New Residential Investment Corp. |
(Exact name of registrant as specified in its charter) |
Delaware | 45-3449660 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1345 Avenue of the Americas, New York, NY | 10105 | |
(Address of principal executive offices) | (Zip Code) |
(212) 798-3150 |
(Registrant’s telephone number, including area code) |
• | reductions in cash flows received from our investments; |
• | the quality and size of the investment pipeline and our ability to take advantage of investment opportunities at attractive risk-adjusted prices; |
• | servicer advances may not be recoverable or may take longer to recover than we expect, which could cause us to fail to achieve our targeted return on our investment in servicer advances; |
• | our ability to deploy capital accretively and the timing of such deployment; |
• | our counterparty concentration and default risks in Nationstar, Ocwen, OneMain and other third parties; |
• | a lack of liquidity surrounding our investments, which could impede our ability to vary our portfolio in an appropriate manner; |
• | the impact that risks associated with subprime mortgage loans and consumer loans, as well as deficiencies in servicing and foreclosure practices, may have on the value of our Excess MSRs, servicer advances, RMBS and loan portfolios; |
• | the risks that default and recovery rates on our Excess MSRs, servicer advances, real estate securities, residential mortgage loans and consumer loans deteriorate compared to our underwriting estimates; |
• | changes in prepayment rates on the loans underlying certain of our assets, including, but not limited to, our Excess MSRs; |
• | the risk that projected recapture rates on the loan pools underlying our Excess MSRs are not achieved; |
• | the relationship between yields on assets which are paid off and yields on assets in which such monies can be reinvested; |
• | the relative spreads between the yield on the assets in which we invest and the cost of financing; |
• | changes in economic conditions generally and the real estate and bond markets specifically; |
• | adverse changes in the financing markets we access affecting our ability to finance our investments on attractive terms, or at all; |
• | changing risk assessments by lenders that potentially lead to increased margin calls, not extending our repurchase agreements or other financings in accordance with their current terms or not entering into new financings with us; |
• | changes in interest rates and/or credit spreads, as well as the success of any hedging strategy we may undertake in relation to such changes; |
• | impairments in the value of the collateral underlying our investments and the relation of any such impairments to our judgments as to whether changes in the market value of our securities or loans are temporary or not and whether circumstances bearing on the value of such assets warrant changes in carrying values; |
• | the availability and terms of capital for future investments; |
• | competition within the finance and real estate industries; |
• | the legislative/regulatory environment, including, but not limited to, the impact of the Dodd-Frank Act, U.S. government programs intended to stabilize the economy, the federal conservatorship of Fannie Mae and Freddie Mac and legislation that permits modification of the terms of residential mortgage loans; |
• | our ability to maintain our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and the potentially onerous consequences that any failure to maintain such qualification would have on our business; |
• | our ability to maintain our exclusion from registration under the 1940 Act and the fact that maintaining such exclusion imposes limits on our operations; |
• | the risks related to HLSS liabilities that we have assumed; |
• | the impact of current or future legal proceedings and regulatory investigations and inquiries; |
• | the impact of any material transactions with FIG LLC (the “Manager”) or one of its affiliates, including the impact of any actual, potential or perceived conflicts of interest; and |
• | events, conditions or actions that might occur at Ocwen. |
• | should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements proved to be inaccurate; |
• | have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; |
• | may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and |
• | were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
PAGE | |
Part I. Financial Information | |
Part II. Other Information | |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(dollars in thousands, except share data) |
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | $ | 1,547,004 | $ | 1,581,517 | |||
Excess mortgage servicing rights, equity method investees, at fair value | 209,901 | 217,221 | |||||
Servicer advances, at fair value(A) | 7,001,004 | 7,426,794 | |||||
Real estate securities, available-for-sale | 3,441,790 | 2,501,881 | |||||
Residential mortgage loans, held-for-investment | 324,734 | 330,178 | |||||
Residential mortgage loans, held-for-sale | 633,160 | 776,681 | |||||
Real estate owned | 56,402 | 50,574 | |||||
Consumer loans, held-for-investment(A) | 1,970,565 | — | |||||
Cash and cash equivalents(A) | 258,622 | 249,936 | |||||
Restricted cash | 170,364 | 94,702 | |||||
Trades receivable | 1,509,016 | 1,538,481 | |||||
Deferred tax asset, net | 196,189 | 185,311 | |||||
Other assets | 253,026 | 239,446 | |||||
$ | 17,571,777 | $ | 15,192,722 | ||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Repurchase agreements | $ | 3,973,512 | $ | 4,043,054 | |||
Notes and bonds payable(A) | 8,870,851 | 7,249,568 | |||||
Trades payable | 1,431,003 | 725,672 | |||||
Due to affiliates | 5,847 | 23,785 | |||||
Dividends payable | 106,017 | 106,017 | |||||
Accrued expenses and other liabilities | 105,551 | 58,046 | |||||
14,492,781 | 12,206,142 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 230,471,202 and 230,471,202 issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 2,304 | 2,304 | |||||
Additional paid-in capital | 2,640,893 | 2,640,893 | |||||
Retained earnings | 154,519 | 148,800 | |||||
Accumulated other comprehensive income (loss) | (12,912 | ) | 3,936 | ||||
Total New Residential stockholders’ equity | 2,784,804 | 2,795,933 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 294,192 | 190,647 | |||||
Total Equity | 3,078,996 | 2,986,580 | |||||
$ | 17,571,777 | $ | 15,192,722 |
(A) | New Residential’s Condensed Consolidated Balance Sheets include the assets and liabilities of certain consolidated VIEs, the Buyer (Note 6) and the Consumer Loan SPVs (Note 9), which primarily hold investments in servicer advances and consumer loans, respectively, financed with notes and bonds payable. The Buyer’s balance sheet is included in Note 6 and the Consumer Loan SPVs’ balance sheet is included in Note 9. The creditors of the Buyer and the Consumer Loan SPVs do not have recourse to the general credit of New Residential and the assets of the Buyer and the Consumer Loan SPVs are not directly available to satisfy New Residential’s obligations. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
(dollars in thousands, except share data) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Interest income | $ | 190,036 | $ | 84,373 | |||
Interest expense | 81,228 | 33,979 | |||||
Net Interest Income | 108,808 | 50,394 | |||||
Impairment | |||||||
Other-than-temporary impairment (OTTI) on securities | 3,254 | 1,071 | |||||
Valuation and loss provision on loans and real estate owned | 6,745 | 977 | |||||
9,999 | 2,048 | ||||||
Net interest income after impairment | 98,809 | 48,346 | |||||
Other Income | |||||||
Change in fair value of investments in excess mortgage servicing rights | 7,926 | (1,761 | ) | ||||
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 3,022 | 4,921 | |||||
Change in fair value of investments in servicer advances | (31,224 | ) | (7,669 | ) | |||
Gain on consumer loans investment | 9,943 | 10,447 | |||||
Gain on remeasurement of consumer loans investment | 71,250 | — | |||||
Gain (loss) on settlement of investments, net | (14,500 | ) | 14,767 | ||||
Other income (loss), net | (14,495 | ) | (8,410 | ) | |||
31,922 | 12,295 | ||||||
Operating Expenses | |||||||
General and administrative expenses | 12,081 | 8,560 | |||||
Management fee to affiliate | 10,008 | 5,126 | |||||
Incentive compensation to affiliate | 1,196 | 3,693 | |||||
Loan servicing expense | 1,731 | 4,891 | |||||
25,016 | 22,270 | ||||||
Income Before Income Taxes | 105,715 | 38,371 | |||||
Income tax expense (benefit) | (10,223 | ) | (3,427 | ) | |||
Net Income | $ | 115,938 | $ | 41,798 | |||
Noncontrolling Interests in Income of Consolidated Subsidiaries | $ | 4,202 | $ | 5,823 | |||
Net Income Attributable to Common Stockholders | $ | 111,736 | $ | 35,975 | |||
Net Income Per Share of Common Stock | |||||||
Basic | $ | 0.48 | $ | 0.25 | |||
Diluted | $ | 0.48 | $ | 0.25 | |||
Weighted Average Number of Shares of Common Stock Outstanding | |||||||
Basic | 230,471,202 | 141,434,905 | |||||
Diluted | 230,538,712 | 144,911,309 | |||||
Dividends Declared per Share of Common Stock | $ | 0.46 | $ | 0.38 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) |
(dollars in thousands) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Comprehensive income (loss), net of tax | |||||||
Net income | $ | 115,938 | $ | 41,798 | |||
Other comprehensive income (loss) | |||||||
Net unrealized gain (loss) on securities | (19,969 | ) | 15,132 | ||||
Reclassification of net realized (gain) loss on securities into earnings | 3,121 | (23,626 | ) | ||||
(16,848 | ) | (8,494 | ) | ||||
Total comprehensive income | $ | 99,090 | $ | 33,304 | |||
Comprehensive income attributable to noncontrolling interests | $ | 4,202 | $ | 5,823 | |||
Comprehensive income attributable to common stockholders | $ | 94,888 | $ | 27,481 |
(dollars in thousands, except share data) |
Common Stock | ||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||
Equity - December 31, 2015 | 230,471,202 | $ | 2,304 | $ | 2,640,893 | $ | 148,800 | $ | 3,936 | $ | 2,795,933 | $ | 190,647 | $ | 2,986,580 | |||||||||||||||
Dividends declared | — | — | — | (106,017 | ) | — | (106,017 | ) | — | (106,017 | ) | |||||||||||||||||||
SpringCastle Transaction (Note 1) | — | — | — | — | — | — | 110,438 | 110,438 | ||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | (11,095 | ) | (11,095 | ) | ||||||||||||||||||||
Comprehensive income (loss) | ||||||||||||||||||||||||||||||
Net income | — | — | — | 111,736 | — | 111,736 | 4,202 | 115,938 | ||||||||||||||||||||||
Net unrealized gain (loss) on securities | — | — | — | — | (19,969 | ) | (19,969 | ) | — | (19,969 | ) | |||||||||||||||||||
Reclassification of net realized (gain) loss on securities into earnings | — | — | — | — | 3,121 | 3,121 | — | 3,121 | ||||||||||||||||||||||
Total comprehensive income | 94,888 | 4,202 | 99,090 | |||||||||||||||||||||||||||
Equity - March 31, 2016 | 230,471,202 | $ | 2,304 | $ | 2,640,893 | $ | 154,519 | $ | (12,912 | ) | $ | 2,784,804 | $ | 294,192 | $ | 3,078,996 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
(dollars in thousands) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash Flows From Operating Activities | |||||||
Net income | $ | 115,938 | $ | 41,798 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Change in fair value of investments in excess mortgage servicing rights | (7,926 | ) | 1,761 | ||||
Change in fair value of investments in excess mortgage servicing rights, equity method investees | (3,022 | ) | (4,921 | ) | |||
Change in fair value of investments in servicer advances | 31,224 | 7,669 | |||||
(Gain) / loss on settlement of investments (net) | 14,500 | (17,701 | ) | ||||
Loss on extinguishment of debt | — | 2,934 | |||||
(Gain) on remeasurement of consumer loans investment | (71,250 | ) | — | ||||
Unrealized loss on derivative instruments | 22,303 | 7,030 | |||||
Unrealized (gain) / loss on other ABS | (268 | ) | 290 | ||||
(Gain) / loss on transfer of loans to REO | (2,483 | ) | 544 | ||||
(Gain) on transfer of loans to other assets | (687 | ) | (11 | ) | |||
(Gain) on Excess MSR recapture agreements | (732 | ) | (730 | ) | |||
Accretion and other amortization | (153,670 | ) | (61,345 | ) | |||
Other-than-temporary impairment | 3,254 | 1,071 | |||||
Valuation and loss provision on loans and real estate owned | 6,745 | 977 | |||||
Deferred tax provision | (10,681 | ) | (3,007 | ) | |||
Changes in: | |||||||
Restricted cash | (1,058 | ) | 1,093 | ||||
Other assets | 19,067 | (1,838 | ) | ||||
Due to affiliates | (17,938 | ) | (50,959 | ) | |||
Accrued expenses and other liabilities | 15,872 | 618 | |||||
Other operating cash flows: | |||||||
Interest received from excess mortgage servicing rights | 43,990 | 12,692 | |||||
Interest received from servicer advance investments | 50,229 | 23,168 | |||||
Interest received from Non-Agency RMBS | 29,449 | 8,050 | |||||
Interest payments from residential mortgage loans, held-for-investment | 437 | — | |||||
Distributions of earnings from excess mortgage servicing rights, equity method investees | 9,754 | 12,226 | |||||
Purchases of residential mortgage loans, held-for-sale | (173,270 | ) | — | ||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 231,390 | — | |||||
Principal repayments from purchased residential mortgage loans, held-for-sale | 18,186 | 3,178 | |||||
Net cash provided by (used in) operating activities | 169,353 | (15,413 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED |
(dollars in thousands) |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Cash Flows From Investing Activities | |||||
Acquisition of investments in excess mortgage servicing rights | (2,022 | ) | (23,831 | ) | |
SpringCastle Transaction (Note 1), net of cash acquired | (49,943 | ) | — | ||
Purchase of servicer advance investments | (3,844,638 | ) | (1,765,294 | ) | |
Purchase of Agency RMBS | (1,684,194 | ) | (1,026,525 | ) | |
Purchase of Non-Agency RMBS | (314,547 | ) | (26,649 | ) | |
Purchase of residential mortgage loans | (319 | ) | (19,032 | ) | |
Purchase of derivatives | (1,355 | ) | — | ||
Purchase of real estate owned | (9,196 | ) | — | ||
Payments for settlement of derivatives | (33,553 | ) | (25,007 | ) | |
Return of investments in excess mortgage servicing rights | 42,149 | 17,122 | |||
Return of investments in excess mortgage servicing rights, equity method investees | 588 | 202 | |||
Principal repayments from servicer advance investments | 4,267,612 | 1,802,188 | |||
Principal repayments from Agency RMBS | 18,426 | 46,967 | |||
Principal repayments from Non-Agency RMBS | 48,014 | 14,952 | |||
Principal repayments from residential mortgage loans | 8,754 | 5,844 | |||
Proceeds from sale of residential mortgage loans | — | 627,719 | |||
Proceeds from sale of Agency RMBS | 1,727,673 | 1,060,569 | |||
Proceeds from sale of Non-Agency RMBS | 38,471 | 389,719 | |||
Proceeds from settlement of derivatives | 1,837 | 2,417 | |||
Proceeds from sale of real estate owned | 8,142 | 34,930 | |||
Net cash provided by (used in) investing activities | 221,899 | 1,116,291 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED |
(dollars in thousands) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash Flows From Financing Activities | |||||||
Repayments of repurchase agreements | (5,062,857 | ) | (2,016,777 | ) | |||
Margin deposits under repurchase agreements and derivatives | (106,952 | ) | (123,289 | ) | |||
Repayments of notes and bonds payable | (1,894,548 | ) | (396,125 | ) | |||
Payment of deferred financing fees | (5,555 | ) | (666 | ) | |||
Common stock dividends paid | (106,017 | ) | (53,745 | ) | |||
Borrowings under repurchase agreements | 4,993,318 | 1,121,121 | |||||
Return of margin deposits under repurchase agreements and derivatives | 98,138 | 145,378 | |||||
Borrowings under notes and bonds payable | 1,713,002 | 482,334 | |||||
Issuance of common stock | — | — | |||||
Costs related to issuance of common stock | — | — | |||||
Noncontrolling interest in equity of consolidated subsidiaries - contributions | — | — | |||||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (11,095 | ) | (12,760 | ) | |||
Net cash provided by (used in) financing activities | (382,566 | ) | (854,529 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 8,686 | 246,349 | |||||
Cash and Cash Equivalents, Beginning of Period | 249,936 | 212,985 | |||||
Cash and Cash Equivalents, End of Period | $ | 258,622 | $ | 459,334 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Cash paid during the period for interest | $ | 75,690 | $ | 32,880 | |||
Cash paid during the period for income taxes | 265 | 305 | |||||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||||||
Dividends declared but not paid | $ | 106,017 | $ | 53,745 | |||
Reclassification resulting from the application of ASU No. 2014-11 | — | 85,955 | |||||
Purchase of investments, primarily RMBS, settled after quarter end | 1,431,003 | 196,000 | |||||
Sale of Agency RMBS settled after quarter end | 1,509,016 | — | |||||
Transfer from residential mortgage loans to real estate owned and other assets | 36,485 | — | |||||
Non-cash contingent consideration | 5,581 | — | |||||
Non-cash distributions from Consumer Loan Companies | 25 | — | |||||
Real estate securities retained from loan securitizations | 36,902 | — | |||||
Remeasurement of Consumer Loan Companies noncontrolling interest | 110,438 | — |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Total Consideration ($ in millions) | $ | 237.5 | |
Assets | |||
Consumer loans, held-for-investment | $ | 1,970.6 | |
Cash and cash equivalents | 0.3 | ||
Restricted cash | 74.6 | ||
Total Assets Acquired | $ | 2,045.5 | |
Liabilities | |||
Notes and bonds payable | 1,803.2 | ||
Accrued expenses and other liabilities | 4.8 | ||
Total Liabilities Assumed | $ | 1,808.0 | |
Net Assets | $ | 237.5 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(unaudited) | (unaudited) | ||||||
Pro Forma | |||||||
Interest Income | $ | 238,464 | $ | 148,263 | |||
Income Before Income Taxes | 55,294 | 136,837 | |||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | 17,834 | 24,040 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Unrealized gain (loss) on derivative instruments | $ | (22,303 | ) | $ | (7,030 | ) | |
Unrealized gain (loss) on other ABS | 268 | (290 | ) | ||||
Gain (loss) on transfer of loans to REO | 2,483 | (544 | ) | ||||
Gain on Excess MSR recapture agreements | 732 | 730 | |||||
Other income (loss) | 4,325 | (1,276 | ) | ||||
$ | (14,495 | ) | $ | (8,410 | ) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Gain (loss) on sale of real estate securities, net | $ | 16,133 | $ | 24,697 | |||
Gain (loss) on sale of residential mortgage loans, net | 109 | 20,830 | |||||
Gain (loss) on settlement of derivatives | (32,633 | ) | (22,590 | ) | |||
Gain (loss) on liquidated residential mortgage loans | — | 400 | |||||
Gain (loss) on sale of REO | 151 | (5,636 | ) | ||||
Other gains (losses) | 1,740 | (2,934 | ) | ||||
$ | (14,500 | ) | $ | 14,767 |
Other Assets | Accrued Expenses and Other Liabilities | ||||||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2016 | December 31, 2015 | ||||||||||||||
Margin receivable, net | $ | 63,273 | $ | 54,459 | Interest payable | $ | 19,988 | $ | 18,268 | ||||||||
Other receivables | 16,305 | 10,893 | Accounts payable | 37,826 | 18,650 | ||||||||||||
Principal paydown receivable | 822 | 795 | Derivative liabilities (Note 10) | 34,942 | 13,443 | ||||||||||||
Receivable from government agency | 75,514 | 68,833 | Current taxes payable | 2,180 | 1,573 | ||||||||||||
Call rights | 414 | 414 | Other liabilities | 10,615 | 6,112 | ||||||||||||
Derivative assets (Note 10) | 1,720 | 2,689 | $ | 105,551 | $ | 58,046 | |||||||||||
Interest receivable | 38,431 | 36,963 | |||||||||||||||
Ginnie Mae EBO servicer advance receivable, net | 44,652 | 49,725 | |||||||||||||||
Other assets | 11,895 | 14,675 | |||||||||||||||
$ | 253,026 | $ | 239,446 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Accretion of servicer advance interest income | $ | 78,637 | $ | 42,349 | ||||
Accretion of excess mortgage servicing rights income | 42,968 | 15,037 | ||||||
Accretion of net discount on securities and loans(A) | 37,128 | 5,399 | ||||||
Amortization of deferred financing costs | (4,785 | ) | (1,440 | ) | ||||
Amortization of discount on notes and bonds payable | (278 | ) | — | |||||
$ | 153,670 | $ | 61,345 |
(A) | Includes accretion of the accretable yield on PCD loans. |
Servicing Related Assets | Residential Securities and Loans | ||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | |||||||||||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||
Interest income | $ | 42,968 | $ | 80,967 | $ | 45,913 | $ | 19,493 | $ | 1 | $ | 694 | $ | 190,036 | |||||||||||||
Interest expense | 2,934 | 63,075 | 7,484 | 7,390 | 345 | — | 81,228 | ||||||||||||||||||||
Net interest income (expense) | 40,034 | 17,892 | 38,429 | 12,103 | (344 | ) | 694 | 108,808 | |||||||||||||||||||
Impairment | — | — | 3,254 | 6,745 | — | — | 9,999 | ||||||||||||||||||||
Other income | 11,693 | (27,391 | ) | (36,461 | ) | 2,873 | 81,193 | 15 | 31,922 | ||||||||||||||||||
Operating expenses | 232 | 994 | 461 | 4,334 | 1,604 | 17,391 | 25,016 | ||||||||||||||||||||
Income (Loss) Before Income Taxes | 51,495 | (10,493 | ) | (1,747 | ) | 3,897 | 79,245 | (16,682 | ) | 105,715 | |||||||||||||||||
Income tax expense (benefit) | — | (10,002 | ) | — | (221 | ) | — | — | (10,223 | ) | |||||||||||||||||
Net Income (Loss) | $ | 51,495 | $ | (491 | ) | $ | (1,747 | ) | $ | 4,118 | $ | 79,245 | $ | (16,682 | ) | $ | 115,938 | ||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ | — | $ | 4,202 | $ | — | $ | — | $ | — | $ | — | $ | 4,202 | |||||||||||||
Net income (loss) attributable to common stockholders | $ | 51,495 | $ | (4,693 | ) | $ | (1,747 | ) | $ | 4,118 | $ | 79,245 | $ | (16,682 | ) | $ | 111,736 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Servicing Related Assets | Residential Securities and Loans | ||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | |||||||||||||||||||||
March 31, 2016 | |||||||||||||||||||||||||||
Investments | $ | 1,756,905 | $ | 7,432,012 | $ | 3,010,782 | $ | 1,014,296 | $ | 1,970,565 | $ | — | $ | 15,184,560 | |||||||||||||
Cash and cash equivalents | 919 | 198,116 | 670 | 11,753 | 1,670 | 45,494 | 258,622 | ||||||||||||||||||||
Restricted cash | 1,235 | 94,525 | — | — | 74,604 | — | 170,364 | ||||||||||||||||||||
Other assets | 14 | 207,255 | 1,579,924 | 121,524 | 2,050 | 47,464 | 1,958,231 | ||||||||||||||||||||
Total assets | $ | 1,759,073 | $ | 7,931,908 | $ | 4,591,376 | $ | 1,147,573 | $ | 2,048,889 | $ | 92,958 | $ | 17,571,777 | |||||||||||||
Debt | $ | 181,602 | $ | 7,372,351 | $ | 2,616,625 | $ | 836,370 | $ | 1,837,415 | $ | — | $ | 12,844,363 | |||||||||||||
Other liabilities | 437 | 24,625 | 1,469,071 | 21,233 | 12,250 | 120,802 | 1,648,418 | ||||||||||||||||||||
Total liabilities | 182,039 | 7,396,976 | 4,085,696 | 857,603 | 1,849,665 | 120,802 | 14,492,781 | ||||||||||||||||||||
Total equity | 1,577,034 | 534,932 | 505,680 | 289,970 | 199,224 | (27,844 | ) | 3,078,996 | |||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | — | 183,754 | — | — | 110,438 | — | 294,192 | ||||||||||||||||||||
Total New Residential stockholders’ equity | $ | 1,577,034 | $ | 351,178 | $ | 505,680 | $ | 289,970 | $ | 88,786 | $ | (27,844 | ) | $ | 2,784,804 | ||||||||||||
Investments in equity method investees | $ | 209,901 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 209,901 |
Servicing Related Assets | Residential Securities and Loans | ||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest income | $ | 15,037 | $ | 42,349 | $ | 14,263 | $ | 12,724 | $ | — | $ | — | $ | 84,373 | |||||||||||||
Interest expense | 769 | 23,637 | 3,480 | 6,093 | — | — | 33,979 | ||||||||||||||||||||
Net interest income (expense) | 14,268 | 18,712 | 10,783 | 6,631 | — | — | 50,394 | ||||||||||||||||||||
Impairment | — | — | 1,071 | 977 | — | — | 2,048 | ||||||||||||||||||||
Other income | 3,890 | (10,727 | ) | (5,090 | ) | 13,775 | 10,447 | — | 12,295 | ||||||||||||||||||
Operating expenses | 88 | 575 | (102 | ) | 6,104 | 57 | 15,548 | 22,270 | |||||||||||||||||||
Income (Loss) Before Income Taxes | 18,070 | 7,410 | 4,724 | 13,325 | 10,390 | (15,548 | ) | 38,371 | |||||||||||||||||||
Income tax expense (benefit) | — | (3,240 | ) | — | (187 | ) | — | — | (3,427 | ) | |||||||||||||||||
Net Income (Loss) | $ | 18,070 | $ | 10,650 | $ | 4,724 | $ | 13,512 | $ | 10,390 | $ | (15,548 | ) | $ | 41,798 | ||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ | — | $ | 5,823 | $ | — | $ | — | $ | — | $ | — | $ | 5,823 | |||||||||||||
Net income (loss) attributable to common stockholders | $ | 18,070 | $ | 4,827 | $ | 4,724 | $ | 13,512 | $ | 10,390 | $ | (15,548 | ) | $ | 35,975 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Servicer | ||||||||||||||||
Nationstar | SLS(A) | Ocwen(B) | Total | |||||||||||||
Balance as of December 31, 2015 | $ | 698,304 | $ | 5,307 | $ | 877,906 | $ | 1,581,517 | ||||||||
Purchases | — | — | — | — | ||||||||||||
Interest income | 19,435 | (7 | ) | 23,540 | 42,968 | |||||||||||
Other income | 732 | — | — | 732 | ||||||||||||
Proceeds from repayments | (37,676 | ) | (272 | ) | (48,191 | ) | (86,139 | ) | ||||||||
Change in fair value | 3,527 | (57 | ) | 4,456 | 7,926 | |||||||||||
Balance as of March 31, 2016 | $ | 684,322 | $ | 4,971 | $ | 857,711 | $ | 1,547,004 |
(A) | Specialized Loan Servicing LLC (“SLS”). |
(B) | Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), services the loans underlying the Excess MSRs and Servicer Advances acquired from HLSS. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis(B) | Carrying Value(C) | Carrying Value(C) | |||||||||||||||||||||
New Residential | Fortress-managed funds | Nationstar | ||||||||||||||||||||||||
Agency | ||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 90,119,338 | 32.5% - 66.7% | 0.0% - 40.0% | 20.0% - 35.0% | 5.9 | $ | 325,508 | $ | 367,004 | $ | 378,083 | ||||||||||||||
Recapture Agreements | — | 32.5% - 66.7% | 0.0% - 40.0% | 20.0% - 35.0% | 12.2 | 34,348 | 58,896 | 59,118 | ||||||||||||||||||
90,119,338 | 6.5 | 359,856 | 425,900 | 437,201 | ||||||||||||||||||||||
Non-Agency(D) | ||||||||||||||||||||||||||
Nationstar and SLS Serviced: | ||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 91,277,078 | 33.3% - 80.0% | 0.0% - 50.0% | 0.0% - 33.3% | 5.3 | $ | 205,633 | $ | 247,957 | $ | 250,662 | ||||||||||||||
Recapture Agreements | — | 33.3% - 80.0% | 0.0% - 50.0% | 0.0% - 33.3% | 12.3 | 13,641 | 15,436 | 15,748 | ||||||||||||||||||
Ocwen Serviced Pools | 136,143,859 | 100.0 | % | — | % | — | % | 6.3 | 811,778 | 857,711 | 877,906 | |||||||||||||||
227,420,937 | 6.2 | 1,031,052 | 1,121,104 | 1,144,316 | ||||||||||||||||||||||
Total | $ | 317,540,275 | 6.3 | $ | 1,390,908 | $ | 1,547,004 | $ | 1,581,517 |
(A) | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
(B) | 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) | Carrying Value represents the fair value of the pools or recapture agreements, as applicable. |
(D) | Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR as of March 31, 2016 (Note 6). |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Original and Recaptured Pools | $ | 5,697 | $ | (1,976 | ) | |||
Recapture Agreements | 2,229 | 215 | ||||||
$ | 7,926 | $ | (1,761 | ) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||
State Concentration | March 31, 2016 | December 31, 2015 | ||||
California | 26.7 | % | 26.7 | % | ||
Florida | 8.9 | % | 8.9 | % | ||
New York | 7.9 | % | 7.8 | % | ||
Texas | 4.3 | % | 4.3 | % | ||
New Jersey | 4.1 | % | 4.1 | % | ||
Maryland | 3.8 | % | 3.8 | % | ||
Illinois | 3.4 | % | 3.4 | % | ||
Virginia | 3.1 | % | 3.1 | % | ||
Washington | 2.7 | % | 2.7 | % | ||
Massachusetts | 2.7 | % | 2.7 | % | ||
Other U.S. | 32.4 | % | 32.5 | % | ||
100.0 | % | 100.0 | % |
March 31, 2016 | December 31, 2015 | |||||||
Excess MSR assets | $ | 404,863 | $ | 421,999 | ||||
Other assets | 14,939 | 12,442 | ||||||
Other liabilities | — | — | ||||||
Equity | $ | 419,802 | $ | 434,441 | ||||
New Residential’s investment | $ | 209,901 | $ | 217,221 | ||||
New Residential’s ownership | 50.0 | % | 50.0 | % |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Interest income | $ | 8,081 | $ | 11,701 | ||||
Other income (loss) | (2,014 | ) | (1,835 | ) | ||||
Expenses | (23 | ) | (25 | ) | ||||
Net income | $ | 6,044 | $ | 9,841 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Balance at December 31, 2015 | $ | 217,221 | |
Contributions to equity method investees | — | ||
Distributions of earnings from equity method investees | (9,754 | ) | |
Distributions of capital from equity method investees | (588 | ) | |
Change in fair value of investments in equity method investees | 3,022 | ||
Balance at March 31, 2016 | $ | 209,901 |
March 31, 2016 | |||||||||||||||||||
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 | $ | 70,087,028 | 66.7 | % | 50.0 | % | $ | 264,544 | $ | 336,113 | 5.7 | ||||||||
Recapture Agreements | — | 66.7 | % | 50.0 | % | 41,563 | 68,750 | 11.8 | |||||||||||
Total | $ | 70,087,028 | $ | 306,107 | $ | 404,863 | 6.6 |
(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. |
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||
State Concentration | March 31, 2016 | December 31, 2015 | ||||
California | 12.8 | % | 12.9 | % | ||
Florida | 7.3 | % | 7.4 | % | ||
Texas | 6.1 | % | 6.1 | % | ||
New York | 5.9 | % | 5.8 | % | ||
Georgia | 5.7 | % | 5.7 | % | ||
New Jersey | 4.3 | % | 4.3 | % | ||
Illinois | 4.0 | % | 4.0 | % | ||
Maryland | 3.2 | % | 3.2 | % | ||
Virginia | 3.2 | % | 3.2 | % | ||
Pennsylvania | 3.1 | % | 3.1 | % | ||
Other U.S. | 44.4 | % | 44.3 | % | ||
100.0 | % | 100.0 | % |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | |||||||||||
March 31, 2016 | |||||||||||||||
Servicer Advances(C) | $ | 7,005,501 | $ | 7,001,004 | 5.5 | % | 5.3 | % | 4.5 | ||||||
As of December 31, 2015 | |||||||||||||||
Servicer Advances(C) | $ | 7,400,068 | $ | 7,426,794 | 5.6 | % | 5.5 | % | 4.4 |
(A) | Carrying value represents the fair value of the investments in Servicer Advances, including the basic fee component of the related MSRs. |
(B) | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. |
(C) | Excludes New Residential asset-backed securities collateralized by Servicer Advances, which have aggregate face amounts of $431.0 million and $431.0 million and aggregate carrying values of $431.0 million and $430.3 million as of March 31, 2016 and December 31, 2015, respectively. See Note 7 for details related to these securities. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Changes in Fair Value Recorded in Other Income | $ | (31,224 | ) | $ | (7,669 | ) |
Loan-to-Value(A) | Cost of Funds(C) | ||||||||||||||||||||||||||
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Face Amount of Notes and Bonds Payable | Gross | Net(B) | Gross | Net | ||||||||||||||||||||
March 31, 2016 | |||||||||||||||||||||||||||
Servicer Advances(D) | $ | 212,135,668 | $ | 7,203,924 | 3.4 | % | $ | 6,880,413 | 93.9 | % | 92.8 | % | 3.4 | % | 2.7 | % | |||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
Servicer Advances(D) | $ | 220,256,804 | $ | 7,578,110 | 3.4 | % | $ | 7,058,094 | 91.2 | % | 90.2 | % | 3.4 | % | 2.6 | % |
(A) | Based on outstanding Servicer Advances, excluding purchased but unsettled Servicer Advances and certain deferred servicing fees (“DSF”) on which New Residential receives financing. If New Residential were to include these DSF in the servicer advance balance, gross and net LTV as of March 31, 2016 would be 89.4% and 88.4%, respectively. Also excludes retained non-agency bonds with a current face amount of $175.8 million from the outstanding Servicer Advances debt. If New Residential were to sell these bonds, gross and net LTV as of March 31, 2016 would be 96.3% and 95.2%, respectively. |
(B) | Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. |
(C) | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
(D) | The following types of advances comprise the investments in Servicer Advances: |
March 31, 2016 | December 31, 2015 | |||||||
Principal and interest advances | $ | 2,016,073 | $ | 2,229,468 | ||||
Escrow advances (taxes and insurance advances) | 3,504,808 | 3,687,559 | ||||||
Foreclosure advances | 1,683,043 | 1,661,083 | ||||||
Total | $ | 7,203,924 | $ | 7,578,110 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Interest income, gross of amounts attributable to servicer compensation | $ | 227,288 | $ | 63,357 | ||||
Amounts attributable to base servicer compensation | (29,509 | ) | (6,601 | ) | ||||
Amounts attributable to incentive servicer compensation | (119,142 | ) | (14,407 | ) | ||||
Interest income from investments in Servicer Advances | $ | 78,637 | $ | 42,349 |
As of | ||||||||
March 31, 2016 | December 31, 2015 | |||||||
Assets | ||||||||
Servicer advance investments, at fair value | 2,263,311 | $ | 2,344,245 | |||||
Cash and cash equivalents | 31,711 | 40,761 | ||||||
All other assets | 25,711 | 25,092 | ||||||
Total assets(A) | $ | 2,320,733 | $ | 2,410,098 | ||||
Liabilities | ||||||||
Notes and bonds payable | $ | 1,982,944 | $ | 2,060,347 | ||||
All other liabilities | 6,574 | 6,111 | ||||||
Total liabilities(A) | $ | 1,989,518 | $ | 2,066,458 |
(A) | The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. |
March 31, 2016 | December 31, 2015 | |||||||
Total Advance Purchaser LLC equity | $ | 331,215 | $ | 343,640 | ||||
Others’ ownership interest | 55.5 | % | 55.5 | % | ||||
Others’ interest in equity of consolidated subsidiary | $ | 183,754 | $ | 190,647 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net Advance Purchaser LLC income | $ | 7,575 | $ | 10,496 | ||||
Others’ ownership interest as a percent of total(A) | 55.5 | % | 55.5 | % | ||||
Others’ interest in net income of consolidated subsidiaries | $ | 4,202 | $ | 5,823 |
(A) | As a result, New Residential owned 44.5% and 44.5% of the Buyer, on average during the three months ended March 31, 2016 and 2015, respectively. |
Three Months Ended March 31, 2016 | |||||||
(in millions) | |||||||
Agency | Non Agency | ||||||
Purchases | |||||||
Face | $ | 2,216.7 | $ | 1,032.1 | |||
Purchase Price | $ | 2,300.3 | $ | 443.1 | |||
Sales | |||||||
Face | $ | 1,632.6 | $ | 59.9 | |||
Amortized Cost | $ | 1,673.7 | $ | 51.9 | |||
Sale Price | $ | 1,698.3 | $ | 43.4 | |||
Gain (Loss) on Sale | $ | 24.6 | $ | (8.5 | ) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon(C) | Yield | Life (Years)(D) | Principal Subordination(E) | Carrying Value | ||||||||||||||||||||||||||||
Agency RMBS(F) (G) | $ | 1,450,299 | $ | 1,524,194 | $ | 531 | $ | (1,522 | ) | $ | 1,523,203 | 39 | AAA | 3.39 | % | 1.95 | % | 6.1 | N/A | $ | 917,598 | |||||||||||||||||||
Non-Agency RMBS(H) (I) | 4,316,034 | 1,928,849 | 21,699 | (31,961 | ) | 1,918,587 | 280 | BB- | 1.70 | % | 5.23 | % | 7.5 | 11.2 | % | 1,584,283 | ||||||||||||||||||||||||
Total/ Weighted Average | $ | 5,766,333 | $ | 3,453,043 | $ | 22,230 | $ | (33,483 | ) | $ | 3,441,790 | 319 | BBB+ | 2.42 | % | 3.78 | % | 6.9 | $ | 2,501,881 |
(A) | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. |
(B) | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying 84 bonds with a carrying value of $341.6 million which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. |
(C) | Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $220.5 million and $0.0 million, respectively, for which no coupon payment is expected. |
(D) | The weighted average life is based on the timing of expected principal reduction on the assets. |
(E) | Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding interest-only bonds and servicer advance bonds. |
(F) | Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. |
(G) | The total outstanding face amount was $1.3 billion for fixed rate securities and $175.7 million for floating rate securities as of March 31, 2016. |
(H) | The total outstanding face amount was $2.4 billion (including $1.8 billion of residual and interest-only notional amount) for fixed rate securities and $1.9 billion (including $229.9 million of residual and interest-only notional amount) for floating rate securities as of March 31, 2016. |
(I) | Includes other ABS consisting primarily of (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and (ii) bonds backed by servicer advances. |
Gross Unrealized | Weighted Average | ||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value | Number of Securities | Rating | Coupon | Yield | Life (Years) | Principal Subordination | ||||||||||||||||||||||||
Other ABS | $ | 1,723,191 | $ | 102,192 | $ | 6,028 | $ | (4,412 | ) | $ | 103,808 | 16 | A+ | 2.21 | % | 6.21 | % | 5.1 | N/A | ||||||||||||||||
Servicer Advance Bonds | $ | 431,000 | $ | 430,754 | $ | 306 | $ | (103 | ) | $ | 430,957 | 5 | AA+ | 2.69 | % | 2.44 | % | 0.8 | N/A |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Amortized Cost Basis | Weighted Average | ||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Impairment | Other-Than- Temporary Impairment(A) | After Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating(B) | Coupon | Yield | Life (Years) | ||||||||||||||||||||||||||
Less than 12 Months | $ | 2,296,736 | $ | 1,054,378 | $ | (3,070 | ) | $ | 1,051,308 | $ | (31,030 | ) | $ | 1,020,278 | 131 | B+ | 1.35 | % | 5.30 | % | 9.0 | ||||||||||||||||
12 or More Months | 202,132 | 166,905 | (184 | ) | 166,721 | (2,453 | ) | 164,268 | 31 | AA- | 2.38 | % | 1.87 | % | 6.7 | ||||||||||||||||||||||
Total/Weighted Average | $ | 2,498,868 | $ | 1,221,283 | $ | (3,254 | ) | $ | 1,218,029 | $ | (33,483 | ) | $ | 1,184,546 | 162 | BB- | 1.50 | % | 4.83 | % | 8.6 |
(A) | This amount represents OTTI recorded on securities that are in an unrealized loss position as of March 31, 2016. |
(B) | The weighted average rating of securities in an unrealized loss position for less than 12 months excludes the rating of 24 bonds which either have never been rated or for which rating information is no longer provided. The weighted average rating of securities in an unrealized loss position for 12 or more months excludes the rating of 2 bonds which either have never been rated or for which rating information is no longer provided. |
March 31, 2016 | |||||||||||||||
Gross Unrealized Losses | |||||||||||||||
Fair Value | Amortized Cost Basis After Impairment | Credit(A) | Non-Credit(B) | ||||||||||||
Securities New Residential intends to sell(C) | $ | — | $ | — | $ | — | $ | — | |||||||
Securities New Residential is more likely than not to be required to sell(D) | — | — | — | N/A | |||||||||||
Securities New Residential has no intent to sell and is not more likely than not to be required to sell: | |||||||||||||||
Credit impaired securities | 274,970 | 279,440 | (3,254 | ) | (4,470 | ) | |||||||||
Non-credit impaired securities | 909,576 | 938,589 | — | (29,013 | ) | ||||||||||
Total debt securities in an unrealized loss position | $ | 1,184,546 | $ | 1,218,029 | $ | (3,254 | ) | $ | (33,483 | ) |
(A) | This amount is required to be recorded as OTTI through earnings. In measuring the portion of credit losses, New Residential estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include New Residential’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. |
(B) | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. |
(C) | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment and, therefore, do not have unrealized losses reflected in other comprehensive income as of March 31, 2016. |
(D) | New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Three Months Ended March 31, 2016 | |||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ | 6,239 | |
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income | 1,276 | ||
Additions for credit losses on securities for which an OTTI was not previously recognized | 1,978 | ||
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | ||
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | — | ||
Reduction for securities sold during the period | (284 | ) | |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ | 9,209 |
March 31, 2016 | December 31, 2015 | |||||||||||||
Geographic Location(A) | Outstanding Face Amount | Percentage of Total Outstanding | Outstanding Face Amount | Percentage of Total Outstanding | ||||||||||
Western U.S. | $ | 1,338,979 | 34.4 | % | $ | 1,097,609 | 35.3 | % | ||||||
Southeastern U.S. | 946,470 | 24.3 | % | 758,167 | 24.4 | % | ||||||||
Northeastern U.S. | 757,277 | 19.5 | % | 583,366 | 18.8 | % | ||||||||
Midwestern U.S. | 452,917 | 11.7 | % | 335,406 | 10.8 | % | ||||||||
Southwestern U.S. | 382,954 | 9.9 | % | 309,236 | 10.0 | % | ||||||||
Other(B) | 6,437 | 0.2 | % | 19,189 | 0.7 | % | ||||||||
$ | 3,885,034 | 100.0 | % | $ | 3,102,973 | 100.0 | % |
(A) | Excludes $431.0 million face amount of bonds backed by servicer advances. |
(B) | Represents collateral for which New Residential was unable to obtain geographic information. |
Outstanding Face Amount | Carrying Value | ||||||
March 31, 2016 | $ | 1,381,005 | $ | 758,726 | |||
December 31, 2015 | 873,763 | 504,659 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Three Months Ended March 31, 2016 | |||
Balance at December 31, 2015 | $ | 316,521 | |
Additions | 224,428 | ||
Accretion | (18,362 | ) | |
Reclassifications from (to) non-accretable difference | (13,662 | ) | |
Disposals | 4,855 | ||
Balance at March 31, 2016 | $ | 513,780 |
• | Loans Held-for-Investment: |
◦ | Reverse Mortgage Loans |
◦ | Performing Loans |
◦ | Purchased Credit Deteriorated (“PCD”) Loans |
• | Loans Held-for-Sale (“HFS”) |
• | Real Estate Owned (REO) |
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | Floating Rate Loans as a % of Face Amount | Loan to Value Ratio (“LTV”)(B) | Weighted Avg. Delinquency(C) | Weighted Average FICO(D) | Carrying Value | |||||||||||||||||||||||
Loan Type | ||||||||||||||||||||||||||||||||
Reverse Mortgage Loans(E)(F) | $ | 32,633 | $ | 18,142 | 122 | 7.4 | % | 4.4 | 19.8 | % | 133.5 | % | 65.7 | % | N/A | $ | 19,560 | |||||||||||||||
Performing Loans(G) | 20,884 | 19,462 | 663 | 8.9 | % | 5.6 | 17.3 | % | 77.2 | % | 7.3 | % | 626 | 19,964 | ||||||||||||||||||
Purchased Credit Deteriorated Loans(H) | 439,649 | 287,130 | 2,037 | 5.5 | % | 2.6 | 18.7 | % | 116.4 | % | 93.1 | % | 577 | 290,654 | ||||||||||||||||||
Total Residential Mortgage Loans, held-for-investment | $ | 493,166 | $ | 324,734 | 2,822 | 5.8 | % | 2.8 | 18.7 | % | 115.9 | % | 87.7 | % | 580 | $ | 330,178 | |||||||||||||||
Performing Loans, held-for-sale(G) | $ | 143,384 | $ | 151,001 | 1,671 | 3.8 | % | 4.7 | 9.6 | % | 58.1 | % | 3.7 | % | 665 | $ | 277,084 | |||||||||||||||
Non-Performing Loans, held-for-sale(H)(I) | 572,988 | 482,159 | 3,425 | 7.0 | % | 2.7 | 15.3 | % | 104.0 | % | 79.1 | % | 571 | 499,597 | ||||||||||||||||||
Total Residential Mortgage Loans, held-for-sale | $ | 716,372 | $ | 633,160 | 5,096 | 6.3 | % | 3.1 | 14.2 | % | 94.8 | % | 64.0 | % | 590 | $ | 776,681 |
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. |
(B) | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. |
(C) | Represents the percentage of the total principal balance that are 60+ days delinquent. |
(D) | The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. |
(E) | Represents a 70% participation interest that New Residential holds in a portfolio of reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.4 million. Approximately 60% of these loans have reached a termination event. As a result of the termination event, each such loan has matured and the borrower can no longer make draws on these loans. |
(F) | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. |
(G) | Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized premiums of $8.7 million. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
(H) | Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of March 31, 2016, New Residential has placed all of these loans on nonaccrual status, except as described in (I) below. |
(I) | Includes $232.1 million UPB of Ginnie Mae EBO non-performing loans on accrual status because contractual cash flows are guaranteed by the FHA. |
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||
State Concentration | March 31, 2016 | December 31, 2015 | ||||
New York | 15.1 | % | 14.5 | % | ||
New Jersey | 13.6 | % | 13.1 | % | ||
Florida | 10.7 | % | 10.7 | % | ||
California | 8.4 | % | 12.3 | % | ||
Texas | 4.5 | % | 3.3 | % | ||
Illinois | 4.3 | % | 4.3 | % | ||
Maryland | 3.8 | % | 3.5 | % | ||
Massachusetts | 3.5 | % | 3.3 | % | ||
Pennsylvania | 3.2 | % | 2.8 | % | ||
Washington | 3.1 | % | 3.2 | % | ||
Other U.S. | 29.8 | % | 29.0 | % | ||
100.0 | % | 100.0 | % |
Securities Owned Prior | Assets Acquired | Loans Sold (C) | Retained Bonds | Retained Assets (C) | |||||||||||||||||||||||||||||||||||||||||||||
Date of Call (A) | Number of Trusts Called | Face Amount | Amortized Cost Basis | Loan UPB | Loan Price (B) | REO & Other Price (B) | UPB | Gain (Loss) | Basis | Type | Loan UPB | Loan Price | REO & Other Price | ||||||||||||||||||||||||||||||||||||
