restricted shares

Outstanding at December 31, 2015	272,326
Granted	12,878
Issued	(38,074	)
Forfeited	(15,400	)

Outstanding at December 31, 2016	231,730

Share-based compensation expense for stock options and restricted shares is recorded net of estimated forfeiture rates ranging from 0% to 40%.

REVENUE REVENUE

12 Months Ended

Dec. 31, 2016

Revenues [Abstract]

REVENUE

Revenue includes service revenue, reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One and Wholesale One, consolidated entities not owned by Altisource, and are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 2). The components of revenue were as follows for the years ended December 31:



(in thousands)	2016		2015		2014

Service revenue	$	942,599	$	940,920	$	938,679
Reimbursable expenses	52,011		107,344		137,634
Non-controlling interests	2,693		3,202		2,603

Total	$	997,303	$	1,051,466	$	1,078,916

COST OF REVENUE

12 Months Ended

Dec. 31, 2016

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 costs 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)	2016		2015		2014

Compensation and benefits	$	264,796	$	261,839	$	255,889
Outside fees and services	302,156		248,278		243,325
Reimbursable expenses	52,011		107,344		137,634
Technology and telecommunications	44,295		43,177		48,834
Depreciation and amortization	26,787		26,689		21,498

Total	$	690,045	$	687,327	$	707,180

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

12 Months Ended

Dec. 31, 2016

Selling, General and Administrative Expense [Abstract]

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

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



(in thousands)	2016		2015		2014

Compensation and benefits	$	55,577	$	54,897	$	45,098
Professional services	23,284		23,183		18,598
Occupancy related costs	37,370		39,917		38,262
Amortization of intangible assets	47,576		41,135		37,680
Depreciation and amortization	10,001		9,781		7,548
Marketing costs	27,847		27,499		24,130
Other	12,500		24,456		30,417

Total	$	214,155	$	220,868	$	201,733

OTHER INCOME (EXPENSE), NET

12 Months Ended

Dec. 31, 2016

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)	2016			2015			2014

Gain on early extinguishment of debt	$	5,464		$	3,836		$	—
Expenses related to the purchase of available for sale securities	(3,356		)	—			—
Loss on HLSS equity securities and dividends received, net	—			(1,854		)	—
Interest income	91			133			103
Other, net	1,431			76			71

Total	$	3,630		$	2,191		$	174

During March 2015, we purchased 1.6 million shares of HLSS common stock in the open market for $30.0 million. This investment was classified as available for sale. On April 6, 2015, HLSS completed the sale of substantially all of its assets to New Residential Investment Corp. (“NRZ”) and adopted a plan of complete liquidation and dissolution. During April 2015, we received liquidating dividends and other dividends from HLSS totaling $20.4 million and we sold all of our 1.6 million shares of HLSS common stock in the open market for $7.7 million. As a result of these transactions, we recognized a net loss of $1.9 million for the year ended December 31, 2015 (no comparative amounts for 2016 and 2014) in connection with our investment in HLSS.

INCOME TAXES

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

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



(in thousands)	2016		2015		2014

Domestic - Luxembourg	$	8,498	$	27,884	$	124,181
Foreign - U.S.	16,655		5,944		9,575
Foreign - Non-U.S.	19,168		19,232		13,509

Total	$	44,321	$	53,060	$	147,265

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



(in thousands)	2016			2015			2014

Current:
Domestic - Luxembourg	$	160		$	1,787		$	4,415
Foreign - U.S. Federal	9,556			539			75
Foreign - U.S. State	258			855			476
Foreign - Non-U.S.	5,558			6,405			4,046

	$	15,532		$	9,586		$	9,012
Deferred:
Domestic - Luxembourg	$	432		$	—		$	—
Foreign - U.S. Federal	(3,065		)	(108		)	1,756
Foreign - U.S. State	(100		)	(526		)	(281		)
Foreign - Non-U.S.	136			(692		)	(309		)

	$	(2,597	)	$	(1,326	)	$	1,166

Total	$	12,935		$	8,260		$	10,178

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 29.2% 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, the Philippines and Uruguay. 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 June 2017, and may also be extended. We operate in a Uruguay free trade zone that provides an indefinite future tax benefit. 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), $0.8 million ($0.04 per diluted share) and $0.9 million ($0.04 per diluted share) for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company accounts for certain income and expense items differently for financial reporting 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)	2016			2015

Non-current deferred tax assets:
Net operating loss carryforwards	$	5,891		$	5,417
U.S. federal and state tax credits	316			2,577
Non-U.S. deferred tax assets	3,674			2,472
Share-based compensation	2,486			1,750
Accrued expenses	11,527			7,730
Non-current deferred tax liabilities:
Intangible assets	(4,203		)	(4,508		)
Depreciation	(6,964		)	(7,446		)
Non-U.S. deferred tax liability	(1,342		)	—
Other	(626		)	(815		)
	10,759			7,177

Valuation allowance	(3,467		)	(3,558		)

Non-current deferred tax assets, net	$	7,292		$	3,619

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 2016 relates to a decrease in the tax rate applied to the valuation allowance and a decrease in foreign losses generated in the current year that 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, 2016 were approximately $71.9 million, which if distributed would result in additional tax due totaling approximately $13.4 million.

The Company had a deferred tax asset of $5.9 million as of December 31, 2016 relating to Luxembourg, U.S. federal, state and foreign net operating losses compared to $5.4 million as of December 31, 2015. Of this amount, $1.4 million as of December 31, 2016 related to state net operating losses subject to a valuation allowance compared to $1.6 million as of December 31, 2015, and $2.2 million as of December 31, 2016 related to Luxembourg net operating losses subject to a valuation allowance compared to $2.3 million as of December 31, 2015. The gross amount of net operating losses available for carryover to future years is approximately $17.3 million as of December 31, 2016 compared to $14.8 million as of December 31, 2015. These losses are scheduled to expire between the years 2023 and 2036. Of this amount, $6.9 million as of December 31, 2016 compared to $10.1 million as of December 31, 2015 relates to Nationwide Credit, Inc. (“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.

In addition, the Company had a deferred tax asset of $0.3 million and $2.6 million as of December 31, 2016 and 2015, respectively, relating to the U.S. federal and state tax credits. The U.S. federal credit carryforward is scheduled to expire between 2032 and 2036. The state tax credit carryforwards are scheduled to expire between 2017 and 2026.

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



	2016		2015		2014

Statutory tax rate	29.22	%	29.22	%	29.22	%
Permanent difference related to Luxembourg intangible assets	—		(13.56	)	(22.60	)
Change in valuation allowance	(0.08	)	0.83		(0.05	)
State tax expense	2.30		0.29		0.03
Tax credits	(1.81	)	(2.34	)	(0.71	)
Uncertain taxes	(3.65	)	1.39		0.88
Other	3.20		(0.26	)	0.14

Effective tax rate	29.18	%	15.57	%	6.91	%

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 (2013 through 2015), India (2010 through 2016) and Luxembourg (2010 through 2014).

The following table reconciles the amount of unrecognized tax benefits for the years ended December 31:



(in thousands)	2016			2015

Amount of unrecognized tax benefits as of the beginning of the year	$	2,005		$	1,153
Decreases as a result of tax positions taken in a prior period	(1,527		)	—
Increases as a result of tax positions taken in a prior period	60			638
Increases as a result of tax positions taken in the current period	220			214

Amount of unrecognized tax benefits as of the end of the year	$	758		$	2,005

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate is $0.6 million and $2.1 million as of December 31, 2016 and 2015, respectively. The Company recognizes interest, if any, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2016 and 2015, the Company had recorded accrued interest and penalties related to unrecognized tax benefits of less than $0.1 million and $0.2 million, respectively.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

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)	2016		2015		2014

Net income attributable to Altisource	$	28,693	$	41,598	$	134,484

Weighted average common shares outstanding, basic	18,696		19,504		21,625
Dilutive effect of stock options and restricted shares	916		1,115		2,009

Weighted average common shares outstanding, diluted	19,612		20,619		23,634

Earnings per share:
Basic	$	1.53	$	2.13	$	6.22

Diluted	$	1.46	$	2.02	$	5.69

For the years ended December 31, 2016, 2015 and 2014, 0.4 million options, 0.6 million options and less than 0.1 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive and excluded from the computation of diluted EPS because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS are 0.4 million options, 0.3 million options and 0.1 million options for the years ended December 31, 2016, 2015 and 2014, respectively, granted for shares that begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met.

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS

12 Months Ended

Dec. 31, 2016

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 Firefighters’ Pension Fund filed a putative securities class action suit against Altisource Portfolio Solutions S.A. and certain of its current or former 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 Portfolio Solutions S.A. share prices. The Court subsequently appointed the Pension Fund for the International Union of Painters and Allied Trades District Council 35 and the Annuity Fund for 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 added 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 Altisource Portfolio Solutions S.A. securities between April 25, 2013 and December 21, 2014 and an unspecified amount of damages. Altisource Portfolio Solutions S.A. moved to dismiss the suit on March 23, 2015. On September 4, 2015, the Court granted the defendants’ motion to dismiss, finding that the Lead Plaintiffs’ amended complaint failed to state a claim as to any of the defendants, but permitting the Lead Plaintiffs to file another amended complaint. Lead Plaintiffs subsequently filed second and third amended complaints with substantially similar claims and theories. Altisource Portfolio Solutions S.A. moved to dismiss the third amended complaint on October 22, 2015. On December 22, 2015, the Court issued an order dismissing with prejudice all claims against Ocwen Financial Corporation and certain claims against Altisource Portfolio Solutions S.A. and the officer and director defendants, but denying the motion to dismiss as to other claims. On December 19, 2016, the Court granted Lead Plaintiffs leave to file the fourth amended complaint, and Lead Plaintiffs filed the fourth amended complaint on December 28, 2016. On January 6, 2017, Defendants filed a motion to strike certain matters from the fourth amended complaint and a motion to dismiss certain claims pled in the fourth amended complaint. Before the Court ruled on Defendants’ motions, the parties notified the Court on January 19, 2017 of their agreement to settle the action, which is subject to Court approval. On February 10, 2017, the Court entered an order preliminarily approving the settlement, certifying a settlement class, approving the form and content of notice of the settlement to class members, and setting a hearing for May 30, 2017 to determine whether the settlement should be approved and the case dismissed with prejudice. Under the proposed settlement, Altisource Portfolio Solutions S.A. will pay a total of $32 million in cash, a portion of which will be funded by insurance proceeds, to a settlement fund to resolve all claims asserted and which could have been asserted on behalf of investors who purchased or otherwise acquired Altisource Portfolio Solutions S.A. stock between April 25, 2013 and December 21, 2014. The proposed settlement provides that Altisource Portfolio Solutions S.A. and the officer and director defendants deny all claims of wrongdoing or liability.

On February 11, 2015, W.A. Sokolowski, an alleged shareholder of Ocwen Financial Corporation, filed an amended shareholder derivative complaint in the United States District Court for the Southern District of Florida against Ocwen Financial Corporation (as a nominal defendant), certain of its current or former officers and directors, Altisource Portfolio Solutions S.A. and other companies. The suit seeks recovery of an unspecified amount of damages for alleged breaches of fiduciary duty by Ocwen Financial Corporation’s officers and directors, which were allegedly aided and abetted by Altisource Portfolio Solutions S.A. and other defendants. Altisource Portfolio Solutions S.A. filed a motion to dismiss the complaint on November 9, 2015. While that motion was pending, additional lawsuits alleging similar claims for alleged breaches of fiduciary duties by current or former Ocwen Financial Corporation officers and directors were filed in or transferred to the Court. The Court subsequently consolidated these actions and denied Altisource Portfolio Solutions S.A.’s motion to dismiss the Sokolowski complaint without prejudice to re-file following appointment of lead counsel for the consolidated action and the filing or designation of an operative complaint. Lead counsel for plaintiffs filed their Consolidated Verified Shareholder Derivative Complaint (the “Consolidated Complaint”) on March 8, 2016. The Consolidated Complaint alleges claims that Altisource Portfolio Solutions S.A., its subsidiary Beltline Road Insurance Agency, Inc. and other defendants aided and abetted alleged breaches of fiduciary duties by Ocwen Financial Corporation officers and directors and/or were unjustly enriched in connection with business dealings with Ocwen Financial Corporation. The Consolidated Complaint also seeks contribution from Altisource Portfolio Solutions S.A., its subsidiary Beltline Road Insurance Agency, Inc. and other defendants for amounts Ocwen Financial Corporation paid in connection with a settlement with the New York State Department of Financial Services. Altisource Portfolio Solutions S.A. and Beltline Road Insurance Agency, Inc. filed motions to dismiss the Consolidated Complaint on May 13, 2016. On October 13, 2016, the Court disclosed that the parties reached a settlement at a settlement conference held that same day. Following a Final Approval Hearing on January 18, 2017, the Court granted final approval of the settlement and entered a judgment dismissing the action with prejudice. Neither Altisource Portfolio Solutions S.A. nor Beltline Road Insurance Agency, Inc. made any monetary contribution to the settlement, and both Altisource Portfolio Solutions S.A. and Beltline Road Insurance Agency, Inc. deny all claims of wrongdoing or liability in connection with the Sokolowski action.

