ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2015

RentRange, Investability and Onit Solutions [Member]

Acquisitions

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

The preliminary allocation of the purchase price is as follows:

(in thousands)
Cash	$	3
Accounts receivable, net	245
Premises and equipment, net	1,206
Other assets	199
Software	1,265
Trademarks and trade names	1,205
Databases/other	910
Non-compete agreements	330
Customer relationships	255
Goodwill	19,565
	25,183
Accounts payable and accrued expenses	(391		)
Purchase price	$	24,792

CastleLine

Acquisitions

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

On July 17, 2015, we acquired CastleLine Holdings, LLC and its subsidiaries (“CastleLine”), a specialty risk management and insurance services firm. CastleLine provides financial products and services to parties involved in the origination, underwriting, purchase and securitization of residential mortgages. The purchase consideration was composed of $12.3 million of cash at closing, $10.5 million of cash payable over four years from the acquisition date and 495 thousand shares of restricted common stock of the Company with a value of $14.4 million as of the closing date. Of the cash payable following acquisition, $3.8 million is contingent on certain future employment conditions of certain of the sellers, and therefore excluded from the purchase price. The CastleLine acquisition is not material in relation to the Company’s results of operations or financial position.

The preliminary allocation of the purchase price is as follows:

(in thousands)
Cash	$	1,088
Accounts receivable, net	510
Prepaid expenses	66
Restricted cash	2,501
Non-compete agreements	1,105
Databases/other	465
Customer relationships	395
Trademarks and trade names	150
Goodwill	28,125
	34,405
Accounts payable and accrued expenses	(875		)
Deferred revenue	(87		)
Purchase price	$	33,443

Equator LLC

Acquisitions

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

	Initial purchase price allocation			Adjustments			Adjusted purchase price allocation
(in thousands)
Accounts receivable	$	9,293		$	3,490		$	12,783
Prepaid expenses and other current assets	954			(393		)	561
Premises and equipment	16,974			—			16,974
Customer relationships, trademarks and trade names	43,393			—			43,393
Goodwill	82,460			—			82,460
Other non-current assets	242			78			320
Assets acquired	153,316			3,175			156,491
Accounts payable and accrued expenses	(7,232		)	536			(6,696		)
Deferred revenue	(36,689		)	—			(36,689		)
Liabilities assumed	(43,921		)	536			(43,385		)
Purchase price	$	109,395		$	3,711		$	113,106

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

In accordance with ASC Topic 805, Business Combinations, the liability for contingent consideration is reflected at fair value and adjusted each reporting period with the change in fair value recognized in earnings. During 2014, the fair value of the contingent consideration related to the Equator acquisition was reduced by $37.9 million with a corresponding increase in earnings based on management’s revised estimates that expected earnings of Equator would be lower than projected at the time of acquisition. The reduction in fair value was recorded in 2014 and is reflected as a reduction of selling, general and administrative expenses in the consolidated statements of operations (see Note 19).

See Note 10 for additional information on the impairment of Technology Services goodwill for the years ended December 31, 2015 and 2014, which includes Equator goodwill.

Schedule of Estimated Life of Identifiable Assets Acquired as Part of Business Combination [Table Text Block]

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

Mortgage Builder

Acquisitions

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

On September 12, 2014, we acquired certain assets and assumed certain liabilities of Mortgage Builder Software, Inc. (“Mortgage Builder”) pursuant to a Purchase and Sale Agreement dated July 18, 2014 (the “Purchase and Sale Agreement”). Mortgage Builder is a provider of residential mortgage loan origination and servicing software systems. Pursuant to the terms of the Purchase and Sale Agreement, we paid $15.7 million at closing in cash (net of closing working capital adjustments). Additionally, the Purchase and Sale Agreement provides for the payment of up to $7.0 million in potential additional consideration (the “MB Earn-Out”) based on Adjusted Revenue (as defined in the Purchase and Sale Agreement) in the three consecutive 12-month periods following closing. At closing, we estimated the fair value of the MB Earn-Out to be $1.6 million determined based on the present value of future estimated MB Earn-Out payments. After the acquisition date, the allocation of the purchase price was adjusted based upon information that subsequently became available relating to acquisition date working capital, resulting in an obligation of the sellers to pay the Company $0.2 million. The Mortgage Builder acquisition and the adjustment to the preliminary allocation of the purchase price are not material in relation to the Company’s results of operations or financial position.

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

(in thousands)
Cash	$	668
Accounts receivable, net	1,102
Prepaid expenses	38
Premises and equipment, net	553
Software	1,509
Trademarks and trade names	209
Customer relationships	4,824
Goodwill	9,135
	18,038
Accounts payable and accrued expenses	(950		)
Purchase price	$	17,088

Owners.com

Acquisitions

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

The final allocation of the purchase price is as follows:

(in thousands)
Accounts receivable, net	$	32
Prepaid expenses	28
Software	501
Trademarks and trade names	1,431
Goodwill	19,775
	21,767
Accounts payable	(22		)
Purchase price	$	21,745

Residential Capital LLC Mortgage Servicing Platform Assets [Member]

Acquisitions

Schedule of Estimated Life of Identifiable Assets Acquired as Part of Business Combination [Table Text Block]

ResCap Fee-Based Businesses

On April 12, 2013, we entered into an agreement with Ocwen to establish additional terms related to the existing servicing arrangements between Altisource and Ocwen in connection with certain mortgage servicing platform assets of ResCap (the “ResCap Business”). The agreement provides that (i) Altisource will be a provider to Ocwen of certain services related to the ResCap Business, (ii) Ocwen will not establish similar fee-based businesses that would directly or indirectly compete with Altisource’s services as they relate to the ResCap Business and (iii) Ocwen will market and promote the utilization of Altisource’s services to their various third party relationships. Additionally, the parties agreed to use commercially reasonable best efforts to ensure that the loans associated with the ResCap Business are boarded onto Altisource’s mortgage servicing platform. We paid $128.8 million to Ocwen in connection with the ResCap fee-based businesses agreement.

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

Management prepared a final purchase price allocation and assigned associated asset lives based upon available information at the time of the agreement and until finalized as of December 31, 2013. The agreement consideration of $128.8 million was fully allocated to the customer relationship intangible asset with an estimated average useful life of 7 years.

Homeward Servicing Portfolio

Acquisitions

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

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

(in thousands)
Premises and equipment	$	1,559
Customer relationship	75,609
Goodwill	2,039
	79,207
Accounts payable and accrued expenses	(3,390		)
Purchase price	$	75,817

Schedule of Estimated Life of Identifiable Assets Acquired as Part of Business Combination [Table Text Block]

	Estimated life (in years)
Premises and equipment	3 - 5
Customer relationships	7

Equator, ResCap and Homeward

Acquisitions

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents the unaudited pro forma consolidated results of operations for the year ended December 31, 2013 as if the Equator, ResCap and Homeward transactions had occurred at the beginning of the period presented.

	Year ended December 31, 2013
(in thousands, except per share amounts)	As reported		Pro forma
Revenue	$	768,357	$	854,098
Net income attributable to Altisource	129,973		132,907
Earnings per share — diluted	5.19		5.31