Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	Apr. 20, 2018
Document and Entity Information
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	0001462418
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		17,204,646
Entity Treasury Stock (in shares)		8,208,102
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 84,850	$ 105,006
Investment in equity securities	41,652	49,153
Accounts receivable, net	50,839	52,740
Prepaid expenses and other current assets	73,955	64,742
Total current assets	251,296	271,641
Premises and equipment, net	65,585	73,273
Goodwill	86,283	86,283
Intangible assets, net	112,918	120,065
Deferred tax assets, net	305,679	303,707
Other assets	10,012	10,195
Total assets	831,773	865,164
Current liabilities:
Accounts payable and accrued expenses	66,475	84,400
Current portion of long-term debt	5,945	5,945
Deferred revenue	15,489	9,802
Other current liabilities	6,651	9,414
Total current liabilities	94,560	109,561
Long-term debt, less current portion	401,716	403,336
Other non-current liabilities	15,415	12,282
Commitments, contingencies and regulatory matters
Equity:
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 17,343 outstanding as of March 31, 2018; 100,000 shares authorized, 25,413 shares issued and 17,418 outstanding as of December 31, 2017)	25,413	25,413
Additional paid-in capital	114,676	112,475
Retained earnings	600,253	626,600
Accumulated other comprehensive income	0	733
Treasury stock, at cost (8,070 shares as of March 31, 2018 and 7,995 shares as of December 31, 2017)	(421,486)	(426,609)
Altisource equity	318,856	338,612
Non-controlling interests	1,226	1,373
Total equity	320,082	339,985
Total liabilities and equity	$ 831,773	$ 865,164

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	25,413,000	25,413,000
Common stock, shares outstanding (in shares)	17,343,000	17,418,000
Treasury stock, shares (in shares)	8,070,000	7,995,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 197,438	$ 240,483
Cost of revenue	147,194	177,953
Gross profit	50,244	62,530
Selling, general and administrative expenses	43,124	47,701
Income from operations	7,120	14,829
Other income (expense), net:
Interest expense	(5,863)	(5,798)
Unrealized loss on investment in equity securities	(7,501)	0
Other income (expense), net	1,272	715
Total other income (expense), net	(12,092)	(5,083)
(Loss) income before income taxes and non-controlling interests	(4,972)	9,746
Income tax benefit (provision)	1,365	(2,586)
Net (loss) income	(3,607)	7,160
Net income attributable to non-controlling interests	(525)	(615)
Net (loss) income attributable to Altisource	$ (4,132)	$ 6,545
(Loss) earnings per share:
Basic (in usd per share)	$ (0.24)	$ 0.35
Diluted (in usd per share)	$ (0.24)	$ 0.34
Weighted average shares outstanding:
Basic (in shares)	17,378	18,662
Diluted (in shares)	17,378	19,304
Comprehensive (loss) income:
Reclassification of unrealized gain on investment in equity securities, net of income tax provision of $200, to retained earnings from the cumulative effect of an accounting change	$ (733)	$ 0
Unrealized gain on investment in equity securities, net of income tax provision of $4,725	0	12,723
Comprehensive (loss) income, net of tax	(4,340)	19,883
Comprehensive income attributable to non-controlling interests	(525)	(615)
Comprehensive (loss) income attributable to Altisource	$ (4,865)	$ 19,268

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income tax provision on securities	$ 0	$ 4,725
Reclassification out of accumulated other comprehensive income
Income tax provision on securities	$ (200)	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock, at cost	Non-controlling interests
Balance (in shares) at Dec. 31, 2016		25,413
Balance at Dec. 31, 2016	$ 62,194	$ 25,413	$ 107,288	$ 333,786	$ (1,745)	$ (403,953)	$ 1,405
Increase (Decrease) in Equity
Net (loss) income	7,160			6,545			615
Other comprehensive income, net of tax	12,723				12,723
Distributions to non-controlling interest holders	(569)						(569)
Share-based compensation expense	695		695
Exercise of stock options and issuance of restricted shares	752			(2,872)		3,624
Repurchase of shares	(10,590)					(10,590)
Balance (in shares) at Mar. 31, 2017		25,413
Balance at Mar. 31, 2017	72,365	$ 25,413	108,915	336,527	10,978	(410,919)	1,451
Balance (in shares) at Dec. 31, 2017		25,413
Balance at Dec. 31, 2017	339,985	$ 25,413	112,475	626,600	733	(426,609)	1,373
Increase (Decrease) in Equity
Net (loss) income	(3,607)			(4,132)			525
Distributions to non-controlling interest holders	(672)						(672)
Share-based compensation expense	2,201		2,201
Exercise of stock options and issuance of restricted shares	2,617			(12,500)		15,117
Repurchase of shares	(9,994)					(9,994)
Balance (in shares) at Mar. 31, 2018		25,413
Balance at Mar. 31, 2018	$ 320,082	$ 25,413	$ 114,676	$ 600,253	$ 0	$ (421,486)	$ 1,226

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net (loss) income	$ (3,607)	$ 7,160
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	8,721	10,008
Amortization of intangible assets	7,147	9,146
Change in the fair value of acquisition related contingent consideration	0	8
Unrealized loss on investment in equity securities	7,501	0
Share-based compensation expense	2,201	695
Bad debt expense	724	1,903
Amortization of debt discount	89	105
Amortization of debt issuance costs	273	291
Deferred income taxes	(1,972)	0
Loss on disposal of fixed assets	489	1,480
Changes in operating assets and liabilities:
Accounts receivable	2,289	2,880
Prepaid expenses and other current assets	(9,213)	(4,749)
Other assets	481	(374)
Accounts payable and accrued expenses	(18,189)	(10,177)
Other current and non-current liabilities	(5,503)	(36,735)
Net cash used in operating activities	(8,569)	(18,359)
Cash flows from investing activities:
Additions to premises and equipment	(1,258)	(1,944)
Net cash used in investing activities	(1,258)	(1,944)
Cash flows from financing activities:
Repayment of long-term debt	(1,486)	(1,486)
Debt issuance costs	(496)	0
Proceeds from stock option exercises	2,617	752
Purchase of treasury shares	(9,994)	(10,590)
Distributions to non-controlling interests	(672)	(569)
Net cash used in financing activities	(10,031)	(11,893)
Net decrease in cash, cash equivalents and restricted cash	(19,858)	(32,196)
Cash, cash equivalents and restricted cash at the beginning of the period	108,843	153,421
Cash, cash equivalents and restricted cash at the end of the period	88,985	121,225
Supplemental cash flow information:
Interest paid	5,269	5,456
Income taxes paid, net	946	6,515
Non-cash investing and financing activities:
Increase in payables for purchases of premises and equipment	$ 264	$ 2,094

ORGANIZATION AND BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

Description of Business

Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve.

We are publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” We are organized under the laws of the Grand Duchy of Luxembourg.

Basis of Accounting and Presentation

The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One^® (“Lenders 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).

The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is 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 March 31, 2018, Lenders One had total assets of $4.8 million and total liabilities of $3.2 million. As of December 31, 2017, Lenders One had total assets of $4.6 million and total liabilities of $3.1 million.

These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 22, 2018.

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.

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and during 2016, the FASB issued additional guidance providing clarifications and corrections, including: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (collectively “Topic 606”). Topic 606 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most prior revenue recognition guidance. This new standard requires that an entity recognize revenue for the transfer of promised goods or services to a customer in an amount that reflects the consideration that the entity expects to receive and consistent with the delivery of the performance obligation described in the underlying contract with the customer.

The Company adopted Topic 606 effective January 1, 2018 using the cumulative effect method. As a result of this adoption, the Company recognized an $11.2 million increase in deferred revenue, a $1.1 million increase in unbilled accounts receivable, a $0.3 million increase in other current liabilities and a $10.4 million decrease in retained earnings as of January 1, 2018. Because the Company adopted Topic 606 retrospectively with a cumulative effect as of January 1, 2018, the comparative results as of December 31, 2017 and for the three months ended March 31, 2017 have not been restated and continue to be reported under Accounting Standards Codification Topic 605, Revenue Recognition and SEC Staff Accounting Bulletin Topic 13, Revenue Recognition. The details of the significant changes and quantitative impact of the adoption of Topic 606 are described below. Also see Note 14 for additional information on revenues, including disaggregation of revenue and contract balances.

As a result of the adoption of Topic 606, the Company’s accounting policy for revenue recognition is as follows:

We recognize revenue from the services we provide in accordance with the 5-step process outlined in Topic 606. We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive. This revenue can be recognized at a point in time or over time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (unbilled accounts receivable) or a contract liability (deferred revenue or other current liabilities), as appropriate. A description of our principal revenue generating activities by reportable segment are as follows:

Mortgage Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•

For loan servicing technologies, we recognize revenue based on the number of loans on the system, on a per-transaction basis or over the estimated average number of months the loans and real estate owned (“REO”) are on the platform, as applicable. We generally recognize revenue for professional services relating to loan servicing technologies over the contract period. For our loan origination system, we generally recognize revenue over the contract term, beginning on the commencement date of each contract. For foreclosure trustee services, we recognize revenue over the period during which we perform the related services, with full recognition upon completion and/or recording the related foreclosure deed. For loan 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 use judgment to determine the period over which we recognize revenue for certain of these services. For mortgage charge-off collections performed on behalf of our clients, we recognize revenue as a percentage of amounts collected following collection from the borrowers.


•	For real estate brokerage and auction services, we recognize revenue on a net basis as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage.

•

Reimbursable expenses revenue, primarily related to our property preservation and inspection services, real estate sales and our foreclosure trustee services businesses, is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.

Real Estate Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•

For our renovation services, revenue is recognized over the period of the construction activity, based on the estimated percentage of completion of the projects. We use judgment to determine the period over which we recognize revenue for certain of these services. For real estate brokerage and auction services, we recognize revenue 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 the buy-renovate-lease-sell business, we recognize revenue associated with our sales of short-term investments in real estate on a gross basis as we assume the risks and rewards of ownership of the asset.


•	Reimbursable expenses revenue, primarily related to our real estate sales business, is included in revenue with an equal offsetting expense recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.

Other Businesses, Corporate and Eliminations

•

For the majority of the services we provide, we recognize transactional revenue when the service is provided. We generally earn fees for our post-charge-off consumer debt collection services as a percentage of the amount we collect on delinquent consumer receivables and recognize revenue following collection from the borrowers. 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.

•

For the information technology (“IT”) infrastructure services we provide to Ocwen Financial Corporation (“Ocwen”), Front Yard Residential Corporation (“RESI”) and Altisource Asset Management Corporation (“AAMC”), we recognize revenue primarily based on the number of users of the applicable systems, fixed fees and the number and type of licensed platforms. We recognize revenue associated with implementation services upon completion and maintenance ratably over the related service period.

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported		Adjustments			Balances without adoption of Topic 606

Accounts receivable, net	$	50,839	$	(28	)	$	50,811
Total current assets	251,296		(28		)	251,268
Total assets	831,773		(28		)	831,745

Other current liabilities	6,651		348			6,999
Deferred revenue	15,489		(6,655		)	8,834
Total current liabilities	94,560		(6,307		)	88,253

Deferred revenue, non-current	5,529		(3,890		)	1,639

Retained earnings	600,253		10,169			610,422
Altisource equity	318,856		10,169			329,025
Total equity	320,082		10,169			330,251
Total liabilities and equity	831,773		(28		)	831,745

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income for the three months ended March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported			Adjustments			Balances without adoption of Topic 606

Revenue	$	197,438		$	412		$	197,850
Cost of revenue	147,194			797			147,991
Gross profit	50,244			(385		)	49,859
Income from operations	7,120			(385		)	6,735
Loss before income taxes and non-controlling interests	(4,972		)	(385		)	(5,357		)
Income tax benefit	1,365			106			1,471
Net loss	(3,607		)	(279		)	(3,886		)
Net loss attributable to Altisource	(4,132		)	(279		)	(4,411		)

The adoption of Topic 606 did not have any impact on net cash flows used in operating, financing or investing activities on the Company’s condensed consolidated statement of cash flows for the three months ended March 31, 2018.

