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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	Altisource Portfolio Solutions S.A.
Entity Central Index Key	0001462418
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 662,418,290
Entity Common Stock, Shares Outstanding		23,405,123

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current Assets:
Cash and Cash Equivalents	$ 32,125	$ 22,134
Accounts Receivable, net	52,005	53,495
Prepaid Expenses and Other Current Assets	5,002	13,076
Deferred Tax Asset, net	1,133	551
Total Current Assets	90,265	89,256
Restricted Cash	158	1,045
Premises and Equipment, net	25,600	17,493
Deferred Tax Asset, net	4,373	1,206
Intangible Assets, net	64,950	72,428
Goodwill	14,915	11,836
Investment in Equity Affiliate	14,470	0
Other Non-current Assets	9,428	4,536
Total Assets	224,159	197,800
Current Liabilities:
Accounts Payable and Accrued Expenses	44,867	35,384
Capital Lease Obligations-Current	634	680
Other Current Liabilities	9,939	5,616
Total Current Liabilities	55,440	41,680
Capital Lease Obligations-Non-current	202	852
Other Non-current Liabilities	2,574	3,370
Commitment and Contingencies
Equity:
Common Stock ($1.00 par value; 100,000 shares authorized; 25,413 shares issued and 23,405 outstanding in 2011; 25,413 shares issued and 24,881 outstanding in 2010)	25,413	25,413
Retained Earnings	126,161	58,546
Additional Paid-in-Capital	83,229	79,297
Treasury Stock, at cost ($1.00 par value; 2,008 and 532 shares in 2011 and 2010, respectively)	(72,048)	(14,418)
Altisource Equity	162,755	148,838
Non-controlling Interests	3,188	3,060
Total Equity	165,943	151,898
Total Liabilities and Equity	$ 224,159	$ 197,800

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Common Stock, par value	$ 1.00	$ 1.00
Common Stock, shares authorized	100,000	100,000
Common Stock, shares issued	25,413	25,413
Common Stock, shares outstanding	23,405	24,881
Treasury stock, par value	$ 1.00	$ 1.00
Treasury stock, shares	2,008	532

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Operations [Abstract]
Revenue	$ 423,687	$ 301,378	$ 202,812
Cost of Revenue	275,849	189,059	126,797
Gross Profit	147,838	112,319	76,015
Selling, General and Administrative Expenses	62,131	57,352	39,473
Income from Operations	85,707	54,967	36,542
Other Income (Expense), net	203	804	1,034
Income Before Income Taxes and Non-controlling Interests	85,910	55,771	37,576
Income Tax Benefit (Provision)	(7,943)	403	(11,605)
Net Income	77,967	56,174	25,971
Net Income Attributable to Non-controlling Interests	(6,855)	(6,903)
Net Income Attributable to Altisource	$ 71,112	$ 49,271	$ 25,971
Earnings Per Share:
Basic	$ 2.92	$ 1.96	$ 1.08
Diluted	$ 2.77	$ 1.88	$ 1.07
Weighted Average Shares Outstanding:
Basic	24,373	25,083	24,062
Diluted	25,685	26,259	24,261
Transactions with Related Parties Included Above:
Revenue	$ 245,262	$ 154,988	$ 94,897
Selling, General and Administrative Expenses	$ 1,893	$ 1,056	4,308
Interest Expense			$ 1,290

Consolidated Statements of Changes in Stockholders' and Invested Equity - USD ($) shares in Thousands, $ in Thousands	Total	Invested Equity	Common Stock	Retained Earnings	Additional Paid-in Capital	Treasury Stock, at cost	Non-controlling Interests	Comprehensive Income
Balance at Dec. 31, 2008	$ 60,546	$ 54,487	$ 6,059	$ 0	$ 0	$ 0	$ 0
Balance, shares at Dec. 31, 2008			263
Share Issuance due to Conversion to a Luxembourg Societe Anonyme		(3,283)	$ 3,283
Share Issuance due to Conversion to a Luxembourg Societe Anonyme, shares			9,079
Net Income for Pre-separation Period	14,306	14,306						$ 14,306
Net Transfers to Ocwen	(1,354)	(1,354)
Consummation of Spin-off Transaction and Distribution to Common Stock		(64,156)	$ 14,732		49,424
Consummation of Spin-off Transaction and Distribution to Common Stock, shares			14,732
Net Income	25,971
Share-Based Compensation Expense	296				296
Exercise of Stock Options	889		$ 71		818
Exercise of Stock Options, shares			71
Net Income for Post-separation Period	11,665			11,665				11,665
Balance at Dec. 31, 2009	86,348	0	$ 24,145	11,665	50,538	0	0	25,971
Balance, shares at Dec. 31, 2009			24,145
Net Income	56,174			49,271			6,903	56,174
Acquisition of MPA	27,168		$ 959		22,941		3,268
Acquisition of MPA, shares			959
Contributions from Non-controlling Interest Holders	41						41
Distributions to Non-controlling Interest Holders	(7,152)						(7,152)
Share-Based Compensation Expense	3,110				3,110
Exercise of Stock Options	3,986		$ 298	(2,390)	2,708	3,370
Exercise of Stock Options, shares			298
Delivery of Vested Restricted Stock	11		$ 11
Delivery of Vested Restricted Stock, shares			11
Repurchase of Shares	(17,788)					(17,788)
Balance at Dec. 31, 2010	151,898	0	$ 25,413	58,546	79,297	(14,418)	3,060	56,174
Balance, shares at Dec. 31, 2010			25,413
Net Income	77,967			71,112			6,855	77,967
Contributions from Non-controlling Interest Holders	49						49
Distributions to Non-controlling Interest Holders	(6,776)						(6,776)
Share-Based Compensation Expense	3,932				3,932
Exercise of Stock Options	1,024			(3,497)		4,521
Repurchase of Shares	(62,151)					(62,151)
Balance at Dec. 31, 2011	$ 165,943	$ 0	$ 25,413	$ 126,161	$ 83,229	$ (72,048)	$ 3,188	$ 77,967
Balance, shares at Dec. 31, 2011			25,413