December 23, 2015 | 14 | $ | 61.4 | $ | 48.0 | $ | 309.1 | $ | 315.1 | $ | 3.1 | $ | 261.3 | $ | 2.2 | $ | 36.6 | Various | $ | 37.4 | $ | 27.4 | $ | 2.9 | |||||||||||||||||||||||||
March 25, 2016 | 13 | 58.4 | 41.0 | 167.2 | 173.3 | 3.1 | N/A(C) | N/A(C) | N/A(C) | N/A(C) | N/A(C) | N/A(C) | N/A(C) |
(A) | Any related securitization may occur on the same or a subsequent date, depending on market conditions and other factors. Except as otherwise noted in (C) below, there was one securitization associated with each call. |
(B) | Price includes par amount paid for all underlying mortgage loans of the trusts, plus the basis of the exercised call rights, plus advances and costs incurred (including MSR Fund Payments, as defined in Note 15) in exercising such call rights. |
(C) | Loans were sold through a securitization which was treated as a sale for accounting purposes. The securitization that occurred in March 2016 primarily included loans from the December 23, 2015 call, but also included previously acquired loans. The retained assets disclosed for the December 23, 2015 call are net of the related loans sold in the March 2016 securitization. No loans from the March 25, 2016 call were securitized as of March 31, 2016. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | |||
Days Past Due | Delinquency Status(A) | ||
Current | 87.2 | % | |
30-59 | 8.7 | % | |
60-89 | 1.9 | % | |
90-119(B) | 0.1 | % | |
120+(C) | 2.1 | % | |
100.0 | % |
(A) | Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. |
(B) | Includes loans 90-119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. |
(C) | Represents nonaccrual loans. |
Reverse Mortgage Loans | Performing Loans | ||||||
Balance at December 31, 2015 | $ | 19,560 | $ | 19,964 | |||
Purchases/additional fundings | 319 | — | |||||
Proceeds from repayments | (809 | ) | (598 | ) | |||
Accretion of loan discount (premium) and other amortization(A) | 1,090 | 100 | |||||
Provision for loan losses | (12 | ) | (4 | ) | |||
Transfer of loans to other assets | (2,006 | ) | — | ||||
Transfer of loans to real estate owned | — | — | |||||
Balance at March 31, 2016 | $ | 18,142 | $ | 19,462 |
(A) | Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. |
Reverse Mortgage Loans | Performing Loans | ||||||
Balance at December 31, 2015 | $ | 1,553 | $ | 119 | |||
Provision for loan losses(A) | 12 | 4 | |||||
Charge-offs(B) | — | — | |||||
Balance at March 31, 2016 | $ | 1,565 | $ | 123 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
(A) | Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. |
(B) | Loans, other than PCD loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. |
Balance at December 31, 2015 | $ | 290,654 | |
Purchases/additional fundings | — | ||
Sales | — | ||
Proceeds from repayments | (7,233 | ) | |
Accretion of loan discount and other amortization | 6,315 | ||
Transfer of loans to real estate owned | (2,606 | ) | |
Balance at March 31, 2016 | $ | 287,130 |
Unpaid Principal Balance | Carrying Value | ||||||
March 31, 2016 | $ | 439,649 | $ | 287,130 | |||
December 31, 2015 | $ | 450,229 | $ | 290,654 |
Balance at December 31, 2015 | $ | 71,063 | |
Additions | — | ||
Accretion | (6,315 | ) | |
Reclassifications from non-accretable difference(A) | 11,443 | ||
Disposals(B) | (933 | ) | |
Balance at March 31, 2016 | $ | 75,258 |
(A) | Represents a probable and significant increase in cash flows previously expected to be uncollectible. |
(B) | Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
For the Three Months Ended March 31, 2016 | ||||
Loans Held-for-Sale | ||||
Balance at December 31, 2015 | $ | 776,681 | ||
Purchases(A) | 173,270 | |||
Sales | (266,124 | ) | ||
Transfer of loans to other assets | (25,429 | ) | ||
Transfer of loans to real estate owned | (3,676 | ) | ||
Proceeds from repayments | (18,495 | ) | ||
Valuation provision on loans(B) | (3,067 | ) | ||
Balance at March 31, 2016 | $ | 633,160 |
(A) | Represents loans acquired with the intent to sell. |
(B) | Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including $2.6 million of provision related to the call transaction executed on March 25, 2016. |
Real Estate Owned | ||||
Balance at December 31, 2015 | $ | 50,574 | ||
Purchases | 9,196 | |||
Transfer of loans to real estate owned | 8,285 | |||
Sales | (7,991 | ) | ||
Valuation provision on REO | (3,662 | ) | ||
Balance at March 31, 2016 | $ | 56,402 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Unpaid Principal Balance(A) | Interest in Consumer Loan Companies | Carrying Value(B) | Weighted Average Coupon(C) | Weighted Average Yield | Weighted Average Expected Life (Years)(D) | Delinquency(E) | |||||||||||||||
March 31, 2016(F) | $ | 1,986,162 | 53.5 | % | $ | 1,970,565 | 18.3 | % | 9.5 | % | 4.2 | 7.0 | % | ||||||||
December 31, 2015(G) | $ | 2,094,904 | 30.0 | % | $ | 1,698,130 | 18.2 | % | 18.1 | % | 4.4 | 7.2 | % |
(A) | Represents the balances as of February 29, 2016 and November 30, 2015, respectively. |
(B) | Represents the carrying value of the consumer loans held by the Consumer Loan Companies. |
(C) | Substantially all of the cash flows received on the loans was required to be used to make payments on the notes described above. |
(D) | Represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
(E) | Represents the percentage of the total principal balance that is 30+ days delinquent. Delinquency status is the primary credit quality indicator as it provides early warning of borrowers who may be experiencing financial difficulties. |
(F) | Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments, which are accounted for as PCD loans. |
(G) | Held through an equity method investee at such time. |
Contractually Required Payments Receivable | Cash Flows Expected to be Collected | Fair Value | |||||||||
As of Acquisition Date | $ | 1,003,470 | $ | 541,967 | $ | 405,033 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
As of | ||||
March 31, 2016 | ||||
Assets | ||||
Consumer loans, held-for-investment | $ | 1,970,565 | ||
Restricted cash | 14,931 | |||
Total assets(A) | $ | 1,985,496 | ||
Liabilities | ||||
Notes and bonds payable | $ | 1,803,192 | ||
Accounts payable and accrued expenses | 4,764 | |||
Total liabilities(A) | $ | 1,807,956 |
(A) | The creditors of the Consumer Loan SPVs do not have recourse to the general credit of New Residential, and the assets of the Consumer Loan SPVs are not directly available to satisfy New Residential’s obligations. |
Balance Sheet Location | March 31, 2016 | December 31, 2015 | |||||||
Derivative assets | |||||||||
Interest Rate Caps | Other assets | $ | 1,720 | $ | 2,689 | ||||
$ | 1,720 | $ | 2,689 | ||||||
Derivative liabilities | |||||||||
TBAs | Accrued expenses and other liabilities | $ | 7,736 | $ | 2,058 | ||||
Interest Rate Swaps | Accrued expenses and other liabilities | 27,206 | 11,385 | ||||||
$ | 34,942 | $ | 13,443 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | December 31, 2015 | ||||||
TBAs, short position(A) | $ | 2,418,000 | $ | 1,450,000 | |||
TBAs, long position(A) | 1,143,000 | 750,000 | |||||
Interest Rate Caps(B) | 2,565,000 | 3,400,000 | |||||
Interest Rate Swaps, short positions(C) | 2,444,000 | 2,444,000 |
(A) | Represents the notional amount of Agency RMBS, classified as derivatives. |
(B) | Caps LIBOR at 0.50% for $765.0 million of notional, at 0.75% for $1,650.0 million of notional, and at 4.00% for $150.0 million of notional. The weighted average maturity of the interest rate caps as of March 31, 2016 was 14 months. |
(C) | Receive LIBOR and pay a fixed rate. The weighted average maturity of the interest rate swaps as of March 31, 2016 was 22 months and the weighted average fixed pay rate was 1.20%. |
For the Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Other income (loss), net(A) | ||||||||
TBAs | $ | (5,531 | ) | $ | (3,554 | ) | ||
Interest Rate Swaps | (15,821 | ) | (3,352 | ) | ||||
Interest Rate Caps | (951 | ) | (124 | ) | ||||
(22,303 | ) | (7,030 | ) | |||||
Gain (loss) on settlement of investments, net | ||||||||
TBAs | (28,171 | ) | (16,033 | ) | ||||
Interest Rate Caps | (1,124 | ) | — | |||||
Interest Rate Swaps | (3,338 | ) | (6,557 | ) | ||||
(32,633 | ) | (22,590 | ) | |||||
Total gains (losses) | $ | (54,936 | ) | $ | (29,620 | ) |
(A) | Represents unrealized gains (losses). |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Month Issued | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||
Repurchase Agreements(C) | |||||||||||||||||||||||||||||||||||
Agency RMBS(D) | Various | $ | 1,629,971 | $ | 1,629,971 | Apr-16 | 0.70 | % | 0.1 | $ | 1,612,119 | $ | 1,667,876 | $ | 1,691,144 | 0.6 | $ | 1,683,305 | |||||||||||||||||
Non-Agency RMBS (E) | Various | 1,490,273 | 1,490,273 | Apr-16 to Jun-16 | 1.96 | % | 0.1 | 3,599,118 | 1,788,871 | 1,777,260 | 7.2 | 1,333,852 | |||||||||||||||||||||||
Residential Mortgage Loans(F) | Various | 723,954 | 723,167 | May-16 to Mar-17 | 2.87 | % | 0.6 | 1,119,845 | 886,918 | 884,110 | 3.1 | 907,993 | |||||||||||||||||||||||
Real Estate Owned(G)(H) | Various | 95,983 | 95,878 | May-16 to Mar-17 | 2.76 | % | 0.6 | N/A | N/A | 108,330 | N/A | 77,458 | |||||||||||||||||||||||
Consumer Loan Investment(I) | Apr-15 | 34,223 | 34,223 | Apr-16 | 4.11 | % | 0.1 | N/A | N/A | 71,250 | 4.2 | 40,446 | |||||||||||||||||||||||
Total Repurchase Agreements | 3,974,404 | 3,973,512 | 1.65 | % | 0.2 | 4,043,054 | |||||||||||||||||||||||||||||
Notes and Bonds Payable | |||||||||||||||||||||||||||||||||||
Secured Corporate Note(J) | May-15 | 182,772 | 181,602 | Apr-17 | 5.69 | % | 1.1 | 89,074,745 | 212,250 | 258,422 | 5.2 | 182,978 | |||||||||||||||||||||||
Servicer Advances(K) | Various | 6,880,413 | 6,868,732 | Aug-16 to Aug-18 | 3.44 | % | 1.2 | 7,203,924 | 7,005,501 | 7,001,004 | 4.5 | 7,047,061 | |||||||||||||||||||||||
Residential Mortgage Loans(L) | Oct-15 | 13,786 | 13,786 | Oct-16 | 3.30 | % | 0.5 | 20,801 | 13,914 | 12,809 | 4.4 | 19,529 | |||||||||||||||||||||||
Consumer Loans(M) | Oct-14 | 1,808,211 | 1,803,192 | May-23 to Apr-34 | 4.14 | % | 3.7 | 1,986,162 | 1,951,879 | 1,951,879 | 4.2 | — | |||||||||||||||||||||||
Receivable from government agency(L) | Oct-15 | 3,539 | 3,539 | — | 3.30 | % | 0.5 | N/A | N/A | 5,333 | N/A | — | |||||||||||||||||||||||
Total Notes and Bonds Payable | 8,888,721 | 8,870,851 | 3.63 | % | 1.7 | 7,249,568 | |||||||||||||||||||||||||||||
Total/ Weighted Average | $ | 12,863,125 | $ | 12,844,363 | 3.02 | % | 1.2 | $ | 11,292,622 |
(A) | Net of deferred financing costs. |
(B) | All debt obligations with a stated maturity of April 2016 were refinanced, extended, or repaid. |
(C) | These repurchase agreements had approximately $6.7 million of associated accrued interest payable as of March 31, 2016. |
(D) | All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. |
(E) | All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. |
(F) | All of these repurchase agreements have LIBOR-based floating interest rates. |
(G) | All of these repurchase agreements have LIBOR-based floating interest rates. |
(H) | Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. |
(I) | The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by 56% of New Residential’s interest in the Consumer Loan Companies (Note 9). |
(J) | The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
(K) | $2.7 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.7% to 2.2%. |
(L) | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. |
(M) | Represents the debt assumed in the SpringCastle Transaction (Note 1), which is comprised of the following classes of asset-backed notes (collectively, the “2014-A Notes”) held by third parties: $850.2 million UPB of Class A notes with a coupon of 2.7% and a stated maturity date in May 2023 (the “Class A Notes”); $427.0 million UPB of Class B notes with a coupon of 4.61% and a stated maturity date in October 2027 (the “Class B Notes”); $331.2 million UPB of Class C notes with a coupon of 5.59% and a stated maturity date in October 2033 (the “Class C Notes”); and $199.8 million UPB of Class D notes with a coupon of 6.82% and a stated maturity date in April 2034 (the “Class D Notes”). Prior to the payment date in October 2016, the redemption price for any class of the outstanding 2014-A Notes shall be the sum of (i) 100% of the outstanding principal balance of the 2014-A Notes of the applicable class to be redeemed, plus (ii) the applicable Specified Call Premium Amount (as defined below) for such 2014-A Notes, plus (iii) accrued and unpaid interest and fees in respect of such 2014-A Notes. On or after the payment date occurring in October 2016, the redemption price for any class of 2014-A Notes shall be the sum of (i) 100% of the outstanding principal balance of the 2014-A Notes of the applicable class to be redeemed, plus (ii) accrued and unpaid interest and fees in respect of such 2014-A Notes. The “Specified Call Premium Amount” on any payment date for any class of 2014-A Notes shall mean (i) in the case of Class A Notes, an amount equal to 1.00% of the outstanding principal balance of the Class A Notes to be redeemed and (ii) in the case of the Class B Notes, the Class C Notes and the Class D Notes, an amount equal to (a) the product of (1) with respect to the Class B Notes, 0.75%, with respect to the Class C Notes, 1.00% and with respect to the Class D Notes, 2.00%, times (2) the outstanding principal balance of the 2014-A Notes of such class to be redeemed on such payment date, times (3) the number of days, computed on a 30/360 basis, from and including such payment date to but excluding the payment date occurring in October 2016, divided by (b) 360. |
Excess MSRs | Servicer Advances(A) | Real Estate Securities | Real Estate Loans and REO | Consumer Loans | Total | ||||||||||||||||||
Balance at December 31, 2015 | $ | 182,978 | $ | 7,047,061 | $ | 3,017,157 | $ | 1,004,980 | 40,446 | $ | 11,292,622 | ||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||
Borrowings | — | — | 4,863,459 | 129,859 | — | 4,993,318 | |||||||||||||||||
Repayments | — | — | (4,760,372 | ) | (296,262 | ) | (6,223 | ) | (5,062,857 | ) | |||||||||||||
Capitalized deferred financing costs, net of amortization | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Notes and Bonds Payable: | |||||||||||||||||||||||
Acquired borrowings, net of discount | — | — | — | — | 1,803,192 | 1,803,192 | |||||||||||||||||
Borrowings | — | 1,713,002 | — | — | — | 1,713,002 | |||||||||||||||||
Repayments | (1,661 | ) | (1,890,683 | ) | — | (2,204 | ) | — | (1,894,548 | ) | |||||||||||||
Discount on borrowings, net of amortization | 278 | — | — | — | — | 278 | |||||||||||||||||
Capitalized deferred financing costs, net of amortization | 7 | (648 | ) | — | — | — | (641 | ) | |||||||||||||||
Balance at March 31, 2016 | $ | 181,602 | $ | 6,868,732 | $ | 3,120,244 | $ | 836,370 | $ | 1,837,415 | $ | 12,844,363 |
(A) | New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its Servicer Advances. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Year | Nonrecourse | Recourse | Total | |||||||||
April 1 through December 31, 2016 | $ | 1,547,745 | $ | 3,652,241 | $ | 5,199,986 | ||||||
2017 | 5,045,240 | 441,308 | 5,486,548 | |||||||||
2018 | 368,380 | — | 368,380 | |||||||||
2019 | — | — | — | |||||||||
2020 | — | — | — | |||||||||
2021 and thereafter | 1,808,211 | — | 1,808,211 | |||||||||
$ | 8,769,576 | $ | 4,093,549 | $ | 12,863,125 |
Debt Obligations/ Collateral | Collateral Type | Borrowing Capacity | Balance Outstanding | Available Financing | ||||||||||
Repurchase Agreements | ||||||||||||||
Residential Mortgage Loans | Real Estate Loans and REO | $ | 2,435,000 | $ | 819,937 | $ | 1,615,063 | |||||||
Notes and Bonds Payable | ||||||||||||||
Servicer Advances(A) | Servicer Advances | 7,574,183 | 6,880,413 | 693,770 | ||||||||||
$ | 10,009,183 | $ | 7,700,350 | $ | 2,308,833 |
(A) | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.3% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained non-agency bonds with a current face amount of $175.8 million. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Fair Value | |||||||||||||||||||||||
Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments in: | |||||||||||||||||||||||
Excess mortgage servicing rights, at fair value(A) | $ | 317,540,275 | $ | 1,547,004 | $ | — | $ | — | $ | 1,547,004 | $ | 1,547,004 | |||||||||||
Excess mortgage servicing rights, equity method investees, at fair value(A) | 70,087,028 | 209,901 | — | — | 209,901 | 209,901 | |||||||||||||||||
Servicer advances | 7,203,924 | 7,001,004 | — | — | 7,001,004 | 7,001,004 | |||||||||||||||||
Real estate securities, available-for-sale | 5,766,333 | 3,441,790 | — | 1,523,203 | 1,918,587 | 3,441,790 | |||||||||||||||||
Residential mortgage loans, held-for-investment | 493,166 | 324,734 | — | — | 320,002 | 320,002 | |||||||||||||||||
Residential mortgage loans, held-for-sale | 716,372 | 633,160 | — | — | 641,004 | 641,004 | |||||||||||||||||
Consumer loans, held-for-investment | 1,986,162 | 1,970,565 | — | — | 1,970,565 | 1,970,565 | |||||||||||||||||
Derivative assets | 2,565,000 | 1,720 | — | 1,720 | — | 1,720 | |||||||||||||||||
Cash and cash equivalents | 258,622 | 258,622 | 258,622 | — | — | 258,622 | |||||||||||||||||
Restricted cash | 170,364 | 170,364 | 170,364 | — | — | 170,364 | |||||||||||||||||
Other Assets | 464,348 | 1,479 | — | — | 1,479 | 1,479 | |||||||||||||||||
$ | 15,560,343 | $ | 428,986 | $ | 1,524,923 | $ | 13,609,546 | $ | 15,563,455 | ||||||||||||||
Liabilities | |||||||||||||||||||||||
Repurchase agreements | $ | 3,974,404 | $ | 3,973,512 | $ | — | $ | 3,974,404 | $ | — | $ | 3,974,404 | |||||||||||
Notes and bonds payable | 8,888,721 | 8,870,851 | — | — | 8,882,458 | 8,882,458 | |||||||||||||||||
Derivative liabilities | 6,005,000 | 34,942 | — | 34,942 | — | 34,942 | |||||||||||||||||
$ | 12,879,305 | $ | — | $ | 4,009,346 | $ | 8,882,458 | $ | 12,891,804 |
(A) | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Level 3 | |||||||||||||||||||||||
Excess MSRs(A) | Excess MSRs in Equity Method Investees(A)(B) | ||||||||||||||||||||||
Agency | Non-Agency | Agency | Servicer Advances | Non-Agency RMBS | Total | ||||||||||||||||||
Balance at December 31, 2015 | $ | 437,201 | $ | 1,144,316 | $ | 217,221 | $ | 7,426,794 | $ | 1,584,283 | $ | 10,809,815 | |||||||||||
Transfers(C) | |||||||||||||||||||||||
Transfers from Level 3 | — | — | — | — | — | — | |||||||||||||||||
Transfers to Level 3 | — | — | — | — | — | — | |||||||||||||||||
Gains (losses) included in net income | |||||||||||||||||||||||
Included in other-than-temporary impairment on securities(D) | — | — | — | — | (3,254 | ) | (3,254 | ) | |||||||||||||||
Included in change in fair value of investments in excess mortgage servicing rights(D) | 946 | 6,980 | — | — | — | 7,926 | |||||||||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees(D) | — | — | 3,022 | — | — | 3,022 | |||||||||||||||||
Included in change in fair value of investments in Servicer Advances | — | — | — | (31,224 | ) | — | (31,224 | ) | |||||||||||||||
Included in gain (loss) on settlement of investments, net | — | — | — | — | (8,490 | ) | (8,490 | ) | |||||||||||||||
Included in other income (loss), net(D) | 656 | 76 | — | — | 268 | 1,000 | |||||||||||||||||
Gains (losses) included in other comprehensive income(E) | — | — | — | — | (15,837 | ) | (15,837 | ) | |||||||||||||||
Interest income | 9,622 | 33,346 | — | 78,637 | 34,109 | 155,714 | |||||||||||||||||
Purchases, sales and repayments | |||||||||||||||||||||||
Purchases | — | — | — | 3,844,638 | 443,139 | 4,287,777 | |||||||||||||||||
Proceeds from sales | — | — | — | — | (38,168 | ) | (38,168 | ) | |||||||||||||||
Proceeds from repayments | (22,525 | ) | (63,614 | ) | (10,342 | ) | (4,317,841 | ) | (77,463 | ) | (4,491,785 | ) | |||||||||||
Balance at March 31, 2016 | $ | 425,900 | $ | 1,121,104 | $ | 209,901 | $ | 7,001,004 | $ | 1,918,587 | $ | 10,676,496 |
(A) | Includes the recapture agreement for each respective pool. |
(B) | Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. |
(C) | Transfers are assumed to occur at the beginning of each respective period. |
(D) | The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates and realized gains (losses) recorded during the period. |
(E) | These gains (losses) were included in net unrealized gain (loss) on securities in the Condensed Consolidated Statements of Comprehensive Income. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Significant Inputs(A) | ||||||||||||
Directly Held (Note 4) | Prepayment Speed(B) | Delinquency(C) | Recapture Rate(D) | Excess Mortgage Servicing Amount (bps)(E) | ||||||||
Agency | ||||||||||||
Original Pools | 10.5 | % | 3.5 | % | 31.5 | % | 21 | |||||
Recaptured Pools | 7.5 | % | 4.8 | % | 20.0 | % | 20 | |||||
Recapture Agreement | 7.6 | % | 5.0 | % | 20.0 | % | 22 | |||||
9.8 | % | 3.8 | % | 28.8 | % | 21 | ||||||
Non-Agency(F) | ||||||||||||
Nationstar and SLS Serviced: | ||||||||||||
Original Pools | 11.8 | % | N/A | 10.3 | % | 14 | ||||||
Recaptured Pools | 7.8 | % | N/A | 20.0 | % | 20 | ||||||
Recapture Agreement | 7.5 | % | N/A | 19.8 | % | 20 | ||||||
Ocwen Serviced Pools | 9.3 | % | N/A | — | % | 14 | ||||||
9.8 | % | N/A | 2.6 | % | 14 | |||||||
Total/Weighted Average--Directly Held | 9.8 | % | 3.8 | % | 9.8 | % | 16 | |||||
Held through Equity Method Investees (Note 5) | ||||||||||||
Agency | ||||||||||||
Original Pools | 12.5 | % | 5.8 | % | 35.1 | % | 19 | |||||
Recaptured Pools | 7.6 | % | 5.0 | % | 20.0 | % | 23 | |||||
Recapture Agreement | 7.7 | % | 5.0 | % | 20.0 | % | 23 | |||||
Total/Weighted Average--Held through Investees | 10.6 | % | 5.5 | % | 29.2 | % | 21 | |||||
Total/Weighted Average--All Pools | 10.0 | % | 4.1 | % | 13.8 | % | 17 |
(A) | Weighted by fair value of the portfolio. |
(B) | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. |
(C) | Projected percentage of mortgage loans in the pool for which the borrower will miss its mortgage payments. |
(D) | Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer. |
(E) | Weighted average total mortgage servicing amount in excess of the basic fee. |
(F) | For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Significant Inputs | ||||||||||||||
Weighted Average | ||||||||||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Speed(A) | Delinquency | Mortgage Servicing Amount(B) | Discount Rate | ||||||||||
March 31, 2016 | 2.3 | % | 10.2 | % | 14.6 | % | 9.2 | bps | 5.5 | % |
(A) | Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. |
(B) | Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. |
Fair Value | |||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | |||||||||||||||||
Agency RMBS | $ | 1,450,299 | $ | 1,524,194 | $ | 1,523,203 | $ | — | $ | 1,523,203 | 2 | ||||||||||||
Non-Agency RMBS(C) | 4,316,034 | 1,928,849 | 1,698,040 | 220,547 | 1,918,587 | 3 | |||||||||||||||||
Total | $ | 5,766,333 | $ | 3,453,043 | $ | 3,221,243 | $ | 220,547 | $ | 3,441,790 |
(A) | New Residential generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold New Residential the security) for Non-Agency RMBS. New Residential selected one of the quotes received as being most representative of the fair value and did not use an average of the quotes. Even if New Residential receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes New Residential receives. New Residential believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on New Residential’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. New Residential never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. New Residential’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. |
(B) | New Residential was unable to obtain quotations from more than one source on these securities. For approximately $214.7 million, the one source was the party that sold New Residential the security. |
(C) | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | Fair Value and Carrying Value | Discount Rate | Weighted Average Life (Years)(A) | Prepayment Rate | CDR(B) | Loss Severity(C) | ||||||||||||
Residential Mortgage Loans | ||||||||||||||||||
Performing Loans | $ | 151,001 | 3.8 | % | 4.7 | 6.0 | % | 0.9 | % | 37.3 | % | |||||||
Non-performing Loans | 226,354 | 5.7 | % | 3.4 | 3.0 | % | N/A | 22.4 | % | |||||||||
Total/Weighted Average | $ | 377,355 | 4.9 | % | 3.9 | 4.2 | % | 28.4 | % | |||||||||
Consumer Loans | $ | 1,970,565 | 9.5 | % | 4.2 | 18.5 | % | 5.6 | % | 87.2 | % |
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. |
(B) | Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. Not applicable for PCD Loans that are not 100% in default. |
(C) | Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. |
Carrying Value | Fair Value | Valuation and Loss Provision/ (Reversal) In Current Year | Discount Rate | Weighted Average Life (Years)(A) | Prepayment Rate | CDR(B) | Loss Severity(C) | |||||||||||||||||||
Reverse Mortgage Loans(D) | $ | 18,142 | $ | 18,142 | $ | 12 | 10.0 | % | 4.4 | N/A | N/A | 8.4 | % | |||||||||||||
Performing Loans | 19,462 | 20,484 | 4 | 7.9 | % | 5.6 | 5.9 | % | 2.5 | % | 58.3 | % | ||||||||||||||
Non-performing Loans | 542,935 | 545,025 | N/A | 5.4 | % | 2.5 | 1.5 | % | N/A | 13.2 | % | |||||||||||||||
Total/Weighted Average | $ | 580,539 | $ | 583,651 | $ | 16 | 5.6 | % | 2.6 | 14.6 | % |
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. |
(B) | Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. |
(C) | Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. |
(D) | Carrying value and fair value represent a 70% participation interest New Residential holds in the portfolio of reverse mortgage loans. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Issued Prior to 2011 | Issued in 2011-2015 | Total | ||||||
Held by the Manager | 345,720 | 8,874,152 | 9,219,872 | |||||
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | 88,280 | 3,067,955 | 3,156,235 | |||||
Issued to the independent directors | — | 4,000 | 4,000 | |||||
Total | 434,000 | 11,946,107 | 12,380,107 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Recipient | Date of Grant/ Exercise(A) | Number of Unexercised Options | Options Exercisable as of March 31, 2016 | Weighted Average Exercise Price(B) | Intrinsic Value of Exercisable Options as of March 31, 2016 (millions) | ||||||||||
Directors | Various | 4,000 | 4,000 | $ | 13.58 | $ | — | ||||||||
Manager(C) | 2003 - 2007 | 434,000 | 434,000 | 31.36 | — | ||||||||||
Manager(C) | 2011 - 2012 | 25,000 | 25,000 | 7.19 | 0.1 | ||||||||||
Manager(C) | 2013 | 1,936,068 | 1,936,068 | 10.98 | 1.3 | ||||||||||
Manager(C) | 2014 | 1,437,500 | 1,102,083 | 12.20 | — | ||||||||||
Manager(C) | 2015 | 8,543,539 | 2,946,395 | 15.46 | — | ||||||||||
Outstanding | 12,380,107 | 6,447,546 |
(A) | Options expire on the tenth anniversary from date of grant. |
(B) | The exercise prices are subject to adjustment in connection with return of capital dividends. |
(C) | The Manager assigned certain of its options to Fortress’s employees as follows: |
Date of Grant | Range of Exercise Prices | Total Unexercised Inception to Date | |||
2006-2007 | $29.92 to $33.80 | 88,280 | |||
2013 | $10.24 to $11.48 | 1,100,497 | |||
2014 | $12.20 | 258,750 | |||
2015 | $15.25 to $15.88 | 1,708,708 | |||
Total | 3,156,235 |
Amount | Weighted Average Exercise Price | ||||||
December 31, 2015 outstanding options | 12,380,107 | ||||||
Options granted | — | $ | — | ||||
Options exercised | — | $ | — | ||||
Options expired unexercised | — | ||||||
March 31, 2016 outstanding options | 12,380,107 | See table above |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
March 31, 2016 | December 31, 2015 | ||||||
Management fees | $ | 3,336 | $ | 6,671 | |||
Incentive compensation | 1,196 | 16,017 | |||||
Expense reimbursements and other | 1,315 | 1,097 | |||||
$ | 5,847 | $ | 23,785 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Management fees | $ | 10,008 | $ | 5,126 | |||
Incentive compensation | 1,196 | 3,693 | |||||
Expense reimbursements(A) | 125 | 125 | |||||
Total | $ | 11,329 | $ | 8,944 |
(A) | Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
Accumulated Other Comprehensive Income Components | Statement of Income Location | Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||||
Reclassification of net realized (gain) loss on securities into earnings | Gain on settlement of investments, net | $ | (133 | ) | $ | (24,697 | ) | |||
Reclassification of net realized (gain) loss on securities into earnings | Other-than-temporary impairment on securities | 3,254 | 1,071 | |||||||
Total reclassifications | $ | 3,121 | $ | (23,626 | ) |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Current: | ||||||||
Federal | $ | 458 | $ | 736 | ||||
State and Local | — | (1,156 | ) | |||||
Total Current Income Tax Expense (Benefit) | 458 | (420 | ) | |||||
Deferred: | ||||||||
Federal | (9,450 | ) | (1,323 | ) | ||||
State and Local | (1,231 | ) | (1,684 | ) | ||||
Total Deferred Income Tax Expense (Benefit) | (10,681 | ) | (3,007 | ) | ||||
Total Income Tax Expense (Benefit) | $ | (10,223 | ) | $ | (3,427 | ) |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
March 31, 2016 |
(dollars in tables in thousands, except share data) |
• | acquiring bonds issued by the securitization at a discount, prior to initiating the call, such that the portion of the payment we make to the trust which is returned to us as bondholders when the call is exercised exceeds our purchase price for the bonds; |
• | re-securitizing or selling performing loans for a gain; and |
• | retaining distressed loans to modify or liquidate over time at a premium to our basis. |
Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Carrying Value | Weighted Average Life (years)(A) | ||||||||||||
Investments in: | ||||||||||||||||
Excess MSRs(B) | $ | 387,627,303 | $ | 1,543,962 | 10.3 | % | $ | 1,756,905 | 6.3 | |||||||
Servicer Advances(B) | 7,203,924 | 7,005,501 | 46.7 | % | 7,001,004 | 4.5 | ||||||||||
Agency RMBS(C) | 1,450,299 | 1,524,194 | 10.2 | % | 1,523,203 | 6.1 | ||||||||||
Non-Agency RMBS(C) | 4,316,034 | 1,928,849 | 12.9 | % | 1,918,587 | 7.5 | ||||||||||
Residential Mortgage Loans | 1,209,538 | 966,205 | 6.4 | % | 957,894 | 3.0 | ||||||||||
Real Estate Owned | N/A | 63,396 | 0.4 | % | 56,402 | N/A | ||||||||||
Consumer Loans | 1,986,162 | 1,970,565 | 13.1 | % | 1,970,565 | 4.2 | ||||||||||
Total/Weighted Average | $ | 15,002,672 | 100.0 | % | $ | 15,184,560 | 5.1 | |||||||||
Reconciliation to GAAP total assets: | ||||||||||||||||
Cash and restricted cash | 428,986 | |||||||||||||||
Trades receivable | 1,509,016 | |||||||||||||||
Deferred tax asset | 196,189 | |||||||||||||||
Other assets | 253,026 | |||||||||||||||
GAAP total assets | $ | 17,571,777 |
(A) | Weighted average life is based on the timing of expected principal reduction on the asset. |
(B) | The outstanding face amount of Excess MSRs and servicer advances is based on 100% of the face amount of the underlying residential mortgage loans and currently outstanding advances, respectively. |
(C) | Amortized cost basis is net of impairment. |
MSR Component(A) | Excess MSR | ||||||||||||||||||||||
Initial UPB (bn) | Current UPB (bn) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Interest in Excess MSR (%) | Purchase Price (mm) | Carrying Value (mm) | |||||||||||||||||
Agency | |||||||||||||||||||||||
Original and Recaptured Pools | $ | 118.6 | $ | 90.1 | 29 | bps | 21 | bps | 32.5% - 66.7% | $ | 457.7 | $ | 367.0 | ||||||||||
Recapture Agreements | — | — | 29 | 22 | 32.5% - 66.7% | — | 58.9 | ||||||||||||||||
118.6 | 90.1 | 29 | 21 | 457.7 | 425.9 | ||||||||||||||||||
Non-Agency(B) | |||||||||||||||||||||||
Nationstar and SLS Serviced: | |||||||||||||||||||||||
Original and Recaptured Pools | $ | 148.8 | $ | 91.3 | 35 | 14 | 33.3% - 80.0% | $ | 328.8 | $ | 248.0 | ||||||||||||
Recapture Agreements | — | — | 26 | 20 | 33.3% - 80.0% | — | 15.4 | ||||||||||||||||
Ocwen Serviced Pools | 156.4 | 136.1 | 43 | 14 | 100.0% | 917.1 | 857.7 | ||||||||||||||||
305.2 | 227.4 | 41 | 14 | 1,245.9 | 1,121.1 | ||||||||||||||||||
Total/Weighted Average | $ | 423.8 | $ | 317.5 | 38 | bps | 16 | bps | $ | 1,703.6 | $ | 1,547.0 |
(A) | The MSR is a weighted average as of March 31, 2016, and the Excess MSR represents the difference between the weighted average MSR and the basic fee (which fee remains constant). |
(B) | Excess MSR investments in which we also invested in related servicer advances, including the basic fee component of the related MSR, as of March 31, 2016 (Note 6 to our Condensed Consolidated Financial Statements). |
MSR Component(A) | ||||||||||||||||||||||||||
Initial UPB (bn) | Current UPB (bn) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | New Residential Interest in Investee (%) | Investee Interest in Excess MSR (%) | New Residential Effective Ownership (%) | Investee Carrying Value (mm) | |||||||||||||||||||
Agency | ||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 125.2 | $ | 70.1 | 32 | bps | 20 | bps | 50.0 | % | 66.7 | % | 33.3 | % | $ | 336.1 | ||||||||||
Recapture Agreements | — | — | 31 | 23 | 50.0 | % | 66.7 | % | 33.3 | % | 68.8 | |||||||||||||||
Total/Weighted Average | $ | 125.2 | $ | 70.1 | 32 | bps | 21 | bps | $ | 404.9 |
(A) | The MSR is a weighted average as of March 31, 2016, and the Excess MSR represents the difference between the weighted average MSR and the basic fee (which fee remains constant). |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Original Principal Balance | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 324,728 | $ | 118,585,641 | $ | 81,562,463 | 511,404 | 703 | 4.3 | % | 289 | 83 | 11.0 | % | 15.3 | % | 14.2 | % | 1.4 | % | 28.9 | % | |||||||||||||||||||
Recaptured Loans | 42,276 | — | 8,556,875 | 50,198 | 721 | 4.4 | % | 300 | 21 | 0.3 | % | 6.9 | % | 6.4 | % | 0.6 | % | 19.5 | % | ||||||||||||||||||||||
Recapture Agreement | 58,896 | — | — | — | — | — | % | — | — | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
$ | 425,900 | $ | 118,585,641 | $ | 90,119,338 | 561,602 | 705 | 4.3 | % | 290 | 76 | 9.9 | % | 14.5 | % | 13.4 | % | 1.3 | % | 28.4 | % | ||||||||||||||||||||
Non-Agency(F) | |||||||||||||||||||||||||||||||||||||||||
Nationstar and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||
Original Pools | 240,457 | 148,839,262 | 89,564,880 | 469,448 | 668 | 4.3 | % | 273 | 122 | 44.8 | % | 12.4 | % | 8.3 | % | 4.5 | % | 7.8 | % | ||||||||||||||||||||||
Recaptured Loans | 7,499 | — | 1,712,198 | 7,714 | 741 | 4.2 | % | 293 | 15 | 3.0 | % | 12.3 | % | 12.3 | % | — | % | 19.1 | % | ||||||||||||||||||||||
Recapture Agreement | 15,436 | — | — | — | — | — | % | — | — | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
Ocwen Serviced Pools(H) | 857,712 | 156,374,134 | 136,143,859 | 913,255 | 640 | 4.6 | % | 249 | 126 | 22.2 | % | 8.8 | % | 5.3 | % | 3.6 | % | — | % | ||||||||||||||||||||||
$ | 1,121,104 | $ | 305,213,396 | $ | 227,420,937 | 1,390,417 | 647 | 4.6 | % | 255 | 124 | 30.9 | % | 9.7 | % | 6.1 | % | 3.8 | % | 2.1 | % | ||||||||||||||||||||
Total/Weighted Average | $ | 1,547,004 | $ | 423,799,037 | $ | 317,540,275 | 1,952,019 | 659 | 4.5 | % | 262 | 115 | 25.0 | % | 10.6 | % | 7.6 | % | 3.3 | % | 9.8 | % |
Collateral Characteristics | |||||||||||||||||
Delinquency 30 Days(G) | Delinquency 60 Days(G) | Delinquency 90+ Days(G) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||
Agency | |||||||||||||||||
Original Pools | 3.6 | % | 1.1 | % | 1.2 | % | 1.8 | % | 0.4 | % | 0.4 | % | |||||
Recaptured Loans | 1.3 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.1 | % | — | % | |||||
Recapture Agreement | — | % | — | % | — | % | — | % | — | % | — | % | |||||
3.4 | % | 1.0 | % | 1.1 | % | 1.6 | % | 0.4 | % | 0.4 | % | ||||||
Non-Agency(F) | |||||||||||||||||
Nationstar and SLS Serviced: | |||||||||||||||||
Original Pools | 8.3 | % | 2.1 | % | 3.5 | % | 9.7 | % | 2.1 | % | 2.6 | % | |||||
Recaptured Loans | 1.0 | % | 0.2 | % | — | % | — | % | — | % | — | % | |||||
Recapture Agreement | — | % | — | % | — | % | — | % | — | % | — | % | |||||
Ocwen Serviced Pools(H) | 7.0 | % | 3.7 | % | 5.9 | % | 9.2 | % | 2.1 | % | 2.2 | % | |||||
7.3 | % | 3.3 | % | 5.3 | % | 9.3 | % | 2.1 | % | 2.3 | % | ||||||
Total/Weighted Average | 6.5 | % | 2.8 | % | 4.5 | % | 7.8 | % | 1.7 | % | 1.9 | % |
(A) | The WA FICO score is based on the weighted average of information provided by the loan servicer on a monthly basis. The loan servicer generally updates the FICO score on a monthly basis. Weighted averages exclude collateral information for which collateral data was not available as of the report date. |
(B) | Adjustable Rate Mortgage % represents the percentage of the total principal balance of the pool that corresponds to adjustable rate mortgages. |
(C) | Three Month Average CPR, or the constant prepayment rate, represents the annualized rate of the prepayments during the quarter as a percentage of the total principal balance of the pool. |
(D) | Three Month Average CRR, or the voluntary prepayment rate, represents the annualized rate of the voluntary prepayments during the quarter as a percentage of the total principal balance of the pool. |
(E) | Three Month Average CDR, or the involuntary prepayment rate, represents the annualized rate of the involuntary prepayments (defaults) during the quarter as a percentage of the total principal balance of the pool. |
(F) | Excess MSR investments in which we also invested in related servicer advances, including the basic fee component of the related MSR as of March 31, 2016 (Note 6 to our Condensed Consolidated Financial Statements included herein). |
(G) | Delinquency 30 Days, Delinquency 60 Days and Delinquency 90+ Days represent the percentage of the total principal balance of the pool that corresponds to loans that are delinquent by 30–59 days, 60–89 days or 90 or more days, respectively. |
(H) | Collateral characteristics related to approximately $3.4 billion of UPB are as of February 29, 2016. |
Collateral Characteristics | ||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Original Principal Balance | Current Principal Balance | NRZ Effective Ownership % | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||||
Agency | ||||||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 246,168 | $ | 125,191,420 | $ | 57,027,438 | 33.3 | % | 458,305 | 685 | 4.9 | % | 283 | 96 | 10.5 | % | 19.3 | % | 16.1 | % | 3.8 | % | 28.7 | % | ||||||||||||||||||||
Recaptured Loans | 89,945 | — | 13,116,789 | 33.3 | % | 85,580 | 700 | 4.4 | % | 300 | 25 | 0.5 | % | 7.3 | % | 7.0 | % | 0.5 | % | 35.1 | % | |||||||||||||||||||||||
Recapture Agreement | 68,750 | — | — | 33.3 | % | — | — | — | % | — | — | — | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||
Total/ Weighted Average | $ | 404,863 | $ | 125,191,420 | $ | 70,144,227 | 543,885 | 688 | 4.8 | % | 286 | 83 | 8.6 | % | 17.3 | % | 14.6 | % | 3.2 | % | 29.3 | % |
Collateral Characteristics | |||||||||||||||||
Delinquency 30 Days(F) | Delinquency 60 Days(F) | Delinquency 90+ Days(F) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||
Agency | |||||||||||||||||
Original Pools | 4.8 | % | 1.4 | % | 1.1 | % | 3.5 | % | 1.2 | % | 0.7 | % | |||||
Recaptured Loans | 2.5 | % | 0.6 | % | 0.4 | % | 0.6 | % | — | % | 0.1 | % | |||||
Recapture Agreement | — | % | — | % | — | % | — | % | — | % | — | % | |||||
Total/Weighted Average | 4.4 | % | 1.3 | % | 0.9 | % | 3.0 | % | 0.9 | % | 0.6 | % |
(A) | The WA FICO score is based on the weighted average of information provided by the loan servicer on a monthly basis. The loan servicer generally updates the FICO score on a monthly basis. |
(B) | Adjustable Rate Mortgage % represents the percentage of the total principal balance of the pool that corresponds to adjustable rate mortgages. |
(C) | Three Month Average CPR, or the constant prepayment rate, represents the annualized rate of the prepayments during the quarter as a percentage of the total principal balance of the pool. |
(D) | Three Month Average CRR, or the voluntary prepayment rate, represents the annualized rate of the voluntary prepayments during the quarter as a percentage of the total principal balance of the pool. |
(E) | Three Month Average CDR, or the involuntary prepayment rate, represents the annualized rate of the involuntary prepayments (defaults) during the quarter as a percentage of the total principal balance of the pool. |
(F) | Delinquency 30 Days, Delinquency 60 Days and Delinquency 90+ Days represent the percentage of the total principal balance of the pool that corresponds to loans that are delinquent by 30-59 days, 60-89 days or 90 or more days, respectively. |
March 31, 2016 | Three Months Ended March 31, 2016 | ||||||||||||||||||
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | Change in Fair Value Recorded in Other Income | ||||||||||||||
Servicer Advances(C) | $ | 7,005,501 | $ | 7,001,004 | 5.5 | % | 5.3 | % | 4.5 | $ | (31,224 | ) |
(A) | Carrying Value represents the fair value of the investment in Servicer Advances, including the basic fee component of the related MSRs. |
(B) | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. |
(C) | Excludes our asset-backed securities collateralized by Servicer Advances, which have an aggregate face amount of $431.0 million and an aggregate carrying value of $431.0 million as of March 31, 2016. |
Loan-to-Value(A) | Cost of Funds(C) | ||||||||||||||||||||||||||
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Face Amount of Notes and Bonds Payable | Gross | Net(B) | Gross | Net | ||||||||||||||||||||
March 31, 2016 | |||||||||||||||||||||||||||
Servicer Advances(D) | $ | 212,135,668 | $ | 7,203,924 | 3.4 | % | $ | 6,880,413 | 93.9 | % | 92.8 | % | 3.4 | % | 2.7 | % |
(A) | Based on outstanding Servicer Advances, excluding purchased but unsettled Servicer Advances and certain deferred servicing fees (“DSF”) on which we received financing. If we were to include these DSF in the servicer advance balance, gross and net LTV as of March 31, 2016 would be 89.4% and 88.4%, respectively. Also excludes retained non-agency bonds with a current face amount of $175.8 million from the outstanding Servicer Advances debt. If we were to sell these bonds, gross and net LTV as of March 31, 2016 would be 96.3% and 95.2%, respectively. |
(B) | Ratio of face amount of borrowings to par amount of Servicer Advance collateral, net of any general reserve. |
(C) | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. |
(D) | The following types of advances comprise the investment in Servicer Advances: |
March 31, 2016 | ||||
Principal and interest advances | $ | 2,016,073 | ||
Escrow advances (taxes and insurance advances) | 3,504,808 | |||
Foreclosure advances | 1,683,043 | |||
Total | $ | 7,203,924 |
Gross Unrealized | ||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Outstanding Repurchase Agreements | ||||||||||||||||||
Servicer Advance Bonds | $ | 431,000 | $ | 430,754 | $ | 306 | $ | (103 | ) | $ | 430,957 | $ | (387,176 | ) |
(A) | Fair value, which is equal to carrying value for all securities. |
Gross Unrealized | ||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Outstanding Repurchase Agreements | ||||||||||||||||||
Agency ARM RMBS | $ | 175,679 | $ | 186,369 | $ | 102 | $ | (1,522 | ) | $ | 184,949 | $ | (184,247 | ) | ||||||||||
Agency Specified Pools | 1,274,620 | 1,337,825 | 429 | — | 1,338,254 | — | ||||||||||||||||||
Agency RMBS | $ | 1,450,299 | $ | 1,524,194 | $ | 531 | $ | (1,522 | ) | $ | 1,523,203 | $ | (184,247 | ) |
(A) | Fair value, which is equal to carrying value for all securities. |
Weighted Average | |||||||||||||||||||||||||||||||||||
Periodic Cap | |||||||||||||||||||||||||||||||||||
Months to Next Reset(A) | Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Carrying Value | Coupon | Margin | 1st Coupon Adjustment(B) | Subsequent Coupon Adjustment(C) | Lifetime Cap(D) | Months to Reset(E) | ||||||||||||||||||||||||
1 - 12 | 26 | $ | 175,679 | $ | 186,369 | 100.0 | % | $ | 184,949 | 2.6 | % | 1.8 | % | N/A | 2.0 | % | 8.9 | % | 4 |
(A) | Of these investments, 95.6% reset based on 12-month LIBOR index, 2.4% reset based on one-month LIBOR, and 2.0% reset based on the one-year Treasury Constant Maturity Rate. After the initial fixed period, 97.6% of these securities will reset annually and 2.4% will reset semi-annually. |
(B) | Represents the maximum change in the coupon after the end of the fixed rate period. All securities in this category are past the first coupon adjustment. |
(C) | Represents the maximum change in the coupon at each reset date subsequent to the first coupon adjustment. |
(D) | Represents the maximum coupon on the underlying security over its life. |
(E) | Represents recurrent weighted average months to the next interest rate reset. |
Agency RMBS Characteristics | Collateral Characteristics | ||||||||||||||||||||||
Vintage(A) | Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | 3 Month CPR(B) | ||||||||||||||||
Pre-2006 | 3 | $ | 9,282 | $ | 9,892 | 0.6 | % | $ | 9,745 | 5.8 | 23.3 | % | |||||||||||
2006 | 1 | 2,300 | 2,442 | 0.2 | % | 2,420 | 11.0 | 0.5 | % | ||||||||||||||