Financial Instruments

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This standard requires 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 was effective for the Company on January 1, 2018. The adoption of this standard resulted in a cumulative effect adjustment to increase retained earnings and decrease accumulated other comprehensive income by $0.7 million on January 1, 2018. Changes in the fair value of the Company’s investment in RESI subsequent to January 1, 2018, as well as any equity investments acquired in the future, will be reflected as a component of net income in the Company’s condensed consolidated statements of operations and comprehensive income.

Other Recently Adopted Accounting Pronouncements

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 was effective for the Company on January 1, 2018, and the adoption of this guidance did not have any effect on the Company’s condensed consolidated 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 requires that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Previous guidance prohibited 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 was effective for the Company on January 1, 2018, and the adoption of this guidance did not have any effect on the Company’s 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 requires 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 was effective for the Company on January 1, 2018, and was adopted using the retrospective transition method, as required by the standard. The adoption of this standard resulted in the classification of the Company’s restricted cash with cash and cash equivalents reported in the Company’s condensed consolidated statements of cash flows. As a result, the Company included $4.1 million, $3.8 million, $4.1 million and $4.1 million of restricted cash with cash and cash equivalents in its condensed consolidated statements of cash flows as of March 31, 2018, December 31, 2017, March 31, 2017 and December 31, 2016, respectively.

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 Topic 606. This standard was effective for the Company on January 1, 2018, and the adoption of this guidance did not have any effect on the Company’s results of operations and financial position.

In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This standard was issued to clarify the scope of Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, and to add guidance for partial sales of nonfinancial assets. Subtopic 610-20 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. This standard was effective for the Company on January 1, 2018, and the adoption of this guidance did not have any effect on the Company’s results of operations and financial position.

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This standard provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting. This standard requires companies to continue to apply modification accounting, unless the fair value, vesting conditions and classification of an award all do not change as a result of the modification. This standard was effective for the Company on January 1, 2018, and the adoption of this guidance did not have any effect on the Company’s results of operations and financial position.

Future Adoption of New Accounting Pronouncements

In February 2016, the 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. This 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 arrangements where the Company is a lessee, we estimate that the new standard, if implemented as of March 31, 2018, would result in approximately $22.0 million right-of-use assets and lease liabilities on the Company’s condensed consolidated balance sheet as of March 31, 2018. 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 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.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this standard better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application 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.

CUSTOMER CONCENTRATION

3 Months Ended

Mar. 31, 2018

Risks and Uncertainties [Abstract]

CUSTOMER CONCENTRATION

During the three months ended March 31, 2018, Ocwen was our largest customer, accounting for 52% of our total revenue. Ocwen is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of MSRs owned by others. Ocwen purchases certain mortgage services and technology services from us under the terms of master services agreements and amendments thereto (collectively, the “Ocwen Services Agreements”) with terms extending through August 2025. Certain of the Ocwen Service Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. 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. and Residential Capital, LLC loan portfolios acquired by Ocwen in December 2012 and February 2013, respectively. Ocwen also purchases certain origination services from Altisource under an agreement that continues until January 2019, but which is subject to a 90 day termination right by Ocwen.

Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced by Ocwen when Ocwen designates us as the service provider and revenue earned directly from Ocwen. For the three months ended March 31, 2018 and 2017, we generated revenue from Ocwen of $102.0 million and $141.4 million, respectively. Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows for the three months ended March 31:



	2018		2017

Mortgage Market	60	%	68	%
Real Estate Market	1	%	1	%
Other Businesses, Corporate and Eliminations	9	%	14	%
Consolidated revenue	52	%	59	%

We earn additional revenue related to the loan portfolios serviced by Ocwen when a party other than Ocwen or the MSR owner selects Altisource as the service provider. For the three months ended March 31, 2018 and 2017, we recognized revenue of $15.2 million and $41.7 million, respectively, related to the loan portfolios serviced by Ocwen when a party other than Ocwen or the MSR owner selected Altisource as the service provider. These amounts are not included in deriving revenue from Ocwen as a percentage of revenue in the table above.

As of March 31, 2018, accounts receivable from Ocwen totaled $18.4 million, $13.4 million of which was billed and $5.0 million of which was unbilled. As of December 31, 2017, accounts receivable from Ocwen totaled $18.9 million, $13.6 million of which was billed and $5.3 million of which was unbilled.

As of June 30, 2017, we estimate that New Residential Investment Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “NRZ”) owned certain economic rights in, but not legal title to, approximately 78% of Ocwen’s non-government-sponsored enterprise (“non-GSE”) MSRs (the “Subject MSRs”). As previously disclosed, in July 2017, Ocwen and NRZ entered into agreements to convert NRZ’s economic rights to the Subject MSRs into fully-owned MSRs in exchange for payments from NRZ to Ocwen when such Subject MSRs were transferred. The transfers are subject to certain third party consents. Ocwen disclosed that under these agreements, Ocwen would subservice the transferred Subject MSRs for an initial term of five years, and the agreements provided for the conversion of the existing arrangements into a more traditional subservicing arrangement.

In January 2018, Ocwen disclosed that it and NRZ entered into new agreements to accelerate the implementation of certain parts of their July 2017 arrangement in order to achieve the intent of the July 2017 agreements sooner while Ocwen continues the process of obtaining the third party consents necessary to transfer the Subject MSRs to NRZ.

On August 28, 2017, Altisource, through its licensed subsidiaries, entered into a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with NRZ which extends through August 2025. Under this agreement and related amendments, Altisource remains the exclusive provider of brokerage services for REO associated with the Subject MSRs when Ocwen transfers such MSRs to NRZ or when NRZ acquires both an additional economic interest in such Subject MSRs and the right to designate the broker for REO properties in such portfolios. The Brokerage Agreement provides that Altisource is the exclusive provider of brokerage services for REO associated with the Subject MSRs, irrespective of the sub-servicer. NRZ’s brokerage subsidiary will receive a cooperative brokerage commission on the sale of certain REO properties from these portfolios subject to certain exceptions.

For the three months ended March 31, 2018, we earned revenue from NRZ of $10.3 million following the transfer of certain of the Subject MSRs from Ocwen to NRZ (the “Transferred MSRs”) (no comparative amount in 2017). For the three months ended March 31, 2018, we earned additional revenue of $16.1 million relating to the Transferred MSRs when a party other than NRZ selects Altisource as the service provider (no comparative amount in 2017).

On August 28, 2017, Altisource and NRZ also entered into a non-binding Letter of Intent, as amended, to enter into a Services Agreement (the “Services LOI”), setting forth the terms pursuant to which Altisource would remain the exclusive service provider of fee-based services for the Subject MSRs through August 2025. The Services LOI was amended to continue through April 30, 2018 with a further automatic extension through May 15, 2018 provided that the parties continue to negotiate the Services Agreement in good faith.

The Brokerage Agreement can be terminated by Altisource if the Services Agreement is not signed by Altisource and NRZ during the term of the Services LOI, as extended. The Brokerage Agreement may otherwise only be terminated upon the occurrence of certain specified events. Termination events include, but are not limited to, a breach of the terms of the Brokerage Agreement (including, without limitation, the failure to meet performance standards and non-compliance with law in a material respect), the failure to maintain licenses which failure materially prevents performance of the contract, regulatory allegations of non-compliance resulting in an adversarial proceeding against NRZ, voluntary or involuntary bankruptcy, appointment of a receiver, disclosure in a Form 10-K or Form 10-Q that there is significant uncertainty about Altisource’s ability to continue as a going concern, failure to maintain a specified level of cash and an unapproved change of control.

We anticipate that revenue from NRZ will increase over time and revenue from Ocwen will decrease. As Subject MSRs continue to transfer from Ocwen to NRZ and following the anticipated execution of the Services Agreement, we expect that NRZ will become our largest customer. Had all of the Subject MSRs been transferred to NRZ and the Brokerage Agreement and the Services Agreement with NRZ been in place as of January 1, 2018, we estimate that approximately 48% of our revenue for the three months ended March 31, 2018 would have been related to NRZ. There can be no assurance that the parties will reach an agreement with respect to the terms of the Services Agreement or that a Services Agreement will be entered into on a timely basis or at all.

INVESTMENT IN EQUITY SECURITIES	3 Months Ended
INVESTMENT IN EQUITY SECURITIES	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENT IN EQUITY SECURITIES	INVESTMENT IN EQUITY SECURITIES During 2016, we purchased 4.1 million shares of RESI common stock for $48.2 million. This investment is reflected in the condensed consolidated balance sheets at a fair value of $41.7 million as of March 31, 2018 and $49.2 million as of December 31, 2017. During the three months ended March 31, 2018, we recognized an unrealized loss of $7.5 million on our investment in RESI as a result of a decline in the market value of RESI common shares in the condensed consolidated statements of operations and comprehensive income. During the three months ended March 31, 2017, an unrealized gain on our investment in RESI of $12.7 million, net of income tax expense, was reflected in other comprehensive income in the condensed consolidated statements of operations and comprehensive income (See Note 1 for additional information on the adoption of the new accounting standard on investments in equity securities). During the three months ended March 31, 2018 and 2017, we earned dividends of $0.6 million in each period related to this investment.

ACCOUNTS RECEIVABLE, NET

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consists of the following:



(in thousands)	March 31, 2018			December 31, 2017

Billed	$	42,509		$	40,787
Unbilled	19,231			22,532
	61,740			63,319
Less: Allowance for doubtful accounts	(10,901		)	(10,579		)

Total	$	50,839		$	52,740

Unbilled accounts receivable consist primarily of certain real estate asset management and sales services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, and foreclosure trustee 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 accounts receivable that are earned during a month and billed in the following month.

PREMISES AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

Premises and equipment, net consists of the following:



(in thousands)	March 31, 2018			December 31, 2017

Computer hardware and software	$	180,488		$	179,567
Leasehold improvements	33,202			33,417
Furniture and fixtures	14,015			14,092
Office equipment and other	9,574			9,388
	237,279			236,464
Less: Accumulated depreciation and amortization	(171,694		)	(163,191		)

Total	$	65,585		$	73,273

Depreciation and amortization expense totaled $8.7 million and $10.0 million for the three months ended March 31, 2018 and 2017, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive income.

GOODWILL AND INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The following is a summary of goodwill by segment:



(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations		Total

Balance as of March 31, 2018 and December 31, 2017	$	73,259	$	10,056	$	2,968	$	86,283

Intangible Assets, net

Intangible assets, net consist of the following:



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	March 31, 2018		December 31, 2017		March 31, 2018			December 31, 2017			March 31, 2018		December 31, 2017

Definite lived intangible assets:
Customer related intangible assets	10	$	277,828	$	277,828	$	(194,470	)	$	(188,258	)	$	83,358	$	89,570
Operating agreement	20	35,000		35,000		(14,307		)	(13,865		)	20,693		21,135
Trademarks and trade names	13	15,354		15,354		(9,080		)	(8,881		)	6,274		6,473
Non-compete agreements	4	1,560		1,560		(995		)	(897		)	565		663
Intellectual property	10	300		300		(123		)	(115		)	177		185
Other intangible assets	5	3,745		3,745		(1,894		)	(1,706		)	1,851		2,039

Total		$	333,787	$	333,787	$	(220,869	)	$	(213,722	)	$	112,918	$	120,065

Amortization expense for definite lived intangible assets was $7.1 million and $9.1 million for the three months ended March 31, 2018 and 2017, respectively. Anticipated annual definite lived intangible asset amortization for 2018 through 2022 is $26.4 million, $21.8 million, $18.2 million, $11.4 million and $7.3 million, respectively.

