Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Reporting

The Company reviews, manages and operates its business in three segments: corporate, appraisal management and financial intermediary. Corporate operating results include income generated from mortgage securities retained from securitizations, the results of the Company's CDO and corporate general and administrative expenses. Appraisal management operations include the service fee income and related expenses from the Company's majority-owned direct subsidiary, StreetLinks, and its majority-owned indirect subsidiary, Corvisa. The financial intermediary segment consists of the financial settlement service fee income and related expenses from Advent. This segment had significant operations during the six months ended June 30, 2011, and therefore is now managed as its own segment. Operations of Advent had been included in the Corporate segment information in the same period in 2010 as it was in its start-up phase and its operating activities were minimal. The Securitization trusts segment is no longer its own segment due to the derecognition of the securitization trusts which occurred in January 2010. See Note 18 to the condensed consolidated financial statements for further details.

Following is a summary of the operating results of the Company's segments for the six and three months ended June 30, 2011 and 2010 (dollars in thousands):

For the Six Months Ended June 30, 2011

	Corporate			Appraisal Management			Financial Intermediary		Eliminations			Total
Income and Revenues:
Service fee income	$	—		$	44,041		$	6,514	$	—		$	50,555
Interest income - mortgage securities	5,640			—			—		—			5,640
Total	5,640			44,041			6,514		—			56,195
Costs and Expenses:
Cost of services	—			38,723			2,756		—			41,479
Selling, general and administrative expense	5,911			3,371			1,731		(635		)	10,378
Other expenses	517			25			204		283			1,029
Total	6,428			42,119			4,691		(352		)	52,886
Other income (expense)	438			167			—		(352		)	253
Interest expense	(1,026		)	—			—		—			(1,026		)
(Loss) income before income tax expense	(1,376		)	2,089			1,823		—			2,536
Income tax expense	50			—			—		—			50
Net (loss) income	(1,426		)	2,089			1,823		—			2,486
Less: Net (loss) income attributable to noncontrolling interests	—			(261		)	507		—			246
Net (loss) income attributable to NFI	$	(1,426	)	$	2,350		$	1,316	$	—		$	2,240
Depreciation and amortization expense (A)	$	88		$	846		$	41	$	—		$	975
Additions to long-lived assets	$	18		$	728		$	7	$	—		$	753
June 30, 2011:
Total assets (B)	$	29,995		$	17,793		$	2,794	$	(10,385	)	$	40,197

(A) Amounts are included in the cost of services and selling, general and administrative expense line item of the condensed consolidated statements of operations.

(B)Appraisal management segment includes goodwill of $3.2 million.

As of June 30, 2010, the Company reviewed, managed and operated its business in three segments: securitization trusts, corporate and appraisal management. Securitization trusts' operating results are driven from the income generated on the on-balance sheet securitizations less associated costs.

For the Six Months Ended June 30, 2010

	Securitization Trusts			Corporate			Appraisal Management		Eliminations			Total
Income and Revenues:
Service fee income	$	—		$	—		$	27,453	$	—		$	27,453
Interest income - mortgage loans	10,681			—			—		167			10,848
Interest income - mortgage securities	450			4,048			—		—			4,498
Total	11,131			4,048			27,453		167			42,799
Costs and Expenses:
Cost of services	—			—			24,679		—			24,679
Interest expense - asset-backed bonds	1,416			—			—		—			1,416
Provision for credit losses	17,433			—			—		—			17,433
Servicing fees	731			—			—		—			731
Premiums for mortgage loan insurance	308			—			—		—			308
Selling, general and administrative expense	14			7,557			1,924		—			9,495
Gain on derecognition of securitization trusts	(993,131		)	—			—		—			(993,131		)
Other expenses (income)	1,254			(1,759		)	40		162			(303		)
Total	(971,975		)	5,798			26,643		162			(939,372		)
Other income	—			1,011			—		—			1,011
Interest expense	—			(572		)	—		—			(572		)
Income (loss) before income tax expense	983,106			(1,311		)	810		5			982,610
Income tax expense	—			628			—		—			628
Net income (loss)	983,106			(1,939		)	810		5			981,982
Less: Net (loss) income attributable to noncontrolling interests	—			(798		)	99		—			(699		)
Net income (loss) attributable to NFI	$	983,106		$	(1,141	)	$	711	$	5		$	982,681
Depreciation and amortization expense (A)	$	—		$	136		$	233	$	—		$	369
Additions to long-lived assets	$	—		$	6		$	2	$	—		$	8
June 30, 2010:
Total assets (B)	$	1,428		$	24,612		$	8,125	$	(283	)	$	33,882

(A)     Amounts are included in the cost of services and selling, general and administrative expense line item of the condensed consolidated statements of operations.

(B)Appraisal management segment includes goodwill of $1.0 million.

For the Three Months Ended June 30, 2011

	Corporate			Appraisal Management			Financial Intermediary			Eliminations			Total
Income and Revenues:
Service fee income	$	—		$	25,155		$	731		$	—		$	25,886
Interest income - mortgage securities	2,622			—			—			—			2,622
Total	2,622			25,155			731			—			28,508
Costs and Expenses:
Cost of services	—			22,029			555			—			22,584
Selling, general and administrative expense	2,198			1,850			940			(143		)	4,845
Other expenses (income)	157			(5		)	—			143			295
Total	2,355			23,874			1,495			—			27,724
Other income	5			157			—			—			162
Interest expense	(714		)	—			—			—			(714		)
Income (loss) before income tax expense	(442		)	1,438			(764		)	—			232
Income tax expense	19			—			—			—			19
Net income (loss)	(461		)	1,438			(764		)	—			213
Less: Net loss attributable to noncontrolling interests	—			(78		)	(166		)	—			(244		)
Net income (loss) attributable to NFI	$	(461	)	$	1,516		$	(598	)	$	—		$	457
Depreciation and amortization expense (A)	$	45		$	424		$	6		$	—		$	475
Additions to long-lived assets	$	2		$	599		$	3		$	—		$	604

(A)     Amounts are included in the cost of services and selling, general and administrative expense line item of the condensed consolidated statements of operations.

For the Three Months Ended June 30, 2010

	Securitization Trusts			Corporate			Appraisal Management		Eliminations			Total
Income and Revenues:
Service fee income	$	—		$	—		$	17,806	$	—		$	17,806
Interest income - mortgage loans	—			—			—		—			—
Interest income - mortgage securities	204			2,186			—		—			2,390
Total	204			2,186			17,806		—			20,196
Costs and Expenses:
Cost of services	—			—			15,610		—			15,610
Selling, general and administrative expense	—			2,801			1,150		—			3,951
Other expenses (income)	695			(539		)	22		92			270
Total	695			2,262			16,782		92			19,831
Other income	—			216			1		—			217
Interest expense	—			(248		)	—		—			(248		)
(Loss) income before income tax expense	(491		)	(108		)	1,025		(92		)	334
Income tax expense	—			216			—		—			216
Net (loss) income	(491		)	(324		)	1,025		(92		)	118
Less: Net (loss) income attributable to noncontrolling interests	—			(263		)	125		—			(138		)
Net (loss) income attributable to NFI	$	(491	)	$	(61	)	$	900	$	(92	)	$	256
Depreciation and amortization expense (A)	$	—		$	64		$	117	$	—		$	181
Additions to long-lived assets	$	—		$	4		$	2	$	—		$	6

(A) Amounts are included in the cost of services and selling, general and administrative expense line item of the condensed consolidated statements of operations.