x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 45-2156869 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
350 Highland Drive Lewisville, TX | 75067 | |
(Address of principal executive offices) | (Zip Code) |
Large Accelerated Filer | ¨ | Accelerated Filer | ¨ |
Non-Accelerated Filer | x (Do not check if a smaller reporting company.) | Smaller reporting company | ¨ |
Page | ||
PART I | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | ||
Item 3. | Quantitative and Qualitative Disclosure About Market Risks | |
Item 4. | ||
PART II | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
• | the delay in our foreclosure proceedings due to inquiries by certain state attorneys general, court administrators, and state and federal government agencies; |
• | the impact of the ongoing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), including rules issued by the Consumer Financial Protection Bureau (CFPB) relating to mortgage servicing and originations and the continuing examination of our business begun by the CFPB, on our business activities and practices, costs of operations and overall results of operations; |
• | the impact on our servicing practices of enforcement consent orders against, and agreements entered into by certain federal and state agencies with, the largest mortgage servicers and ongoing inquiries regarding other non-bank mortgage servicers; |
• | increased legal proceedings and related costs; |
• | the continued uncertainty of the residential mortgage market, increase in monthly payments on adjustable rate mortgage loans, adverse economic conditions, decrease in property values and increase in delinquencies and defaults; |
• | the deterioration of the market for reverse mortgages and increase in foreclosure rates for reverse mortgages; |
• | our ability to efficiently service higher risk loans; |
• | our ability to mitigate the increased risks related to servicing reverse mortgages; |
• | our ability to compete successfully in the mortgage loan servicing and mortgage loan originations industries; |
• | our ability to maintain or grow the size of our servicing portfolio and realize our significant investments in personnel and our technology platform by successfully identifying attractive acquisition opportunities, including mortgage servicing rights (MSRs), subservicing contracts, servicing platforms and originations platforms; |
• | our ability to scale-up appropriately and integrate our acquisitions to realize the anticipated benefits of any such potential future acquisitions, including potentially significant acquisitions; |
• | our substantial indebtedness may limit our financial and operating activities and our ability to incur additional debt to fund future needs; |
• | our ability to obtain sufficient capital to meet our financing requirements; |
• | our ability to grow our loan originations volume; |
• | the termination of our servicing rights and subservicing contracts; |
• | changes to federal, state and local laws and regulations concerning loan servicing, loan origination, loan modification or the licensing of entities that engage in these activities; |
• | changes in state and federal laws that are adverse to mortgage servicers which increase costs and operational complexity and impose significant penalties for violation; |
• | loss of our licenses; |
• | our ability to meet certain criteria or characteristics under the indentures governing our securitized pools of loans; |
• | our ability to follow the specific guidelines of government-sponsored enterprises (GSEs) or a significant change in such guidelines; |
• | delays in our ability to collect or be reimbursed for servicing advances; |
• | changes to Home Affordable Modification Program (HAMP), Home Affordable Refinance Program, Making Home Affordable Plan or other similar government programs; |
• | changes in our business relationships with the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Government National Mortgage Association (“Ginnie Mae”) and others that facilitate the issuance of mortgage-backed securities (MBS); |
• | changes to the nature of the guarantees of Fannie Mae and Freddie Mac and the market implications of such changes; |
• | errors in our financial models or changes in assumptions; |
• | requirements to write down the value of certain assets; |
• | changes in prevailing interest rates; |
• | our ability to successfully mitigate our risks through hedging strategies; |
• | changes to our servicer ratings; |
• | the accuracy and completeness of information about borrowers and counterparties; |
• | our ability to maintain our technology systems and our ability to adapt such systems for future operating environments; |
• | failure of our internal security measures or breach of our privacy protections; |
• | failure of our vendors to comply with servicing criteria; |
• | the loss of the services of our senior managers; |
• | failure to attract and retain a highly skilled work force; |
• | changes in public opinion concerning mortgage originators or debt collectors; |
• | changes in accounting standards; and |
• | conflicts of interest with our principal stockholder. |
March 31, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 220,039 | $ | 152,649 | |||
Restricted cash | 360,467 | 393,190 | |||||
Accounts receivable | 3,614,827 | 3,043,606 | |||||
Mortgage loans held for sale | 1,703,709 | 1,480,537 | |||||
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net of allowance for loan losses of $5,206 and $4,390, respectively | 235,915 | 238,907 | |||||
Reverse mortgage interests | 978,652 | 750,273 | |||||
Receivables from affiliates | 8,927 | 12,604 | |||||
Mortgage servicing rights – fair value | 1,289,643 | 635,860 | |||||
Mortgage servicing rights – amortized cost | 10,941 | 10,973 | |||||
Property and equipment, net of accumulated depreciation of $54,026 and $48,806, respectively | 77,407 | 75,026 | |||||
Real estate owned (REO), net | 15,487 | 10,467 | |||||
Other assets | 369,551 | 322,051 | |||||
Total assets | $ | 8,885,565 | $ | 7,126,143 | |||
Liabilities and stockholders' equity | |||||||
Notes payable | $ | 3,409,886 | $ | 3,601,586 | |||
Unsecured senior notes | 1,669,146 | 1,062,635 | |||||
Payables and accrued liabilities | 1,529,898 | 631,431 | |||||
Derivative financial instruments | 26,895 | 20,026 | |||||
Mortgage servicing liabilities | 82,931 | 83,238 | |||||
Nonrecourse debt - Legacy Assets | 98,388 | 100,620 | |||||
Excess spread financing - fair value | 498,906 | 288,089 | |||||
Participating interest financing | 745,263 | 580,836 | |||||
Total liabilities | 8,061,313 | 6,368,461 | |||||
Commitments and contingencies – See Note 18 | — | — | |||||
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding | — | — | |||||
Common stock at $0.01 par value - 1,000,000 shares authorized, 90,769 shares and 90,480 shares issued at March 31, 2013 and December 31, 2012, respectively | 908 | 905 | |||||
Additional paid-in-capital | 561,571 | 556,056 | |||||
Retained earnings | 267,903 | 205,287 | |||||
Treasury shares; 162 shares at cost | (6,554 | ) | — | ||||
Common shares held by subsidiary; 212 shares at cost | (4,566 | ) | (4,566 | ) | |||
Total Nationstar Inc. stockholders' equity | 819,262 | 757,682 | |||||
Noncontrolling interest | 4,990 | — | |||||
Total equity | 824,252 | 757,682 | |||||
Total liabilities and equity | $ | 8,885,565 | $ | 7,126,143 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Revenues: | |||||||
Servicing fee income | $ | 197,596 | $ | 86,190 | |||
Other fee income | 44,879 | 7,370 | |||||
Total fee income | 242,475 | 93,560 | |||||
Gain on mortgage loans held for sale | 188,587 | 70,512 | |||||
Total revenues | 431,062 | 164,072 | |||||
Expenses and impairments: | |||||||
Salaries, wages and benefits | 134,987 | 61,665 | |||||
General and administrative | 125,642 | 29,112 | |||||
Provision for loan losses | 915 | 753 | |||||
Loss on foreclosed real estate | 1,092 | 2,265 | |||||
Occupancy | 5,935 | 2,782 | |||||
Total expenses and impairments | 268,571 | 96,577 | |||||
Other income (expense): | |||||||
Interest income | 29,608 | 11,201 | |||||
Interest expense | (92,374 | ) | (24,980 | ) | |||
Loss on equity method investments | — | (117 | ) | ||||
Gain (loss) on interest rate swaps and caps | 1,268 | (268 | ) | ||||
Total other income (expense) | (61,498 | ) | (14,164 | ) | |||
Income before taxes | 100,993 | 53,331 | |||||
Income tax expense | 38,377 | 3,145 | |||||
Net income | 62,616 | 50,186 | |||||
Less: Net income attributable to noncontrolling interests | — | — | |||||
Net income and comprehensive income attributable to Nationstar Inc. | $ | 62,616 | $ | 50,186 | |||
Earnings per share: | |||||||
Basic earnings per share | $ | 0.70 | $ | 0.67 | |||
Diluted earnings per share | $ | 0.70 | $ | 0.67 | |||
Weighted average shares: | |||||||
Basic | 89,293 | 74,388 | |||||
Dilutive effect of stock awards | 649 | 173 | |||||
Diluted | 89,942 | 74,561 | |||||
Dividends declared per share | $ | — | $ | — |
Common Shares | Members’ Units | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury shares | Common shares held by subsidiary | Total Nationstar Inc. Equity | Non-controlling interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | — | $ | 281,309 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 281,309 | $ | — | $ | 281,309 | |||||||||||||||||||
Contributions from parent – FIF HE | — | 12,764 | — | — | — | — | — | 12,764 | — | 12,764 | ||||||||||||||||||||||||||||
LLC conversion of equity to common shares | 70,000 | (294,073 | ) | 700 | 293,373 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Common stock issuance | 19,167 | — | 192 | 246,508 | — | — | — | 246,700 | — | 246,700 | ||||||||||||||||||||||||||||
Shares issued under incentive plan | 1,293 | — | 13 | (13 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | 13,342 | — | — | — | 13,342 | — | 13,342 | ||||||||||||||||||||||||||||
Excess tax benefit from share-based compensation | — | — | — | 2,846 | — | — | — | 2,846 | — | 2,846 | ||||||||||||||||||||||||||||
Withholding tax related to share based settlement of common stock by management | — | — | — | — | — | — | (4,566 | ) | (4,566 | ) | — | (4,566 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | 205,287 | — | — | 205,287 | — | 205,287 | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | 90,460 | — | 905 | 556,056 | 205,287 | — | (4,566 | ) | 757,682 | — | 757,682 | |||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||
Shares issued under incentive plan | 309 | — | 3 | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | 2,858 | — | — | — | 2,858 | — | 2,858 | ||||||||||||||||||||||||||||
Excess tax benefit from share-based compensation | — | — | — | 2,660 | — | — | — | 2,660 | — | 2,660 | ||||||||||||||||||||||||||||
Withholding tax related to share based settlement of common stock by management | — | — | — | — | — | (6,554 | ) | — | (6,554 | ) | — | (6,554 | ) | |||||||||||||||||||||||||
Contributions from joint venture members to non-controlling interests | — | — | — | — | — | — | — | — | 4,990 | 4,990 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 62,616 | — | — | 62,616 | — | 62,616 | ||||||||||||||||||||||||||||
Balance at March 31, 2013 | 90,769 | $ | — | $ | 908 | $ | 561,571 | $ | 267,903 | $ | (6,554 | ) | $ | (4,566 | ) | $ | 819,262 | $ | 4,990 | $ | 824,252 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Operating activities | |||||||
Net income | $ | 62,616 | $ | 50,186 | |||
Adjustments to reconcile net income to net cash (used in) / provided by operating activities: | |||||||
Share-based compensation | 2,858 | 2,395 | |||||
Provision for loan losses | 915 | 753 | |||||
Loss on foreclosed real estate | 1,092 | 2,265 | |||||
Loss on equity method investments | — | 117 | |||||
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps | (1,268 | ) | 268 | ||||
Fair value changes in excess spread financing | 23,891 | 4,852 | |||||
Depreciation and amortization | 3,901 | 1,531 | |||||
Fair value changes in mortgage servicing rights | 9,659 | (495 | ) | ||||
Amortization/accretion of mortgage servicing rights at amortized cost | (275 | ) | (633 | ) | |||
Amortization (accretion) of premiums/discounts | 9,509 | 1,922 | |||||
Gain on mortgage loans held for sale | (188,587 | ) | (70,512 | ) | |||
Mortgage loans originated and purchased, net of fees | (3,781,116 | ) | (1,189,942 | ) | |||
Proceeds on sale of and payments of mortgage loans held for sale | 3,694,859 | 1,303,096 | |||||
Net tax effect of stock grants | (2,660 | ) | — | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable, including servicing advances, net | 81,094 | 40,685 | |||||
Receivables from affiliates | 3,677 | 806 | |||||
Reverse mortgage funded advances | (178,181 | ) | (112,738 | ) | |||
Other assets | (9,276 | ) | (8,471 | ) | |||
Payables and accrued liabilities | (104,947 | ) | 109,198 | ||||
Net cash (used in)/provided by operating activities | (372,239 | ) | 135,283 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Investing activities | |||||||
Property and equipment additions, net of disposals | (6,282 | ) | (2,564 | ) | |||
Deposits on reverse mortgage servicing rights, net | (50,198 | ) | — | ||||
Deposits on/purchase of forward mortgage servicing rights, net of liabilities incurred | (266,625 | ) | (347 | ) | |||
Loan repurchases from Ginnie Mae | (8,815 | ) | (2,426 | ) | |||
Proceeds from sales of REO | 4,157 | 2,955 | |||||
Net cash (used in)/provided by investing activities | (327,763 | ) | (2,382 | ) | |||
Financing activities | |||||||
Issuance of Senior Unsecured Notes, net | 599,269 | — | |||||
Transfers (to) / from restricted cash, net | 32,723 | (90,951 | ) | ||||
Issuance of common stock, net of IPO issuance costs | — | 249,550 | |||||
Issuance of participating interest financing | 166,646 | 115,438 | |||||
Issuance of excess spread financing | 192,730 | — | |||||
Decrease in notes payable | (191,700 | ) | (105,425 | ) | |||
Repayment of nonrecourse debt – Legacy assets | (2,612 | ) | (3,135 | ) | |||
Repayment of excess servicing spread financing | (20,881 | ) | (2,123 | ) | |||
Debt financing costs | (9,750 | ) | (2,706 | ) | |||
Net tax benefit for stock grants issued | 2,660 | — | |||||