- Definition

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

+ References + Details

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

3 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consist of the following:



(in thousands)	March 31, 2018		December 31, 2017

Accounts payable	$	11,324	$	15,682
Accrued expenses - general	30,628		27,268
Accrued salaries and benefits	24,523		41,363
Income taxes payable	—		87

Total	$	66,475	$	84,400

Other current liabilities consist of the following:



(in thousands)	March 31, 2018		December 31, 2017

Unfunded cash account balances	$	3,597	$	5,900
Other	3,054		3,514

Total	$	6,651	$	9,414

LONG-TERM DEBT

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consists of the following:



(in thousands)	March 31, 2018			December 31, 2017

Senior secured term loan	$	412,095		$	413,581
Less: Debt issuance costs, net	(3,381		)	(3,158		)
Less: Unamortized discount, net	(1,053		)	(1,142		)
Net long-term debt	407,661			409,281
Less: Current portion	(5,945		)	(5,945		)

Long-term debt, less current portion	$	401,716		$	403,336

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 subsidiaries were guarantors of the senior secured term loan (collectively, the “Guarantors”). We subsequently entered into four amendments to the senior secured term loan agreement to, among other changes, increase the principal amount of the senior secured term loan, re-establish the $200.0 million incremental senior secured term loan facility accordion, lower the interest rate, extend the maturity date by approximately one year, 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) and certain other changes including to facilitate an internal restructuring of the Company’s subsidiaries. On April 3, 2018, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. entered into a credit agreement with Morgan Stanley Senior Funding, Inc. as administrative agent and collateral agent and the other lender parties thereto, pursuant to which the lenders have agreed to extend credit to Altisource S.à r.l. in the form of (i) Term B Loans (as defined in the credit agreement) in an aggregate principal amount equal to $412.0 million and (ii) a $15.0 million revolving credit facility. The proceeds of the Term B Loans were used to refinance Altisource S.à r.l.’s senior secured term loan. See Note 21 for additional information on the April 3, 2018 Term B Loans and revolving credit facility.

The senior secured term loan was required to 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 would have been 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 senior secured term loan was 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 agreement (the percentage increases if the leverage ratio exceeds 3.50 to 1.00). No mandatory prepayments were owed for the three months ended March 31, 2018.

The senior secured term loan bore interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate loans bore 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 bore 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 March 31, 2018 was 5.38%.

Senior secured term loan payments were guaranteed by the Guarantors and were secured by a pledge of all equity interests of certain subsidiaries as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions.

The senior secured term loan agreement included covenants that restricted or limited, 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 contained 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 caused, or gave 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 occurred and was not cured within applicable grace periods set forth in the senior secured term loan agreement or waived, all loans and other obligations could have become due and immediately payable and the facility could have been terminated.

At March 31, 2018, debt issuance costs were $3.4 million, net of $7.4 million of accumulated amortization. At December 31, 2017, debt issuance costs were $3.2 million, net of $7.1 million of accumulated amortization.

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of March 31, 2018 and December 31, 2017. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:



	March 31, 2018								December 31, 2017
(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	$	84,850	$	84,850	$	—	$	—	$	105,006	$	105,006	$	—	$	—
Restricted cash	4,135		4,135		—		—		3,837		3,837		—		—
Investment in equity securities	41,652		41,652		—		—		49,153		49,153		—		—

Liabilities:
Long-term debt	412,095		—		412,095		—		413,581		—		407,377		—

Fair Value Measurements on a Recurring Basis

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

Investment in equity securities is carried at fair value and consists of 4.1 million shares of RESI common stock. The investment in equity securities is measured using Level 1 inputs as this security has a quoted price in an active market.

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.

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

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 larger, highly rated financial institutions. The Company derives the largest portion of its revenues from Ocwen (see Note 2 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 larger 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

3 Months Ended

Mar. 31, 2018

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

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Share Repurchase Program

On May 17, 2017, our shareholders approved the renewal of the share repurchase program previously approved by the shareholders on May 18, 2016, which replaced the previous share repurchase 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, for a period of five years from the date of approval. As of March 31, 2018, approximately 3.1 million shares of common stock remain available for repurchase under the program. We purchased 0.4 million shares of common stock at an average price of $27.67 per share during the three months ended March 31, 2018 and 0.4 million shares at an average price of $25.10 per share during the three months ended March 31, 2017. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of March 31, 2018, we can repurchase up to approximately $141 million of our common stock under Luxembourg law. Our senior secured term loan limited the amount we could have spent on share repurchases, which was approximately $464 million as of March 31, 2018, and may have prevented repurchases in certain circumstances. The new credit agreement retains this amount available for share repurchases and other restricted payments. See Note 21 for additional information on the new credit agreement.

Share-Based Compensation

We issue share-based awards in the form of stock options, restricted shares and restricted share units for certain employees, officers and directors. We recognized share-based compensation expense of $2.2 million and $0.7 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, estimated unrecognized compensation costs related to share-based awards amounted to $16.9 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 2.28 years.

In connection with the January 1, 2017 adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. Prior to this accounting change, share-based compensation expense for stock options and restricted shares was recognized net of estimated forfeiture rates ranging from 0% to 40%. This policy election resulted in a cumulative effect adjustment of $0.9 million to retained earnings and additional paid-in capital as of January 1, 2017 using the modified retrospective transition method.

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 or four years with equal annual vesting and expire on the earlier of ten years after the date of grant or following termination of service. A total of 611 thousand service-based awards were outstanding as of March 31, 2018.

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 as “ordinary performance” grants, generally 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 as “extraordinary performance” grants, generally 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 equal 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 707 thousand market-based awards were outstanding as of March 31, 2018.

Performance-Based Options. These option grants generally begin to vest upon the achievement of certain specific financial measures. Generally, the awards begin vesting if the performance criteria are achieved; one-fourth vest on each anniversary of the grant date. For certain other financial measures, awards cliff-vest upon the achievement of the specific performance during the period from 2018 through 2021. 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 above threshold performance levels, participants have the opportunity to vest in 50% to 200% of the option grants, depending upon performance achieved. 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. There were 306 thousand performance-based awards outstanding as of March 31, 2018.

The Company granted 261 thousand stock options (at a weighted average exercise price of $24.95 per share) during the three months ended March 31, 2018. There were no stock option grants during the three months ended March 31, 2017.

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:



	Three months ended March 31, 2018
	Black-Scholes	Binomial

Risk-free interest rate (%)	2.66 – 2.70	1.65 – 2.77
Expected stock price volatility (%)	70.31 – 71.81	71.81
Expected dividend yield	—	—
Expected option life (in years)	6.00 – 6.25	2.56 – 4.32
Fair value	$16.17 – $17.15	$15.58 – $18.28

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 period presented:



	Three months ended March 31,
(in thousands, except per share amounts)	2018		2017

Weighted average grant date fair value of stock options granted per share	$	16.20	$	—
Intrinsic value of options exercised	4,320		868
Grant date fair value of stock options that vested	23		89

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, 2017	1,745,906		$	28.20	4.96	$	10,202
Granted	260,697		24.95
Exercised	(286,252	)	9.14
Forfeited	(96,734	)	36.35

Outstanding at March 31, 2018	1,623,617		30.55		6.09	3,999

Exercisable at March 31, 2018	841,472		27.81		3.95	2,817

Other Share-Based Awards

The Company’s other share-based and similar types of awards are composed of restricted shares and, beginning in 2018, restricted share units. The restricted shares and restricted share units are composed of a combination of service-based awards and performance-based awards.

Service-Based Awards. These awards generally vest over one to four years with vesting in equal annual installments, vesting of all of the restricted shares at the end of the vesting period or vesting beginning after two years of service. A total of 565 thousand service-based awards were outstanding as of March 31, 2018.

Performance-Based Awards. These awards generally begin to vest upon the achievement of certain specific financial measures. Generally, the awards begin vesting if the performance criteria are achieved; one-third vest on each anniversary of the grant date. The number of performance-based restricted shares that may vest will be based on the level of achievement, as specified in the award agreements. If the performance criteria achieved is above threshold performance levels, participants have the opportunity to vest in 80% to 150% of the restricted share award, depending on performance level achieved. If the performance criteria achieved is below a certain threshold, the award is canceled. A total of two thousand performance-based awards were outstanding as of March 31, 2018.

The Company granted 255 thousand restricted shares and restricted share units (at a weighted average grant date fair value of $24.54 per share) during the three months ended March 31, 2018.

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



	Number of restricted shares

Outstanding at December 31, 2017	356,509
Granted	254,619
Forfeited/canceled	(43,697	)

Outstanding at March 31, 2018	567,431

REVENUE

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue includes service revenue, reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services and sales of short-term investments in real estate. 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, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource. Lenders One is included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1). The components of revenue were as follows for the three months ended March 31:



(in thousands)	2018		2017

Service revenue	$	188,766	$	229,839
Reimbursable expenses	8,147		10,029
Non-controlling interests	525		615

Total	$	197,438	$	240,483

As discussed in Note 1, the Company adopted Topic 606 effective January 1, 2018 using the cumulative effect method.

Disaggregation of Revenue

Disaggregation of total revenues by segment and major source is as follows for the three months ended March 31, 2018:



(in thousands)	Revenue recognized when services are performed or assets are sold		Revenue related to technology platforms and professional services		Reimbursable expenses revenue		Total revenue

Mortgage Market
Servicer Solutions	$	129,536	$	18,273	$	7,602	$	155,411
Origination Solutions	9,185		2,686		56		11,927
Total Mortgage Market	138,721		20,959		7,658		167,338

Real Estate Market
Consumer Real Estate Solutions	1,405		—		2		1,407
Real Estate Investor Solutions	13,398		—		475		13,873
Total Real Estate Market	14,803		—		477		15,280

Other Businesses, Corporate and Eliminations	13,432		1,376		12		14,820
Total revenue	$	166,956	$	22,335	$	8,147	$	197,438

Contract Balances

Our contract assets consist of unbilled accounts receivable (see Note 4). Our contract liabilities consist of current deferred revenue as reported on the condensed consolidated balance sheets and non-current deferred revenue (see Note 11). Revenue recognized that was included in the contract liability at the beginning of the period, including amounts added to the contract liability as part of the cumulative effect of the adopting Topic 606, was $5.9 million for the three months ended March 31, 2018.

COST OF REVENUE

3 Months Ended

Mar. 31, 2018

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, cost of real estate sold, 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 three months ended March 31:



(in thousands)	2018		2017

Compensation and benefits	$	54,866	$	63,092
Outside fees and services	65,098		80,959
Cost of real estate sold	3,179		4,935
Technology and telecommunications	9,451		11,351
Reimbursable expenses	8,147		10,029
Depreciation and amortization	6,453		7,587

Total	$	147,194	$	177,953

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

3 Months Ended

Mar. 31, 2018

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, facilities, risk management, sales and marketing roles. This category also includes professional fees, occupancy costs, 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 three months ended March 31:



(in thousands)	2018		2017

Compensation and benefits	$	13,569	$	12,506
Occupancy related costs	8,434		10,273
Amortization of intangible assets	7,147		9,146
Marketing costs	3,607		4,269
Professional services	3,226		3,730
Depreciation and amortization	2,268		2,421
Other	4,873		5,356

Total	$	43,124	$	47,701

OTHER INCOME (EXPENSE), NET

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

OTHER INCOME (EXPENSE), NET

Other income (expense), net consists of the following for the three months ended March 31:



(in thousands)	2018		2017

Interest income	$	131	$	98
Other, net	1,141		617

Total	$	1,272	$	715

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE

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

Basic and diluted EPS are calculated as follows for the three months ended March 31:



(in thousands, except per share data)	2018			2017

Net (loss) income attributable to Altisource	$	(4,132	)	$	6,545

Weighted average common shares outstanding, basic	17,378			18,662
Dilutive effect of stock options and restricted shares	—			642

Weighted average common shares outstanding, diluted	17,378			19,304

(Loss) earnings per share:
Basic	$	(0.24	)	$	0.35
Diluted	$	(0.24	)	$	0.34

For the three months ended March 31, 2018 and 2017, 0.3 million options and 0.4 million options, respectively, were excluded from the computation of diluted EPS because they were anti-dilutive since their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS for the three months ended March 31, 2018 and 2017 were 0.6 million options, restricted shares and restricted share units and 0.2 million options, respectively, which 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. Furthermore, as a result of the net loss attributable to Altisource for the three months ended March 31, 2018, 0.5 million options, restricted shares and restricted share units were excluded from the computation of diluted EPS for the three months ended March 31, 2018, as their impact was anti-dilutive.