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash Flows from Operating Activities:
Net Income	$ 77,967	$ 56,174	$ 25,971
Reconciling Items:
Depreciation and Amortization	8,351	7,158	5,432
Amortization of Intangible Assets	5,291	4,891	2,672
Goodwill Impairment		2,816
Share-based Compensation Expense	3,932	3,110	296
Equity in Losses of Affiliate	530
Bad Debt Expense	967	1,534
Deferred Income Taxes	(381)	(1,119)	(1,179)
Changes in Operating Assets and Liabilities, net of Acquisitions:
Accounts Receivable	812	(18,259)	(21,420)
Prepaid Expenses and Other Current Assets	747	(9,851)	117
Other Assets	(4,892)	(2,799)	(616)
Accounts Payable and Accrued Expenses	14,760	8,180	19,425
Other Current and Non-current Liabilities	3,527	977	2,586
Net Cash Flows from Operating Activities	111,611	52,812	33,284
Cash Flows from Investing Activities:
Additions to Premises and Equipment	(16,442)	(11,614)	(7,536)
Acquisition of Business, net of Cash Acquired	(2,515)	(26,830)
Investment in Equity Affiliate	(15,000)
Change in Restricted Cash	887	(1,045)
Net Cash Flows from Investing Activities	(33,070)	(39,489)	(7,536)
Cash Flows from Financing Activities:
Principal Payments on Capital Lease Obligations	(696)	(743)	(692)
Proceeds from Stock Option Exercises	1,024	3,997	889
Purchase of Treasury Stock	(62,151)	(17,788)
Contributions from Non-controlling Interests	49	41
Distributions to Non-controlling Interests	(6,776)	(7,152)
Net Distribution to Parent			(1,354)
Payments of Line of Credit			(1,123)
Net Cash Flows from Financing Activities	(68,550)	(21,645)	(2,280)
Net Increase (Decrease) in Cash and Cash Equivalents	9,991	(8,322)	23,468
Cash and Cash Equivalents at the Beginning of the Year	22,134	30,456	6,988
Cash and Cash Equivalents at the End of the Year	32,125	22,134	30,456
Supplemental Cash Flow Information
Interest Paid	83	108	25
Income Taxes (Received) Paid, net	(1,956)	6,069	795
Non-Cash Investing and Financing Activities
Shares issued in Connection with Acquisition		23,900
Reduction in Income Tax Payable from Tax Amortizable Goodwill	$ 3,367	$ 3,029	2,216
Increase in Common Stock due to the Company's Conversion to a Luxembourg Societe Anonyme			$ 3,283

Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2011

Organization and Basis of Presentation [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

Altisource Portfolio Solutions S.A., together with its subsidiaries, (which may be referred to as Altisource™, the Company, we, us or our) is a provider of services focused on high value, technology-enabled, knowledge-based functions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management. We were incorporated under the laws of Luxembourg on November 4, 1999 as Ocwen Luxembourg S.à r.l., renamed Altisource Portfolio Solutions S.à r.l. on May 12, 2009 and converted into Altisource Portfolio Solutions S.A. on June 5, 2009. We became a publicly traded company on the NASDAQ Global Select market under the symbol “ASPS” as of August 10, 2009, see “Separation” below.

In February 2010, we acquired all of the outstanding membership interests of The Mortgage Partnership of America, L.L.C. (“MPA™”). MPA was formed as a Missouri limited liability company to serve as the manager of Best Partners Mortgage Cooperative, Inc. (“BPMC™”) doing business as Lenders One Mortgage Cooperative (“Lenders One ^®”). Lenders One is a national alliance of independent mortgage bankers (“Members”) that provides its Members with education and training along with revenue enhancing, cost reducing and market share expanding opportunities. In April 2011, we acquired Springhouse, LLC (“Springhouse™”) an appraisal management company that utilizes a nationwide panel of appraisers to provide real estate appraisals principally to mortgage originators, including the members of Lenders One, and real estate asset managers. In July 2011, we acquired the assembled workforce of a sub-contractor (“Tracmail”) in India that performed asset recovery services (see Note 4).

We conduct our operations through three reporting segments: Mortgage Services, Financial Services and Technology Services. In addition, we report our corporate related expenditures as a separate segment (see Note 19 for a description of our business segments).

Separation – On August 10, 2009, we became a stand-alone public company in connection with our separation from Ocwen Financial Corporation (“Ocwen^®”) (the “Separation”). Prior to the Separation, our businesses were wholly-owned subsidiaries of Ocwen. On the date of Separation, Ocwen distributed all of the Altisource common stock to Ocwen’s shareholders (the “Distribution”).

In connection with the Separation, we entered into various agreements with Ocwen that define our relationship after the Separation including a Separation Agreement, a Tax Matters Agreement, an Employee Matters Agreement, an Intellectual Property Agreement, a Data Center and Disaster Recovery Agreement, a Technology Services Agreement, a Transition Services Agreement and certain long-term servicing contracts (collectively, the “Agreements”).

Basis of Presentation – Beginning August 10, 2009, after our assets and liabilities were formally contributed by Ocwen to Altisource pursuant to the terms of the Separation Agreement, our financial statements have been presented on a consolidated basis for financial reporting purposes. Our consolidated financial statements include the assets and liabilities, revenues and expenses directly attributable to our operations.

For periods prior to the date of Separation, these financial statements include allocations of expenses from Ocwen for corporate functions including insurance, employee benefit plan expense and allocations for certain centralized administration costs for executive management, treasury, real estate, accounting, auditing, tax, risk management, internal audit, human resources and benefits administration. For additional information, see Note 3.

The financial statements for the period ended December 31, 2009 also do not necessarily reflect what our consolidated results of operations, financial position and cash flows would have been had we operated as an independent company during the entire periods presented. For instance, as an independent public company, Altisource incurs costs for maintaining a separate Board of Directors, obtaining a separate audit, relocating certain executive management and hiring additional personnel.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

Prior to our acquisition of MPA, MPA and Lenders One entered into a management agreement that ends on December 31, 2025. MPA was formed to act on behalf of Lenders One and its Members principally to provide its Members with education and training along with revenue enhancing, cost reducing and market share expanding opportunities. For providing these services, MPA receives payment from Lenders One, and in some instances the vendors, based upon the benefits achieved for the Members. The management agreement provides MPA with broad powers such as recruiting members for Lenders One, collection of fees and other obligations from Members of Lenders One, processing of all rebates owed to Lenders One, day-to-day operation of Lenders One and negotiation of contracts with vendors including signing contracts on behalf of Lenders One.

The management agreement between MPA and Lenders One, pursuant to which MPA is the management company of Lenders One, represents a variable interest in a variable interest entity. MPA determined that it is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact Lenders One’s economic performance and the obligation to absorb losses or the right to receive benefits from Lenders One. As a result, Lenders One is presented in the accompanying consolidated financial statements on a consolidated basis with the interests of the Members reflected as Non-controlling Interest on the Consolidated Balance Sheets. At December 31, 2011, Lenders One had total assets of $5.2 million and liabilities of less than $0.1 million.

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

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

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

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

			September 30,
Furniture and Fixtures			5 years
Office Equipment			5 years
Computer Hardware and Software			2 –3 years
Leasehold Improvements			Shorter of useful life or term of lease

We record payments for maintenance and repairs as expenses when incurred. We record expenditures for significant improvements and new equipment as capital expenses and depreciate them over the shorter of the capitalized asset’s life or the life of the lease.

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

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

Business Combinations – We account for acquisitions using the purchase method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805. The purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date.

Investment in Equity Affiliate – We utilize the equity method to account for investments in equity securities where we have the ability to exercise significant influence over operating and financial policies of the investee. We include a proportionate share of earnings and/or losses of equity method investees in Equity Income (Loss) in Affiliates, net which is included in Other Income (Expense), net in the Consolidated Statements of Operations.

Goodwill – Goodwill represents the excess cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on estimated category expansion, pricing, market segment share and general economic conditions.