On March 26, 2015, Robert Moncavage, an alleged shareholder of Ocwen Financial Corporation, filed an amended shareholder derivative complaint in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida against Ocwen Financial Corporation (as a nominal defendant), certain of its current or former officers and directors, Altisource Portfolio Solutions S.A. and other companies. The suit seeks recovery of an unspecified amount of damages for alleged breaches of fiduciary duties by the current or former Ocwen Financial Corporation officers and directors, which were allegedly aided and abetted by Altisource Portfolio Solutions S.A. and other defendants. On November 9, 2015, the Court entered an order staying all proceedings in the case pending further order of the Court. The judgment entered in connection with the Sokolowski action discussed above bars further prosecution of all claims asserted, or that could have been asserted, in this action based on the facts, events, conduct, and transactions alleged, all of which were released as part of the Sokolowski settlement. On February 9, 2017, the plaintiff filed a notice of voluntary dismissal without prejudice and submitted a proposed order to the Court asking it to approve the dismissal of plaintiff’s claims against all defendants. The proposed order dismissing the action without prejudice is currently pending with the Court. Altisource Portfolio Solutions S.A. denies all claims of wrongdoing or liability in connection with the Moncavage action.

In addition to the matters 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

Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities 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.

In addition, on November 10, 2016, Altisource received a Notice and Opportunity to Respond and Advise (“NORA”) letter from the Consumer Financial Protection Bureau (“CFPB”) indicating that the CFPB is considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen. The NORA letter provides the recipient an opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced. On December 15, 2016, we provided a written response to the NORA letter setting forth the legal, policy and factual reasons why we believe an enforcement action is not warranted. We are committed to resolving any potential concerns of the CFPB. If the CFPB were to bring an enforcement action against us, the resolution of such action could have a material adverse impact on our business, reputation, financial condition and results of operations. However, we believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential CFPB enforcement action that may be under consideration.

Ocwen Related Matters

Ocwen is our largest customer and 56% of our 2016 revenue was from Ocwen. Additionally, 19% of our 2016 revenue was earned on the portfolios serviced by Ocwen, when a party other than Ocwen selected Altisource as the service provider.

Ocwen has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, requests for information and other actions and is subject to pending legal proceedings that have or could result in adverse regulatory or other actions against Ocwen. While not all inclusive, regulatory actions to date have included subjecting Ocwen to independent oversight of its operations and placing certain restrictions on its ability to acquire servicing rights. Ocwen may become subject to future federal and state regulatory investigations, inquiries, requests for information and legal proceedings, any of which could also result in adverse regulatory or other actions against Ocwen.

As a result of the sale of substantially all of the assets of HLSS to NRZ in April of 2015, NRZ owned the rights to approximately 78% of Ocwen’s non-government-sponsored enterprise (“non-GSE”) servicing rights as of September 30, 2016. Under an agreement between NRZ and Ocwen, NRZ has the right (not necessarily the obligation or ability) to transfer servicing away from Ocwen if Ocwen does not maintain certain minimum servicer ratings on or after April 6, 2017.

Any or all of the foregoing may have significant adverse 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 and software services), it may be required to seek changes to its existing pricing structure with us, 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 or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or 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 could be materially adversely affected, including from the possible 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 and Altisource fails to be retained as a service provider


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


•	Altisource fails to be retained as a service provider


•	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 above 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 variable nature of our cost structure would allow us to realign our cost structure in line with remaining revenue. Furthermore, in the event of a significant reduction in the volume of services purchased or loans serviced by Ocwen, we believe the impact to Altisource could occur over an extended period of time.

In this regard, we have a plan that we believe would allow 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, residential mortgage-backed securities trustees, lenders and others. During this period of time, we believe we would continue to generate revenue from the services we provide to the transferred portfolio. Additionally, we have several strategic initiatives that focus on diversifying and growing our revenue and customer base. Our major strategic initiatives include growing our:


•	Servicer Solutions business


•	Origination Solutions business


•	Consumer Real Estate Solutions business


•	Real Estate Investor Solutions business

We have a sales and marketing strategy to support these initiatives.

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

Leases

We lease certain premises and equipment under various operating lease agreements. Future minimum lease payments at December 31, 2016 under non-cancelable operating leases with an original term exceeding one year are as follows:



(in thousands)	Operating lease obligations

2017	$	17,857
2018	13,560
2019	10,706
2020	7,406
2021	5,469
Thereafter	1,154

	$	56,152

Total operating lease expense, net of sublease income, was $17.6 million, $20.0 million and $20.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. Sublease income was $0.5 million, less than $0.1 million and $0.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. The minimum lease payments at December 31, 2016 in the table above have not been reduced by minimum sublease rentals of $3.1 million due in the future under non-cancelable subleases. The operating leases generally relate to office locations and reflect customary lease terms which range from 1 to 9 years in duration.

We have executed four standby letters of credit totaling $2.1 million, related to four office leases that are secured by cash balances.

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 our Financial Services segment’s 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 $64.1 million and $66.6 million at December 31, 2016 and 2015, respectively.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

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 loan servicers, originators, rental property investors and real estate consumers with products, services and technologies that span the mortgage and real estate lifecycle. The Financial Services segment provides collection services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and customer relationship management services primarily to the utility, insurance and hotel industries. The Technology Services segment provides software and data analytics solutions that support the management of mortgage and real estate activities and marketplace transactions across the mortgage and real estate lifecycles and IT infrastructure management services. 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, law, compliance, human resources, vendor management, risk management and sales and marketing costs not allocated to the business units. Intercompany transactions primarily consist of IT infrastructure management services.

Financial information for our segments is as follows:



	For the year ended December 31, 2016
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	804,539	$	74,352	$	160,101		$	(41,689	)	$	997,303
Cost of revenue	514,832		53,841		159,869			(38,497		)	690,045
Gross profit (loss)	289,707		20,511		232			(3,192		)	307,258
Selling, general and administrative expenses	108,987		17,768		27,811			59,589			214,155
Litigation settlement loss, net of $4,000 insurance recovery	—		—		—			28,000			28,000
Income (loss) from operations	180,720		2,743		(27,579		)	(90,781		)	65,103
Other income (expense), net	43		92		66			(20,983		)	(20,782		)

Income (loss) before income taxes and non-controlling interests	$	180,763	$	2,835	$	(27,513	)	$	(111,764	)	$	44,321



	For the year ended December 31, 2015
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	786,648	$	88,448	$	215,482		$	(39,112	)	$	1,051,466
Cost of revenue	474,169		60,806		187,835			(35,483		)	687,327
Gross profit (loss)	312,479		27,642		27,647			(3,629		)	364,139
Selling, general and administrative expenses	105,153		18,707		29,902			67,106			220,868
Impairment losses	—		—		71,785			—			71,785
Change in the fair value of Equator Earn Out	—		—		(7,591		)	—			(7,591		)
Income (loss) from operations	207,326		8,935		(66,449		)	(70,735		)	79,077
Other income (expense), net	506		58		61			(26,642		)	(26,017		)

Income (loss) before income taxes and non-controlling interests	$	207,832	$	8,993	$	(66,388	)	$	(97,377	)	$	53,060



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

Revenue	$	793,143	$	98,499	$	227,300		$	(40,026	)	$	1,078,916
Cost of revenue	486,387		64,338		192,426			(35,971		)	707,180
Gross profit (loss)	306,756		34,161		34,874			(4,055		)	371,736
Selling, general and administrative expenses	94,686		18,791		32,393			55,863			201,733
Impairment losses	—		—		37,473			—			37,473
Change in the fair value of Equator Earn Out	—		—		(37,924		)	—			(37,924		)
Income (loss) from operations	212,070		15,370		2,932			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)

Income (loss) before income taxes and non-controlling interests	$	212,274	$	15,432	$	2,901		$	(83,342	)	$	147,265



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

Total assets:
December 31, 2016	$	306,207	$	38,746	$	130,032	$	214,227	$	689,212
December 31, 2015	325,461		53,757		165,778		176,802		721,798

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, 2016		December 31, 2015

United States	$	71,418	$	85,021
India	14,006		21,187
Luxembourg	14,791		9,944
Philippines	3,027		2,664
Uruguay	231		305

Total	$	103,473	$	119,121

- Definition

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

+ References

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables contain selected unaudited statement of operations information for each quarter of 2016 and 2015. 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.



	2016 quarter ended ^(1)(2)(3)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	250,132	$	255,799	$	252,745	$	238,627
Gross profit	81,269		81,428		78,743		65,818
Income (loss) before income taxes and non-controlling interests	21,085		23,977		18,796		(19,537		)
Net income (loss)	18,892		20,686		11,472		(19,664		)
Net income (loss) attributable to Altisource	18,494		19,994		10,589		(20,384		)

Earnings (loss) per share:
Basic	$	0.98	$	1.08	$	0.57	$	(1.08	)
Diluted	$	0.92	$	1.02	$	0.54	$	(1.08	)

Weighted average shares outstanding:
Basic	18,855		18,437		18,715		18,788
Diluted	20,040		19,604		19,568		18,788



	2015 quarter ended ^(1)(4)(5)(6)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	240,482	$	268,321	$	272,776	$	269,887
Gross profit	67,656		100,162		98,926		97,395
Income (loss) before income taxes and non-controlling interests	4,808		51,244		41,200		(44,192		)
Net income (loss)	4,408		46,846		37,897		(44,351		)
Net income (loss) attributable to Altisource	3,698		45,950		37,046		(45,096		)

Earnings (loss) per share:
Basic	$	0.18	$	2.35	$	1.94	$	(2.35	)
Diluted	$	0.18	$	2.22	$	1.82	$	(2.35	)

Weighted average shares outstanding:
Basic	20,172		19,571		19,091		19,196
Diluted	20,995		20,669		20,411		19,196

______________________________________


⁽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 Granite on July 29, 2016 (see Note 5).


⁽³⁾	During the fourth quarter of 2016, Altisource recorded a litigation settlement loss of $32.0 million in connection with a litigation matter. Also during the fourth quarter of 2016, Altisource recorded an insurance recovery related to this litigation settlement of $4.0 million. See Note 23.


⁽⁴⁾	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).


⁽⁵⁾	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.


⁽⁶⁾	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts


SCHEDULE II.	VALUATION AND QUALIFYING ACCOUNTS

For the years ended December 31, 2016, 2015 and 2014:



			Additions
(in thousands)	Balance at Beginning of Period		Charged to Expenses		Charged to Other Accounts Note ⁽¹⁾⁽²⁾			Deductions Note ⁽³⁾⁽⁴⁾		Balance at End of Period

Deductions from asset accounts:

Allowance for doubtful accounts:

Year 2016	$	18,456	$	1,829	$	250		$	10,111	$	10,424
Year 2015	22,675		5,514		(4		)	9,729		18,456
Year 2014	5,631		16,257		1,399			612		22,675

Valuation allowance for deferred tax assets:

Year 2016	$	3,558	$	228	$	—		$	319	$	3,467
Year 2015	3,115		674		—			231		3,558
Year 2014	3,189		—		—			74		3,115

______________________________________


⁽¹⁾	Allowance for doubtful accounts primarily includes amounts previously written off which were credited directly to this account when recovered.


⁽²⁾	Valuation allowance for deferred tax assets includes current year increase to valuation allowance charged to equity and reclassifications from other balance sheet accounts.


⁽³⁾	Amounts written off as uncollectible or transferred to other accounts or utilized.


⁽⁴⁾	Reductions to valuation allowances related to deferred tax assets.