Contributions from joint venture member to noncontrolling interests | 4,990 | — | |||||
Redemption of shares for stock vesting | (6,554 | ) | — | ||||
Cash settlement on derivative financial instruments | (129 | ) | — | ||||
Net cash provided by financing activities | 767,392 | 160,648 | |||||
Net increase in cash and cash equivalents | 67,390 | 293,549 | |||||
Cash and cash equivalents at beginning of period | 152,649 | 62,445 | |||||
Cash and cash equivalents at end of period | $ | 220,039 | $ | 355,994 | |||
Supplemental disclosures of non-cash activities | |||||||
Transfer of mortgage loans held for investment to REO at fair value | $ | 1,454 | $ | 1,340 | |||
Mortgage servicing rights resulting from sale or securitization of mortgage loans | 31,268 | 13,066 | |||||
Tax related share-based settlement of common stock | 6,554 | — | |||||
Liabilities incurred from purchase of forward mortgage servicing rights | 365,567 | 811 |
March 31, 2013 | December 31, 2012 | ||||||
Transfers Accounted for as Secured Borrowings | Transfers Accounted for as Secured Borrowings | ||||||
ASSETS | |||||||
Restricted cash | $ | 145,908 | $ | 247,531 | |||
Reverse mortgage interests | 695,723 | 542,037 | |||||
Accounts receivable | 1,971,502 | 2,656,277 | |||||
Mortgage loans held for investment, subject to nonrecourse debt | 219,198 | 224,207 | |||||
REO | 2,697 | 2,039 | |||||
Total Assets | $ | 3,035,028 | $ | 3,672,091 | |||
LIABILITIES | |||||||
Notes payable | $ | 2,095,013 | $ | 2,294,925 | |||
Payables and accrued liabilities | 2,838 | 3,415 | |||||
Derivative financial instruments | 4,987 | 6,118 | |||||
Nonrecourse debt–Legacy Assets | 98,388 | 100,620 | |||||
Participating interest financing | 745,263 | 580,836 | |||||
Total Liabilities | $ | 2,946,489 | $ | 2,985,914 |
March 31, 2013 | December 31, 2012 | ||||||
Total collateral balances | $ | 4,031,005 | $ | 4,134,513 | |||
Total certificate balances | 4,039,553 | 4,136,316 | |||||
Total mortgage servicing rights at fair value | 32,922 | 30,940 |
For the three months ended | |||||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||||
Principal Amount of Loans 60 Days or More Past Due | Credit Losses | Principal Amount of Loans 60 Days or More Past Due | Credit Losses | ||||||||||||
Total securitization trusts | $ | 1,179,325 | $ | 64,858 | $ | 936,006 | $ | 79,751 |
For the three months ended | |||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||
Servicing Fees Received | Loan Repurchases | Servicing Fees Received | Loan Repurchases | ||||||||||
Total securitization trusts | $ | 6,791 | $ | — | $ | 7,861 | $ | — |
March 31, 2013 | December 31, 2012 | ||||||
Servicer advances, net of purchase discount | $ | 3,351,989 | $ | 2,800,690 | |||
Accrued servicing fees | 101,349 | 90,231 | |||||
Receivables from trusts | 30,398 | 39,029 | |||||
Reverse mortgage - other | 13,171 | 28,448 | |||||
Accrued interest | 3,920 | 3,801 | |||||
Other | 114,000 | 81,407 | |||||
Total accounts receivable | $ | 3,614,827 | $ | 3,043,606 |
March 31, 2013 | December 31, 2012 | ||||||
Mortgage loans held for sale – unpaid principal balance | $ | 1,646,387 | $ | 1,426,182 | |||
Mark-to-market adjustment | 57,322 | 54,355 | |||||
Total mortgage loans held for sale | $ | 1,703,709 | $ | 1,480,537 |
For the three months ended | |||||||
March 31, 2013 | March 31, 2012 | ||||||
Mortgage loans held for sale – beginning balance | $ | 1,480,537 | $ | 458,626 | |||
Mortgage loans originated and purchased, net of fees | 3,781,116 | 1,189,942 | |||||
Proceeds on sale of and payments of mortgage loans held for sale | (3,549,535 | ) | (1,270,007 | ) | |||
Transfer of mortgage loans held for sale to held for investment due to bankruptcy and pending foreclosures | (8,409 | ) | — | ||||
Mortgage loans held for sale – ending balance | $ | 1,703,709 | $ | 378,561 |
March 31, 2013 | December 31, 2012 | |||||||
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance | $ | 348,822 | $ | 354,154 | ||||
Transfer discount | ||||||||
Accretable | (18,889 | ) | (19,749 | ) | ||||
Non-accretable | (88,812 | ) | (91,108 | ) | ||||
Allowance for loan losses | (5,206) | (4,390 | ) | |||||
Total mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net | $ | 235,915 | $ | 238,907 |
Three months ended March 31, 2013 | Year ended December 31, 2012 | ||||||
Accretable Yield | |||||||
Balance at the beginning of the period | $ | 19,749 | $ | 22,392 | |||
Additions | — | — | |||||
Accretion | (852 | ) | (3,548 | ) | |||
Reclassifications from (to) nonaccretable discount | (8 | ) | 905 | ||||
Disposals | — | — | |||||
Balance at the end of the period | $ | 18,889 | $ | 19,749 |
Three months ended March 31, 2013 | |||||||||||
Performing | Non-Performing | Total | |||||||||
Balance at the beginning of the period | $ | 771 | $ | 3,619 | $ | 4,390 | |||||
Provision for loan losses | 90 | 825 | 915 | ||||||||
Charge-offs | (55 | ) | (44 | ) | (99 | ) | |||||
Balance at the end of the period | $ | 806 | $ | 4,400 | $ | 5,206 | |||||
Ending balance – Collectively evaluated for impairment | $ | 266,854 | $ | 81,968 | $ | 348,822 |
Year ended December 31, 2012 | |||||||||||
Performing | Non-Performing | Total | |||||||||
Balance at the beginning of the period | $ | 1,641 | $ | 4,183 | $ | 5,824 | |||||
Provision for loan losses | 1,365 | 525 | 1,890 | ||||||||
Recoveries on loans previously charged-off | — | — | — | ||||||||
Charge-offs | (2,235 | ) | (1,089 | ) | (3,324 | ) | |||||
Balance at the end of the period | $ | 771 | $ | 3,619 | $ | 4,390 | |||||
Ending balance – Collectively evaluated for impairment | $ | 260,219 | $ | 93,935 | $ | 354,154 |
March 31, 2013 | December 31, 2012 | ||||||
(in thousands) | |||||||
Credit Quality by Delinquency Status | |||||||
Performing | $ | 266,854 | $ | 260,219 | |||
Non-Performing | 81,968 | 93,935 | |||||
Total | $ | 348,822 | $ | 354,154 | |||
Credit Quality by Loan-to-Value Ratio | |||||||
Less than 60 | $ | 38,677 | $ | 39,436 | |||
Less than 70 and more than 60 | 16,685 | 16,581 | |||||
Less than 80 and more than 70 | 22,954 | 20,890 | |||||
Less than 90 and more than 80 | 26,521 | 27,988 | |||||
Less than 100 and more than 90 | 30,918 | 32,570 | |||||
Greater than 100 | 213,067 | 216,689 | |||||
Total | $ | 348,822 | $ | 354,154 |
March 31, 2013 | December 31, 2012 | ||||||
UPB of advances previously securitized by Nationstar | $ | 695,723 | $ | 542,037 | |||
UPB of advances unsecuritized | 283,491 | 208,699 | |||||
Allowance for losses - reverse mortgage interests | (562 | ) | (463 | ) | |||
Total reverse mortgage interests | $ | 978,652 | $ | 750,273 |
Credit Sensitive MSRs | March 31, 2013 | December 31, 2012 | |||
Discount rate | 15.05 | % | 18.11 | % | |
Total prepayment speeds | 18.51 | % | 22.42 | % | |
Expected weighted-average life | 4.92 years | 4.12 years | |||
Credit losses | 18.02 | % | 24.68 | % | |
Interest Rate Sensitive MSRs | March 31, 2013 | December 31, 2012 | |||
Discount rate | 10.60 | % | 10.62 | % | |
Total prepayment speeds | 13.53 | % | 17.08 | % | |
Expected weighted-average life | 6.35 years | 5.19 years | |||
Credit losses | 11.61 | % | 11.09 | % |
Three months ended March 31, 2013 | Year ended December 31, 2012 | ||||||
Fair value at the beginning of the period | $ | 635,860 | $ | 251,050 | |||
Additions: | |||||||
Servicing resulting from transfers of financial assets | 31,268 | 58,607 | |||||
Purchases of servicing assets | 632,174 | 394,445 | |||||
Changes in fair value: | |||||||
Due to changes in valuation inputs or assumptions used in the valuation model | 43,361 | 5,500 | |||||
Other changes in fair value | (53,020 | ) | (73,742 | ) | |||
Fair value at the end of the period | $ | 1,289,643 | $ | 635,860 | |||
Unpaid principal balance of forward loans serviced for others | |||||||
Credit sensitive loans | $ | 201,730,585 | $ | 114,629,399 | |||
Interest sensitive loans | 20,113,675 | 16,494,985 | |||||
Total owned loans | $ | 221,844,260 | $ | 131,124,384 |
Discount Rate | Total Prepayment Speeds | Credit Losses | ||||||||||||||||||
100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||
March 31, 2013 | ||||||||||||||||||||
Mortgage servicing rights | $ | (30,092 | ) | $ | (63,907 | ) | $ | (96,409 | ) | $ | (189,467 | ) | $ | (95,440 | ) | $ | (192,032 | ) | ||
December 31, 2012 | ||||||||||||||||||||
Mortgage servicing rights | $ | (17,060 | ) | $ | (34,419 | ) | $ | (66,037 | ) | $ | (124,995 | ) | $ | (77,072 | ) | $ | (157,433 | ) |
Three months ended | Year ended | |||||||||||||
March 31, 2013 | December 31, 2012 | |||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||
Activity of MSRs at amortized cost | ||||||||||||||
Balance at the beginning of the period | $ | 10,973 | $ | 83,238 | $ | — | $ | — | ||||||
Additions: | ||||||||||||||
Purchase /Assumptions of servicing rights/obligations | — | — | 12,415 | 89,800 | ||||||||||
Deductions: | ||||||||||||||
Amortization/Accretion | (32 | ) | (307 | ) | (1,442 | ) | (6,562 | ) | ||||||
Balance at end of the period | $ | 10,941 | $ | 82,931 | $ | 10,973 | $ | 83,238 |
For the three months ended March 31, | ||||||
2013 | 2012 | |||||
Servicing fees | $ | 182,709 | $ | 60,977 | ||
Ancillary fees | 36,870 | 25,958 | ||||
Total servicing and ancillary fees | $ | 219,579 | $ | 86,935 |
March 31, 2013 | December 31, 2012 | ||||||
Derivative financial instruments (see Note 10) | $ | 182,589 | $ | 152,189 | |||
Loans subject to repurchase right from Ginnie Mae | 74,645 | 72,156 | |||||
Deferred financing costs | 57,469 | 46,780 | |||||
Deferred tax asset (see Note 13) | 9,892 | 23,737 | |||||
Margin call deposits | 14,152 | 10,920 | |||||
Deposits pending on mortgage servicing rights acquisitions | 9,986 | 2,040 | |||||
Prepaid expenses | 9,649 | 6,083 | |||||
Other | 11,169 | 8,146 | |||||
Total other assets | $ | 369,551 | $ | 322,051 |
March 31, 2013 | December 31, 2012 | ||||||
MSR purchases payable including advances (see Note 1) | $ | 865,487 | $ | 14,243 | |||
Reverse mortgage payables | 113,601 | 103,068 | |||||
Mortgage insurance premiums and reserves | 105,563 | 77,967 | |||||
Loans subject to repurchase from Ginnie Mae | 74,645 | 72,156 | |||||
Accrued interest | 57,274 | 31,938 | |||||
Government sponsored entities | 55,740 | 27,071 | |||||
Servicing payables | 63,651 | 73,967 | |||||
Taxes | 26,209 | 50,908 | |||||
Lease payables | 27,170 | 29,553 | |||||
Accrued bonus and payroll | 27,077 | 58,083 | |||||
Repurchase reserves | 20,902 | 18,511 | |||||
Payables to securitization trusts | 19,195 | 7,946 | |||||
Legal and professional fees | 13,815 | 27,860 | |||||
Cancelled lease reserves | 6,661 | 7,188 | |||||
Other | 52,908 | 30,972 | |||||
Total payables and accrued liabilities | $ | 1,529,898 | $ | 631,431 |
Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains / (Losses) | ||||||||||
For the three months ended March 31, 2013 | |||||||||||||
MORTGAGE LOANS HELD FOR SALE | |||||||||||||
Loan sale commitments | 2013 | $ | 324 | $ | 18 | $ | (3 | ) | |||||
OTHER ASSETS | |||||||||||||
IRLCs | 2013-2014 | 7,114,578 | 180,174 | 30,126 | |||||||||
Forward MBS trades | 2013 | 990,702 | 1,918 | 1,030 | |||||||||
LPCs | 2013 | 60,561 | 497 | (756 | ) | ||||||||
LIABILITIES | |||||||||||||
Interest rate swaps and caps | 2014-2015 | 637,852 | 4,987 | 1,004 | |||||||||
Interest rate swaps on ABS debt | 2013-2017 | 668,985 | 1,582 | 264 | |||||||||
Forward MBS trades | 2013 | 5,605,889 | 20,306 | (8,332 | ) | ||||||||
LPCs | 2013 | 2,837 | 20 | 66 | |||||||||
For the year ended December 31, 2012 | |||||||||||||
MORTGAGE LOANS HELD FOR SALE | |||||||||||||
Loan sale commitments | 2013 | $ | 445 | $ | 21 | $ | (613 | ) | |||||
OTHER ASSETS | |||||||||||||
IRLCs | 2013 | 4,921,963 | 150,048 | 138,746 | |||||||||
Forward MBS trades | 2013 | 977,900 | 888 | 888 | |||||||||
LPCs | 2013 | 112,624 | 1,253 | 1,253 | |||||||||
LIABILITIES | |||||||||||||
Interest rate swaps and caps | 2013-2015 | 726,168 | 6,120 | 420 | |||||||||
Interest rate swaps on ABS debt (1) | 2013-2017 | 654,192 | 1,846 | (1,414 | ) | ||||||||
Forward MBS trades | 2013 | 3,964,721 | 11,974 | (6,144 | ) | ||||||||
LPCs | 2013 | 78,839 | 86 | (86 | ) |
(1) | In March 2012, Nationstar received interest rate swaps from FIF as a part of the reorganization. |
March 31, 2013 | December 31, 2012 | ||||||||||||||
Outstanding | Collateral Pledged | Outstanding | Collateral Pledged | ||||||||||||
Servicing Segment Notes Payable | |||||||||||||||
MBS advance financing facility | $ | 174,965 | $ | 192,278 | $ | 185,817 | $ | 206,622 | |||||||
Securities repurchase facility (2011) | 11,774 | 55,603 | 11,774 | 55,603 | |||||||||||
2010-ABS advance financing facility | 194,217 | 237,865 | 194,833 | 233,208 | |||||||||||
Nationstar Agency advance financing facility | 575,035 | 608,663 | 476,091 | 549,284 | |||||||||||
MSR note | 3,239 | 11,299 | 4,627 | 12,328 | |||||||||||
2012-AW agency advance financing facility | — | — | 100,000 | 135,343 | |||||||||||
2012-C ABS advance financing facility | 574,437 | 653,676 | 657,027 | 742,238 | |||||||||||
2012-R ABS advance financing facility | 326,821 | 376,374 | 374,739 | 428,758 | |||||||||||
2012-W ABS advance financing facility | 424,503 | 497,745 | 492,235 | 566,332 | |||||||||||
Reverse participations financing facility | 104,799 | 127,424 | 65,943 | 76,455 | |||||||||||
MBS advance financing facility (2012) | 60,012 | 68,992 | — | — | |||||||||||
Originations Segment Notes Payable | |||||||||||||||
$750 million warehouse facility | 495,751 | 517,002 | 245,287 | 285,281 | |||||||||||
$150 million warehouse facility | 128,900 | 133,081 | 224,790 | 241,867 | |||||||||||
$750 million warehouse facility (2011) | 197,257 | 204,617 | 356,104 | 371,836 | |||||||||||
$300 million warehouse facility (2009) | 80,847 | 84,216 | 87,747 | 91,403 | |||||||||||
ASAP+ facility | 57,329 | 55,704 | 124,572 | 124,596 | |||||||||||
Total notes payable | $ | 3,409,886 | $ | 3,824,539 | $ | 3,601,586 | $ | 4,121,154 |
March 31, 2013 | December 31, 2012 | ||||||
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015 | $ | 282,046 | $ | 281,676 | |||
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019 | 379,896 | 380,232 | |||||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | 400,704 | 400,727 | |||||
$600 million face value, 6.500%, interest rate payable semi-annually, due July 2021 | 606,500 | — | |||||