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS

We record a liability for contingencies 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.

Litigation

We are currently 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.

As previously disclosed, the Company received a Notice and Opportunity to Respond and Advise (“NORA”) letter on November 10, 2016 from the Consumer Financial Protection Bureau (“CFPB”) indicating that the CFPB was considering a potential enforcement action against Altisource relating to an alleged violation of federal law focused on the REALServicing^® platform and certain other technology services provided to Ocwen, including claims related to the features, functioning and support of such technology. The NORA process provides the recipient an opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced. On December 5, 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. By letter dated April 3, 2018, the CFPB informed the Company that the investigation of the Company has been completed and the staff of the CFPB’s Office of Enforcement currently does not intend to recommend that the CFPB take enforcement action, and further that the Company is relieved of the document-retention obligations pursuant to the civil investigative process.

Ocwen Related Matters

As discussed in Note 2, during the three months ended March 31, 2018, Ocwen was our largest customer, accounting for 52% of our total revenue. Additionally, 8% of our revenue for the three months ended March 31, 2018 was earned on the loan portfolios serviced by Ocwen, when a party other than Ocwen or the MSR owner selected Altisource as the service provider.

Ocwen has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, cease and desist orders, consent orders, inquiries, subpoenas, civil investigative demand, requests for information and other actions and is subject to pending legal proceedings, some of which include claims against Ocwen for substantial monetary damages. For example, on May 15, 2017, Ocwen disclosed that on April 20, 2017, the CFPB and the State of Florida filed separate complaints in the United States District Court for the Southern District of Florida against Ocwen alleging violations of Federal consumer financial law and, in the case of Florida, Florida statutes. As another example, on May 15, 2017, Ocwen also disclosed that on April 28, 2017, the Commonwealth of Massachusetts filed a lawsuit against Ocwen in the Superior Court for the Commonwealth of Massachusetts alleging violations of state consumer financial laws relating to Ocwen’s servicing business, including lender-placed insurance and property preservation fees. Ocwen disclosed that the complaints seek to obtain permanent injunctive relief, consumer redress, refunds, restitution, disgorgement, damages, civil penalties, costs and fees and other relief. The forgoing or other matters could result in, and in some cases, have resulted in, adverse regulatory or other actions against Ocwen. Previous regulatory actions against Ocwen resulted in subjecting Ocwen to independent oversight of its operations and placing certain restrictions on its ability to acquire servicing rights.

In addition to the above, Ocwen may become subject to future federal and state regulatory investigations, cease and desist orders, consent orders, inquiries, subpoenas, civil investigative demands, requests for information, other matters or legal proceedings, any of which could also result in adverse regulatory or other actions against Ocwen.

The foregoing may have significant adverse effects on Ocwen’s business and/or our continuing relationship with Ocwen. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services (including IT and software services), it may be required to seek changes to its existing pricing structure with us, it may lose its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination 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 could 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, sells or transfers a significant portion or all of its remaining 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


•	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


•	Altisource otherwise fails to be retained as a service provider

Management cannot predict the outcome of these matters or the amount of any impact they may have on Altisource. However, in the event these 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 loan portfolios serviced by Ocwen (such as a transfer of Ocwen’s remaining servicing rights to a successor servicer), we believe the impact to Altisource could occur over an extended period of time. During this period, we believe that we will continue to generate revenue from all or a portion of Ocwen’s loan portfolios.

Our Servicer Solutions, Origination Solutions, Consumer Real Estate Solutions and Real Estate Investor Solutions businesses are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these businesses. Management believes our plans, together with current liquidity and cash flows from operations, would be sufficient to meet our 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.

Additionally, Ocwen has notified us, disclosed in its filings and stated in connection with resolving several state administrative actions discussed above, that it plans to transition from REALServicing to another mortgage servicing software platform. Furthermore, Ocwen disclosed in its filings that its pending acquisition of PHH Corporation is expected to accelerate its transition to a new servicing platform. Altisource is supporting Ocwen through this transition. We do not anticipate that a servicing technology transition would impact the other services we provide to Ocwen. For the three months ended March 31, 2018 and 2017, service revenue from REALServicing was $6.5 million and $7.0 million, respectively.

In addition to the above, as of June 30, 2017, we estimate that NRZ owned certain economic rights in, but not legal title to, approximately 78% of the Subject MSRs. As previously disclosed, in July 2017, Ocwen and NRZ entered into agreements to convert NRZ’s economic rights to the Subject MSRs into fully-owned MSRs in exchange for payments from NRZ to Ocwen when such Subject MSRs were transferred. The transfers are subject to certain third party consents. Ocwen disclosed that under these agreements, Ocwen would subservice the transferred Subject MSRs for an initial term of five years, and the agreements provided for the conversion of the existing arrangements into a more traditional subservicing arrangement.

On August 28, 2017, Altisource, through its licensed subsidiaries, entered into the Brokerage Agreement with NRZ which extends through August 2025. Under this agreement and related amendments, Altisource remains the exclusive provider of brokerage services for REO associated with the Subject MSRs when Ocwen transfers such MSRs to NRZ or when NRZ acquires both an additional economic interest in such Subject MSRs and the right to designate the broker for REO properties in such portfolios. The Brokerage Agreement provides that Altisource is the exclusive provider of brokerage services for REO associated with the Subject MSRs, irrespective of the sub-servicer. NRZ’s brokerage subsidiary will receive a cooperative brokerage commission on the sale of certain REO properties from these portfolios subject to certain exceptions.

On August 28, 2017, Altisource and NRZ also entered into the Services LOI, setting forth the terms pursuant to which Altisource would remain the exclusive service provider of fee-based services for the Subject MSRs through August 2025. The Services LOI was amended to continue through April 30, 2018 with a further automatic extension through May 15, 2018 provided that the parties continue to negotiate the Services Agreement in good faith.

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 asset recovery management business’s collections. These amounts are held in escrow and trust accounts for limited periods of time and are not included in the condensed consolidated balance sheets. Amounts held in escrow and trust accounts were $24.6 million and $35.1 million at March 31, 2018 and December 31, 2017, respectively.

SEGMENT REPORTING

3 Months Ended

Mar. 31, 2018

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 report our operations through two reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. The Mortgage Market segment provides loan servicers and originators with marketplaces, services and technologies that span the mortgage lifecycle. The Real Estate Market segment provides real estate consumers and rental property investors with marketplaces and services that span the real estate lifecycle. In addition, the Other Businesses, Corporate and Eliminations segment includes businesses that provide post-charge-off consumer debt collection services primarily to debt originators (e.g., credit card, auto lending and retail credit), customer relationship management services primarily to the utility, insurance and hotel industries and IT infrastructure management services. Other Businesses, Corporate and Eliminations also includes interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, facilities, risk management, and sales and marketing costs not allocated to the business units as well as eliminations between the reportable segments.

Financial information for our segments is as follows:



	Three months ended March 31, 2018
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	167,338	$	15,280		$	14,820		$	197,438
Cost of revenue	111,073		18,554			17,567			147,194
Gross profit (loss)	56,265		(3,274		)	(2,747		)	50,244
Selling, general and administrative expenses	23,374		4,118			15,632			43,124
Income (loss) from operations	32,891		(7,392		)	(18,379		)	7,120
Total other income (expense), net	16		2			(12,110		)	(12,092		)

Income (loss) before income taxes and non-controlling interests	$	32,907	$	(7,390	)	$	(30,489	)	$	(4,972	)



	Three months ended March 31, 2017
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	204,723	$	20,063		$	15,697		$	240,483
Cost of revenue	140,150		22,143			15,660			177,953
Gross profit (loss)	64,573		(2,080		)	37			62,530
Selling, general and administrative expenses	28,682		4,325			14,694			47,701
Income (loss) from operations	35,891		(6,405		)	(14,657		)	14,829
Total other income (expense), net	10		—			(5,093		)	(5,083		)

Income (loss) before income taxes and non-controlling interests	$	35,901	$	(6,405	)	$	(19,750	)	$	9,746



(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations		Consolidated Altisource

Total assets:
March 31, 2018	$	285,989	$	82,574	$	463,210	$	831,773
December 31, 2017	304,346		64,624		496,194		865,164

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



(in thousands)	March 31, 2018		December 31, 2017

United States	$	40,068	$	46,268
Luxembourg	16,686		16,688
India	6,797		8,136
Philippines	1,916		2,038
Uruguay	118		143

Total	$	65,585	$	73,273

SUBSEQUENT EVENT SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENT

On April 3, 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a credit agreement (the “Credit Agreement”) with Morgan Stanley Senior Funding, Inc. as administrative agent and collateral agent and the other lender parties thereto, pursuant to which the lenders have agreed to extend credit to Altisource S.à r.l. in the form of (i) Term B Loans (as defined in the Credit Agreement) in an aggregate principal amount equal to $412.0 million and (ii) a $15.0 million revolving credit facility, with Altisource Portfolio Solutions S.A. and certain wholly-owned subsidiaries of Altisource S.à r.l. acting as guarantors.

The proceeds of the Term B Loans were used to refinance Altisource S.à r.l.’s prior term loans under the credit agreement dated as of November 27, 2012 (see Note 10). When drawn, the proceeds from the revolving credit facility may be used for general corporate purposes and other uses permitted under the Credit Agreement.

As further summarized below, the Credit Agreement contains several changes from the prior credit agreement and retains certain other provisions. These include the following:


•	The Term B Loans mature in April 2024 while the term loans under the prior credit agreement would have matured in December 2020.


•	The Credit Agreement includes a revolving credit facility with a maintenance covenant that will apply to Altisource S.à r.l. only if funds are drawn on the revolving credit facility as of the last day of a fiscal quarter.


•	The new Term B Loans have no financial maintenance covenants and are similar to Altisource S.à r.l.’s term loans under the prior credit agreement.


•	The net debt definition in the Credit Agreement permits Altisource S.à r.l. to reduce net debt by up to $75 million in marketable securities while the prior credit agreement did not reduce net debt by marketable securities.


•	The Available Amount accumulated under the prior credit agreement is being carried over to the Credit Agreement. The Available Amount can be used to make certain restricted payments, investments and payments, subject to certain conditions set forth in the Credit Agreement.

•

Altisource S.à r.l. may incur incremental indebtedness under the Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $125 million (compared to $200 million in the prior credit agreement), subject to certain conditions set forth in the Credit Agreement, including a sublimit of $80 million with respect to incremental revolving credit commitments. The lenders have no obligation to provide any incremental indebtedness.


•	The new Term B Loans amortize $41.2 million in year 1, $41.2 million in year 2 and $12.4 million per year in each of the subsequent years. Amortization under the prior credit agreement was equal to $5.9 million per year.

The new Term B Loans bear interest at rates based upon, at Altisource S.à r.l.’s option, the Adjusted Eurodollar Rate or the Base Rate. Eurodollar Rate Term Loans will bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted Eurodollar Rate for a three month interest period and (y) 1.00% plus (ii) 4.00%. Eurodollar Rate Loans under the revolving credit facility will bear interest at a rate per annum of the Adjusted Eurodollar Rate for a three month interest period plus 4.00%. Base Rate Term Loans will 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) 3.00%. Base Rate loans under the revolving credit facility will bear interest at a rate per annum of the Base Rate plus 3.00%. Interest under the prior credit agreement was based upon, at Altisource S.à r.l.’s option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate loans bore 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 bore 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) 2.50%.

Mandatory repayments of the new Term B Loans from asset sales that exceed $25 million in a given calendar year and from proceeds from the sale RESI shares held on April 3, 2018 are applied against contractual amortization of the Term B Loans.