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

12 Months Ended

Dec. 31, 2016

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

Goodwill

Intangible Assets, Net

Debt Issuance Costs and Long-Term Debt

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

Recently Adopted Accounting Pronouncements

Future Adoption of New Accounting Pronouncements

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

12 Months Ended

Dec. 31, 2016

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 for premises and equipment recorded in connection with a business combination 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

CUSTOMER CONCENTRATIONS (Tables)

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Schedule of customer concentration revenue as a percentage of segment and consolidated revenue



	2016	2015	2014

Mortgage Services	60%	63%	67%
Financial Services	17%	21%	27%
Technology Services	42%	54%	42%
Consolidated revenue	56%	60%	60%

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2016

Granite

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed v2 [Table Text Block]

The preliminary allocation of the purchase price is as follows:



(in thousands)	Initial purchase price allocation

Accounts receivable, net	$	1,024
Prepaid expenses	22
Other assets	25
Premises and equipment, net	299
Non-compete agreements	100
Trademarks and trade names	100
Customer relationships	3,400
Goodwill	4,827
	9,797
Accounts payable and accrued expenses	(57		)
Deferred revenue	(192		)

Purchase price	$	9,548

RentRange, Investability and Onit Solutions

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed v2 [Table Text Block]

The initial and final allocation of the purchase price is as follows:



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

Cash	$	3		$	—		$	3
Accounts receivable, net	245			(76		)	169
Premises and equipment, net	2,471			(1,067		)	1,404
Other assets	199			(196		)	3
Trademarks and trade names	1,205			—			1,205
Databases/other	910			1,035			1,945
Non-compete agreements	330			—			330
Customer relationships	255			—			255
Goodwill	19,565			50			19,615
	25,183			(254		)	24,929
Accounts payable and accrued expenses	(391		)	46			(345		)

Purchase price	$	24,792		$	(208	)	$	24,584

CastleLine

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed v2 [Table Text Block]

The initial and final allocation of the purchase price is as follows:



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

Cash	$	1,088		$	—		$	1,088
Accounts receivable, net	510			(410		)	100
Prepaid expenses	66			(46		)	20
Restricted cash	2,501			—			2,501
Non-compete agreements	1,105			25			1,130
Databases/other	465			1,335			1,800
Customer relationships	395			—			395
Trademarks and trade names	150			10			160
Deferred taxes	—			356			356
Goodwill	28,125			(1,395		)	26,730
	34,405			(125		)	34,280
Accounts payable and accrued expenses	(875		)	38			(837		)
Deferred revenue	(87		)	87			—

Purchase price	$	33,443		$	—		$	33,443

Owners

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed v2 [Table Text Block]

The final allocation of the purchase price is as follows:



(in thousands)

Accounts receivable, net	$	32
Prepaid expenses	28
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
	21,767
Accounts payable	(22		)

Purchase price	$	21,745

Mortgage Builder

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed v2 [Table Text Block]

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



(in thousands)

Cash	$	668
Accounts receivable, net	1,102
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationships	4,824
Goodwill	9,135
	18,038
Accounts payable and accrued expenses	(950		)

Purchase price	$	17,088

ACCOUNTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Schedule of accounts receivable, net

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



(in thousands)	2016			2015

Billed	$	58,392		$	67,021
Unbilled	39,853			56,458
	98,245			123,479
Less: allowance for doubtful accounts	(10,424		)	(18,456		)

Total	$	87,821		$	105,023

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015

Maintenance agreements, current portion	$	6,590	$	7,000
Short-term investments in real estate	13,025		—
Income taxes receivable	5,186		633
Prepaid expenses	6,919		7,873
Litigation settlement insurance recovery (Note 23)	4,000		—
Other current assets	6,888		6,245

Total	$	42,608	$	21,751

PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of premises and equipment, net

Premises and equipment, net consists of the following as of December 31:



(in thousands)	2016			2015

Computer hardware and software	$	164,877		$	177,010
Office equipment and other	20,188			21,720
Furniture and fixtures	13,997			14,443
Leasehold improvements	33,808			35,503
	232,870			248,676
Less: accumulated depreciation and amortization	(129,397		)	(129,555		)

Total	$	103,473		$	119,121

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of changes in goodwill

Changes in goodwill during the years ended December 31, 2016 and 2015 are summarized below:



(in thousands)	Mortgage Services			Financial Services		Technology Services			Total

Balance January 1, 2015	$	32,733		$	2,378	$	55,740		$	90,851
Acquisition of CastleLine	28,125			—		—			28,125
Acquisition of RentRange and Investability	19,565			—		—			19,565
Impairment of Technology Services goodwill	—			—		(55,740		)	(55,740		)
Balance, December 31, 2015	80,423			2,378		—			82,801
CastleLine purchase price allocation adjustment ⁽¹⁾	(1,395		)	—		—			(1,395		)
RentRange and Investability purchase price allocation adjustment ⁽²⁾	50			—		—			50
Acquisition of Granite	4,827			—		—			4,827

Balance, December 31, 2016	$	83,905		$	2,378	$	—		$	86,283

______________________________________


⁽¹⁾	During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See Note 5.


⁽²⁾	During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See Note 5.

Schedule of intangible assets, net

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



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	2016		2015		2016			2015			2016		2015

Definite lived intangible assets:
Trademarks and trade names	13	$	15,354	$	15,244	$	(7,724	)	$	(6,491	)	$	7,630	$	8,753
Customer related intangible assets	10	277,828		274,428		(156,980		)	(113,725		)	120,848		160,703
Operating agreement	20	35,000		35,000		(12,104		)	(10,354		)	22,896		24,646
Non-compete agreements	4	1,560		1,435		(507		)	(115		)	1,053		1,320
Intellectual property	10	300		300		(85		)	(55		)	215		245
Other intangible assets	5	3,745		1,375		(955		)	(39		)	2,790		1,336

Total		$	333,787	$	327,782	$	(178,355	)	$	(130,779	)	$	155,432	$	197,003

OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015

Security deposits	$	5,508	$	5,341
Maintenance agreements, non-current portion	853		1,570
Restricted cash	4,127		4,801
Other	767		1,441

Total	$	11,255	$	13,153

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

12 Months Ended

Dec. 31, 2016

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)	2016		2015

Accounts payable	$	8,787	$	11,644
Accrued expenses - general	26,426		30,347
Accrued salaries and benefits	47,614		46,564
Income taxes payable	308		3,316

Total	$	83,135	$	91,871

Schedule of other current liabilities

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



(in thousands)	2016		2015

Unfunded cash account balances	$	7,137	$	6,395
Other	11,924		9,871

Total	$	19,061	$	16,266

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt

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



(in thousands)	2016			2015

Senior secured term loan	$	479,653		$	536,598
Less: debt issuance costs, net	(4,486		)	(6,184		)
Less: unamortized discount, net	(1,622		)	(2,236		)
Net long-term debt	473,545			528,178
Less: current portion	(5,945		)	(5,945		)

Long-term debt, less current portion	$	467,600		$	522,233

Schedule of maturities of long-term debt

Maturities of our long-term debt are as follows:



(in thousands)

2017	$	5,945
2018	5,945
2019	5,945
2020	461,818

	$	479,653

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 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

+ Details

OTHER NON-CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2016

Other Liabilities Disclosure [Abstract]

Schedule of other non-current liabilities

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



(in thousands)	2016		2015

Acquisition related obligations	$	—	$	8,422
Other non-current liabilities	10,480		9,731

Total	$	10,480	$	18,153

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

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



	December 31, 2016								December 31, 2015
(in thousands)	Carrying Amount		Fair Value						Carrying Amount		Fair Value
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	149,294	$	149,294	$	—	$	—	$	179,327	$	179,327	$	—	$	—
Restricted cash	4,127		4,127		—		—		4,801		4,801		—		—
Available for sale securities	45,754		45,754		—		—		—		—		—		—

Liabilities:
Acquisition contingent consideration	376		—		—		376		3,932		—		—		3,932
Long-term debt	479,653		—		474,856		—		536,598		—		469,523		—

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2016

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

The following assumptions were used to determine the fair values as of the grant date:

2016

2015

2014

Black-Scholes

Binomial

Black-Scholes

Binomial

Black-Scholes

Binomial

Risk-free interest rate (%)

1.25 – 1.89

0.23 – 2.23

1.50 – 1.91

0.02 – 2.34

1.80 – 1.91

0.01 – 2.49

Expected stock price volatility (%)

59.75 – 62.14

59.76 – 62.14

55.06 – 59.73

37.57 – 45.15

38.38 – 45.15

Expected dividend yield

—

Expected option life

(in years)

6.00 – 6.25

4.06 – 4.88

6.00 – 6.25

4.08 – 4.92

6.25

4.36 – 5.83

Fair value

$11.15 – $18.60

$11.06 – $19.27

$10.01 – $17.66

$9.91 – $18.05

$15.54 – $41.79

$12.66 – $33.62

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)	2016		2015		2014

Weighted average grant date fair value of stock options granted per share	$	16.82	$	13.20	$	26.92
Intrinsic value of stock options exercised	18,209		1,998		10,250
Grant date fair value of stock options that vested during the period	2,698		1,616		2,641

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, 2015	3,163,125		$	20.13	4.94	$	35,842
Granted	144,654		29.17
Exercised	(1,173,132	)	9.63
Forfeited	(138,138	)	34.13

Outstanding at December 31, 2016	1,996,509		25.98		5.32	15,942

Exercisable at December 31, 2016	1,225,924		21.00		3.45	10,825

Shares authorized under stock option plans, by exercise price range

The following table summarizes information about stock options outstanding and exercisable at December 31, 2016:



	Options outstanding				Options exercisable
Exercise price range ⁽¹⁾	Number	Weighted average remaining contractual life (in years)	Weighted average exercise price		Number	Weighted average remaining contractual life (in years)	Weighted average exercise price

Up to $10.00	480,003	1.53	$	9.14	480,003	1.53	$	9.14
$10.01 — $20.00	298,137	7.91	18.74		101,438	7.77	18.65
$20.01 — $30.00	916,491	5.93	25.74		520,159	3.88	23.79
$30.01 — $40.00	109,003	7.63	32.46		43,729	4.96	32.83
$40.01 — $50.00	5,000	7.94	49.06		625	7.94	49.06
$60.01 — $70.00	71,000	5.19	60.73		51,375	5.19	60.74
$70.01 — $80.00	25,000	7.86	72.78		3,125	7.86	72.78
$80.01 — $90.00	40,000	7.04	85.63		13,438	6.46	84.52
$90.01 — $100.00	50,000	7.18	95.40		11,094	7.12	94.30
$100.01 — $110.00	1,875	7.37	105.11		938	7.37	105.11

	1,996,509				1,225,924

______________________________________


⁽¹⁾	These options contain market-based components as described above.

Shares authorized under stock option plans by vesting price range

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



	Market-based options
Vesting price	Ordinary performance		Extraordinary performance

$40.01 — $50.00	14,500		—
$50.01 — $60.00	47,129		16,483
$60.01 — $70.00	17,884		6,250
$70.01 — $80.00	—		1,000
$80.01 — $90.00	—		25,467
$90.01 — $100.00	2,500		8,943
$140.01 — $150.00	12,500		1,250
$170.01 — $180.00	12,500		—
$180.01 — $190.00	—		23,375
Over $190.00	22,500		23,750

Total	129,513		106,518

Weighted average share price	$	50.32	$	48.13

Restricted stock and restricted stock units activity

The following table summarizes the activity related to our restricted shares:



	Number of restricted shares

Outstanding at December 31, 2015	272,326
Granted	12,878
Issued	(38,074	)
Forfeited	(15,400	)

Outstanding at December 31, 2016	231,730

REVENUE REVENUE (Tables)

12 Months Ended

Dec. 31, 2016

Revenues [Abstract]

Schedule of revenue

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



(in thousands)	2016		2015		2014

Service revenue	$	942,599	$	940,920	$	938,679
Reimbursable expenses	52,011		107,344		137,634
Non-controlling interests	2,693		3,202		2,603

Total	$	997,303	$	1,051,466	$	1,078,916

COST OF REVENUE (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015		2014

Compensation and benefits	$	264,796	$	261,839	$	255,889
Outside fees and services	302,156		248,278		243,325
Reimbursable expenses	52,011		107,344		137,634
Technology and telecommunications	44,295		43,177		48,834
Depreciation and amortization	26,787		26,689		21,498

Total	$	690,045	$	687,327	$	707,180

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015		2014

Compensation and benefits	$	55,577	$	54,897	$	45,098
Professional services	23,284		23,183		18,598
Occupancy related costs	37,370		39,917		38,262
Amortization of intangible assets	47,576		41,135		37,680
Depreciation and amortization	10,001		9,781		7,548
Marketing costs	27,847		27,499		24,130
Other	12,500		24,456		30,417

Total	$	214,155	$	220,868	$	201,733

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016			2015			2014

Gain on early extinguishment of debt	$	5,464		$	3,836		$	—
Expenses related to the purchase of available for sale securities	(3,356		)	—			—
Loss on HLSS equity securities and dividends received, net	—			(1,854		)	—
Interest income	91			133			103
Other, net	1,431			76			71