Total | $ | 1,669,146 | $ | 1,062,635 |
Year | Amount | ||
2014 | $ | — | |
2015 | 285,000 | ||
2016 | — | ||
2017 | — | ||
2018 | — | ||
Thereafter | 1,375,000 | ||
Total | $ | 1,660,000 |
Discount Rate | Total Prepayment Speeds | Credit Losses | ||||||||||||||||||
100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||
March 31, 2013 | ||||||||||||||||||||
Excess spread financing | $ | 16,647 | $ | 31,505 | $ | 43,956 | $ | 63,970 | $ | 9,144 | $ | 13,937 | ||||||||
December 31, 2012 | ||||||||||||||||||||
Excess spread financing | $ | 7,978 | $ | 16,404 | $ | 10,654 | $ | 22,240 | $ | 5,538 | $ | 11,075 |
For the three months ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
Servicing | $ | 47,772 | $ | 11,079 | ||
Outsourcing | 19,517 | 2,056 | ||||
Legal and professional fees | 17,333 | 5,102 | ||||
Loan processing charges | 11,564 | 1,065 | ||||
Depreciation and amortization | 3,901 | 1,531 | ||||
Postage | 3,850 | 1,314 | ||||
Telecommunications and technology | 3,304 | 1,251 | ||||
Travel | 3,229 | 821 | ||||
Equipment | 3,167 | 1,320 | ||||
Dues and fees | 2,870 | 918 | ||||
Advertising | 2,112 | 742 | ||||
Stationary and office supplies | 1,558 | 994 | ||||
Other | 5,465 | 919 | ||||
Total general and administrative expenses | $ | 125,642 | $ | 29,112 |
For three months ended | ||||||
March 31, 2013 | March 31, 2012 | |||||
Current | ||||||
Federal | $ | 21,851 | $ | 2,794 | ||
State | 2,681 | 351 | ||||
24,532 | 3,145 | |||||
Deferred | ||||||
Federal | 12,457 | — | ||||
State | 1,388 | — | ||||
13,845 | — | |||||
Total | $ | 38,377 | $ | 3,145 | ||
Effective tax rate | 38.0 | % | 5.9 | % |
Excess Spread financing | Prepayment Speeds | Average Life (years) | Discount Rate |
For three months ended March 31, 2013 | |||
Low | 9.2% | 3.0 years | 10.3% |
High | 21.1% | 4.8 years | 15.4% |
For the year ended December 31, 2012 | |||
Low | 9.4% | 3.0 years | 13.6% |
High | 22.4% | 4.5 years | 15.5% |
March 31, 2013 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
ASSETS | |||||||||||||||
Mortgage loans held for sale(1) | $ | 1,703,709 | $ | — | $ | 1,703,709 | $ | — | |||||||
Mortgage servicing rights – fair value(1) | 1,289,643 | — | — | 1,289,643 | |||||||||||
Other assets: | |||||||||||||||
IRLCs | 180,174 | — | 180,174 | — | |||||||||||
Forward MBS trades | 1,918 | — | 1,918 | — | |||||||||||
LPCs | 497 | — | 497 | — | |||||||||||
Total assets | $ | 3,175,941 | $ | — | $ | 1,886,298 | $ | 1,289,643 | |||||||
LIABILITIES | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Interest rate swaps and caps | $ | 4,987 | $ | — | $ | 4,987 | $ | — | |||||||
Interest rate swaps on ABS debt | 1,582 | — | 1,582 | — | |||||||||||
Forward MBS trades | 20,306 | — | 20,306 | — | |||||||||||
LPCs | 20 | — | 20 | — | |||||||||||
Excess spread financing (at fair value) | 498,906 | — | — | 498,906 | |||||||||||
Total liabilities | $ | 525,801 | $ | — | $ | 26,895 | $ | 498,906 | |||||||
December 31, 2012 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
ASSETS | |||||||||||||||
Mortgage loans held for sale(1) | $ | 1,480,537 | $ | — | $ | 1,480,537 | $ | — | |||||||
Mortgage servicing rights – fair value(1) | 635,860 | — | — | 635,860 | |||||||||||
Other assets: | |||||||||||||||
IRLCs | 150,048 | — | 150,048 | — | |||||||||||
Forward MBS trades | 888 | — | 888 | — | |||||||||||
LPCs | 1,253 | — | 1,253 | — | |||||||||||
Total assets | $ | 2,268,586 | $ | — | $ | 1,632,726 | $ | 635,860 | |||||||
LIABILITIES | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Interest rate swaps and caps | $ | 6,120 | $ | — | $ | 6,120 | $ | — | |||||||
Interest rate swaps on ABS debt | 1,846 | — | 1,846 | — | |||||||||||
Forward MBS trades | 11,974 | 11,974 | |||||||||||||
LPCs | 86 | — | 86 | — | |||||||||||
Excess spread financing (at fair value) | 288,089 | — | — | 288,089 | |||||||||||
Total liabilities | $ | 308,115 | $ | — | $ | 20,026 | $ | 288,089 |
(1) | Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate. |
ASSETS | LIABILITIES | |||||||
For the three months ended March 31, 2013 | Mortgage servicing rights | Excess spread financing | ||||||
Beginning balance | $ | 635,860 | $ | 288,089 | ||||
Transfers into Level 3 | — | — | ||||||
Transfers out of Level 3 | — | — | ||||||
Total gains or losses | ||||||||
Included in earnings | (9,659 | ) | 23,891 | |||||
Included in other comprehensive income | — | — | ||||||
Purchases, issuances, sales and settlements | ||||||||
Purchases | 632,174 | — | ||||||
Issuances | 31,268 | 207,581 | ||||||
Sales | — | — | ||||||
Settlements | — | (20,655 | ) | |||||
Ending balance | $ | 1,289,643 | $ | 498,906 |
ASSETS | LIABILITIES | |||||||
For the year ended December 31, 2012 | Mortgage servicing rights | Excess spread financing | ||||||
Beginning balance | $ | 251,050 | $ | 44,595 | ||||
Transfers into Level 3 | — | — | ||||||
Transfers out of Level 3 | — | — | ||||||
Total gains or losses | ||||||||
Included in earnings | (68,242 | ) | 10,683 | |||||
Included in other comprehensive income | — | — | ||||||
Purchases, issuances, sales and settlements | ||||||||
Purchases | 394,445 | — | ||||||
Issuances | 58,607 | 272,676 | ||||||
Sales | — | — | ||||||
Settlements | — | (39,865 | ) | |||||
Ending balance | $ | 635,860 | $ | 288,089 |
Nonrecurring Fair Value Measurements | Total Estimated Fair Value | Total Gain (Loss) Included in Earnings | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
Three months ended March 31, 2013 | |||||||||||||||||||
Assets | |||||||||||||||||||
REO(1) | $ | — | $ | — | $ | 15,487 | $ | 15,487 | $ | (1,092 | ) | ||||||||
Total assets | $ | — | $ | — | $ | 15,487 | $ | 15,487 | $ | (1,092 | ) | ||||||||
Year ended December 31, 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||
REO(1) | $ | — | $ | — | $ | 10,467 | $ | 10,467 | $ | (2,864 | ) | ||||||||
Total assets | $ | — | $ | — | $ | 10,467 | $ | 10,467 | $ | (2,864 | ) |
(1) | Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate. |
March 31, 2013 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 220,039 | $ | 220,039 | $ | — | $ | — | |||||||
Restricted cash | 360,467 | 360,467 | — | — | |||||||||||
Mortgage loans held for sale | 1,703,709 | — | 1,703,709 | — | |||||||||||
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets | 235,915 | — | — | 202,618 | |||||||||||
Reverse mortgage interests | 978,652 | — | 1,034,509 | — | |||||||||||
Derivative instruments | 182,589 | — | 182,589 | — | |||||||||||
Financial liabilities: | |||||||||||||||
Notes payable | 3,409,886 | — | — | 3,409,886 | |||||||||||
Unsecured senior notes | 1,669,146 | 1,806,057 | — | — | |||||||||||
Derivative financial instruments | 26,895 | — | 26,895 | — | |||||||||||
Nonrecourse debt - Legacy assets | 98,388 | — | — | 100,066 | |||||||||||
Excess spread financing | 498,906 | — | — | 498,906 | |||||||||||
Participating interest financing | 745,263 | — | 747,998 | — | |||||||||||
December 31, 2012 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 152,649 | $ | 152,649 | $ | — | $ | — | |||||||
Restricted cash | 393,190 | 393,190 | — | — | |||||||||||
Mortgage loans held for sale | 1,480,537 | — | 1,480,537 | — | |||||||||||
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets | 238,907 | — | — | 220,755 | |||||||||||
Reverse mortgage interests | 750,273 | — | 805,650 | — | |||||||||||
Derivative financial instruments | 152,189 | — | 152,189 | — | |||||||||||
Financial liabilities: | |||||||||||||||
Notes payable | 3,601,586 | — | — | 3,601,586 | |||||||||||
Unsecured senior notes | 1,062,635 | 1,151,997 | — | — | |||||||||||
Derivative financial instruments | 20,026 | — | 20,026 | — | |||||||||||
Nonrecourse debt - Legacy assets | 100,620 | — | — | 102,492 | |||||||||||
Excess spread financing | 288,089 | — | — | 288,089 | |||||||||||
Participating interest financing | 580,836 | — | 593,741 | — |
Shares | Grant Date Fair Value | Remaining Contractual Term | |||
Restricted stock granted in conjunction with the initial public offering in March 2012 | 1,277 | $14.00 | 1.9 | ||
Grants issued subsequent to public offering | 69 | $29.95 | 2.1 | ||
Forfeited | (53) | ||||
Restricted stock outstanding at December 31, 2012 | 1,293 | ||||
Grants issued in March 2013 | 288 | $37.60 | 3.0 | ||
Forfeited | (16) | ||||
Shares returned to treasury to pay taxes | (162) | ||||
Restricted stock outstanding at March 31, 2013 | 1,403 | ||||
Restricted stock unvested and expected to vest | 923 | ||||
Restricted stock vested and payable at March 31, 2013 | — |
2013 | 2014 | 2015 | 2016 | |
Restricted stock expected to vest | 20 | 413 | 413 | 77 |
Three months ended March 31, 2013 | |||||||||||||||||||||||
Servicing | Originations | Operating Segments | Legacy Portfolio and Other | Eliminations | Consolidated | ||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Servicing fee income | $ | 206,460 | $ | — | $ | 206,460 | $ | 555 | $ | (9,419 | ) | $ | 197,596 | ||||||||||
Other fee income | 39,065 | 5,896 | 44,961 | (82 | ) | 44,879 | |||||||||||||||||
Total fee income | 245,525 | 5,896 | 251,421 | 473 | (9,419 | ) | 242,475 | ||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (98 | ) | 179,793 | 179,695 | (92 | ) | 8,984 | 188,587 | |||||||||||||||
Total revenues | 245,427 | 185,689 | 431,116 | 381 | (435 | ) | 431,062 | ||||||||||||||||
Total expenses and impairments | 147,609 | 111,902 | 259,511 | 9,060 | — | 268,571 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 13,380 | 10,979 | 24,359 | 4,814 | 435 | 29,608 | |||||||||||||||||
Interest expense | (71,321 | ) | (16,759 | ) | (88,080 | ) | (4,294 | ) | — | (92,374 | ) | ||||||||||||
Gain on interest rate swaps and caps | 795 | — | 795 | 473 | — | 1,268 | |||||||||||||||||
Total other income (expense) | (57,146 | ) | (5,780 | ) | (62,926 | ) | 993 | 435 | (61,498 | ) | |||||||||||||
Income (loss) before taxes | $ | 40,672 | $ | 68,007 | $ | 108,679 | $ | (7,686 | ) | $ | — | $ | 100,993 | ||||||||||
Depreciation and amortization | $ | 2,306 | $ | 816 | $ | 3,122 | $ | 779 | $ | — | $ | 3,901 | |||||||||||
Total assets | 6,378,129 | 2,155,114 | 8,533,243 | 352,322 | — | 8,885,565 |
Three months ended March 31, 2012 | |||||||||||||||||||||||
Servicing | Originations | Operating Segments | Legacy Portfolio and Other | Eliminations | Consolidated | ||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Servicing fee income | $ | 86,040 | $ | — | $ | 86,040 | $ | 617 | $ | (467 | ) | $ | 86,190 | ||||||||||
Other fee income | 7,419 | (19 | ) | 7,400 | (30 | ) | — | 7,370 | |||||||||||||||
Total fee income | 93,459 | (19 | ) | 93,440 | 587 | (467 | ) | 93,560 | |||||||||||||||
Gain on mortgage loans held for sale | — | 70,500 | 70,500 | — | 12 | 70,512 | |||||||||||||||||
Total revenues | 93,459 | 70,481 | 163,940 | 587 | (455 | ) | 164,072 | ||||||||||||||||
Total expenses and impairments | 59,230 | 28,474 | 87,704 | 8,883 | (10 | ) | 96,577 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 2,385 | 3,541 | 5,926 | 4,808 | 467 | 11,201 | |||||||||||||||||
Interest expense | (16,928 | ) | (3,777 | ) | (20,705 | ) | (4,253 | ) | (22 | ) | (24,980 | ) | |||||||||||
Loss on equity method investment | (117 | ) | — | (117 | ) | — | — | (117 | ) | ||||||||||||||
Gain (loss) on interest rate swaps and caps | 38 | — | 38 | (306 | ) | — | (268 | ) | |||||||||||||||
Total other income (expense) | (14,622 | ) | (236 | ) | (14,858 | ) | 249 | 445 | (14,164 | ) | |||||||||||||
Income (loss) before taxes | $ | 19,607 | $ | 41,771 | $ | 61,378 | $ | (8,047 | ) | $ | — | $ | 53,331 | ||||||||||
Depreciation and amortization | $ | 860 | $ | 382 | $ | 1,242 | $ | 289 | $ | — | $ | 1,531 | |||||||||||
Total assets | 1,402,327 | 512,418 | 1,914,745 | 264,017 | — | 2,178,762 |
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2013 (IN THOUSANDS) | |||||||||||||||||||||||
Assets | Nationstar Inc. | Issuer | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 209,286 | $ | 753 | $ | 10,000 | $ | — | $ | 220,039 | |||||||||||
Restricted cash | — | 194,768 | 18,769 | 146,930 | — | 360,467 | |||||||||||||||||
Accounts receivable, net | — | 3,410,255 | 7,666 | 196,906 | — | 3,614,827 | |||||||||||||||||
Mortgage loans held for sale | — | 1,703,709 | — | — | — | 1,703,709 | |||||||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net | — | 16,717 | — | 219,198 | — | 235,915 | |||||||||||||||||
Participating interest in reverse mortgages | — | 978,652 | — | — | — | 978,652 | |||||||||||||||||
Receivables from affiliates | — | — | 102,364 | 1,670,029 | (1,763,466 | ) | 8,927 | ||||||||||||||||
Mortgage servicing rights – fair value | — | 1,289,643 | — | — | — | 1,289,643 | |||||||||||||||||
Investment in subsidiaries | 799,342 | 174,679 | — | — | (974,021 | ) | — | ||||||||||||||||
Mortgage servicing rights – amortized cost | — | 10,941 | — | — | — | 10,941 | |||||||||||||||||
Property and equipment, net | — | 76,102 | 1,305 | — | — | 77,407 | |||||||||||||||||
REO, net | — | 12,791 | — | 2,696 | — | 15,487 | |||||||||||||||||
Other assets | 31,464 | 337,538 | 7,569 | — | (7,020 | ) | 369,551 | ||||||||||||||||
Total assets | $ | 830,806 | $ | 8,415,081 | $ | 138,426 | $ | 2,245,759 | $ | (2,744,507 | ) | $ | 8,885,565 | ||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||
Notes payable | $ | — | $ | 1,314,873 | $ | — | $ | 2,095,013 | $ | — | $ | 3,409,886 | |||||||||||
Unsecured senior notes | — | 1,669,146 | — | — | — | 1,669,146 | |||||||||||||||||
Payables and accrued liabilities | — | 1,525,800 | 7,853 | 3,265 | (7,020 | ) | 1,529,898 | ||||||||||||||||
Payables to affiliates | 6,554 | 1,756,912 | — | — | (1,763,466 | ) | — | ||||||||||||||||
Derivative financial instruments | — | 21,908 | — | 4,987 | — | 26,895 | |||||||||||||||||
Mortgage Servicing Liability | — | 82,931 | — | — | — | 82,931 | |||||||||||||||||
Nonrecourse debt–Legacy Assets | — | — | — | 98,388 | — | 98,388 | |||||||||||||||||
Excess spread financing - at fair value | — | 498,906 | — | — | — | 498,906 | |||||||||||||||||
Participating interest financing | — | 745,263 | — | — | — | 745,263 | |||||||||||||||||
Total liabilities | 6,554 | 7,615,739 | 7,853 | 2,201,653 | (1,770,486 | ) | 8,061,313 | ||||||||||||||||
Total stockholders’ equity | 824,252 | 799,342 | 130,573 | 44,106 | (974,021 | ) | 824,252 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 830,806 | $ | 8,415,081 | $ | 138,426 | $ | 2,245,759 | $ | (2,744,507 | ) | $ | 8,885,565 |