2007 | 3 | 4,942 | 5,092 | 0.3 | % | 5,128 | 7.4 | 2.5 | % | ||||||||||||||
2008 | 3 | 6,618 | 7,072 | 0.5 | % | 6,984 | 12.3 | 0.3 | % | ||||||||||||||
2009 | 3 | 14,896 | 15,924 | 1.0 | % | 15,590 | 4.2 | 3.5 | % | ||||||||||||||
2010 | 10 | 84,387 | 89,724 | 5.9 | % | 89,179 | 4.7 | 18.0 | % | ||||||||||||||
2011 | 1 | 4,426 | 4,426 | 0.3 | % | 4,437 | 5.6 | 3.2 | % | ||||||||||||||
2012 and later | 15 | 1,323,448 | 1,389,622 | 91.2 | % | 1,389,720 | 6.2 | — | % | ||||||||||||||
Total/Weighted Average | 39 | $ | 1,450,299 | $ | 1,524,194 | 100.0 | % | $ | 1,523,203 | 6.1 | 1.3 | % |
(A) | The year in which the securities were issued. |
(B) | Three month average constant prepayment rate. |
Net Interest Spread(A) | ||
Weighted Average Asset Yield | 1.95 | % |
Weighted Average Funding Cost | 0.70 | % |
Net Interest Spread | 1.25 | % |
(A) | The Agency RMBS portfolio consists of 12.2% floating rate securities and 87.8% fixed rate securities (based on amortized cost basis). See table above for details on rate resets of the floating rate securities. |
Gross Unrealized | ||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Outstanding Repurchase Agreements | ||||||||||||||||||
Non-Agency RMBS | $ | 4,316,034 | $ | 1,928,849 | $ | 21,699 | $ | (31,961 | ) | $ | 1,918,587 | $ | 1,490,273 |
(A) | Fair value, which is equal to carrying value for all securities. |
Non-Agency RMBS Characteristics(A) | |||||||||||||||||||||||||||||||
Vintage(B) | Average Minimum Rating(C) | Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Carrying Value | Principal Subordination(D) | Excess Spread(E) | Weighted Average Life (Years) | Weighted Average Coupon(F) | |||||||||||||||||||||
Pre 2004 | CCC+ | 113 | $ | 225,103 | $ | 147,664 | 9.9 | % | $ | 151,110 | 9.3 | % | 0.8 | % | 6.4 | 2.5 | % | ||||||||||||||
2004 | CCC | 40 | 232,151 | 181,992 | 12.2 | % | 183,489 | 16.2 | % | 1.9 | % | 9.0 | 2.1 | % | |||||||||||||||||
2005 | CC | 39 | 484,778 | 357,263 | 23.8 | % | 346,767 | 13.6 | % | 2.8 | % | 9.2 | 1.0 | % | |||||||||||||||||
2006 and later | B | 83 | 2,943,001 | 811,177 | 54.1 | % | 806,265 | 9.0 | % | 1.9 | % | 10.2 | 1.3 | % | |||||||||||||||||
Total/Weighted Average | CCC+ | 275 | $ | 3,885,033 | $ | 1,498,096 | 100.0 | % | $ | 1,487,631 | 11.2 | % | 2.0 | % | 9.5 | 1.4 | % |
Collateral Characteristics(A) (G) | |||||||||||||||
Vintage(B) | Average Loan Age (years) | Collateral Factor(H) | 3 month CPR(I) | Delinquency(J) | Cumulative Losses to Date | ||||||||||
Pre 2004 | 17.0 | 0.08 | 1.6 | % | 11.4 | % | 6.1 | % | |||||||
2004 | 11.8 | 0.12 | 5.2 | % | 13.8 | % | 8.1 | % | |||||||
2005 | 10.9 | 0.10 | 3.8 | % | 17.2 | % | 30.8 | % | |||||||
2006 and later | 9.0 | 0.47 | 4.1 | % | 15.4 | % | 19.6 | % | |||||||
Total/Weighted Average | 10.6 | 0.30 | 5.7 | % | 15.2 | % | 15.7 | % |
(A) | Excludes $431.0 million face amount of bonds backed by servicer advances. |
(B) | The year in which the securities were issued. |
(C) | Ratings provided above were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. This excludes the ratings of the collateral underlying 84 bonds with a carrying value of $341.6 million, which either have never been rated or for which rating information is no longer provided. We had no assets that were on negative watch for possible downgrade by at least one rating agency as of March 31, 2016. |
(D) | The percentage of amortized cost basis of securities and residual interests that is subordinate to our investments. This excludes interest-only bonds. |
(E) | The current amount of interest received on the underlying loans in excess of the interest paid on the securities, as a percentage of the outstanding collateral balance for the quarter ended March 31, 2016. |
(F) | Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $220.5 million and $0.0 million, respectively, for which no coupon payment is expected. |
(G) | The weighted average loan size of the underlying collateral is $267.0 thousand. |
(H) | The ratio of original UPB of loans still outstanding. |
(I) | Three month average constant prepayment rate. |
(J) | The percentage of underlying loans that are 90+ days delinquent, or in foreclosure or considered REO. |
Net Interest Spread(A) | ||
Weighted Average Asset Yield | 5.23 | % |
Weighted Average Funding Cost | 1.96 | % |
Net Interest Spread | 3.27 | % |
(A) | The Non-Agency RMBS portfolio consists of 59.8% floating rate securities and 40.2% fixed rate securities (based on amortized cost basis). |
Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | Floating Rate Loans as a % of Face Amount | Loan to Value Ratio (“LTV”)(B) | Weighted Avg. Delinquency(C) | Weighted Average FICO(D) | ||||||||||||||||||||
Loan Type | ||||||||||||||||||||||||||||
Reverse Mortgage Loans(E)(F) | $ | 32,633 | $ | 18,142 | 122 | 7.4 | % | 4.4 | 19.8 | % | 133.5 | % | 65.7 | % | N/A | |||||||||||||
Performing Loans(G) | 20,884 | 19,462 | 663 | 8.9 | % | 5.6 | 17.3 | % | 77.2 | % | 7.3 | % | 626 | |||||||||||||||
Purchased Credit Deteriorated (“PCD”) Loans(H) | 439,649 | 287,130 | 2,037 | 5.5 | % | 2.6 | 18.7 | % | 116.4 | % | 93.1 | % | 577 | |||||||||||||||
Total Residential Mortgage Loans, held-for- investment | $ | 493,166 | $ | 324,734 | 2,822 | 5.8 | % | 2.8 | 18.7 | % | 115.9 | % | 87.7 | % | 580 | |||||||||||||
Performing Loans, held-for-sale(G) | $ | 143,384 | $ | 151,001 | 1,671 | 3.8 | % | 4.7 | 9.6 | % | 58.1 | % | 3.7 | % | 665 | |||||||||||||
Non-performing Loans, held-for-sale(H)(I) | 572,988 | 482,159 | 3,425 | 7.0 | % | 2.7 | 15.3 | % | 104.0 | % | 79.1 | % | 571 | |||||||||||||||
Residential Mortgage Loans, held-for-sale | $ | 716,372 | $ | 633,160 | 5,096 | 6.3 | % | 3.1 | 14.2 | % | 94.8 | % | 64.0 | % | 590 |
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. |
(B) | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. |
(C) | Represents the percentage of the total principal balance that are 60+ days delinquent. |
(D) | The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. |
(E) | Represents a 70% participation interest we hold in a portfolio of reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.4 million and 60% of these loans outstanding have reached a termination event. As a result of the termination event, each such loan has matured and the borrower can no longer make draws on these loans. |
(F) | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. |
(G) | Includes loans that are current or less than 30 days past due at acquisition where we expect to collect all contractually required principal and interest payments. Presented net of unamortized premiums of $8.7 million. |
(H) | Includes loans with evidence of credit deterioration since origination where it is probable that we will not collect all contractually required principal and interest payments. As of March 31, 2016, we have placed all of these loans on nonaccrual status, except as described in (I) below. |
(I) | Includes $232.1 million UPB of Ginnie Mae EBO non-performing loans on accrual status because contractual cash flows are guaranteed by the FHA. |
Collateral Characteristics | ||||||||||||||||||||||||||||||||||||||||||
UPB(A) | Personal Unsecured Loans % | Personal Homeowner Loans % | Number of Loans | Weighted Average Original FICO Score(B) | Weighted Average Coupon | Adjustable Rate Loan % | Average Loan Age (months) | Average Expected Life (Years) | Delinquency 30 Days(C) | Delinquency 60 Days(C) | Delinquency 90+ Days(C) | CRR(D) | CDR(E) | |||||||||||||||||||||||||||||
Consumer loans, held-for-investment | $ | 1,986,162 | 67.4 | % | 32.6 | % | 225,753 | 635 | 18.3 | % | 11.0 | % | 130 | 4.2 | 2.9 | % | 1.7 | % | 2.5 | % | 18.5 | % | 5.6 | % |
(A) | As of February 29, 2016. |
(B) | Weighted average original FICO score represents the FICO score at the time the loan was originated. |
(C) | Delinquency 30 Days, Delinquency 60 Days and Delinquency 90+ Days represent the percentage of the total principal balance of the pool that corresponds to loans that are delinquent by 30-59 days, 60-89 days or 90 or more days, respectively. |
(D) | 3 Month CRR, or the voluntary prepayment rate, represents the annualized rate of the voluntary prepayments during the three months as a percentage of the total principal balance of the pool, net of draws on revolving loans. |
(E) | 3 Month CDR, or the involuntary prepayment rate, represents the annualized rate of the involuntary prepayments (defaults) during the three months as a percentage of the total principal balance of the pool. |
Fair value at March 31, 2016 | $ | 1,547,004 | ||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 1,678,345 | $ | 1,609,898 | $ | 1,489,048 | $ | 1,435,499 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 131,341 | $ | 62,894 | $ | (57,956 | ) | $ | (111,505 | ) | ||||||
% | 8.5 | % | 4.1 | % | (3.7 | )% | (7.2 | )% | ||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 1,680,304 | $ | 1,611,364 | $ | 1,486,828 | $ | 1,430,482 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 133,300 | $ | 64,360 | $ | (60,176 | ) | $ | (116,522 | ) | ||||||
% | 8.6 | % | 4.2 | % | (3.9 | )% | (7.5 | )% | ||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 1,552,303 | $ | 1,549,654 | $ | 1,544,353 | $ | 1,541,702 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 5,299 | $ | 2,650 | $ | (2,651 | ) | $ | (5,302 | ) | ||||||
% | 0.3 | % | 0.2 | % | (0.2 | )% | (0.3 | )% | ||||||||
Recapture rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 1,531,339 | $ | 1,539,119 | $ | 1,554,996 | $ | 1,563,098 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | (15,665 | ) | $ | (7,885 | ) | $ | 7,992 | $ | 16,094 | ||||||
% | (1.0 | )% | (0.5 | )% | 0.5 | % | 1.0 | % |
Fair value at March 31, 2016 | $ | 209,901 | ||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 228,138 | $ | 218,619 | $ | 201,892 | $ | 194,513 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 18,237 | $ | 8,718 | $ | (8,009 | ) | $ | (15,388 | ) | ||||||
% | 8.7 | % | 4.2 | % | (3.8 | )% | (7.3 | )% | ||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 225,434 | $ | 217,439 | $ | 202,793 | $ | 196,087 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 15,533 | $ | 7,538 | $ | (7,108 | ) | $ | (13,814 | ) | ||||||
% | 7.4 | % | 3.6 | % | (3.4 | )% | (6.6 | )% | ||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 213,866 | $ | 211,884 | $ | 207,918 | $ | 205,935 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | 3,965 | $ | 1,983 | $ | (1,983 | ) | $ | (3,966 | ) | ||||||
% | 1.9 | % | 0.9 | % | (0.9 | )% | (1.9 | )% | ||||||||
Recapture rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||
Estimated fair value | $ | 202,681 | $ | 206,268 | $ | 213,580 | $ | 217,306 | ||||||||
Change in estimated fair value: | ||||||||||||||||
Amount | $ | (7,220 | ) | $ | (3,633 | ) | $ | 3,679 | $ | 7,405 | ||||||
% | (3.4 | )% | (1.7 | )% | 1.8 | % | 3.5 | % |
Three Months Ended March 31, | Increase (Decrease) | ||||||||||
2016 | 2015 | Amount | |||||||||
Interest income | $ | 190,036 | $ | 84,373 | $ | 105,663 | |||||
Interest expense | 81,228 | 33,979 | 47,249 | ||||||||
Net Interest Income | 108,808 | 50,394 | 58,414 | ||||||||
Impairment | |||||||||||
Other-than-temporary impairment (OTTI) on securities | 3,254 | 1,071 | 2,183 | ||||||||
Valuation and loss provision (reversal) on loans and real estate owned | 6,745 | 977 | 5,768 | ||||||||
9,999 | 2,048 | 7,951 | |||||||||
Net interest income after impairment | 98,809 | 48,346 | 50,463 | ||||||||
Other Income | |||||||||||
Change in fair value of investments in excess mortgage servicing rights | 7,926 | (1,761 | ) | 9,687 | |||||||
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 3,022 | 4,921 | (1,899 | ) | |||||||
Change in fair value of investments in servicer advances | (31,224 | ) | (7,669 | ) | (23,555 | ) | |||||
Gain on consumer loans investment | 9,943 | 10,447 | (504 | ) | |||||||
Gain on remeasurement of consumer loans investment | 71,250 | — | 71,250 | ||||||||
Gain (loss) on settlement of investments, net | (14,500 | ) | 14,767 | (29,267 | ) | ||||||
Other income (loss), net | (14,495 | ) | (8,410 | ) | (6,085 | ) | |||||
31,922 | 12,295 | 19,627 | |||||||||
Operating Expenses | |||||||||||
General and administrative expenses | 12,081 | 8,560 | 3,521 | ||||||||
Management fee to affiliate | 10,008 | 5,126 | 4,882 | ||||||||
Incentive compensation to affiliate | 1,196 | 3,693 | (2,497 | ) | |||||||
Loan servicing expense | 1,731 | 4,891 | (3,160 | ) | |||||||
25,016 | 22,270 | 2,746 | |||||||||
Income (Loss) Before Income Taxes | 105,715 | 38,371 | 67,344 | ||||||||
Income tax expense (benefit) | (10,223 | ) | (3,427 | ) | (6,796 | ) | |||||
Net Income (Loss) | $ | 115,938 | $ | 41,798 | $ | 74,140 | |||||
Noncontrolling Interests in Income (Loss) of Consolidated Subsidiaries | $ | 4,202 | $ | 5,823 | $ | (1,621 | ) | ||||
Net Income (Loss) Attributable to Common Stockholders | $ | 111,736 | $ | 35,975 | $ | 75,761 |
• | Access to Financing from Counterparties – Decisions by investors, counterparties and lenders to enter into transactions with us will depend upon a number of factors, such as our historical and projected financial performance, compliance with the terms of our current credit arrangements, industry and market trends, the availability of capital and our investors’, counterparties’ and lenders’ policies and rates applicable thereto, and the relative attractiveness of alternative investment or lending opportunities. Our business strategy is dependent upon our ability to finance certain of our investments at rates that provide a positive net spread. |
• | Impact of Expected Repayment or Forecasted Sale on Cash Flows – The timing of and proceeds from the repayment or sale of certain investments may be different than expected or may not occur as expected. Proceeds from sales of assets are unpredictable and may vary materially from their estimated fair value and their carrying value. Further, the availability of investments that provide similar returns to those repaid or sold investments is unpredictable and returns on new investments may vary materially from those on existing investments. |
March 31, 2016 | |||||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Month Issued | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | |||||||||||||||||||||
Repurchase Agreements(C) | |||||||||||||||||||||||||||||||
Agency RMBS(D) | Various | $ | 1,629,971 | $ | 1,629,971 | Apr-16 | 0.70 | % | 0.1 | $ | 1,612,119 | $ | 1,667,876 | $ | 1,691,144 | 0.6 | |||||||||||||||
Non-Agency RMBS (E) | Various | 1,490,273 | 1,490,273 | Apr-16 to Jun-16 | 1.96 | % | 0.1 | 3,599,118 | 1,788,871 | 1,777,260 | 7.2 | ||||||||||||||||||||
Residential Mortgage Loans(F) | Various | 723,954 | 723,167 | May-16 to Mar-17 | 2.87 | % | 0.6 | 1,119,845 | 886,918 | 884,110 | 3.1 | ||||||||||||||||||||
Real Estate Owned(G)(H) | Various | 95,983 | 95,878 | May-16 to Mar-17 | 2.76 | % | 0.6 | N/A | N/A | 108,330 | N/A | ||||||||||||||||||||
Consumer Loan Investment(I) | Apr-15 | 34,223 | 34,223 | Apr-16 | 4.11 | % | 0.1 | N/A | N/A | 71,250 | 4.2 | ||||||||||||||||||||
Total Repurchase Agreements | 3,974,404 | 3,973,512 | 1.65 | % | 0.2 | ||||||||||||||||||||||||||
Notes and Bonds Payable | |||||||||||||||||||||||||||||||
Secured Corporate Note(J) | May-15 | 182,772 | 181,602 | Apr-17 | 5.69 | % | 1.1 | 89,074,745 | 212,250 | 258,422 | 5.2 | ||||||||||||||||||||
Servicer Advances(K) | Various | 6,880,413 | 6,868,732 | Aug-16 to Aug-18 | 3.44 | % | 1.2 | 7,203,924 | 7,005,501 | 7,001,004 | 4.5 | ||||||||||||||||||||
Residential Mortgage Loans(L) | Oct-15 | 13,786 | 13,786 | Oct-16 | 3.30 | % | 0.5 | 20,801 | 13,914 | 12,809 | 4.4 | ||||||||||||||||||||
Consumer Loans(M) | Oct-14 | 1,808,211 | 1,803,192 | May-23 to Apr-34 | 4.14 | % | 3.7 | 1,986,162 | 1,951,879 | 1,951,879 | 4.2 | ||||||||||||||||||||
Receivable from government agency(L) | Oct-15 | 3,539 | 3,539 | — | 3.30 | % | 0.5 | N/A | N/A | 5,333 | N/A | ||||||||||||||||||||
Total Notes and Bonds Payable | 8,888,721 | 8,870,851 | 3.63 | % | 1.7 | ||||||||||||||||||||||||||
Total/ Weighted Average | $ | 12,863,125 | $ | 12,844,363 | 3.02 | % | 1.2 |
(A) | Net of deferred financing costs. |
(B) | All debt obligations with a stated maturity of April 2016 were refinanced, extended, or repaid. |
(C) | These repurchase agreements had approximately $6.7 million of associated accrued interest payable as of March 31, 2016. |
(D) | All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. |
(E) | All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. |
(F) | All of these repurchase agreements have LIBOR-based floating interest rates. |
(G) | All of these repurchase agreements have LIBOR-based floating interest rates. |
(H) | Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which we have made or intend to make a claim on the FHA guarantee. |
(I) | The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by 56% of our interest in the Consumer Loan Companies (Note 9 to our Condensed Consolidated Financial Statements). |
(J) | The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. |
(K) | $2.7 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.7% to 2.2%. |
(L) | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. |
(M) | Represents the debt assumed in the SpringCastle Transaction (Note 1 to our Condensed Consolidated Financial Statements), which is comprised of the following classes of asset-backed notes (collectively, the “2014-A Notes”) held by third parties: $850.2 million UPB of Class A notes with a coupon of 2.7% and a stated maturity date in May 2023 (the “Class A Notes”); $427.0 million UPB of Class B notes with a coupon of 4.61% and a stated maturity date in October 2027 (the “Class B Notes”); $331.2 million UPB of Class C notes with a coupon of 5.59% and a stated maturity date in October 2033 (the “Class C Notes”); and $199.8 million UPB of Class D notes with a coupon of 6.82% and a stated |
Three Months Ended March 31, 2016 | ||||||||||||||
Outstanding Balance at March 31, 2016 | Average Daily Amount Outstanding(A) | Maximum Amount Outstanding | Weighted Average Daily Interest Rate | |||||||||||
Repurchase Agreements | ||||||||||||||
Agency RMBS | $ | 1,629,971 | $ | 1,637,506 | $ | 1,683,305 | 0.69 | % | ||||||
Non-Agency RMBS | 1,490,273 | 1,369,703 | 1,490,273 | 1.86 | % | |||||||||
Residential Mortgage Loans | 723,954 | 889,834 | 974,408 | 2.80 | % | |||||||||
Real Estate Owned | 95,983 | 87,270 | 97,943 | 3.07 | % | |||||||||
Consumer Loans | 34,223 | 34,569 | 40,446 | 4.10 | % | |||||||||
Notes and Bonds Payable | ||||||||||||||
Servicer Advances | 2,916,719 | 2,651,087 | 2,961,031 | 2.43 | % | |||||||||
Residential Mortgage Loans | 13,786 | 14,260 | 15,652 | 3.26 | % | |||||||||
Real Estate Owned | 3,539 | 3,518 | 3,877 | 3.26 | % | |||||||||
Total/Weighted Average | $ | 6,908,448 | $ | 6,687,747 | $ | 7,266,935 | 1.96 | % |
(A) | Represents the average for the period the debt was outstanding. |
Year | Nonrecourse(A) | Recourse(B) | Total | |||||||||
April 1 through December 31, 2016 | $ | 1,547,745 | $ | 3,652,241 | $ | 5,199,986 | ||||||
2017 | 5,045,240 | 441,308 | 5,486,548 | |||||||||
2018 | 368,380 | — | 368,380 | |||||||||
2019 | — | — | — | |||||||||
2020 | — | — | — | |||||||||
2021 and thereafter | 1,808,211 | — | 1,808,211 | |||||||||
$ | 8,769,576 | $ | 4,093,549 | $ | 12,863,125 |
(A) | Includes repurchase agreements and notes and bonds payable of $81.0 million and $8,688.6 million, respectively. |
(B) | Includes repurchase agreements and notes and bonds payable of $3,893.5 million and $200.1 million, respectively. |
Borrowing | Balance | Available | ||||||||||||
Debt Obligations/ Collateral | Collateral Type | Capacity | Outstanding | Financing | ||||||||||
Repurchase Agreements | ||||||||||||||
Residential Mortgage Loans | Real Estate Loans | $ | 2,435,000 | $ | 819,937 | $ | 1,615,063 | |||||||
Notes and Bonds Payable | ||||||||||||||
Servicer Advances(A) | Servicer Advances | 7,574,183 | 6,880,413 | 693,770 | ||||||||||
$ | 10,009,183 | $ | 7,700,350 | $ | 2,308,833 |
(A) | Our unused borrowing capacity is available to us if we have additional eligible collateral to pledge and meet other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. We pay a 0.3% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained non-agency bonds with a current face amount of $175.8 million. |
March 31, 2016 | ||||||||
Issued Prior to 2011 | Issued in 2011 - 2015 | Total | ||||||
Held by the Manager | 345,720 | 8,874,152 | 9,219,872 | |||||
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | 88,280 | 3,067,955 | 3,156,235 | |||||
Issued to the independent directors | — | 4,000 | 4,000 | |||||
Total | 434,000 | 11,946,107 | 12,380,107 |
Total Accumulated Other Comprehensive Income | |||
Accumulated other comprehensive income, December 31, 2015 | $ | 3,936 | |
Net unrealized gain (loss) on securities | (19,969 | ) | |
Reclassification of net realized (gain) loss on securities into earnings | 3,121 | ||
Accumulated other comprehensive income (loss), March 31, 2016 | $ | (12,912 | ) |
Common Dividends Declared for the Period Ended | Paid | Amount Per Share | ||||
December 31, 2015 | January 2016 | $ | 0.46 | |||
March 31, 2016 | April 2016 | $ | 0.46 |
• | Derivatives – as described in Note 10 to our Condensed Consolidated Financial Statements, we have altered the composition of our economic hedges during the period. |
• | Debt obligations – as described in Note 11 and Note 18 to our Condensed Consolidated Financial Statements, we borrowed additional amounts, including borrowings to fund servicer advances and Excess MSRs, and to purchase loans and securities. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income attributable to common stockholders | $ | 111,736 | $ | 35,975 | |||
Impairment | 9,999 | 2,048 | |||||
Other Income adjustments: | |||||||
Other Income | |||||||
Change in fair value of investments in excess mortgage servicing rights | (7,926 | ) | 1,761 | ||||
Change in fair value of investments in excess mortgage servicing rights, equity method investees | (3,022 | ) | (4,921 | ) | |||
Change in fair value of investments in servicer advances | 31,224 | 7,669 | |||||
Gain on consumer loans investment | (9,943 | ) | (10,447 | ) | |||
Gain on remeasurement of consumer loans investment | (71,250 | ) | — | ||||
(Gain) loss on settlement of investments, net | 14,500 | (14,767 | ) | ||||
Unrealized (gain) loss on derivative instruments | 22,303 | 7,030 | |||||
(Gain) loss on transfer of loans to REO | (2,483 | ) | 544 | ||||
Unrealized (gain) loss on other ABS | (268 | ) | 290 | ||||
Gain on Excess MSR recapture agreements | (732 | ) | (730 | ) | |||
Other (income) loss | 1,528 | 1,276 | |||||
Other Income attributable to non-controlling interests | (992 | ) | (4,529 | ) | |||
Total Other Income Adjustments | (27,061 | ) | (16,824 | ) | |||
Incentive compensation to affiliate | 1,196 | 3,693 | |||||
Non-capitalized transaction-related expenses | 5,970 | 5,549 | |||||
Deferred taxes | (10,681 | ) | (3,007 | ) | |||
Interest income on residential mortgage loans, held-for-sale | 1,912 | 13,435 | |||||
Limit on RMBS discount accretion related to called deals | (2,649 | ) | — | ||||
Core earnings of equity method investees: | |||||||
Excess mortgage servicing rights | 4,029 | 5,838 | |||||
Consumer loans | 17,906 | 16,758 | |||||
Core Earnings | $ | 112,357 | $ | 63,465 |
• | rates of prepayment and repayment of the underlying loans; |
• | potential fluctuations in prevailing interest rates; |
• | rates of delinquencies and defaults; and |
• | in the case of MSRs, recapture rates; and |
• | in the case of servicer advances, the amount and timing of servicer advances and recoveries. |
• | payments on the servicer advances and the deferred servicing fees depend on the source of repayment, and whether and when the related servicer receives such payment (certain servicer advances are reimbursable only out of late payments and other collections and recoveries on the related mortgage loan, while others are also reimbursable out of principal and interest collections with respect to all mortgage loans serviced under the related servicing agreement, and as a consequence, the timing of such reimbursement is highly uncertain); |
• | the length of time necessary to obtain liquidation proceeds may be affected by conditions in the real estate market or the financial markets generally, the availability of financing for the acquisition of the real estate and other factors, including, but not limited to, government intervention; |
• | the length of time necessary to effect a foreclosure may be affected by variations in the laws of the particular jurisdiction in which the related mortgaged property is located, including whether or not foreclosure requires judicial action; |
• | the requirements for judicial actions for foreclosure (which can result in substantial delays in reimbursement of servicer advances and payment of deferred servicing fees), which vary from time to time as a result of changes in applicable state law; and |
• | the ability of the related servicer to sell delinquent mortgage loans to third parties prior to liquidation, resulting in the early reimbursement of outstanding unreimbursed servicer advances in respect of such mortgage loans. |
• | its failure to comply with applicable laws and regulation; |
• | a downgrade in its servicer rating; |
• | its failure to maintain sufficient liquidity or access to sources of liquidity; |
• | its failure to perform its loss mitigation obligations; |
• | its failure to perform adequately in its external audits; |
• | a failure in or poor performance of its operational systems or infrastructure; |
• | regulatory or legal scrutiny regarding any aspect of a servicer’s operations, including, but not limited to, servicing practices and foreclosure processes lengthening foreclosure timelines; |
• | a GSE’s or a whole-loan owner’s transfer of servicing to another party; or |
• | any other reason. |
• | A commitment by Ocwen to service loans in accordance with specified servicing guidelines and to be subject to oversight by an independent national monitor for three years; |
• | A payment of $127.3 million to a consumer relief fund to be disbursed by an independent administrator to eligible borrowers. In May 2014, Ocwen satisfied this obligation with regard to the consumer relief fund, $60.4 million of which is the responsibility of former owners of certain servicing portfolios acquired by Ocwen, pursuant to indemnification and loss sharing provisions in the applicable agreements; and |
• | A commitment by Ocwen to continue its principal forgiveness modification programs to delinquent and underwater borrowers, including underwater borrowers at imminent risk of default, in an aggregate amount of at least $2.0 billion over three years from the date of the consent order. Ocwen will only receive credit towards its $2.0 billion commitment for principal reductions that satisfy various criteria set forth in the settlement. If Ocwen fails to fulfill its $2.0 billion commitment before the deadline, Ocwen will be required to pay a cash penalty in an amount equal to the unmet commitment amount, unless the parties to the settlement negotiate an extension or other modification of the terms of the commitment. |
• | Payment of $100 million to the NY DFS to be used by the State of New York for housing, foreclosure relief and community redevelopment programs; |
• | Payment of $50 million as restitution to certain New York borrowers; |
• | Installation of a NY DFS Operations Monitor to monitor and assess the adequacy and effectiveness of Ocwen’s operations for a period of two years, which may be extended another 12 months at the option of the NY DFS; |
• | Requirements that Ocwen will not share any common officers or employees with any related party and will not share risk, internal audit or vendor oversight functions with any related party; |
• | Requirements that certain Ocwen employees, officers and directors be recused from negotiating or voting to approve certain transactions with a related party; |
• | Resignation of Ocwen’s Chairman of the Board from the Board of Directors of Ocwen and at related companies, including HLSS; and |
• | Restrictions on Ocwen’s ability to acquire new MSRs. |
• | Payment of $2.5 million; |
• | Engagement of an independent auditor to assess Ocwen’s compliance with laws and regulations impacting California’ borrowers for a period of at least two years; and |
• | Prevention of Ocwen from acquiring additional MSRs for loans secured in the State of California until the CA DBO is satisfied that Ocwen can satisfactorily respond to the requests for information and documentation made in the course of a regulatory exam. |
• | By regulatory actions taken against Ocwen; |
• | By a default by Ocwen under its debt agreements; |
• | By further downgrades in Ocwen’s servicer rating; |
• | If Ocwen fails to ensure its servicer advances comply with the terms of its Pooling and Servicing Agreements (“PSAs”); |
• | If Ocwen were terminated as servicer under certain PSAs; |
• | If Ocwen becomes subject to a bankruptcy proceeding; or |
• | If Ocwen fails to meet its obligations or is deemed to be in default under the indenture governing notes issued under any servicer advance facility with respect to which Ocwen is the servicer. |
• | Was made to or for the benefit of a creditor; |
• | Was for or on account of an antecedent debt owed by such servicer before that transfer was made; |
• | Was made while such servicer was insolvent (a company is presumed to have been insolvent on and during the 90 days preceding the date the company’s bankruptcy petition was filed); |
• | Was made on or within 90 days (or if we are determined to be a statutory insider, on or within one year) before such servicer’s bankruptcy filing; |
• | Permitted us to receive more than we would have received in a Chapter 7 liquidation case of such servicer under U.S. bankruptcy laws; and |
• | Was a payment as to which none of the statutory defenses to a preference action apply. |
• | interest rates and credit spreads; |
• | the availability of credit, including the price, terms and conditions under which it can be obtained; |
• | the quality, pricing and availability of suitable investments and credit losses with respect to our investments; |
• | the ability to obtain accurate market-based valuations; |
• | the ability of securities dealers to make markets in relevant securities and loans; |
• | loan values relative to the value of the underlying real estate assets; |
• | default rates on the loans underlying our investments and the amount of the related losses; |
• | prepayment speeds, delinquency rates and legislative/regulatory changes with respect to our investments in Excess MSRs, servicer advances, RMBS, and loans, and the timing and amount of servicer advances; |
• | the actual and perceived state of the real estate markets, market for dividend-paying stocks and public capital markets generally; |
• | unemployment rates; and |
• | the attractiveness of other types of investments relative to investments in real estate or REITs generally. |
• | part of the income and gain recognized by certain qualified employee pension trusts with respect to our stock may be treated as unrelated business taxable income if shares of our stock are predominantly held by qualified employee pension trusts, and we are required to rely on a special look-through rule for purposes of meeting one of the REIT ownership tests, and we are not operated in a manner to avoid treatment of such income or gain as unrelated business taxable income; |
• | part of the income and gain recognized by a tax-exempt investor with respect to our stock would constitute unrelated business taxable income if the investor incurs debt in order to acquire the stock; and |
• | to the extent that we are (or a part of us, or a disregarded subsidiary of ours, is) a “taxable mortgage pool,” or if we hold residual interests in a real estate mortgage investment conduit (“REMIC”), a portion of the distributions paid to a tax exempt stockholder that is allocable to excess inclusion income may be treated as unrelated business taxable income. |
• | a shift in our investor base; |
• | our quarterly or annual earnings, or those of other comparable companies; |
• | actual or anticipated fluctuations in our operating results; |
• | changes in accounting standards, policies, guidance, interpretations or principles; |
• | announcements by us or our competitors of significant investments, acquisitions or dispositions; |
• | the failure of securities analysts to cover our common stock; |
• | changes in earnings estimates by securities analysts or our ability to meet those estimates; |
• | market performance of affiliates and other counterparties with whom we conduct business; |
• | the operating and stock price performance of other comparable companies; |
• | overall market fluctuations; and |
• | general economic conditions. |
• | a classified board of directors with staggered three-year terms; |
• | provisions regarding the election of directors, classes of directors, the term of office of directors, the filling of director vacancies and the resignation and removal of directors for cause only upon the affirmative vote of at least 80% of the then issued and outstanding shares of our capital stock entitled to vote thereon; |
• | provisions regarding corporate opportunity only upon the affirmative vote of at least 80% of the then issued and outstanding shares of our capital stock entitled to vote thereon; |
• | removal of directors only for cause and only with the affirmative vote of at least 80% of the then issued and outstanding shares of our capital stock entitled to vote in the election of directors; |
• | our board of directors to determine the powers, preferences and rights of our preferred stock and to issue such preferred stock without stockholder approval; |
• | advance notice requirements applicable to stockholders for director nominations and actions to be taken at annual meetings; |
• | a prohibition, in our certificate of incorporation, stating that no holder of shares of our common stock will have cumulative voting rights in the election of directors, which means that the holders of a majority of the issued and outstanding shares of common stock can elect all the directors standing for election; and |
• | a requirement in our bylaws specifically denying the ability of our stockholders to consent in writing to take any action in lieu of taking such action at a duly called annual or special meeting of our stockholders. |
Exhibit Number | Exhibit Description | ||
2.1 | Separation and Distribution Agreement dated April 26, 2013, between New Residential Investment Corp. and Newcastle Investment Corp. (incorporated by reference to Amendment No. 6 of New Residential Investment Corp.’s Registration Statement on Form 10, filed April 29, 2013) | ||
2.2 | Purchase Agreement, among the Sellers listed therein, HSBC Finance Corporation and SpringCastle Acquisition LLC, dated March 5, 2013 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed March 11, 2013) | ||
2.3 | Master Servicing Rights Purchase Agreement between Nationstar Mortgage LLC and Advance Purchaser LLC, dated as of December 17, 2013 (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on December 23, 2013) | ||
2.4 | Sale Supplement (Shuttle 1) between Nationstar Mortgage LLC and Advance Purchaser LLC, dated as of December 17, 2013 (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on December 23, 2013) | ||
2.5 | Sale Supplement (Shuttle 2) between Nationstar Mortgage LLC and Advance Purchaser LLC, dated as of December 17, 2013 (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on December 23, 2013) | ||
2.6 | Sale Supplement (First Tennessee) between Nationstar Mortgage LLC and Advance Purchaser LLC, dated as of December 17, 2013 (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on December 23, 2013) | ||
2.7 | Agreement and Plan of Merger, dated as of February 22, 2015, by and among New Residential Investment Corp., Hexagon Merger Sub, Ltd. and Home Loan Servicing Solutions, Ltd. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on February 24, 2015) | ||
2.8 | Termination Agreement, dated as of April 6, 2015, by and among New Residential Investment Corp., Home Loan Servicing Solutions, Ltd. and Hexagon Merger Sub Ltd. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on April 10, 2015) | ||
2.9 | Share and Asset Purchase Agreement, dated as of April 6, 2015, by and among New Residential Investment Corp., HLSS Advances Acquisition Corp., HLSS MSR-EBO Acquisition LLC and Home Loan Servicing Solutions, Ltd. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on April 10, 2015) | ||
2.10 | Purchase Agreement, dated as of March 31, 3016, by and among SpringCastle Holdings, LLC, Springleaf Acquisition Corporation, Springleaf Finance, Inc., NRZ Consumer LLC, NRZ SC America LLC, NRZ SC Credit Limited, NRZ SC Finance I LLC, NRZ SC Finance II LLC, NRZ SC Finance III LLC, NRZ SC Finance IV LLC, NRZ SC Finance V LLC, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P., and solely with respect to Section 11(a) and Section 11(g), NRZ SC America Trust 2015-1, NRZ SC Credit Trust 2015-1, NRZ SC Finance Trust 2015-1, and BTO Willow Holdings, L.P. | ||
3.1 | Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||
3.2 | Amended and Restated Bylaws of New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||
3.3 | Amendment to Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on October 17, 2014) | ||
4.1 | Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
4.2 | Series 2015-T1 Indenture Supplement, dated as of August 28, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
Exhibit Number | Exhibit Description | ||
4.3 | Series 2015-T2 Indenture Supplement, dated as of August 28, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
4.4 | Series 2015-VF1 Indenture Supplement, dated as of August 28, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
4.5 | Amendment No. 1, dated as of November 24, 2015, to the Series 2015-VF1 Indenture Supplement, dated as of August 28, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2015) | ||
4.6 | Amendment No. 2, dated as of March 22, 2016, to the Series 2015-VF1 Indenture Supplement, dated as of August 28, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed March 24, 2016) | ||
4.7 | Series 2015-T3 Indenture Supplement, dated as of November 24, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Annual Report on Form 10-K,for the annual period ended December 31, 2015) | ||
4.8 | Series 2015-T4 Indenture Supplement, dated as of November 24, 2015, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to New Residential Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2015) | ||
4.9 | Series 2014-A Indenture dated as of October 3, 2014, by and among SpringCastle America Funding, LLC, SpringCastle Credit Funding, LLC, and SpringCastle Finance Funding, LLC, as co-issuers, Wilmington Trust, National Association, as loan trustee, Springleaf Finance, Inc., as servicer, Wells Fargo Bank, National Association, as paying agent and note registrar, and U.S. Bank National Association, as indenture trustee | ||
10.1 | Third Amended and Restated Management and Advisory Agreement between New Residential Investment Corp. and FIG LLC, dated May 7, 2015 (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015) | ||
10.2 | Form of Indemnification Agreement by and between New Residential Investment Corp. and its directors and officers (incorporated by reference to Amendment No. 3 of New Residential Investment Corp.’s Registration Statement on Form 10, filed March 27, 2013) | ||
10.3 | New Residential Investment Corp. Nonqualified Stock Option and Incentive Award Plan (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||
10.4 | Amended and Restated New Residential Investment Corp. Nonqualified Stock Option and Incentive Plan, adopted as of November 4, 2014 (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014) | ||
10.5 | Investment Guidelines (incorporated by reference to Amendment No. 4 of New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||
10.6 | Excess Servicing Spread Sale and Assignment Agreement, by and between Nationstar Mortgage LLC and NIC MSR I LLC, dated December 8, 2011 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2011) | ||
10.7 | Excess Spread Refinanced Loan Replacement Agreement, by and between Nationstar Mortgage LLC and NIC MSR I LLC, dated December 8, 2011 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2011) | ||
Exhibit Number | Exhibit Description | ||
10.8 | Future Spread Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR IV LLC, dated May 13, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed May 15, 2012) | ||
10.9 | Future Spread Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR V LLC, dated May 13, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed May 15, 2012) | ||
10.10 | Future Spread Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR VI LLC, dated May 13, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed May 15, 2012) | ||
10.11 | Future Spread Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR VII, LLC, dated May 13, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed May 15, 2012) | ||
10.12 | Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR III LLC, dated May 31, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 6, 2012) | ||
10.13 | Future Spread Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR III LLC, dated May 31, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 6, 2012) | ||
10.14 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.15 | Amended and Restated Future Spread Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.16 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.17 | Amended and Restated Future Spread Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.18 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.19 | Amended and Restated Future Spread Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR II LLC, dated June 7, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed June 7, 2012) | ||
10.20 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR V LLC, dated June 28, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed July 5, 2012) | ||
10.21 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR IV LLC, dated June 28, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed July 5, 2012) | ||
10.22 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR VI LLC, dated June 28, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed July 5, 2012) | ||
10.23 | Amended and Restated Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and NIC MSR VII LLC, dated June 28, 2012 (incorporated by reference to Newcastle Investment Corp.’s Current Report on Form 8-K, filed July 5, 2012) | ||
10.24 | Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR VIII LLC, dated December 31, 2012 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
Exhibit Number | Exhibit Description | ||
10.25 | Future Spread Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR VIII LLC, dated December 31, 2012 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.26 | Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and MSR IX LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.27 | Future Spread Agreement for FHLMC Mortgage Loans, between Nationstar Mortgage LLC and MSR IX LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.28 | Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR X LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.29 | Future Spread Agreement for FNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR X LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.30 | Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR XI LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.31 | Future Spread Agreement for GNMA Mortgage Loans, between Nationstar Mortgage LLC and MSR XI LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.32 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and MSR XII LLC, dated January 6, 2013, (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.33 | Future Spread Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and MSR XII LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.34 | Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and MSR XIII LLC, dated January 6, 2013, (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.35 | Future Spread Agreement for Non-Agency Mortgage Loans, between Nationstar Mortgage LLC and MSR XIII LLC, dated January 6, 2013 (incorporated by reference to Newcastle Investment Corp.’s Annual Report on Form 10-K, for the annual period ended December 31, 2012) | ||
10.36 | Interim Servicing Agreement, among the Interim Servicers listed therein, HSBC Finance Corporation, as Interim Servicer Representative, HSBC Bank USA, National Association, SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC, Wilmington Trust, National Association, as Loan Trustee, and SpringCastle Finance LLC, as Owner Representative (incorporated by reference to Amendment No. 4 to New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||