Total	$	3,630		$	2,191		$	174

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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 years ended December 31:



(in thousands)	2016		2015		2014

Domestic - Luxembourg	$	8,498	$	27,884	$	124,181
Foreign - U.S.	16,655		5,944		9,575
Foreign - Non-U.S.	19,168		19,232		13,509

Total	$	44,321	$	53,060	$	147,265

Schedule of income tax provision

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



(in thousands)	2016			2015			2014

Current:
Domestic - Luxembourg	$	160		$	1,787		$	4,415
Foreign - U.S. Federal	9,556			539			75
Foreign - U.S. State	258			855			476
Foreign - Non-U.S.	5,558			6,405			4,046

	$	15,532		$	9,586		$	9,012
Deferred:
Domestic - Luxembourg	$	432		$	—		$	—
Foreign - U.S. Federal	(3,065		)	(108		)	1,756
Foreign - U.S. State	(100		)	(526		)	(281		)
Foreign - Non-U.S.	136			(692		)	(309		)

	$	(2,597	)	$	(1,326	)	$	1,166

Total	$	12,935		$	8,260		$	10,178

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)	2016			2015

Non-current deferred tax assets:
Net operating loss carryforwards	$	5,891		$	5,417
U.S. federal and state tax credits	316			2,577
Non-U.S. deferred tax assets	3,674			2,472
Share-based compensation	2,486			1,750
Accrued expenses	11,527			7,730
Non-current deferred tax liabilities:
Intangible assets	(4,203		)	(4,508		)
Depreciation	(6,964		)	(7,446		)
Non-U.S. deferred tax liability	(1,342		)	—
Other	(626		)	(815		)
	10,759			7,177

Valuation allowance	(3,467		)	(3,558		)

Non-current deferred tax assets, net	$	7,292		$	3,619

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

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



	2016		2015		2014

Statutory tax rate	29.22	%	29.22	%	29.22	%
Permanent difference related to Luxembourg intangible assets	—		(13.56	)	(22.60	)
Change in valuation allowance	(0.08	)	0.83		(0.05	)
State tax expense	2.30		0.29		0.03
Tax credits	(1.81	)	(2.34	)	(0.71	)
Uncertain taxes	(3.65	)	1.39		0.88
Other	3.20		(0.26	)	0.14

Effective tax rate	29.18	%	15.57	%	6.91	%

Summary of income tax contingencies

The following table reconciles the amount of unrecognized tax benefits for the years ended December 31:



(in thousands)	2016			2015

Amount of unrecognized tax benefits as of the beginning of the year	$	2,005		$	1,153
Decreases as a result of tax positions taken in a prior period	(1,527		)	—
Increases as a result of tax positions taken in a prior period	60			638
Increases as a result of tax positions taken in the current period	220			214

Amount of unrecognized tax benefits as of the end of the year	$	758		$	2,005

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015		2014

Net income attributable to Altisource	$	28,693	$	41,598	$	134,484

Weighted average common shares outstanding, basic	18,696		19,504		21,625
Dilutive effect of stock options and restricted shares	916		1,115		2,009

Weighted average common shares outstanding, diluted	19,612		20,619		23,634

Earnings per share:
Basic	$	1.53	$	2.13	$	6.22

Diluted	$	1.46	$	2.02	$	5.69

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2016

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

Future minimum lease payments at December 31, 2016 under non-cancelable operating leases with an original term exceeding one year are as follows:



(in thousands)	Operating lease obligations

2017	$	17,857
2018	13,560
2019	10,706
2020	7,406
2021	5,469
Thereafter	1,154

	$	56,152

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of financial information of segments

Financial information for our segments is as follows:



	For the year ended December 31, 2016
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	804,539	$	74,352	$	160,101		$	(41,689	)	$	997,303
Cost of revenue	514,832		53,841		159,869			(38,497		)	690,045
Gross profit (loss)	289,707		20,511		232			(3,192		)	307,258
Selling, general and administrative expenses	108,987		17,768		27,811			59,589			214,155
Litigation settlement loss, net of $4,000 insurance recovery	—		—		—			28,000			28,000
Income (loss) from operations	180,720		2,743		(27,579		)	(90,781		)	65,103
Other income (expense), net	43		92		66			(20,983		)	(20,782		)

Income (loss) before income taxes and non-controlling interests	$	180,763	$	2,835	$	(27,513	)	$	(111,764	)	$	44,321



	For the year ended December 31, 2015
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource

Revenue	$	786,648	$	88,448	$	215,482		$	(39,112	)	$	1,051,466
Cost of revenue	474,169		60,806		187,835			(35,483		)	687,327
Gross profit (loss)	312,479		27,642		27,647			(3,629		)	364,139
Selling, general and administrative expenses	105,153		18,707		29,902			67,106			220,868
Impairment losses	—		—		71,785			—			71,785
Change in the fair value of Equator Earn Out	—		—		(7,591		)	—			(7,591		)
Income (loss) from operations	207,326		8,935		(66,449		)	(70,735		)	79,077
Other income (expense), net	506		58		61			(26,642		)	(26,017		)

Income (loss) before income taxes and non-controlling interests	$	207,832	$	8,993	$	(66,388	)	$	(97,377	)	$	53,060



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

Revenue	$	793,143	$	98,499	$	227,300		$	(40,026	)	$	1,078,916
Cost of revenue	486,387		64,338		192,426			(35,971		)	707,180
Gross profit (loss)	306,756		34,161		34,874			(4,055		)	371,736
Selling, general and administrative expenses	94,686		18,791		32,393			55,863			201,733
Impairment losses	—		—		37,473			—			37,473
Change in the fair value of Equator Earn Out	—		—		(37,924		)	—			(37,924		)
Income (loss) from operations	212,070		15,370		2,932			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)

Income (loss) before income taxes and non-controlling interests	$	212,274	$	15,432	$	2,901		$	(83,342	)	$	147,265



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

Total assets:
December 31, 2016	$	306,207	$	38,746	$	130,032	$	214,227	$	689,212
December 31, 2015	325,461		53,757		165,778		176,802		721,798

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, 2016		December 31, 2015

United States	$	71,418	$	85,021
India	14,006		21,187
Luxembourg	14,791		9,944
Philippines	3,027		2,664
Uruguay	231		305

Total	$	103,473	$	119,121

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of unaudited quarterly results

The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality.



	2016 quarter ended ^(1)(2)(3)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	250,132	$	255,799	$	252,745	$	238,627
Gross profit	81,269		81,428		78,743		65,818
Income (loss) before income taxes and non-controlling interests	21,085		23,977		18,796		(19,537		)
Net income (loss)	18,892		20,686		11,472		(19,664		)
Net income (loss) attributable to Altisource	18,494		19,994		10,589		(20,384		)

Earnings (loss) per share:
Basic	$	0.98	$	1.08	$	0.57	$	(1.08	)
Diluted	$	0.92	$	1.02	$	0.54	$	(1.08	)

Weighted average shares outstanding:
Basic	18,855		18,437		18,715		18,788
Diluted	20,040		19,604		19,568		18,788



	2015 quarter ended ^(1)(4)(5)(6)
(in thousands, except per share data)	March 31,		June 30,		September 30,		December 31,

Revenue	$	240,482	$	268,321	$	272,776	$	269,887
Gross profit	67,656		100,162		98,926		97,395
Income (loss) before income taxes and non-controlling interests	4,808		51,244		41,200		(44,192		)
Net income (loss)	4,408		46,846		37,897		(44,351		)
Net income (loss) attributable to Altisource	3,698		45,950		37,046		(45,096		)

Earnings (loss) per share:
Basic	$	0.18	$	2.35	$	1.94	$	(2.35	)
Diluted	$	0.18	$	2.22	$	1.82	$	(2.35	)

Weighted average shares outstanding:
Basic	20,172		19,571		19,091		19,196
Diluted	20,995		20,669		20,411		19,196

______________________________________


⁽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 Granite on July 29, 2016 (see Note 5).


⁽³⁾	During the fourth quarter of 2016, Altisource recorded a litigation settlement loss of $32.0 million in connection with a litigation matter. Also during the fourth quarter of 2016, Altisource recorded an insurance recovery related to this litigation settlement of $4.0 million. See Note 23.


⁽⁴⁾	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).


⁽⁵⁾	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.


⁽⁶⁾	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).

ORGANIZATION (Details)	12 Months Ended
ORGANIZATION (Details)	Dec. 31, 2016 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reporting segments	3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Premises and Equipment, Net
Impairment of premises and equipment	$ 0	$ 4,122,000	$ 0
Goodwill
Goodwill impairment	0	55,740,000	37,500,000
Intangible Assets, Net
Impairment of intangible assets	0	11,923,000	0
Defined Contribution 401(k) Plan
Expense recorded for discretionary amounts contributed	1,200,000	1,000,000	900,000
Revenue Recognition
Reimbursable expenses	52,011,000	107,344,000	137,634,000
New Accounting Pronouncements
Restricted cash	4,127,000	4,801,000
Mortgage Services
Goodwill
Goodwill impairment		0
Revenue Recognition
Reimbursable expenses	$ 51,900,000	107,200,000	$ 137,400,000
Minimum
Intangible Assets, Net
Estimated useful lives	4 years
Maximum
Intangible Assets, Net
Estimated useful lives	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
Lenders One \| Mortgage Partnership of America LLC
Principles of Consolidation
Total assets	$ 3,800,000	4,900,000
Total liabilities	1,500,000	3,700,000
Wholesale One
Principles of Consolidation
Total assets	100,000	100,000
Total liabilities	$ 100,000	$ 100,000

CUSTOMER CONCENTRATIONS (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
CUSTOMER CONCENTRATIONS (Details) - USD ($) $ in Thousands	Jan. 16, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Revenue from related party				$ 666,800
Other portfolio servicing revenue		$ 188,000	$ 216,900	$ 256,000
Ocwen
Concentration Risk [Line Items]
Accounts receivable from largest customer		26,200
Ocwen \| Billed
Concentration Risk [Line Items]
Accounts receivable from largest customer		15,800
Ocwen \| Unbilled
Concentration Risk [Line Items]
Accounts receivable from largest customer		$ 10,400
Revenue from Rights Concentration Risk \| Sales Revenue, Segment \| Ocwen
Concentration Risk [Line Items]
Percentage of revenue from largest customer		56.00%	60.00%	60.00%
Revenue from largest customer		$ 561,900	$ 631,600	$ 650,700
Revenue from Rights Concentration Risk \| Sales Revenue, Segment \| Mortgage Services \| Ocwen
Concentration Risk [Line Items]
Percentage of revenue from largest customer		60.00%	63.00%	67.00%
Revenue from Rights Concentration Risk \| Sales Revenue, Segment \| Financial Services \| Ocwen
Concentration Risk [Line Items]
Percentage of revenue from largest customer		17.00%	21.00%	27.00%
Revenue from Rights Concentration Risk \| Sales Revenue, Segment \| Technology Services \| Ocwen
Concentration Risk [Line Items]
Percentage of revenue from largest customer		42.00%	54.00%	42.00%
Ocwen
Concentration Risk [Line Items]
Revenue from related party	$ 22,900			$ 650,700

TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 16, 2015	Dec. 31, 2015	Dec. 31, 2014
TRANSACTIONS WITH RELATED PARTIES
Revenue from related party			$ 666,800
Cost of revenue			38,610
Ocwen
TRANSACTIONS WITH RELATED PARTIES
Revenue from related party	$ 22,900		650,700
Ocwen \| Data Access and Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Cost of revenue	1,900		38,600
Ocwen \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party	(100)		(4,500)
Selling, general and administrative expenses billed by related party	300		6,100
HLSS \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party		$ (900)
Residential \| Management, Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Revenue from related party	$ 1,000		16,000
AAMC \| Support Services Agreement
TRANSACTIONS WITH RELATED PARTIES
Selling, general and administrative expenses billed to related party			(900)
Related party transaction provided to related party amounts billed - total			1,000
AAMC \| Support and Other Services Agreements
TRANSACTIONS WITH RELATED PARTIES
Revenue from related party			$ 100

ACQUISITIONS - Granite (Details) - USD ($) $ in Thousands	Jul. 29, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Acquisitions
Goodwill		$ 86,283	$ 82,801	$ 90,851
Granite
Acquisitions
Cash paid at closing	$ 9,600
Granite \| Initial purchase price allocation
Acquisitions
Accounts receivable, net		1,024
Prepaid expenses		22
Other assets		25
Premises and equipment, net		299
Non-compete agreements		100
Trademarks and trade names		100
Customer relationships		3,400
Goodwill		4,827
Assets acquired		9,797
Accounts payable and accrued expenses		(57)
Deferred revenue		(192)
Purchase price		9,548
Granite \| Adjustments
Acquisitions
Purchase price		$ (100)

