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INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables)
 12 Months Ended
Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]  
Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees
The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential:
 
December 31,
 
2015
 
2014
Excess MSR assets
$
421,999

 
$
653,293

Other assets
12,442

 
8,472

Other liabilities
—

 
(13
)
Equity
$
434,441

 
$
661,752

New Residential’s investment
$
217,221

 
$
330,876

 
 
 
 
New Residential’s ownership
50.0
%
 
50.0
%

 
Year Ended December 31,
 
2015
 
2014
 
2013
Interest income
$
51,811

 
$
67,698

 
$
50,306

Other income (loss)
10,615

 
46,961

 
53,964

Expenses
(107
)
 
(99
)
 
(3,585
)
Net income
$
62,319

 
$
114,560

 
$
100,685


New Residential’s investments in equity method investees changed during the years ended December 31, 2015 and 2014 as follows:
 
2015
 
2014
Balance at beginning of period
$
330,876

 
$
352,766

Contributions to equity method investees
—

 
—

Transfers to direct ownership
(98,258
)
 
—

Distributions of earnings from equity method investees
(37,874
)
 
(53,427
)
Distributions of capital from equity method investees
(8,683
)
 
(25,743
)
Change in fair value of investments in equity method investees(A)
31,160

 
57,280

Balance at end of period
$
217,221

 
$
330,876



(A)
In 2015, New Residential recorded a cumulative positive prior period adjustment of $2.7 million resulting from adjustments to certain modeling assumptions.
Summary of Excess MSR Investments made through Equity Method Investees
The following is a summary of New Residential’s Excess MSR investments made through equity method investees:

December 31, 2015

Unpaid Principal Balance

Investee Interest in  Excess MSR(A)

New Residential Interest in Investees

Amortized Cost Basis(B)

Carrying Value(C)

Weighted Average Life (Years)(D)
Agency














Original and Recaptured Pools
$
73,058,050


66.7%

50.0%

$
275,338


$
351,275


5.7
Recapture Agreements
—


66.7%

50.0%

45,421


70,724


11.9
Total
$
73,058,050

 
 
 
 
 
$
320,759

 
$
421,999


6.6

 
December 31, 2014
 
Unpaid Principal Balance
 
Investee Interest in Excess MSR(A)
 
New Residential Interest in Investees
 
Amortized Cost Basis(B)
 
Carrying Value(C)
 
Weighted Average Life (Years)(D)
Agency
 
 
 
 
 
 
 
 
 
 
 
Original and Recaptured Pools
$
87,584,677

 
66.7%
 
50.0%
 
$
299,065

 
$
370,059

 
5.6
Recapture Agreements
—

 
66.7%
 
50.0%
 
67,136

 
86,756

 
11.7
 
87,584,677

 
 
 
 
 
366,201

 
456,815

 
6.7
Non-Agency(E)
 
 
 
 
 
 
 
 
 
 
 
Original and Recaptured Pools
58,673,144

 
66.7%-77.0%
 
50.0%
 
173,784

 
181,368

 
5.1
Recapture Agreements
—

 
66.7%-77.0%
 
50.0%
 
12,325

 
15,110

 
12.4
 
58,673,144

 
 
 
 
 
186,109

 
196,478

 
5.6
Total
$
146,257,821

 
 
 
 
 
$
552,310

 
$
653,293

 
6.3

(A)
The remaining interests are held by Nationstar.
(B)
Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired.
(C)
Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or recapture agreements, as applicable.
(D)
The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment.
(E)
Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR as of December 31, 2015 (Note 6).
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Excess MSR Investments made through Equity Method Investees
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees:
 
 
Percentage of Total Outstanding Unpaid Principal Amount
 
 
December 31,
State Concentration
 
2015
 
2014
California
 
12.9
%
 
23.5
%
Florida
 
7.4
%
 
8.9
%
Texas
 
6.1
%
 
4.8
%
New York
 
5.8
%
 
5.6
%
Georgia
 
5.7
%
 
4.1
%
New Jersey
 
4.3
%
 
3.9
%
Illinois
 
4.0
%
 
3.5
%
Maryland
 
3.2
%
 
3.3
%
Virginia
 
3.2
%
 
3.2
%
Pennsylvania
 
3.1
%
 
2.3
%
Other U.S.
 
44.3
%
 
36.9
%
 
 
100.0
%
 
100.0
%