We conduct our annual impairment test as of November 30 of each year and determined no impairment of goodwill was required for the years ended December 31, 2011 and 2009 (in 2010, we recorded a $2.8 million impairment in our Financial Service segment).

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

We perform tests for impairment if conditions exist that indicate the carrying value may not be recoverable. When facts and circumstances indicate that the carrying value of Intangible Assets determined to have definite lives may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of cash flows of discrete intangible assets consistent with models utilized for internal planning purposes. If the sum of the undiscounted expected future cash flows is less than the carrying value, we would recognize an impairment to the extent carrying amount exceeds fair value. No impairment was recognized during the periods presented.

Fair Value of Financial Instruments – The fair value of financial instruments, which primarily include Cash and Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable and Accrued Expenses are carried at amounts that approximate their fair value due to the short-term nature of these amounts.

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

Defined Contribution 401(k) Plan – Some of our employees currently participate in a defined contribution 401(k) plan under which we may make matching contributions equal to a discretionary percentage determined by us. We recorded expense of $0.1 million, $0.2 million and $0.1 million in 2011, 2010 and 2009, respectively, related to our discretionary amounts contributed.

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

Earnings Per Share – We compute Earnings Per Share (“EPS”) in accordance with ASC Topic 260. Basic Net Income per Share is computed by dividing Net Income by the weighted-average number of common stock outstanding for the period. Diluted Net Income Per Share reflects the assumed conversion of all dilutive securities.

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

Mortgage Services: We recognize revenues for the majority of the services we provide in this segment on completion of the service to our customer. For default processing services and certain property preservation services, we recognize revenue over the period during which we perform the related services, with full recognition on completion of the related foreclosure filing or on closing of the related real estate transaction. We record revenue associated with real estate sales on a net basis as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage. Reimbursable expenses of $80.1 million, $44.6 million and $16.1 million incurred in 2011, 2010 and 2009, respectively, primarily in conjunction with our property preservation and default processing services are included in revenues with an equal offsetting expense included in cost of revenues. These amounts are recognized on a gross basis, principally because we have complete control over selection of vendors.

Financial Services: We generally earn our fees for asset recovery management services as a percentage of the amount we collect on delinquent consumer receivables on behalf of our clients and recognize revenues upon collection from the debtors. We also provide customer relationship management services for which we earn and recognize revenues on a per-call, per-person or per minute basis as the related services are performed.

Technology Services: For our REALSuite™, we charge based on the number of our client’s loans processed on the system or on a per-transaction basis. We record transactional revenues when the service is provided and other revenues monthly based on the number of loans processed, employees serviced or services provided. Furthermore, we provide IT infrastructure services to Ocwen and charge for these services primarily based on the number of employees that are using the applicable systems and the number and type of licensed products used by Ocwen. We record revenue associated with implementation services upon completion and maintenance ratably over the related service period.

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

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

Transactions With Related Parties

12 Months Ended

Dec. 31, 2011

Transactions With Related Parties [Abstract]

TRANSACTIONS WITH RELATED PARTIES

3. TRANSACTIONS WITH RELATED PARTIES

Ocwen remains our largest customer. Following the Separation, Ocwen is contractually obligated to purchase certain Mortgage Services and Technology Services from us under service agreements. These agreements extend for eight years from the date of Separation subject to termination under certain provisions. Ocwen is not restricted from redeveloping these services. We settle amounts with Ocwen on a daily, weekly or monthly basis based upon the nature of the services and when the service is completed.

With respect to Ocwen, related party revenues consist of revenues earned directly from Ocwen and revenues earned from the loans serviced by Ocwen when Ocwen determines the service provider. We earn additional revenue on the loan portfolios serviced by Ocwen that are not considered related party revenues as Ocwen does not have the ability to decide the service provider. As a percentage of each of our segment revenues and as a percentage of consolidated revenues, related party revenue was as follows for the year ended December 31:

		September 30,			September 30,			September 30,
	For the Years Ended December 31,
	2011			2010			2009

Mortgage Services		72	%		73	%		84	%
Technology Services		39			37			44
Financial Services		< 1			< 1			< 1
Consolidated Revenues		58	%		51	%		47	%

We record revenues we earn from Ocwen under the various long-term servicing contracts at rates we believe to be market rates as they are consistent with one or more of the following: the fees we charge to other customers for comparable services; the rates Ocwen pays to other service providers; fees commensurate with market surveys prepared by unaffiliated firms; and prices being charged by our competitors. As of January 1, 2011, we modified our pricing for IT Infrastructure Services within our Technology Services segment from a rate card model primarily based on headcount to a fully loaded cost plus mark-up methodology.

Transition Services

In connection with the Separation, Altisource and Ocwen entered into a Transition Services Agreement under which services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax, risk management, legal, strategic planning, compliance and other areas are provided to the counterparty for up to two years from the date of Separation. The agreement was subsequently extended in August 2011 for certain services for an additional year. For the years ended December 31, 2011 and 2010, Altisource billed Ocwen $2.6 million and $1.8 million, respectively, and Ocwen billed Altisource $1.9 million and $1.1 million respectively for services provided under this agreement. Amounts were immaterial in 2009. These amounts are reflected as a component of Selling, General and Administrative expenses in the Consolidated Statements of Operations.

Separation Related Expenditures

Included in Selling, General and Administrative Expenses in the accompanying Statement of Operations, we have recognized $3.4 million of Separation related expenses for the year ended December 31, 2009, primarily representing professional fees and other costs associated with establishing the Company as a stand-alone entity. Prior to the second quarter of 2009, all previous costs in connection with the Separation were recognized by Ocwen.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions [Abstract]

ACQUISITIONS

4. ACQUISITIONS

The results of operations of the following acquisitions have been included in our consolidated results from the respective acquisition dates. The acquisitions did not have a material effect on our financial position, results of operations or cash flows.

Acquisition-related transaction costs are included in Selling, General and Administrative Expenses in the Consolidated Statements of Operations.

Springhouse and Tracmail

In April 2011, we acquired Springhouse, an appraisal management company that utilizes a nationwide panel of appraisers to provide real estate appraisals principally to mortgage originators, including the members of Lenders One, and real estate asset managers.

In July 2011, we acquired the assembled workforce of Tracmail, a sub-contractor in India that performed asset recovery services. Prior to acquisition, the costs paid to the sub-contractor were included in Outside Fees and Services (included in Cost of Revenue in the Consolidated Financial Statements).

The allocation of the purchase price for these transactions is as follows:

		September 30,
(in thousands)

Accounts Receivable	$	289
Premises and Equipment		16
Identifiable Intangible Assets		1,180
Goodwill		3,079

		4,564
Accounts Payable and Accrued Expenses		(2,049	)

Total Consideration	$	2,515

Management has assigned the following lives to identified assets acquired as a result of the acquisitions:

		September 30,
	Estimated Life (in Years)

Premises and Equipment		2 – 5
Trademarks⁽¹⁾		4
Customer Lists⁽¹⁾		6
Non-compete⁽¹⁾		2
Goodwill		Indefinite
⁽¹⁾ The identifiable assets are subject to amortization on a straight-line basis as this best approximates the benefit period related to these assets.