10.37 | Second Amended and Restated Limited Liability Company Agreement of SpringCastle Acquisition LLC, dated March 31, 2016 | ||
10.38 | Registration Rights Agreement, dated as of April 6, 2015, by and between New Residential Investment Corp and Home Loan Servicing Solutions, Ltd. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on April 10, 2015) | ||
10.39 | Services Agreement, dated as of April 6, 2015, by and between HLSS Advances Acquisition Corp. and Home Loan Servicing Solutions, Ltd. (incorporated by reference to New Residential Investment Corp.’s Current Report on Form 8-K, filed on April 10, 2015) | ||
10.40 | Receivables Sale Agreement, dated as of August 28, 2015, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC and NRZ Advance Facility Transferor 2015-ON1 LLC (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
10.41 | Receivables Pooling Agreement, dated as of August 28, 2015, by and between NRZ Advance Facility Transferor 2015-ON1 LLC and NRZ Advance Receivables Trust 2015-ON1 (incorporated by reference to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||
Exhibit Number | Exhibit Description | ||
31.1 | Certification of Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
31.2 | Certification of Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS | XBRL Instance Document * | ||
101.SCH | XBRL Taxonomy Extension Schema Document * | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document * | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document * | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document * | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document * |
* | Furnished electronically herewith. |
• | Second Amended and Restated Limited Liability Company Agreement of SpringCastle America, LLC, dated as of March 31, 2016. |
• | Second Amended and Restated Limited Liability Company Agreement of SpringCastle Credit, LLC, dated as of March 31, 2016. |
• | Second Amended and Restated Limited Liability Company Agreement of SpringCastle Finance, LLC, dated as of March 31, 2016. |
NEW RESIDENTIAL INVESTMENT CORP. | ||
By: | /s/ Michael Nierenberg | |
Michael Nierenberg | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
May 4, 2016 | ||
By: | /s/ Nicola Santoro, Jr. | |
Nicola Santoro, Jr. | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer) | ||
May 4, 2016 | ||
By: | /s/ Jonathan R. Brown | |
Jonathan R. Brown | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) | ||
May 4, 2016 |
SpringCastle Acquisition | Buyer | Purchase Price | Escrow Amount |
23.5% Membership Percentage | NRZ Consumer LLC | - | - |
23.4312625% Membership Percentage | BTO Willow Holdings II, L.P. | - | - |
0.0687375% Membership Percentage | Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | - | - |
SpringCastle America | Buyer | Purchase Price | Escrow Amount |
23.5% Membership Percentage | NRZ America LLC | $57,729.46 | $5,772.95 |
23.4312625% Membership Percentage | BTO Willow Holdings II, L.P. | $57,560.60 | $5,756.06 |
0.0687375% Membership Percentage | Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | $168.86 | $16.89 |
SpringCastle Credit | Buyer | Purchase Price | Escrow Amount |
23.5% Membership Percentage | NRZ SC Credit Limited | $22,122,283.09 | $2,212,228.31 |
23.4312625% Membership Percentage | BTO Willow Holdings II, L.P. | $22,057,575.41 | $2,205,757.54 |
0.0687375% Membership Percentage | Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | $64,707.68 | $6,470.77 |
SpringCastle Finance | Buyer | Purchase Price | Escrow Amount |
4.7% Membership Percentage | NRZ SC Finance I LLC | $6,726,497.49 | $672,649.75 |
4.7% Membership Percentage | NRZ SC Finance II LLC | $6,726,497.49 | $672,649.75 |
4.7% Membership Percentage | NRZ SC Finance III LLC | $6,726,497.49 | $672,649.75 |
4.7% Membership Percentage | NRZ SC Finance IV LLC | $6,726,497.49 | $672,649.75 |
4.7% Membership Percentage | NRZ SC Finance V LLC | $6,726,497.49 | $672,649.75 |
23.4312625% Membership Percentage | BTO Willow Holdings II, L.P. | $33,534,112.42 | $3,353,411.24 |
0.0687375% Membership Percentage | Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | $98,375.03 | $9,837.50 |
(i) | Sellers, within 21 days after receipt of the calculation of the Aggregate Gross Cash Flow, shall notify Buyers in writing of any such dispute, which notice shall specify in reasonable detail the nature of the dispute; |
(ii) | During the 10-day period following Buyers’ receipt of such notice, Sellers and Buyers shall attempt to resolve such dispute and to determine the appropriate calculation of the Aggregate Gross Cash Flow, as applicable; and |
(iii) | If at the end of the 10-day period specified in clause (ii) above, Sellers and Buyers shall have failed to reach a written agreement with respect to such dispute or Sellers have not withdrawn their objection, the matter shall be referred to KPMG LLP (the “Independent Accounting Firm”); provided that, if such firm is unable or unwilling to act, the Independent Accounting Firm shall be any other independent public accounting firm as is designated in writing by Sellers and Buyers. The Independent Accounting Firm shall act as an expert, not as an arbitrator, and shall be directed by Sellers and Buyers to resolve such dispute (based solely on the presentations by Sellers and Buyers) as promptly as reasonably practicable and to deliver a written report to each Seller and each Buyer setting forth its resolution of such dispute. The |
(i) | “Aggregate Escrow Amount” means $11,162,500. |
(ii) | “Aggregate Gross Cash Flow” means with respect to the Applicable Period and the loans held by each SpringCastle Company and its Company Related Entities as of the date hereof, (A) the sum of all principal payments (including recoveries but net of draws on revolving loans) made on such loans, plus (B) the sum of all interest payments made on such loans. Aggregate Gross Cash Flow shall include the proceeds from any Permitted Loan Sale. |
(iii) | “Escrow Release Amount” means: |
(A) | if the Aggregate Gross Cash Flow is less than $1,995,800,000, then (I) the Escrow Release Amount to Sellers shall be zero dollars ($0) and (II) the Escrow Release Amount to Buyers shall be the Aggregate Escrow Amount plus all accrued interest thereon (or, if the Escrowed Funds at such time shall be less than such sum, then the amount of Escrowed Funds at such time); |
(B) | if the Aggregate Gross Cash Flow is at least $1,995,800,000 but is less than $2,069,100,000, then (I) the Escrow Release Amount to Sellers shall be the product of (x) the Aggregate Escrow Amount plus all accrued interest thereon (or, if the Escrowed Funds at such time shall be less than such sum, then the amount of Escrowed Funds at such time) multiplied by (y) the Proration Percentage, and (II) the Escrow Release Amount to Buyers shall be the difference between (x) Aggregate Escrow Amount plus all accrued interest thereon (or, if the Escrowed Funds at such time shall be less than such sum, then the amount of Escrowed Funds at such time) minus (y) the result in the preceding clause (I); and |
(C) | if the Aggregate Gross Cash Flow is at least $2,069,100,000, then (I) the Escrow Release Amount to Sellers shall be the Aggregate Escrow Amount plus all accrued interest thereon (or, if the Escrowed Funds at such time shall be less than such sum, then the amount of Escrowed Funds at such time) and (II) the Escrow Release Amount to Buyers shall be zero dollar ($0). |
(iv) | “Permitted Loan Sale” means the sale on an arms’ length basis by any SpringCastle Company or Company Related Entity of Loans (as defined in the 2016 Servicing Agreement) in a transaction or series of related transactions with a third party that is not an Affiliate of any member that holds a 10% or greater beneficial ownership interest in the applicable SpringCastle Company. |
(v) | “Proration Percentage” means, for the Applicable Period, the fraction, expressed as a percentage, the numerator of which is the Aggregate Gross Cash Flow in excess of $1,995,800,000, and the denominator of which is $73,300,000. |
(i) | “Actual Trigger Result” means the fraction (expressed as a percentage), the numerator of which is the aggregate sum of the absolute value of the Charged Off Loans (as defined in the Indenture) as reflected on all remittance reports for the SpringCastle Funding Asset-Backed Notes 2014-A securitization from and after the April 25, 2016, Payment Date and the denominator of which is $1,986,162,408.77. For reference, the amount of Charged Off Loans as reflected in the remittance report delivered March 25, 2016 is $(9,963,026.41). |
(ii) | “Trigger Event” means, as of any Payment Date (as defined in the Indenture), beginning on the first Payment Date after the Closing Date, that the Actual Trigger Result as of such Payment Date shall have exceeded the Threshold Level applicable to such Payment Date as set forth in Schedule 12(e) hereto. |
If to Sellers or SFI: | c/o OneMain Holdings, Inc. 601 N.W. Second Street Evansville, Indiana 47708 Facsimile: (812) 468-5396 Attention: Corporate Secretary |
If to NRZ Buyers: | c/o New Residential Investment Corp. 1345 Avenue of the Americas 45th Floor New York, New York 10105 Attn: General Counsel Facsimile: 212-798-6060 Email: jgrebinar@fortress.com Email: amiller@fortress.com |
If to NRZ Other Members: | NRZ SC America Trust 2015-1 U.S. Bank Trust National Association, as Owner Trustee 60 Livingston Avenue EP-MN-WS3D St. Paul, Minnesota 55107 Attn: Global Structure Finance |
If to Blackstone Parties: | BTO Willow Holdings II, L.P. c/o The Blackstone Group 345 Park Avenue New York, NY 10154 Attention: Jasvinder Khaira E-mail: Khaira@blackstone.com |
Member | Membership Percentage (Pre-Closing) | Membership Percentage (Post-Closing) | |
NRZ SC America LLC/ NRZ SC America Trust 2015-1 | 30.0000000 | % | 30.0000000% |
SpringCastle Holdings, LLC | 47.0000000 | % | |
BTO Willow Holdings, L.P | 23.0000000 | % | 23.0000000% |
NRZ SC America LLC | 23.5000000% | ||
BTO Willow Holdings II, L.P. | 23.4312625% | ||
Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | 0.0687375% |
Member | Membership Percentage (Pre-Closing) | Membership Percentage (Post-Closing) | |
NRZ SC Credit Limited/ NRZ SC Credit Trust 2015-1 | 30.0000000 | % | 30.0000000% |
SpringCastle Holdings, LLC | 47.0000000 | % | |
BTO Willow Holdings, L.P | 23.0000000 | % | 23.0000000% |
NRZ SC Credit Limited | 23.5000000% | ||
BTO Willow Holdings II, L.P. | 23.4312625% | ||
Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | 0.0687375% |
Member | Membership Percentage (Pre-Closing) | Membership Percentage (Post-Closing) | ||
NRZ SC Finance I LLC* | 6.0000000 | % | 6.0000000 | % |
NRZ SC Finance II LLC* | 6.0000000 | % | 6.0000000 | % |
NRZ SC Finance III LLC* | 6.0000000 | % | 6.0000000 | % |
NRZ SC Finance IV LLC* | 6.0000000 | % | 6.0000000 | % |
NRZ SC Finance V LLC* | 6.0000000 | % | 6.0000000 | % |
SpringCastle Holdings, LLC | 47.0000000 | % | ||
BTO Willow Holdings, L.P | 23.0000000 | % | 23.0000000% | |
NRZ SC Finance I LLC | 4.7000000% | |||
NRZ SC Finance II LLC | 4.7000000% | |||
NRZ SC Finance III LLC | 4.7000000% | |||
NRZ SC Finance IV LLC | 4.7000000% | |||
NRZ SC Finance V LLC | 4.7000000% | |||
BTO Willow Holdings II, L.P. | 23.4312625% | |||
Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | 0.0687375% |
Member | Membership Percentage (Pre-Closing) | Membership Percentage (Post-Closing) | |
NRZ Consumer LLC | 30.0000000 | % | 30.0000000% |
Springleaf Acquisition Corporation | 47.0000000 | % | |
BTO Willow Holdings, L.P | 23.0000000 | % | 23.0000000% |
NRZ Consumer LLC | 23.5000000% | ||
BTO Willow Holdings II, L.P. | 23.4312625% | ||
Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. | 0.0687375% |
1. | Omnibus Assignment and Assumption Agreement, dated April 1, 2013 by and among SpringCastle Acquisition LLC (“Acquisition”), SpringCastle America, LLC (“America”), SpringCastle Credit, LLC (“Credit”), SpringCastle Finance, LLC (“Finance”) and Wilmington Trust, National Association, as trustee to each of America, Credit and Finance (“Seller Loan Trustee”) |
2. | Omnibus Consent and Assignment of Rights under Insurance Policies, dated March 29, 2013, by and among the Sellers listed on Schedule 1.01(a) to the Purchase Agreement (“Sellers”), Household Life Insurance Company (“HLIC”), HSBC Insurance Company of Delaware (“HIDE”), First Central National Life Insurance Company of New York (“FCNL”), Household Life Insurance Company of Delaware, America, Credit, Finance and Seller Loan Trustee |
3. | Omnibus Consent and Assignment of Rights under Insurance Policies, dated April 1, 2013, by and among the Sellers, Renaissance Life & Health Insurance Company of America, America, Credit, Finance and Seller Loan Trustee |
4. | Assignment of Insurance Benefits among HSBC (on behalf of itself and Sellers), America, Credit, Finance, Seller Loan Trustee, American Bankers Insurance Company of Florida, American Bankers Life Assurance Company of Florida, and Union Security Life Insurance Company of New York |
5. | Omnibus Consent and Assignment of Rights under Insurance Policies, dated April 1, 2013, by and among the Sellers, Southern County Mutual Insurance Company, America, Credit, Finance and Seller Loan Trustee |
6. | Bill of Sale and Assignment and Assumption Agreement, dated April 1, 2013 by and among Sellers, Acquisition, America, Credit, Finance and Seller Loan Trustee, pursuant to the Purchase Agreement |
7. | Limited Power of Attorney to Bank and Interim Servicers, dated April 1, 2013, by and among America, Credit, Finance, SpringCastle America Funding, LLC (“America Funding”), SpringCastle Credit Funding, LLC (“Credit Funding”), SpringCastle Finance Funding, LLC (“Finance Funding”), Seller Loan Trustee, Wilmington Trust, National Association, as Loan Trustee to each of America Funding, Credit Funding and Finance Funding (the “Loan Trustee”), and Finance, as Owner Representative |
8. | Interim Servicing Agreement, dated April 1, 2013, by and among the Interim Servicers listed on Schedule 1.01(a) thereto (the “Interim Servicers”), HSBC as Interim Servicer Representative, HSBC Bank USA, National Association, America, Credit, Finance, Seller Loan Trustee and Finance, as Owner Representative |
9. | Letter agreement, dated as of September 1, 2013, regarding post-servicing transfer matters and final determination of the purchase price adjustment, among America, Credit, Finance, Sellers, Interim Servicers, HSBC Bank USA, National Association and HSBC |
10. | Insurance Services Agreement, dated as of September 1, 2013, by and among Sellers, America, Credit, Finance, Seller Loan Trustee, and HSBC, solely in its capacity as Seller Representative |
11. | Escrow Agreement dated as of April 1, 2013 among Acquisition, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Initial Purchaser”), Credit Suisse Securities (USA) LLC (“CS Initial Purchaser”, together with Merrill Initial Purchaser, the “Initial Purchasers”), America Funding, Credit Funding, Finance Funding, Loan Trustee, America, Credit, Finance, Seller Loan Trustee, Springleaf Finance, Inc. (“SLFI”), Blackstone Tactical Opportunities Fund L.P. (“Blackstone”), New Residential Investment Corp. (“New Residential”), Springleaf Finance Corporation (“Springleaf”) and U.S. Bank National Association (“U.S. Bank”), as escrow agent. |
12. | Loan Purchase Agreement dated April 1, 2013 among America, America Funding, the Seller Loan Trustee and the Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
13. | Loan Purchase Agreement dated April 1, 2013 among Credit, Credit Funding, the Seller Loan Trustee and the Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
14. | Loan Purchase Agreement dated April 1, 2013 among Finance, Finance Funding, the Seller Loan Trustee and the Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
15. | Co-Borrower Agreement dated as of April 1, 2013 among America Funding, Credit Funding, Finance Funding, America, Credit, Finance, and SLFI, as allocation agent |
16. | Loan Trust Agreement dated as of April 1, 2013 between America and Seller Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
17. | Loan Trust Agreement dated as of April 1, 2013 between Credit and Seller Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
18. | Loan Trust Agreement dated as of April 1, 2013 between Finance and Seller Loan Trustee, as amended by Amendment No. 1 dated as of October 3, 2014 |
19. | Limited Liability Company Agreement among America Funding, as the Company, America, as the Member, and Thomas M. Strauss, as the Springing Member and Independent Manager, as amended by Amendment No. 1 thereto dated as of October 3, 2014 |
20. | Limited Liability Company Agreement among Credit Funding, as the Company, Credit, as the Member, and Thomas M. Strauss, as the Springing Member and Independent Manager, as amended by Amendment No. 1 thereto dated as of October 3, 2014 |
21. | Limited Liability Company Agreement among Finance Funding, as the Company, Finance, as the Member, and Thomas M. Strauss, as the Springing Member and Independent Manager, as amended by Amendment No. 1 thereto dated as of October 3, 2014 |
22. | Clawback Letter Agreement, dated April 1, 2013, by and among Blackstone Family Tactical Opportunities Investment Partnership SMD L.P., Blackstone Family Tactical Opportunities Investment Partnership – NQ – ESC L.P., Blackstone Tactical Opportunities Fund – C – NQ L.P., Blackstone Tactical Opportunities Fund – A (PE) – NQ L.P., Blackstone Tactical Opportunities Fund – NQ L.P., Blackstone Tactical Opportunities Fund – G – NQ L.P., Blackstone Tactical Opportunities Fund – AD – NQ L.P., Blackstone Tactical Opportunities Fund – T – NQ L.P. and Blackstone Tactical Opportunities Fund (WLL Co-Invest) L.P., addressed to Acquisition, America, Credit and Finance |
23. | Letter agreements regarding PTP matters, dated April 1, 2013, by Blackstone addressed to SpringCastle Holdings, LLC, as Managing Member, for each of (i) America, (ii) Credit and (iii) Finance |
24. | Amended and Restated Indemnification and Contribution Agreement dated April 15, 2013, among the America Funding, Credit Funding, Finance Funding, SLFI, the Initial Purchasers and the JV parties party thereto. |
25. | Master Services Agreement dated as of May 16, 2013 between SpringCastle Acquisition LLC and McGladrey LLP, including Statement of Work No. 1 thereto dated as of May 3, 2016 |
26. | Engagement Letter dated August 7, 2015 from McGladrey LLP to SpringCastle Acquisition, SpringCastle America, SpringCastle Credit and SpringCastle Finance |
27. | Engagement Letter dated February 4, 2016 from PricewaterhouseCoopers LLP to SpringCastle Acquisition, SpringCastle America, SpringCastle Credit and SpringCastle Finance |
28. | Consent Agreement, dated as of January 8, 2014, by and among, the NRZ Members, the Springleaf Member, the Blackstone Member, Springleaf Finance, Inc. (“SFI”) and Credit Suisse Securities (USA) LLC |
29. | Note Purchase Agreement dated as of September 18, 2014 among America Funding, Credit Funding, Finance Funding, America, Credit, Finance, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and Natixis Securities Americas LLC |
30. | Indemnification and Contribution Agreement dated as of September 18, 2014 among America Funding, Credit Funding, Finance Funding, SFI, New Residential Investment Corp., the Blackstone Member, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and Natixis Securities Americas LLC |
31. | Indenture, dated as of October 3, 2014, among America Funding, Credit Funding, Finance Funding, Wilmington Trust, National Association, as Loan Trustee, U.S. Bank National Association, as Indenture Trustee, Wells Fargo Bank, National Association, as Paying Agent and Note Registrar, and SFI |
32. | Servicing Agreement, dated as of October 3, 2014, among America Funding, Credit Funding, Finance Funding, Wilmington Trust, National Association, as loan trustee for each of the Company SPV and the Purchaser SPVs and SFI |
33. | Co-Borrower Agreement dated as of October 3, 2014 among America Funding, Credit Funding, Finance Funding, America, Credit, Finance, and SLFI, as allocation agent |
34. | Letter Agreement dated as of October 3, 2014 among the Springleaf Member, America Funding, Credit Funding, Finance Funding, America, Credit, Finance, the NRZ Members, NRZ Consumer LLC and SFI, as Allocation Agent, regarding the allocation of funds from the sale of the SpringCastle Funding Asset-Backed Notes 2014-A |
35. | Consent Agreement dated as of April 2, 2015 among the NRZ Members, the Springleaf Member, the Blackstone Members, SFI and MLPFS, and the related joinder agreements referenced therein. |
1. | Financial Statements and Supplementary Information for the Period Ended December 31, 2015 for the SpringCastle Companies |
2. | Financial Statements and Supplementary Information for the Period Ended February 29, 2016 for the SpringCastle Companies |
1. | City of Chicago v. SpringCastle, et al., (Delores Jackson, 9811 S. Aberdeen St.) |
2. | Rusher, Steven & Tracy vs. Springcastle |
3. | Lucas, Woodrow (Woody) and Kathleen vs. Beneficial West Virginia, Inc. & Springleaf Home Equity |
4. | Brent A. Fowler vs. Household Life Insurance Company; Pavonia Holdings, Inc.; Pavonia Life Insurance Company of Michigan; and Springleaf Consumer Loan, Inc. |
5. | John D. Burcianti vs. Springleaf Financial Services, Inc. |
6. | April Henn vs. Springleaf Financial Services Inc. |
7. | Janer A. Mercado vs. Springleaf Financial Services, Inc. |
Threshold Level | ||
Payment Date | ||
3/31/2016 | ||
4/25/2016 | 0.87 | % |
5/25/2016 | 1.73 | % |
6/25/2016 | 2.56 | % |
7/25/2016 | 3.38 | % |
8/25/2016 | 4.18 | % |
9/25/2016 | 4.96 | % |
10/25/2016 | 5.73 | % |
11/25/2016 | 6.47 | % |
12/25/2016 | 7.21 | % |
1/25/2017 | 7.92 | % |
2/25/2017 | 8.62 | % |
3/25/2017 | 9.31 | % |
4/25/2017 | 9.98 | % |
5/25/2017 | 10.64 | % |
6/25/2017 | 11.28 | % |
7/25/2017 | 11.91 | % |
8/25/2017 | 12.52 | % |
9/25/2017 | 13.12 | % |
10/25/2017 | 13.71 | % |
11/25/2017 | 14.29 | % |
12/25/2017 | 14.85 | % |
1/25/2018 | 15.40 | % |
2/25/2018 | 15.94 | % |
3/25/2018 | 16.46 | % |
4/25/2018 | 16.98 | % |
5/25/2018 | 17.48 | % |
6/25/2018 | 17.98 | % |
7/25/2018 | 18.46 | % |
8/25/2018 | 18.93 | % |
9/25/2018 | 19.39 | % |
10/25/2018 | 19.85 | % |
11/25/2018 | 20.29 | % |
12/25/2018 | 20.72 | % |
1/25/2019 | 21.14 | % |
2/25/2019 | 21.56 | % |
Threshold Level | ||
3/25/2019 | 21.96 | % |
4/25/2019 | 22.36 | % |
5/25/2019 | 22.75 | % |
6/25/2019 | 23.12 | % |
7/25/2019 | 23.50 | % |
8/25/2019 | 23.86 | % |
9/25/2019 | 24.21 | % |
10/25/2019 | 24.56 | % |
11/25/2019 | 24.90 | % |
12/25/2019 | 25.23 | % |
1/25/2020 | 25.56 | % |
2/25/2020 | 25.87 | % |
3/25/2020 | 26.19 | % |
4/25/2020 | 26.49 | % |
5/25/2020 | 26.79 | % |
6/25/2020 | 27.08 | % |
7/25/2020 | 27.36 | % |
8/25/2020 | 27.64 | % |
9/25/2020 | 27.92 | % |
10/25/2020 | 28.18 | % |
11/25/2020 | 28.44 | % |
12/25/2020 | 28.70 | % |
1/25/2021 | 28.95 | % |
2/25/2021 | 29.19 | % |
3/25/2021 | 29.43 | % |
4/25/2021 | 29.67 | % |
5/25/2021 | 29.89 | % |
6/25/2021 | 30.12 | % |
7/25/2021 | 30.34 | % |
8/25/2021 | 30.55 | % |
9/25/2021 | 30.76 | % |
10/25/2021 | 30.97 | % |
11/25/2021 | 31.17 | % |
12/25/2021 | 31.36 | % |
1/25/2022 | 31.56 | % |
2/25/2022 | 31.74 | % |
3/25/2022 | 31.93 | % |
4/25/2022 | 32.11 | % |
5/25/2022 | 32.28 | % |
6/25/2022 | 32.45 | % |
7/25/2022 | 32.62 | % |
8/25/2022 | 32.79 | % |
Threshold Level | ||
9/25/2022 | 32.95 | % |
10/25/2022 | 33.11 | % |
11/25/2022 | 33.26 | % |
12/25/2022 | 33.41 | % |
1/25/2023 | 33.56 | % |
2/25/2023 | 33.70 | % |
3/25/2023 | 33.84 | % |
4/25/2023 | 33.98 | % |
5/25/2023 | 34.12 | % |
6/25/2023 | 34.25 | % |
7/25/2023 | 34.38 | % |
8/25/2023 | 34.50 | % |
9/25/2023 | 34.63 | % |
10/25/2023 | 34.75 | % |
11/25/2023 | 34.87 | % |
12/25/2023 | 34.98 | % |
1/25/2024 | 35.10 | % |
2/25/2024 | 35.21 | % |
3/25/2024 | 35.32 | % |
4/25/2024 | 35.42 | % |
5/25/2024 | 35.53 | % |
6/25/2024 | 35.63 | % |
7/25/2024 | 35.73 | % |
8/25/2024 | 35.82 | % |
9/25/2024 | 35.92 | % |
10/25/2024 | 36.01 | % |
11/25/2024 | 36.10 | % |
12/25/2024 | 36.19 | % |
1/25/2025 | 36.28 | % |
2/25/2025 | 36.36 | % |
3/25/2025 | 36.45 | % |
4/25/2025 | 36.53 | % |
5/25/2025 | 36.61 | % |
6/25/2025 | 36.69 | % |
7/25/2025 | 36.76 | % |
8/25/2025 | 36.84 | % |
9/25/2025 | 36.91 | % |
10/25/2025 | 36.98 | % |
11/25/2025 | 37.05 | % |
12/25/2025 | 37.12 | % |
1/25/2026 | 37.19 | % |
2/25/2026 | 37.25 | % |
Threshold Level | ||
3/25/2026 | 37.32 | % |
SECTION 1.01 | Definitions 3 |
SECTION 2.01 | Form Generally 3 |
SECTION 2.02 | Denominations 4 |
SECTION 2.03 | Execution, Authentication and Delivery 4 |
SECTION 2.04 | Book-Entry Notes 4 |
SECTION 2.05 | Registration of and Limitations on Transfer and Exchange of Notes; Appointment of Note Registrar 6 |
SECTION 2.06 | Mutilated, Destroyed, Lost or Stolen Notes 13 |
SECTION 2.07 | Persons Deemed Owners 13 |
SECTION 2.08 | Cancellation 14 |
SECTION 2.09 | Notices to Clearing Agency 14 |
SECTION 2.10 | Definitive Notes 14 |
SECTION 2.11 | CUSIP Numbers 15 |
SECTION 2.12 | Appointment of Paying Agent 15 |
SECTION 3.01 | Payment of Principal and Interest 16 |
SECTION 3.02 | Maintenance of Office or Agency 17 |
SECTION 3.03 | Money for Note Payments to Be Held in Trust 17 |
SECTION 3.04 | Existence 18 |
SECTION 3.05 | Protection of Trust 19 |
SECTION 3.06 | Opinions as to Trust Estate 19 |
SECTION 3.07 | Performance of Obligations; Servicing of Loans 20 |
SECTION 3.08 | Negative Covenants 20 |
SECTION 3.09 | Statements as to Compliance 21 |
SECTION 3.10 | Co-Issuers’ Name, Location, etc. 21 |
SECTION 3.11 | Amendments 22 |
SECTION 3.12 | No Borrowing 22 |
SECTION 3.13 | Guarantees, Loans, Advances and Other Liabilities 22 |
SECTION 3.14 | Tax Treatment 22 |
SECTION 3.15 | Notice of Events of Default 23 |
SECTION 3.16 | No Other Business 24 |
SECTION 3.17 | Further Instruments and Acts 24 |
SECTION 3.18 | Maintenance of Separate Existence 24 |
SECTION 3.19 | Perfection Representations, Warranties and Covenants 24 |
SECTION 3.20 | Other Representations of the Co-Issuers and the Loan Trustees 24 |
SECTION 3.21 | Compliance with Laws 25 |
SECTION 4.01 | Satisfaction and Discharge of this Indenture 25 |
SECTION 4.02 | Application of Trust Money 26 |
SECTION 5.01 | Reserved 26 |
SECTION 5.02 | Events of Default 26 |
SECTION 5.03 | Acceleration of Maturity; Rescission and Annulment 28 |
SECTION 5.04 | Collection of Indebtedness and Suits for Enforcement by Indenture Trustee 29 |
SECTION 5.05 | Remedies; Priorities 31 |
SECTION 5.06 | Optional Preservation of the Trust Estate 32 |
SECTION 5.07 | Limitation on Suits 32 |
SECTION 5.08 | Unconditional Rights of Noteholders to Receive Principal and Interest 33 |
SECTION 5.09 | Restoration of Rights and Remedies 34 |
SECTION 5.10 | Rights and Remedies Cumulative 34 |
SECTION 5.11 | Delay or Omission Not Waiver 34 |
SECTION 5.12 | Control by Noteholders 34 |
SECTION 5.13 | Waiver of Past Defaults 35 |
SECTION 5.14 | Undertaking for Costs 35 |
SECTION 5.15 | Waiver of Stay or Extension Laws 35 |
SECTION 5.16 | Action on Notes 36 |
SECTION 5.17 | Sale of Loans 36 |
SECTION 5.18 | Performance and Enforcement of Certain Obligations 37 |
SECTION 6.01 | Duties of the Indenture Trustee 37 |
SECTION 6.02 | Notice of Event of Default 39 |
SECTION 6.03 | Certain Matters Affecting the Indenture Trustee 39 |
SECTION 6.04 | Not Responsible for Recitals or Issuance of Notes 41 |
SECTION 6.05 | Indenture Trustee, Paying Agent and Note Registrar May Hold Notes 42 |
SECTION 6.06 | Money Held in Trust 42 |
SECTION 6.07 | Compensation, Reimbursement and Indemnification 42 |
SECTION 6.08 | Replacement of Indenture Trustee 43 |
SECTION 6.09 | Successor Indenture Trustee by Merger 44 |
SECTION 6.10 | Appointment of Co-Indenture Trustee or Separate Indenture Trustee 45 |
SECTION 6.11 | Eligibility; Disqualification 46 |
SECTION 6.12 | Representations and Warranties of the Indenture Trustee 46 |
SECTION 6.13 | Execution of Transaction Document 46 |
SECTION 6.14 | Performance Support Agreement 46 |
SECTION 6.15 | Rule 15Ga-1 Compliance 47 |
SECTION 6.16 | Duties of the Paying Agent and Note Registrar 47 |
SECTION 6.17 | Certain Matters Affecting the Paying Agent and the Note Registrar 49 |
SECTION 6.18 | Not Responsible for Recitals or Issuance of Notes 52 |
SECTION 6.19 | Money Held in Trust 52 |
SECTION 6.20 | Compensation, Reimbursement and Indemnification 52 |
SECTION 6.21 | Successor Paying Agent or Note Registrar by Merger 53 |
SECTION 6.22 | Eligibility; Disqualification 53 |
SECTION 6.23 | Representations and Warranties of the Paying Agent or the Note Registrar 54 |
SECTION 7.01 | Co-Issuers to Furnish Indenture Trustee Names and Addresses of Noteholders 54 |
SECTION 7.02 | Preservation of Information; Communications to Noteholders 54 |
SECTION 8.01 | Collection of Money 55 |
SECTION 8.02 | Establishment of the Note Accounts 55 |
SECTION 8.03 | Collections and Allocations 58 |
SECTION 8.04 | Rights of Noteholders 58 |
SECTION 8.05 | Release of Trust Estate 58 |
SECTION 8.06 | Application of Available Funds, the Reserve Account Draw Amount and the Advance Reserve Account Draw Amount 60 |
SECTION 8.07 | Optional Redemption of the Notes 63 |
SECTION 8.08 | Distributions and Payments to Noteholders 64 |
SECTION 8.09 | Reports and Statements to Noteholders 64 |
SECTION 9.01 | Supplemental Indentures Without Consent of Noteholders 65 |
SECTION 9.02 | Supplemental Indentures With Consent of Noteholders 66 |
SECTION 9.03 | Execution of Supplemental Indentures 68 |
SECTION 9.04 | Effect of Supplemental Indenture 68 |
SECTION 9.05 | Reference in Notes to Supplemental Indentures 68 |
SECTION 10.01 | Termination of Indenture 68 |
SECTION 10.02 | Final Distribution 69 |
SECTION 11.01 | Compliance Certificates 69 |
SECTION 11.02 | Form of Documents Delivered to Indenture Trustee 70 |
SECTION 11.03 | Acts of Noteholders 71 |
SECTION 11.04 | Notices, Etc. 71 |
SECTION 11.05 | Notices to Noteholders; Waiver 72 |
SECTION 11.06 | Effect of Headings and Table of Contents 72 |
SECTION 11.07 | Successors and Assigns 72 |
SECTION 11.08 | Separability 72 |
SECTION 11.09 | Benefits of Indenture 72 |
SECTION 11.10 | Legal Holidays 73 |
SECTION 11.11 | Governing Law 73 |
SECTION 11.12 | Counterparts 73 |
SECTION 11.13 | Recording of Indenture 73 |
SECTION 11.14 | Inspection 73 |
SECTION 11.15 | Co-Issuers Obligations 74 |
SECTION 11.16 | No Bankruptcy Petition; Disclaimer and Subordination 74 |
SECTION 11.17 | Tax Matters; Administration of Transfer Restrictions 74 |
(i) | the Loans, whether now existing or hereafter acquired, and all rights to payment and amounts due or to become due with respect to all of the foregoing and the related Purchased Assets; |
(ii) | all money, instruments, investment property and other property (together with all earnings, dividends, distributions, income, issues, and profits relating thereto) distributed or distributable in respect of the Loans; |
(iii) | the Note Accounts and all Eligible Investments and all money, investment property, instruments and other property from time to time on deposit in or credited to the Note Accounts, together with all earnings, dividends, distributions, income, issues and profits relating thereto; |
(iv) | all rights, remedies, powers, privileges and claims of the Co-Issuer under or with respect to the Loan Purchase Agreement and each other Transaction Document (whether arising pursuant to the terms of the related Loan Purchase Agreement or any other Transaction Document or otherwise available to the Co-Issuer at law or in equity), including, without limitation, the rights of the Co-Issuer to enforce the related Loan Purchase Agreement or any other Transaction Document, and to give or withhold any and all consents, requests, notices, directions, approvals, extensions or waivers under or with respect to the related Loan Purchase Agreement or any other Transaction Document to the same extent as the Co-Issuer could but for the assignment and security interest granted hereunder; |
(v) | all proceeds of any credit insurance policies or collateral protection insurance policies relating to any Loans, to the extent of the applicable Seller’s interest therein; |
(vi) | all accounts, chattel paper, deposit accounts, documents, general intangibles, payment intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit and money, consisting of, arising from, purporting to secure, or relating to, any of the foregoing; |
(vii) | all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds, products, rents, receipts or profits of the conversion, voluntary or involuntary, into cash or other property, all cash and non-cash |
(viii) | all proceeds of the foregoing. |
By: | Name: Title: |
Date | Principal Amount Issued, Cancelled or Exchanged | Remaining Principal Amount of this Global Note | Notation Made by or on Behalf of |
(2) | (A) at the time the buy order was originated, the transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the transferee was outside the United States, or |
(B) | the transaction was executed in, on or through (x) a physical trading floor of an established foreign securities exchange that is located outside the United States or (y) the facilities of a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was prearranged with a buyer in the United States; |
(2) | (A) at the time the buy order was originated, the transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that transferee was outside the United States, or |
(B) | the transaction was executed in, on or through (x) a physical trading floor of an established foreign securities exchange that is located outside the United States or (y) the facilities of a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was prearranged with a buyer in the United States; |
• | Check here if nothing to report. |
Asset Class | Shelf | Series Name | CIK | Originator | Loan No. | Servicer Loan No. | Outstand- ing Principal Balance | Repurchase Type | Indicate Repurchase Activity During the Reporting Period by Checkmark or by Date Reference (as applicable) | |||||
Subject to Demand | Repurchased or Replaced | Repurchase Pending | Demand in Dispute | Demand Withdrawn | Demand Rejected | |||||||||
1. | This Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Loans in favor of the Indenture Trustee, which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from the Co-Issuers. |
2. | The Loans constitute “tangible chattel paper”, “accounts,” “instruments” or “general intangibles” within the meaning of the UCC. |
3. | Each Note Account constitutes either a “deposit account” or a “securities account” within the meaning of the UCC. |
4. | Immediately prior to the sale, transfer, assignment and conveyance of the Loans by each of the Sellers to each of the Co-Issuers pursuant to the Loan Purchase agreement, the applicable Seller owned and had good, indefeasible, and marketable title to such Loans free and clear of any Lien (other than Permitted Liens) and immediately after the sale, transfer, assignment and conveyance of such Loans to the Co-Issuers, the Co-Issuers will have good and marketable title to such Loans free and clear of any Lien (other than Permitted Liens). |
5. | The Custodian or the Servicer has in its possession all original copies of the instruments and chattel paper, if any, that constitute or evidence such Loan. |
6. | The Co-Issuers have caused or will have caused, within ten days after the effective date of this Indenture, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Loans granted to the Indenture Trustee hereunder, and all financing statements referred to in this paragraph contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party/Purchaser”. |
7. | With respect to the Note Accounts that constitute deposit accounts, either: |
8. | With respect to the Note Accounts that constitute securities accounts or securities entitlements, either: |
9. | The Co-Issuers have not authorized the filing of, or is not aware of, any financing statements against the Co-Issuers that include a description of collateral covering the Loans other than any financing statement (i) relating to the conveyance of the Loans by the applicable Seller to the Co-Issuers under the related Loan Purchase Agreement, (ii) relating to the security interest granted to the Indenture Trustee hereunder or (iii) that has been terminated. |
10. | None of the Co-Issuers is aware of any material judgment, ERISA or tax lien filings against any of the Co-Issuers. |
11. | None of the instruments, tangible chattel paper or electronic chattel paper that constitute or evidence the Loans has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than to the Co-Issuers or the Indenture Trustee. |
12. | No Note Account that constitutes a securities account or securities entitlement is in the name of any person other than the Indenture Trustee. The Co-Issuers have not consented to the securities intermediary of any such Note Account to comply with entitlement orders of any person other than the Indenture Trustee. |
13. | No Note Account that constitutes a deposit account is in the name of any person other than the Indenture Trustee. The Co-Issuers have not consented to the bank maintaining such Note Account to comply with instructions of any person other than the Indenture Trustee. |
14. | Notwithstanding any other provision of this Indenture or any other Transaction Document, the perfection representations, warranties and covenants contained in this Schedule II shall be continuing, and remain in full force and effect until such time as all obligations under this Indenture have been finally and fully paid and performed. |
15. | The parties to the Indenture shall provide the each with prompt written notice of any material breach of the perfection representations, warranties and covenants contained in this Schedule II, and shall not, without satisfying the Rating Agency Notice Requirement, waive a breach of any of such perfection representations, warranties or covenants. |
16. | Each Co-Issuer covenants that, in order to evidence the interests of the Indenture Trustee under this Indenture, the Co-Issuer shall take such action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions as are requested by the Indenture Trustee) to maintain and perfect, as a first priority interest, the Indenture Trustee’s security interest in the Loans. The Co-Issuers shall, from time to time and within the time limits established by law, prepare and file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other filings necessary or advisable to continue, maintain and perfect the Indenture Trustee’s security interest in the Loans as a first-priority interest. |
ARTICLE 1 DEFINITIONS | 1 |
ARTICLE 2 THE COMPANY AND ITS BUSINESS | 11 |
2.1 | Formation 11 |
2.2 | Purposes; Formation of Trust and Purchaser Entity 11 |
2.3 | Principal Office 12 |
2.4 | Registered Office and Registered Agent 12 |
2.5 | Qualification 12 |
2.6 | Term 12 |
ARTICLE 3 MANAGING MEMBER, MEMBERS AND OFFICERS | 12 |
3.1 | Management and Control 12 |
3.2 | Member Consent Rights 13 |
3.3 | Members Schedule 15 |
3.4 | Other Business 15 |
3.5 | Servicing Agreement Matters 15 |
3.6 | Reserved 16 |
3.7 | Officers 16 |
3.8 | Representations, Warranties and Covenants 16 |
3.9 | Confidentiality 18 |
3.10 | No Certificated Interests 19 |
ARTICLE 4 LIABILITY AND INDEMNIFICATION | 19 |
4.1 | Limited Liability of Members 19 |
4.2 | Exculpation, Indemnification and Advances 19 |
4.3 | Indemnification of the Company 22 |
4.4 | Corporate Opportunities 22 |
ARTICLE 5 BOOKS AND RECORDS; REPORTING REQUIREMENTS; MEMBER MEETINGS | 23 |
5.1 | Books of Account; Independent Auditors 23 |
5.2 | Information and Audit Rights 23 |
5.3 | Reporting Requirements 23 |
5.4 | Financial Statements 23 |
5.5 | Actions Without a Meeting and Telephonic Meetings 24 |
ARTICLE 6 CAPITAL CONTRIBUTIONS | 24 |
6.1 | Members’ Capital Contributions 24 |
6.2 | No Liability for Capital Contributions 26 |
ARTICLE 7 CAPITAL ACCOUNTS; ALLOCATION AND DETERMINATION OF NET PROFITS AND NET LOSS | 26 |
7.1 | Capital Accounts 26 |
7.2 | Allocation of Net Profits and Net Loss 26 |
7.3 | No Interest on Capital Accounts 27 |
7.4 | Allocation of Income and Loss for Tax Purposes 27 |
7.5 | Determination by the Tax Matters Partner 27 |
7.6 | Tax Considerations 27 |
7.7 | Transfer of Interests 29 |
7.8 | No Withdrawal 29 |
ARTICLE 8 DISTRIBUTIONS | 29 |
8.1 | Distributions 29 |
8.2 | Form of Distributions 29 |
8.3 | Withholding 29 |
ARTICLE 9 TRANSFER OF COMPANY INTERESTS; ADMISSION OF NEW MEMBERS | 30 |
9.1 | Transfer of Company Interest 30 |
9.2 | Reserved 32 |
9.3 | Tag-Along Rights 32 |
9.4 | Dissolution or Bankruptcy of a Member 33 |
9.5 | Additional Members 34 |
ARTICLE 10 DISSOLUTION; LIQUIDATION | 34 |
10.1 | Dissolution 34 |
10.2 | Liquidation 34 |
ARTICLE 11 CERTAIN TAX MATTERS | 35 |
11.1 | Company Tax Returns 35 |
11.2 | Designation of Tax Matters Partner 35 |
11.3 | Material Tax Election and Tax Decisions 35 |
11.4 | Partnership Classification 36 |
ARTICLE 12 MISCELLANEOUS | 36 |
12.1 | Compliance with Applicable Laws and Rules 36 |
12.2 | Effect of Certain Provisions of the Company Law 36 |
12.3 | Further Assurances 36 |
12.4 | Notices 36 |
12.5 | Amendments 37 |
12.6 | Severability 37 |
12.7 | Headings and Captions 37 |
12.8 | Variation of Pronouns 37 |
12.9 | Counterparts 37 |
12.10 | GOVERNING LAW 37 |
12.11 | Entire Agreement; No Third Party Beneficiaries 37 |
12.12 | Waivers 37 |
12.13 | Legal Counsel Relationship 37 |
12.14 | Equitable Relief 38 |
12.15 | Expenses 38 |
12.16 | Waiver of Action for Partition 38 |
12.17 | Successors and Assigns 38 |
12.18 | Certain Portfolio Company Matters 38 |
Member and Address | Membership Percentage | |
NRZ Consumer LLC c/o Fortress Investment Group 1345 Avenue of the Americas New York, New York 10105 Facsimile: 212-798-6060 Email: kriis@fortress.com | 53.5% | |
BTO Willow Holdings, L.P c/o The Blackstone Group 345 Park Avenue New York, NY 10154 Attention: Jasvinder Khaira E-mail: With copies to: Christopher James Managing Director The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: Kevin Kelly Senior Vice President The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: and: David S. Katz Willkie Farr & Gallagher LLP 1875 K Street, NW Washington, DC 20006 E-mail: dkatz@willkie.com | 23% |
BTO Willow Holdings II L.P. c/o The Blackstone Group 345 Park Avenue New York, NY 10154 Attention: Jasvinder Khaira E-mail: With copies to: Christopher James Managing Director The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: Kevin Kelly Senior Vice President The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: and: David S. Katz Willkie Farr & Gallagher LLP 1875 K Street, NW Washington, DC 20006 E-mail: dkatz@willkie.com | 23.4312625% | |
Blackstone Family Tactical Opportunities Investment Partnership – NQ – ESC L.P. c/o The Blackstone Group 345 Park Avenue New York, NY 10154 Attention: Jasvinder Khaira E-mail: With copies to: Christopher James Managing Director The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: Kevin Kelly Senior Vice President The Blackstone Group 345 Park Avenue New York, NY 10154 E-mail: and: David S. Katz Willkie Farr & Gallagher LLP 1875 K Street, NW Washington, DC 20006 E-mail: dkatz@willkie.com | 0.0687375 | % |
1. | I have reviewed this quarterly report on Form 10-Q of New Residential Investment Corp.; |
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 officers 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 internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant 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) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | 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 |
d) | 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 officers 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 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. |
May 4, 2016 | /s/ Michael Nierenberg |
Michael Nierenberg | |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of New Residential Investment Corp.; |
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 officers 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 internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant 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) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | 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 |
d) | 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 officers 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 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. |
May 4, 2016 | /s/ Nicola Santoro, Jr. |
Nicola Santoro, Jr. | |
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; and |
(1) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 4, 2016 | /s/ Michael Nierenberg |