Similar to the prior credit agreement, the Credit Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type. These include covenants limiting Altisource Portfolio Solutions S.A.’s, Altisource S.à r.l.’s and each Restricted Subsidiary’s ability, subject to certain exceptions and baskets, to (i) incur indebtedness, (ii) incur liens on its assets, (iii) agree to any additional negative pledges, (iv) pay dividends and make other Restricted Junior Payments, (v) limit the ability of its subsidiaries to pay dividends or distribute assets, (vi) make investments, (vii) enter into any transaction of merger or consolidation, liquidate, wind-up or dissolve, or convey any part of its business, assets or property, or acquire the business, property or assets of another person, subject to certain exceptions, (viii) dispose of the equity interests of any Material Subsidiaries, whether through a sale of the capital stock, dissolution, merger or sale of all or substantially all of the assets of such Material Subsidiary, (ix) enter into sale and leaseback transactions, (x) enter into certain transactions with affiliates, (xi) engage in a line of business substantially different than existing business and businesses reasonably related, complimentary or ancillary thereto, (xii) modify the terms of indebtedness junior to the loans contemplated by the Credit Agreement, (xiii) modify the terms of its organizational documents in any material respect, (xiv) change its fiscal year, (xv) permit Altisource Portfolio Solutions S.A. to hold material assets, have material liabilities, or engage in certain activities, in each case, except as contemplated by the Credit Agreement, (xvi) use the proceeds of the loans for certain purposes, and (xvii) to the extent any Revolving Credit Loans are outstanding on the last day of a fiscal quarter, permit the Total Leverage Ratio to be greater than 3.50:1.00 as of the last day of such fiscal quarter (such covenant, the “Springing Revolving Financial Covenant”). The Springing Revolving Financial Covenant is for the benefit of Lenders having Revolving Credit Loans only and is subject to a customary cure provision.

The Company filed a Current Report on Form 8-K on April 4, 2018 that describes certain of the provisions of the Credit Agreement and also contains the Credit Agreement as an exhibit, which is incorporated in this Form 10-Q by reference. This description of the Credit Agreement is not complete and is qualified in its entirety by reference to the entire Credit Agreement.

ORGANIZATION AND BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting and Presentation

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

Revenue Recognition

As a result of the adoption of Topic 606, the Company’s accounting policy for revenue recognition is as follows:

Mortgage Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•


•	For real estate brokerage and auction services, we recognize revenue 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.

•

Real Estate Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•


•	Reimbursable expenses revenue, primarily related to our real estate sales business, is included in revenue with an equal offsetting expense recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.

Other Businesses, Corporate and Eliminations

•

Adoption/Future Adoption of New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers

As a result of the adoption of Topic 606, the Company’s accounting policy for revenue recognition is as follows:

Mortgage Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•


•	For real estate brokerage and auction services, we recognize revenue 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.

•

Real Estate Market


•	For the majority of the services we provide, we recognize transactional revenue when the service is provided.

•


•	Reimbursable expenses revenue, primarily related to our real estate sales business, is included in revenue with an equal offsetting expense recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationship is with us, rather than with our customers.

Other Businesses, Corporate and Eliminations

•

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported		Adjustments			Balances without adoption of Topic 606

Accounts receivable, net	$	50,839	$	(28	)	$	50,811
Total current assets	251,296		(28		)	251,268
Total assets	831,773		(28		)	831,745

Other current liabilities	6,651		348			6,999
Deferred revenue	15,489		(6,655		)	8,834
Total current liabilities	94,560		(6,307		)	88,253

Deferred revenue, non-current	5,529		(3,890		)	1,639

Retained earnings	600,253		10,169			610,422
Altisource equity	318,856		10,169			329,025
Total equity	320,082		10,169			330,251
Total liabilities and equity	831,773		(28		)	831,745

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income for the three months ended March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported			Adjustments			Balances without adoption of Topic 606

Revenue	$	197,438		$	412		$	197,850
Cost of revenue	147,194			797			147,991
Gross profit	50,244			(385		)	49,859
Income from operations	7,120			(385		)	6,735
Loss before income taxes and non-controlling interests	(4,972		)	(385		)	(5,357		)
Income tax benefit	1,365			106			1,471
Net loss	(3,607		)	(279		)	(3,886		)
Net loss attributable to Altisource	(4,132		)	(279		)	(4,411		)

Financial Instruments

Other Recently Adopted Accounting Pronouncements

Future Adoption of New Accounting Pronouncements

ORGANIZATION AND BASIS OF PRESENTATION ORGANIZATION AND BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Impact of Topic 606 on Financial Statements

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported		Adjustments			Balances without adoption of Topic 606

Accounts receivable, net	$	50,839	$	(28	)	$	50,811
Total current assets	251,296		(28		)	251,268
Total assets	831,773		(28		)	831,745

Other current liabilities	6,651		348			6,999
Deferred revenue	15,489		(6,655		)	8,834
Total current liabilities	94,560		(6,307		)	88,253

Deferred revenue, non-current	5,529		(3,890		)	1,639

Retained earnings	600,253		10,169			610,422
Altisource equity	318,856		10,169			329,025
Total equity	320,082		10,169			330,251
Total liabilities and equity	831,773		(28		)	831,745

The following table summarizes the impact of adopting Topic 606 on the Company’s condensed consolidated statement of operations and comprehensive income for the three months ended March 31, 2018:



	Impact of the adoption of Topic 606
(in thousands)	As reported			Adjustments			Balances without adoption of Topic 606

Revenue	$	197,438		$	412		$	197,850
Cost of revenue	147,194			797			147,991
Gross profit	50,244			(385		)	49,859
Income from operations	7,120			(385		)	6,735
Loss before income taxes and non-controlling interests	(4,972		)	(385		)	(5,357		)
Income tax benefit	1,365			106			1,471
Net loss	(3,607		)	(279		)	(3,886		)
Net loss attributable to Altisource	(4,132		)	(279		)	(4,411		)

CUSTOMER CONCENTRATION (Tables)

3 Months Ended

Mar. 31, 2018

Ocwen

Concentration Risk

Schedule of concentration of risk, revenue as a percentage of segment and consolidated revenue

Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows for the three months ended March 31:



	2018		2017

Mortgage Market	60	%	68	%
Real Estate Market	1	%	1	%
Other Businesses, Corporate and Eliminations	9	%	14	%
Consolidated revenue	52	%	59	%

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

3 Months Ended

Mar. 31, 2018

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:



(in thousands)	March 31, 2018		December 31, 2017

Short-term investments in real estate	$	39,320	$	29,405
Maintenance agreements, current portion	6,362		8,014
Income taxes receivable	9,702		9,227
Prepaid expenses	7,748		7,898
Other current assets	10,823		10,198

Total	$	73,955	$	64,742

PREMISES AND EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of premises and equipment, net

Premises and equipment, net consists of the following:



(in thousands)	March 31, 2018			December 31, 2017

Computer hardware and software	$	180,488		$	179,567
Leasehold improvements	33,202			33,417
Furniture and fixtures	14,015			14,092
Office equipment and other	9,574			9,388
	237,279			236,464
Less: Accumulated depreciation and amortization	(171,694		)	(163,191		)

Total	$	65,585		$	73,273

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of changes in goodwill

The following is a summary of goodwill by segment:



(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations		Total

Balance as of March 31, 2018 and December 31, 2017	$	73,259	$	10,056	$	2,968	$	86,283

Schedule of intangible assets, net

Intangible assets, net consist of the following:



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	March 31, 2018		December 31, 2017		March 31, 2018			December 31, 2017			March 31, 2018		December 31, 2017

Definite lived intangible assets:
Customer related intangible assets	10	$	277,828	$	277,828	$	(194,470	)	$	(188,258	)	$	83,358	$	89,570
Operating agreement	20	35,000		35,000		(14,307		)	(13,865		)	20,693		21,135
Trademarks and trade names	13	15,354		15,354		(9,080		)	(8,881		)	6,274		6,473
Non-compete agreements	4	1,560		1,560		(995		)	(897		)	565		663
Intellectual property	10	300		300		(123		)	(115		)	177		185
Other intangible assets	5	3,745		3,745		(1,894		)	(1,706		)	1,851		2,039

Total		$	333,787	$	333,787	$	(220,869	)	$	(213,722	)	$	112,918	$	120,065

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

3 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

Accounts payable and accrued expenses consist of the following:



(in thousands)	March 31, 2018		December 31, 2017

Accounts payable	$	11,324	$	15,682
Accrued expenses - general	30,628		27,268
Accrued salaries and benefits	24,523		41,363
Income taxes payable	—		87

Total	$	66,475	$	84,400

Schedule of other current liabilities

Other current liabilities consist of the following:



(in thousands)	March 31, 2018		December 31, 2017

Unfunded cash account balances	$	3,597	$	5,900
Other	3,054		3,514

Total	$	6,651	$	9,414

LONG-TERM DEBT (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt consists of the following:



(in thousands)	March 31, 2018			December 31, 2017

Senior secured term loan	$	412,095		$	413,581
Less: Debt issuance costs, net	(3,381		)	(3,158		)
Less: Unamortized discount, net	(1,053		)	(1,142		)
Net long-term debt	407,661			409,281
Less: Current portion	(5,945		)	(5,945		)

Long-term debt, less current portion	$	401,716		$	403,336

- 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=84159872&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=75038535&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=64930739&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=84159872&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=84159872&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=64930785&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=64930785&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=84159872&loc=d3e21521-112644

+ Details

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2018

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:



	March 31, 2018								December 31, 2017
(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	$	84,850	$	84,850	$	—	$	—	$	105,006	$	105,006	$	—	$	—
Restricted cash	4,135		4,135		—		—		3,837		3,837		—		—
Investment in equity securities	41,652		41,652		—		—		49,153		49,153		—		—

Liabilities:
Long-term debt	412,095		—		412,095		—		413,581		—		407,377		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2018

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:



	Three months ended March 31, 2018
	Black-Scholes	Binomial

Risk-free interest rate (%)	2.66 – 2.70	1.65 – 2.77
Expected stock price volatility (%)	70.31 – 71.81	71.81
Expected dividend yield	—	—
Expected option life (in years)	6.00 – 6.25	2.56 – 4.32
Fair value	$16.17 – $17.15	$15.58 – $18.28

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



	Three months ended March 31,
(in thousands, except per share amounts)	2018		2017

Weighted average grant date fair value of stock options granted per share	$	16.20	$	—
Intrinsic value of options exercised	4,320		868
Grant date fair value of stock options that vested	23		89

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, 2017	1,745,906		$	28.20	4.96	$	10,202
Granted	260,697		24.95
Exercised	(286,252	)	9.14
Forfeited	(96,734	)	36.35

Outstanding at March 31, 2018	1,623,617		30.55		6.09	3,999

Exercisable at March 31, 2018	841,472		27.81		3.95	2,817

Restricted stock and restricted stock units activity

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



	Number of restricted shares

Outstanding at December 31, 2017	356,509
Granted	254,619
Forfeited/canceled	(43,697	)

Outstanding at March 31, 2018	567,431

REVENUE (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of revenue

The components of revenue were as follows for the three months ended March 31:



(in thousands)	2018		2017

Service revenue	$	188,766	$	229,839
Reimbursable expenses	8,147		10,029
Non-controlling interests	525		615

Total	$	197,438	$	240,483

Disaggregation of revenue

Disaggregation of total revenues by segment and major source is as follows for the three months ended March 31, 2018:



(in thousands)	Revenue recognized when services are performed or assets are sold		Revenue related to technology platforms and professional services		Reimbursable expenses revenue		Total revenue

Mortgage Market
Servicer Solutions	$	129,536	$	18,273	$	7,602	$	155,411
Origination Solutions	9,185		2,686		56		11,927
Total Mortgage Market	138,721		20,959		7,658		167,338

Real Estate Market
Consumer Real Estate Solutions	1,405		—		2		1,407
Real Estate Investor Solutions	13,398		—		475		13,873
Total Real Estate Market	14,803		—		477		15,280

Other Businesses, Corporate and Eliminations	13,432		1,376		12		14,820
Total revenue	$	166,956	$	22,335	$	8,147	$	197,438

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of basic and diluted EPS calculation

Basic and diluted EPS are calculated as follows for the three months ended March 31:



(in thousands, except per share data)	2018			2017

Net (loss) income attributable to Altisource	$	(4,132	)	$	6,545

Weighted average common shares outstanding, basic	17,378			18,662
Dilutive effect of stock options and restricted shares	—			642