The goodwill arising from the Springhouse acquisition assigned to our Mortgage Services segment relates principally to in-place workforce and our ability to go to market more quickly with a retail origination appraisal business. The goodwill arising from the Tracmail acquisition assigned to our Financial Services segment relates principally to in-place workforce. All goodwill and intangible assets related to the acquisitions are expected to be amortizable and deductible for income tax purposes.

MPA

On February 12, 2010, we acquired all of the outstanding membership interests of MPA pursuant to a Purchase and Sale Agreement. MPA serves as the manager of Lenders One, a national alliance of independent mortgage bankers. The alliance was established in 2000 and as of December 31, 2011 consisted of 214 members.

Consideration for the transaction consisted of cash, common stock and put option agreements:

		September 30,
(in thousands)	Consideration

Cash	$	29,000
Common Stock		23,900
Put Option Agreements at Fair Value		1,289
Working Capital Adjustment		835


Total Consideration	$	55,024

The common stock consisted of 1.0 million shares of Altisource’s common stock valued at $24.92 per share based on the closing price of Altisource common stock on February 11, 2010. A portion of the stock consideration (0.3 million shares) was held in escrow two years from the closing date of the acquisition to secure MPA’s indemnification obligations under the Purchase and Sale Agreement. The escrowed shares were released in 2011. In addition, we entered into three put option agreements with certain of the sellers whereby each seller has the right, with respect to an aggregate of 0.5 million shares of our common stock, to put up to 25% of eligible shares each year for a total of four years at a price equal to $16.84 per share. All remaining put agreements expired in December 2011 due to the attainment of certain Altisource share price thresholds.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Paragraph 1
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1383-128463

+ Details

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2011

Accounts Receivable, Net [Abstract]

ACCOUNTS RECEIVABLE, NET

5. ACCOUNTS RECEIVABLE, NET

Accounts Receivable, net consists of the following:

		September 30,			September 30,
	December 31,
(in thousands)	2011			2010

Third-party Accounts Receivable	$	13,776		$	19,039
Unbilled Fees		34,553			32,055
Receivable from Ocwen		5,250			3,950
Receivable from Correspondent One		123			—
Other Receivables		350			583

		54,052			55,627
Allowance for Doubtful Accounts		(2,047	)		(2,132	)


Total	$	52,005		$	53,495

Unbilled Fees consist primarily of Asset Management and Default Management Services for which we recognize revenues over the service delivery period but bill at completion of the service.

A summary of the allowance for doubtful accounts, net of recoveries, for the years ended December 31, 2011, 2010 and 2009 is as follows:

		September 30,
	(in thousands)

Balance, January 1, 2009	$	777
Bad Debt Expense		338
Recoveries		(205	)
Write-offs		(214	)

Balance, December 31, 2009		696
Bad Debt Expense		1,735
Recoveries		(106	)
Write-offs		(193	)

Balance, December 31, 2010	$	2,132
Bad Debt Expense		967
Recoveries		(54	)
Write-offs		(998	)

Balance, December 31, 2011	$	2,047

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Asset/Other Non-Current Assets [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid Expenses and Other Current Assets consist of the following:

		September 30,		September 30,
	December 31,
(in thousands)	2011		2010

Prepaid Expenses	$	4,211	$	5,134
Income Tax Receivable		—		7,327
Other Current Assets		791		615


Total	$	5,002	$	13,076

Premises and Equipment, Net

12 Months Ended

Dec. 31, 2011

Premises and Equipment, Net [Abstract]

PREMISES AND EQUIPMENT, NET

7. PREMISES AND EQUIPMENT, NET

Premises and Equipment, net which include amounts recorded under capital leases, consists of the following:

		September 30,			September 30,
	December 31,
(in thousands)	2011			2010

Computer Hardware and Software	$	39,452		$	32,931
Office Equipment and Other		15,068			9,717
Furniture and Fixtures		4,299			2,226
Leasehold Improvements		7,014			4,501

		65,833			49,375
Less: Accumulated Depreciation and Amortization		(40,233	)		(31,882	)


Total	$	25,600		$	17,493

Depreciation and amortization expense, inclusive of capital lease obligations, amounted to $8.4 million, $7.2 million and $5.4 million for 2011, 2010 and 2009, respectively, and is included in Cost of Revenue for operating assets and in Selling, General and Administrative expense for non-operating assets in the accompanying Consolidated Statements of Operations.

- Definition

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

+ References + Details

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets, Net [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

8. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Goodwill relates to the acquisitions of MPA, Springhouse, Tracmail, and the company that developed the predecessor to our REALTrans^® vendor management platform.

Changes in Goodwill during the years ended December 31, 2011 and 2010 are summarized below:

		September 30,		September 30,			September 30,		September 30,
(in thousands)	Mortgage Services		Financial Services			Technology Services		Total

Balance, January 1, 2010	$	—	$	7,706		$	1,618	$	9,324
Acquisition of MPA		10,218		—			—		10,218
Component 2 Amortization (a)		—		(4,890	)		—		(4,890	)
Impairment Loss (b)		—		(2,816	)		—		(2,816	)

Balance, December 31, 2010		10,218		—			1,618		11,836
Acquisition of Springhouse		701		—			—		701
Acquisition of Tracmail		—		2,378			—		2,378

Balance, December 30, 2011	$	10,919	$	2,378		$	1,618	$	14,915

a)	See footnote (a) below Intangible Assets table below.

b)	Based on the fourth quarter goodwill impairment test, management determined it was prudent to impair $2.8 million of goodwill in the Financial Services segment. This determination was made after considering quantitative and qualitative factors including past performance and execution risk.

Intangible Assets, Net

Intangible assets relate to our acquisitions of MPA (see Note 4) and Nationwide Credit, Inc (“NCI^®”). No impairment charges were taken during the periods presented.

Intangible Assets, net during the years ended December 31, 2011 and 2010 consist of the following:

		September 30,		September 30,		September 30,		September 30,			September 30,		September 30,		September 30,
	Weighted Average Estimated Useful		Gross Carrying Amount				Accumulated Amortization					Net Book Value
	Life		December 31,				December 31,					December 31,
(dollars in thousands)	(Years)		2011		2010		2011			2010		2011		2010

Definite-lived Intangible
Assets
Trademarks		16	$	10,614	$	10,200	$	3,353		$	2,346	$	7,261	$	7,854
Customer Lists		19		38,366		37,700		13,010	(a)		7,447		25,356		30,253
Operating Agreement		20		35,000		35,000		3,354			1,604		31,646		33,396
Non-compete Agreement		4		1,300		1,200		613			275		687		925

Total Intangible Assets			$	85,280	$	84,100	$	20,330		$	11,672	$	64,950	$	72,428

Prior to our acquisition of NCI in 2007, NCI completed an acquisition which created tax-deductible goodwill that amortizes for tax purposes over time. When we acquired NCI in 2007, we recorded a lesser amount of goodwill for financial reporting purposes than what had previously been recorded at NCI for tax purposes. This difference between the amount of goodwill recorded for financial reporting purposes and the amount recorded for taxes is referred to as “Component 2” goodwill and it resulted in our recording periodic reductions first to our book goodwill balance in our consolidated financial statements. As our book goodwill balance was fully written off at December 31, 2010 (see Goodwill section above), we continue to amortize the remaining Component 2 goodwill for U.S. tax purposes by reducing certain intangible assets by the remaining tax benefits of the Component 2 goodwill as they are realized in our tax returns. The amount amortized was $3.4 million for the year ended December 31, 2011. The balance of Component 2 goodwill remaining was $5.7 million as of December 31, 2011 which should generate $3.5 million of reductions of intangible assets when the benefit can be realized for U.S. tax purposes.