Michael Nierenberg | |
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; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 4, 2016 | /s/ Nicola Santoro, Jr. |
Nicola Santoro, Jr. | |
Chief Financial Officer |
Document and Entity Information - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 28, 2016 |
|
Document And Entity Information | ||
Entity Registrant Name | New Residential Investment Corp. | |
Entity Central Index Key | 0001556593 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Par Value (in dollars per share) | $ 0.01 | |
Entity Common Stock, Shares Outstanding (in shares) | 230,471,202 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2016 |
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Investments in: | |||||
Excess mortgage servicing rights, at fair value | $ 1,547,004 | $ 1,581,517 | |||
Excess mortgage servicing rights, equity method investees, at fair value | 209,901 | 217,221 | |||
Servicer advances, at fair value(A) | [1] | 7,001,004 | 7,426,794 | ||
Real estate securities, available-for-sale | 3,441,790 | 2,501,881 | |||
Residential mortgage loans, held-for-investment | 324,734 | 330,178 | |||
Residential mortgage loans, held-for-sale | 633,160 | 776,681 | |||
Real estate owned | 56,402 | 50,574 | |||
Consumer loans, held-for-investment(A) | [1] | 1,970,565 | 0 | ||
Cash and cash equivalents(A) | [1] | 258,622 | 249,936 | ||
Restricted cash | 170,364 | 94,702 | |||
Trades receivable | 1,509,016 | 1,538,481 | |||
Deferred tax asset, net | 196,189 | 185,311 | |||
Other assets | 253,026 | 239,446 | |||
Total assets | 17,571,777 | 15,192,722 | |||
Liabilities | |||||
Repurchase agreements | 3,973,512 | 4,043,054 | |||
Notes and bonds payable(A) | [1] | 8,870,851 | 7,249,568 | ||
Trades payable | 1,431,003 | 725,672 | |||
Due to affiliates | 5,847 | 23,785 | |||
Dividends payable | 106,017 | 106,017 | |||
Accrued expenses and other liabilities | 105,551 | 58,046 | |||
Total liabilities | $ 14,492,781 | $ 12,206,142 | |||
Commitments and Contingencies | |||||
Equity | |||||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 230,471,202 and 230,471,202 issued and outstanding at March 31, 2016 and December 31, 2015, respectively | $ 2,304 | $ 2,304 | |||
Additional paid-in capital | 2,640,893 | 2,640,893 | |||
Retained earnings | 154,519 | 148,800 | |||
Accumulated other comprehensive income (loss) | (12,912) | 3,936 | |||
Total New Residential stockholders’ equity | 2,784,804 | 2,795,933 | |||
Noncontrolling interests in equity of consolidated subsidiaries | 294,192 | 190,647 | |||
Total Equity | 3,078,996 | 2,986,580 | |||
Total Liabilities And Stockholders Equity | $ 17,571,777 | $ 15,192,722 | |||
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 230,471,202 | 230,471,202 |
Common stock, shares outstanding (in shares) | 230,471,202 | 230,471,202 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Comprehensive income (loss), net of tax | ||
Net income | $ 115,938 | $ 41,798 |
Other comprehensive income (loss) | ||
Net unrealized gain (loss) on securities | (19,969) | 15,132 |
Reclassification of net realized (gain) loss on securities into earnings | 3,121 | (23,626) |
Total other comprehensive income (loss) | (16,848) | (8,494) |
Total comprehensive income | 99,090 | 33,304 |
Comprehensive income attributable to noncontrolling interests | 4,202 | 5,823 |
Comprehensive income attributable to common stockholders | $ 94,888 | $ 27,481 |
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Total New Residential Stockholders’ Equity [Member] |
Noncontrolling Interests in Equity of Consolidated Subsidiaries [Member] |
---|---|---|---|---|---|---|---|
Equity - December 31, 2015 (in shares) at Dec. 31, 2015 | 230,471,202 | ||||||
Equity - December 31, 2015 at Dec. 31, 2015 | $ 2,986,580 | $ 2,304 | $ 2,640,893 | $ 148,800 | $ 3,936 | $ 2,795,933 | $ 190,647 |
Dividends declared | (106,017) | (106,017) | (106,017) | ||||
SpringCastle Transaction | 110,438 | 110,438 | |||||
Capital contributions | 0 | 0 | |||||
Capital distributions | (11,095) | (11,095) | |||||
Comprehensive income (loss) | |||||||
Net income | 115,938 | 111,736 | 111,736 | 4,202 | |||
Net unrealized gain (loss) on securities | (19,969) | (19,969) | (19,969) | ||||
Reclassification of net realized (gain) loss on securities into earnings | 3,121 | 3,121 | 3,121 | ||||
Total comprehensive income | 99,090 | 94,888 | 4,202 | ||||
Equity - March 31, 2016 (in shares) at Mar. 31, 2016 | 230,471,202 | ||||||
Equity - March 31, 2016 at Mar. 31, 2016 | $ 3,078,996 | $ 2,304 | $ 2,640,893 | $ 154,519 | $ (12,912) | $ 2,784,804 | $ 294,192 |
ORGANIZATION AND BASIS OF PRESENTATION |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION New Residential Investment Corp. (together with its subsidiaries, “New Residential”) is a Delaware corporation that was formed as a limited liability company in September 2011 for the purpose of making real estate related investments and commenced operations on December 8, 2011. On December 20, 2012, New Residential was converted to a corporation. Newcastle Investment Corp. (“Newcastle”) was the sole stockholder of New Residential until the spin-off (Note 13), which was completed on May 15, 2013. Following the spin-off, New Residential is an independent publicly traded real estate investment trust (“REIT”) primarily focused on investing in residential mortgage related assets. New Residential is listed on the New York Stock Exchange (“NYSE”) under the symbol “NRZ.” New Residential has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, New Residential will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 17 regarding New Residential’s taxable REIT subsidiaries. New Residential has entered into a management agreement (the “Management Agreement”) with FIG LLC (the “Manager”), an affiliate of Fortress Investment Group LLC (“Fortress”), pursuant to which the Manager provides a management team and other professionals who are responsible for implementing New Residential’s business strategy, subject to the supervision of New Residential’s Board of Directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. The Manager also manages Newcastle, investment funds that indirectly own a majority of the outstanding interests in Nationstar Mortgage LLC (“Nationstar”), a leading residential mortgage servicer, and investment funds that own a majority of the outstanding common stock of OneMain Holdings, Inc. (formerly known as Springleaf Holdings, Inc.) (together with its subsidiaries, “OneMain”), former managing member of the Consumer Loan Companies (Note 9). As of March 31, 2016, New Residential conducted its business through the following segments: (i) investments in excess mortgage servicing rights (“Excess MSRs”), (ii) investments in servicer advances (including the basic fee component of the related mortgage servicing rights (“MSRs”)), (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans and (vi) corporate. Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals as of March 31, 2016. In addition, Fortress, through its affiliates, held options relating to approximately 9.2 million shares of New Residential’s common stock as of March 31, 2016. Interim Financial Statements The accompanying condensed consolidated financial statements and related notes of New Residential have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of New Residential’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2015 and notes thereto included in New Residential’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Capitalized terms used herein, and not otherwise defined, are defined in New Residential’s consolidated financial statements for the year ended December 31, 2015. Certain prior period amounts have been reclassified to conform to the current period’s presentation. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenues from Contracts with Customers (Topic 606). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In effect, companies will be required to exercise further judgment and make more estimates prospectively. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 is effective for New Residential in the first quarter of 2018. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in ASU No. 2014-09. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by requiring management to assess an entity’s ability to continue as a going concern by incorporating and expanding on certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for New Residential for the annual period ending on December 31, 2016. Early adoption was permitted. New Residential is currently evaluating the new guidance to determine the impact that it may have on its condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The standard: (i) requires that certain equity investments be measured at fair value, and modifies the assessment of impairment for certain other equity investments, (ii) changes certain disclosure requirements related to the fair value of financial instruments measured at amortized cost, (iii) changes certain disclosure requirements related to liabilities measured at fair value, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for New Residential in the first quarter of 2018. Early adoption is generally not permitted. An entity should apply ASU No. 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, financial instruments, restricted cash and hedging. Some of the proposed changes are significant and could have a material impact on New Residential’s reporting. New Residential has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. SpringCastle Transaction On March 31, 2016, certain of New Residential’s indirect wholly owned subsidiaries (collectively, the “NRZ SpringCastle Buyers”) entered into a Purchase Agreement (the “SpringCastle Purchase Agreement”) primarily with (i) certain direct or indirect wholly owned subsidiaries of OneMain (the “SpringCastle Sellers”), (ii) BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P. (together, the “Blackstone SpringCastle Buyers,” and the Blackstone SpringCastle Buyers together with the NRZ SpringCastle Buyers, collectively, the “SpringCastle Buyers”). Pursuant to the SpringCastle Purchase Agreement, the SpringCastle Sellers sold their collective 47% limited liability company interests in the Consumer Loan Companies (Note 9) to the SpringCastle Buyers for an aggregate purchase price of $111,625,000 (the “SpringCastle Transaction”). Pursuant to the SpringCastle Purchase Agreement, the NRZ SpringCastle Buyers collectively acquired an additional 23.5% limited liability company interest in the Consumer Loan Companies (representing 50% of the limited liability company interests being sold by the SpringCastle Sellers in the SpringCastle Transaction) and the Blackstone SpringCastle Buyers acquired the other 50% of the limited liability company interests being sold in the SpringCastle Transaction. The SpringCastle Buyers collectively paid $100,462,500 of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11,162,500 to be paid into an escrow account within 120 days following March 31, 2016. The NRZ SpringCastle Buyers’ obligation with respect to purchase price was, and the escrow obligation will be, 50% of the total paid, or to be paid, by the SpringCastle Buyers. The escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016 and, subject to the terms of the SpringCastle Purchase Agreement and depending on the achievement of certain portfolio performance requirements, paid (in whole or in part) to the SpringCastle Sellers at the end of such five year period. Any portion of the escrowed funds that the SpringCastle Sellers are not entitled to receive at the end of such five year period, based on the failure to achieve certain portfolio performance requirements, will be returned to the SpringCastle Buyers. The SpringCastle Buyers are also entitled (but not required) to use the escrowed funds as a source of recovery for any indemnification payments to which they become entitled pursuant to the SpringCastle Purchase Agreement. The SpringCastle Purchase Agreement includes customary representations, warranties, covenants and indemnities. The SpringCastle Transaction was unanimously approved by a special committee composed entirely of independent directors to which New Residential’s board of directors had delegated full authority to consider, negotiate and determine whether to engage in the SpringCastle Transaction. Following the SpringCastle Transaction, New Residential, through the NRZ SpringCastle Buyers, owns 53.5% of the limited liability company interests in the Consumer Loan Companies and the Blackstone SpringCastle Buyers, collectively with their affiliates, own the remaining 46.5% interests in the Consumer Loan Companies. OneMain will remain as servicer of the loans held by the Consumer Loan Companies and their subsidiaries immediately following the SpringCastle Transaction. In connection with the closing of the SpringCastle Transaction, each NRZ SpringCastle Buyer entered into a Second Amended & Restated Limited Liability Company Agreement (each, a “Second A&R LLC Agreement”) for each of the Consumer Loan Companies in which it acquired limited liability company interests. All of the Second A&R LLC Agreements contain substantially identical terms and conditions and designate the respective NRZ SpringCastle Buyer that is a party thereto as managing member of the applicable Consumer Loan Company. Pursuant to each Second A&R LLC Agreement, the managing member has the exclusive power and authority to manage the business and affairs of the applicable Consumer Loan Company, subject to the rights of the members to approve specified significant actions outside of the ordinary course of business and certain affiliate transactions, and subject to the other terms, conditions and limitations set forth in the Second A&R LLC Agreements. Each Second A&R LLC Agreement contains certain customary restrictions on the members’ ability to transfer their interests in the applicable Consumer Loan Companies. As a result of the SpringCastle Transaction, New Residential obtained a controlling financial interest in the Consumer Loan Companies, which triggered the application of the acquisition model in ASC No. 805, including the fair value recognition of all net assets over which control has been obtained and the remeasurement of any previously held noncontrolling interest. Based on the guidance in ASC No. 805, New Residential has consolidated all of the assets and the related liabilities of the Consumer Loan Companies assuming a gross purchase price of $237.5 million. This gross purchase price is representative of the fair value, measured in accordance with ASC No. 820, of 100% of the net assets of the Consumer Loan Companies, which was used to derive the $111.6 million purchase price for an aggregate 47.0% of the equity ownership acquired by the SpringCastle Buyers. The remeasurement of New Residential’s previously held equity method investment resulted in a gain of $71.3 million, which was recorded to Gain on Remeasurement of Consumer Loans Investment. New Residential has performed a preliminary allocation of the purchase price to the Consumer Loans Companies’ assets and liabilities, as set forth below. The final allocation of purchase price may differ from the amounts included herein. The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows:
The acquisition of the Consumer Loans Companies resulted in no goodwill because the total consideration transferred was equal to the fair value of the net assets acquired. Unaudited Supplemental Pro Forma Financial Information - The following table presents New Residential’s unaudited pro forma combined Interest Income and Income Before Income Taxes for the three months ended March 31, 2016 and 2015 prepared as if the SpringCastle Transaction had been consummated on January 1, 2015.
The 2016 unaudited supplemental pro forma financial information has been adjusted to exclude, and the 2015 unaudited supplemental pro forma financial information has been adjusted to include, (i) the gain on remeasurement of New Residential’s Consumer Loans investment of $71.3 million and (ii) approximately $1.5 million of acquisition related costs incurred by New Residential in 2016. The unaudited supplemental pro forma financial information does not include any other anticipated benefits of the SpringCastle Transaction and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the SpringCastle Transaction occurred on January 1, 2015. See Note 9 for further information on the Consumer Loan Companies and Note 11 for further information on related financing. |
OTHER INCOME, ASSETS AND LIABILITIES |
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Other Income Assets And Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, ASSETS AND LIABILITIES | OTHER INCOME, ASSETS AND LIABILITIES Other income (loss), net, is comprised of the following:
Gain (loss) on settlement of investments, net is comprised of the following:
Other assets and liabilities are comprised of the following:
As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following:
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SEGMENT REPORTING |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in Servicer Advances, (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans, and (vi) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the management fees and incentive compensation related to the Management Agreement and (iii) corporate cash and related interest income. Securities owned by New Residential (Note 7) that are collateralized by servicer advances are included in the Servicer Advances segment. Secured corporate loans effectively collateralized by Excess MSRs are included in the Excess MSRs segment. Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:
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INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS The following table presents activity related to the carrying value of New Residential’s investments in Excess MSRs:
On January 4, 2016, New Residential invested the remaining $2.0 million to complete its acquisition of a 66.7% interest in the Excess MSRs on a portfolio of Fannie Mae residential mortgage loans with an aggregate UPB of $17.2 billion. Nationstar agreed to acquire the remaining 33.3% interest in the Excess MSRs. Nationstar, SLS or Ocwen, as applicable, as servicer, performs all servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in each portfolio. New Residential has entered into a “recapture agreement” with respect to each of the Excess MSR investments serviced by Nationstar and SLS, including those Excess MSR investments made through investments in joint ventures (Note 5). Under the recapture agreements, New Residential is generally entitled to a pro rata interest in the Excess MSRs on any initial or subsequent refinancing by Nationstar or SLS, as applicable, of a loan in the original portfolio. New Residential has a similar recapture agreement with Ocwen; however, this agreement allows for Ocwen to retain the Excess MSR on recaptured loans up to a specified threshold and no payments have been made to New Residential under such arrangement to date. These recapture agreements do not apply to New Residential’s investments in Servicer Advances (Note 6). New Residential elected to record its investments in Excess MSRs at fair value pursuant to the fair value option for financial instruments in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on the Excess MSRs. The following is a summary of New Residential’s direct investments in Excess MSRs:
Changes in fair value recorded in other income are comprised of the following:
In the first quarter of 2016, a weighted average discount rate of 9.8% was used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). The table below summarizes the geographic distribution of the underlying residential mortgage loans of the direct investments in Excess MSRs:
Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the Excess MSRs. |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES | INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES New Residential entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by New Residential and Fortress-managed funds investing in Excess MSRs. New Residential elected to record these investments at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential:
New Residential’s investments in equity method investees changed during the three months ended March 31, 2016 as follows:
The following is a summary of New Residential’s Excess MSR investments made through equity method investees:
In the first quarter of 2016, a weighted average discount rate of 9.8% was used to value New Residential’s investments in Excess MSRs (directly and 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:
Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the Excess MSRs. |
INVESTMENTS IN SERVICER ADVANCES |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN SERVICER ADVANCES | INVESTMENTS IN SERVICER ADVANCES In December 2013, New Residential and third-party co-investors, through a joint venture entity (Advance Purchaser LLC, the “Buyer”) consolidated by New Residential, purchased the outstanding Servicer Advances related to a portfolio of residential mortgage loans that is serviced by Nationstar and is a subset of the same portfolio of loans in which New Residential has invested in a portion of the Excess MSRs (Notes 4 and 5), including the basic fee component of the related MSRs. A taxable wholly owned subsidiary of New Residential is the managing member of the Buyer and owned an approximately 44.5% interest in the Buyer as of March 31, 2016. As of March 31, 2016, noncontrolling third-party investors, owning the remaining interest in the Buyer, have funded capital commitments to the Buyer of $389.6 million and New Residential has funded capital commitments to the Buyer of $312.7 million. The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including New Residential. As of March 31, 2016, the third-party co-investors and New Residential had previously funded their commitments, however the Buyer may recall $256.9 million and $206.2 million of capital distributed to the third-party co-investors and New Residential, respectively. Neither the third-party co-investors nor New Residential is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of the Buyer. The Buyer has purchased Servicer Advances from Nationstar, is required to purchase all future Servicer Advances made with respect to this portfolio of loans from Nationstar, and receives cash flows from advance recoveries and the basic fee component of the related MSRs, net of compensation paid back to Nationstar in consideration of Nationstar’s servicing activities. The compensation paid to Nationstar as of March 31, 2016 was approximately 9.3% of the basic fee component of the related MSRs plus a performance fee that represents a portion (up to 100%) of the cash flows in excess of those required for the Buyer to obtain a specified return on its equity. New Residential also acquired a portion of the call rights related to this portfolio of loans. In December 2014, New Residential agreed to acquire (the “SLS Transaction”) 50% of the Excess MSRs and all of the Servicer Advances and related basic fee portion of the MSR (the “SLS Advance Fee”), and a portion of the call rights related to a portfolio of residential mortgage loans which is serviced by SLS. Fortress-managed funds acquired the other 50% of the Excess MSRs. SLS will continue to service the loans in exchange for a servicing fee of 10.75 bps times the UPB of the underlying loans and an incentive fee (the “SLS Incentive Fee”) which is based on the ratio of the outstanding Servicer Advances to the UPB of the underlying loans. On April 6, 2015, New Residential acquired Servicer Advances and Excess MSRs in connection with the HLSS Acquisition. Ocwen will continue to service the underlying loans in exchange for a servicing fee of approximately 5.3 bps times the UPB of the underlying loans and an incentive fee which is reduced by LIBOR plus 2.75% per annum of the amount, if any, of servicer advances outstanding in excess of a defined target. In connection with the HLSS Acquisition, New Residential acquired from Ocwen the call rights related to the mortgage loans underlying the Excess MSRs and Servicer Advances acquired from HLSS. New Residential continues to evaluate the call rights it acquired from Nationstar, SLS and Ocwen, and its ability to exercise such rights and realize the benefits therefrom are subject to a number of risks. The actual UPB of the mortgage loans on which New Residential can successfully exercise call rights and realize the benefits therefrom may differ materially from its initial assumptions. New Residential elected to record its investments in Servicer Advances, including the right to the basic fee component of the related MSRs, at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of market factors. The following is a summary of the investments in Servicer Advances, including the right to the basic fee component of the related MSRs:
The following is additional information regarding the Servicer Advances and related financing:
Interest income recognized by New Residential related to its investments in Servicer Advances was comprised of the following:
New Residential has determined that the Buyer is a VIE. The following table presents information on the assets and liabilities related to this consolidated VIE.
Others’ interests in the equity of the Buyer is computed as follows:
Others’ interests in the Buyer’s net income is computed as follows:
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INVESTMENTS IN REAL ESTATE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN REAL ESTATE SECURITIES | INVESTMENTS IN REAL ESTATE SECURITIES Agency residential mortgage backed securities (“RMBS”) are issued by a government sponsored enterprise, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Non-Agency RMBS are issued by either public trusts or private label securitization entities. Activities related to New Residential’s investments in real estate securities were as follows:
As of March 31, 2016, New Residential sold and purchased $1.4 billion and $1.3 billion face amount of Agency RMBS for $1.5 billion and $1.3 billion, respectively, and purchased $0.2 billion face amount of Non-Agency RMBS for $0.1 billion, which had not yet been settled. These unsettled sales and purchases were recorded on the balance sheet on trade date as Trades Receivable and Trades Payable. New Residential has exercised its call rights with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. Refer to Note 8 for further details on these transactions. The following is a summary of New Residential’s real estate securities, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement.
Unrealized losses that are considered other-than-temporary are recognized currently in earnings. During the three months ended March 31, 2016, New Residential recorded OTTI charges of $3.3 million with respect to real estate securities. Any remaining unrealized losses on New Residential’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. New Residential performed analyses in relation to such securities, using its best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. New Residential has no intent to sell, and is not more likely than not to be required to sell, these securities. The following table summarizes New Residential’s securities in an unrealized loss position as of March 31, 2016.
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following:
The following table summarizes the activity related to credit losses on debt securities:
The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS:
New Residential evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, New Residential identified a population of real estate securities for which it was determined that it was probable that New Residential would be unable to collect all contractually required payments. For securities acquired during the three months ended March 31, 2016, excluding residual and interest-only securities, the face amount of these real estate securities was $626.2 million, with total expected cash flows of $425.3 million and a fair value of $341.7 million on the dates that New Residential purchased the respective securities. The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments, excluding residual and interest-only securities:
The following is a summary of the changes in accretable yield for these securities:
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INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS Loans are accounted for based on New Residential’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. New Residential accounts for loans based on the following categories:
The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO:
New Residential generally considers the delinquency status, loan-to-value ratios, and geographic area of residential mortgage loans as its credit quality indicators. Delinquency status is a primary credit quality indicator as loans that are more than 60 days past due provide an early warning of borrowers who may be experiencing financial difficulties. Current LTV ratio is an indicator of the potential loss severity in the event of default. Finally, the geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events will affect credit quality. The table below summarizes the geographic distribution of the residential mortgage loans:
New Residential has exercised its call rights with respect to the following Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO assets contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. The following table summarizes these transactions which occurred in 2016 (dollars in millions).
Reverse Mortgage Loans In February 2013, New Residential, through a subsidiary, entered into an agreement to co-invest in reverse mortgage loans. New Residential acquired a 70% participation interest in a portfolio of reverse mortgage loans. Nationstar has co-invested on a pari passu basis with New Residential in 30% of the reverse mortgage loans and is the servicer of the loans performing all servicing and advancing functions and retaining the ancillary income, servicing obligations and liabilities as the servicer. Performing Loans The following table provides past due information regarding New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses:
Activities related to the carrying value of residential mortgage loans held-for-investment were as follows:
Activities related to the valuation and loss provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows:
Purchased Credit Deteriorated Loans New Residential determined at acquisition that the PCD loans acquired would be aggregated into pools based on common risk characteristics (FICO score, delinquency status, collateral type, loan-to-value ratio). Loans aggregated into pools are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. Activities related to the carrying value of PCD loans held-for-investment were as follows:
New Residential did not acquire any PCD loans during the three months ended March 31, 2016. The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments:
The following is a summary of the changes in accretable yield for these loans:
Loans Held-for-Sale Activities related to the carrying value of loans held-for-sale were as follows:
Real estate owned (REO) New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value.
As of March 31, 2016, New Residential had non-performing residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $479.7 million. In addition, New Residential has recognized $30.1 million in claims receivable from FHA on Ginnie Mae early buy-out (“EBO”) loans and reverse mortgage loans for which foreclosure has been completed during the three months ended March 31, 2016 and for which New Residential has made, or intends to make, a claim. |
INVESTMENTS IN CONSUMER LOANS |
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Investments In Consumer Loans Equity Method Investees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN CONSUMER LOANS | INVESTMENTS IN CONSUMER LOANS In April 2013, New Residential completed, through newly formed limited liability companies (together, the “Consumer Loan Companies”), a co-investment in a portfolio of consumer loans. The portfolio included personal unsecured loans and personal homeowner loans originated through subsidiaries of HSBC Finance Corporation. The Consumer Loan Companies acquired the portfolio from HSBC Finance Corporation and its affiliates. New Residential acquired 30% membership interests in each of the Consumer Loan Companies. Of the remaining 70% of the membership interests, OneMain acquired 47% and funds managed by Blackstone Tactical Opportunities Advisors L.L.C. acquired 23%. OneMain acted as the managing member of the Consumer Loan Companies. The Consumer Loan Companies initially financed approximately 73% of the original purchase price with asset-backed notes. In September 2013, the Consumer Loan Companies issued and sold additional asset-backed notes that were subordinate to the debt issued in April 2013. The Consumer Loan Companies were formed on March 19, 2013, for the purpose of making this investment, and commenced operations upon the completion of the investment. After a servicing transition period, OneMain became the servicer of the loans and provides all servicing and advancing functions for the portfolio. On October 3, 2014, the Consumer Loan Companies refinanced the outstanding asset-backed notes with an asset-backed securitization. The proceeds in excess of the refinanced debt were distributed to the respective co-investors, which reduced New Residential’s basis in the consumer loans investment to $0.0 million and resulted in a gain. Subsequent to this refinancing, New Residential discontinued recording its share of the underlying earnings of the Consumer Loan Companies. During the three months ended March 31, 2016, the Consumer Loan Companies distributed $9.9 million to New Residential in excess of its basis, resulting in corresponding gains, including $0.03 million in tax withholding payments on behalf of New Residential. The tax withholding payments were considered a non-cash distribution. On March 31, 2016, New Residential entered into the SpringCastle Transaction (Note 1). As a result, New Residential owns 53.5% of, and consolidates, the Consumer Loan Companies. The following tables summarize the investment in Consumer Loans, held-for-investment held by New Residential:
The following are the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for PCD loans acquired on March 31, 2016 as a result of the SpringCastle Transaction:
The Consumer Loan Companies consolidate certain entities that issued securitized debt collateralized by the consumer loans (the “Consumer Loan SPVs”). The Consumer Loan SPVs are VIEs of which the Consumer Loan Companies are the primary beneficiaries. The following table presents information on the combined assets and liabilities related to these consolidated VIEs.
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DERIVATIVES |
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DERIVATIVES | DERIVATIVES As of March 31, 2016, New Residential’s derivative instruments included economic hedges that were not designated as hedges for accounting purposes. New Residential uses economic hedges to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. New Residential’s credit risk with respect to economic hedges is the risk of default on New Residential’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. As of March 31, 2016, New Residential held to-be-announced forward contract positions (“TBAs”) of $2.4 billion in a short notional amount of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty. New Residential’s net short position in TBAs was entered into as an economic hedge in order to mitigate New Residential’s interest rate risk on certain specified mortgage backed securities. As of March 31, 2016, New Residential separately held TBAs of $1.1 billion in a long notional amount of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of setoff with the TBA counterparty. $0.2 billion of the long notional amount of Agency RMBS included TBAs purchased for which the specific securities were not identified as of March 31, 2016 and, as such, the positions were recorded as derivatives within the Accrued Expenses and Other Liabilities line on the condensed balance sheet. As part of executing these trades, New Residential has entered into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions. New Residential has fulfilled all obligations and requirements entered into under these agreements. New Residential’s derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets as follows:
The following table summarizes notional amounts related to derivatives:
The following table summarizes gains (losses) recorded in relation to derivatives:
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DEBT OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding New Residential’s debt obligations:
General Certain of the debt obligations included above are obligations of New Residential’s consolidated subsidiaries, which own the related collateral. In some cases, including the Servicer Advances and Consumer Loans, such collateral is not available to other creditors of New Residential. New Residential has margin exposure on $4.0 billion of repurchase agreements as of March 31, 2016. To the extent that the value of the collateral underlying these repurchase agreements declines, New Residential may be required to post margin, which could significantly impact its liquidity. Activities related to the carrying value of New Residential’s debt obligations were as follows:
Servicer Advances On March 31, 2016, the HSART facility was paid off and, in anticipation of such pay off, New Residential increased the capacity of, and transferred the related collateral to, various existing servicer advance financing facilities. As a result, New Residential recorded $0.1 million of loss on extinguishment of debt related to a write-off of unamortized deferred financing costs. Maturities New Residential’s debt obligations as of March 31, 2016 had contractual maturities as follows:
Borrowing Capacity The following table represents New Residential’s borrowing capacity as of March 31, 2016:
Certain of the debt obligations are subject to customary debt covenants and event of default provisions, including event of default provisions triggered by a 50% equity decline over any 12-month period, or a 35% decline over any three-month period, as of a quarter end, and a 4:1 indebtedness to tangible net worth provision. New Residential was in compliance with all of its debt covenants as of March 31, 2016. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of March 31, 2016 were as follows:
New Residential’s financial assets measured at fair value on a recurring basis using Level 3 inputs changed as follows:
Investments in Excess MSRs and Excess MSRs Equity Method Investees Valuation The following table summarizes certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees as of March 31, 2016:
As of March 31, 2016, a weighted average discount rate of 9.8% was used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). Investments in Servicer Advances Valuation The following table summarizes certain information regarding the inputs used in valuing the Servicer Advances:
Real Estate Securities Valuation As of March 31, 2016, New Residential’s securities valuation methodology and results are further detailed as follows:
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment. For residential mortgage loans held-for-sale and foreclosed real estate accounted for as REO, New Residential applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment. The consumer loans, held-for-investment, and related notes and bonds payable were recorded at fair value on the date of the SpringCastle Transaction (Note 1), March 31, 2016. At March 31, 2016, assets measured at fair value on a nonrecurring basis were $2.4 billion. The $2.4 billion includes approximately $2.0 billion of consumer loans, held-for-investment, $377.4 million of residential mortgage loans held-for-sale and $25.3 million of REO. The fair value of New Residential’s consumer loans, held-for-investment, and mortgage loans, held-for-sale, are estimated based on a discounted cash flow model analysis using internal pricing models and categorized within Level 3 of the fair value hierarchy. The following table summarizes the inputs used in valuing these loans as of March 31, 2016:
The fair value of REO is estimated using a broker’s price opinion discounted based upon New Residential’s experience with actual liquidation values and, therefore, is categorized within Level 3 of the fair value hierarchy. These discounts to the broker price opinion are generally 10%. The debt assumed in the SpringCastle Transaction (Notes 1 and 11) was recorded at its fair value of $1.8 billion on March 31, 2016. The fair value was estimated based on a discounted cash flow model using both observable and unobservable inputs to estimate the amount and timing of expected cash flows, interest rates and collateral funding spreads and, therefore, is categorized within Level 3 of the fair value hierarchy. The total change in the recorded value of assets for which a fair value adjustment was included in the Condensed Consolidated Statement of Income for the three months ended March 31, 2016 was a decrease in the net valuation allowance of approximately $3.1 million and $3.6 million for residential mortgage loans held-for-sale and REO, respectively. Residential Mortgage Loans for Which Fair Value is Only Disclosed The following table summarizes the inputs used in valuing residential mortgage loans as of March 31, 2016:
Derivative Valuation New Residential enters into economic hedges including interest rate swaps, caps and TBAs, which are categorized as Level 2 in the valuation hierarchy. New Residential generally values such derivatives using quotations, similarly to the method of valuation used for New Residential’s other assets that are categorized as Level 2. Liabilities for Which Fair Value is Only Disclosed Repurchase agreements and notes and bonds payable are not measured at fair value. They are generally considered to be Level 2 and Level 3 in the valuation hierarchy, respectively, with significant valuation variables including the amount and timing of expected cash flows, interest rates and collateral funding spreads. Short-term repurchase agreements and short-term notes and bonds payable have an estimated fair value equal to their carrying value due to their short duration and generally floating interest rates. Longer-term notes and bonds payable are valued based on internal models utilizing both observable and unobservable inputs. |
EQUITY AND EARNINGS PER SHARE |
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Equity and Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends On December 10, 2015, New Residential’s Board of Directors declared a fourth quarter 2015 dividend of $0.46 per common share or $106.0 million, which was paid on January 29, 2016 to stockholders of record as of December 31, 2015. On March 22, 2016, New Residential’s Board of Directors declared a first quarter 2016 dividend of $0.46 per common share or $106.0 million, which was paid on April 29, 2016 to stockholders of record as of April 4, 2016. On January 19, 2016, New Residential announced that its Board of Directors had authorized the repurchase of up to $200 million of its common stock over the next 12 months. Repurchases may be made at any time and from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Exchange Act, by means of one or more tender offers, or otherwise, in each case, as permitted by securities laws and other legal and contractual requirements. The amount and timing of the purchases, if any, will depend on a number of factors including the price and availability of New Residential’s shares, trading volume, capital availability, New Residential’s performance and general economic and market conditions. The share repurchase program may be suspended or discontinued at any time. No share repurchases have been made as of the date of issuance of these condensed consolidated financial statements. Repurchases may impact New Residential’s financial results, including fees paid to its Manager. Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals at March 31, 2016. Option Plan As of March 31, 2016, New Residential’s outstanding options were summarized as follows:
The following table summarizes New Residential’s outstanding options as of March 31, 2016. The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended March 31, 2016 was $11.63 per share.