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS) | |||||||||||||||||||||||
Nationstar Inc. | Issuer | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Servicing fee income | $ | — | $ | 207,015 | $ | — | $ | — | $ | (9,419 | ) | $ | 197,596 | ||||||||||
Other fee income | — | 6,234 | 38,517 | 128 | — | 44,879 | |||||||||||||||||
Total fee income | — | 213,249 | 38,517 | 128 | (9,419 | ) | 242,475 | ||||||||||||||||
Gain on mortgage loans held for sale | — | 179,603 | — | — | 8,984 | 188,587 | |||||||||||||||||
Total Revenues | — | 392,852 | 38,517 | 128 | (435 | ) | 431,062 | ||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||
Salaries, wages and benefits | — | 128,588 | 6,399 | — | — | 134,987 | |||||||||||||||||
General and administrative | — | 116,403 | 9,239 | — | — | 125,642 | |||||||||||||||||
Provision for loan losses | — | — | — | 915 | — | 915 | |||||||||||||||||
Loss on foreclosed real estate and other | — | 296 | — | 796 | — | 1,092 | |||||||||||||||||
Occupancy | — | 5,784 | 151 | — | — | 5,935 | |||||||||||||||||
Total expenses and impairments | — | 251,071 | 15,789 | 1,711 | — | 268,571 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | — | 25,424 | — | 3,749 | 435 | 29,608 | |||||||||||||||||
Interest expense | — | (69,608 | ) | — | (22,766 | ) | — | (92,374 | ) | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | — | 263 | — | 1,005 | — | 1,268 | |||||||||||||||||
Gain/(loss) from subsidiaries | 62,616 | 3,133 | — | — | (65,749 | ) | — | ||||||||||||||||
Total other income (expense) | 62,616 | (40,788 | ) | — | (18,012 | ) | (65,314 | ) | (61,498 | ) | |||||||||||||
Income before taxes | 62,616 | 100,993 | 22,728 | (19,595 | ) | (65,749 | ) | 100,993 | |||||||||||||||
Income tax expense/(benefit) | — | 38,377 | — | — | — | 38,377 | |||||||||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 62,616 | $ | 62,616 | $ | 22,728 | $ | (19,595 | ) | $ | (65,749 | ) | $ | 62,616 |
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS) | |||||||||||||||||||||||
Nationstar Inc. | Issuer | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net income/(loss) | $ | 62,616 | $ | 62,616 | $ | 22,728 | $ | (19,595 | ) | $ | (65,749 | ) | $ | 62,616 | |||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||||||||||||||
(Gain)/loss from subsidiaries | (62,616 | ) | (3,133 | ) | — | — | 65,749 | — | |||||||||||||||
Share-based compensation | — | 2,858 | — | — | — | 2,858 | |||||||||||||||||
Provision for loan losses | — | — | — | 915 | — | 915 | |||||||||||||||||
Loss on foreclosed real estate and other | — | 296 | — | 796 | — | 1,092 | |||||||||||||||||
(Gain)/loss on ineffectiveness on interest rate swaps and cap | — | (263 | ) | — | (1,005 | ) | — | (1,268 | ) | ||||||||||||||
Fair value changes in excess spread financing | — | 23,891 | — | — | — | 23,891 | |||||||||||||||||
Depreciation and amortization | — | 3,850 | 51 | — | — | 3,901 | |||||||||||||||||
Change in fair value of mortgage servicing rights | — | 9,659 | — | — | — | 9,659 | |||||||||||||||||
Amortization/accretion of mortgage servicing rights at amortized cost | — | (275 | ) | — | — | — | (275 | ) | |||||||||||||||
Amortization (accretion) of premiums/discounts | — | 9,589 | — | (80 | ) | — | 9,509 | ||||||||||||||||
Gain on mortgage loans held for sale | — | (179,603 | ) | — | — | (8,984 | ) | (188,587 | ) | ||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (3,781,116 | ) | — | — | — | (3,781,116 | ) | |||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 3,682,566 | — | 3,309 | 8,984 | 3,694,859 | |||||||||||||||||
Net tax effect of stock grants | (2,660 | ) | — | — | — | — | (2,660 | ) | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, including servicing advances, net | — | 282,727 | (5,840 | ) | (195,793 | ) | — | 81,094 | |||||||||||||||
Receivables from/(payables to) affiliates | 6,584 | (320,843 | ) | 2,402 | 315,534 | — | 3,677 | ||||||||||||||||
Reverse mortgage funded advances | — | (178,181 | ) | — | — | — | (178,181 | ) | |||||||||||||||
Other assets | (2,690 | ) | 4,631 | (5,740 | ) | — | (5,477 | ) | (9,276 | ) | |||||||||||||
Payable and accrued liabilities | 2,660 | (127,198 | ) | 6,038 | 8,076 | 5,477 | (104,947 | ) | |||||||||||||||
Net cash provided by/(used in) operating activities | 3,894 | (507,929 | ) | 19,639 | 112,157 | — | (372,239 | ) |
Nationstar Inc. | Issuer | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||||
Investing activities: | |||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (5,761 | ) | (521 | ) | — | — | (6,282 | ) | ||||||||||||||
Deposit on reverse mortgage servicing rights, net | — | (50,198 | ) | — | — | — | (50,198 | ) | |||||||||||||||
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred | — | (266,625 | ) | — | — | — | (266,625 | ) | |||||||||||||||
Loan repurchases from Ginnie Mae | — | (8,815 | ) | — | — | — | (8,815 | ) | |||||||||||||||
Proceeds from sales of REO | — | 4,157 | — | — | — | 4,157 | |||||||||||||||||
Net cash used in investing activities | — | (327,242 | ) | (521 | ) | — | — | (327,763 | ) | ||||||||||||||
Financing activities: | |||||||||||||||||||||||
Issuance of Senior Unsecured Notes | — | 599,269 | — | — | — | 599,269 | |||||||||||||||||
Transfers to/from restricted cash | — | (49,111 | ) | (18,766 | ) | 100,600 | — | 32,723 | |||||||||||||||
Issuance of participating interest financing | — | 166,646 | — | — | — | 166,646 | |||||||||||||||||
Issuance of excess spread financing | — | 192,730 | — | — | — | 192,730 | |||||||||||||||||
Increase (decrease) in notes payable, net | — | 8,316 | — | (200,016 | ) | — | (191,700 | ) | |||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (2,612 | ) | — | (2,612 | ) | |||||||||||||||
Repayment of excess servicing spread financing | — | (20,881 | ) | — | — | — | (20,881 | ) | |||||||||||||||
Net tax benefit for stock grants issued | 2,660 | — | — | — | — | 2,660 | |||||||||||||||||
Contributions from joint venture members to noncontrolling interests | — | 4,990 | — | — | — | 4,990 | |||||||||||||||||
Redemption of shares for stock vesting | (6,554 | ) | — | — | — | — | (6,554 | ) | |||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | (129 | ) | — | (129 | ) | |||||||||||||||
Debt financing costs | — | (9,750 | ) | — | — | — | (9,750 | ) | |||||||||||||||
Net cash provided by/(used in) financing activities | (3,894 | ) | 892,209 | (18,766 | ) | (102,157 | ) | — | 767,392 | ||||||||||||||
Net increase/(decrease) in cash | — | 57,038 | 352 | 10,000 | — | 67,390 | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 152,248 | 401 | — | — | 152,649 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 209,286 | $ | 753 | $ | 10,000 | $ | — | $ | 220,039 |
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2012 (IN THOUSANDS) | |||||||||||||||||||||||
Nationstar Inc. | Issuer (Parent) | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 152,248 | $ | 401 | $ | — | $ | — | $ | 152,649 | |||||||||||
Restricted cash | — | 145,657 | 3 | 247,530 | — | 393,190 | |||||||||||||||||
Accounts receivable, net | — | 3,040,666 | 1,826 | 1,114 | — | 3,043,606 | |||||||||||||||||
Mortgage loans held for sale | — | 1,480,537 | — | — | — | 1,480,537 | |||||||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net | — | 14,700 | — | 224,207 | — | 238,907 | |||||||||||||||||
Participating interest in reverse mortgages | — | 750,273 | — | — | — | 750,273 | |||||||||||||||||
Receivables from affiliates | — | — | 92,373 | 1,983,997 | (2,063,766 | ) | 12,604 | ||||||||||||||||
Mortgage servicing rights – fair value | — | 635,860 | — | — | — | 635,860 | |||||||||||||||||
Investment in subsidiaries | 728,908 | 149,188 | — | — | (878,096 | ) | — | ||||||||||||||||
Mortgage servicing rights - amortized cost | — | 10,973 | — | — | — | 10,973 | |||||||||||||||||
Property and equipment, net | — | 74,191 | 835 | — | — | 75,026 | |||||||||||||||||
REO, net | — | 8,428 | — | 2,039 | — | 10,467 | |||||||||||||||||
Other assets | 28,774 | 303,737 | 1,829 | 1,847 | (14,136 | ) | 322,051 | ||||||||||||||||
Total assets | $ | 757,682 | $ | 6,766,458 | $ | 97,267 | $ | 2,460,734 | $ | (2,955,998 | ) | $ | 7,126,143 | ||||||||||
Liabilities and members’ equity | |||||||||||||||||||||||
Notes payable | $ | — | $ | 1,306,557 | $ | — | $ | 2,295,029 | $ | — | $ | 3,601,586 | |||||||||||
Unsecured senior notes | — | 1,062,635 | — | — | — | 1,062,635 | |||||||||||||||||
Payables and accrued liabilities | — | 640,369 | 1,815 | 3,383 | (14,136 | ) | 631,431 | ||||||||||||||||
Payables to affiliates | — | 2,063,766 | — | — | (2,063,766 | ) | — | ||||||||||||||||
Derivative financial instruments | — | 12,060 | — | 7,966 | 20,026 | ||||||||||||||||||
Mortgage Servicing Liability | — | 83,238 | — | — | — | 83,238 | |||||||||||||||||
Nonrecourse debt–Legacy Assets | — | — | — | 100,620 | — | 100,620 | |||||||||||||||||
Excess spread financing – fair value | — | 288,089 | — | — | — | 288,089 | |||||||||||||||||
Participating interest financing | — | 580,836 | — | — | — | 580,836 | |||||||||||||||||
Total liabilities | — | 6,037,550 | 1,815 | 2,406,998 | (2,077,902 | ) | 6,368,461 | ||||||||||||||||
Total members’ equity | 757,682 | 728,908 | 95,452 | 53,736 | (878,096 | ) | 757,682 | ||||||||||||||||
Total liabilities and members’ equity | $ | 757,682 | $ | 6,766,458 | $ | 97,267 | $ | 2,460,734 | $ | (2,955,998 | ) | $ | 7,126,143 |
NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS) | |||||||||||||||||||
Issuer | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Servicing fee income | $ | 84,171 | $ | — | $ | 2,486 | $ | (467 | ) | $ | 86,190 | ||||||||
Other fee income | — | 7,255 | 115 | — | 7,370 | ||||||||||||||
Total fee income | 84,171 | 7,255 | 2,601 | (467 | ) | 93,560 | |||||||||||||
Gain on mortgage loans held for sale | 70,512 | — | — | — | 70,512 | ||||||||||||||
Total Revenues | 154,683 | 7,255 | 2,601 | (467 | ) | 164,072 | |||||||||||||
Expenses and impairments: | |||||||||||||||||||
Salaries, wages and benefits | 59,583 | 2,082 | — | — | 61,665 | ||||||||||||||
General and administrative | 26,026 | 566 | 2,520 | — | 29,112 | ||||||||||||||
Provision for loan losses | 461 | — | 292 | — | 753 | ||||||||||||||
Loss on foreclosed real estate | — | — | 2,265 | — | 2,265 | ||||||||||||||
Occupancy | 2,782 | — | — | — | 2,782 | ||||||||||||||
Total expenses and impairments | 88,852 | 2,648 | 5,077 | — | 96,577 | ||||||||||||||
Other income / (expense): | |||||||||||||||||||
Interest income | 5,887 | — | 4,847 | 467 | 11,201 | ||||||||||||||
Interest expense | (18,195 | ) | — | (6,785 | ) | — | (24,980 | ) | |||||||||||
Loss on equity method investments | — | (117 | ) | — | — | (117 | ) | ||||||||||||
Gain/(loss) on interest rate swaps and caps | (306 | ) | — | 38 | — | (268 | ) | ||||||||||||
Gain / (loss) from subsidiaries | 114 | — | — | (114 | ) | — | |||||||||||||
Total other income / (expense) | (12,500 | ) | (117 | ) | (1,900 | ) | 353 | (14,164 | ) | ||||||||||
Income before taxes | 53,331 | 4,490 | (4,376 | ) | (114 | ) | 53,331 | ||||||||||||
Income tax expense/(benefit) | 21,273 | — | — | — | 21,273 | ||||||||||||||
Net Income | $ | 32,058 | $ | 4,490 | $ | (4,376 | ) | $ | (114 | ) | $ | 32,058 |
NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS) | ||||||||||||||||||||
Issuer (Parent) | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income/(loss) | $ | 32,058 | $ | 4,490 | $ | (4,376 | ) | $ | (114 | ) | $ | 32,058 | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||||||||||||||
(Gain)/loss from subsidiaries | (114 | ) | — | — | 114 | — | ||||||||||||||
Share-based compensation | 2,395 | — | — | — | 2,395 | |||||||||||||||
(Gain)/loss on sale of mortgage loans | (70,512 | ) | — | — | — | (70,512 | ) | |||||||||||||
Provision for loan losses | 461 | — | 292 | — | 753 | |||||||||||||||
Loss on foreclosed real estate and other | — | — | 2,265 | — | 2,265 | |||||||||||||||
Loss on equity method investments | 117 | — | — | — | 117 | |||||||||||||||
(Gain)/loss on ineffectiveness on interest rate swaps and cap | 306 | — | (38 | ) | — | 268 | ||||||||||||||
Fair value changes in excess spread financing | 4,852 | — | — | — | 4,852 | |||||||||||||||
Depreciation and amortization | 1,531 | — | — | — | 1,531 | |||||||||||||||
Change in fair value of mortgage servicing rights | (495 | ) | — | — | — | (495 | ) | |||||||||||||
Accretion of mortgage servicing liability | (633 | ) | — | — | — | (633 | ) | |||||||||||||
Amortization (accretion) of premiums/discounts | 2,685 | — | (763 | ) | — | 1,922 | ||||||||||||||
Mortgage loans originated and purchased, net of fees | (1,189,942 | ) | — | — | — | (1,189,942 | ) | |||||||||||||
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 1,297,338 | — | 5,758 | — | 1,303,096 | |||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable | (238,752 | ) | (10 | ) | 279,447 | — | 40,685 | |||||||||||||
Receivables from/(payables to) affiliates | 302,346 | (4,447 | ) | (297,093 | ) | — | 806 | |||||||||||||
Reverse funded advances due to securitization | (112,738 | ) | — | — | — | (112,738 | ) | |||||||||||||
Other assets | (5,620 | ) | — | — | — | (5,620 | ) | |||||||||||||
Accounts payable and accrued liaibilities | 98,546 | — | 28,779 | — | 127,325 | |||||||||||||||
Net cash provided by/(used in) operating activities | 123,829 | 33 | 14,271 | — | 138,133 |
Issuer (Parent) | Guarantor (Subsidiaries) | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | ||||||||||||||||
Investing activities: | ||||||||||||||||||||
Property and equipment additions, net of disposals | (2,564 | ) | — | — | — | (2,564 | ) | |||||||||||||
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred | (347 | ) | — | — | — | (347 | ) | |||||||||||||
Repurchases of REO from Ginnie Mae | (2,426 | ) | — | — | — | (2,426 | ) | |||||||||||||
Proceeds from sales of REO | 4,816 | — | (1,861 | ) | — | 2,955 | ||||||||||||||
Net cash provided by/(used in) investing activities | (521 | ) | — | (1,861 | ) | — | (2,382 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Transfers to/from restricted cash | (82,358 | ) | — | (8,593 | ) | — | (90,951 | ) | ||||||||||||
Issuance of participating interest financing | 115,438 | — | — | — | 115,438 | |||||||||||||||