Amortization expense for definite lived intangible assets was $5.3 million, $4.9 million and $2.7 million for the fiscal years ended December 31, 2011, 2010 and 2009, respectively. Expected annual amortization for years 2012 through 2016, is $5.0 million, $4.8 million, $4.5 million, $4.4 million and $4.3 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

Investment In Equity Affiliate

12 Months Ended

Dec. 31, 2011

Investment In Equity Affiliate [Abstract]

INVESTMENT IN EQUITY AFFILIATE

9. INVESTMENT IN EQUITY AFFILIATE

Correspondent One S.A. (“Correspondent One™”) facilitates the purchase of closed conforming and government guaranteed residential mortgages from approved mortgage bankers. Correspondent One provides members of Lenders One additional avenues to sell loans beyond Lenders One’s preferred investor arrangements and the members’ own network of loan buyers. We have significant influence over the general operations of Correspondent One consistent with our 49% ownership level and therefore account for our investment under the equity method. As of December 31, 2011 we have no additional funding commitments to Correspondent One.

Correspondent One is in the initial phases of building its operations and therefore is expected to operate at a loss into 2012. The net loss on this investment using the equity method was $0.5 million for the year ended December 31, 2011. The following table presents summarized financial information for Correspondent One which had no revenues as of December 31, 2011 except for interest income as no loans were sold:

		September 30,
(in thousands)	Year Ended December 31, 2011

Net loss	$	(1,087	)

	As of December 31,2011

Current Assets	$	29,600
Non Current Assets		524
Current Liabilities		461
Equity		29,663

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References + Details

Other Non-Current Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Asset/Other Non-Current Assets [Abstract]

OTHER NON-CURRENT ASSETS

10. OTHER NON-CURRENT ASSETS

Other Non-Current Assets consist of the following:

		September 30,		September 30,
	December 31,
(in thousands)	2011		2010

Security Deposits	$	7,615	$	3,047
Unbilled Fees		1,773		1,449
Other		40		40


Total	$	9,428	$	4,536

Accounts Payable, Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2011

Accounts Payable, Accrued Expenses and Other Current Liabilities [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

11. ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts Payable and Accrued Expenses consist of the following:

		September 30,		September 30,
	December 31,
(in thousands)	2011		2010

Accounts Payable	$	2,974	$	5,960
Accrued Expenses—General		18,485		11,189
Accrued Salaries and Benefits		14,575		12,010
Income Taxes Payable		6,419		3,807
Payable to Ocwen		2,414		2,418


Total	$	44,867	$	35,384

Other Current Liabilities consist of the following:

		September 30,		September 30,
	December 31,
(in thousands)	2011		2010

Deferred Revenue	$	4,581	$	2,542
Facility Closure Cost Accrual, Current Portion		131		253
Collections Due to Clients		768		726
Other		4,459		2,095


Total	$	9,939	$	5,616

Facility Closure Costs

During 2009, we accrued facility closure costs (included in other current and other non-current liabilities in the Balance Sheet and in Selling, General and Administrative Expenses in the Statement of Operations) primarily consisting of lease exit costs (expected to be paid through 2014) and severance for the closure of two facilities. The following table summarizes the activity for severance and other charges, all recorded in our Financial Services segment, for the years ended December 31, 2011 and 2010:

		September 30,
(in thousands)	Total

Balance, January 1, 2010	$	916
Payments		(244	)

Balance, December 31, 2010		672
Less: Long-term Portion		(419	)

Facility Closure Cost Accrual, Current Portion	$	253


Balance, December 31, 2010	$	672
Payments		(217	)

Balance, December 31, 2011		455
Less: Long-term Portion		(324	)

Facility Closure Cost Accrual, Current Portion	$	131

We do not expect significant additional costs related to the closure of these facilities.

Stockholders' Equity and Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Stockholders' Equity and Share-Based Compensation [Abstract]

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

12. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common Stock

Our Board of Directors has the power to issue shares of authorized but unissued common stock without further shareholder action subject to the requirements of applicable laws and stock exchanges. At December 31, 2011, we had authorized 100.0 million shares. At December 31, 2011, we had 23.4 million shares of common stock outstanding. The holders of shares of Altisource common stock are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares will possess all voting power.

Treasury Stock

On May 19, 2010, our shareholders authorized us to purchase up to 3.8 million shares of our common stock in the open market. Through December 31, 2011, we purchased 2.3 million shares of our common stock on the open market at an average price of $34.55 per share, leaving 1.5 million shares still available for purchase under the program.

Equity Incentive Plan

Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares and other awards, or a combination of any of the above. Under the Plan, we may grant up to 6.7 million share-based awards to officers, directors, key employees and certain Ocwen employees. As of December 31, 2011, 2.3 million share-based awards were available for future grant under the Plan. The shares will be issued from authorized and unissued shares of our common stock. Expired and forfeited awards are available for re-issuance. Vesting and exercise of share-based awards are generally contingent on continued employment.

Equity-Based Compensation

We have issued stock-based awards in the form of stock options for certain employees and officers. We recorded total stock compensation expense of $4.0 million, $3.1 million and $0.3 million for the years ended December 31, 2011, 2010 and 2009, respectively. The total compensation expense for 2011 and 2010 includes $3.0 million and $0.5 million, respectively, related to the vesting of performance awards that vested in 2011 and 2010, respectively.

Outstanding equity based compensation currently only consists of stock option grants that are a combination of service-based and market-based options:

Service-based Options. These options are granted at fair market value on the date of grant. The options generally vest over four years with equal annual cliff-vesting and expire on the earlier of 10 years after the date of grant or following termination of service. A total of 1.0 million service-based awards were outstanding at December 31, 2011.

Market-based Options. These option grants have two components each of which vest only upon the achievement of certain criteria. The first component, which we refer to internally as “ordinary performance” grants, consists of two-thirds of the market-based grant and begins to vest if the stock price realizes a compounded annual gain of at least 20% over the exercise price, so long as the stock price is at least double the exercise price. The remaining third of the market-based options, which we refer to internally as “extraordinary performance” grants, begins to vest over three years if the stock price realizes a compounded annual gain of at least 25% over the exercise price, so long as it is at least triple the exercise price. The vesting schedule for all market-based awards is 25% upon achievement of the criterion and the remaining 75% in three equal annual installments. A total of 2.2 million market-based awards were outstanding at December 31, 2011.