The following table summarizes activity in New Residential’s outstanding options:
Income and Earnings Per Share New Residential is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. New Residential’s common stock equivalents are its outstanding options. During the three months ended March 31, 2016, based on the treasury stock method, New Residential had 67,510 dilutive common stock equivalents outstanding. During the three months ended March 31, 2015, based on the treasury stock method, New Residential had 3,476,404 dilutive common stock equivalents outstanding. Noncontrolling Interests Noncontrolling interests is comprised of the interests held by third parties in consolidated entities that hold New Residential’s investments in Servicer Advances (Note 6) and Consumer Loans (Note 9), as well as HLSS for the period of April 6, 2015 through October 23, 2015. |
COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation – Following the HLSS Acquisition (see Note 1 for related defined terms), material potential claims, lawsuits, regulatory inquiries or investigations, and other proceedings, of which New Residential is currently aware, are as follows. New Residential has not accrued losses in connection with these legal contingencies because it does not believe there is a probable and reasonably estimable loss. Furthermore, New Residential cannot reasonably estimate the range of potential loss related to these legal contingencies at this time. However, the ultimate outcome of the proceedings described below may have a material adverse effect on New Residential’s business, financial position or results of operations. In addition to the matters described below, from time to time, New Residential is or may be involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its financial results. New Residential is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. Three putative class action lawsuits have been filed against HLSS and certain of its current and former officers and directors in the United States District Court for the Southern District of New York entitled: (i) Oliveira v. Home Loan Servicing Solutions, Ltd., et al., No. 15-CV-652 (S.D.N.Y.), filed on January 29, 2015; (ii) Berglan v. Home Loan Servicing Solutions, Ltd., et al., No. 15-CV-947 (S.D.N.Y.), filed on February 9, 2015; and (iii) W. Palm Beach Police Pension Fund v. Home Loan Servicing Solutions, Ltd., et al., No. 15-CV-1063 (S.D.N.Y.), filed on February 13, 2015. On April 2, 2015, these lawsuits were consolidated into a single action, which is referred to as the “Securities Action.” On April 28, 2015, lead plaintiffs, lead counsel and liaison counsel were appointed in the Securities Action. On November 9, 2015, lead plaintiffs filed an amended class action complaint. On January 27, 2016, the Securities Action was transferred to the United States District Court for the Southern District of Florida and given the Index No. 16-CV-60165 (S.D. Fla.). The Securities Action names as defendants HLSS, former HLSS Chairman William C. Erbey, HLSS Director, President, and Chief Executive Officer John P. Van Vlack, and HLSS Chief Financial Officer James E. Lauter. The Securities Action asserts causes of action under Sections 10(b) and 20(a) of the Exchange Act based on certain public disclosures made by HLSS relating to its relationship with Ocwen and HLSS’s risk management and internal controls. More specifically, the consolidated class action complaint alleges that a series of statements in HLSS’s disclosures were materially false and misleading, including statements about (i) Ocwen’s servicing capabilities; (ii) HLSS’s contingencies and legal proceedings; (iii) its risk management and internal controls; and (iv) certain related party transactions. The consolidated class action complaint also appears to allege that HLSS’s financial statements for the years ended 2012 and 2013, and the first quarter ended March 30, 2014, were false and misleading based on HLSS’s August 18, 2014 restatement. Lead plaintiffs in the Securities Action also allege that HLSS misled investors by failing to disclose, among other things, information regarding governmental investigations of Ocwen’s business practices. Lead plaintiffs seek money damages under the Exchange Act in an amount to be proven at trial and reasonable costs, expenses, and fees. New Residential intends to vigorously defend the Securities Action and consistent therewith on February 11, 2015, defendants filed motions to dismiss the Securities Action in its entirety. Three shareholder derivative actions have been filed in the United States District Court for the Southern District of Florida purportedly on behalf of Ocwen: (i) Sokolowski v. Erbey, et al., No. 14-CV-81601 (S.D. Fla.) (the “Sokolowski Action”); (ii) Hutt v. Erbey, et al., No. 15-CV-81709 (S.D. Fla.) (the “Hutt Action”); and (iii) Lowinger v. Erbey, et al., No. 15-CV-62628 (S.D. Fla.) (the “Lowinger Action”). On November 9, 2015, HLSS filed a motion to dismiss the Sokolowski Action. While that motion was pending, the Hutt Action, which at the time did not name HLSS as a defendant, was transferred from the Northern District of Georgia to the Southern District of Florida and the Lowinger Action, which at the time also did not name HLSS as a defendant, was filed. On January 8, 2016, the court consolidated the three actions and denied HLSS’s motion to dismiss the Sokolowski complaint as moot and without prejudice to re-file a new motion to dismiss following the filing of a consolidated complaint. On March 8, 2016, plaintiffs filed their consolidated complaint. The consolidated complaint alleges, among other things, that certain of Ocwen’s current and former directors and officers, including former HLSS Chairman William C. Erbey, breached their fiduciary duties to Ocwen by, among other things, causing Ocwen to enter into transactions that were harmful to Ocwen. The complaint further alleges that HLSS and others aided and abetted the alleged breaches of fiduciary duty by Mr. Erbey and the other directors and officers of Ocwen who have been named as defendants. The consolidated complaint also asserts causes of action against HLSS and others for unjust enrichment and for contribution. The lawsuit seeks money damages from HLSS in an amount to be proven at trial. New Residential intends to vigorously defend the lawsuit. One shareholder derivative action has been filed in Florida state court in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida purportedly on behalf of Ocwen: Moncavage v. Faris, et al., No. 2015CA003244 (Fla. Palm Beach Cty. Ct.). The complaint alleges, among other things, that certain current and former Ocwen directors and officers breached their fiduciary duties to Ocwen. The complaint also alleged that HLSS and others aided and abetted the alleged breaches of fiduciary duty. The lawsuit seeks money damages from HLSS in an amount to be proved at trial. On November 9, 2015, the court entered an order staying all proceedings in the case pending further order of the Court. HLSS has not been served. If the litigation proceeds, New Residential intends to vigorously defend the lawsuit. On March 11, 2015, plaintiff David Rattner filed a shareholder derivative action purportedly on behalf of HLSS entitled Rattner v. Van Vlack, et al., No. 2015CA002833 (Fla. Palm Beach Cty. Ct.) (the “HLSS Derivative Action”). The lawsuit names as defendants HLSS directors John P. Van Vlack, Robert J. McGinnis, Kerry Kennedy, Richard J. Lochrie, and David B. Reiner (collectively, the “Director Defendants”), New Residential Investment Corp., and Hexagon Merger Sub, Ltd. The HLSS Derivative Action alleges that the Director Defendants breached their fiduciary duties of due care, diligence, loyalty, honesty and good faith and the duty to act in the best interests of HLSS under Cayman law and claims that the Director Defendants approved a proposed merger with New Residential Investment Corp. that (i) provided inadequate consideration to HLSS’s shareholders, (ii) included unfair deal protection devices, (iii) and was the result of an inadequate process due to conflicts of interest. On July 8, 2015, the complaint was voluntarily dismissed without prejudice. New Residential is, from time to time, subject to inquiries by government entities. New Residential currently does not believe any of these inquiries would result in a material adverse effect on New Residential’s business. Indemnifications – In the normal course of business, New Residential and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. New Residential’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against New Residential that have not yet occurred. However, based on Newcastle’s and its own experience, New Residential expects the risk of material loss to be remote. Capital Commitments — As of March 31, 2016, New Residential had outstanding capital commitments related to investments in the following investment types (also refer to Note 18 for additional capital commitments entered into subsequent to March 31, 2016, if any): Servicer Advances — New Residential and third-party co-investors agreed to purchase future Servicer Advances related to Non-Agency mortgage loans. The actual amount of future advances purchased will be based on: (a) the credit and prepayment performance of the underlying loans, (b) the amount of advances recoverable prior to liquidation of the related collateral and (c) the percentage of the loans with respect to which no additional advance obligations are made. The actual amount of future advances is subject to significant uncertainty. See Note 6 for information on New Residential’s investments in Servicer Advances. Residential Mortgage Loans — As part of its investment in residential mortgage loans, New Residential may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 8 for information on New Residential’s investments in residential mortgage loans. Environmental Costs — As a residential real estate owner through its REO, New Residential is subject to potential environmental costs. At March 31, 2016, New Residential is not aware of any environmental concerns that would have a material adverse effect on its consolidated financial position or results of operations. Debt Covenants — New Residential’s debt obligations contain various customary debt covenants (Note 11). Certain Tax-Related Covenants — If New Residential is treated as a successor to Newcastle under applicable U.S. federal income tax rules, and if Newcastle fails to qualify as a REIT, New Residential could be prohibited from electing to be a REIT. Accordingly, Newcastle has (i) represented that it has no knowledge of any fact or circumstance that would cause New Residential to fail to qualify as a REIT, (ii) covenanted to use commercially reasonable efforts to cooperate with New Residential as necessary to enable New Residential to qualify for taxation as a REIT and receive customary legal opinions concerning REIT status, including providing information and representations to New Residential and its tax counsel with respect to the composition of Newcastle’s income and assets, the composition of its stockholders, and its operation as a REIT; and (iii) covenanted to use its reasonable best efforts to maintain its REIT status for each of Newcastle’s taxable years ending on or before December 31, 2014 (unless Newcastle obtains an opinion from a nationally recognized tax counsel or a private letter ruling from the U.S. Internal Revenue Service (the “IRS”) to the effect that Newcastle’s failure to maintain its REIT status will not cause New Residential to fail to qualify as a REIT under the successor REIT rule referred to above). Additionally, New Residential covenanted to use its reasonable best efforts to qualify for taxation as a REIT for its taxable year ended December 31, 2013. |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES |
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TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES New Residential is party to a Management Agreement with its Manager which provides for automatically renewing one-year terms subject to certain termination rights. The Manager’s performance is reviewed annually and the Management Agreement may be terminated by New Residential by payment of a termination fee, as defined in the Management Agreement, equal to the amount of management fees earned by the Manager during the 12 consecutive calendar months immediately preceding the termination, upon the affirmative vote of at least two-thirds of the independent directors, or by a majority vote of the holders of common stock. Pursuant to the Management Agreement, the Manager, under the supervision of New Residential’s board of directors, formulates investment strategies, arranges for the acquisition of assets and associated financing, monitors the performance of New Residential’s assets and provides certain advisory, administrative and managerial services in connection with the operations of New Residential. Effective May 15, 2013, the Manager is entitled to receive a management fee in an amount equal to 1.5% per annum of New Residential’s gross equity calculated and payable monthly in arrears in cash. Gross equity is generally the equity transferred by Newcastle on the date of the spin-off (Note 13), plus total net proceeds from stock offerings, plus certain capital contributions to subsidiaries, less capital distributions and repurchases of common stock. In addition, effective May 15, 2013, the Manager is entitled to receive annual incentive compensation in an amount equal to the product of (A) 25% of the dollar amount by which (1) (a) New Residential’s funds from operations before the incentive compensation, excluding funds from operations from investments in the Consumer Loan Companies and any unrealized gains or losses from mark-to-market valuation changes on investments and debt (and any deferred tax impact thereof), per share of common stock, plus (b) earnings (or losses) from the Consumer Loan Companies computed on a level-yield basis (such that the loans are treated as if they qualified as loans acquired with a discount for credit quality as set forth in ASC No. 310-30, as such codification was in effect on June 30, 2013) as if the Consumer Loan Companies had been acquired at their GAAP basis on May 15, 2013, plus earnings (or losses) from equity method investees invested in Excess MSRs as if such equity method investees had not made a fair value election, plus gains (or losses) from debt restructuring and gains (or losses) from sales of property, and plus non-routine items, minus amortization of non-routine items, in each case per share of common stock, exceed (2) an amount equal to (a) the weighted average of the book value per share of the equity transferred by Newcastle on the date of the spin-off and the prices per share of New Residential’s common stock in any offerings (adjusted for prior capital dividends or capital distributions) multiplied by (b) a simple interest rate of 10% per annum, multiplied by (B) the weighted average number of shares of common stock outstanding. “Funds from operations” means net income (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and gains (or losses) from sales of property, plus depreciation on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations will be computed on an unconsolidated basis. The computation of funds from operations may be adjusted at the direction of New Residential’s independent directors based on changes in, or certain applications of, GAAP. Funds from operations is determined from the date of the spin-off and without regard to Newcastle’s prior performance. In addition to the management fee and incentive compensation, New Residential is responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of New Residential. Due to affiliates is comprised of the following amounts:
Affiliate expenses and fees were comprised of:
See Notes 4, 5, 6, 7, 8, 11, 14 and 18 for a discussion of transactions with Nationstar. As of March 31, 2016, 64.3% and 34.8% of the UPB of the loans underlying New Residential’s investments in Excess MSRs and Servicer Advances, respectively, was serviced or master serviced by Nationstar. As of March 31, 2016, a total face amount of $2.8 billion of New Residential’s Non-Agency RMBS portfolio and approximately $33.5 million of New Residential’s Agency RMBS portfolio was serviced or master serviced by Nationstar. The total UPB of the loans underlying these Nationstar serviced Non-Agency RMBS was approximately $11.9 billion as of March 31, 2016. New Residential holds a limited right to cleanup call options with respect to certain securitization trusts serviced or master serviced by Nationstar whereby, when the outstanding balance of the underlying mortgage loans falls below a pre-determined threshold, it can effectively purchase the underlying mortgage loans at par, plus unreimbursed servicer advances, resulting in the repayment of all of the outstanding securitization financing at par, in exchange for a 0.75% (of UPB) fee paid to Nationstar at the time of exercise. In connection with New Residential's exercise of certain of these call rights in 2014 and 2015, New Residential has made, and expects to continue to make, payments to funds managed by an affiliate of Fortress in respect of Excess MSRs held by the funds affected by the exercise of the call rights (“MSR Fund Payments”). During 2016, New Residential accrued for MSR Fund Payments in an aggregate amount of less than $0.1 million. New Residential continues to evaluate the call rights it purchased from Nationstar, and its ability to exercise such rights and realize the benefits therefrom are subject to a number of risks. The actual UPB of the mortgage loans on which New Residential can successfully exercise call rights and realize the benefits therefrom may differ materially from its initial assumptions. As of March 31, 2016, $543.5 million UPB of New Residential’s residential mortgage loans and $26.6 million of New Residential’s REO were being serviced or master serviced by Nationstar. Additionally, in the ordinary course of business, New Residential engages Nationstar to administer the termination of securitization trusts that it collapses pursuant to its call rights. As a result of these relationships, New Residential routinely has receivables from, and payables to, Nationstar, which are included in Other Assets and Accrued Expenses and Other Liabilities, respectively. See Note 9 for a discussion of a transaction with OneMain and Note 5 regarding co-investments with Fortress-managed funds. |
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income:
New Residential did not allocate any income tax expense or benefit to any component of other comprehensive income for any period presented, as no taxable subsidiary generated other comprehensive income. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following:
New Residential intends to qualify as a REIT for each of its tax years through December 31, 2016. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. New Residential operates various securitization vehicles and has made certain investments, particularly its investments in Servicer Advances (Note 6) and REO (Note 8), through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes which have been provided for in the provision for income taxes, as applicable. New Residential and its subsidiaries file income tax returns with the U.S. federal government and various state and local jurisdictions beginning with the tax year ending December 31, 2013. Generally, these income tax returns will be subject to tax examinations by tax authorities for a period of three years after the date of filing. New Residential has recorded a net deferred tax asset of approximately $196.2 million as of March 31, 2016, primarily related to basis differences in all servicer advances held by New Residential’s TRSs and related net operating loss carry forwards. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. As of March 31, 2016, New Residential recorded a partial valuation allowance related to certain net operating losses and loan loss reserves as management does not believe that it is more likely than not that these deferred tax assets will be realized. |
SUBSEQUENT EVENTS |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to March 31, 2016 (referred to as “subsequent events”) through the issuance of these condensed consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. Corporate Activities On March 22, 2016, New Residential’s Board of Directors declared a first quarter 2016 dividend of $0.46 per common share or $106.0 million, which was paid on April 29, 2016 to stockholders of record as of April 4, 2016. In April 2016, New Residential entered into a $225.0 million corporate loan with Barclays Bank PLC secured by Agency Excess MSRs. The loan bears interest equal to the sum of one-month LIBOR plus 4.75% and matures in April 2018. |
ORGANIZATION AND BASIS OF PRESENTATION (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying condensed consolidated financial statements and related notes of New Residential have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of New Residential’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2015 and notes thereto included in New Residential’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Capitalized terms used herein, and not otherwise defined, are defined in New Residential’s consolidated financial statements for the year ended December 31, 2015. Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenues from Contracts with Customers (Topic 606). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In effect, companies will be required to exercise further judgment and make more estimates prospectively. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 is effective for New Residential in the first quarter of 2018. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in ASU No. 2014-09. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by requiring management to assess an entity’s ability to continue as a going concern by incorporating and expanding on certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for New Residential for the annual period ending on December 31, 2016. Early adoption was permitted. New Residential is currently evaluating the new guidance to determine the impact that it may have on its condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The standard: (i) requires that certain equity investments be measured at fair value, and modifies the assessment of impairment for certain other equity investments, (ii) changes certain disclosure requirements related to the fair value of financial instruments measured at amortized cost, (iii) changes certain disclosure requirements related to liabilities measured at fair value, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for New Residential in the first quarter of 2018. Early adoption is generally not permitted. An entity should apply ASU No. 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, financial instruments, restricted cash and hedging. Some of the proposed changes are significant and could have a material impact on New Residential’s reporting. New Residential has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
ORGANIZATION AND BASIS OF PRESENTATION (Tables) |
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Summary of Preliminary Purchase Price Allocation | New Residential has performed a preliminary allocation of the purchase price to the Consumer Loans Companies’ assets and liabilities, as set forth below. The final allocation of purchase price may differ from the amounts included herein. The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows:
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Summary of Unaudited Pro Forma Combined Interest Income and Income (Loss) Before Income Taxes | The following table presents New Residential’s unaudited pro forma combined Interest Income and Income Before Income Taxes for the three months ended March 31, 2016 and 2015 prepared as if the SpringCastle Transaction had been consummated on January 1, 2015.
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OTHER INCOME, ASSETS AND LIABILITIES (Tables) |
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Schedule of Other Income | Other income (loss), net, is comprised of the following:
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Schedule of Gain (Loss) on Settlement of Investments | Gain (loss) on settlement of investments, net is comprised of the following:
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Schedule of Other Assets and Liabilities | Other assets and liabilities are comprised of the following:
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Schedule of Accretion and Other Amortization | As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following:
|
SEGMENT REPORTING (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Financial Data | Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs | The following table presents activity related to the carrying value of New Residential’s investments in Excess MSRs:
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Summary of Direct Investments in Excess MSRs | The following is a summary of New Residential’s direct investments in Excess MSRs:
Changes in fair value recorded in other income are comprised of the following:
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Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investments in Excess MSRs | The table below summarizes the geographic distribution of the underlying residential mortgage loans of the direct investments in Excess MSRs:
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
New Residential’s investments in equity method investees changed during the three months ended March 31, 2016 as follows:
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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:
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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:
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INVESTMENTS IN SERVICER ADVANCES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments in Servicer Advances | The following is a summary of the investments in Servicer Advances, including the right to the basic fee component of the related MSRs:
The following is additional information regarding the Servicer Advances and related financing:
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Schedule of Interest Income Related to Investments in Servicer Advances | Interest income recognized by New Residential related to its investments in Servicer Advances was comprised of the following:
New Residential has determined that the Buyer is a VIE. The following table presents information on the assets and liabilities related to this consolidated VIE.
Others’ interests in the equity of the Buyer is computed as follows:
Others’ interests in the Buyer’s net income is computed as follows:
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INVESTMENTS IN REAL ESTATE SECURITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Real Estate Securities | The following is a summary of New Residential’s real estate securities, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement.
Activities related to New Residential’s investments in real estate securities were as follows:
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Summary of Real Estate Securities in an Unrealized Loss Position | The following table summarizes New Residential’s securities in an unrealized loss position as of March 31, 2016.
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following:
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Summary of Activity Related to Credit Losses on Debt Securities | The following table summarizes the activity related to credit losses on debt securities:
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Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS | The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS:
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Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible | The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments, excluding residual and interest-only securities:
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Summary of Changes in Accretable Yield for Securities | The following is a summary of the changes in accretable yield for these securities:
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INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO:
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Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans | The table below summarizes the geographic distribution of the residential mortgage loans:
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Schedule of Residential Mortgage Loan Transactions | The following table summarizes these transactions which occurred in 2016 (dollars in millions).
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Schedule of Past Due Information for Performing Loans | The following table provides past due information regarding New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses:
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Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCD Loans Held-for-Investment | Activities related to the carrying value of PCD loans held-for-investment were as follows:
Activities related to the carrying value of residential mortgage loans held-for-investment were as follows:
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Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans Held-for-Investment | Activities related to the valuation and loss provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows:
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Summary of Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Fair Value at Acquisition date for Loans Acquired During Period | PCD loans during the three months ended March 31, 2016. |
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Summary of Unpaid Principal Balance and Carrying Value for Loans Uncollectible | The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments:
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Summary of Changes in Accretable Yield | The following is a summary of the changes in accretable yield for these loans:
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Summary of Activities Related to the Carrying Value of Loans Held-for-sale | Activities related to the carrying value of loans held-for-sale were as follows:
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Schedule of Real Estate Owned | New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value.
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INVESTMENTS IN CONSUMER LOANS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments In Consumer Loans Equity Method Investees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Investment in Consumer Loan Companies | The following tables summarize the investment in Consumer Loans, held-for-investment held by New Residential:
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Schedule of Assets and Liabilities Related to Consolidated Variable Interest Entities | The following table presents information on the combined assets and liabilities related to these consolidated VIEs.
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DERIVATIVES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives | New Residential’s derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets as follows:
The following table summarizes notional amounts related to derivatives:
The following table summarizes gains (losses) recorded in relation to derivatives:
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DEBT OBLIGATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligations | Activities related to the carrying value of New Residential’s debt obligations were as follows:
The following table presents certain information regarding New Residential’s debt obligations:
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Schedule of Contractual Maturities of Debt Obligations | New Residential’s debt obligations as of March 31, 2016 had contractual maturities as follows:
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Schedule of Borrowing Capacity | The following table represents New Residential’s borrowing capacity as of March 31, 2016:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of March 31, 2016 were as follows:
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Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs | New Residential’s financial assets measured at fair value on a recurring basis using Level 3 inputs changed as follows:
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Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances | The following table summarizes certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees as of March 31, 2016:
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Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances | The following table summarizes certain information regarding the inputs used in valuing the Servicer Advances:
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Schedule of Securities Valuation Methodology and Results | As of March 31, 2016, New Residential’s securities valuation methodology and results are further detailed as follows:
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Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these loans as of March 31, 2016:
The following table summarizes the inputs used in valuing residential mortgage loans as of March 31, 2016:
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EQUITY AND EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity and Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Options | The following table summarizes activity in New Residential’s outstanding options:
As of March 31, 2016, New Residential’s outstanding options were summarized as follows:
The following table summarizes New Residential’s outstanding options as of March 31, 2016. The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended March 31, 2016 was $11.63 per share.
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TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions With Affiliates And Affiliated Entities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Affiliate Transactions | Due to affiliates is comprised of the following amounts:
Affiliate expenses and fees were comprised of:
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RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amounts Reclassified out of Accumulated Other Comprehensive Income into Net Income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income:
New Residential did not allocate any income tax expense or benefit to any component of other comprehensive income for any period presented, as no taxable subsidiary generated other comprehensive income. |
INCOME TAXES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following:
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ORGANIZATION AND BASIS OF PRESENTATION - Common Stock (Details) - shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Related Party Transaction [Line Items] | ||
Common stock, shares outstanding (in shares) | 230,471,202 | 230,471,202 |
Common stock options, outstanding | 12,380,107.000 | 12,380,107 |
Fortress [Member] | ||
Related Party Transaction [Line Items] | ||
Common stock, shares outstanding (in shares) | 2,400,000 | |
Common stock options, outstanding | 9,200,000 |
ORGANIZATION AND BASIS OF PRESENTATION - SpringCastle Transaction (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Gain on remeasurement of consumer loans investment | $ 71,250,000 | $ 0 | |||
New Residential's 4/6/2015 share price (in dollars per share) | $ 11.63 | $ 11.63 | |||
Consumer Loan Companies [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Gain on remeasurement of consumer loans investment | $ 71,300,000 | ||||
Total Consideration | $ 237,500,000 | ||||
New Residential Investment Corp. [Member] | SpringCastle [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Parent's ownership percentage | [1] | 53.50% | 53.50% | ||
New Residential Investment Corp. [Member] | Consumer Loan Companies [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Total Consideration | $ 237,500,000 | ||||
SpringCastle Sellers [Member] | SpringCastle Buyers [Member] | SpringCastle [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Ownership percentage by noncontrolling owners | 47.00% | 47.00% | |||
Cash Consideration | $ 100,462,500 | ||||
Other Payments to Acquire Businesses | $ 11,162,500 | ||||
Business Acquisition, Term for Payment to Escrow Account | 120 days | ||||
Business Acquisition, Term for Funds Held in Escrow | 5 years | ||||
Total Consideration | $ 111,625,000 | ||||
SpringCastle Sellers [Member] | NRZ SpringCastle Buyers [Member] | SpringCastle [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Business Acquisition, Percentage of Total Consideration Paid | 50.00% | 50.00% | |||
Percentage of voting interests acquired | 23.50% | 23.50% | |||
Voting interests acquired as a percentage of gross voting interests available for sale | 50.00% | 50.00% | |||
Blackstone SpringCastle Buyers [Member] | SpringCastle [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Ownership percentage by noncontrolling owners | 46.50% | 46.50% | |||
Voting interests acquired as a percentage of gross voting interests available for sale | 50.00% | 50.00% | |||
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ORGANIZATION AND BASIS OF PRESENTATION - Summary of Preliminary Purchase Price Allocation (Details) - Consumer Loan Companies [Member] $ in Millions |
Mar. 31, 2016
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Total Consideration | $ 237.5 |
Assets | |
Consumer loans, held-for-investment | 1,970.6 |
Cash and cash equivalents | 0.3 |
Restricted cash | 74.6 |
Total Assets Acquired | 2,045.5 |
Liabilities | |
Notes and bonds payable | 1,803.2 |
Accrued expenses and other liabilities | 4.8 |
Total Liabilities Assumed | 1,808.0 |
Net Assets | $ 237.5 |
ORGANIZATION AND BASIS OF PRESENTATION - Summary of Unaudited Pro Forma Combined Interest Income and Income (Loss) Before Income Taxes (Details) - Consumer Loan Companies [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Acquisition related costs | $ 1,500 | |
Pro Forma | ||
Interest Income | 238,464 | $ 148,263 |
Income Before Income Taxes | 55,294 | 136,837 |
Noncontrolling Interests in Income of Consolidated Subsidiaries | $ 17,834 | $ 24,040 |
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Other Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Other income (loss), net | ||
Unrealized gain (loss) on derivative instruments | $ (22,303) | $ (7,030) |
Unrealized gain (loss) on other ABS | 268 | (290) |
Gain (loss) on transfer of loans to REO | 2,483 | (544) |
Gain on Excess MSR recapture agreements | 732 | 730 |
Other income (loss) | 4,325 | (1,276) |
Total other income (loss), net | $ (14,495) | $ (8,410) |
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Gain (Loss) on Settlement of Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Gain on Settlement of Investments, Net | ||
Gain (loss) on sale of real estate securities, net | $ 16,133 | $ 24,697 |
Gain (loss) on sale of residential mortgage loans, net | 109 | 20,830 |
Gain (loss) on settlement of derivatives | (32,633) | (22,590) |
Gain (loss) on liquidated residential mortgage loans | 0 | 400 |
Gain (loss) on sale of REO | 151 | (5,636) |
Other gains (losses) | 1,740 | (2,934) |
Gain (Loss) On Settlement Of Investment, Net | $ (14,500) | $ 14,767 |
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Other Assets and Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Other Assets | ||||
Margin receivable, net | $ 63,273 | $ 54,459 | ||
Other receivables | 16,305 | 10,893 | ||
Principal paydown receivable | 822 | 795 | ||
Receivable from government agency | 75,514 | 68,833 | ||
Call rights | 414 | 414 | ||
Derivative assets | 1,720 | 2,689 | ||
Interest receivable | 38,431 | 36,963 | ||
Servicer advances, at fair value(A) | [1] | 7,001,004 | 7,426,794 | |
Other assets | 11,895 | 14,675 | ||
Other Assets | 253,026 | 239,446 | ||
Accrued Expenses and Other Liabilities | ||||
Interest payable | 19,988 | 18,268 | ||
Accounts payable | 37,826 | 18,650 | ||
Derivative liabilities | 34,942 | 13,443 | ||
Current taxes payable | 2,180 | 1,573 | ||
Other liabilities | 10,615 | 6,112 | ||
Accrued Expenses and Other Liabilities | 105,551 | 58,046 | ||
Ginnie Mae [Member] | ||||
Other Assets | ||||
Servicer advances, at fair value(A) | $ 44,652 | $ 49,725 | ||
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OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Accretion and Other Amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|||
Accretion and other amortization: | ||||
Accretion of servicer advance interest income | $ 78,637 | $ 42,349 | ||
Accretion of excess mortgage servicing rights income | 42,968 | 15,037 | ||
Accretion of net discount on securities and loans(A) | [1] | 37,128 | 5,399 | |
Amortization of deferred financing costs | (4,785) | (1,440) | ||
Amortization of discount on notes and bonds payable | (278) | 0 | ||
Accretion and other amortization | $ 153,670 | $ 61,345 | ||
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SEGMENT REPORTING - Summary of Segment Financial Data (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|||
Segment Reporting Information [Line Items] | |||||
Interest income | $ 190,036 | $ 84,373 | |||
Interest expense | 81,228 | 33,979 | |||
Net interest income (expense) | 108,808 | 50,394 | |||
Impairment | 9,999 | 2,048 | |||
Other income | 31,922 | 12,295 | |||
Operating expenses | 25,016 | 22,270 | |||
Income (Loss) Before Income Taxes | 105,715 | 38,371 | |||
Income tax expense (benefit) | (10,223) | (3,427) | |||
Net Income (Loss) | 115,938 | 41,798 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,202 | 5,823 | |||
Net income (loss) attributable to common stockholders | 111,736 | 35,975 | |||
Investments | 15,184,560 | ||||
Cash and cash equivalents | 258,622 | ||||
Restricted cash | 170,364 | $ 94,702 | |||
Other assets | 1,958,231 | ||||
Total assets | 17,571,777 | 15,192,722 | |||
Debt | [1] | 12,844,363 | 11,292,622 | ||
Other liabilities | 1,648,418 | ||||
Total liabilities | 14,492,781 | 12,206,142 | |||
Total equity | 3,078,996 | 2,986,580 | |||
Noncontrolling interests in equity of consolidated subsidiaries | 294,192 | 190,647 | |||
Total New Residential stockholders’ equity | 2,784,804 | $ 2,795,933 | |||
Investments in equity method investees | 209,901 | ||||
Operating Segments [Member] | Excess MSRs [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 42,968 | 15,037 | |||
Interest expense | 2,934 | 769 | |||
Net interest income (expense) | 40,034 | 14,268 | |||
Impairment | 0 | 0 | |||
Other income | 11,693 | 3,890 | |||
Operating expenses | 232 | 88 | |||
Income (Loss) Before Income Taxes | 51,495 | 18,070 | |||
Income tax expense (benefit) | 0 | 0 | |||
Net Income (Loss) | 51,495 | 18,070 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | |||
Net income (loss) attributable to common stockholders | 51,495 | 18,070 | |||
Investments | 1,756,905 | ||||
Cash and cash equivalents | 919 | ||||
Restricted cash | 1,235 | ||||
Other assets | 14 | ||||
Total assets | 1,759,073 | ||||
Debt | 181,602 | ||||
Other liabilities | 437 | ||||
Total liabilities | 182,039 | ||||
Total equity | 1,577,034 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||
Total New Residential stockholders’ equity | 1,577,034 | ||||
Investments in equity method investees | 209,901 | ||||
Operating Segments [Member] | Servicer Advances [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 80,967 | 42,349 | |||
Interest expense | 63,075 | 23,637 | |||
Net interest income (expense) | 17,892 | 18,712 | |||
Impairment | 0 | 0 | |||
Other income | (27,391) | (10,727) | |||
Operating expenses | 994 | 575 | |||
Income (Loss) Before Income Taxes | (10,493) | 7,410 | |||
Income tax expense (benefit) | (10,002) | (3,240) | |||
Net Income (Loss) | (491) | 10,650 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,202 | 5,823 | |||
Net income (loss) attributable to common stockholders | (4,693) | 4,827 | |||
Investments | 7,432,012 | ||||
Cash and cash equivalents | 198,116 | ||||
Restricted cash | 94,525 | ||||
Other assets | 207,255 | ||||
Total assets | 7,931,908 | ||||
Debt | 7,372,351 | ||||
Other liabilities | 24,625 | ||||
Total liabilities | 7,396,976 | ||||
Total equity | 534,932 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 183,754 | ||||
Total New Residential stockholders’ equity | 351,178 | ||||
Investments in equity method investees | 0 | ||||
Operating Segments [Member] | Real Estate Securities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 45,913 | 14,263 | |||
Interest expense | 7,484 | 3,480 | |||
Net interest income (expense) | 38,429 | 10,783 | |||
Impairment | 3,254 | 1,071 | |||
Other income | (36,461) | (5,090) | |||
Operating expenses | 461 | (102) | |||
Income (Loss) Before Income Taxes | (1,747) | 4,724 | |||
Income tax expense (benefit) | 0 | 0 | |||
Net Income (Loss) | (1,747) | 4,724 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | |||
Net income (loss) attributable to common stockholders | (1,747) | 4,724 | |||
Investments | 3,010,782 | ||||
Cash and cash equivalents | 670 | ||||
Restricted cash | 0 | ||||
Other assets | 1,579,924 | ||||
Total assets | 4,591,376 | ||||
Debt | 2,616,625 | ||||
Other liabilities | 1,469,071 | ||||
Total liabilities | 4,085,696 | ||||
Total equity | 505,680 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||
Total New Residential stockholders’ equity | 505,680 | ||||
Investments in equity method investees | 0 | ||||
Operating Segments [Member] | Real Estate Loans [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 19,493 | 12,724 | |||
Interest expense | 7,390 | 6,093 | |||
Net interest income (expense) | 12,103 | 6,631 | |||
Impairment | 6,745 | 977 | |||
Other income | 2,873 | 13,775 | |||
Operating expenses | 4,334 | 6,104 | |||
Income (Loss) Before Income Taxes | 3,897 | 13,325 | |||
Income tax expense (benefit) | (221) | (187) | |||
Net Income (Loss) | 4,118 | 13,512 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | |||
Net income (loss) attributable to common stockholders | 4,118 | 13,512 | |||
Investments | 1,014,296 | ||||
Cash and cash equivalents | 11,753 | ||||
Restricted cash | 0 | ||||
Other assets | 121,524 | ||||
Total assets | 1,147,573 | ||||
Debt | 836,370 | ||||
Other liabilities | 21,233 | ||||
Total liabilities | 857,603 | ||||
Total equity | 289,970 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||
Total New Residential stockholders’ equity | 289,970 | ||||
Investments in equity method investees | 0 | ||||
Operating Segments [Member] | Consumer Loans [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 0 | |||
Interest expense | 345 | 0 | |||
Net interest income (expense) | (344) | 0 | |||
Impairment | 0 | 0 | |||
Other income | 81,193 | 10,447 | |||
Operating expenses | 1,604 | 57 | |||
Income (Loss) Before Income Taxes | 79,245 | 10,390 | |||
Income tax expense (benefit) | 0 | 0 | |||
Net Income (Loss) | 79,245 | 10,390 | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | |||
Net income (loss) attributable to common stockholders | 79,245 | 10,390 | |||
Investments | 1,970,565 | ||||
Cash and cash equivalents | 1,670 | ||||
Restricted cash | 74,604 | ||||
Other assets | 2,050 | ||||
Total assets | 2,048,889 | ||||
Debt | 1,837,415 | ||||
Other liabilities | 12,250 | ||||
Total liabilities | 1,849,665 | ||||
Total equity | 199,224 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 110,438 | ||||
Total New Residential stockholders’ equity | 88,786 | ||||
Investments in equity method investees | 0 | ||||
Operating Segments [Member] | Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 694 | 0 | |||
Interest expense | 0 | 0 | |||
Net interest income (expense) | 694 | 0 | |||
Impairment | 0 | 0 | |||
Other income | 15 | 0 | |||
Operating expenses | 17,391 | 15,548 | |||
Income (Loss) Before Income Taxes | (16,682) | (15,548) | |||
Income tax expense (benefit) | 0 | 0 | |||
Net Income (Loss) | (16,682) | (15,548) | |||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | |||
Net income (loss) attributable to common stockholders | (16,682) | $ (15,548) | |||
Investments | 0 | ||||
Cash and cash equivalents | 45,494 | ||||
Restricted cash | 0 | ||||
Other assets | 47,464 | ||||
Total assets | 92,958 | ||||
Debt | 0 | ||||
Other liabilities | 120,802 | ||||
Total liabilities | 120,802 | ||||
Total equity | (27,844) | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||
Total New Residential stockholders’ equity | (27,844) | ||||
Investments in equity method investees | $ 0 | ||||
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) - Excess MSRs [Member] $ in Thousands |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
| ||||||||
Carrying Value of Investments in Excess MSRs | ||||||||
Beginning balance | $ 1,581,517 | [1] | ||||||
Purchases | 0 | |||||||
Interest income | 42,968 | |||||||
Other income | 732 | |||||||
Proceeds from repayments | (86,139) | |||||||
Change in fair value | 7,926 | |||||||
Ending balance | 1,547,004 | [1] | ||||||
Nationstar [Member] | ||||||||
Carrying Value of Investments in Excess MSRs | ||||||||
Beginning balance | 698,304 | |||||||
Purchases | 0 | |||||||
Interest income | 19,435 | |||||||
Other income | 732 | |||||||
Proceeds from repayments | (37,676) | |||||||
Change in fair value | 3,527 | |||||||
Ending balance | 684,322 | |||||||
SLS [Member] | ||||||||
Carrying Value of Investments in Excess MSRs | ||||||||
Beginning balance | 5,307 | [2] | ||||||
Purchases | 0 | [2] | ||||||
Interest income | (7) | [2] | ||||||
Other income | 0 | [2] | ||||||
Proceeds from repayments | (272) | [2] | ||||||
Change in fair value | (57) | |||||||
Ending balance | 4,971 | [2] | ||||||
Ocwen [Member] | ||||||||
Carrying Value of Investments in Excess MSRs | ||||||||
Beginning balance | 877,906 | [3] | ||||||
Purchases | 0 | [3] | ||||||
Interest income | 23,540 | [3] | ||||||
Other income | 0 | [3] | ||||||
Proceeds from repayments | (48,191) | [3] | ||||||
Change in fair value | 4,456 | |||||||
Ending balance | $ 857,711 | [3] | ||||||