Increase (decrease) in notes payable, net | (104,743 | ) | — | (682 | ) | — | (105,425 | ) | ||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | (3,135 | ) | — | (3,135 | ) | |||||||||||||
Repayment of excess servicing spread financing | (2,123 | ) | — | — | — | (2,123 | ) | |||||||||||||
Contribution of parent | 246,700 | — | — | — | 246,700 | |||||||||||||||
Debt financing costs | (2,706 | ) | — | — | — | (2,706 | ) | |||||||||||||
Net cash provided by/(used in) financing activities | 170,208 | — | (12,410 | ) | — | 157,798 | ||||||||||||||
Net increase/(decrease) in cash | 293,516 | 33 | — | — | 293,549 | |||||||||||||||
Cash and cash equivalents at beginning of period | 62,201 | 244 | — | — | 62,445 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 355,717 | $ | 277 | $ | — | $ | — | $ | 355,994 |
March 31, 2013 | December 31, 2012 | |||||
Consolidated Balance Sheets Data: | ||||||
Cash and cash equivalents | $ | 220,039 | $ | 152,649 | ||
Accounts receivable | 3,614,827 | 3,043,606 | ||||
Mortgage loans held for sale | 1,703,709 | 1,480,537 | ||||
Mortgage servicing rights (at fair value) | 1,289,643 | 635,860 | ||||
Total assets | 8,885,565 | 7,126,143 | ||||
Notes payable | 3,409,886 | 3,601,586 | ||||
Unsecured senior notes | 1,669,146 | 1,062,635 | ||||
Nonrecourse debt-legacy assets | 98,388 | 100,620 | ||||
Excess spread financing (at fair value) | 498,906 | 288,089 | ||||
Participating interest financing | 745,263 | 580,836 | ||||
Total liabilities | 8,061,313 | 6,368,461 | ||||
Total Nationstar equity | 819,262 | 757,682 |
Consolidated Statements of Operations and Comprehensive Income Data: | For the three months ended March 31, | ||||||
2013 | 2012 | ||||||
Total revenues | $ | 431,062 | $ | 164,072 | |||
Total expenses and impairments | 268,571 | 96,577 | |||||
Total other expense | (61,498 | ) | (14,164 | ) | |||
Income before taxes | 100,993 | 53,331 | |||||
Total income tax expense | 38,377 | 3,145 | |||||
Net income and comprehensive income | $ | 62,616 | $ | 50,186 | |||
Other Financial Data: | |||||||
Net cash provided by / (used in): | |||||||
Operating activities | $ | (372,239 | ) | $ | 135,283 | ||
Investing activities | (327,763 | ) | (2,382 | ) | |||
Financing activities | 767,392 | 160,648 | |||||
Adjusted EBITDA(1) (non-GAAP measure) | 178,235 | 77,243 | |||||
Operating Segments: | |||||||
Interest expense from unsecured senior notes | 30,690 | 8,542 | |||||
Change in fair value of mortgage servicing rights | 9,659 | (495 | ) | ||||
Depreciation and amortization | 3,528 | 1,242 | |||||
Share-based compensation | 2,858 | 2,395 |
(1) | Adjusted EBITDA is a key performance measure used by management in evaluating the performance of our segments. Adjusted EBITDA represents our Operating Segments' income, and excludes income and expenses that relate to the financing of the unsecured senior notes, depreciable (or amortizable) asset base of the business, income taxes, exit costs from our 2007 restructuring and certain non-cash items. Adjusted EBITDA also excludes results from our legacy asset portfolio. |
• | Financing arrangements for our Operating Segments are secured by assets that are allocated to these segments. Interest expense that relates to the financing of our unsecured senior notes is not considered in evaluating our operating performance because this obligation is serviced by the excess earnings from our Operating Segments after the debt obligations that are secured by their assets. |
• | To monitor operating costs of each Operating Segment excluding the impact from depreciation, amortization and fair value change of the asset base, exit costs from our restructuring and non-cash operating expense, such as share-based compensation. Operating costs are analyzed to manage costs per our operating plan and to assess staffing levels, implementation of technology based solutions, rent and other general and administrative costs. |
• | Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; |
• | Adjusted EBITDA does not reflect the cash requirements necessary to service principal payments related to the financing of the business; |
• | Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our corporate debt; |
• | although depreciation and amortization and changes in fair value of MSRs are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and |
• | other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
For the three months ended March 31, | |||||||
Net Income/(Loss) from Operating Segments to Adjusted EBITDA Reconciliation (dollars in thousands): | 2013 | 2012 | |||||
Net income (loss) | $ | 62,616 | $ | 50,186 | |||
Plus: | |||||||
Net loss from Legacy Portfolio and Other | 7,686 | 8,047 | |||||
Income tax expense | 38,377 | 3,145 | |||||
Income from Operating Segments | 108,679 | 61,378 | |||||
Adjust for: | |||||||
Interest expense from unsecured senior notes | 30,690 | 8,542 | |||||
Depreciation and amortization | 3,528 | 1,242 | |||||
Change in fair value of mortgage servicing rights | 9,659 | (495 | ) | ||||
Amortization of mortgage servicing rights/obligations - at amortized cost | (275 | ) | (633 | ) | |||
Share-based compensation | 2,858 | 2,395 | |||||
Fair value changes on excess spread financing | 23,891 | 4,852 | |||||
Fair value changes in derivatives | (795 | ) | (38 | ) | |||
Adjusted EBITDA | $ | 178,235 | $ | 77,243 |
March 31, 2013 | March 31, 2012 | ||||||
Servicing Portfolio (in millions) | |||||||
Unpaid principal balance (by investor): | |||||||
Special servicing | $ | 10,757 | $ | 9,295 | |||
Government-sponsored enterprises | 125,221 | 68,001 | |||||
Non-Agency securitizations | 50,892 | 18,137 | |||||
Total boarded forward servicing portfolio | 186,870 | 95,433 | |||||
Acquired Servicing Rights owned - serviced by others | 4,782 | — | |||||
Acquired Servicing Rights owned - serviced by predecessor | 92,590 | — | |||||
Total forward servicing portfolio | 284,242 | 95,433 | |||||
Reverse mortgage servicing | 28,242 | 7,853 | |||||
Total servicing portfolio unpaid principal balance | $ | 312,484 | $ | 103,286 |
Three months ended March 31, | 2013 (1) | 2012 | |||||
($ in millions, except for average loan amount) | |||||||
Loan count-servicing | 1,065,400 | 585,784 | |||||
Ending unpaid principal balance | $ | 186,870 | $ | 95,433 | |||
Average unpaid principal balance | $ | 180,403 | $ | 97,119 | |||
Average loan amount | $ | 175,399 | $ | 162,915 | |||
Average coupon | 5.28 | % | 5.35 | % | |||
Average FICO | 673 | 656 | |||||
60+ delinquent (% of loans) (2) | 12.7 | % | 11.9 | % | |||
Total prepayment speed (12 month constant pre-payment rate) | 16.7 | % | 13.9 | % |
(1) | 2013 characteristics and key performance metrics of our servicing portfolio exclude approximately $92.6 billion and approximately 644,610 units of forward residential mortgage loans acquired. These loans will be boarded later in 2013 and have been excluded from our key performance metrics above. Additionally, these characteristics and key performance metrics exclude forward residential mortgage servicing rights serviced by others. |
(2) | Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan. |
Three months ended March 31, | 2013 | ||
($ in millions, except for average loan amount) | |||
Loan count | 167,460 | ||
Ending unpaid principal balance | $ | 28,242 | |
Average loan amount | $ | 168,650 | |
Average coupon | 3.03 | % | |
Average borrower age | 76 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Servicing fee income | $ | 172,081 | $ | 60,707 | |||
Loss mitigation and performance-based incentive fees | 5,806 | 7,908 | |||||
Modification fees | 24,717 | 7,315 | |||||
Late fees and other ancillary charges | 11,593 | 7,637 | |||||
Master service fee | 3,062 | — | |||||
Reverse mortgage fees | 18,418 | 6,218 | |||||
Other servicing fee related revenues | 4,058 | (21 | ) | ||||
Total servicing fee income before MSR fair value adjustments | 239,735 | 89,764 | |||||
Fair value adjustments on excess spread financing | (23,891 | ) | (4,852 | ) | |||
Reverse mortgage servicing amortization/accretion | 275 | 633 | |||||
MSR fair value adjustments | (9,659 | ) | 495 | ||||
Total servicing fee income | $ | 206,460 | $ | 86,040 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Primary servicing | $ | 191,989 | $ | 49,641 | |||
Subservicing | 26,341 | 31,917 | |||||
Adjacent businesses | 2,987 | 1,988 | |||||
Reverse servicing | $ | 18,418 | 6,218 | ||||
Total servicing fee income before MSR fair value adjustments | $ | 239,735 | $ | 89,764 |
March 31, 2013 | March 31, 2012 | ||||||
UPB (in millions) | |||||||
Primary servicing | $ | 241,543 | $ | 45,320 | |||
Subservicing | 42,699 | 50,113 | |||||
Reverse servicing | 28,242 | 7,853 | |||||
Total unpaid principal balance | $ | 312,484 | $ | 103,286 |
• | Increase of $111.4 million due to higher average UPB on our forward servicing portfolio, which increased to $180.4 billion in the 2013 period compared to $97.1 billion in the comparable 2012 period. The increase in our servicing portfolio was primarily driven by an increase in average UPB for loans serviced for GSEs and other subservicing |
• | Decrease of $2.1 million due to decreased loss mitigation and performance-based incentive fees earned from a GSE. |
• | Increase of $17.4 million due to higher modification fees earned from HAMP and non-HAMP modifications. |
• | Increase of $4.0 million from increased collections from late fees and other ancillary charges. |
• | Increase of $12.2 million from fees earned from our reverse mortgage portfolio. |
• | Decrease of $10.2 million from change in fair value on MSRs which was recognized in servicing fee income. The fair value of our MSRs is based upon the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts, and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicing advances. The expected future cash flows are primarily impacted by prepayment estimates, delinquencies, and market discount rates. Generally, the value of MSRs increases when interest rates increase and decreases when interest rates decline due to the effect those changes in interest rates have on prepayment estimates. Other factors affecting the MSR value includes the estimated effects of loan modifications on expected cash flows. Such modifications tend to positively impact cash flows by extending the expected life of the affected MSR and potentially producing additional revenue opportunities depending on the type of modification. In valuing the MSRs, we believe our assumptions are consistent with the assumptions other major market participants use. These assumptions include a level of future modification activity that we believe major market participants would use in their valuation of MSRs. Internally, we have modification goals that exceed the assumptions utilized in our valuation model. Nevertheless, were we to apply an assumption of a level of future modifications consistent with our internal goals to our MSR valuation, we do not believe the resulting increase in value would be material. Additionally, several state attorneys general have previously requested that certain mortgage servicers, including us, suspend foreclosure proceedings pending internal review to ensure compliance with applicable law, and we received requests from four such state attorneys general. Although we have resumed those previously delayed proceedings, changes in the foreclosure process that may be required by government or regulatory bodies could increase the cost of servicing and diminish the value of our MSRs. We utilize assumptions of servicing costs that include delinquency and foreclosure costs that we believe major market participants would use to value their MSRs. We periodically compare our internal MSR valuation to third-party valuation of our MSRs to help substantiate our market assumptions. We have considered the costs related to the delayed proceedings in our assumptions and we do not believe that any resulting decrease in the MSR was material given the expected short-term nature of the issue. |
• | Decrease of $19.0 million from change in fair value of our excess spread financing arrangements. In conjunction with various MSR acquisitions, we have entered into sale and assignment agreements, which we treated as financings, whereby we sold the right to receive a portion of the excess cash flow generated from certain underlying MSR portfolios after receipt of a fixed basic servicing fee per loan. We measure these financing arrangements at fair value. |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Primary servicing | $ | 7,460 | $ | 2,477 | |||
Subservicing | — | 2,269 | |||||
Adjacent businesses | 31,606 | 2,673 | |||||
Total other fee income | $ | 39,066 | $ | 7,419 |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Primary servicing | $ | 95,026 | $ | 24,326 | |||
Subservicing | 33,399 | 27,210 | |||||
Reverse servicing | 12,707 | 1,913 | |||||
Adjacent businesses | 2,174 | 2,766 | |||||
Other Servicing Segment expenses | 4,303 | 3,015 | |||||
Total expenses and impairments | $ | 147,609 | $ | 59,230 |
• | Interest income was $13.4 million for the three months ended March 31, 2013 compared to $2.4 million for the three months ended March 31, 2012, an increase of $11.0 million, due in part to interest earned on our participating interests in reverse mortgages combined with accretion recognized related to discounts recorded on acquired servicer advances. During 2013, in conjunction with an MSR acquisition, we allocated a discount to the related acquired servicer advances. This discount is realized as the underlying servicer advances are collected. We recognized $6.1 million of the discount for the three month ended March 31, 2013 related to collections on the servicer advances. |
• | Interest expense was $71.3 million for the three months ended March 31, 2013 compared to $17.0 million for the three ended March 31, 2012, an increase of $54.3 million, or 319.4%, primarily due to higher average outstanding debt of $2,398.2 million for the three months ended March 31, 2013 compared to $623.8 million in the comparable 2012 period. The impact of the higher debt balances is partially offset by lower interest rates due to declines in the base LIBOR and decreases in the overall index margin on outstanding servicer advance facilities. Interest expense from the senior unsecured notes was $22.7 million and $8.5 million, for the three months ended March 31, 2013 and 2012, respectively. |