We granted 0.2 million stock options (at an average price of $33.15 per share) and 0.9 million stock options (at an average price of $23.58 per share) during the years ended December 31, 2011 and 2010, respectively.

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

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2011						2010						2009
	Black-Scholes			Binomial			Black-Scholes			Binomial			Black-Scholes			Binomial
Risk-free Interest Rate		1.69 – 1.93	%		0.04 – 3.03	%		1.50 – 3.20	%		0.02 – 3.66	%		2.64	%		0.50 – 3.86	%
Expected Stock Price Volatility		48	%		55.7 – 55.8	%		47 – 50	%		51 – 52	%		39	%		38 – 46	%
Expected Dividend Yield		—			—			—			—			—			—
Expected Option Life (in years)		6.25			—			6.25 – 7			—			5			—
Contractual Life (in years)		—			14			—			13			—			10
Fair Value	$	16.33 – $17.85		$	16.91 – $20.39		$	11.95 – $13.24		$	10.05 – $12.42		$	5.35		$	4.54 – $5.33

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

	September 30,			September 30,		September 30,
			December 31
			2011		2010
Weighted-Average Fair Value at Date of Grant			$	17.66	$	18.18
Intrinsic Value of Options Exercised	(in thousands	)	$	4,966	$	7,530
Fair Value of Options Vested	(in thousands	)	$	3,536	$	926

Stock-based compensation expense is recorded, net of estimated forfeiture rates ranging from 1% to 3%.

As of December 31, 2011, estimated unrecognized compensation costs related to share-based payments amounted to $5.8 million which we expect to recognize over a weighted-average remaining requisite service period of approximately 3.0 years.

The following table summarizes activity of our stock options:

		September 30,			September 30,		September 30,		September 30,
	Number of Options			Weighted Average Exercise Price		Weighted Average Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)

Outstanding at December 31, 2010		3,451,613		$	13.46		7.3	$	52,641

Granted		181,000			33.15
Exercised		(231,908	)		11.20
Forfeited		(156,747	)		24.44

Outstanding at December 31, 2011		3,243,958		$	14.19		6.7	$	116,755


Exercisable at December 31, 2011		1,787,132		$	10.92		6.0	$	70,165

The following table summarizes information about stock options outstanding and exercisable at December 31, 2011:

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	Options Outstanding						Options Exercisable
Exercise Price Range	Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price

$0.00 – $5.00		40,342		1.09	$	2.97		40,342		1.09	$	2.97
$5.01 – $10.00		2,035,326		6.28		9.49		1,387,416		6.16		9.46
$10.01 – $15.00		251,248		4.93		13.22		212,498		4.42		13.05
$20.01 – $25.00^(a)		786,042		8.27		23.81		146,876		8.27		23.81
$30.01 – $35.00^(a)		72,500		9.44		33.03		—		—		—
$35.01 – $40.00^(a)		58,500		9.56		37.09		—		—		—

		3,243,958						1,787,132

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

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

		September 30,		September 30,
	Market Based Options
(in thousands, except share prices) Vesting Price	Ordinary Performance		Extraordinary Performance

$60.00 – $65.00		10		—
$65.01 – $70.00		26		72
$70.01 – $75.00		8		125
$75.01 – $95.00		0		5
$95.01 – $115.00		0		17

		44		219


Weighted Average Share Price	$	67.45	$	74.40

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

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-Name Accounting Standards Codification
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-Paragraph 3
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

+ Details

Cost of Revenue

12 Months Ended

Dec. 31, 2011

Cost of Revenue [Abstract]

COST OF REVENUE

13. COST OF REVENUE

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

		September 30,		September 30,		September 30,
	For the Years Ended December 31,
(in thousands)	2011		2010		2009

Compensation and Benefits	$	82,548	$	62,791	$	51,251
Outside Fees and Services		86,201		60,583		43,026
Expense Reimbursements		82,074		47,449		16,077
Technology and Communications		18,772		12,548		11,613
Depreciation and Amortization		6,254		5,688		4,830

Total	$	275,849	$	189,059	$	126,797

Selling, General and Administrative Expenses

12 Months Ended

Dec. 31, 2011

Selling, General and Administrative Expenses [Abstract]

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

14. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, General and Administrative Expenses include payroll for personnel employed in executive, sales, marketing, human resources and finance roles. This category also includes occupancy costs, professional fees, depreciation and amortization on non-operating assets. The components of Selling, General and Administrative Expenses were as follows for the periods ended December 31:

		September 30,		September 30,		September 30,
	For the Years Ended December 31,
(in thousands)	2011		2010		2009

Compensation and Benefits	$	22,327	$	19,116	$	4,096
Professional Services		6,658		8,026		10,252
Occupancy Related Costs		17,824		10,684		7,854
Amortization of Intangible Assets		5,291		4,891		2,672
Goodwill Impairment		—		2,816		—
Depreciation and Amortization		2,097		1,470		602
Other		7,934		10,349		13,997

Total	$	62,131	$	57,352	$	39,473

Other in 2009 includes $1.4 million relating to a litigation settlement.

Other Income (Expense), Net

12 Months Ended

Dec. 31, 2011

Other Income (Expense), Net [Abstract]

OTHER INCOME (EXPENSE), NET

15. OTHER INCOME (EXPENSE), NET

Other Income (Expense) consists of the following:

		September 30,			September 30,			September 30,
	For the Years Ended December 31,
(in thousands)	2011			2010			2009

Interest Income	$	32		$	31		$	16
Interest Expense		(85	)		(119	)		(1,660	)
Change in Fair Value of Put Option		732			557			—
Equity Loss in Affiliate, net		(530	)		—			—
Other, net		54			335			2,678

Total	$	203		$	804		$	1,034

Through the date of Separation, Interest Expense included an interest charge from Ocwen which represented an allocation of Ocwen’s total interest expense calculated based on our assets in comparison to Ocwen’s total assets. This charge was $1.3 million for the year ending December 31, 2009. Subsequent to the date of Separation, we are no longer subject to the interest charge from Ocwen.

The change in Fair Value of Put Option relates to three put option agreements we entered into with certain of the sellers of MPA. The Put Option expired in December 2011.

Equity loss in affiliate represents our proportionate share of the earnings in Correspondent One (see Note 9).

Other, net in 2009 includes $2.3 million of income relating to a litigation settlement.