ACQUISITIONS - RentRange, Investability and Onit Solutions (Details) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
	Oct. 09, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2016
Acquisitions
Value of common stock paid at acquisition		$ 0	$ 21,733	$ 0
Goodwill		$ 86,283	$ 82,801	$ 90,851
RentRange, Investability and Onit Solutions
Acquisitions
Business combination, consideration transferred	$ 24,800
Cash paid at closing	17,500
Value of common stock paid at acquisition	$ 7,300
Contingent consideration arrangements, payment period	4 years
Number of shares exchanged for acquisition, no longer restricted		55
Cash					$ 3
Accounts receivable, net					169
Premises and equipment, net					1,404
Other assets					3
Trademarks and trade names					1,205
Databases/other					1,945
Non-compete agreements					330
Customer relationships					255
Goodwill					19,615
Assets acquired					24,929
Accounts payable and accrued expenses					(345)
Purchase price					24,584
RentRange, Investability and Onit Solutions \| Initial purchase price allocation
Acquisitions
Cash	$ 3
Accounts receivable, net	245
Premises and equipment, net	2,471
Other assets	199
Trademarks and trade names	1,205
Databases/other	910
Non-compete agreements	330
Customer relationships	255
Goodwill	19,565
Assets acquired	25,183
Accounts payable and accrued expenses	(391)
Purchase price	$ 24,792
RentRange, Investability and Onit Solutions \| Adjustments
Acquisitions
Cash					0
Accounts receivable, net					(76)
Premises and equipment, net					(1,067)
Other assets					(196)
Trademarks and trade names					0
Databases/other					1,035
Non-compete agreements					0
Customer relationships					0
Goodwill					50
Assets acquired					(254)
Accounts payable and accrued expenses					46
Purchase price					$ (208)
Restricted Stock Units (RSUs) \| RentRange, Investability and Onit Solutions
Acquisitions
Number of shares exchanged for acquisition	247
Value of common stock paid at acquisition	$ 7,300

ACQUISITIONS - CastleLine (Details) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
	Jul. 17, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2016
Acquisitions
Value of common stock paid at acquisition		$ 0	$ 21,733	$ 0
Goodwill		$ 86,283	$ 82,801	$ 90,851
CastleLine
Acquisitions
Cash paid at acquisition	$ 12,300
Accounts payable	$ 10,500
Contingent consideration arrangements, payment period	4 years
Number of shares exchanged for acquisition	495
Value of common stock paid at acquisition	$ 14,400
Additional consideration	3,800
Cash					$ 1,088
Accounts receivable, net					100
Prepaid expenses					20
Restricted cash					2,501
Non-compete agreements					1,130
Databases/other					1,800
Customer relationships					395
Trademarks and trade names					160
Deferred taxes					356
Goodwill					26,730
Assets acquired					34,280
Accounts payable and accrued expenses					(837)
Deferred revenue					0
Purchase price					33,443
CastleLine \| Initial purchase price allocation
Acquisitions
Business combination, consideration transferred	33,400
Cash	1,088
Accounts receivable, net	510
Prepaid expenses	66
Restricted cash	2,501
Non-compete agreements	1,105
Databases/other	465
Customer relationships	395
Trademarks and trade names	150
Deferred taxes	0
Goodwill	28,125
Assets acquired	34,405
Accounts payable and accrued expenses	(875)
Deferred revenue	(87)
Purchase price	$ 33,443
CastleLine \| Adjustments
Acquisitions
Cash					0
Accounts receivable, net					(410)
Prepaid expenses					(46)
Restricted cash					0
Non-compete agreements					25
Databases/other					1,335
Customer relationships					0
Trademarks and trade names					10
Deferred taxes					356
Goodwill					(1,395)
Assets acquired					(125)
Accounts payable and accrued expenses					38
Deferred revenue					87
Purchase price					$ 0

ACQUISITIONS - Owners (Details) - USD ($) $ in Thousands		12 Months Ended
ACQUISITIONS - Owners (Details) - USD ($) $ in Thousands	Nov. 21, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill		$ 86,283	$ 82,801	$ 90,851
Owners
Acquisitions
Cash paid at closing	$ 19,800
Additional consideration	7,000
Present value of future earn outs payments	1,900
Payment made to the seller - adjustment		$ 100
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Accounts receivable, net	32
Prepaid expenses	28
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
Assets acquired	21,767
Accounts payable and accrued expenses	(22)
Purchase price	$ 21,745

ACQUISITIONS - Mortgage Builder (Details) - USD ($) $ in Thousands			12 Months Ended
	Jul. 17, 2015	Sep. 12, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill			$ 86,283	$ 82,801	$ 90,851
Mortgage Builder
Acquisitions
Cash paid at closing		$ 15,700
Additional consideration		7,000
Contingent consideration arrangements, payment period	3 years
Present value of future earn outs payments			1,600
Payment received from the seller - Adjustment			$ 200
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash		668
Accounts receivable, net		1,102
Prepaid expenses		38
Premises and equipment, net		553
Software		1,509
Trademarks and trade names		209
Customer relationships		4,824
Goodwill		9,135
Assets acquired		18,038
Accounts payable and accrued expenses		(950)
Purchase price		$ 17,088

AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale Securities [Abstract]
Number of available for sale shares acquired (in shares)		4.1
Purchase of available for sale securities	$ 30,000	$ 48,219	$ 29,966	$ 0
Available for sale securities		45,754	0
Available for sale securities, investment related expenses		3,400	0
Investment income, dividend		$ 2,300	$ 0

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	12 Months Ended
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts receivable, net
Accounts receivable, gross	$ 98,245	$ 123,479
Less: allowance for doubtful accounts	(10,424)	(18,456)
Total	87,821	105,023
Bad debt expense	1,829	5,514	$ 16,257
Billed
Accounts receivable, net
Accounts receivable, gross	58,392	67,021
Unbilled
Accounts receivable, net
Accounts receivable, gross	$ 39,853	$ 56,458

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Maintenance agreements, current portion	$ 6,590	$ 7,000
Short-term investments in real estate	13,025	0
Income taxes receivable	5,186	633
Prepaid expenses	6,919	7,873
Litigation settlement insurance recovery	4,000	0
Other current assets	6,888	6,245
Total	$ 42,608	$ 21,751

PREMISES AND EQUIPMENT, NET (Details) - USD ($)	12 Months Ended
PREMISES AND EQUIPMENT, NET (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 232,870,000	$ 248,676,000
Less: accumulated depreciation and amortization	(129,397,000)	(129,555,000)
Total	103,473,000	119,121,000
Depreciation and amortization expense	36,788,000	36,470,000	$ 29,046,000
Impairment of premises and equipment	0	4,122,000	$ 0
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	164,877,000	177,010,000
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	20,188,000	21,720,000
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	13,997,000	14,443,000
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 33,808,000	$ 35,503,000

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

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Changes in goodwill

Balance at the beginning of the period

$ 82,801,000

$ 90,851,000

Goodwill impairment

(55,740,000)

$ (37,500,000)

Balance at the end of the period

86,283,000

82,801,000

90,851,000

Change in the fair value of Equator Earn Out

(7,591,000)

(37,924,000)

Mortgage Services

Changes in goodwill

Balance at the beginning of the period

80,423,000

32,733,000

Goodwill impairment

Balance at the end of the period

83,905,000

80,423,000

32,733,000

Financial Services

Changes in goodwill

Balance at the beginning of the period

2,378,000

Goodwill impairment

Balance at the end of the period

2,378,000

Technology Services

Changes in goodwill

Balance at the beginning of the period

55,740,000

Goodwill impairment

(55,740,000)

(37,500,000)

Balance at the end of the period

$ 55,740,000

CastleLine

Changes in goodwill

Goodwill, acquired during the period

28,125,000

Goodwill, purchase price allocation adjustment

^[1]

(1,395,000)

CastleLine | Mortgage Services

Changes in goodwill

Goodwill, acquired during the period

28,125,000

Goodwill, purchase price allocation adjustment

^[1]

(1,395,000)

CastleLine | Financial Services

Changes in goodwill

Goodwill, acquired during the period

Goodwill, purchase price allocation adjustment

^[1]

CastleLine | Technology Services

Changes in goodwill

Goodwill, acquired during the period

Goodwill, purchase price allocation adjustment

^[1]

RentRange, Investability and Onit Solutions

Changes in goodwill

Goodwill, acquired during the period

19,565,000

Goodwill, purchase price allocation adjustment

^[2]

50,000

RentRange, Investability and Onit Solutions | Mortgage Services

Changes in goodwill

Goodwill, acquired during the period

19,565,000

Goodwill, purchase price allocation adjustment

^[2]

50,000

RentRange, Investability and Onit Solutions | Financial Services

Changes in goodwill

Goodwill, acquired during the period

Goodwill, purchase price allocation adjustment

^[2]

RentRange, Investability and Onit Solutions | Technology Services

Changes in goodwill

Goodwill, acquired during the period

$ 0

Goodwill, purchase price allocation adjustment

^[2]

Granite

Changes in goodwill

Goodwill, acquired during the period

4,827,000

Granite | Mortgage Services

Changes in goodwill

Goodwill, acquired during the period

4,827,000

Granite | Financial Services

Changes in goodwill

Goodwill, acquired during the period

Granite | Technology Services

Changes in goodwill

Goodwill, acquired during the period

$ 0

[1]	During the second quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the CastleLine acquisition. See Note 5.
[2]	During the third quarter of 2016, goodwill was revised to reflect a purchase accounting measurement period adjustment related to the RentRange and Investability acquisition. See Note 5.

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets, Net (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets, Net
Impairment of intangible assets	$ 0	$ 11,923,000	$ 0
Gross carrying amount	333,787,000	327,782,000
Accumulated amortization	(178,355,000)	(130,779,000)
Net book value	155,432,000	197,003,000
Amortization expense for definite lived intangible assets	47,576,000	41,135,000	$ 37,680,000
2017	35,000,000
2018	26,500,000
2019	21,100,000
2020	17,200,000
2021	12,700,000
Trademarks and trade names
Intangible Assets, Net
Gross carrying amount	15,354,000	15,244,000
Accumulated amortization	(7,724,000)	(6,491,000)
Net book value	$ 7,630,000	8,753,000
Trademarks and trade names \| Weighted average
Intangible Assets, Net
Estimated useful lives	13 years
Customer related intangible assets
Intangible Assets, Net
Gross carrying amount	$ 277,828,000	274,428,000
Accumulated amortization	(156,980,000)	(113,725,000)
Net book value	$ 120,848,000	160,703,000
Customer related intangible assets \| Weighted average
Intangible Assets, Net
Estimated useful lives	10 years
Operating agreement
Intangible Assets, Net
Gross carrying amount	$ 35,000,000	35,000,000
Accumulated amortization	(12,104,000)	(10,354,000)
Net book value	$ 22,896,000	24,646,000
Operating agreement \| Weighted average
Intangible Assets, Net
Estimated useful lives	20 years
Non-compete agreements
Intangible Assets, Net
Gross carrying amount	$ 1,560,000	1,435,000
Accumulated amortization	(507,000)	(115,000)
Net book value	$ 1,053,000	1,320,000
Non-compete agreements \| Weighted average
Intangible Assets, Net
Estimated useful lives	4 years
Intellectual property
Intangible Assets, Net
Gross carrying amount	$ 300,000	300,000
Accumulated amortization	(85,000)	(55,000)
Net book value	$ 215,000	245,000
Intellectual property \| Weighted average
Intangible Assets, Net
Estimated useful lives	10 years
Other intangible assets
Intangible Assets, Net
Gross carrying amount	$ 3,745,000	1,375,000
Accumulated amortization	(955,000)	(39,000)
Net book value	$ 2,790,000	$ 1,336,000
Other intangible assets \| Weighted average
Intangible Assets, Net
Estimated useful lives	5 years

OTHER ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits	$ 5,508	$ 5,341
Maintenance agreements, non-current portion	853	1,570
Restricted cash	4,127	4,801
Other	767	1,441
Total	$ 11,255	$ 13,153

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable	$ 8,787	$ 11,644
Accrued expenses - general	26,426	30,347
Accrued salaries and benefits	47,614	46,564
Income taxes payable	308	3,316
Total	$ 83,135	$ 91,871