For the three months ended March 31, | |||||||
Originations Volume (in millions) | 2013 | 2012 | |||||
Retail | $ | 2,043.1 | $ | 673.4 | |||
Wholesale | 1,102.7 | 516.6 | |||||
Correspondent | 267.2 | — | |||||
Total Originations | $ | 3,413.0 | $ | 1,190.0 |
• | Other fee income was $5.9 million for the three months ended March 31, 2013 compared to $(19.0) thousand for the three months ended March 31, 2012, an increase of $5.9 million, primarily due to an increase in net points and fees collected of $15.9 million offset by an increase in broker fees paid of $9.6 million. |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
Gain on sale | $ | 139,130 | $ | 43,917 | |||
Provision for repurchases | (5,803 | ) | (3,005 | ) | |||
Capitalized servicing rights | 31,268 | 13,066 | |||||
Fair value mark-to-market adjustments | (6,934 | ) | (5,095 | ) | |||
Mark-to-market on derivatives/hedges | 22,132 | 21,617 | |||||
Total gain on mortgage loans held for sale | $ | 179,793 | $ | 70,500 |
• | Increase of $95.2 million from larger volume of originations, which increased to $3.4 billion in 2013 from $1.2 billion in 2012, and higher margins earned on the sale of residential mortgage loans during the period. |
• | Increase of $18.2 million from capitalized MSRs due to the larger volume of originations and subsequent retention of MSRs. |
• | Increase of $0.5 million from change in unrealized gains/losses on derivative financial instruments. These include IRLCs and forward sales of MBS. |
• | Decrease of $1.8 million resulting from the change in fair value on newly-originated loans. |
• | Decrease of $2.8 million from a larger provision for repurchases as a result of the increase in our loan sale volume. |
• | Increase of $42.5 million in salaries, wages and benefits expense from increase in average headcount of 1,800 in 2013 from 772 in 2012 and increases in performance-based compensation due to increases in originations volume. |
• | Increase of $42.6 million in general and administrative and occupancy expense primarily due to an increase in our overhead expenses from the higher originations volume in the 2013 period. |
• | Interest income was $11.0 million for the three months ended March 31, 2013 compared to $3.5 million for the three months ended March 31, 2012, an increase of $7.5 million, or 214.3%, representing interest earned from originated loans prior to sale or securitization. The increase is primarily due to the increase in the volume of originations. Loans are typically sold within 30 days of origination. |
• | Interest expense was $16.8 million for the three months ended March 31, 2013 compared to $3.8 million for the three months ended March 31, 2012, an increase of $13.0 million, or 342.1%, primarily due to an increase in originations volume in 2013 and associated financing required to originate these loans, combined with a slight increase in outstanding average days in warehouse on newly originated loans. Additionally, we recognized $8.0 million additional interest expense on senior unsecured notes. In the third quarter of 2012, we began allocating a portion of our interest expense from our unsecured senior notes to our originations segment to match the benefit this segment will receive from future portfolio acquisitions due to the ability to recapture portfolio runoff. |
March 31, | |||||||
2013 | 2,012 | ||||||
Performing – UPB | $ | 266,854 | $ | 285,648 | |||
Nonperforming (90+ Delinquency) - UPB | 81,968 | 85,790 | |||||
REO - Estimated Fair Value | 15,487 | 5,720 | |||||
Total Legacy Portfolio and Other – UPB | $ | 364,309 | $ | 377,158 |
Three Months Ended March 31, 2013 | Year Ended December 31, 2012 | ||||||
Repurchase reserves, beginning of period | $ | 18,511 | $ | 10,026 | |||
Additions | 5,541 | 13,121 | |||||
Charge-offs | (3,150 | ) | (4,636 | ) | |||
Repurchase reserves, end of period | $ | 20,902 | $ | 18,511 |
Three Months Ended March 31, 2013 | Year Ended December 31, 2012 | ||||||||||||
UPB | Count | UPB | Count | ||||||||||
Beginning balance | $ | 14.0 | 79 | $ | 12.9 | 61 | |||||||
Repurchases & indemnifications | (3.3 | ) | (24 | ) | (5.5 | ) | (26 | ) | |||||
Claims initiated | 15.6 | 87 | 24.3 | 132 | |||||||||
Rescinded | (5.3 | ) | (27 | ) | (17.7 | ) | (88 | ) | |||||
Ending Balance | $ | 21.0 | 115 | $ | 14.0 | 79 |
Three Months Ended March 31 | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | Total | |||||||||||||||||||||||||||||||||||
$ | Count | $ | Count | $ | Count | $ | Count | $ | Count | $ | Count | |||||||||||||||||||||||||||||
Loan Sales | $ | 3.4 | 14,321 | $ | 6.9 | 31,262 | $ | 3.3 | 16,629 | $ | 2.6 | 13,090 | $ | 1.0 | 5,344 | $ | 17.2 | 80,646 |
• | Decrease of $2,591.2 million due to higher originations volume combined with our purchases of mortgage loans held for sale. We originated and purchased $3,781.1 million in residential mortgage loans during the three month period ended March 31, 2013, compared to $1,189.9 million in mortgage originations and purchases for the comparable 2012 period. This decrease was partially offset by an increase of $2,391.8 million in our cash inflows from proceeds received from the sale of our residential mortgage loans and payments received on mortgage loans. We received $3,694.9 million in cash proceeds from loan sales and principal collections for the three month ended March 31, 2013, compared to $1,303.1 million for the comparable 2012 period. |
• | Increase of $260.6 million in cash outflows used by working capital which used $210.3 million for the three months ended March 31, 2013 compared to $29.5 million in cash inflow for the comparable 2012 period. |
• | an increase in interest rates would increase our costs of servicing our outstanding debt, including our ability to finance servicing advances; |
• | a decrease (increase) in interest rates would generally increase (decrease) prepayment rates and may require us to report a decrease (increase) in the value of our MSRs; |
• | a change in prevailing interest rates could impact our earnings from our custodial deposit accounts; and |
• | an increase in interest rates could generate an increase in delinquency, default and foreclosure rates resulting in an increase in both operating expenses and interest expense and could cause a reduction in the value of our assets. |
• | a substantial and sustained increase in prevailing interest rates could adversely affect our loan originations volume because refinancing an existing loan would be less attractive and qualifying for a loan may be more difficult; and |
• | an increase in interest rates would increase our costs of servicing our outstanding debt, including our ability to finance loan originations; |
Change in Fair Value | March 31, 2013 | ||||||
(in thousands) | Down 25 bps | Up 25 bps | |||||
Increase (decrease) in assets | |||||||
Mortgage loans held for sale | $ | 19,502 | $ | (21,927 | ) | ||
Mortgage servicing rights – fair value | (19,724 | ) | 20,745 | ||||
Other assets (derivatives) | |||||||
Interest Rate Lock Commitments | 31,986 | (43,322 | ) | ||||
Total change in assets | 31,764 | (44,504 | ) | ||||
Increase (decrease) in liabilities | |||||||
Derivative financial instruments | |||||||
Interest rate swaps and caps | (1,036 | ) | 1,032 | ||||
Forward MBS trades | 58,365 | (67,153 | ) | ||||
Excess spread financing (at fair value) | 2,443 | (2,374 | ) | ||||
Total change in liabilities | 59,772 | (68,495 | ) | ||||
Total, net change | $ | (28,008 | ) | $ | 23,991 |
Period | (a) Total Number of Shares (or Units) Purchased 1 | (b) Average Price Paid per Share (or Unit) | (b) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Appropriate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Program | ||||
January 1, 2013 - January 31, 2013 | — | — | — | — | ||||
February 1, 2013 - February 28, 2013 | — | — | — | — | ||||
March 1, 2013 - March 31, 2013 | 161,651 Shares | $ 41.11 | — | — | ||||
Total | 161,651 Shares | $ 41.11 | — | — |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
2.1+ | Mortgage Servicing Rights Purchase and Sale Agreement, dated as of January 6, 2013, between Nationstar Mortgage LLC and Bank of America, National Association | 8-K | 001-35449 | 2.1 | 1/10/2013 | |
4.1 | Indenture, dated as of February 7, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee | 8-K | 001-35449 | 4.1 | 2/7/2013 | |
4.2 | First Supplemental Indenture, dated as of March 26, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee | 8-K | 001-35449 | 4.2 | 3/26/2013 | |
4.3* | Amendment No. 4, dated March 7, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee | X | ||||
4.4* | Amendment No. 5, dated March 29, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee | X | ||||
4.5 | Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as servicer and as administrator, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.1 | 2/6/2013 | |
4.6 | Series 2013-VF1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.2 | 2/6/2013 | |
4.7 | Series 2013-T1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.3 | 2/6/2013 | |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
4.8 | Series 2013-T2 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.4 | 2/6/2013 | |
10.1 | Registration Rights Agreement, dated February 7, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Wells Fargo Securities, LLC and RBS Securities Inc., as representatives of the several initial purchasers | 8-K | 001-35449 | 10.1 | 2/7/2013 | |
10.2 | Registration Rights Agreement, dated March 26, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., and Wells Fargo Securities, LLC, as representatives of the several initial purchasers | 8-K | 001-35449 | 10.1 | 3/26/2013 | |
10.3 | Amended and Restated Receivables Pooling Agreement, dated January 31, 2013, between Nationstar Agency Advance Funding LLC (depositor) and Nationstar Agency Advance Funding Trust (issuer) | 8-K | 001-35449 | 10.5 | 2/6/2013 | |
10.4 | Amended and Restated Receivables Sale Agreement, dated January 31, 2013, between Nationstar Mortgage LLC (receivables seller and servicer) and Nationstar Agency Advance Funding LLC (depositor) | 8-K | 001-35449 | 10.6 | 2/6/2013 | |
10.5* | First Amendment, dated January 31, 2013, to the Addendum to Mortgage Selling and Servicing Contract (Early Advance Funding Agreement), dated December 20, 2012, between Fannie Mae and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.11 | 3/15/2013 | |
10.6 | Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC | 10-K | 001-35449 | 10.45 | 3/15/2013 | |
10.7 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC | 10-K | 001-35449 | 10.46 | 3/15/2013 | |
10.8 | Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC | 10-K | 001-35449 | 10.47 | 3/15/2013 | |
10.9 | Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC | 10-K | 001-35449 | 10.48 | 3/15/2013 | |
10.10 | Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC | 10-K | 001-35449 | 10.49 | 3/15/2013 | |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
10.11 | Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC | 10-K | 001-35449 | 10.50 | 3/15/2013 | |
10.12 | Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC | 10-K | 001-35449 | 10.51 | 3/15/2013 | |
10.13 | Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC | 10-K | 001-35449 | 10.52 | 3/15/2013 | |
10.14 | Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC | 10-K | 001-35449 | 10.53 | 3/15/2013 | |
10.15 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC | 10-K | 001-35449 | 10.54 | 3/15/2013 | |
10.16 | Amendment Number Five, dated January 30, 2013, to the Amended and Restated Master Repurchase Agreement, dated October 21, 2010, between Bank of America, N.A. and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.66 | 3/15/2013 | |
10.17* | Transaction Terms Letter for Amended and Restated Master Repurchase Agreement, dated January 30, 2013, between Bank of America, N.A. and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.67 | 3/15/2013 | |
10.18** | Employment Agreement between David Hisey and Nationstar Mortgage Holdings Inc. | 8-K | 001-35449 | 10.1 | 2/21/2013 | |
10.19** | Employment Agreement between Harold Lewis and Nationstar Mortgage Holdings Inc. | 10-K | 001-35449 | 10.73 | 3/15/2013 | |
10.20** | Employment Agreement between Ramesh Lakshminarayanan and Nationstar Mortgage Holdings Inc. | 10-K | 001-35449 | 10.74 | 3/15/2013 | |
10.21** | Form of Cash Award Agreement for Employees under the 2012 Incentive Compensation Plan | 10-K | 001-35449 | 10.80 | 3/15/2013 | |
10.22** | Nationstar Mortgage LLC Annual Incentive Compensation Plan | 10-K | 001-35449 | 10.81 | 3/15/2013 | |
31.1 | Certification by Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||
31.2 | Certification by Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||
32.1 | Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
32.2 | Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||
101.INS | XBRL Instance Document | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||
* | Certain portions of this exhibit have been omitted and have been filed separately with the SEC pursuant to a request for confidential treatment under Rule 24b-2 as promulgated with the Securities Exchange Act of 1934, as amended. |
** | Management contract, compensatory plan or arrangement. |
+ | Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby undertakes to furnish supplementally a copy of any referenced schedule to the SEC upon request. |
NATIONSTAR MORTGAGE HOLDINGS INC. | ||
May 7, 2013 | /s/ Jay Bray | |
Date | Jay Bray Chief Executive Officer (Principal Executive Officer) | |
May 7, 2013 | /s/ David C. Hisey | |
Date | David C. Hisey Chief Financial Officer (Principal Accounting and Financial Officer) |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
2.1+ | Mortgage Servicing Rights Purchase and Sale Agreement, dated as of January 6, 2013, between Nationstar Mortgage LLC and Bank of America, National Association | 8-K | 001-35449 | 2.1 | 1/10/2013 | |
4.1 | Indenture, dated as of February 7, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee | 8-K | 001-35449 | 4.1 | 2/7/2013 | |
