SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2013

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 19 — SUBSEQUENT EVENT

On April 12, 2013, we entered into an agreement with Ocwen to establish additional terms related to the existing servicing arrangements between Altisource and Ocwen in connection with Ocwen’s acquisition of certain mortgage servicing platform assets of ResCap.  In exchange for $128.8 million to be paid by Altisource to Ocwen, Altisource will be the exclusive provider of certain services related to the ResCap servicing portfolio.  We paid $80.0 million at closing and the remaining $48.8 million will be paid in monthly installments for up to five months following the closing.  We acquired no tangible assets and assumed no liabilities in connection with the agreement.  However, certain employees as well as practices and processes developed to support the ResCap servicing portfolio are components of the transaction.  We anticipate the transaction will be accounted for as a business combination in accordance with Financial Accounting Standards Board Accounting Standards Codification section 805, Business Combinations. We have not completed a preliminary price allocation since the transaction was recently completed.