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other current liabilities
Unfunded cash account balances	$ 7,137	$ 6,395
Other	11,924	9,871
Total	$ 19,061	$ 16,266

LONG-TERM DEBT (Details)			12 Months Ended
LONG-TERM DEBT (Details)	Aug. 01, 2014 USD ($)	Nov. 27, 2012 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt
Senior secured term loan			$ 479,653,000	$ 536,598,000
Less: debt issuance costs, net			(4,486,000)	(6,184,000)
Less: unamortized discount, net			(1,622,000)	(2,236,000)
Net long-term debt			473,545,000	528,178,000
Less: current portion			(5,945,000)	(5,945,000)
Long-term debt, less current portion			467,600,000	522,233,000
Extinguishment of debt, amount			$ 51,000,000	$ 49,000,000
Weighted average discount of par received on early extinguishment of debt			13.20%	10.30%
Gain on early extinguishment of debt			$ 5,464,000	$ 3,836,000	$ 0
Interest on long-term debt			24,412,000	28,208,000	23,363,000
Senior secured term loan
Debt
Less: debt issuance costs, net			(4,500,000)	(6,200,000)
Amount borrowed		$ 200,000,000
Debt instrument, maturity period from prior term loans maturity date		1 year
Aggregate amount of each consecutive quarterly scheduled principal installment	$ 1,500,000
Mandatory prepayments owed			$ 0
Interest rate at the end of the period (as a percent)			4.50%
Accumulated amortization			$ 5,800,000	4,100,000
Interest on long-term debt			$ 24,400,000	$ 28,200,000	$ 23,400,000
Senior secured term loan \| Maximum
Debt
Leverage ratio to be maintained under the credit facility covenants			3.0
Covenant threshold, leverage ratio			3.50
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 \| Minimum
Debt
Leverage ratio to be maintained under the credit facility covenants			1.00
Covenant threshold, leverage ratio			1.00
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%

LONG-TERM DEBT (Details 2) $ in Thousands	Dec. 31, 2016 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
Long-term debt, maturities, 2017	$ 5,945
Long-term debt, maturities, 2018	5,945
Long-term debt, maturities, 2019	5,945
Long-term debt, maturities, 2020	461,818
Long-term debt, maturities, total	$ 479,653

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities, Noncurrent [Abstract]
Acquisition related obligations	$ 0	$ 8,422
Other non-current liabilities	10,480	9,731
Total	10,480	18,153
Gain Contingencies [Line Items]
Change in the fair value of Equator Earn Out	0	(7,591)	$ (37,924)
Change in the fair value of acquisition related contingent consideration	$ (3,555)	(7,184)	$ (37,924)
Equator LLC
Gain Contingencies [Line Items]
Value of Equator contingent consideration after payment to sellers		$ 0

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	$ 149,294	$ 179,327	$ 161,361	$ 130,324
Restricted cash	4,127	4,801
Available for sale securities	45,754	0
Liabilities, Fair Value Disclosure [Abstract]
Acquisition contingent consideration	376	3,932
Long-term debt	479,653	536,598
Fair Value, Level 1 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	149,294	179,327
Restricted cash, fair value	4,127	4,801
Available for sale securities	45,754	0
Liabilities, Fair Value Disclosure [Abstract]
Acquisition contingent consideration	0	0
Long-term debt, fair value	0	0
Fair Value, Level 2 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	0	0
Restricted cash, fair value	0	0
Available for sale securities	0	0
Liabilities, Fair Value Disclosure [Abstract]
Acquisition contingent consideration	0	0
Long-term debt, fair value	474,856	469,523
Fair Value, Level 3 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	0	0
Restricted cash, fair value	0	0
Available for sale securities	0	0
Liabilities, Fair Value Disclosure [Abstract]
Acquisition contingent consideration	376	3,932
Long-term debt, fair value	$ 0	$ 0

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in the fair value of Equator Earn Out	$ (3,555,000)	$ (7,184,000)	$ (37,924,000)
Goodwill impairment	0	55,740,000	37,500,000
Impairment of intangible assets	0	11,923,000	0
Impairment of premises and equipment	0	$ 4,122,000	$ 0
Mortgage Builder
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in the fair value of Equator Earn Out	1,400,000
Owners
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in the fair value of Equator Earn Out	$ 2,200,000
Altisource Residential Corporation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, number of shares	4.1

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	May 18, 2016 $ / shares shares	Oct. 09, 2015 USD ($) shares	Jul. 17, 2015 USD ($) shares	Dec. 31, 2016 USD ($) multiplier component $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)
Common Stock [Abstract]
Common stock, shares authorized				25,413,000	25,413,000
Common stock, shares issued				25,413,000	25,413,000
Common stock, shares outstanding				18,774,000	19,021,000
Common stock voting rights per share \| $ / shares				$ 1
Value of common stock paid at acquisition \| $				$ 0	$ 21,733	$ 0
Equity Incentive Plan [Abstract]
Maximum number of Altisource share-based awards that can be granted under the Plan (in shares)				6,700,000
Share-based awards available for future grants under the Plan (in shares)				1,500,000
Share-Based Compensation [Abstract]
Share-based compensation expense (in dollars) \| $				$ 6,200	$ 4,800	$ 2,200
Estimated unrecognized compensation costs (in dollars) \| $				$ 6,200
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized				2 years 1 month 17 days
Outstanding (in shares)				1,996,509	3,163,125
Stock options granted, approximate (in shares)				144,654	900,000	100,000
Weighted average exercise price of stock options granted (in dollars per share) \| $ / shares				$ 29.17	$ 24.21	$ 84.61
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares				16.82	13.20	26.92
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) \| $ / shares				$ 16.82	$ 13.20	$ 26.92
Intrinsic value of options exercised (in dollars) \| $				$ 18,209	$ 1,998	$ 10,250
Grant date fair value of options vested during the period (in dollars) \| $				$ 2,698	$ 1,616	$ 2,641
Black-Scholes
Assumptions used to determine the fair value of options as of the grant date
Risk-free interest rate, minimum (as a percent)				1.25%	1.50%	1.80%
Risk-free interest rate, maximum (as a percent)				1.89%	1.91%	1.91%
Expected stock price volatility, minimum (as a percent)				59.75%	55.06%	37.57%
Expected stock price volatility, maximum (as a percent)				62.14%	59.73%	45.15%
Expected option life						6 years 3 months
Binomial Lattice Model [Member]
Assumptions used to determine the fair value of options as of the grant date
Risk-free interest rate, minimum (as a percent)				0.23%	0.02%	0.01%
Risk-free interest rate, maximum (as a percent)				2.23%	2.34%	2.49%
Expected stock price volatility, minimum (as a percent)				59.76%	55.06%	38.38%
Expected stock price volatility, maximum (as a percent)				62.14%	59.73%	45.15%
Minimum
Share-Based Compensation [Abstract]
Vesting period				1 year
Share based compensation arrangement by share based payment award estimated forfeiture rate				0.00%
Minimum \| Black-Scholes
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares				$ 11.15	$ 10.01	$ 15.54
Expected option life				6 years	6 years
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) \| $ / shares				$ 11.15	$ 10.01	15.54
Minimum \| Binomial Lattice Model [Member]
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares				$ 11.06	$ 9.91	$ 12.66
Expected option life				4 years 22 days	4 years 29 days	4 years 4 months 10 days
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) \| $ / shares				$ 11.06	$ 9.91	$ 12.66
Maximum
Share-Based Compensation [Abstract]
Vesting period				4 years
Share based compensation arrangement by share based payment award estimated forfeiture rate				40.00%
Maximum \| Black-Scholes
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares				$ 18.60	$ 17.66	41.79
Expected option life				6 years 3 months	6 years 3 months
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) \| $ / shares				$ 18.60	$ 17.66	41.79
Maximum \| Binomial Lattice Model [Member]
Assumptions used to determine the fair value of options as of the grant date
Fair value (in dollars per share) \| $ / shares				$ 19.27	$ 18.05	$ 33.62
Expected option life				4 years 10 months 17 days	4 years 11 months 1 day	5 years 9 months 29 days
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) \| $ / shares				$ 19.27	$ 18.05	$ 33.62
Employee and non employee stock option \| Vesting Based on Service
Share-Based Compensation [Abstract]
Vesting period				4 years
Outstanding (in shares)				900,000
Employee and non employee stock option \| Vesting Based on Service \| Minimum
Share-Based Compensation [Abstract]
Vesting period				3 years
Employee and non employee stock option \| Vesting Based on Service \| Maximum
Share-Based Compensation [Abstract]
Expiration term				10 years
Employee and non employee stock option \| Market-Based
Share-Based Compensation [Abstract]
Outstanding (in shares)				1,000,000
Number of components of an award \| component				2
Employee and non employee stock option \| Market-Based, ordinary performance
Share-Based Compensation [Abstract]
Market-based options subject to specified performance achievement (as a percent)				0.67
Multiplier of stock price over exercise price as a condition for the award to vest \| multiplier				2
Employee and non employee stock option \| Market-Based, ordinary performance \| Minimum
Share-Based Compensation [Abstract]
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				20.00%
Employee and non employee stock option \| Market-Based, extraordinary performance
Share-Based Compensation [Abstract]
Market-based options subject to specified performance achievement (as a percent)				0.33
Multiplier of stock price over exercise price as a condition for the award to vest \| multiplier				3
Employee and non employee stock option \| Market-Based, extraordinary performance \| Minimum
Share-Based Compensation [Abstract]
Percentage of compounded annual gain of stock price over exercise price required for the award to vest				25.00%
Employee and non employee stock option \| Performance-Based
Share-Based Compensation [Abstract]
Outstanding (in shares)				100,000
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%
Employee and non employee stock option \| Performance-Based \| Minimum
Share-Based Compensation [Abstract]
Vesting period				10 years
Stock Repurchase Program, Current
Stock Repurchase Plan [Abstract]
Number of shares of common stock authorized to be purchased	4,600,000
Percentage of outstanding shares authorized to be repurchased	25.00%
Minimum purchase price authorized (in dollars per share) \| $ / shares	$ 1.00
Maximum purchase price authorized (in dollars per share) \| $ / shares	$ 500.00
Stock Repurchase Programs
Stock Repurchase Plan [Abstract]
Number of shares of common stock purchased				1,400,000	2,100,000	2,500,000
Average purchase price per share (in dollars per share) \| $ / shares				$ 26.81	$ 27.60	$ 103.67
Remaining number of shares available for repurchase under the plan				3,900,000
Capacity available to repurchase common stock under senior secured term loan (in dollars) \| $				$ 395,000
RentRange, Investability and Onit Solutions
Common Stock [Abstract]
Purchase price \| $							$ 24,584
Value of common stock paid at acquisition \| $		$ 7,300
Contingent consideration arrangements, payment period		4 years
Number of shares exchanged for acquisition, no longer restricted				55,000
RentRange, Investability and Onit Solutions \| Restricted Stock Units (RSUs)
Common Stock [Abstract]
Number of shares exchanged for acquisition		247,000
Value of common stock paid at acquisition \| $		$ 7,300
CastleLine
Common Stock [Abstract]
Purchase price \| $								$ 33,443
Number of shares exchanged for acquisition			495,000
Value of common stock paid at acquisition \| $			$ 14,400
Contingent consideration arrangements, payment period			4 years
Initial purchase price allocation \| RentRange, Investability and Onit Solutions
Common Stock [Abstract]
Purchase price \| $		$ 24,792
Initial purchase price allocation \| CastleLine
Common Stock [Abstract]
Purchase price \| $			$ 33,443

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Outstanding at the beginning of the period (in shares)	3,163,125
Granted (in shares)	144,654	900,000	100,000
Exercised (in shares)	(1,173,132)
Forfeited (in shares)	(138,138)
Outstanding at the end of the period (in shares)	1,996,509	3,163,125
Exercisable at the end of the period (in shares)	1,225,924
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 20.13
Granted (in dollars per share)	29.17	$ 24.21	$ 84.61
Exercised (in dollars per share)	9.63
Forfeited (in dollars per share)	34.13
Outstanding at the end of the period (in dollars per share)	25.98	$ 20.13
Exercisable at the end of the period (in dollars per share)	$ 21.00
Weighted average contractual term
Weighted average contractual term	5 years 3 months 26 days	4 years 11 months 9 days
Exercisable at the end of the period	3 years 5 months 12 days
Aggregate intrinsic value
Aggregate intrinsic value (in dollars)	$ 15,942	$ 35,842
Exercisable at the end of the period (in dollars)	$ 10,825

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock option information (Details)