Weighted average common shares outstanding, diluted	17,378			19,304

(Loss) earnings per share:
Basic	$	(0.24	)	$	0.35
Diluted	$	(0.24	)	$	0.34

SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of financial information of segments

Financial information for our segments is as follows:



	Three months ended March 31, 2018
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	167,338	$	15,280		$	14,820		$	197,438
Cost of revenue	111,073		18,554			17,567			147,194
Gross profit (loss)	56,265		(3,274		)	(2,747		)	50,244
Selling, general and administrative expenses	23,374		4,118			15,632			43,124
Income (loss) from operations	32,891		(7,392		)	(18,379		)	7,120
Total other income (expense), net	16		2			(12,110		)	(12,092		)

Income (loss) before income taxes and non-controlling interests	$	32,907	$	(7,390	)	$	(30,489	)	$	(4,972	)



	Three months ended March 31, 2017
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	204,723	$	20,063		$	15,697		$	240,483
Cost of revenue	140,150		22,143			15,660			177,953
Gross profit (loss)	64,573		(2,080		)	37			62,530
Selling, general and administrative expenses	28,682		4,325			14,694			47,701
Income (loss) from operations	35,891		(6,405		)	(14,657		)	14,829
Total other income (expense), net	10		—			(5,093		)	(5,083		)

Income (loss) before income taxes and non-controlling interests	$	35,901	$	(6,405	)	$	(19,750	)	$	9,746



(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations		Consolidated Altisource

Total assets:
March 31, 2018	$	285,989	$	82,574	$	463,210	$	831,773
December 31, 2017	304,346		64,624		496,194		865,164

Schedule of premises and equipment, net by country

Premises and equipment, net consist of the following, by country:



(in thousands)	March 31, 2018		December 31, 2017

United States	$	40,068	$	46,268
Luxembourg	16,686		16,688
India	6,797		8,136
Philippines	1,916		2,038
Uruguay	118		143

Total	$	65,585	$	73,273

ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Mar. 31, 2017	Jan. 01, 2017	Dec. 31, 2016
Summary of significant accounting policies
Increase in deferred revenue	$ 15,489		$ 9,802
Other current liabilities	6,651		9,414
Decrease in retained earnings	(600,253)		(626,600)
Cumulative effect of accounting changes					$ 0
Restricted cash	4,135		3,837	$ 4,100		$ 4,100
Operating lease, right-of-use, estimated asset and liability (approximate)	22,000
Accounting Standards Update 2016-01 \| Accumulated other comprehensive income (loss)
Summary of significant accounting policies
Cumulative effect of accounting changes		$ 733
Accounting Standards Update 2014-09
Summary of significant accounting policies
Cumulative effect of accounting changes		10,448
Accounting Standards Update 2014-09 \| Adjustments
Summary of significant accounting policies
Increase in deferred revenue	(6,655)	11,200
Increase unbilled accounts receivable		1,100
Other current liabilities	348
Decrease in retained earnings	(10,169)	$ 10,400
Lenders One
Summary of significant accounting policies
Total assets	4,800		4,600
Total liabilities	$ 3,200		$ 3,100

ORGANIZATION AND BASIS OF PRESENTATION - Impact of Topic 606 on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 50,839			$ 52,740
Total current assets	251,296			271,641
Total assets	831,773			865,164
Other current liabilities	6,651			9,414
Deferred revenue	15,489			9,802
Total current liabilities	94,560			109,561
Deferred revenue, non-current	5,529			2,101
Retained earnings	600,253			626,600
Altisource equity	318,856			338,612
Total equity	320,082	$ 72,365		339,985	$ 62,194
Total liabilities and equity	831,773			$ 865,164
Revenue	197,438	240,483
Cost of revenue	147,194	177,953
Gross profit	50,244	62,530
Income from operations	7,120	14,829
Loss before income taxes and non-controlling interests	(4,972)	9,746
Income tax benefit	1,365	(2,586)
Net loss	(3,607)	7,160
Net loss attributable to Altisource	(4,132)	$ 6,545
Balances without adoption of Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	50,811
Total current assets	251,268
Total assets	831,745
Other current liabilities	6,999
Deferred revenue	8,834
Total current liabilities	88,253
Deferred revenue, non-current	1,639
Retained earnings	610,422
Altisource equity	329,025
Total equity	330,251
Total liabilities and equity	831,745
Revenue	197,850
Cost of revenue	147,991
Gross profit	49,859
Income from operations	6,735
Loss before income taxes and non-controlling interests	(5,357)
Income tax benefit	1,471
Net loss	(3,886)
Net loss attributable to Altisource	(4,411)
Accounting Standards Update 2014-09 \| Adjustments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	(28)
Total current assets	(28)
Total assets	(28)
Other current liabilities	348
Deferred revenue	(6,655)		$ 11,200
Total current liabilities	(6,307)
Deferred revenue, non-current	(3,890)
Retained earnings	10,169		$ (10,400)
Altisource equity	10,169
Total equity	10,169
Total liabilities and equity	(28)
Revenue	412
Cost of revenue	797
Gross profit	(385)
Income from operations	(385)
Loss before income taxes and non-controlling interests	(385)
Income tax benefit	106
Net loss	(279)
Net loss attributable to Altisource	$ (279)

CUSTOMER CONCENTRATION (Details) - USD ($) $ in Millions	3 Months Ended
CUSTOMER CONCENTRATION (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jun. 30, 2017
Ocwen
Concentration Risk
Accounts receivable	$ 18.4		$ 18.9
Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	52.00%	59.00%
Revenue	$ 102.0	$ 141.4
Highly Correlated - Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	8.00%
Revenue	$ 15.2	41.7
NRZ \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Revenue	$ 10.3	0.0
Estimated percentage of revenue from largest customer	48.00%
Highly Correlated - NRZ \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Revenue	$ 16.1	$ 0.0
Billed \| Ocwen
Concentration Risk
Accounts receivable	13.4		13.6
Unbilled \| Ocwen
Concentration Risk
Accounts receivable	$ 5.0		$ 5.3
Mortgage Market \| Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	60.00%	68.00%
Real Estate Market \| Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	1.00%	1.00%
Other Businesses, Corporate and Eliminations \| Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	9.00%	14.00%
NRZ \| Ocwen
Concentration Risk
Non-government-sponsored enterprise servicing rights (approximate)				78.00%

INVESTMENT IN EQUITY SECURITIES (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Number of investment shares acquired (in shares)			4.1
Purchase of investment securities			$ 48,200
Investment in equity securities	$ 41,652			$ 49,153	$ 49,200
Unrealized loss on investment in equity securities	(7,501)	$ 0
Unrealized gain on investment in equity securities, net of income tax provision		12,723
Investment income, dividend	$ 600	$ 600

ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable, net
Accounts receivable, gross	$ 61,740	$ 63,319
Less: Allowance for doubtful accounts	(10,901)	(10,579)
Total	50,839	52,740
Billed
Accounts receivable, net
Accounts receivable, gross	42,509	40,787
Unbilled
Accounts receivable, net
Accounts receivable, gross	$ 19,231	$ 22,532

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Short-term investments in real estate	$ 39,320	$ 29,405
Maintenance agreements, current portion	6,362	8,014
Income taxes receivable	9,702	9,227
Prepaid expenses	7,748	7,898
Other current assets	10,823	10,198
Total	$ 73,955	$ 64,742

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 237,279		$ 236,464
Less: Accumulated depreciation and amortization	(171,694)		(163,191)
Total	65,585		73,273
Depreciation and amortization expense	8,721	$ 10,008
Computer hardware and software
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	180,488		179,567
Leasehold improvements
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	33,202		33,417
Furniture and fixtures
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	14,015		14,092
Office equipment and other
PREMISES AND EQUIPMENT, NET
Premises and equipment, gross	$ 9,574		$ 9,388

GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Goodwill	$ 86,283	$ 86,283
Mortgage Market
Goodwill [Roll Forward]
Goodwill	73,259	73,259
Real Estate Market
Goodwill [Roll Forward]
Goodwill	10,056	10,056
Other Businesses, Corporate and Eliminations
Goodwill [Roll Forward]
Goodwill	$ 2,968	$ 2,968

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible assets, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Intangible Assets, Net
Gross carrying amount	$ 333,787		$ 333,787
Accumulated amortization	(220,869)		(213,722)
Net book value	112,918		120,065
Amortization expense for definite lived intangible assets	7,147	$ 9,146
2018	26,400
2019	21,800
2020	18,200
2021	11,400
2022	7,300
Customer related intangible assets
Intangible Assets, Net
Gross carrying amount	277,828		277,828
Accumulated amortization	(194,470)		(188,258)
Net book value	83,358		89,570
Operating agreement
Intangible Assets, Net
Gross carrying amount	35,000		35,000
Accumulated amortization	(14,307)		(13,865)
Net book value	20,693		21,135
Trademarks and trade names
Intangible Assets, Net
Gross carrying amount	15,354		15,354
Accumulated amortization	(9,080)		(8,881)
Net book value	6,274		6,473
Non-compete agreements
Intangible Assets, Net
Gross carrying amount	1,560		1,560
Accumulated amortization	(995)		(897)
Net book value	565		663
Intellectual property
Intangible Assets, Net
Gross carrying amount	300		300
Accumulated amortization	(123)		(115)
Net book value	177		185
Other intangible assets
Intangible Assets, Net
Gross carrying amount	3,745		3,745
Accumulated amortization	(1,894)		(1,706)
Net book value	$ 1,851		$ 2,039
Weighted Average \| Customer related intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)	10 years
Weighted Average \| Operating agreement
Intangible Assets, Net
Weighted average estimated useful life (in years)	20 years
Weighted Average \| Trademarks and trade names
Intangible Assets, Net
Weighted average estimated useful life (in years)	13 years
Weighted Average \| Non-compete agreements
Intangible Assets, Net
Weighted average estimated useful life (in years)	4 years
Weighted Average \| Intellectual property
Intangible Assets, Net
Weighted average estimated useful life (in years)	10 years
Weighted Average \| Other intangible assets
Intangible Assets, Net
Weighted average estimated useful life (in years)	5 years

OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits	$ 5,150	$ 5,304
Restricted cash	4,135	3,837	$ 4,100	$ 4,100
Maintenance agreements, non-current portion	189	362
Other	538	692
Total	$ 10,012	$ 10,195

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accounts payable	$ 11,324	$ 15,682
Accrued expenses - general	30,628	27,268
Accrued salaries and benefits	24,523	41,363
Income taxes payable	0	87
Total	$ 66,475	$ 84,400

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other current liabilities
Unfunded cash account balances	$ 3,597	$ 5,900
Other	3,054	3,514
Total	$ 6,651	$ 9,414