Income Taxes

12 Months Ended

Dec. 31, 2011

Income taxes [Abstract]

INCOME TAXES

16. INCOME TAXES

The income tax (benefit) provision consists of the following:

		September 30,			September 30,			September 30,
	For the Years Ended December 31,
(in thousands)	2011			2010			2009

Current:
Domestic — Luxembourg	$	2,300		$	(1,031	)	$	4,827
Foreign — U.S. Federal		—			—			8,321
Foreign — U.S. State		119			561			—
Foreign — Non U.S.		2,891			1,186			26

	$	5,310		$	716		$	13,174


Deferred:
Domestic — Luxembourg	$	(387	)	$	395		$	(107	)
Foreign — U.S. Federal		3,216			(1,014	)		(1,581	)
Foreign — U.S. State		(22	)		(68	)		(66	)
Foreign — Non U.S.		(174	)		(432	)		185

	$	2,633		$	(1,119	)	$	(1,569	)

Total	$	7,943		$	(403	)	$	11,605

We received a favorable ruling in June 2010 regarding the treatment of certain intangibles that exist for purposes of determining the Company’s taxable income. The ruling is retroactive to the date of Separation. As a result of the ruling, the Company recognized a $3.4 million credit attributable to 2009 in the second quarter of 2010. The impact of this is included above as a component of the current Luxembourg tax benefit. This ruling did not have a material impact on our deferred tax assets or liabilities. Income tax computed by applying the Luxembourg statutory income tax rate of 28.8% differs from income tax computed at the effective tax rate primarily because of the effect of the favorable tax ruling as well as differing tax rates in multiple jurisdictions, including losses recognized in our U.S. operations.

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

A summary of the tax effects of the temporary differences is as follows:

		September 30,			September 30,
	December 31,
(in thousands)	2011			2010

Current Deferred Tax Assets:
Allowance for Doubtful Accounts and Other Reserves	$	72		$	143
Accrued Expenses		1,294			807
Current Deferred Tax Liabilities:
Prepaid Expense		(233	)		(399	)

Current Deferred Tax Asset, Net:	$	1,133		$	551


Non-current Deferred Tax Assets:
Non Operating Loss Carryforwards — U.S. Federal	$	10,998		$	8,891
Non Operating Loss Carryforwards — U.S. State		2,209			2,058
Depreciation		—			58
Non-U.S. Deferred Tax Asset		1,479			916
Other		564			416
Non-current Deferred Tax Liabilities:
Intangible Assets	$	(8,014	)	$	(9,258	)
Depreciation		(654	)		—

		6,582			3,081
Valuation Allowance	$	(2,209	)	$	(1,875	)

Non-current Deferred Tax Asset, net	$	4,373		$	1,206

Net Deferred Tax Asset	$	5,506		$	1,757

A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized. In determining whether a valuation allowance is needed, we considered estimates of future taxable income, future reversals of temporary differences, tax character and the impact of tax planning strategies that can be implemented, if warranted. As of December 31, 2011, we provided a valuation allowance of $2.2 million related to certain state operating losses. This represents an increase of $0.3 million compared to the prior year increase of $0.3 million. The increase in valuation allowance during 2011 relates to additional state losses generated in the current year.

We have not provided Luxembourg deferred taxes on cumulative earnings of non-Luxembourg affiliates as these earnings have been indefinitely reinvested. The earnings relate to ongoing operations and at December 31, 2011, were $16 million.

As of December 31, 2011, the Company had a deferred tax asset of $13.2 million relating to U.S. Federal and State net operating losses. Of this amount, $2.2 million relating to state net operating losses were subject to a valuation allowance. The gross amount of net operating losses available for carryover to future years approximates $33 million. Of this amount, $15.9 million relates to NCI for periods prior to our acquisition and is subject to Section 382 of the Internal Revenue Code (the “Code”) which limits their use to approximately $1.3 million per year. These losses are scheduled to expire between the years 2022 and 2029.

The separation from Ocwen and relocation of certain operations to Luxembourg resulted in changes to deferred tax balances which include amounts charged to stockholders’ equity of approximately $1.0 million. For periods prior to the date of Separation, we are included in Ocwen’s tax returns. Our responsibility with respect to these periods is governed by a tax sharing agreement. In accordance with this agreement, U.S. income taxes were allocated as if they had been calculated on a separate company basis except that benefits for any net operating losses will be provided to the extent such loss is utilized in the consolidated U.S. federal tax return. The provision for income taxes prior to the date of Separation has been determined on a pro-forma basis as if we had filed separate income taxes under our current structure for the periods presented.

The Distribution was intended to be a tax-free transaction under Section 355 of the Code. However, Ocwen recognized, and paid tax on, substantially all of the gain it has in the assets that comprise Altisource as a result of the restructuring. To the extent Ocwen does recognize tax under Section 355 of the Code, Altisource has agreed to indemnify Ocwen. In addition, we have agreed to indemnify Ocwen should the expected tax treatments not be upheld upon review or audit to the extent related to our operating results. The Company does not anticipate a material obligation under this indemnity.

The following table reconciles the Income Tax Provision to the Luxembourg income tax rate:

		September 30,			September 30,			September 30,
	For the Years Ended December 31,
	2011			2010			2009

Statutory Tax Rate		28.80	%		28.60	%		28.60	%
Foreign Rate Differential		(19.27	)		(23.00	)		2.60
Tax Adjustment for Retroactive Ruling		—			(7.00	)		—
Change in Valuation Allowances		—			0.50			(0.90	)
State Tax Expense		0.07			0.30			—
Indefinite Deferral on Earnings of Non - U.S Luxembourg Affiliates		—			—			0.60
Other		0.45			(0.20	)		—

		10.05	%		(0.80	)%		30.90	%

The Company follows ASC Topic 740 which clarifies the accounting and disclosure for uncertainty in tax positions. We analyzed our tax filing positions in all of the domestic and foreign tax jurisdictions where we are required to file income tax returns as well as for all open tax years in these jurisdictions. Based on this review, no reserves for uncertain income tax positions were required to have been recorded pursuant to ASC Topic 740. In addition, we determined that we did not need to record a cumulative effect adjustment related to the adoption of ASC Topic 740.

We recognize accrued interest and penalties related to uncertain tax positions in Selling, General and Administrative Expenses in the Statements of Operations. As of December 31, 2011 and 2010, we did not have a liability recorded for payment of interest and penalties associated with uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: 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.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

17. EARNINGS PER SHARE

Basic EPS is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of dilutive securities.

Basic and diluted EPS for the years ended December 31, 2011, 2010 and 2009 are calculated as follows:

		September 30,		September 30,		September 30,
	For the Years Ended December 31,
(in thousands, except per share data)	2011		2010		2009

Net Income Attributable to Altisource	$	71,112	$	49,271	$	25,971


Weighted-Average Common Shares Outstanding,
Basic		24,373		25,083		24,062
Dilutive Effect of Stock Options		1,312		1,176		196
Dilutive Effect of Restricted Shares		—		—		3

Weighted-Average Common Shares Outstanding,
Diluted		25,685		26,259		24,261


Earnings Per Share
Basic	$	2.92	$	1.96	$	1.08

Diluted	$	2.77	$	1.88	$	1.07

A total of 0.1 million options that were anti-dilutive have been excluded from the computation of diluted EPS for each of the years ended December 31, 2011 and 2010 (negligible amount for 2009). These options were anti-dilutive because their exercise price was greater than the average market price of our stock. Also excluded from the computation of diluted EPS are 0.3 million options for December 31, 2011, and 0.7 million options for each of 2010 and 2009 respectively, granted for shares that are issuable upon the achievement of certain market and performance criteria related to our stock price and an annualized rate of return to investors that have not been met at this point.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

18. COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, we are involved in legal proceedings arising in the ordinary course of business. We record a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where a range of loss is determined, we record a best estimate of loss within the range. When legal proceedings are material we disclose the nature of the litigation and to the extent possible the estimate of loss or range of loss. In the opinion of management, after consultation with legal counsel and considering insurance coverage where applicable, the outcome of current legal proceedings both individually and in the aggregate will not have a material impact on our financial condition, results of operations or cash flows.