12 Months Ended

Dec. 31, 2016

$ / shares

Options outstanding

Number (in shares) | shares

1,996,509

Options exercisable

Number (in shares) | shares

1,225,924

Up to $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

480,003

^[1]

Weighted average remaining contractual life

1 year 6 months 11 days

^[1]

Weighted average exercise price (in dollars per share)

$ 9.14

^[1]

Options exercisable

Number (in shares) | shares

480,003

^[1]

Weighted average remaining contractual life

1 year 6 months 11 days

^[1]

Weighted average exercise price (in dollars per share)

$ 9.14

^[1]

$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

298,137

^[1]

Weighted average remaining contractual life

7 years 10 months 28 days

^[1]

Weighted average exercise price (in dollars per share)

$ 18.74

^[1]

Options exercisable

Number (in shares) | shares

101,438

^[1]

Weighted average remaining contractual life

7 years 9 months 7 days

^[1]

Weighted average exercise price (in dollars per share)

$ 18.65

^[1]

$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

916,491

^[1]

Weighted average remaining contractual life

5 years 11 months 5 days

^[1]

Weighted average exercise price (in dollars per share)

$ 25.74

^[1]

Options exercisable

Number (in shares) | shares

520,159

^[1]

Weighted average remaining contractual life

3 years 10 months 17 days

^[1]

Weighted average exercise price (in dollars per share)

$ 23.79

^[1]

$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

109,003

^[1]

Weighted average remaining contractual life

7 years 7 months 17 days

^[1]

Weighted average exercise price (in dollars per share)

$ 32.46

^[1]

Options exercisable

Number (in shares) | shares

43,729

^[1]

Weighted average remaining contractual life

4 years 11 months 16 days

^[1]

Weighted average exercise price (in dollars per share)

$ 32.83

^[1]

$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

5,000

^[1]

Weighted average remaining contractual life

7 years 11 months 9 days

^[1]

Weighted average exercise price (in dollars per share)

$ 49.06

^[1]

Options exercisable

Number (in shares) | shares

625

^[1]

Weighted average remaining contractual life

7 years 11 months 9 days

^[1]

Weighted average exercise price (in dollars per share)

$ 49.06

^[1]

$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

71,000

^[1]

Weighted average remaining contractual life

5 years 2 months 9 days

^[1]

Weighted average exercise price (in dollars per share)

$ 60.73

^[1]

Options exercisable

Number (in shares) | shares

51,375

^[1]

Weighted average remaining contractual life

5 years 2 months 9 days

^[1]

Weighted average exercise price (in dollars per share)

$ 60.74

^[1]

$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

25,000

^[1]

Weighted average remaining contractual life

7 years 10 months 10 days

^[1]

Weighted average exercise price (in dollars per share)

$ 72.78

^[1]

Options exercisable

Number (in shares) | shares

3,125

^[1]

Weighted average remaining contractual life

7 years 10 months 10 days

^[1]

Weighted average exercise price (in dollars per share)

$ 72.78

^[1]

$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

^[1]

Weighted average remaining contractual life

7 years 15 days

^[1]

Weighted average exercise price (in dollars per share)

$ 85.63

^[1]

Options exercisable

Number (in shares) | shares

13,438

^[1]

Weighted average remaining contractual life

6 years 5 months 16 days

^[1]

Weighted average exercise price (in dollars per share)

$ 84.52

^[1]

$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

50,000

^[1]

Weighted average remaining contractual life

7 years 2 months 5 days

^[1]

Weighted average exercise price (in dollars per share)

$ 95.40

^[1]

Options exercisable

Number (in shares) | shares

11,094

^[1]

Weighted average remaining contractual life

7 years 1 month 13 days

^[1]

Weighted average exercise price (in dollars per share)

$ 94.30

^[1]

$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

1,875

^[1]

Weighted average remaining contractual life

7 years 4 months 13 days

^[1]

Weighted average exercise price (in dollars per share)

$ 105.11

^[1]

Options exercisable

Number (in shares) | shares

938

^[1]

Weighted average remaining contractual life

7 years 4 months 13 days

^[1]

Weighted average exercise price (in dollars per share)

$ 105.11

^[1]

[1]	These options contain market-based components as described above.

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Restricted stock awards (Details)	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Weighted average price per share of restricted shares granted \| $ / shares	$ 26.66
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of restricted shares outstanding, beginning of period	272,326
Number of restricted shares granted	12,878
Number of restricted shares issued	(38,074)
Number of restricted shares forfeited	(15,400)
Number of restricted shares outstanding, end of period	231,730
Minimum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Vesting period	1 year
Maximum
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Vesting period	4 years

REVENUE REVENUE (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[1],[2]

Mar. 31, 2016

^[1],[2]

Dec. 31, 2015

^{[1],[3],[4],[5]}

Sep. 30, 2015

^{[1],[3],[4],[5]}

Jun. 30, 2015

^{[1],[3],[4],[5]}

Mar. 31, 2015

^{[1],[3],[4],[5]}

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Schedule of revenue [Line Items]

Revenue

$ 238,627

$ 252,745

$ 255,799

$ 250,132

$ 269,887

$ 272,776

$ 268,321

$ 240,482

$ 997,303

$ 1,051,466

$ 1,078,916

Service revenue

Schedule of revenue [Line Items]

Revenue

942,599

940,920

938,679

Reimbursable expenses

Schedule of revenue [Line Items]

Revenue

52,011

107,344

137,634

Non-controlling interests

Schedule of revenue [Line Items]

Revenue

$ 2,693

$ 3,202

$ 2,603

[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 Granite on July 29, 2016 (see Note 5).
[3]	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.
[4]	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).
[5]	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).

COST OF REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cost of Revenue [Abstract]
Compensation and benefits	$ 264,796	$ 261,839	$ 255,889
Outside fees and services	302,156	248,278	243,325
Reimbursable expenses	52,011	107,344	137,634
Technology and telecommunications	44,295	43,177	48,834
Depreciation and amortization	26,787	26,689	21,498
Total	$ 690,045	$ 687,327	$ 707,180

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Selling, General and Administrative Expense [Abstract]
Compensation and benefits	$ 55,577	$ 54,897	$ 45,098
Professional services	23,284	23,183	18,598
Occupancy related costs	37,370	39,917	38,262
Amortization of intangible assets	47,576	41,135	37,680
Depreciation and amortization	10,001	9,781	7,548
Marketing costs	27,847	27,499	24,130
Other	12,500	24,456	30,417
Total	$ 214,155	$ 220,868	$ 201,733

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Income and Expenses [Abstract]
Gain on early extinguishment of debt	$ 5,464	$ 3,836	$ 0
Expenses related to the purchase of available for sale securities	(3,356)	0	0
Loss on HLSS equity securities and dividends received, net	0	(1,854)	0
Interest income	91	133	103
Other, net	1,431	76	71
Total	$ 3,630	$ 2,191	$ 174

OTHER INCOME (EXPENSE), NET (Details 2) - USD ($) $ in Thousands, shares in Millions	1 Months Ended		12 Months Ended
	Apr. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale shares acquired (in shares)			4.1
Purchase of available for sale securities		$ 30,000	$ 48,219	$ 29,966	$ 0
Loss on HLSS equity securities and dividends received, net			0	1,854	0
HLSS
Schedule of Available-for-sale Securities [Line Items]
Liquidating dividend	$ 20,400
Sale proceeds from HLSS common stock	$ 7,700
Loss on HLSS equity securities and dividends received, net			$ 0	$ 1,900	$ 0
Common stock \| HLSS \| Fair value measurements \| Fair Value, Level 1
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale shares acquired (in shares)		1.6
Available-for-sale securities, shares sold	1.6

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income before income taxes and non-controlling interests [Line Items]
Domestic - Luxembourg	$ 8,498	$ 27,884	$ 124,181
Total	44,321	53,060	147,265
U.S.
Income before income taxes and non-controlling interests [Line Items]
Foreign - U.S. and Non-U.S.	16,655	5,944	9,575
Non-U.S.
Income before income taxes and non-controlling interests [Line Items]
Foreign - U.S. and Non-U.S.	$ 19,168	$ 19,232	$ 13,509

INCOME TAXES (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Current income tax provision	$ 15,532	$ 9,586	$ 9,012
Deferred:
Deferred income tax provision	(2,597)	(1,326)	1,166
Total	$ 12,935	$ 8,260	$ 10,178
Statutory tax rate	29.22%	29.22%	29.22%
Decrease in foreign taxes due to tax holidays	$ 900	$ 800	$ 900
Effect on diluted per share due to decrease in foreign tax holiday (in dollars per share)	$ 0.04	$ 0.04	$ 0.04
Luxembourg
Current:
Current income tax provision	$ 160	$ 1,787	$ 4,415
Deferred:
Foreign	432	0	0
U.S. Federal
Current:
Foreign	9,556	539	75
Deferred:
Foreign	(3,065)	(108)	1,756
U.S. State
Current:
Foreign	258	855	476
Deferred:
Foreign	(100)	(526)	(281)
Non-U.S.
Current:
Foreign	5,558	6,405	4,046
Deferred:
Foreign	$ 136	$ (692)	$ (309)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 3) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Non-current deferred tax assets:
Net operating loss carryforwards	$ 5,891	$ 5,417
U.S. federal and state tax credits	316	2,577
Non-U.S. deferred tax assets	3,674	2,472
Share-based compensation	2,486	1,750
Accrued expenses	11,527	7,730
Non-current deferred tax liabilities:
Intangible assets	(4,203)	(4,508)
Depreciation	(6,964)	(7,446)
Non-U.S. deferred tax liability	(1,342)	0
Other	(626)	(815)
Deferred tax assets net of deferred tax liabilities	10,759	7,177
Valuation allowance	(3,467)	(3,558)
Deferred tax assets, net	7,292	3,619
Income Taxes
Increase in valuation allowance related to state and foreign losses	100
Undistributed earnings	71,900
Deferred tax liability that would be recognized if earnings were distributed	13,400
Gross amount of net operating losses available for carryover to future years	17,300	14,800
U.S. State
Non-current deferred tax assets:
Net operating loss carryforwards	1,400	1,600
Luxembourg
Non-current deferred tax assets:
Net operating loss carryforwards	2,200	2,300
U.S. State and U.S. Federal
Non-current deferred tax assets:
Net operating loss carryforwards	300	2,600
NCI
Income Taxes
Annual limit on use of operating loss carryforward	1,300
Gross amount of net operating losses available for carryover to future years	$ 6,900	$ 10,100

INCOME TAXES (Details 4)	12 Months Ended
INCOME TAXES (Details 4)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Income Tax Provision to the Luxembourg income tax rate
Statutory tax rate	29.22%	29.22%	29.22%
Permanent difference related to Luxembourg intangible assets	0.00%	(13.56%)	(22.60%)
Change in valuation allowance	(0.08%)	0.83%	(0.05%)
State tax expense	2.30%	0.29%	0.03%
Tax credits	(1.81%)	(2.34%)	(0.71%)
Uncertain taxes	(3.65%)	1.39%	0.88%
Other	3.20%	(0.26%)	0.14%
Effective tax rate	29.18%	15.57%	6.91%

INCOME TAXES (Details 5) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 5) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
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	$ 2,005	$ 1,153
Decreases as a result of tax positions taken in a prior period	(1,527)	0
Increases as a result of tax positions taken in a prior period	60	638
Increases as a result of tax positions taken in the current period	220	214
Amount of unrecognized tax benefits as of the end of the year	758	2,005
Unrecognized tax benefits that would affect the effective tax rate	600	2,100
Unrecognized tax benefits, income tax penalties and interest accrued	$ 100	$ 200

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[1],[2]

Mar. 31, 2016

^[1],[2]

Dec. 31, 2015

^{[1],[3],[4],[5]}

Sep. 30, 2015

^{[1],[3],[4],[5]}

Jun. 30, 2015

^{[1],[3],[4],[5]}

Mar. 31, 2015

^{[1],[3],[4],[5]}

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Earnings Per Share [Abstract]

Net income attributable to Altisource

$ (20,384)

$ 10,589

$ 19,994

$ 18,494

$ (45,096)

$ 37,046

$ 45,950

$ 3,698

$ 28,693

$ 41,598

$ 134,484

Weighted average common shares outstanding, basic

18,788

18,715

18,437

18,855

19,196

19,091

19,571

20,172

18,696

19,504

21,625

Dilutive effect of stock options and restricted shares

916

1,115

2,009

Weighted average common shares outstanding, diluted

18,788

19,568

19,604

20,040

19,196

20,411

20,669

20,995

19,612

20,619

23,634

Earnings per share:

Basic (in dollars per share)