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jan. 04, 2016 |
Mar. 31, 2016 |
|
Excess MSRs Investees [Member] | ||
Investment [Line Items] | ||
UPB of Underlying Mortgages | $ 70,087,028 | |
Excess MSRs Investees [Member] | MSRs [Member] | ||
Investment [Line Items] | ||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | |
Excess MSRs [Member] | Fannie Mae [Member] | ||
Investment [Line Items] | ||
Purchase of servicer advance investments | $ 2,000 | |
Percentage of Excess MSRs acquired | 66.70% | |
UPB of Underlying Mortgages | $ 17,200,000 | |
Excess MSRs [Member] | Fannie Mae [Member] | Nationstar [Member] | ||
Investment [Line Items] | ||
Percentage of Excess MSRs acquired | 33.30% |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Direct Investments in Excess MSRs (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
||||||||||
Investment [Line Items] | ||||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | |||||||||||
Change in fair value of investments in excess mortgage servicing rights | $ 7,926 | $ (1,761) | ||||||||||
Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Change in fair value of investments in excess mortgage servicing rights | 5,697 | (1,976) | ||||||||||
Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Change in fair value of investments in excess mortgage servicing rights | 2,229 | $ 215 | ||||||||||
Excess MSRs [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | $ 317,540,275 | |||||||||||
Weighted Average Life (Years) | [1] | 6 years 3 months 18 days | ||||||||||
Amortized Cost Basis | [2] | $ 1,390,908 | ||||||||||
Carrying Value | [3] | 1,547,004 | $ 1,581,517 | |||||||||
Excess MSRs [Member] | Agency [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | $ 90,119,338 | |||||||||||
Weighted Average Life (Years) | [1] | 6 years 6 months | ||||||||||
Amortized Cost Basis | [2] | $ 359,856 | ||||||||||
Carrying Value | [3] | 425,900 | 437,201 | |||||||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | $ 90,119,338 | |||||||||||
Weighted Average Life (Years) | [1] | 5 years 10 months 24 days | ||||||||||
Amortized Cost Basis | [2] | $ 325,508 | ||||||||||
Carrying Value | [3] | 367,004 | 378,083 | |||||||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | $ 0 | |||||||||||
Weighted Average Life (Years) | [1] | 12 years 2 months 12 days | ||||||||||
Amortized Cost Basis | [2] | $ 34,348 | ||||||||||
Carrying Value | [3] | 58,896 | 59,118 | |||||||||
Excess MSRs [Member] | Non-Agency [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | [4] | $ 227,420,937 | ||||||||||
Weighted Average Life (Years) | [1],[4] | 6 years 2 months 12 days | ||||||||||
Amortized Cost Basis | [2],[4] | $ 1,031,052 | ||||||||||
Carrying Value | [3],[4] | 1,121,104 | 1,144,316 | |||||||||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | [4] | $ 91,277,078 | ||||||||||
Weighted Average Life (Years) | [1],[4] | 5 years 3 months 18 days | ||||||||||
Amortized Cost Basis | [2],[4] | $ 205,633 | ||||||||||
Carrying Value | [3],[4] | 247,957 | 250,662 | |||||||||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | [4] | $ 0 | ||||||||||
Weighted Average Life (Years) | [1],[4] | 12 years 3 months 18 days | ||||||||||
Amortized Cost Basis | [2],[4] | $ 13,641 | ||||||||||
Carrying Value | [3],[4] | 15,436 | 15,748 | |||||||||
Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
UPB of Underlying Mortgages | [4] | $ 136,143,859 | ||||||||||
Interest in Excess MSR | [4] | 100.00% | ||||||||||
Weighted Average Life (Years) | [1],[4] | 6 years 3 months 18 days | ||||||||||
Amortized Cost Basis | [2],[4] | $ 811,778 | ||||||||||
Carrying Value | [3],[4] | $ 857,711 | 877,906 | |||||||||
Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 32.50% | |||||||||||
Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 32.50% | |||||||||||
Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 33.30% | ||||||||||
Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 33.30% | ||||||||||
Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 66.70% | |||||||||||
Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 66.70% | |||||||||||
Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 80.00% | ||||||||||
Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 80.00% | ||||||||||
Fortress [Member] | Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 0.00% | |||||||||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 0.00% | |||||||||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 40.00% | |||||||||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 40.00% | |||||||||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 50.00% | ||||||||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 50.00% | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Carrying Value | $ 684,322 | $ 698,304 | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 20.00% | |||||||||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 20.00% | |||||||||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 0.00% | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 35.00% | |||||||||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | 35.00% | |||||||||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 33.30% | ||||||||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Interest in Excess MSR | [4] | 33.30% | ||||||||||
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investments in Excess MSRs (Details) - Mortgage Loans [Member] - MSRs [Member] |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 100.00% | 100.00% |
California [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 26.70% | 26.70% |
Florida [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 8.90% | 8.90% |
New York [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 7.90% | 7.80% |
Texas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.30% | 4.30% |
New Jersey [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.10% | 4.10% |
Maryland [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.80% | 3.80% |
Illinois [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.40% | 3.40% |
Virginia [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.10% | 3.10% |
Washington [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.70% | 2.70% |
Massachusetts [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.70% | 2.70% |
Other U.S. [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 32.40% | 32.50% |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees (Details) - Excess MSRs Investees [Member] - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Schedule of Equity Method Investments [Line Items] | |||
Excess MSR assets | $ 404,863 | $ 421,999 | |
Other assets | 14,939 | 12,442 | |
Other liabilities | 0 | 0 | |
Equity | 419,802 | 434,441 | |
New Residential’s investment | $ 209,901 | $ 217,221 | |
New Residential’s ownership | 50.00% | 50.00012% | |
Interest income | $ 8,081 | $ 11,701 | |
Other income (loss) | (2,014) | (1,835) | |
Expenses | (23) | (25) | |
Net income | $ 6,044 | $ 9,841 |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees - Roll Forward (Details) - Recurring Basis [Member] $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Schedule of Equity Method Investments [Line Items] | |
Beginning balance | $ 217,221 |
Contributions to equity method investees | 0 |
Distributions of earnings from equity method investees | (9,754) |
Distributions of capital from equity method investees | (588) |
Change in fair value of investments in equity method investees | 3,022 |
Ending balance | $ 209,901 |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Excess MSR Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | ||||||||||
Excess MSRs Investees [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Unpaid Principal Balance | $ 70,087,028 | ||||||||||
New Residential Interest in Investees | 50.00% | 50.00012% | |||||||||
Amortized Cost Basis | [1] | $ 306,107 | |||||||||
Carrying Value | [2] | $ 404,863 | |||||||||
Excess MSRs Investees [Member] | Agency [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Weighted Average Life (Years) | [3] | 6 years 6 months 26 days | |||||||||
Excess MSRs Investees [Member] | Agency [Member] | Original and Recaptured Pools [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Unpaid Principal Balance | $ 70,087,028 | ||||||||||
Investee Interest in Excess MSR | [4] | 66.70% | |||||||||
New Residential Interest in Investees | 50.00% | ||||||||||
Amortized Cost Basis | [1] | $ 264,544 | |||||||||
Carrying Value | [2] | $ 336,113 | |||||||||
Weighted Average Life (Years) | [3] | 5 years 8 months 30 days | |||||||||
Excess MSRs Investees [Member] | Agency [Member] | Recapture Agreements [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Unpaid Principal Balance | $ 0 | ||||||||||
Investee Interest in Excess MSR | [4] | 66.70% | |||||||||
New Residential Interest in Investees | 50.00% | ||||||||||
Amortized Cost Basis | [1] | $ 41,563 | |||||||||
Carrying Value | [2] | $ 68,750 | |||||||||
Weighted Average Life (Years) | [3] | 11 years 9 months 21 days | |||||||||
|
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Excess MSR Investments made through Equity Method Investees (Footnote) (Details) - Excess MSRs Investees [Member] |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
New Residential Interest in Investees | 50.00% | 50.00012% |
MSRs [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
New Residential Interest in Investees | 50.00% |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Excess MSRs Investees [Member] | MSRs [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Weighted average discount rate, used to value investments in excess MSRs | 9.80% |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Excess MSR Investments made through Equity Method Investees (Details) - Mortgage Loans [Member] - Excess MSRs Investees [Member] |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 100.00% | 100.00% |
California [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 12.80% | 12.90% |
Florida [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 7.30% | 7.40% |
Texas [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 6.10% | 6.10% |
New York [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 5.90% | 5.80% |
Georgia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 5.70% | 5.70% |
New Jersey [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.30% | 4.30% |
Illinois [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.00% | 4.00% |
Maryland [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.20% | 3.20% |
Virginia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.20% | 3.20% |
Pennsylvania [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.10% | 3.10% |
Other U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 44.40% | 44.30% |
INVESTMENTS IN SERVICER ADVANCES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Investment [Line Items] | |||
Call rights | $ 414 | $ 414 | |
Advance Purchaser LLC [Member] | |||
Investment [Line Items] | |||
Capital distributed to third-party co-investors | 256,900 | ||
Capital distributed to New Residential | $ 206,200 | ||
Ocwen [Member] | |||
Investment [Line Items] | |||
Servicing fee basis points | 0.053% | ||
Variable interest rate spread | 2.75% | ||
Nationstar [Member] | |||
Investment [Line Items] | |||
Servicer basic fee, percent | 9.30% | ||
Performance fee, percent (up to) | 100.00% | ||
SLS [Member] | |||
Investment [Line Items] | |||
Servicing fee basis points | 0.1075% | ||
SLS [Member] | Excess MSRs [Member] | |||
Investment [Line Items] | |||
Percentage of Excess MSRs acquired | 50.00% | ||
Fortress [Member] | Excess MSRs [Member] | |||
Investment [Line Items] | |||
Percentage of additional Excess MSRs acquired | 50.00% | ||
Servicer Advance Joint Venture [Member] | |||
Investment [Line Items] | |||
New Residential’s ownership | 44.50% | ||
Funded capital commitments | $ 312,700 | ||
Servicer Advance Joint Venture [Member] | Noncontrolling Third-party Investors [Member] | |||
Investment [Line Items] | |||
Funded capital commitments | $ 389,600 |
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances (Details) - Servicer Advance Joint Venture [Member] - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||
Amortized Cost Basis | [1] | $ 7,005,501 | $ 7,400,068 | |||||||
Carrying Value | [1],[2] | $ 7,001,004 | $ 7,426,794 | |||||||
Weighted Average Discount Rate | [1] | 5.50% | 5.60% | |||||||
Weighted Average Yield | [1] | 5.30% | 5.50% | |||||||
Weighted Average Life (Years) | [1],[3] | 4 years 5 months 21 days | 4 years 4 months 27 days | |||||||
Change in Fair Value Recorded in Other Income for Year then Ended | $ (31,224) | $ (7,669) | ||||||||
|
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances (Footnote) (Details) - Servicer Advance Joint Venture [Member] - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments in and Advances to Affiliates [Line Items] | ||
Asset-backed securities, face amount, collateralized by servicer advances | $ 431.0 | $ 431.0 |
Asset-backed securities, carrying value, collateralized by servicer advances | $ 431.0 | $ 430.3 |
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Outstanding Servicer Advances | [1] | $ 7,001,004 | $ 7,426,794 | ||||||||||
Face Amount of Notes Payable | 12,863,125 | ||||||||||||
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
UPB of Underlying Mortgages | [2] | 212,135,668 | 220,256,804 | ||||||||||
Outstanding Servicer Advances | [2] | $ 7,203,924 | $ 7,578,110 | ||||||||||
Servicer Advances to UPB of Underlying Residential Mortgage Loans | [2] | 3.40% | 3.40% | ||||||||||
Face Amount of Notes Payable | [2] | $ 6,880,413 | $ 7,058,094 | ||||||||||
Gross Loan-to-Value | [2],[3] | 93.90% | 91.20% | ||||||||||
Net Loan-to-Value | [2],[3],[4] | 92.80% | 90.20% | ||||||||||
Gross Cost of Funds | [2],[5] | 3.40% | 3.40% | ||||||||||
Net Cost of Funds | [2],[5] | 2.70% | 2.60% | ||||||||||
|
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Additional Information (Footnote) (Details) - Servicer Advance Joint Venture [Member] $ in Millions |
Mar. 31, 2016
USD ($)
|
---|---|
Non-Agency Bonds [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Retained non-agency bonds, face amount | $ 175.8 |
Servicer Advances [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Gross LTV, if sold | 96.30% |
Net LTV, if sold | 95.20% |
Gross LTV, including deferred servicing fees | 89.40% |
Net LTV, including deferred servicing fees | 88.40% |
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Investment [Line Items] | |||||||
Total | [1] | $ 7,001,004 | $ 7,426,794 | ||||
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||||||
Investment [Line Items] | |||||||
Principal and interest advances | 2,016,073 | 2,229,468 | |||||
Escrow advances (taxes and insurance advances) | 3,504,808 | 3,687,559 | |||||
Foreclosure advances | 1,683,043 | 1,661,083 | |||||
Total | [2] | $ 7,203,924 | $ 7,578,110 | ||||
|
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances (Details) - Servicer Advance Investments [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Investment [Line Items] | ||
Interest income, gross of amounts attributable to servicer compensation | $ 227,288 | $ 63,357 |
Amounts attributable to base servicer compensation | (29,509) | (6,601) |
Amounts attributable to incentive servicer compensation | (119,142) | (14,407) |
Interest income from investments in Servicer Advances | $ 78,637 | $ 42,349 |
INVESTMENTS IN SERVICER ADVANCES - Summary of Information on the Assets and Liabilities related to Consolidated VIE (Details) - VIE, consolidated [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Assets | |||||
Servicer advance investments, at fair value | $ 2,263,311 | $ 2,344,245 | |||
Cash and cash equivalents | 31,711 | 40,761 | |||
All other assets | 25,711 | 25,092 | |||
Total assets | [1] | 2,320,733 | 2,410,098 | ||
Liabilities | |||||
Notes and bonds payable | 1,982,944 | 2,060,347 | |||
All other liabilities | 6,574 | 6,111 | |||
Total liabilities | [1] | $ 1,989,518 | $ 2,066,458 | ||
|
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|||
Servicer Advance Joint Venture [Member] | |||||
Investment [Line Items] | |||||
New Residential’s investment | $ 331,215 | $ 343,640 | |||
Others’ ownership interest | 44.50% | ||||
Net income in joint venture | $ 7,575 | $ 10,496 | |||
Others [Member] | |||||
Investment [Line Items] | |||||
New Residential’s investment | $ 183,754 | $ 190,647 | |||
Others’ ownership interest | 55.50% | 55.50% | |||
Net income in joint venture | $ 4,202 | $ 5,823 | |||
Others' ownership interest as a percent of total | [1] | 55.50% | 55.50% | ||
|
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Footnote) (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Servicer Advance Joint Venture [Member] | ||
Investment [Line Items] | ||
Average ownership percentage | 44.50% | 44.50% |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands |
3 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
security
|
Mar. 31, 2016
USD ($)
security
|
Dec. 31, 2015
USD ($)
|
||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Outstanding Face Amount | $ 5,766,333 | $ 5,766,333 | ||||||||||||||||||||||
Amortized Cost Basis | 3,453,043 | 3,453,043 | ||||||||||||||||||||||
Carrying Value | 3,441,790 | $ 3,441,790 | $ 2,501,881 | |||||||||||||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | |||||||||||||||||||||||
Agency RMBS [Member] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Face Amount of Securities Purchased | 1,300,000 | $ 2,216,700 | ||||||||||||||||||||||
Purchase Price of Securities Purchased | 1,300,000 | 2,300,300 | ||||||||||||||||||||||
Face amount of securities sold | 1,400,000 | 1,632,600 | ||||||||||||||||||||||
Amortized Cost of Securities Sold | 1,673,700 | |||||||||||||||||||||||
Sale Price of Securities Sold | 1,500,000 | 1,698,300 | ||||||||||||||||||||||
Gain (Loss) on Sale of Securities Sold | 24,600 | |||||||||||||||||||||||
Outstanding Face Amount | [1],[2] | 1,450,299 | 1,450,299 | |||||||||||||||||||||
Amortized Cost Basis | [1],[2] | 1,524,194 | 1,524,194 | |||||||||||||||||||||
Gross Unrealized Gains | [1],[2] | 531 | 531 | |||||||||||||||||||||
Gross Unrealized Losses | [1],[2] | (1,522) | (1,522) | |||||||||||||||||||||
Carrying Value | [1],[2] | $ 1,523,203 | [3] | $ 1,523,203 | [3] | 917,598 | ||||||||||||||||||
Number of Securities | security | [1],[2] | 39 | 39 | |||||||||||||||||||||
Weighted Average Rating | [1],[2],[4] | AAA | ||||||||||||||||||||||
Weighted Average Coupon | [1],[2],[5] | 3.39% | 3.39% | |||||||||||||||||||||
Weighted Average Yield | [1],[2] | 1.95% | 1.95% | |||||||||||||||||||||
Weighted Average Life (Years) | [1],[2],[6] | 6 years 1 month 22 days | ||||||||||||||||||||||
Non-Agency RMBS [Member] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Face Amount of Securities Purchased | $ 200,000 | $ 1,032,100 | ||||||||||||||||||||||
Purchase Price of Securities Purchased | 100,000 | 443,100 | ||||||||||||||||||||||
Face amount of securities sold | 59,900 | |||||||||||||||||||||||
Amortized Cost of Securities Sold | 51,900 | |||||||||||||||||||||||
Sale Price of Securities Sold | 43,400 | |||||||||||||||||||||||
Gain (Loss) on Sale of Securities Sold | (8,500) | |||||||||||||||||||||||
Outstanding Face Amount | [7],[8] | 4,316,034 | 4,316,034 | |||||||||||||||||||||
Amortized Cost Basis | [7],[8] | 1,928,849 | 1,928,849 | |||||||||||||||||||||
Gross Unrealized Gains | [8] | 21,699 | 21,699 | |||||||||||||||||||||
Gross Unrealized Losses | [8] | (31,961) | (31,961) | |||||||||||||||||||||
Carrying Value | [8] | $ 1,918,587 | [3] | $ 1,918,587 | [3] | 1,584,283 | ||||||||||||||||||
Number of Securities | security | [8] | 280 | 280 | |||||||||||||||||||||
Weighted Average Rating | [4],[8] | BB- | ||||||||||||||||||||||
Weighted Average Coupon | [5],[8] | 1.70% | 1.70% | |||||||||||||||||||||
Weighted Average Yield | [8] | 5.23% | 5.23% | |||||||||||||||||||||
Weighted Average Life (Years) | [6],[8] | 7 years 6 months 4 days | ||||||||||||||||||||||
Weighted Average Principal Subordination | [8],[9] | 11.20% | 11.20% | |||||||||||||||||||||
Investments in Real Estate Securities [Member] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Outstanding Face Amount | $ 5,766,333 | $ 5,766,333 | ||||||||||||||||||||||
Amortized Cost Basis | 3,453,043 | 3,453,043 | ||||||||||||||||||||||
Gross Unrealized Gains | 22,230 | 22,230 | ||||||||||||||||||||||
Gross Unrealized Losses | (33,483) | (33,483) | ||||||||||||||||||||||
Carrying Value | $ 3,441,790 | [3] | $ 3,441,790 | [3] | $ 2,501,881 | |||||||||||||||||||
Number of Securities | security | 319.000 | 319.000 | ||||||||||||||||||||||
Weighted Average Rating | [4] | BBB+ | ||||||||||||||||||||||
Weighted Average Coupon | [5] | 2.42% | 2.42% | |||||||||||||||||||||
Weighted Average Yield | 3.78% | 3.78% | ||||||||||||||||||||||
Weighted Average Life (Years) | [6] | 6 years 10 months 27 days | ||||||||||||||||||||||
Other ABS [Member] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Outstanding Face Amount | $ 1,723,191 | $ 1,723,191 | ||||||||||||||||||||||
Amortized Cost Basis | 102,192 | 102,192 | ||||||||||||||||||||||
Gross Unrealized Gains | 6,028 | 6,028 | ||||||||||||||||||||||
Gross Unrealized Losses | (4,412) | (4,412) | ||||||||||||||||||||||
Carrying Value | $ 103,808 | $ 103,808 | ||||||||||||||||||||||
Number of Securities | security | 16 | 16 | ||||||||||||||||||||||
Weighted Average Rating | A+ | |||||||||||||||||||||||
Weighted Average Coupon | 2.21% | 2.21% | ||||||||||||||||||||||
Weighted Average Yield | 6.21% | 6.21% | ||||||||||||||||||||||
Weighted Average Life (Years) | 5 years 1 month 8 days | |||||||||||||||||||||||
Servicer Advances [Member] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||
Outstanding Face Amount | $ 431,000 | $ 431,000 | ||||||||||||||||||||||
Amortized Cost Basis | 430,754 | 430,754 | ||||||||||||||||||||||
Gross Unrealized Gains | 306 | 306 | ||||||||||||||||||||||
Gross Unrealized Losses | (103) | (103) | ||||||||||||||||||||||
Carrying Value | $ 430,957 | $ 430,957 | ||||||||||||||||||||||
Number of Securities | security | 5 | 5 | ||||||||||||||||||||||
Weighted Average Rating | AA+ | |||||||||||||||||||||||
Weighted Average Coupon | 2.69% | 2.69% | ||||||||||||||||||||||
Weighted Average Yield | 2.44% | 2.44% | ||||||||||||||||||||||
Weighted Average Life (Years) | 9 months 1 day | |||||||||||||||||||||||
|
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Footnote) (Details) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
bond
|
Mar. 31, 2016
USD ($)
bond
|
|||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Number of bonds which New Residential was unable to obtain rating information | bond | 84 | 84 | ||||||||||
Investments | $ 15,184,560 | $ 15,184,560 | ||||||||||
Outstanding Face Amount | 5,766,333 | 5,766,333 | ||||||||||
Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Face amount of securities purchased | 1,300,000 | 2,216,700 | ||||||||||
Purchase Price of Securities Purchased | 1,300,000 | 2,300,300 | ||||||||||
Outstanding Face Amount | 1,450,299 | [1],[2] | 1,450,299 | [1],[2] | ||||||||
Non-Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Face amount of securities purchased | 200,000 | 1,032,100 | ||||||||||
Purchase Price of Securities Purchased | 100,000 | 443,100 | ||||||||||
Outstanding Face Amount | 4,316,034 | [3],[4] | 4,316,034 | [3],[4] | ||||||||
Other ABS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Outstanding Face Amount | 1,723,191 | 1,723,191 | ||||||||||
Fixed Rate Residential Mortgage [Member] | Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Outstanding Face Amount | 1,300,000 | 1,300,000 | ||||||||||
Fixed Rate Residential Mortgage [Member] | Non-Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Outstanding Face Amount | 2,400,000 | 2,400,000 | ||||||||||
Residual and interest - only notional amount | 1,800,000 | 1,800,000 | ||||||||||
Floating Rate Residential Mortgage [Member] | Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Outstanding Face Amount | 175,700 | 175,700 | ||||||||||
Floating Rate Residential Mortgage [Member] | Non-Agency RMBS [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Outstanding Face Amount | 1,879,300 | 1,879,300 | ||||||||||
Residual and interest - only notional amount | 229,900 | 229,900 | ||||||||||
Bonds [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investments | 341,600 | 341,600 | ||||||||||
Residual Bonds [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investments | 220,500 | 220,500 | ||||||||||
Non-Agency Bonds [Member] | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investments | $ 0 | $ 0 | ||||||||||
|
INVESTMENTS IN REAL ESTATE SECURITIES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment | $ 3,254 | $ 1,071 | |
Real estate securities acquired during the period with credit quality deterioration, face amount | 626,200 | ||
Real estate securities acquired during the period with credit quality deterioration, expected cash flows | 425,300 | ||
Real estate securities acquired during the period with credit quality deterioration, fair value | 341,700 | ||
Non-Agency RMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Face amount of securities sold | 59,900 | ||
Face amount of securities purchased | $ 200,000 | 1,032,100 | |
Sale Price of Securities Sold | 43,400 | ||
Purchase Price of Securities Purchased | 100,000 | 443,100 | |
Agency RMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Face amount of securities sold | 1,400,000 | 1,632,600 | |
Face amount of securities purchased | 1,300,000 | 2,216,700 | |
Sale Price of Securities Sold | 1,500,000 | 1,698,300 | |
Purchase Price of Securities Purchased | $ 1,300,000 | $ 2,300,300 |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
security
|
Dec. 31, 2015
USD ($)
|
||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | $ 5,766,333 | ||||||
Other Than Temporary Impairment - Amortized Cost Basis | (9,209) | $ (6,239) | |||||
After Impairment - Amortized Cost Basis | 3,453,043 | ||||||
Carrying Value - Total | $ 3,441,790 | ||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | ||||||
Securities in an Unrealized Loss Position Less than Twelve Months [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | $ 2,296,736 | ||||||
Before Impairment - Amortized Cost Basis | 1,054,378 | ||||||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (3,070) | |||||
After Impairment - Amortized Cost Basis | 1,051,308 | ||||||
Gross Unrealized Losses - Less than Twelve Months | (31,030) | ||||||
Carrying Value - Less than Twelve Months | $ 1,020,278 | ||||||
Number of Securities - Less than Twelve Months | security | 131 | ||||||
Weighted Average Rating | [2] | B+ | |||||
Weighted Average Coupon | 1.35% | ||||||
Weighted Average Yield | 5.30% | ||||||
Weighted Average Life (Years) | 8 years 11 months 15 days | ||||||
Securities in an Unrealized Loss Position Twelve Months or More [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | $ 202,132 | ||||||
Before Impairment - Amortized Cost Basis | 166,905 | ||||||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (184) | |||||
After Impairment - Amortized Cost Basis | 166,721 | ||||||
Gross Unrealized Losses - Twelve or More Months | (2,453) | ||||||
Carrying Value - Twelve or More Months | $ 164,268 | ||||||
Number of Securities - Twelve or More Months | security | 31 | ||||||
Weighted Average Rating | [2] | AA- | |||||
Weighted Average Coupon | 2.38% | ||||||
Weighted Average Yield | 1.87% | ||||||
Weighted Average Life (Years) | 6 years 8 months 13 days | ||||||
Securities in a Loss Position [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | $ 2,498,868 | ||||||
Before Impairment - Amortized Cost Basis | 1,221,283 | ||||||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (3,254) | |||||
After Impairment - Amortized Cost Basis | 1,218,029 | ||||||
Gross Unrealized Losses - Total | (33,483) | ||||||
Carrying Value - Total | $ 1,184,546 | ||||||
Number of Securities - Total | security | 162 | ||||||
Weighted Average Rating | [2] | BB- | |||||
Weighted Average Coupon | 1.50% | ||||||
Weighted Average Yield | 4.83% | ||||||
Weighted Average Life (Years) | 8 years 7 months 24 days | ||||||
|
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Footnote) (Details) |
Mar. 31, 2016
bond
|
---|---|
Schedule of Available-for-sale Securities [Line Items] | |
Number of bonds which New Residential was unable to obtain rating information | 84 |
Securities in an Unrealized Loss Position Less than Twelve Months [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of bonds which New Residential was unable to obtain rating information | 24 |
Securities in an Unrealized Loss Position Twelve Months or More [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of bonds which New Residential was unable to obtain rating information | 2 |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
|
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
Securities Intended to Sell [Member] | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||
Fair Value | $ 0 | [1] | ||||||||
Amortized Cost Basis After Impairment | 0 | [1] | ||||||||
Unrealized Credit Losses | 0 | [1],[2] | ||||||||
Unrealized Non-Credit Losses | 0 | [1],[3] | ||||||||
Securities More Likely Than Not Required to be Sold [Member] | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||
Fair Value | 0 | [4] | ||||||||
Amortized Cost Basis After Impairment | 0 | [4] | ||||||||
Unrealized Credit Losses | 0 | [2],[4] | ||||||||
Securities No Intent to Sell and Not More Like Than Not to be Required to Sell - Credit Impaired [Member] | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||
Fair Value | 274,970 | |||||||||
Amortized Cost Basis After Impairment | 279,440 | |||||||||
Unrealized Credit Losses | (3,254) | [2] | ||||||||
Unrealized Non-Credit Losses | (4,470) | [3] | ||||||||
Securities No Intent to Sell and Not More Like Than Not to be Required to Sell - Non-Credit Impaired [Member] | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||
Fair Value | 909,576 | |||||||||
Amortized Cost Basis After Impairment | 938,589 | |||||||||
Unrealized Credit Losses | 0 | [2] | ||||||||
Unrealized Non-Credit Losses | (29,013) | [3] | ||||||||
Securities in an Unrealized Loss Position [Member] | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||
Fair Value | 1,184,546 | |||||||||
Amortized Cost Basis After Impairment | 1,218,029 | |||||||||
Unrealized Credit Losses | (3,254) | [2] | ||||||||
Unrealized Non-Credit Losses | $ (33,483) | [3] | ||||||||
|
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Footnote) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized losses reflected in other comprehensive income | $ 0 |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 6,239 |
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income | 1,276 |
Additions for credit losses on securities for which an OTTI was not previously recognized | 1,978 |
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | 0 |
Reduction for securities sold during the period | (284) |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 9,209 |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS (Details) - Non-Agency RMBS [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 3,885,034 | $ 3,102,973 | ||||
Percentage of Total Outstanding | [1] | 100.00% | 100.00% | ||||
Western U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 1,338,979 | $ 1,097,609 | ||||
Percentage of Total Outstanding | [1] | 34.40% | 35.30% | ||||
Southeastern U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 946,470 | $ 758,167 | ||||
Percentage of Total Outstanding | [1] | 24.30% | 24.40% | ||||
Northeastern U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 757,277 | $ 583,366 | ||||
Percentage of Total Outstanding | [1] | 19.50% | 18.80% | ||||
Midwestern U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 452,917 | $ 335,406 | ||||
Percentage of Total Outstanding | [1] | 11.70% | 10.80% | ||||
Southwestern U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1] | $ 382,954 | $ 309,236 | ||||
Percentage of Total Outstanding | [1] | 9.90% | 10.00% | ||||
Other U.S. [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Outstanding Face Amount | [1],[2] | $ 6,437 | $ 19,189 | ||||
Percentage of Total Outstanding | [1],[2] | 0.20% | 0.70% | ||||
|
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS (Footnote) (Details) $ in Millions |
Mar. 31, 2016
USD ($)
|
---|---|
Servicer Advances [Member] | Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Face amount of investment | $ 431.0 |
INVESTMENTS IN REAL ESTATE SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 1,381,005 | $ 873,763 |
Carrying Value | $ 758,726 | $ 504,659 |
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance, beginning | $ 316,521 |
Additions | 224,428 |
Accretion | (18,362) |
Reclassifications from (to) non-accretable difference | (13,662) |
Disposals | 4,855 |
Balance, ending | $ 513,780 |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands |
3 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
loan
|
Dec. 31, 2015
USD ($)
|
||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | ||||||||||||||||||||
Reverse Mortgage Loans [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | [1],[2] | $ 32,633 | |||||||||||||||||||
Carrying Value | [1],[2] | $ 18,142 | $ 19,560 | ||||||||||||||||||
Loan Count | loan | [1],[2] | 122 | |||||||||||||||||||
Weighted Average Yield | [1],[2] | 7.40% | |||||||||||||||||||
Weighted Average Life (Years) | [1],[2],[3] | 4 years 4 months 17 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | [1],[2] | 19.80% | |||||||||||||||||||
Loan to Value Ratio (LTV) | [1],[2],[4] | 133.50% | |||||||||||||||||||
Weighted Average Delinquency | [1],[2],[5] | 65.70% | |||||||||||||||||||
Performing Loans [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | [6] | $ 20,884 | |||||||||||||||||||
Carrying Value | [6] | $ 19,462 | 19,964 | ||||||||||||||||||
Loan Count | loan | [6] | 663 | |||||||||||||||||||
Weighted Average Yield | [6] | 8.90% | |||||||||||||||||||
Weighted Average Life (Years) | [3],[6] | 5 years 6 months 21 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | [6] | 17.30% | |||||||||||||||||||
Loan to Value Ratio (LTV) | [4],[6] | 77.20% | |||||||||||||||||||
Weighted Average Delinquency | [5],[6] | 7.30% | |||||||||||||||||||
Weighted Average FICO | [6],[7] | 626 | |||||||||||||||||||
Purchased Credit Deteriorated Loans [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | [8] | $ 439,649 | |||||||||||||||||||
Carrying Value | [8] | $ 287,130 | 290,654 | ||||||||||||||||||
Loan Count | loan | [8] | 2,037 | |||||||||||||||||||
Weighted Average Yield | [8] | 5.50% | |||||||||||||||||||
Weighted Average Life (Years) | [3],[8] | 2 years 6 months 19 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | [8] | 18.70% | |||||||||||||||||||
Loan to Value Ratio (LTV) | [4],[8] | 116.40% | |||||||||||||||||||
Weighted Average Delinquency | [5],[8] | 93.10% | |||||||||||||||||||
Weighted Average FICO | [7],[8] | 577 | |||||||||||||||||||
Residential Mortgage Loans, held-for-investment [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | $ 493,166 | ||||||||||||||||||||
Carrying Value | $ 324,734 | 330,178 | |||||||||||||||||||
Loan Count | loan | 2,822 | ||||||||||||||||||||
Weighted Average Yield | 5.80% | ||||||||||||||||||||
Weighted Average Life (Years) | [3] | 2 years 9 months 19 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | 18.70% | ||||||||||||||||||||
Loan to Value Ratio (LTV) | [4] | 115.90% | |||||||||||||||||||
Weighted Average Delinquency | [5] | 87.70% | |||||||||||||||||||
Weighted Average FICO | [7] | 580 | |||||||||||||||||||
Performing Loans, held-for-sale [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | [6] | $ 143,384 | |||||||||||||||||||
Carrying Value | [6] | $ 151,001 | 277,084 | ||||||||||||||||||
Loan Count | loan | [6] | 1,671 | |||||||||||||||||||
Weighted Average Yield | [6] | 3.80% | |||||||||||||||||||
Weighted Average Life (Years) | [3],[6] | 4 years 8 months 8 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | [6] | 9.60% | |||||||||||||||||||
Loan to Value Ratio (LTV) | [4],[6] | 58.10% | |||||||||||||||||||
Weighted Average Delinquency | [5],[6] | 3.70% | |||||||||||||||||||
Weighted Average FICO | [6],[7] | 665 | |||||||||||||||||||
Non-Performing Loans, held-for-sale [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | [8],[9] | $ 572,988 | |||||||||||||||||||
Carrying Value | [8],[9] | $ 482,159 | 499,597 | ||||||||||||||||||
Loan Count | loan | [8],[9] | 3,425 | |||||||||||||||||||
Weighted Average Yield | [8],[9] | 7.00% | |||||||||||||||||||
Weighted Average Life (Years) | [3],[8],[9] | 2 years 8 months 8 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | [8],[9] | 15.30% | |||||||||||||||||||
Loan to Value Ratio (LTV) | [4],[8],[9] | 104.00% | |||||||||||||||||||
Weighted Average Delinquency | [5],[8],[9] | 79.10% | |||||||||||||||||||
Weighted Average FICO | [7],[8],[9] | 571 | |||||||||||||||||||
Residential Mortgage Loans Held-for-Sale [Member] | |||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||
Outstanding Face Amount | $ 716,372 | ||||||||||||||||||||
Carrying Value | $ 633,160 | $ 776,681 | |||||||||||||||||||
Loan Count | loan | 5,096 | ||||||||||||||||||||
Weighted Average Yield | 6.30% | ||||||||||||||||||||
Weighted Average Life (Years) | [3] | 3 years 1 month 2 days | |||||||||||||||||||
Floating Rate Loans as a % of Face Amount | 14.20% | ||||||||||||||||||||
Loan to Value Ratio (LTV) | [4] | 94.80% | |||||||||||||||||||
Weighted Average Delinquency | [5] | 64.00% | |||||||||||||||||||
Weighted Average FICO | [7] | 590 | |||||||||||||||||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Footnote) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Feb. 28, 2013 |
Mar. 31, 2016 |
|
Mortgage Loans on Real Estate [Line Items] | ||
Threshold period past due | 60 days | |
Discount on borrowings, net of amortization | $ 8.7 | |
Reverse Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | 70.00% |
Total unpaid principal balance | $ 0.4 | |
Percentage of loans that have reached a termination event | 60.00% | |
Non-Performing Loans [Member] | Ginnie Mae EBO [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
UPB of Underlying Mortgages | $ 232.1 | |
Maximum [Member] | Performing Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Threshold period past due | 30 days |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Feb. 28, 2013 |
Mar. 31, 2016 |
|
Mortgage Loans on Real Estate [Line Items] | ||
Threshold period past due | 60 days | |
Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Claims receivable | $ 30.1 | |
Nationstar [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 30.00% | |
Reverse Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | 70.00% |
Unpaid principal balance | $ 0.4 | |
Residential Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 479.7 |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans [Member] |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
New York [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 15.10% | 14.50% |
New Jersey [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 13.60% | 13.10% |
Florida [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 10.70% | 10.70% |
California [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.40% | 12.30% |
Texas [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.50% | 3.30% |
Illinois [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.30% |
Maryland [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.80% | 3.50% |
Massachusetts [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.50% | 3.30% |
Washington [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.20% |
Pennsylvania [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 2.80% |
Other U.S. [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 29.80% | 29.00% |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loan Transactions (Details) - Residential Mortgage Loans [Member] $ in Millions |
Dec. 23, 2015
USD ($)
trust
|
Mar. 25, 2016
USD ($)
trust
|
|||||||
---|---|---|---|---|---|---|---|---|---|
Investment [Line Items] | |||||||||
Number of Trusts Called | trust | [1] | 14,000,000 | 13,000,000 | ||||||
Securities Owned Prior [Member] | |||||||||
Investment [Line Items] | |||||||||
Face Amount | [1] | $ 61.4 | $ 58.4 | ||||||
Amortized Cost Basis | [1] | 48.0 | 41.0 | ||||||
Assets Acquired [Member] | |||||||||
Investment [Line Items] | |||||||||
Unpaid Principal Balance | [1] | 309.1 | 167.2 | ||||||
Loan Price | [1] | 315.1 | 173.3 | ||||||
REO & Other Price | [1],[2] | 3.1 | 3.1 | ||||||
Loans Sold [Member] | |||||||||
Investment [Line Items] | |||||||||
Unpaid Principal Balance | [1],[3] | 261.3 | |||||||
Gain (Loss) | [1],[3] | 2.2 | |||||||
Bonds Retained [Member] | |||||||||
Investment [Line Items] | |||||||||
Basis | [1] | $ 36.6 | |||||||
Retained Assets [Member] | |||||||||
Investment [Line Items] | |||||||||
Unpaid Principal Balance | [1],[3] | 37.4 | |||||||
Loan Price | [1],[3] | 27.4 | |||||||
REO & Other Price | [1],[3] | $ 2.9 | |||||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Details) - Delinquency Status [Member] |
Mar. 31, 2016 |
[1] | ||||||
---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Current | 87.20% | |||||||
30-59 | 8.70% | |||||||
60-89 | 1.90% | |||||||
90-119 | 0.10% | [2] | ||||||
120 and greater | 2.10% | [3] | ||||||
Total Loans | 100.00% | |||||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Footnote) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 60 days |
Equal to Greater than 90 Days Past Due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 120 days |
Equal to Greater than 90 Days Past Due [Member] | Lower Range [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 90 days |
Equal to Greater than 90 Days Past Due [Member] | Upper Range [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 119 days |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCD Loans Held-for-Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Accretion of loan discount and other amortization | $ 153,670 | $ 61,345 | |||
Transfer of loans to real estate owned | (8,285) | ||||
Reverse Mortgage Loans [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Balance, beginning | 19,560 | ||||
Purchases/additional fundings | 319 | ||||
Proceeds from repayments | (809) | ||||
Accretion of loan discount and other amortization | [1] | 1,090 | |||
Provision for loan losses | (12) | ||||
Transfer of loans to other assets | (2,006) | ||||
Transfer of loans to real estate owned | 0 | ||||
Balance, ending | 18,142 | ||||
Performing Loans [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Balance, beginning | 19,964 | ||||
Purchases/additional fundings | 0 | ||||
Proceeds from repayments | (598) | ||||
Accretion of loan discount and other amortization | [1] | 100 | |||
Provision for loan losses | (4) | ||||
Transfer of loans to other assets | 0 | ||||
Transfer of loans to real estate owned | 0 | ||||
Balance, ending | 19,462 | ||||
PCD Loans [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Balance, beginning | 290,654 | ||||
Purchases/additional fundings | 0 | ||||
Sales | 0 | ||||
Proceeds from repayments | (7,233) | ||||
Accretion of loan discount and other amortization | 6,315 | ||||
Transfer of loans to real estate owned | (2,606) | ||||
Balance, ending | $ 287,130 | ||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans (Details) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
| ||||||
Reverse Mortgage Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning, balance | $ 1,553 | |||||
Provision for loan losses | (12) | [1] | ||||
Charge-offs | 0 | [2] | ||||
Ending, balance | 1,565 | |||||
Performing Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning, balance | 119 | |||||
Provision for loan losses | (4) | [1] | ||||
Charge-offs | 0 | [2] | ||||
Ending, balance | $ 123 | |||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Unpaid Principal Balance and Carrying Value for Loans Uncollectible (Details) - PCD Loans [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 439,649 | $ 450,229 |
Carrying Value | $ 287,130 | $ 290,654 |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Changes in Accretable Yield (Details) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
| ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||||
Beginning balance | $ 71,063 | |||||
Additions | 0 | |||||
Accretion | (6,315) | |||||
Reclassifications from non-accretable difference | 11,443 | [1] | ||||
Disposals | (933) | [2] | ||||
Ending balance | $ 75,258 | |||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Loans Held-for-sale (Details) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
| ||||||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||||
Transfer of loans to real estate owned | $ (8,285) | |||||
Loans Held-for-sale [Member] | ||||||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||||
Beginning balance, loans held-for-sale | 776,681 | |||||
Purchases | 173,270 | [1] | ||||
Sales | 266,124 | |||||
Transfer of loans to other assets | (25,429) | |||||
Transfer of loans to real estate owned | (3,676) | |||||
Proceeds from repayments | (18,495) | |||||
Valuation provision on loans | (3,067) | [2] | ||||
Ending balance, loans held-for-sale | $ 633,160 | |||||
|
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Loans Held-for-sale (Footnote) (Details) $ in Millions |
Mar. 25, 2016
USD ($)
|
---|---|
Loans Held-for-sale [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Provision on call transaction on loans held-for-sale | $ 2.6 |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Real Estate Owned (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Real Estate Owned [Roll Forward] | |
Beginning balance | $ 50,574 |
Purchases | 9,196 |
Transfer of loans to real estate owned | 8,285 |
Sales | (7,991) |
Valuation provision on REO | (3,662) |
Ending balance | $ 56,402 |
INVESTMENTS IN CONSUMER LOANS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Oct. 03, 2014 |
Apr. 30, 2013 |
|||
Schedule of Equity Method Investments [Line Items] | |||||
Basis in consumer loans investment | $ 0 | ||||
New Residential Investment Corp. [Member] | SpringCastle [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Parent's ownership percentage | [1] | 53.50% | |||
Consumer Loan Companies [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Tax withholding payments | $ 30 | ||||
OneMain [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of portfolio co-invested by other parties | 47.00% | ||||
Blackstone Tactical Opportunities Advisors LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of portfolio co-invested by other parties | 23.00% | ||||
Consumer Loan Companies [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of portfolio financed by other parties | 73.00% | ||||
Consumer Loan Investees [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
New Residential’s ownership | 30.00% | ||||
Percentage of portfolio co-invested by other parties | 70.00% | ||||
Distributions in excess to New Residential | $ 9,900 | ||||
|
INVESTMENTS IN CONSUMER LOANS - Summary of Consumer Loan Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Weighted Average Expected Life (Years) | 1 year 2 months 26 days | ||||||||||||||||
PCD Loans [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Contractually Required Payments Receivable | $ 1,003,470 | ||||||||||||||||
Cash Flows Expected to be Collected | 541,967 | ||||||||||||||||
Fair Value | 405,033 | ||||||||||||||||
Consumer Loan Investees [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Unpaid Principal Balance | [1],[2] | $ 2,094,904 | |||||||||||||||
New Residential Interest in Investees | [1] | 30.00% | |||||||||||||||
Carrying value | [1],[3] | $ 1,698,130 | |||||||||||||||
Weighted Average Coupon | [1],[4] | 18.20% | |||||||||||||||
Weighted Average Yield | [1] | 18.10% | |||||||||||||||
Weighted Average Expected Life (Years) | [1],[5] | 4 years 4 months 24 days | |||||||||||||||
Delinquency | [1],[6] | 7.20% | |||||||||||||||
New Residential Investment Corp. [Member] | SpringCastle [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Unpaid Principal Balance | [2],[7] | $ 1,986,162 | |||||||||||||||
Parent's ownership percentage | [7] | 53.50% | |||||||||||||||
Carrying value | [3],[7] | $ 1,970,565 | |||||||||||||||
Weighted Average Coupon | [4],[7] | 18.30% | |||||||||||||||
Weighted Average Yield | [7] | 9.50% | |||||||||||||||
Weighted Average Expected Life (Years) | [5],[7] | 4 years 2 months 14 days | |||||||||||||||
Delinquency | [6],[7] | 7.00% | |||||||||||||||
|
INVESTMENTS IN CONSUMER LOANS - Consumer Loan Variable Interest Entities (Details) - VIE, consolidated [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Variable Interest Entity [Line Items] | |||||
Total assets | [1] | $ 2,320,733 | $ 2,410,098 | ||
Notes and bonds payable | 1,982,944 | 2,060,347 | |||
Accounts payable and accrued expenses | 6,574 | 6,111 | |||
Total liabilities | [1] | 1,989,518 | $ 2,066,458 | ||
Consumer Loan Companies [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Consumer loans, held-for-investment | 1,970,565 | ||||
Restricted cash | 14,931 | ||||
Total assets | 1,985,496 | ||||
Notes and bonds payable | 1,803,192 | ||||
Accounts payable and accrued expenses | 4,764 | ||||
Total liabilities | $ 1,807,956 | ||||
|
DERIVATIVES - Narrative (Details) - Not Designated as Hedging Instrument [Member] - TBAs [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Short [Member] | |||||
Derivative [Line Items] | |||||
Derivative liability, notional amount | [1] | $ 2,418,000 | $ 1,450,000 | ||
Long [Member] | |||||
Derivative [Line Items] | |||||
Derivative liability, notional amount | [1] | 1,143,000 | $ 750,000 | ||
Long [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative liability, notional amount | [1] | $ 200,000 | |||
|
DERIVATIVES - Schedule of Derivatives - Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative [Line Items] | ||
Derivative assets | $ 1,720 | $ 2,689 |
Derivative liabilities | 34,942 | 13,443 |
Interest Rate Caps [Member] | ||
Derivative [Line Items] | ||
Derivative assets | 1,720 | 2,689 |
TBAs [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 7,736 | 2,058 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 27,206 | $ 11,385 |
DERIVATIVES - Schedule of Derivatives - Notional Amount (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||
