INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| Equity Method Investments and Joint Ventures [Abstract] |
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| 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 |
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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 |
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| | (A) | In 2015, New Residential recorded a cumulative positive prior period adjustment of $2.7 million resulting from adjustments to certain modeling assumptions. |
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| 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 |
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| Original and Recaptured Pools | $ | 73,058,050 |
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| 66.7% |
| 50.0% |
| $ | 275,338 |
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| $ | 351,275 |
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| 5.7 | Recapture Agreements | — |
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| 66.7% |
| 50.0% |
| 45,421 |
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| 70,724 |
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| 11.9 | Total | $ | 73,058,050 |
| | | | | | $ | 320,759 |
| | $ | 421,999 |
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| 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). |
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| 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 | % |
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