Here are two analogies to describe Altisource Portfolio Solutions (ASPS):

1. It's like a **Fidelity National Financial (FNF)** or **First American Financial (FAF)**, but focusing on the full mortgage lifecycle and specializing in managing distressed assets and foreclosures for banks and mortgage servicers.

2. Imagine a **CBRE (CBRE)** or **JLL (JLL)**, but highly specialized in managing and selling residential foreclosures and distressed real estate assets on behalf of banks and mortgage servicers.

• Mortgage Servicing Technology and Services: Provides integrated technology platforms and business process outsourcing solutions for various stages of the mortgage lifecycle, including originations, default, and loss mitigation. (Service Category: Financial Technology & Business Process Outsourcing)
• Real Estate Asset Management and Disposition: Offers comprehensive services for managing and selling real estate owned (REO) properties, encompassing property preservation, valuation, marketing, and closing. (Service Category: Real Estate Services)
• Title and Closing Services: Delivers title insurance, escrow, and settlement services to facilitate smooth and secure real estate transactions. (Service Category: Financial & Real Estate Services)
• Online Real Estate Auction Platform (Hubzu): Operates an online marketplace for the auction and sale of residential real estate, including distressed and traditional properties. (Service Category: E-commerce & Real Estate Services)

Altisource Portfolio Solutions (ASPS)

Altisource Portfolio Solutions primarily sells its services and solutions to other companies within the mortgage and real estate industries. Its business model is largely B2B (business-to-business).

Based on their financial filings (e.g., their most recent 10-K), Altisource has historically derived a significant portion of its revenue from a limited number of customers. The primary major customer disclosed by the company is:

• Ocwen Financial Corporation (OCN)

Ocwen Financial Corporation has consistently accounted for a substantial percentage of Altisource's consolidated revenue (e.g., 24-26% in recent fiscal years). While Altisource serves a broader range of mortgage servicers, lenders, investors, and other financial institutions, Ocwen is the only customer that individually accounted for 10% or more of their revenue in recent periods, making it their explicitly identified major customer.

William B. Shepro Chairman and Chief Executive Officer

Mr. Shepro was appointed Chairman of the Altisource Board of Directors in May 2019 and Chief Executive Officer in July 2009. Prior to his time at Altisource, Mr. Shepro served as President and Chief Operating Officer of Ocwen Solutions, a business unit of Ocwen Financial Corporation (now Onity Group Inc.). From 2003 to 2009, he was President of Global Servicing Solutions, LLC, a joint venture between Ocwen and Merrill Lynch. He also held positions as Senior Vice President of Ocwen Recovery Group and Senior Vice President, Director and Senior Manager of Commercial Servicing at Ocwen, which he joined in 1997.

Michelle D. Esterman Chief Financial Officer

Ms. Esterman serves as Chief Financial Officer of Altisource, a role she assumed effective August 27, 2018, having previously served as CFO from March 2012 to October 2017 and as Executive Vice President, Finance since October 2017. Before joining Altisource, Ms. Esterman was a Senior Manager, Audit & Enterprise Risk Services for Deloitte & Touche, LLP, where she held various positions from 1996 to 2012, including a two-year rotation with Deloitte Touche Tohmatsu. She began her career at Georgia-Pacific Corporation in 1994. Ms. Esterman is a certified public accountant (Florida).

Gregory J. Ritts Chief Legal and Compliance Officer

Mr. Ritts has served as Chief Legal and Compliance Officer of Altisource since February 2018 and as General Counsel since joining the company in October 2014. Before Altisource, he was Senior Vice President, Deputy General Counsel of Publicis Groupe. His prior experience also includes roles as Global Vice President of Business Affairs and Corporate Development at Razorfish LLC, and various senior legal positions at aQuantive, Inc. and Microsoft Corporation.

Israel Meir Chief Strategy and Technology Officer

Mr. Meir serves as Chief Strategy and Technology Officer of Altisource. Prior to this role, he was President, Technology Services at Altisource. Before joining Altisource in February 2014, Mr. Meir worked as a principal at the Boston Consulting Group. He started his career as a software engineer at Polaroid's Imaging Science Lab.

Justin Demola SVP, Origination Solutions, President, Lenders One®

Mr. Demola leads the day-to-day operations and strategic execution for the Lenders One® Cooperative. He brings nearly 30 years of experience in mortgage, consulting, and business development. He joined Lenders One® in 2019 as Vice President, Sales, and later served as Managing Director. His previous leadership roles include Chief Operating Officer of MLB Residential Lending, LLC and President of The Hills Mortgage and Finance Company, LLC.

The rapid advancement and adoption of artificial intelligence (AI), machine learning, and advanced automation tools throughout the mortgage and real estate industries pose a clear emerging threat. These technologies are enabling more efficient, faster, and potentially cheaper alternatives for core services that Altisource Portfolio Solutions (ASPS) provides. Specifically:

• AI-driven Automated Valuation Models (AVMs): Increasingly sophisticated AVMs are being developed and adopted, leveraging vast data sets and machine learning to provide rapid, cost-effective property valuations that can reduce the reliance on traditional appraisals and valuations, a significant part of ASPS's business.
• Automation in Title and Closing Processes: AI and Robotic Process Automation (RPA) are streamlining and accelerating tasks such as title search, document analysis, and closing coordination. This automation can reduce manual labor, improve accuracy, and decrease turnaround times, potentially commoditizing or diminishing demand for ASPS's traditional title and closing services.
• Predictive Analytics and Automation in Default Management: Advanced analytics are helping mortgage servicers identify at-risk loans earlier and automate aspects of property preservation, inspection scheduling, and vendor management. This can lead to more efficient default management processes, potentially reducing the scope or profitability of ASPS's field services and default management offerings if they do not adequately integrate these technologies themselves.

This technological shift challenges ASPS's existing operational models and service delivery by offering superior efficiency and cost savings, similar to how digital streaming services disrupted traditional media distribution.

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Share Repurchases

• A share repurchase program authorizing up to $25.0 million of common stock was approved on December 10, 2019, with no expiration date.
• In the second quarter of 2020, Altisource repurchased $1.7 million of its common stock.
• As of December 31, 2023, approximately $21.5 million remained available under the December 2019 share repurchase authorization.

Outbound Investments

• Altisource completed the acquisition of certain assets of the mortgage servicer and real estate services business of Premium Assignment Corporation (PAC) in May 2022.

Capital Expenditures

• Capital expenditures were $4.0 million for the year ended December 31, 2023.
• Capital expenditures amounted to $5.3 million for the year ended December 31, 2022, and $3.5 million for the year ended December 31, 2021.
• The primary focus of capital expenditures includes investments in technology and product innovation.