4.2 | First Supplemental Indenture, dated as of March 26, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee | 8-K | 001-35449 | 4.2 | 3/26/2013 | |
4.3* | Amendment No. 4, dated March 7, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee | X | ||||
4.4* | Amendment No. 5, dated March 29, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee | X | ||||
4.5 | Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as servicer and as administrator, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.1 | 2/6/2013 | |
4.6 | Series 2013-VF1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.2 | 2/6/2013 | |
4.7 | Series 2013-T1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.3 | 2/6/2013 | |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
4.8 | Series 2013-T2 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent | 8-K | 001-35449 | 10.4 | 2/6/2013 | |
10.1 | Registration Rights Agreement, dated February 7, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Wells Fargo Securities, LLC and RBS Securities Inc., as representatives of the several initial purchasers | 8-K | 001-35449 | 10.1 | 2/7/2013 | |
10.2 | Registration Rights Agreement, dated March 26, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., and Wells Fargo Securities, LLC, as representatives of the several initial purchasers | 8-K | 001-35449 | 10.1 | 3/26/2013 | |
10.3 | Amended and Restated Receivables Pooling Agreement, dated January 31, 2013, between Nationstar Agency Advance Funding LLC (depositor) and Nationstar Agency Advance Funding Trust (issuer) | 8-K | 001-35449 | 10.5 | 2/6/2013 | |
10.4 | Amended and Restated Receivables Sale Agreement, dated January 31, 2013, between Nationstar Mortgage LLC (receivables seller and servicer) and Nationstar Agency Advance Funding LLC (depositor) | 8-K | 001-35449 | 10.6 | 2/6/2013 | |
10.5* | First Amendment, dated January 31, 2013, to the Addendum to Mortgage Selling and Servicing Contract (Early Advance Funding Agreement), dated December 20, 2012, between Fannie Mae and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.11 | 3/15/2013 | |
10.6 | Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC | 10-K | 001-35449 | 10.45 | 3/15/2013 | |
10.7 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC | 10-K | 001-35449 | 10.46 | 3/15/2013 | |
10.8 | Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC | 10-K | 001-35449 | 10.47 | 3/15/2013 | |
10.9 | Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC | 10-K | 001-35449 | 10.48 | 3/15/2013 | |
10.10 | Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC | 10-K | 001-35449 | 10.49 | 3/15/2013 | |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
10.11 | Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC | 10-K | 001-35449 | 10.5 | 3/15/2013 | |
10.12 | Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC | 10-K | 001-35449 | 10.51 | 3/15/2013 | |
10.13 | Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC | 10-K | 001-35449 | 10.52 | 3/15/2013 | |
10.14 | Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC | 10-K | 001-35449 | 10.53 | 3/15/2013 | |
10.15 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC | 10-K | 001-35449 | 10.54 | 3/15/2013 | |
10.16 | Amendment Number Five, dated January 30, 2013, to the Amended and Restated Master Repurchase Agreement, dated October 21, 2010, between Bank of America, N.A. and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.66 | 3/15/2013 | |
10.17* | Transaction Terms Letter for Amended and Restated Master Repurchase Agreement, dated January 30, 2013, between Bank of America, N.A. and Nationstar Mortgage LLC | 10-K | 001-35449 | 10.67 | 3/15/2013 | |
10.18** | Employment Agreement between David Hisey and Nationstar Mortgage Holdings Inc. | 8-K | 001-35449 | 10.1 | 2/21/2013 | |
10.19** | Employment Agreement between Harold Lewis and Nationstar Mortgage Holdings Inc. | 10-K | 001-35449 | 10.73 | 3/15/2013 | |
10.20** | Employment Agreement between Ramesh Lakshminarayanan and Nationstar Mortgage Holdings Inc. | 10-K | 001-35449 | 10.74 | 3/15/2013 | |
10.21** | Form of Cash Award Agreement for Employees under the 2012 Incentive Compensation Plan | 10-K | 001-35449 | 10.8 | 3/15/2013 | |
10.22** | Nationstar Mortgage LLC Annual Incentive Compensation Plan | 10-K | 001-35449 | 10.81 | 3/15/2013 | |
31.1 | Certification by Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||
31.2 | Certification by Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||
32.1 | Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||
32.2 | Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
101.INS | XBRL Instance Document | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||
* | Certain portions of this exhibit have been omitted and have been filed separately with the SEC pursuant to a request for confidential treatment under Rule 24b-2 as promulgated with the Securities Exchange Act of 1934, as amended. |
** | Management contract, compensatory plan or arrangement. |
+ | Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby undertakes to furnish supplementally a copy of any referenced schedule to the SEC upon request. |
Section 1. | Defined Terms. |
Section 2. | Amendments to the Indenture. |
Section 7. | Ratification of the Indenture. |
Section 8. | Successors and Assigns. |
Section 9. | Governing Law. |
Section 1. | Defined Terms. |
Section 2. | Amendments to the Indenture. |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013 of Nationstar Mortgage Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2013 | |||
/s/ Jay Bray | ||||
Jay Bray | ||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013 of Nationstar Mortgage Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 7, 2013 | |||
/s/ David C. Hisey | ||||
David C. Hisey | ||||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2013 | ||
/s/ Jay Bray | |||
Jay Bray | |||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 7, 2013 | |
/s/ David C. Hisey | ||
David C. Hisey | ||
Chief Financial Officer |
General and Administrative Expenses (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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General and Administrative Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and Administrative Expenses | General and administrative expenses consist of the following for the dates indicated (in thousands):
|
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale - beginning balance | $ 1,480,537 | $ 458,626 |
Mortgage loans originated and purchased, net of fees | 3,781,116 | 1,189,942 |
Cost of loans sold, net of fees | (3,549,535) | (1,270,007) |
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures | 8,409 | |
Transfer of mortgage loans held for sale to held for investment | 0 | |
Mortgage loans held for sale - ending balance | $ 1,703,709 | $ 378,561 |
Variable Interest Entities and Securitizations - Securitization Trusts (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
|
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Total mortgage servicing rights at fair value | $ 1,289,643 | $ 635,860 | |
Variable Interest Entity, Not Primary Beneficiary
|
|||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Total collateral balances | 4,031,005 | 4,134,513 | |
Total certificate balances | 4,039,553 | 4,136,316 | |
Total mortgage servicing rights at fair value | 32,922 | 30,940 | |
Principal Amount of Loans 60 Days or More Past Due | 1,179,325 | 936,006 | |
Credit Losses | $ 64,858 | $ 79,751 |
Indebtedness - Notes Payable Summary (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Debt Instrument | ||
Outstanding | $ 3,409,886 | $ 3,601,586 |
Collateral Pledged | 3,824,539 | 4,121,154 |
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility
|
||
Debt Instrument | ||
Outstanding | 174,965 | 185,817 |
Collateral Pledged | 192,278 | 206,622 |
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2011)
|
||
Debt Instrument | ||
Outstanding | 11,774 | 11,774 |
Collateral Pledged | 55,603 | 55,603 |
Servicing Segment | Notes Payable, Other | MSR Note
|
||
Debt Instrument | ||
Outstanding | 3,239 | 4,627 |
Collateral Pledged | 11,299 | 12,328 |
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member]
|
||
Debt Instrument | ||
Outstanding | 60,012 | 0 |
Collateral Pledged | 68,992 | 0 |
Servicing Segment | Notes Payable to Banks | ABS Advance Financing Facility (2010)
|
||
Debt Instrument | ||
Outstanding | 194,217 | 194,833 |
Collateral Pledged | 237,865 | 233,208 |
Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011-1)
|
||
Debt Instrument | ||
Outstanding | 575,035 | 476,091 |
Collateral Pledged | 608,663 | 549,284 |
Servicing Segment | Notes Payable to Banks | AW Agency Advance Financing Facility (2012)
|
||
Debt Instrument | ||
Outstanding | 0 | 100,000 |
Collateral Pledged | 0 | 135,343 |
Servicing Segment | Notes Payable to Banks | C ABS Advance Financing Facility (2012)
|
||
Debt Instrument | ||
Outstanding | 574,437 | 657,027 |
Collateral Pledged | 653,676 | 742,238 |
Servicing Segment | Notes Payable to Banks | R ABS Advance Financing Facility (2012)
|
||
Debt Instrument | ||
Outstanding | 326,821 | 374,739 |
Collateral Pledged | 376,374 | 428,758 |
Servicing Segment | Notes Payable to Banks | W ABS Advance Financing Facility (2012)
|
||
Debt Instrument | ||
Outstanding | 424,503 | 492,235 |
Collateral Pledged | 497,745 | 566,332 |
Servicing Segment | Notes Payable to Banks | Reverse Participations Financing Facility
|
||
Debt Instrument | ||
Outstanding | 104,799 | 65,943 |
Collateral Pledged | 127,424 | 76,455 |
Originations Segment | Notes Payable, Other | Warehouse Facility $300 Million
|
||
Debt Instrument | ||
Outstanding | 128,900 | |
Collateral Pledged | 133,081 | |
Originations Segment | Notes Payable, Other | Warehouse Facility $150 Million
|
||
Debt Instrument | ||
Outstanding | 224,790 | |
Collateral Pledged | 241,867 | |
Originations Segment | Notes Payable, Other | ASAP Plus Facility
|
||
Debt Instrument | ||
Outstanding | 57,329 | 124,572 |
Collateral Pledged | 55,704 | 124,596 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million [Member]
|
||
Debt Instrument | ||
Outstanding | 495,751 | |
Collateral Pledged | 517,002 | |
Originations Segment | Notes Payable to Banks | Warehouse Facility $375 Million
|
||
Debt Instrument | ||
Outstanding | 245,287 | |
Collateral Pledged | 285,281 | |
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million (2011) [Member]
|
||
Debt Instrument | ||
Outstanding | 197,257 | |
Originations Segment | Notes Payable to Banks | Warehouse Facility $250 Million (2011)
|
||
Debt Instrument | ||
Outstanding | 356,104 | |
Collateral Pledged | 204,617 | 371,836 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $300 Million (2009)
|
||
Debt Instrument | ||
Outstanding | 80,847 | |
Collateral Pledged | 84,216 | |
Originations Segment | Notes Payable to Banks | Warehouse Facility $100 Million (2009)
|
||
Debt Instrument | ||
Outstanding | 87,747 | |
Collateral Pledged | $ 91,403 |
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $ 235,915 | $ 238,907 | |
Mortgage Loans Held for Investment
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance | 348,822 | 354,154 | |
Transfer discount - accretable | (18,889) | (19,749) | (22,392) |
Transfer discount - non-accretable | (88,812) | (91,108) | |
Allowance for loan losses | (5,206) | (4,390) | (5,824) |
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $ 235,915 | $ 238,907 |
Indebtedness Indebtedness - Fair Value Sensitivity Analysis (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
Mar. 31, 2013
Excess Spread Financing
|
Dec. 31, 2012
Excess Spread Financing
|
Mar. 31, 2013
100 Basis Points
Excess Spread Financing
|
Dec. 31, 2012
100 Basis Points
Excess Spread Financing
|
Mar. 31, 2013
Two Hundred Basis Points [Member]
Excess Spread Financing
|
Dec. 31, 2012
Two Hundred Basis Points [Member]
Excess Spread Financing
|
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Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at March 31, 2013 and December 31, 2012 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | $ 16,647 | $ 7,978 | $ 31,505 | $ 16,404 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed | 43,956 | 10,654 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed | 63,970 | 22,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Expected Credit Losses | 9,144 | 5,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Expected Credit Losses | $ 13,937 | $ 11,075 |
Nature of Business, Basis of Presentation and Material Transaction Nature of Business, Basis of Presentation and Material Transaction (Details) (USD $)
|
0 Months Ended |
---|---|
Feb. 24, 2012
|
|
Schedule of Capitalization, Equity [Line Items] | |
Number of Direct Wholly-Owned Subsidiaries | 2 |
Common Stock
|
|
Schedule of Capitalization, Equity [Line Items] | |
Share Price | $ 14.00 |
Stock Issued During Period, Shares, New Issues | 19,166,667 |
Mortgage Loans Held for Sale and Investment (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Mortgage Loans Held for Sale and Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgage Loans Held-for-Sale | Mortgage loans held for sale consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the consolidated statements of cash flows for the dates indicated is presented in the following table (in thousands):
|
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Schedule of Loans Held for Investment | Mortgage loans held for investment, subject to nonrecourse debt—Legacy Assets, net as of the dates indicated include (in thousands):
|
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Changes in Accretable Yield on Mortgage Loans Held for Investment | The changes in accretable yield on loans transferred to mortgage loans held for investment, subject to nonrecourse debt- Legacy Assets were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | The changes in the allowance for loan losses on mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net were as follows (in thousands) for the dates indicated:
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Mortgage Loans by Credit Quality Indicator | The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators as of dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are greater than 90 days delinquent.