Leases

We lease certain premises and equipment under various capital and operating lease agreements. Future minimum lease payments at December 31, 2011 under non-cancelable capital and operating leases with an original term exceeding one year are as follows:

		September 30,			September 30,
(in thousands)	Capital Lease Obligations			Operating Lease Obligations

2012	$	659			9,564
2013		204			5,561
2014		—			3,060
2015		—			263

		863		$	18,448

Less: Amounts Representing Interest		(27	)

Capital Lease Obligations		836
Less: Current Portion Under Capital Lease Obligation		(634	)

Long-term Portion Under Capital Lease Obligation	$	202

Total operating lease expense, net of sublease income, was $10.8 million, $7.8 million and $4.2 million for the years ended December 31, 2011, 2010, and 2009, respectively. The operating leases generally relate to office locations and reflect customary lease terms which range from 1 to 7 years in duration.

Escrow Balances

We hold customers’ assets in escrow at various financial institutions pending completion of certain real estate and debt collection activities. These amounts are held in escrow for limited periods of time, generally consisting of a few days. To the extent these assets are not co-mingled with our fees and are maintained in segregated bank accounts, they are generally not included in the Consolidated Balance Sheets, the balance of which is $17.7 million at December 31, 2011.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

19. 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 that we use to evaluate operating performance and to assess the allocation of our resources by our Chief Executive Officer.

We classify our businesses into three reportable segments. Mortgage Services consists of mortgage portfolio management services that span the mortgage lifecycle. Financial Services principally consists of unsecured asset recovery and customer relationship management. Technology Services consists of modular, comprehensive integrated technological solutions for loan servicing, vendor management and invoice presentment and payment as well as providing infrastructure support. In addition, our Corporate Items and Eliminations segment includes eliminations of transactions between the reporting segments and this segment also includes costs recognized by us related to corporate support functions such as executive, finance, legal, human resources, vendor management and six sigma. Prior to the date of Separation, this segment included expenditures recognized by us related to the Separation.

Financial information for our segments is as follows:

		September 30,		September 30,			September 30,			September 30,			September 30,
	For the Year Ended December 31, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource

Revenue	$	311,921	$	71,181		$	56,094		$	(15,509	)	$	423,687
Cost of Revenue		202,035		51,096			36,874			(14,156	)		275,849

Gross Profit		109,886		20,085			19,220			(1,353	)		147,838
Selling, General and Administrative Expenses		15,278		15,634			4,867			26,352			62,131

Income (Loss) from Operations		94,608		4,451			14,353			(27,705	)		85,707
Other Income (Expense), net		248		(34	)		(49	)		38			203

Income (Loss) Before Income Taxes	$	94,856	$	4,417		$	14,304		$	(27,667	)	$	85,910


Transactions with Related Parties:
Revenue	$	223,184	$	266		$	21,812		$	—		$	245,262

Selling, General and Administrative Expenses	$	—	$	—		$	—		$	1,893		$	1,893

		September 30,		September 30,			September 30,			September 30,			September 30,
	For the Year Ended December 31, 2010
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource

Revenue	$	187,133	$	77,617		$	52,013		$	(15,385	)	$	301,378
Cost of Revenue		117,691		56,575			28,909			(14,116	)		189,059

Gross Profit		69,442		21,042			23,104			(1,269	)		112,319
Selling, General and Administrative Expenses		13,718		20,739			4,985			17,910			57,352

Income (Loss) from Operations		55,724		303			18,119			(19,179	)		54,967
Other Income (Expense), net		781		(50	)		(60	)		133			804

Income (Loss) Before Income Taxes	$	56,505	$	253		$	18,059		$	(19,046	)	$	55,771


Transactions with Related Parties:
Revenue	$	135,655	$	166		$	19,167		$	—		$	154,988

Selling, General and Administrative Expenses	$	—	$	—		$	—		$	1,056		$	1,056

		September 30,		September 30,		September 30,			September 30,			September 30,
	For the Year Ended December 31, 2009
								Corporate
	Mortgage		Financial		Technology			Items and			Consolidated
(in thousands)	Services		Services		Services			Eliminations			Altisource

Revenue	$	87,801	$	79,731	$	47,453		$	(12,173	)	$	202,812
Cost of Revenue		56,539		57,067		24,477			(11,286	)		126,797

Gross Profit		31,262		22,664		22,976			(887	)		76,015
Selling, General and Administrative Expenses		4,913		19,979		4,731			9,850			39,473

Income (Loss) from Operations		26,349		2,685		18,245			(10,737	)		36,542
Other Income (Expense), net		31		1,324		(319	)		(2	)		1,034

Income (Loss) Before Income Taxes	$	26,380	$	4,009	$	17,926		$	(10,739	)	$	37,576


Transactions with Related Parties:
Revenue	$	74,089	$	98	$	20,710		$	—		$	94,897

Selling, General and Administrative Expenses	$	2,712	$	467	$	1,517		$	(388	)	$	4,308

Interest Expense	$	30	$	1,029	$	231		$	—		$	1,290

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

Total Assets:
December 31, 2011	$	112,780	$	41,276	$	32,279	$	37,824	$	224,159

December 31, 2010	$	93,173	$	43,202	$	31,469	$	29,956	$	197,800

December 31, 2009	$	8,259	$	51,579	$	15,677	$	45,041	$	120,556

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Name Accounting Standards Codification
-Topic 280
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

20. QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables contain selected unaudited statement of operations information for each quarter of 2011 and 2010. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business is affected by seasonality.

Unaudited quarterly results are as follows:

		September 30,		September 30,		September 30,		September 30,
	2011 Quarter Ended⁽¹⁾
(in thousands, except per share data)	December 31,		September 30,		June 30,		March 31,

Revenue	$	131,956	$	109,793	$	93,268	$	88,670
Gross Profit		47,492		36,454		30,171		33,721
Income Before Income Taxes and
Non-controlling Interests		30,757		20,805		16,537		17,811
Net Income		28,191		18,962		14,690		16,124
Net Income Attributable to Altisource		25,731		17,171		13,385		14,825

Net Income Per Share
Basic	$	1.09	$	0.71	$	0.54	$	0.60
Diluted	$	1.02	$	0.67	$	0.52	$	0.57
Weighted Average Shares Outstanding
Basic		23,692		24,341		24,625		24,845
Diluted		25,142		25,489		25,773		25,928

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details