LONG-TERM DEBT (Details)			3 Months Ended
LONG-TERM DEBT (Details)	Apr. 03, 2018 USD ($)	Aug. 01, 2014 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	May 07, 2013 USD ($)
Debt
Senior secured term loan			$ 412,095,000	$ 413,581,000
Less: Debt issuance costs, net			(3,381,000)	(3,158,000)
Less: Unamortized discount, net			(1,053,000)	(1,142,000)
Net long-term debt			407,661,000	409,281,000
Less: Current portion			(5,945,000)	(5,945,000)
Long-term debt, less current portion			401,716,000	403,336,000
Debt issuance costs, net			3,381,000	3,158,000
Senior secured term loan
Debt
Less: Debt issuance costs, net			(3,400,000)	(3,200,000)
Debt instrument accordion feature increase in additional borrowings					$ 200,000,000.0
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)			5.38%
Debt issuance costs, net			$ 3,400,000	3,200,000
Accumulated amortization			$ 7,400,000	$ 7,100,000
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			$ 40,000,000.000
Amount of debt which results in acceleration of debt if failed to pay considered as event of default			40,000,000.000
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			$ 40,000,000.000
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
Interest rate margin (as a percent)			3.50%
Senior secured term loan \| Base Rate
Debt
Reference rate			Base Rate
Interest rate margin (as a percent)			2.50%
April 3, 2018 Credit Agreement \| Subsequent Event
Debt
Debt instrument accordion feature increase in additional borrowings	$ 125,000,000
April 3, 2018 Credit Agreement \| Subsequent Event \| Term B loans
Debt
Debt instrument, face amount	$ 412,000,000
April 3, 2018 Credit Agreement \| Subsequent Event \| Term B loans \| Maximum
Debt
Leverage ratio to be maintained under the credit facility covenants	3.50
April 3, 2018 Credit Agreement \| Subsequent Event \| Term B loans \| Minimum
Debt
Leverage ratio to be maintained under the credit facility covenants	1.00
April 3, 2018 Credit Agreement \| Subsequent Event \| Term B loans \| Adjusted Eurodollar Rate
Debt
Reference rate	Adjusted Eurodollar Rate
Interest rate margin (as a percent)	4.00%
April 3, 2018 Credit Agreement \| Subsequent Event \| Term B loans \| Base Rate
Debt
Reference rate	Base Rate
Interest rate margin (as a percent)	3.00%
April 3, 2018 Credit Agreement \| Subsequent Event \| Revolving credit facility
Debt
Debt instrument accordion feature increase in additional borrowings	$ 80,000,000
Debt instrument, face amount	$ 15,000,000
April 3, 2018 Credit Agreement \| Subsequent Event \| Revolving credit facility \| Adjusted Eurodollar Rate
Debt
Reference rate	Eurodollar Rate
Interest rate margin (as a percent)	4.00%
April 3, 2018 Credit Agreement \| Subsequent Event \| Revolving credit facility \| Base Rate
Debt
Reference rate	Base Rate
Interest rate margin (as a percent)	3.00%

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Income tax liabilities	$ 5,825	$ 5,955
Deferred revenue	5,529	2,101
Other non-current liabilities	4,061	4,226
Total	$ 15,415	$ 12,282

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Assets, Fair Value Disclosure
Cash and cash equivalents	$ 84,850	$ 105,006
Restricted cash	4,135	3,837		$ 4,100	$ 4,100
Investment in equity securities	41,652	49,153	$ 49,200
Liabilities, Fair Value Disclosure
Long-term debt, carrying amount	412,095	413,581
Level 1 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	84,850	105,006
Restricted cash	4,135	3,837
Investment in equity securities	41,652	49,153
Liabilities, Fair Value Disclosure
Long-term debt, fair value	0	0
Level 2 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	0	0
Restricted cash	0	0
Investment in equity securities	0	0
Liabilities, Fair Value Disclosure
Long-term debt, fair value	412,095	407,377
Level 3 \| Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure
Cash and cash equivalents	0	0
Restricted cash	0	0
Investment in equity securities	0	0
Liabilities, Fair Value Disclosure
Long-term debt, fair value	$ 0	$ 0

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Stock Repurchase Plan & Share-Based Compensation (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	May 18, 2016 $ / shares shares	Mar. 31, 2018 USD ($) component $ / shares shares	Mar. 31, 2017 USD ($) $ / shares shares	Jan. 01, 2018 USD ($)	Dec. 31, 2017 shares	Jan. 01, 2017 USD ($)
Stock Repurchase Plan
Capacity available to repurchase common stock under senior secured term loan (in dollars)		$ 464,000
Share-Based Compensation
Share-based compensation expense (in dollars)		2,200	$ 700
Estimated unrecognized compensation costs (in dollars)		$ 16,900
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized		2 years 3 months 11 days
Cumulative effect of accounting changes						$ 0
Outstanding (in shares) \| shares		1,623,617			1,745,906
Stock options granted (in shares) \| shares		260,697	0
Weighted average exercise price of stock options granted (in usd per share) \| $ / shares		$ 24.95
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised
Weighted average grant date fair value of stock options granted per share (in usd per share) \| $ / shares		$ 16.20	$ 0.00
Intrinsic value of options exercised		$ 4,320	$ 868
Grant date fair value of stock options that vested		$ 23	$ 89
Minimum
Share-Based Compensation
Share based compensation arrangement, estimated forfeiture rate		0.00%
Maximum
Share-Based Compensation
Share based compensation arrangement, estimated forfeiture rate		40.00%
Employee and non employee stock options \| Service-Based
Share-Based Compensation
Outstanding (in shares) \| shares		611,000
Employee and non employee stock options \| Service-Based \| Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period		3 years
Employee and non employee stock options \| Service-Based \| Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period		4 years
Expiration term		10 years
Employee and non employee stock options \| Market-Based
Share-Based Compensation
Outstanding (in shares) \| shares		707,000
Allowable performance period before expiration date		3 years
Number of components of an award \| component		2
Employee and non employee stock options \| Market-Based \| Minimum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period		3 years
Expiration term		10 years
Employee and non employee stock options \| Market-Based \| Maximum
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting period		4 years
Employee and non employee stock options \| Market-Based, ordinary performance \| Minimum
Share-Based Compensation
Percentage of compounded annual gain of stock price over exercise price required for the award to vest		20.00%
Employee and non employee stock options \| Market-Based, extraordinary performance \| Minimum
Share-Based Compensation
Percentage of compounded annual gain of stock price over exercise price required for the award to vest		25.00%
Employee and non employee stock options \| Performance-Based
Share-Based Compensation
Outstanding (in shares) \| shares		306,000
Employee and non employee stock options \| Performance-Based \| Minimum
Share-Based Compensation
Allowable performance period before expiration date		10 years
Attainment above threshold performance levels, vesting percentage		50.00%
Employee and non employee stock options \| Performance-Based \| Maximum
Share-Based Compensation
Attainment above threshold performance levels, vesting percentage		200.00%
Employee and non employee stock options \| Performance-Based, Vesting Period One
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage		25.00%
Employee and non employee stock options \| Performance-Based, Vesting Period Two
Share-Based Compensation
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage		25.00%
Share Repurchase Program, Current
Stock Repurchase Plan
Number of shares of common stock authorized to be purchased (in shares) \| shares	4,600,000.0
Percentage of outstanding shares authorized to be repurchased	25.00%
Minimum purchase price authorized (in usd per share) \| $ / shares	$ 1.00
Maximum purchase price authorized (in usd per share) \| $ / shares	$ 500.00
Period that shares may be repurchased, from the date of approval	5 years
Remaining number of shares available for repurchase under the plan (in shares) \| shares		3,100,000
Share Repurchase Programs
Stock Repurchase Plan
Number of shares of common stock purchased (in shares) \| shares		400,000	400,000
Average purchase price per share (in usd per share) \| $ / shares		$ 27.67	$ 25.10
Luxembourg Law Limitation
Stock Repurchase Plan
Capacity available to repurchase common stock under senior secured term loan (in dollars)		$ 141,000
Retained earnings
Share-Based Compensation
Cumulative effect of accounting changes				$ (9,715)
Retained earnings \| Accounting Standards Update 2016-09
Share-Based Compensation
Cumulative effect of accounting changes						$ (932)

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Black-Scholes and Binomial model Assumptions and Summary of Activity related to our stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Number of options
Outstanding at the beginning of the period (in shares)	1,745,906
Granted (in shares)	260,697	0
Exercised (in shares)	(286,252)
Forfeited (in shares)	(96,734)
Outstanding at the end of the period (in shares)	1,623,617		1,745,906
Exercisable at the end of the period (in shares)	841,472
Weighted average exercise price
Outstanding at the beginning of the period (in usd per share)	$ 28.20
Weighted average exercise price of stock options granted (in usd per share)	24.95
Exercised (in usd per share)	9.14
Forfeited (in usd per share)	36.35
Outstanding at the end of the period (in usd per share)	30.55		$ 28.20
Exercisable at the end of the period (in usd per share)	$ 27.81
Weighted average contractual term
Weighted average contractual term	6 years 1 month 2 days		4 years 11 months 16 days
Exercisable at the end of the period	3 years 11 months 12 days
Aggregate intrinsic value
Aggregate intrinsic value, beginning balance (in dollars)	$ 10,202
Aggregate intrinsic value, ending balance (in dollars)	3,999		$ 10,202
Exercisable at the end of the period (in dollars)	$ 2,817
Black Scholes \| Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	2.66%
Expected stock price volatility (%)	70.31%
Expected dividend yield	0.00%
Expected option life (in years)	6 years
Fair value (in usd per share)	$ 16.17
Black Scholes \| Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	2.70%
Expected stock price volatility (%)	71.81%
Expected dividend yield	0.00%
Expected option life (in years)	6 years 3 months
Fair value (in usd per share)	$ 17.15
Binomial \| Minimum
Aggregate intrinsic value
Risk-free interest rate (%)	1.65%
Expected stock price volatility (%)	71.81%
Expected dividend yield	0.00%
Expected option life (in years)	2 years 6 months 22 days
Fair value (in usd per share)	$ 15.58
Binomial \| Maximum
Aggregate intrinsic value
Risk-free interest rate (%)	2.77%
Expected stock price volatility (%)	71.81%
Expected dividend yield	0.00%
Expected option life (in years)	4 years 3 months 26 days
Fair value (in usd per share)	$ 18.28

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION RSU (Details)	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value \| $ / shares	$ 24.54
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares and restricted share units outstanding, beginning of period (in shares)	356,509
Restricted shares and restricted share units granted (in shares)	254,619
Restricted shares and restricted share units forfeited/canceled (in shares)	(43,697)
Restricted shares and restricted share units outstanding, end of period (in shares)	567,431
Service-Based \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, alternate award vesting period	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares and restricted share units outstanding, end of period (in shares)	565,000
Service-Based \| Minimum \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	3 years
Service-Based \| Minimum \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	1 year
Service-Based \| Maximum \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	4 years
Service-Based \| Maximum \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	4 years
Performance-Based \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted shares and restricted share units outstanding, end of period (in shares)	2,000
Performance-Based \| Minimum \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	50.00%
Performance-Based \| Minimum \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	80.00%
Performance-Based \| Maximum \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	200.00%
Performance-Based \| Maximum \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Attainment above threshold performance levels, vesting percentage	150.00%
Performance-Based, Vesting Period One \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	25.00%
Performance-Based, Vesting Period One \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	33.00%
Performance-Based, Vesting Period Two \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	25.00%
Performance-Based, Vesting Period Two \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	33.00%
Performance-Based, Vesting Period Three \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	25.00%
Performance-Based, Vesting Period Three \| Restricted Stock
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	33.00%
Performance-Based, Vesting Period Four \| Employee and non employee stock options
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage	25.00%

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Schedule of revenue [Line Items]
Revenue	$ 197,438	$ 240,483
Revenue recognized that was included in contract liability at the beginning of the period	5,900
Service revenue
Schedule of revenue [Line Items]
Revenue	188,766	229,839
Reimbursable expenses
Schedule of revenue [Line Items]
Revenue	8,147	10,029
Non-controlling interests
Schedule of revenue [Line Items]
Revenue	$ 525	$ 615

COST OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
COST OF REVENUE (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Cost of Revenue [Abstract]
Compensation and benefits	$ 54,866	$ 63,092
Outside fees and services	65,098	80,959
Cost of real estate sold	3,179	4,935
Technology and telecommunications	9,451	11,351
Reimbursable expenses	8,147	10,029
Depreciation and amortization	6,453	7,587
Cost of revenue	$ 147,194	$ 177,953

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Selling, General and Administrative Expense [Abstract]
Compensation and benefits	$ 13,569	$ 12,506
Occupancy related costs	8,434	10,273
Amortization of intangible assets	7,147	9,146
Marketing costs	3,607	4,269
Professional services	3,226	3,730
Depreciation and amortization	2,268	2,421
Other	4,873	5,356
Total	$ 43,124	$ 47,701

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Interest income	$ 131	$ 98
Other, net	1,141	617
Total	$ 1,272	$ 715