|
General and Administrative Expenses (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
General and Administrative Expense [Abstract] | ||
Servicing | $ 47,772 | $ 11,079 |
Outsourcing | 19,517 | 2,056 |
Professional Fees | 17,333 | 5,102 |
Loan Processing Fee | 11,564 | 1,065 |
Depreciation and amortization | 3,901 | 1,531 |
Postage | 3,850 | 1,314 |
Communications and Information Technology | 3,304 | 1,251 |
Travel | 3,229 | 821 |
Equipment | 3,167 | 1,320 |
Dues and Fees Expense | 2,870 | 918 |
Advertising Expense | 2,112 | 742 |
Stationary and Office Supplies | 1,558 | 994 |
Insurance, taxes, and other | 5,465 | 919 |
Total general and administrative expense | $ 125,642 | $ 29,112 |
Indebtedness - Unsecured Senior Notes (Details) (USD $)
|
3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Feb. 07, 2013
Notes Payable, Other
Senior Notes 6 Point 5 Percent Due 2021 [Member]
|
Mar. 31, 2013
Unsecured Senior Notes
|
Mar. 31, 2013
Unsecured Senior Notes
Unsecured Senior Notes 10.875% Due April 2015
|
Dec. 31, 2012
Unsecured Senior Notes
Unsecured Senior Notes 10.875% Due April 2015
|
Mar. 31, 2013
Unsecured Senior Notes
Unsecured Senior Notes 9.625% Due May 2019
|
Dec. 31, 2012
Unsecured Senior Notes
Unsecured Senior Notes 9.625% Due May 2019
|
Mar. 31, 2013
Unsecured Senior Notes
Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member]
|
Dec. 31, 2012
Unsecured Senior Notes
Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member]
|
Mar. 31, 2013
Unsecured Senior Notes
Unsecured Senior Notes Six Point Five Percent Due July 2021 [Member]
|
Mar. 31, 2013
March 2010 Issuance Period
Unsecured Senior Notes
Unsecured Senior Notes 10.875% Due April 2015
|
Mar. 31, 2013
Subsequent Event [Member]
Notes Payable, Other
Senior Notes 6 Point 5 Percent Due 2021 [Member]
|
Feb. 07, 2013
Subsequent Event [Member]
Notes Payable, Other
Senior Notes 6 Point 5 Percent Due 2021 [Member]
|
|
Debt Instrument | ||||||||||||||
Unsecured Debt | $ 1,669,146,000 | $ 1,062,635,000 | $ 282,046,000 | $ 281,676,000 | $ 379,896,000 | $ 380,232,000 | $ 400,704,000 | $ 400,727,000 | $ 606,500,000 | |||||
Principal amount | 1,660,000,000 | 285,000,000,000 | 375,000,000,000 | 400,000,000,000 | 600,000,000,000 | 200,000,000.0 | 400,000,000.0 | |||||||
Debt issuance premium | 6,500,000 | |||||||||||||
Net cash proceeds | $ 606,500,000 | |||||||||||||
Interest rate | 6.50% | 10.875% | 9.625% | 7.875% | 6.50% |
Indebtedness - Excess Spread Financing Debt (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Debt Instrument | ||
Excess spread financing at fair value | $ 498,906 | $ 288,089 |
Income Taxes Income Tax Expense (Benefit) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Current Federal Tax Expense (Benefit) | $ 21,851 | $ 2,794 |
Current State and Local Tax Expense (Benefit) | 2,681 | 351 |
Current Income Tax Expense (Benefit) | 24,532 | 3,145 |
Deferred Federal Income Tax Expense (Benefit) | 12,457 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | 1,388 | 0 |
Deferred Income Tax Expense (Benefit) | 13,845 | 0 |
Income Tax Expense (Benefit) | $ 38,377 | $ 3,145 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 38.00% | 5.90% |
Indebtedness - Participating Interest Financing (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2013
Participating Interest Financing
|
|
Debt Instrument | |||
Interest rate, minimum | 0.53% | ||
Interest rate, maximum | 7.17% | ||
Participating Interest Financing | $ 745,300,000 | $ 580,800,000 | |
Participating interest financing | $ 745,263,000 | $ 580,836,000 |
Indebtedness - Servicing Segment Notes Payable (Details) (USD $)
|
12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2012
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility
|
Apr. 01, 2013
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility
|
Mar. 31, 2013
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility
|
Mar. 31, 2013
Servicing Segment
Notes Payable, Other
Securities Repurchase Facility (2011)
|
Dec. 31, 2012
Servicing Segment
Notes Payable, Other
Securities Repurchase Facility (2011)
|
Oct. 31, 2009
Servicing Segment
Notes Payable, Other
MSR Note
|
Mar. 31, 2013
Servicing Segment
Notes Payable, Other
MSR Note
|
Dec. 31, 2012
Servicing Segment
Notes Payable, Other
MSR Note
|
Mar. 31, 2013
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility 2012 [Member]
|
Dec. 31, 2012
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility 2012 [Member]
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
Agency Advance Financing Facility (2011) [Member]
|
Jan. 31, 2013
Servicing Segment
Notes Payable to Banks
Agency Advance Financing Facility (2011) [Member]
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
Agency Advance Financing Facility (2011) [Member]
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
ABS Advance Financing Facility (2010)
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
ABS Advance Financing Facility (2010)
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
AW Agency Advance Financing Facility (2012)
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
AW Agency Advance Financing Facility (2012)
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
W ABS Advance Financing Facility (2012)
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
W ABS Advance Financing Facility (2012)
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
R ABS Advance Financing Facility (2012) [Member]
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
R ABS Advance Financing Facility (2012) [Member]
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
C ABS Advance Financing Facility (2012)
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
C ABS Advance Financing Facility (2012)
|
Mar. 31, 2013
Servicing Segment
Notes Payable to Banks
Reverse Participations Financing Facility
|
Dec. 31, 2012
Servicing Segment
Notes Payable to Banks
Reverse Participations Financing Facility
|
Mar. 31, 2013
Minimum
Servicing Segment
Notes Payable to Banks
MBS Advance Financing Facility
|
Mar. 31, 2013
Maximum
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility
|
Mar. 31, 2013
Maximum
Servicing Segment
Notes Payable to Banks
R ABS Advance Financing Facility (2012) [Member]
|
Mar. 31, 2013
Maximum
Servicing Segment
Notes Payable to Banks
C ABS Advance Financing Facility (2012)
|
Dec. 31, 2012
Borrowing Capacity in Period One [Member]
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility 2012 [Member]
|
Dec. 31, 2012
Borrowing Capacity in Period Two [Member]
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility 2012 [Member]
|
Dec. 31, 2012
Borrowing Capacity in Period Three [Member]
Servicing Segment
Notes Payable, Other
MBS Advance Financing Facility 2012 [Member]
|
|
Debt Instrument | ||||||||||||||||||||||||||||||||||
Term of agreement | 1 year | 4 years | ||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 775,000,000.0 | $ 325,000,000 | $ 600,000,000 | $ 300,000,000 | $ 100,000,000 | $ 500,000,000 | $ 400,000,000 | $ 700,000,000 | $ 150,000,000 | |||||||||||||||||||||||||
Extension period | 90 days | |||||||||||||||||||||||||||||||||
Variable interest rate basis | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | ||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 300,000,000.0 | |||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000,000 | 100,000,000 | 50,000,000 | |||||||||||||||||||||||||||||||
Collateral Pledged | $ 3,824,539,000 | $ 4,121,154,000 | $ 206,622,000 | $ 192,278,000 | $ 55,603,000 | $ 55,603,000 | $ 11,299,000 | $ 12,328,000 | $ 68,992,000 | $ 0 | $ 608,663,000 | $ 549,284,000 | $ 237,865,000 | $ 233,208,000 | $ 0 | $ 135,343,000 | $ 497,745,000 | $ 566,332,000 | $ 376,374,000 | $ 428,758,000 | $ 653,676,000 | $ 742,238,000 | $ 127,424,000 | $ 76,455,000 | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | 2.50% | 3.50% | 3.00% | 4.00% | 2.50% | 4.00% | 8.00% | 4.25% |
Business Segment Reporting
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Reporting | 19. Business Segment Reporting Nationstar currently conducts business in two separate operating segments: Servicing and Originations. The Servicing segment provides loan servicing on Nationstar’s total servicing portfolio, including the collection of principal and interest payments and the assessment of ancillary fees related to the servicing of mortgage loans. The Originations segment involves the origination, packaging, and sale of agency mortgage loans into the secondary markets via whole loan sales or securitizations. Nationstar reports the activity not related to either operating segment in the Legacy Portfolio and Other column. The Legacy Portfolio and Other column includes primarily all subprime mortgage loans originated in the latter portion of 2006 and during 2007 or acquired from Nationstar’s predecessor. Nationstar’s segments are based upon Nationstar’s organizational structure which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including total revenue contributions, personnel headcount, and the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties. To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables. The following tables are a presentation of financial information by segment for the periods indicated (in thousands):
|
Consolidated Statement of Cash Flows-Supplemental Disclosure (Details) (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 51,800,000 | $ 14,000,000 |
Income taxes paid | $ 46,100,000 | $ 0 |
Business Segment Reporting (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The following tables are a presentation of financial information by segment for the periods indicated (in thousands):
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Indebtedness - Legacy Assets (Details) (USD $)
In Millions, unless otherwise specified |
Nov. 30, 2009
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Mar. 31, 2013
Legacy Asset [Member]
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Dec. 31, 2012
Legacy Asset [Member]
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Mar. 31, 2013
Nonrecourse Debt-Legacy Assets
|
Dec. 31, 2012
Nonrecourse Debt-Legacy Assets
|
Mar. 31, 2013
Secured Debt
Nonrecourse Debt-Legacy Assets
|
Mar. 31, 2013
Securities Pledged as Collateral [Member]
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Dec. 31, 2012
Securities Pledged as Collateral [Member]
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---|---|---|---|---|---|---|---|---|
Debt Instrument | ||||||||
Nonrecourse Debt Legacy Assets | $ 98.4 | $ 100.6 | ||||||
Interest rate | 7.50% | |||||||
Unpaid principal balance on outstanding notes | 222.0 | 328.5 | 336.9 | |||||
Debt Instrument, Principal Amount Outstanding | $ 114.4 | $ 117.1 |
Derivative Financial Instruments (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated (in thousands):
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Accounts Receivable Accquired Servicing Advances (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Jun. 30, 2012
|
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Service Advances, Discount | $ 81.8 | |
Accretion of Service Advances Discount | $ 6.1 |
Other Assets - Equity Method Investment (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
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Schedule of Equity Method Investments [Line Items] | ||
Loss on equity method investments | $ 0 | $ 117 |
Variable Interest Entities and Securitizations
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Variable Interest Entities and Securitizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities and Securitizations | Variable Interest Entities and Securitizations Nationstar has been the transferor in connection with a number of securitizations or asset-backed financing arrangements, from which Nationstar has continuing involvement with the underlying transferred financial assets. Nationstar aggregates these securitizations or asset-backed financing arrangements into two groups: 1) securitizations of residential mortgage loans, that were accounted for as sales and 2) financings accounted for as secured borrowings. On securitizations of residential mortgage loans, Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee. Nationstar also maintains various agreements with special purpose entities (SPEs), under which Nationstar transfers mortgage loans and/or servicing advance receivables on residential mortgage loans in exchange for cash. These SPEs issue debt supported by collections on the transferred mortgage loans and/or servicing advance receivables. These transfers do not qualify for sale treatment because Nationstar continues to retain control over the transferred assets. As a result, Nationstar accounts for these transfers as financings and continues to carry the transferred assets and recognizes the related liabilities on Nationstar’s consolidated balance sheets. Collections on the mortgage loans and/or servicing advance receivables pledged to the SPEs are used to repay principal and interest and to pay the expenses of the entity. The holders of these beneficial interests issued by these SPEs do not have recourse to Nationstar and can only look to the assets of the SPEs themselves for satisfaction of the debt. A variable interest entity (VIE) is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests has both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Nationstar consolidates the SPEs created for the purpose of issuing debt supported by collections on loans and servicing advance receivables that have been transferred to the SPEs as VIEs, and Nationstar is the primary beneficiary of these VIEs. Nationstar consolidates the assets and liabilities of the VIEs into its consolidated financial statements. A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of March 31, 2013 and December 31, 2012 is presented in the following tables (in thousands):
A summary of the outstanding collateral and certificate balances for securitization trusts, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows (in thousands):
Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2013 or December 31, 2012, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below (in thousands):
Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows (in thousands):
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