$ (1.08)

$ 0.57

$ 1.08

$ 0.98

$ (2.35)

$ 1.94

$ 2.35

$ 0.18

$ 1.53

$ 2.13

$ 6.22

Diluted (in dollars per share)

$ (1.08)

$ 0.54

$ 1.02

$ 0.92

$ (2.35)

$ 1.82

$ 2.22

$ 0.18

$ 1.46

$ 2.02

$ 5.69

Employee and non employee stock option

Anti-dilutive securities

Options excluded from the computation of diluted EPS, approximate (in shares) (less than 0.1 million shares in 2014)

400

600

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) (less than 0.1 million shares in 2014)

400

300

100

[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 Granite on July 29, 2016 (see Note 5).
[3]	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.
[4]	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).
[5]	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2016
Concentration Risk [Line Items]
Accrued litigation settlement	$ 32,000	$ 0
Additional revenue earned on portfolios serviced by Ocwen	19.00%
Escrow and Trust Balances
Amounts held in escrow and trust accounts	$ 64,100	$ 66,600
HLSS \| NRZ
Concentration Risk [Line Items]
Non-goverment-sponsored enterprise servicing rights				78.00%
Revenue from Rights Concentration Risk \| Ocwen \| Sales Revenue, Segment
Concentration Risk [Line Items]
Percentage of revenue from largest customer	56.00%	60.00%	60.00%

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Lease Obligations
Total operating lease expense, net of sublease income	$ 17,600	$ 20,000	$ 20,100
Future minimum payments due, sublease rentals	3,100
Operating lease obligations
2017	17,857
2018	13,560
2019	10,706
2020	7,406
2021	5,469
Thereafter	1,154
Operating lease obligations	56,152
Financial Standby Letter of Credit
Operating Lease Obligations
Standby letter of credit	$ 2,100
Minimum
Operating Lease Obligations
Customary lease term	1 year
Maximum
Operating Lease Obligations
Customary lease term	9 years

SEGMENT REPORTING (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

USD ($)

Sep. 30, 2016

USD ($)

^[1],[2]

Jun. 30, 2016

USD ($)

^[1],[2]

Mar. 31, 2016

USD ($)

^[1],[2]

Dec. 31, 2015

USD ($)

Sep. 30, 2015

USD ($)

^{[1],[3],[4],[5]}

Jun. 30, 2015

USD ($)

^{[1],[3],[4],[5]}

Mar. 31, 2015

USD ($)

^{[1],[3],[4],[5]}

Dec. 31, 2016

USD ($)

segment

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Segment Reporting [Abstract]

Number of reporting segments | segment

SEGMENT REPORTING

Revenue

$ 238,627

^[1],[2]

$ 252,745

$ 255,799

$ 250,132

$ 269,887

^{[1],[3],[4],[5]}

$ 272,776

$ 268,321

$ 240,482

$ 997,303

$ 1,051,466

$ 1,078,916

Cost of revenue

690,045

687,327

707,180

Gross profit

65,818

^[1],[2]

78,743

81,428

81,269

97,395

^{[1],[3],[4],[5]}

98,926

100,162

67,656

307,258

364,139

371,736

Selling, general and administrative expenses

214,155

220,868

201,733

Litigation settlement loss, net of $4,000 insurance recovery

28,000

Impairment losses

71,800

71,785

37,473

Change in the fair value of Equator Earn Out

(7,591)

(37,924)

Income from operations

65,103

79,077

170,454

Other income (expense), net

(20,782)

(26,017)

(23,189)

Income before income taxes and non-controlling interests

(19,537)

^[1],[2]

$ 18,796

$ 23,977

$ 21,085

(44,192)

^{[1],[3],[4],[5]}

$ 41,200

$ 51,244

$ 4,808

44,321

53,060

147,265

Total Assets:

Total Assets

689,212

721,798

689,212

721,798

Operating Segment | Mortgage Services

SEGMENT REPORTING

Revenue

804,539

786,648

793,143

Cost of revenue

514,832

474,169

486,387

Gross profit

289,707

312,479

306,756

Selling, general and administrative expenses

108,987

105,153

94,686

Litigation settlement loss, net of $4,000 insurance recovery

Impairment losses

Change in the fair value of Equator Earn Out

Income from operations

180,720

207,326

212,070

Other income (expense), net

506

204

Income before income taxes and non-controlling interests

180,763

207,832

212,274

Total Assets:

Total Assets

306,207

325,461

306,207

325,461

Operating Segment | Financial Services

SEGMENT REPORTING

Revenue

74,352

88,448

98,499

Cost of revenue

53,841

60,806

64,338

Gross profit

20,511

27,642

34,161

Selling, general and administrative expenses

17,768

18,707

18,791

Litigation settlement loss, net of $4,000 insurance recovery

Impairment losses

Change in the fair value of Equator Earn Out

Income from operations

2,743

8,935

15,370

Other income (expense), net

Income before income taxes and non-controlling interests

2,835

8,993

15,432

Total Assets:

Total Assets

38,746

53,757

38,746

53,757

Operating Segment | Technology Services

SEGMENT REPORTING

Revenue

160,101

215,482

227,300

Cost of revenue

159,869

187,835

192,426

Gross profit

232

27,647

34,874

Selling, general and administrative expenses

27,811

29,902

32,393

Litigation settlement loss, net of $4,000 insurance recovery

Impairment losses

71,785

37,473

Change in the fair value of Equator Earn Out

(7,591)

(37,924)

Income from operations

(27,579)

(66,449)

2,932

Other income (expense), net

(31)

Income before income taxes and non-controlling interests

(27,513)

(66,388)

2,901

Total Assets:

Total Assets

130,032

165,778

130,032

165,778

Corporate Items and Eliminations

SEGMENT REPORTING

Revenue

(41,689)

(39,112)

(40,026)

Cost of revenue

(38,497)

(35,483)

(35,971)

Gross profit

(3,192)

(3,629)

(4,055)

Selling, general and administrative expenses

59,589

67,106

55,863

Litigation settlement loss, net of $4,000 insurance recovery

28,000

Impairment losses

Change in the fair value of Equator Earn Out

Income from operations

(90,781)

(70,735)

(59,918)

Other income (expense), net

(20,983)

(26,642)

(23,424)

Income before income taxes and non-controlling interests

(111,764)

(97,377)

$ (83,342)

Total Assets:

Total Assets

$ 214,227

$ 176,802

$ 214,227

$ 176,802

[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 Granite on July 29, 2016 (see Note 5).
[3]	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.
[4]	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).
[5]	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).

SEGMENT REPORTING (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Premises & equipment, net
Premises and equipment, net	$ 103,473	$ 119,121
United States
Premises & equipment, net
Premises and equipment, net	71,418	85,021
India
Premises & equipment, net
Premises and equipment, net	14,006	21,187
Luxembourg
Premises & equipment, net
Premises and equipment, net	14,791	9,944
Philippines
Premises & equipment, net
Premises and equipment, net	3,027	2,664
Uruguay
Premises & equipment, net
Premises and equipment, net	$ 231	$ 305

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[1],[2]

Mar. 31, 2016

^[1],[2]

Dec. 31, 2015

Sep. 30, 2015

^{[1],[3],[4],[5]}

Jun. 30, 2015

^{[1],[3],[4],[5]}

Mar. 31, 2015

^{[1],[3],[4],[5]}

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Revenue

$ 238,627

^[1],[2]

$ 252,745

$ 255,799

$ 250,132

$ 269,887

^{[1],[3],[4],[5]}

$ 272,776

$ 268,321

$ 240,482

$ 997,303

$ 1,051,466

$ 1,078,916

Gross profit

65,818

^[1],[2]

78,743

81,428

81,269

97,395

^{[1],[3],[4],[5]}

98,926

100,162

67,656

307,258

364,139

371,736

Income (loss) before income taxes and non-controlling interests

(19,537)

^[1],[2]

18,796

23,977

21,085

(44,192)

^{[1],[3],[4],[5]}

41,200

51,244

4,808

44,321

53,060

147,265

Net income

(19,664)

^[1],[2]

11,472

20,686

18,892

(44,351)

^{[1],[3],[4],[5]}

37,897

46,846

4,408

31,386

44,800

137,087

Net income (loss) attributable to Altisource

$ (20,384)

^[1],[2]

$ 10,589

$ 19,994

$ 18,494

$ (45,096)

^{[1],[3],[4],[5]}

$ 37,046

$ 45,950

$ 3,698

$ 28,693

$ 41,598

$ 134,484

Earnings per share:

Basic (in dollars per share)

$ (1.08)

^[1],[2]

$ 0.57

$ 1.08

$ 0.98

$ (2.35)

^{[1],[3],[4],[5]}

$ 1.94

$ 2.35

$ 0.18

$ 1.53

$ 2.13

$ 6.22

Diluted (in dollars per share)

$ (1.08)

^[1],[2]

$ 0.54

$ 1.02

$ 0.92

$ (2.35)

^{[1],[3],[4],[5]}

$ 1.82

$ 2.22

$ 0.18

$ 1.46

$ 2.02

$ 5.69

Weighted average shares outstanding:

Basic (in shares)

18,788

^[1],[2]

18,715

18,437

18,855

19,196

^{[1],[3],[4],[5]}

19,091

19,571

20,172

18,696

19,504

21,625

Diluted (in shares)

18,788

^[1],[2]

19,568

19,604

20,040

19,196

^{[1],[3],[4],[5]}

20,411

20,669

20,995

19,612

20,619

23,634

Accrued litigation settlement

$ 32,000

$ 0

$ 32,000

$ 0

Litigation settlement insurance recovery

$ 4,000

4,000

Impairment losses

$ 71,800

$ 0

$ 71,785

$ 37,473

[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 Granite on July 29, 2016 (see Note 5).
[3]	During the fourth quarter of 2015, Altisource recorded an estimated loss in connection with an anticipated payment to Ocwen for obtaining a release of liability for Altisource related to Ocwen’s settlement of a particular case.
[4]	In the fourth quarter of 2015, we recorded impairment losses of $71.8 million in our Technology Services segment primarily driven by the Company’s projected Technology Services revenue from Ocwen and investment in technologies provided to Ocwen (see Note 9 and Note 10).
[5]	We acquired CastleLine on July 17, 2015 and RentRange and Investability on October 9, 2015 (see Note 5).

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Valuation allowances, beginning balance	$ 18,456	$ 22,675	$ 5,631
Valuation allowances, charged to expenses	1,829	5,514	16,257
Valuation allowances, charged to other accounts	250	(4)	1,399
Valuation allowances, deductions	10,111	9,729	612
Valuation allowances, ending balance	10,424	18,456	22,675
Valuation Allowance of Deferred Tax Assets
Movement in Valuation Allowances and Reserves [Roll Forward]
Valuation allowances, beginning balance	3,558	3,115	3,189
Valuation allowances, charged to expenses	228	674	0
Valuation allowances, charged to other accounts	0	0	0
Valuation allowances, deductions	319	231	74
Valuation allowances, ending balance	$ 3,467	$ 3,558	$ 3,115

SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Market-based options vesting prices (Details)	Dec. 31, 2016 $ / shares shares
Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	129,513
Market-based options, weighted average share price (in dollars per share) \| $ / shares	$ 50.32
Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	106,518
Market-based options, weighted average share price (in dollars per share) \| $ / shares	$ 48.13
$40.01 — $50.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	40.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 50.00
$40.01 — $50.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	14,500
$40.01 — $50.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	0
$50.01 — $60.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 50.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 60.00
$50.01 — $60.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	47,129
$50.01 — $60.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	16,483
$60.01 — $70.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 60.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 70.00
$60.01 — $70.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	17,884
$60.01 — $70.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	6,250
$70.01 — $80.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 70.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 80.00
$70.01 — $80.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	0
$70.01 — $80.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	1,000
$80.01 — $90.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 80.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 90.00
$80.01 — $90.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	0
$80.01 — $90.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	25,467
$90.01 — $100.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 90.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 100.00
$90.01 — $100.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	2,500
$90.01 — $100.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	8,943
$140.01 — $150.00
Market prices for market performance options to vest
Market-based options, vesting price, low end of range (in dollars per share) \| $ / shares	$ 140.01
Market-based options, vesting price, high end of range (in dollars per share) \| $ / shares	$ 150.00
$140.01 — $150.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	12,500
$140.01 — $150.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	1,250
$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)	0
$180.01 — $190.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	23,375
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	$ 190.01
Over $190.00 \| Ordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	22,500
Over $190.00 \| Extraordinary performance grants
Market prices for market performance options to vest
Market-based options, options expected to vest (in shares)	23,750