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net (loss) income attributable to Altisource	$ (4,132)	$ 6,545
Weighted average common shares outstanding, basic (in shares)	17,378	18,662
Dilutive effect of stock options (in shares)	0	642
Weighted average common shares outstanding, diluted (in shares)	17,378	19,304
(Loss) earnings per share:
Basic (in usd per share)	$ (0.24)	$ 0.35
Diluted (in usd per share)	$ (0.24)	$ 0.34
Employee and non employee stock options
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	300	400
Options, restricted shares and restricted share units issuable upon achievement of market and performance criteria
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	600	200
Options, restricted shares and restricted share units excluded due to net loss [Member]
Anti-dilutive securities
Options excluded from the computation of diluted EPS (in shares)	500

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jun. 30, 2017
Concentration Risk
Revenue	$ 197,438	$ 240,483
Escrow and Trust Balances
Amounts held in escrow and trust accounts	$ 24,600		$ 35,100
Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	52.00%	59.00%
Highly Correlated - Ocwen \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Percentage of revenue from largest customer	8.00%
NRZ \| Customer Concentration Risk \| Revenue, Segment
Concentration Risk
Estimated percentage of revenue from largest customer	48.00%
Service revenue
Concentration Risk
Revenue	$ 188,766	$ 229,839
REALServicing \| Service revenue \| Ocwen
Concentration Risk
Revenue	$ 6,500	$ 7,000
NRZ \| Ocwen
Concentration Risk
Non-government-sponsored enterprise servicing rights (approximate)				78.00%

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Mar. 31, 2018 USD ($) segment	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting [Abstract]
Number of reporting segments \| segment	2
SEGMENT REPORTING
Revenue	$ 197,438	$ 240,483
Cost of revenue	147,194	177,953
Gross profit (loss)	50,244	62,530
Selling, general and administrative expenses	43,124	47,701
Income (loss) from operations	7,120	14,829
Total other income (expense), net	(12,092)	(5,083)
Income (loss) before income taxes and non-controlling interests	(4,972)	9,746
Total assets:
Total assets	831,773		$ 865,164
Operating Segment \| Mortgage Market
SEGMENT REPORTING
Revenue	167,338	204,723
Cost of revenue	111,073	140,150
Gross profit (loss)	56,265	64,573
Selling, general and administrative expenses	23,374	28,682
Income (loss) from operations	32,891	35,891
Total other income (expense), net	16	10
Income (loss) before income taxes and non-controlling interests	32,907	35,901
Total assets:
Total assets	285,989		304,346
Operating Segment \| Real Estate Market
SEGMENT REPORTING
Revenue	15,280	20,063
Cost of revenue	18,554	22,143
Gross profit (loss)	(3,274)	(2,080)
Selling, general and administrative expenses	4,118	4,325
Income (loss) from operations	(7,392)	(6,405)
Total other income (expense), net	2	0
Income (loss) before income taxes and non-controlling interests	(7,390)	(6,405)
Total assets:
Total assets	82,574		64,624
Other Businesses, Corporate and Eliminations
SEGMENT REPORTING
Revenue	14,820	15,697
Cost of revenue	17,567	15,660
Gross profit (loss)	(2,747)	37
Selling, general and administrative expenses	15,632	14,694
Income (loss) from operations	(18,379)	(14,657)
Total other income (expense), net	(12,110)	(5,093)
Income (loss) before income taxes and non-controlling interests	(30,489)	$ (19,750)
Total assets:
Total assets	$ 463,210		$ 496,194

PREMISES AND EQUIPMENT, NET per country (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Premises & equipment, net
Premises and equipment, net	$ 65,585	$ 73,273
United States
Premises & equipment, net
Premises and equipment, net	40,068	46,268
Luxembourg
Premises & equipment, net
Premises and equipment, net	16,686	16,688
India
Premises & equipment, net
Premises and equipment, net	6,797	8,136
Philippines
Premises & equipment, net
Premises and equipment, net	1,916	2,038
Uruguay
Premises & equipment, net
Premises and equipment, net	$ 118	$ 143

SUBSEQUENT EVENT SUBSEQUENT EVENT (Details)		3 Months Ended
SUBSEQUENT EVENT SUBSEQUENT EVENT (Details)	Apr. 03, 2018 USD ($)	Mar. 31, 2018	May 07, 2013 USD ($)
Senior secured term loan
Subsequent Event [Line Items]
Debt instrument, maturity date		December 2020
Debt instrument incremental increase in additional borrowings			$ 200,000,000.0
Adjusted Eurodollar Rate \| Senior secured term loan
Subsequent Event [Line Items]
Reference rate		Adjusted Eurodollar Rate
Fixed interest rate base (as a percent)		1.00%
Interest rate margin (as a percent)		3.50%
Base Rate \| Senior secured term loan
Subsequent Event [Line Items]
Reference rate		Base Rate
Fixed interest rate base (as a percent)		2.00%
Interest rate margin (as a percent)		2.50%
Maximum \| Senior secured term loan
Subsequent Event [Line Items]
Leverage ratio to be maintained under the credit facility covenants		3.0
Minimum \| Senior secured term loan
Subsequent Event [Line Items]
Leverage ratio to be maintained under the credit facility covenants		1.00
Subsequent Event \| Senior secured term loan
Subsequent Event [Line Items]
Annual principal payment	$ 5,900,000
Subsequent Event \| April 3, 2018 Credit Agreement
Subsequent Event [Line Items]
Net debt, reduction by marketable securities	75,000,000
Debt instrument incremental increase in additional borrowings	125,000,000
Subsequent Event \| April 3, 2018 Credit Agreement \| Revolving credit facility
Subsequent Event [Line Items]
Debt instrument, face amount	15,000,000
Debt instrument incremental increase in additional borrowings	80,000,000
Subsequent Event \| April 3, 2018 Credit Agreement \| Term B loans
Subsequent Event [Line Items]
Debt instrument, face amount	$ 412,000,000
Debt instrument, maturity date	April 2024
Term loan amortization, year one	$ 41,200,000
Term loan amortization, year two	41,200,000
Term loan amortization, subsequent to year two	12,400,000
Calendar year asset sales, mandatory repayments	$ 25,000,000
Subsequent Event \| April 3, 2018 Credit Agreement \| Adjusted Eurodollar Rate \| Revolving credit facility
Subsequent Event [Line Items]
Reference rate	Eurodollar Rate
Interest rate margin (as a percent)	4.00%
Subsequent Event \| April 3, 2018 Credit Agreement \| Adjusted Eurodollar Rate \| Term B loans
Subsequent Event [Line Items]
Reference rate	Adjusted Eurodollar Rate
Fixed interest rate base (as a percent)	1.00%
Interest rate margin (as a percent)	4.00%
Subsequent Event \| April 3, 2018 Credit Agreement \| Base Rate \| Revolving credit facility
Subsequent Event [Line Items]
Reference rate	Base Rate
Interest rate margin (as a percent)	3.00%
Subsequent Event \| April 3, 2018 Credit Agreement \| Base Rate \| Term B loans
Subsequent Event [Line Items]
Reference rate	Base Rate
Fixed interest rate base (as a percent)	2.00%
Interest rate margin (as a percent)	3.00%
Subsequent Event \| April 3, 2018 Credit Agreement \| Maximum \| Term B loans
Subsequent Event [Line Items]
Leverage ratio to be maintained under the credit facility covenants	3.50
Subsequent Event \| April 3, 2018 Credit Agreement \| Minimum \| Term B loans
Subsequent Event [Line Items]
Leverage ratio to be maintained under the credit facility covenants	1.00

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) shares in Millions	Mar. 31, 2018 shares
RESI
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment in equity securities, number of shares	4.1

Label	Element	Value
Accounting Standards Update 2016-09 [Member] \| Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 932,000

REVENUE REVENUE - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 197,438	$ 240,483
Revenue recognized when services are performed or assets are sold
Disaggregation of Revenue [Line Items]
Revenue	166,956
Revenue related to technology platforms and professional services
Disaggregation of Revenue [Line Items]
Revenue	22,335
Reimbursable expenses revenue
Disaggregation of Revenue [Line Items]
Revenue	8,147	10,029
Operating Segment \| Mortgage Market
Disaggregation of Revenue [Line Items]
Revenue	167,338	204,723
Operating Segment \| Mortgage Market \| Servicer Solutions
Disaggregation of Revenue [Line Items]
Revenue	155,411
Operating Segment \| Mortgage Market \| Origination Solutions
Disaggregation of Revenue [Line Items]
Revenue	11,927
Operating Segment \| Mortgage Market \| Revenue recognized when services are performed or assets are sold
Disaggregation of Revenue [Line Items]
Revenue	138,721
Operating Segment \| Mortgage Market \| Revenue recognized when services are performed or assets are sold \| Servicer Solutions
Disaggregation of Revenue [Line Items]
Revenue	129,536
Operating Segment \| Mortgage Market \| Revenue recognized when services are performed or assets are sold \| Origination Solutions
Disaggregation of Revenue [Line Items]
Revenue	9,185
Operating Segment \| Mortgage Market \| Revenue related to technology platforms and professional services
Disaggregation of Revenue [Line Items]
Revenue	20,959
Operating Segment \| Mortgage Market \| Revenue related to technology platforms and professional services \| Servicer Solutions
Disaggregation of Revenue [Line Items]
Revenue	18,273
Operating Segment \| Mortgage Market \| Revenue related to technology platforms and professional services \| Origination Solutions
Disaggregation of Revenue [Line Items]
Revenue	2,686
Operating Segment \| Mortgage Market \| Reimbursable expenses revenue
Disaggregation of Revenue [Line Items]
Revenue	7,658
Operating Segment \| Mortgage Market \| Reimbursable expenses revenue \| Servicer Solutions
Disaggregation of Revenue [Line Items]
Revenue	7,602
Operating Segment \| Mortgage Market \| Reimbursable expenses revenue \| Origination Solutions
Disaggregation of Revenue [Line Items]
Revenue	56
Operating Segment \| Real Estate Market
Disaggregation of Revenue [Line Items]
Revenue	15,280	20,063
Operating Segment \| Real Estate Market \| Consumer Real Estate Solutions
Disaggregation of Revenue [Line Items]
Revenue	1,407
Operating Segment \| Real Estate Market \| Real Estate Investor Solutions
Disaggregation of Revenue [Line Items]
Revenue	13,873
Operating Segment \| Real Estate Market \| Revenue recognized when services are performed or assets are sold
Disaggregation of Revenue [Line Items]
Revenue	14,803
Operating Segment \| Real Estate Market \| Revenue recognized when services are performed or assets are sold \| Consumer Real Estate Solutions
Disaggregation of Revenue [Line Items]
Revenue	1,405
Operating Segment \| Real Estate Market \| Revenue recognized when services are performed or assets are sold \| Real Estate Investor Solutions
Disaggregation of Revenue [Line Items]
Revenue	13,398
Operating Segment \| Real Estate Market \| Revenue related to technology platforms and professional services
Disaggregation of Revenue [Line Items]
Revenue	0
Operating Segment \| Real Estate Market \| Revenue related to technology platforms and professional services \| Consumer Real Estate Solutions
Disaggregation of Revenue [Line Items]
Revenue	0
Operating Segment \| Real Estate Market \| Revenue related to technology platforms and professional services \| Real Estate Investor Solutions
Disaggregation of Revenue [Line Items]
Revenue	0
Operating Segment \| Real Estate Market \| Reimbursable expenses revenue
Disaggregation of Revenue [Line Items]
Revenue	477
Operating Segment \| Real Estate Market \| Reimbursable expenses revenue \| Consumer Real Estate Solutions
Disaggregation of Revenue [Line Items]
Revenue	2
Operating Segment \| Real Estate Market \| Reimbursable expenses revenue \| Real Estate Investor Solutions
Disaggregation of Revenue [Line Items]
Revenue	475
Other Businesses, Corporate and Eliminations
Disaggregation of Revenue [Line Items]
Revenue	14,820	$ 15,697
Other Businesses, Corporate and Eliminations \| Revenue recognized when services are performed or assets are sold
Disaggregation of Revenue [Line Items]
Revenue	13,432
Other Businesses, Corporate and Eliminations \| Revenue related to technology platforms and professional services
Disaggregation of Revenue [Line Items]
Revenue	1,376
Other Businesses, Corporate and Eliminations \| Reimbursable expenses revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 12