---|---|---|---|---|---|---|---|---|---|
TBAs [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative liability, notional amount | [1] | $ 2,418,000 | $ 1,450,000 | ||||||
TBAs [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative liability, notional amount | [1] | 1,143,000 | 750,000 | ||||||
Interest Rate Caps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative asset, notional amount | [2] | 2,565,000 | 3,400,000 | ||||||
Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative liability, notional amount | [3] | $ 2,444,000 | $ 2,444,000 | ||||||
|
DERIVATIVES - Schedule of Derivatives - Notional Amount (Footnote) (Details) - Not Designated as Hedging Instrument [Member] |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Weighted average maturity | 22 months |
Weighted average fixed pay rate | 1.20% |
Interest Rate Cap, 0.50% [Member] | |
Derivative [Line Items] | |
Derivative, cap interest rate | 0.50% |
Notional amount of derivatives | $ 765,000,000 |
Interest Rate Cap, 0.75% [Member] | |
Derivative [Line Items] | |
Derivative, cap interest rate | 0.75% |
Notional amount of derivatives | $ 1,650,000,000 |
Interest Rate Cap, 4.0% [Member] | |
Derivative [Line Items] | |
Derivative, cap interest rate | 4.00% |
Notional amount of derivatives | $ 150,000,000 |
DERIVATIVES - Schedule of Derivatives - Gain (Losses) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | $ (22,303) | $ (7,030) | ||
Gain (loss) on settlement of derivatives | (32,633) | (22,590) | |||
Total gains (losses) | (54,936) | (29,620) | |||
TBAs [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | (5,531) | (3,554) | ||
Gain (loss) on settlement of derivatives | (28,171) | (16,033) | |||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | (15,821) | (3,352) | ||
Gain (loss) on settlement of derivatives | (3,338) | (6,557) | |||
Interest Rate Caps [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | (951) | (124) | ||
Gain (loss) on settlement of derivatives | $ (1,124) | $ 0 | |||
|
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | $ 12,863,125 | ||||||||||||||||||||||||||||
Carrying Value | [1] | $ 12,844,363 | $ 11,292,622 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | 3.02% | ||||||||||||||||||||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | ||||||||||||||||||||||||||||
Servicer Advances [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Carrying Value | [2] | $ 6,868,732 | |||||||||||||||||||||||||||
Consumer Loans [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Carrying Value | 1,837,415 | ||||||||||||||||||||||||||||
Repurchase Agreements [Member] | Agency RMBS [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [3],[4] | 1,629,971 | |||||||||||||||||||||||||||
Carrying Value | [1],[3],[4] | $ 1,629,971 | 1,683,305 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [3],[4] | 0.70% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [3],[4] | 1 month 20 days | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Agency RMBS [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [3],[4] | 7 months 22 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [3],[4] | $ 1,612,119 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [3],[4] | 1,667,876 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [3],[4] | 1,691,144 | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [4],[5] | 1,490,273 | |||||||||||||||||||||||||||
Carrying Value | [1],[4],[5] | $ 1,490,273 | 1,333,852 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [4],[5] | 1.96% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[5] | 1 month 5 days | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[5] | 7 years 2 months 19 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [4],[5] | $ 3,599,118 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [4],[5] | 1,788,871 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [4],[5] | 1,777,260 | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Residential Mortgage [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [4],[6] | 723,954 | |||||||||||||||||||||||||||
Carrying Value | [1],[4],[6] | $ 723,167 | 907,993 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [4],[6] | 2.87% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[6] | 7 months 24 days | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Residential Mortgage [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[6] | 3 years 1 month 15 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [4],[6] | $ 1,119,845 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [4],[6] | 886,918 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [4],[6] | 884,110 | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Real Estate Owned [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [4],[7],[8] | 95,983 | |||||||||||||||||||||||||||
Carrying Value | [1],[4],[7],[8] | $ 95,878 | 77,458 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [4],[7],[8] | 2.76% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[7],[8] | 7 months 2 days | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Real Estate Owned [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Carrying Value of Collateral | [4],[7],[8] | $ 108,330 | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [4],[9] | 34,223 | |||||||||||||||||||||||||||
Carrying Value | [1],[4],[9] | $ 34,223 | 40,446 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [4],[9] | 4.11% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[9] | 1 month 7 days | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [4],[9] | 4 years 2 months 14 days | |||||||||||||||||||||||||||
Carrying Value of Collateral | [4],[9] | $ 71,250 | |||||||||||||||||||||||||||
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [4] | 3,974,404 | |||||||||||||||||||||||||||
Carrying Value | [1],[4] | $ 3,973,512 | 4,043,054 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [4] | 1.65% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [4] | 2 months 15 days | |||||||||||||||||||||||||||
Notes Payable [Member] | Residential Mortgage [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [10] | $ 13,786 | |||||||||||||||||||||||||||
Carrying Value | [1],[10] | $ 13,786 | 19,529 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [10] | 3.30% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [10] | 6 months 17 days | |||||||||||||||||||||||||||
Notes Payable [Member] | Residential Mortgage [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [10] | 4 years 4 months 24 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [10] | $ 20,801 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [10] | 13,914 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [10] | 12,809 | |||||||||||||||||||||||||||
Notes Payable [Member] | Real Estate Owned [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | 3,539 | ||||||||||||||||||||||||||||
Carrying Value | [1] | $ 3,539 | 0 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | 3.30% | ||||||||||||||||||||||||||||
Weighted Average Life (Years) | 6 months 17 days | ||||||||||||||||||||||||||||
Notes Payable [Member] | Real Estate Owned [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Carrying Value of Collateral | $ 5,333 | ||||||||||||||||||||||||||||
Notes Payable [Member] | Secured Corporate Note [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [11] | 182,772 | |||||||||||||||||||||||||||
Carrying Value | [1],[11] | $ 181,602 | 182,978 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [11] | 5.69% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [11] | 1 year 24 days | |||||||||||||||||||||||||||
Notes Payable [Member] | Secured Corporate Note [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [11] | 5 years 2 months 12 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [11] | $ 89,074,745 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [11] | 212,250 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [11] | 258,422 | |||||||||||||||||||||||||||
Notes Payable [Member] | Servicer Advances [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [12] | 6,880,413 | |||||||||||||||||||||||||||
Carrying Value | [1],[12] | $ 6,868,732 | 7,047,061 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [12] | 3.44% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [12] | 1 year 2 months 6 days | |||||||||||||||||||||||||||
Notes Payable [Member] | Servicer Advances [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [12] | 4 years 5 months 21 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [12] | $ 7,203,924 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [12] | 7,005,501 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [12] | 7,001,004 | |||||||||||||||||||||||||||
Notes Payable [Member] | Consumer Loans [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | [13] | 1,808,211 | |||||||||||||||||||||||||||
Carrying Value | [1],[13] | $ 1,803,192 | 0 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | [13] | 4.14% | |||||||||||||||||||||||||||
Weighted Average Life (Years) | [13] | 3 years 8 months 26 days | |||||||||||||||||||||||||||
Notes Payable [Member] | Consumer Loans [Member] | Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted Average Life (Years) | [13] | 4 years 2 months 14 days | |||||||||||||||||||||||||||
Outstanding Face Amount of Collateral | [13] | $ 1,986,162 | |||||||||||||||||||||||||||
Amortized Cost Basis of Collateral | [13] | 1,951,879 | |||||||||||||||||||||||||||
Carrying Value of Collateral | [13] | 1,951,879 | |||||||||||||||||||||||||||
Notes Payable [Member] | Total Notes Payable [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Outstanding Face Amount | 8,888,721 | ||||||||||||||||||||||||||||
Carrying Value | [1] | $ 8,870,851 | $ 7,249,568 | ||||||||||||||||||||||||||
Weighted Average Funding Cost | 3.63% | ||||||||||||||||||||||||||||
Weighted Average Life (Years) | 1 year 8 months 12 days | ||||||||||||||||||||||||||||
|
DEBT OBLIGATIONS - Schedule of Debt Obligations (Footnote) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||
Accrued interest payable | $ 19,988 | $ 18,268 |
Trade and Other Receivables [Member] | ||
Debt Instrument [Line Items] | ||
Collateral amount | 1,500,000 | |
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Accrued interest payable | $ 6,700 | |
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.50% | |
Collateral percentage | 56.00% | |
Notes Payable [Member] | Residential Mortgage [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.875% | |
Notes Payable [Member] | Secured Corporate Note [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 5.25% | |
Notes Payable [Member] | Servicer Advances [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt at fixed rate | $ 2,700,000 | |
Notes Payable [Member] | Servicer Advances [Member] | LIBOR [Member] | Lower Range [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.73036% | |
Notes Payable [Member] | Servicer Advances [Member] | LIBOR [Member] | Upper Range [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.20483% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Redemption rate | 100.00% | |
Secured Debt [Member] | UPB Class A Notes, 2.7%, Matures May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 850,200 | |
Interest rate | 2.70% | |
Specified call premium percentage | 1.00% | |
Secured Debt [Member] | UPB Class B Notes, 4.61%, Matures October 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 427,000 | |
Interest rate | 4.61% | |
Specified call premium percentage | 0.75% | |
Secured Debt [Member] | UPB Class C Notes, 5.59%, Matures October 2033 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 331,200 | |
Interest rate | 5.59% | |
Specified call premium percentage | 1.00% | |
Secured Debt [Member] | UPB Class D Notes, 6.82%, Matures April 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 199,800 | |
Interest rate | 6.82% | |
Specified call premium percentage | 2.00% | |
Collateral [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | $ 145,800 |
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|||
Debt Instrument [Line Items] | |||||
Gain (loss) on extinguishment of debt | $ 0 | $ (2,934) | |||
Face amount of debt | 12,863,125 | ||||
Repayments of debt | 5,062,857 | $ 2,016,777 | |||
Debt | [1] | $ 12,844,363 | $ 11,292,622 | ||
Percent decline in equity, first period | 50.00% | ||||
Decline in equity, first period | 12 months | ||||
Percent decline in equity, second period | 35.00% | ||||
Decline in equity, second period | 3 months | ||||
Ratio of indebtedness to tangible net worth | 4 | ||||
Unamortized Deferred Financing Costs [Member] | |||||
Debt Instrument [Line Items] | |||||
Gain (loss) on extinguishment of debt | $ (100) | ||||
Consumer Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt | 1,837,415 | ||||
Repurchase Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 5,062,857 | ||||
Repurchase Agreements [Member] | Consumer Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 6,223 | ||||
|
DEBT OBLIGATIONS - Schedule of Debt Obligations - Carrying Value (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | [1] | $ 11,292,622 | |||||||||
Borrowings | 4,993,318 | $ 1,121,121 | |||||||||
Repayments | (5,062,857) | $ (2,016,777) | |||||||||
Ending balance | [1] | 12,844,363 | |||||||||
Servicer Advances [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Ending balance | [2] | 6,868,732 | |||||||||
Real Estate Securities [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Ending balance | 3,120,244 | ||||||||||
Real Estate Loans and REO [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Ending balance | 836,370 | ||||||||||
Consumer Loans [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Ending balance | 1,837,415 | ||||||||||
Other [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Ending balance | 181,602 | ||||||||||
Repurchase Agreements [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | 4,993,318 | ||||||||||
Repayments | (5,062,857) | ||||||||||
Capitalized deferred financing costs, net of amortization | (3) | ||||||||||
Repurchase Agreements [Member] | Servicer Advances [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | [2] | 0 | |||||||||
Repayments | [2] | 0 | |||||||||
Capitalized deferred financing costs, net of amortization | [2] | 0 | |||||||||
Repurchase Agreements [Member] | Real Estate Securities [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | 4,863,459 | ||||||||||
Repayments | (4,760,372) | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Repurchase Agreements [Member] | Real Estate Loans and REO [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | 129,859 | ||||||||||
Repayments | (296,262) | ||||||||||
Capitalized deferred financing costs, net of amortization | (3) | ||||||||||
Repurchase Agreements [Member] | Consumer Loans [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | 0 | ||||||||||
Repayments | (6,223) | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Repurchase Agreements [Member] | Other [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Borrowings | 0 | ||||||||||
Repayments | 0 | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Notes Payable [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Acquired borrowings, net of discount | 1,803,192 | ||||||||||
Borrowings | 1,713,002 | ||||||||||
Repayments | (1,894,548) | ||||||||||
Discount on borrowings, net of amortization | 278 | ||||||||||
Capitalized deferred financing costs, net of amortization | (641) | ||||||||||
Notes Payable [Member] | Servicer Advances [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | [1],[3] | 7,047,061 | |||||||||
Acquired borrowings, net of discount | [2] | 0 | |||||||||
Borrowings | [2] | 1,713,002 | |||||||||
Repayments | [2] | (1,890,683) | |||||||||
Discount on borrowings, net of amortization | [2] | 0 | |||||||||
Capitalized deferred financing costs, net of amortization | [2] | (648) | |||||||||
Ending balance | [1],[3] | 6,868,732 | |||||||||
Notes Payable [Member] | Real Estate Securities [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Acquired borrowings, net of discount | 0 | ||||||||||
Borrowings | 0 | ||||||||||
Repayments | 0 | ||||||||||
Discount on borrowings, net of amortization | 0 | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Notes Payable [Member] | Real Estate Loans and REO [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Acquired borrowings, net of discount | 0 | ||||||||||
Borrowings | 0 | ||||||||||
Repayments | (2,204) | ||||||||||
Discount on borrowings, net of amortization | 0 | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Notes Payable [Member] | Consumer Loans [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | [1],[4] | 0 | |||||||||
Acquired borrowings, net of discount | 1,803,192 | ||||||||||
Borrowings | 0 | ||||||||||
Repayments | 0 | ||||||||||
Discount on borrowings, net of amortization | 0 | ||||||||||
Capitalized deferred financing costs, net of amortization | 0 | ||||||||||
Ending balance | [1],[4] | 1,803,192 | |||||||||
Notes Payable [Member] | Other [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Acquired borrowings, net of discount | 0 | ||||||||||
Borrowings | 0 | ||||||||||
Repayments | (1,661) | ||||||||||
Discount on borrowings, net of amortization | 278 | ||||||||||
Capitalized deferred financing costs, net of amortization | 7 | ||||||||||
Previously Reported [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | 11,292,622 | ||||||||||
Previously Reported [Member] | Servicer Advances [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | [2] | 7,047,061 | |||||||||
Previously Reported [Member] | Real Estate Securities [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | 3,017,157 | ||||||||||
Previously Reported [Member] | Real Estate Loans and REO [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | 1,004,980 | ||||||||||
Previously Reported [Member] | Consumer Loans [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | 40,446 | ||||||||||
Previously Reported [Member] | Other [Member] | |||||||||||
Debt Instrument [Roll Forward] | |||||||||||
Beginning balance | $ 182,978 | ||||||||||
|
DEBT OBLIGATIONS - Schedule of Contractual Maturities of Debt Obligations (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
|
---|---|
Debt maturing in: | |
April 1 through December 31, 2016 | $ 5,199,986 |
2017 | 5,486,548 |
2018 | 368,380 |
2019 | 0 |
2020 | 0 |
2021 and thereafter | 1,808,211 |
Total | 12,863,125 |
Nonrecourse [Member] | |
Debt maturing in: | |
April 1 through December 31, 2016 | 1,547,745 |
2017 | 5,045,240 |
2018 | 368,380 |
2019 | 0 |
2020 | 0 |
2021 and thereafter | 1,808,211 |
Total | 8,769,576 |
Recourse [Member] | |
Debt maturing in: | |
April 1 through December 31, 2016 | 3,652,241 |
2017 | 441,308 |
2018 | 0 |
2019 | 0 |
2020 | 0 |
2021 and thereafter | 0 |
Total | $ 4,093,549 |
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
|
|||
---|---|---|---|---|
Residential Mortgage Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing Capacity | $ 2,435,000 | |||
Balance Outstanding | 819,937 | |||
Available Financing | 1,615,063 | |||
Servicer Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing Capacity | 7,574,183 | [1] | ||
Balance Outstanding | 6,880,413 | [1] | ||
Available Financing | 693,770 | [1] | ||
Debt Excess Borrowing Capacity [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing Capacity | 10,009,183 | |||
Balance Outstanding | 7,700,350 | |||
Available Financing | $ 2,308,833 | |||
|
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Footnote) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Debt Instrument [Line Items] | |
Face amount of debt | $ 12,863,125 |
Servicer Advances [Member] | |
Debt Instrument [Line Items] | |
Unused borrowing capacity percent fee | 0.28762% |
Non-Agency Bonds [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 175,800 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Investments in: | |||||||
Real estate securities, available-for-sale | $ 3,441,790 | $ 2,501,881 | |||||
Consumer loans, held-for-investment, principal balance | [1] | 1,970,565 | 0 | ||||
Derivative assets | 1,720 | 2,689 | |||||
Restricted cash | 170,364 | 94,702 | |||||
Liabilities | |||||||
Derivative liabilities | 34,942 | $ 13,443 | |||||
Recurring Basis [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, principal balance | [2] | 317,540,275 | |||||
Excess mortgage servicing rights, equity method investees, principal balance | [2] | 70,087,028 | |||||
Servicer advances, principal balance | 7,203,924 | ||||||
Real estate securities, available-for-sale, principal balance | 5,766,333 | ||||||
Residential mortgage loans, held-for-investment, principal balance | 493,166 | ||||||
Residential mortgage loans, held-for-sale, principal balance | 716,372 | ||||||
Consumer loans, held-for-investment, principal balance | 1,986,162 | ||||||
Derivative assets, notional amount | 2,565,000 | ||||||
Cash and cash equivalents, principal balance | 258,622 | ||||||
Restricted cash, principal balance | 170,364 | ||||||
Other Assets, principal balance | 464,348 | ||||||
Liabilities | |||||||
Repurchase agreements, principal balance | 3,974,404 | ||||||
Notes and bonds payable, principal balance | 8,888,721 | ||||||
Derivative liabilities, notional amount | 6,005,000 | ||||||
Recurring Basis [Member] | Carrying Value [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | [2] | 1,547,004 | |||||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 209,901 | |||||
Servicer advances | 7,001,004 | ||||||
Real estate securities, available-for-sale | 3,441,790 | ||||||
Residential mortgage loans, held-for-investment | 324,734 | ||||||
Residential mortgage loans, held-for-sale | 633,160 | ||||||
Consumer loans, held-for-investment | 1,970,565 | ||||||
Derivative assets | 1,720 | ||||||
Cash and cash equivalents | 258,622 | ||||||
Restricted cash | 170,364 | ||||||
Other Assets | 1,479 | ||||||
Assets, fair value | 15,560,343 | ||||||
Liabilities | |||||||
Repurchase agreements | 3,973,512 | ||||||
Notes and bonds payable | 8,870,851 | ||||||
Derivative liabilities | 34,942 | ||||||
Liabilities, fair value | 12,879,305 | ||||||
Recurring Basis [Member] | Fair Value [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | 1,547,004 | ||||||
Excess mortgage servicing rights, equity method investees, at fair value | 209,901 | ||||||
Servicer advances | 7,001,004 | ||||||
Real estate securities, available-for-sale | 3,441,790 | ||||||
Residential mortgage loans, held-for-investment | 320,002 | ||||||
Residential mortgage loans, held-for-sale | 641,004 | ||||||
Consumer loans, held-for-investment | 1,970,565 | ||||||
Derivative assets | 1,720 | ||||||
Cash and cash equivalents | 258,622 | ||||||
Restricted cash | 170,364 | ||||||
Other Assets | 1,479 | ||||||
Assets, fair value | 15,563,455 | ||||||
Liabilities | |||||||
Repurchase agreements | 3,974,404 | ||||||
Notes and bonds payable | 8,882,458 | ||||||
Derivative liabilities | 34,942 | ||||||
Liabilities, fair value | 12,891,804 | ||||||
Recurring Basis [Member] | Fair Value [Member] | Level 1 [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | [2] | 0 | |||||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 0 | |||||
Servicer advances | 0 | ||||||
Real estate securities, available-for-sale | 0 | ||||||
Residential mortgage loans, held-for-investment | 0 | ||||||
Residential mortgage loans, held-for-sale | 0 | ||||||
Consumer loans, held-for-investment | 0 | ||||||
Derivative assets | 0 | ||||||
Cash and cash equivalents | 258,622 | ||||||
Restricted cash | 170,364 | ||||||
Other Assets | 0 | ||||||
Assets, fair value | 428,986 | ||||||
Liabilities | |||||||
Repurchase agreements | 0 | ||||||
Notes and bonds payable | 0 | ||||||
Derivative liabilities | 0 | ||||||
Liabilities, fair value | 0 | ||||||
Recurring Basis [Member] | Fair Value [Member] | Level 2 [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | [2] | 0 | |||||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 0 | |||||
Servicer advances | 0 | ||||||
Real estate securities, available-for-sale | 1,523,203 | ||||||
Residential mortgage loans, held-for-investment | 0 | ||||||
Residential mortgage loans, held-for-sale | 0 | ||||||
Consumer loans, held-for-investment | 0 | ||||||
Derivative assets | 1,720 | ||||||
Cash and cash equivalents | 0 | ||||||
Restricted cash | 0 | ||||||
Other Assets | 0 | ||||||
Assets, fair value | 1,524,923 | ||||||
Liabilities | |||||||
Repurchase agreements | 3,974,404 | ||||||
Notes and bonds payable | 0 | ||||||
Derivative liabilities | 34,942 | ||||||
Liabilities, fair value | 4,009,346 | ||||||
Recurring Basis [Member] | Fair Value [Member] | Level 3 [Member] | |||||||
Investments in: | |||||||
Excess mortgage servicing rights, at fair value | [2] | 1,547,004 | |||||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 209,901 | |||||
Servicer advances | 7,001,004 | ||||||
Real estate securities, available-for-sale | 1,918,587 | ||||||
Residential mortgage loans, held-for-investment | 320,002 | ||||||
Residential mortgage loans, held-for-sale | 641,004 | ||||||
Consumer loans, held-for-investment | 1,970,565 | ||||||
Derivative assets | 0 | ||||||
Cash and cash equivalents | 0 | ||||||
Restricted cash | 0 | ||||||
Other Assets | 1,479 | ||||||
Assets, fair value | 13,609,546 | ||||||
Liabilities | |||||||
Repurchase agreements | 0 | ||||||
Notes and bonds payable | 8,882,458 | ||||||
Derivative liabilities | 0 | ||||||
Liabilities, fair value | $ 8,882,458 | ||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - Recurring Basis [Member] - Level 3 [Member] $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
| ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | $ 10,809,815 | |||||||||||
Transfers from Level 3 | 0 | |||||||||||
Transfers to Level 3 | 0 | |||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | (3,254) | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 7,926 | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 3,022 | [1] | ||||||||||
Included in change in fair value of investments in Servicer Advances | (31,224) | |||||||||||
Included in gain (loss) on settlement of investments, net | (8,490) | |||||||||||
Included in other income | 1,000 | [1] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | (15,837) | [2] | ||||||||||
Interest income | 155,714 | |||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 4,287,777 | |||||||||||
Proceeds from sales | (38,168) | |||||||||||
Proceeds from repayments | (4,491,785) | |||||||||||
Balance, ending | 10,676,496 | |||||||||||
Non-Agency RMBS [Member] | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | 1,584,283 | |||||||||||
Transfers from Level 3 | 0 | [3] | ||||||||||
Transfers to Level 3 | 0 | [3] | ||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | (3,254) | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 0 | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | [1] | ||||||||||
Included in change in fair value of investments in Servicer Advances | 0 | |||||||||||
Included in gain (loss) on settlement of investments, net | (8,490) | |||||||||||
Included in other income | 268 | [1] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | (15,837) | [2] | ||||||||||
Interest income | 34,109 | |||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 443,139 | |||||||||||
Proceeds from sales | (38,168) | |||||||||||
Proceeds from repayments | (77,463) | |||||||||||
Balance, ending | 1,918,587 | |||||||||||
Servicer Advances [Member] | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | 7,426,794 | |||||||||||
Transfers from Level 3 | 0 | [3] | ||||||||||
Transfers to Level 3 | 0 | [3] | ||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | 0 | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 0 | [1] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | [1] | ||||||||||
Included in change in fair value of investments in Servicer Advances | (31,224) | |||||||||||
Included in gain (loss) on settlement of investments, net | 0 | |||||||||||
Included in other income | 0 | [1] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | 0 | [2] | ||||||||||
Interest income | 78,637 | |||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 3,844,638 | |||||||||||
Proceeds from sales | 0 | |||||||||||
Proceeds from repayments | (4,317,841) | |||||||||||
Balance, ending | 7,001,004 | |||||||||||
MSRs Agency [Member] | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | 437,201 | [4] | ||||||||||
Transfers from Level 3 | 0 | [3],[4] | ||||||||||
Transfers to Level 3 | 0 | [3],[4] | ||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | 0 | [1],[4] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 946 | [1],[4] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | [1],[4] | ||||||||||
Included in change in fair value of investments in Servicer Advances | 0 | [4] | ||||||||||
Included in gain (loss) on settlement of investments, net | 0 | [4] | ||||||||||
Included in other income | 656 | [1],[4] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | 0 | [2],[4] | ||||||||||
Interest income | 9,622 | [4] | ||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 0 | [4] | ||||||||||
Proceeds from sales | 0 | [4] | ||||||||||
Proceeds from repayments | (22,525) | [4] | ||||||||||
Balance, ending | 425,900 | [4] | ||||||||||
MSRs Agency [Member] | Excess MSRs Investees [Member] | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | 217,221 | [4],[5] | ||||||||||
Transfers from Level 3 | 0 | [3],[4],[5] | ||||||||||
Transfers to Level 3 | 0 | [3],[4],[5] | ||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | 0 | [1],[4],[5] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 0 | [1],[4],[5] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 3,022 | [1],[4],[5] | ||||||||||
Included in change in fair value of investments in Servicer Advances | 0 | [4],[5] | ||||||||||
Included in gain (loss) on settlement of investments, net | 0 | [4],[5] | ||||||||||
Included in other income | 0 | [1],[4],[5] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | 0 | [2],[4],[5] | ||||||||||
Interest income | 0 | [4],[5] | ||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 0 | [4],[5] | ||||||||||
Proceeds from sales | 0 | [4],[5] | ||||||||||
Proceeds from repayments | (10,342) | [4],[5] | ||||||||||
Balance, ending | 209,901 | [4],[5] | ||||||||||
MSRs Non-Agency [Member] | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||
Balance, beginning | 1,144,316 | [4] | ||||||||||
Transfers from Level 3 | 0 | [3],[4] | ||||||||||
Transfers to Level 3 | 0 | [3],[4] | ||||||||||
Gains (losses) included in net income | ||||||||||||
Included in other-than-temporary impairment (''OTTI'') on securities | 0 | [1],[4] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights | 6,980 | [1],[4] | ||||||||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | [1],[4] | ||||||||||
Included in change in fair value of investments in Servicer Advances | 0 | [4] | ||||||||||
Included in gain (loss) on settlement of investments, net | 0 | [4] | ||||||||||
Included in other income | 76 | [1],[4] | ||||||||||
Gains (losses) included in other comprehensive income, net of tax | 0 | [2],[4] | ||||||||||
Interest income | 33,346 | [4] | ||||||||||
Purchases, sales and repayments | ||||||||||||
Purchases | 0 | [4] | ||||||||||
Proceeds from sales | 0 | [4] | ||||||||||
Proceeds from repayments | (63,614) | [4] | ||||||||||
Balance, ending | $ 1,121,104 | [4] | ||||||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Footnote) (Details) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Excess MSRs Investees [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
New Residential’s ownership | 50.00% | 50.00012% |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) |
3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
[2] | |||||||||||||
MSRs [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 10.00% | [1] | ||||||||||||
Delinquency | 4.10% | [3] | ||||||||||||
Recapture Rate | 13.80% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 17 | [5] | ||||||||||||
Directly Held [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 9.80% | [1] | ||||||||||||
Delinquency | 3.80% | [3] | ||||||||||||
Recapture Rate | 9.80% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 16 | [5] | ||||||||||||
Directly Held [Member] | Agency [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 9.80% | [1] | ||||||||||||
Delinquency | 3.80% | [3] | ||||||||||||
Recapture Rate | 28.80% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 21 | [5] | ||||||||||||
Directly Held [Member] | Agency [Member] | Original Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 10.50% | [1] | ||||||||||||
Delinquency | 3.50% | [3] | ||||||||||||
Recapture Rate | 31.50% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 21 | [5] | ||||||||||||
Directly Held [Member] | Agency [Member] | Recaptured Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.50% | [1] | ||||||||||||
Delinquency | 4.80% | [3] | ||||||||||||
Recapture Rate | 20.00% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 20 | [5] | ||||||||||||
Directly Held [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.60% | [1] | ||||||||||||
Delinquency | 5.00% | [3] | ||||||||||||
Recapture Rate | 20.00% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 22 | [5] | ||||||||||||
Directly Held [Member] | Non-Agency [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 9.80% | [1],[6] | ||||||||||||
Recapture Rate | 2.60% | [4],[6] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 14 | [5],[6] | ||||||||||||
Directly Held [Member] | Non-Agency [Member] | Original Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 11.80% | [1],[6] | ||||||||||||
Recapture Rate | 10.30% | [4],[6] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 14 | [5],[6] | ||||||||||||
Directly Held [Member] | Non-Agency [Member] | Recaptured Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.80% | [1],[6] | ||||||||||||
Recapture Rate | 20.00% | [4],[6] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 20 | [5],[6] | ||||||||||||
Directly Held [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.50% | [1],[6] | ||||||||||||
Recapture Rate | 19.80% | [4],[6] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 20 | [5],[6] | ||||||||||||
Directly Held [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 9.30% | [1],[6] | ||||||||||||
Recapture Rate | 0.00% | [4],[6] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 14 | [5],[6] | ||||||||||||
Held through Equity Method Investees [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 10.60% | [1] | ||||||||||||
Delinquency | 5.50% | [3] | ||||||||||||
Recapture Rate | 29.20% | [4] | ||||||||||||
Held through Equity Method Investees [Member] | Agency [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Excess Mortgage Servicing Amount (bps) | 21 | [5] | ||||||||||||
Held through Equity Method Investees [Member] | Agency [Member] | Original Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 12.50% | [1] | ||||||||||||
Delinquency | 5.80% | [3] | ||||||||||||
Recapture Rate | 35.10% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 19 | [5] | ||||||||||||
Held through Equity Method Investees [Member] | Agency [Member] | Recaptured Pools [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.60% | [1] | ||||||||||||
Delinquency | 5.00% | [3] | ||||||||||||
Recapture Rate | 20.00% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 23 | [5] | ||||||||||||
Held through Equity Method Investees [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||||||||||
Directly Held (Note 4) | ||||||||||||||
Prepayment Speed | 7.70% | [1] | ||||||||||||
Delinquency | 5.00% | [3] | ||||||||||||
Recapture Rate | 20.00% | [4] | ||||||||||||
Excess Mortgage Servicing Amount (bps) | 23 | [5] | ||||||||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | $ 2,373,300 | |||
Broker price discount | 10.00% | |||
Notes and bonds payable(A) | [1] | $ 8,870,851 | $ 7,249,568 | |
Residential Mortgage Loans [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | 377,400 | |||
Real Estate Acquired in Satisfaction of Debt [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | 25,300 | |||
Loans Held-for-sale [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Asset fair value reduction | (3,100) | |||
Real Estate Owned [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Asset fair value reduction | $ 3,600 | |||
MSRs [Member] | Excess MSRs Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | |||
Fair Value [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Fair Value | $ 377,355 | |||
Fair Value [Member] | Consumer Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Fair Value | 1,970,565 | |||
VIE, consolidated [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
VIE debt assumed | 1,982,944 | $ 2,060,347 | ||
VIE, consolidated [Member] | Consumer Loan Companies [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
VIE debt assumed | $ 1,803,192 | |||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances (Details) - Servicer Advances [Member] |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.30% | |||||
Prepayment Speed | 10.20% | [1] | ||||
Delinquency | 14.60% | |||||
Mortgage Servicing Amount (bps) | 9.2 | [2] | ||||
Discount Rate | 5.50% | |||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Securities Valuation Methodology and Results (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Outstanding Face Amount | $ 5,766,333 | |||||||||||||
Amortized Cost Basis | 3,453,043 | |||||||||||||
Total Fair Value | 3,441,790 | |||||||||||||
Multiple Quotes [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 3,221,243 | [1] | ||||||||||||
Single Quote [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 220,547 | [2] | ||||||||||||
Agency RMBS [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Outstanding Face Amount | 1,450,299 | [3],[4] | ||||||||||||
Amortized Cost Basis | 1,524,194 | [3],[4] | ||||||||||||
Agency RMBS [Member] | Level 2 [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 1,523,203 | |||||||||||||
Agency RMBS [Member] | Level 2 [Member] | Multiple Quotes [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 1,523,203 | [1] | ||||||||||||
Agency RMBS [Member] | Level 2 [Member] | Single Quote [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 0 | [2] | ||||||||||||
Non-Agency RMBS [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Outstanding Face Amount | 4,316,034 | [5],[6] | ||||||||||||
Amortized Cost Basis | 1,928,849 | [5],[6] | ||||||||||||
Non-Agency RMBS [Member] | Level 3 [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 1,918,587 | |||||||||||||
Non-Agency RMBS [Member] | Level 3 [Member] | Multiple Quotes [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | 1,698,040 | [1],[5] | ||||||||||||
Non-Agency RMBS [Member] | Level 3 [Member] | Single Quote [Member] | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||||||||
Total Fair Value | $ 220,547 | [2],[5] | ||||||||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Securities Valuation Methodology and Results (Footnote) (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016
USD ($)
source
| ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of broker quotation sources | source | 2 | |||
Available-for-sale Securities | $ 3,441,790 | |||
Single Quote [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 220,547 | [1] | ||
Seller [Member] | Single Quote [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | $ 214,718 | |||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Valuation and Loss Provision/ (Reversal) In Current Year | $ 6,745 | $ 977 | |||||||||||||||||||||||
Weighted Average Life (Years) | 1 year 2 months 26 days | ||||||||||||||||||||||||
Reverse Mortgage Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Weighted Average Life (Years) | [1],[2],[3] | 4 years 4 months 17 days | |||||||||||||||||||||||
Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Weighted Average Life (Years) | [3],[4] | 5 years 6 months 21 days | |||||||||||||||||||||||
Residential Mortgage [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Valuation and Loss Provision/ (Reversal) In Current Year | $ 16 | ||||||||||||||||||||||||
Discount Rate | 5.60% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [5] | 2 years 7 months 21 days | |||||||||||||||||||||||
Loss Severity | [6] | 14.60% | |||||||||||||||||||||||
Residential Mortgage [Member] | Reverse Mortgage Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Valuation and Loss Provision/ (Reversal) In Current Year | [7] | $ 12 | |||||||||||||||||||||||
Discount Rate | [7] | 10.00% | |||||||||||||||||||||||
Weighted Average Life (Years) | [5],[7] | 4 years 4 months 17 days | |||||||||||||||||||||||
Loss Severity | [6],[7] | 8.40% | |||||||||||||||||||||||
Residential Mortgage [Member] | Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Valuation and Loss Provision/ (Reversal) In Current Year | $ 4 | ||||||||||||||||||||||||
Discount Rate | 7.90% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [5] | 5 years 6 months 21 days | |||||||||||||||||||||||
Prepayment Rate | 5.90% | ||||||||||||||||||||||||
CDR | [8] | 2.50% | |||||||||||||||||||||||
Loss Severity | [6] | 58.30% | |||||||||||||||||||||||
Residential Mortgage [Member] | Non-Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Discount Rate | 5.40% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [5] | 2 years 5 months 22 days | |||||||||||||||||||||||
Prepayment Rate | 1.50% | ||||||||||||||||||||||||
Loss Severity | [6] | 13.20% | |||||||||||||||||||||||
Residential Mortgage [Member] | Carrying Value [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Carrying Value | $ 580,539 | ||||||||||||||||||||||||
Residential Mortgage [Member] | Carrying Value [Member] | Reverse Mortgage Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Carrying Value | [7] | 18,142 | |||||||||||||||||||||||
Residential Mortgage [Member] | Carrying Value [Member] | Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Carrying Value | 19,462 | ||||||||||||||||||||||||
Residential Mortgage [Member] | Carrying Value [Member] | Non-Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Carrying Value | 542,935 | ||||||||||||||||||||||||
Residential Mortgage [Member] | Fair Value [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | 583,651 | ||||||||||||||||||||||||
Residential Mortgage [Member] | Fair Value [Member] | Reverse Mortgage Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | [7] | 18,142 | |||||||||||||||||||||||
Residential Mortgage [Member] | Fair Value [Member] | Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | 20,484 | ||||||||||||||||||||||||
Residential Mortgage [Member] | Fair Value [Member] | Non-Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | $ 545,025 | ||||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Discount Rate | 4.90% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [9] | 3 years 10 months 21 days | |||||||||||||||||||||||
Prepayment Rate | 4.20% | ||||||||||||||||||||||||
Loss Severity | [10] | 28.40% | |||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Discount Rate | 3.80% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [9] | 4 years 8 months 7 days | |||||||||||||||||||||||
Prepayment Rate | 6.00% | ||||||||||||||||||||||||
CDR | [11] | 0.90% | |||||||||||||||||||||||
Loss Severity | [10] | 37.30% | |||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Non-Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Discount Rate | 5.70% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [9] | 3 years 4 months 9 days | |||||||||||||||||||||||
Prepayment Rate | 3.00% | ||||||||||||||||||||||||
Loss Severity | [10] | 22.40% | |||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Consumer Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Discount Rate | 9.50% | ||||||||||||||||||||||||
Weighted Average Life (Years) | [9] | 4 years 2 months 14 days | |||||||||||||||||||||||
Prepayment Rate | 18.50% | ||||||||||||||||||||||||
CDR | 5.60% | ||||||||||||||||||||||||
Loss Severity | [10] | 87.20% | |||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | $ 377,355 | ||||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | 151,001 | ||||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Non-Performing Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | 226,354 | ||||||||||||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Consumer Loans [Member] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||
Fair Value | $ 1,970,565 | ||||||||||||||||||||||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Footnote) (Details) |
1 Months Ended | 3 Months Ended |
---|---|---|
Feb. 28, 2013 |
Mar. 31, 2016 |
|
Reverse Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | 70.00% |
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 22, 2016 |
Dec. 10, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Jan. 19, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Dividend declared per share (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.38 | ||
Dividends | $ 106,000,000 | $ 106,000,000 | $ 106,017,000 | |||
Common stock repurchase amount authorized (up to) | $ 200,000,000 | |||||
Common stock, shares outstanding (in shares) | 230,471,202 | 230,471,202 | ||||
Share price (in dollars per share) | $ 11.63 | |||||
Diluted common stock equivalent, shares outstanding, adjustment | 67,510 | 3,476,404 | ||||
Fortress [Member] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Common stock, shares outstanding (in shares) | 2,400,000 |
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
$ / shares
shares
| ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options (in shares) | 12,380,107.000 | |||||||
Options Exercisable (in shares) | 6,447,546.000 | |||||||
Independent Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options (in shares) | 4,000 | |||||||
Independent Directors [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Directors | |||||||
Date of Grant | Various | [1] | ||||||
Number of options (in shares) | 4,000 | |||||||
Options Exercisable (in shares) | 4,000 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 13.58 | [2] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 0 | |||||||
2003 - 2007 [Member] | Manager [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Manager | [3] | ||||||
Date of Grant | 2003 - 2007 | [1],[3] | ||||||
Number of options (in shares) | 434,000 | [3] | ||||||
Options Exercisable (in shares) | 434,000 | [3] | ||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 31.36 | [2],[3] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 0 | [3] | ||||||
March 2011 [Member] | Manager [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Manager | [3] | ||||||
Date of Grant | 2011 - 2012 | [1],[3] | ||||||
Number of options (in shares) | 25,000 | [3] | ||||||
Options Exercisable (in shares) | 25,000 | [3] | ||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.19 | [2],[3] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 110 | [3] | ||||||
January 2013 [Member] | Manager [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Manager | [3] | ||||||
Date of Grant | 2013 | [1],[3] | ||||||
Number of options (in shares) | 1,936,068 | [3] | ||||||
Options Exercisable (in shares) | 1,936,068 | [3] | ||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 10.98 | [2],[3] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 1,270 | [3] | ||||||
April 2014 [Member] | Manager [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Manager | [3] | ||||||
Date of Grant | 2014 | [1],[3] | ||||||
Number of options (in shares) | 1,437,500 | [3] | ||||||
Options Exercisable (in shares) | 1,102,083 | [3] | ||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 12.20 | [2],[3] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 0 | [3] | ||||||
April 2015 [Member] | Manager [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recipient | Manager | [3] | ||||||
Date of Grant | 2015 | [1],[3] | ||||||
Number of options (in shares) | 8,543,539 | [3] | ||||||
Options Exercisable (in shares) | 2,946,395 | [3] | ||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 15.46 | [2],[3] | ||||||
Intrinsic Value of Exercisable Options | $ | $ 0 | [3] | ||||||
|
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 12,380,107.000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, Outstanding options (in shares) | 12,380,107 |
Options granted (in shares) | 0 |
Options exercised (in shares) | 0 |
Options expired unexercised (in shares) | 0 |
Ending balance, Outstanding options (in shares) | 12,380,107.000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted Average Exercise Price, Options granted (in dollars per share) | $ / shares | $ 0.00 |
Weighted Average Exercise Price, Options exercised (in dollars per share) | $ / shares | $ 0.00 |
Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 9,219,872 |
Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 3,156,235 |
Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 4,000 |
Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 12,380,107 |
Issued Prior to 2011 [Member] | Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 345,720 |
Issued Prior to 2011 [Member] | Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 88,280 |
Issued Prior to 2011 [Member] | Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 0 |
Issued Prior to 2011 [Member] | Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 434,000 |
Issued in 2011 - 2015 [Member] | Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 8,874,152 |
Issued in 2011 - 2015 [Member] | Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 3,067,955 |
Issued in 2011 - 2015 [Member] | Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 4,000 |
Issued in 2011 - 2015 [Member] | Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 11,946,107 |
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Options Assigned (Details) |
Mar. 31, 2016
shares
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 12,380,107.000 |
Options Granted in 2006 to 2007 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 88,280 |
Options Granted in 2013 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 1,100,497 |
Options Granted in 2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 258,750 |
Options Assigned [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 3,156,235 |
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - lawsuit |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Nov. 09, 2015 |
Feb. 13, 2015 |
Mar. 20, 2015 |
|
Putative Class Action Lawsuits [Member] | |||
Loss Contingencies [Line Items] | |||
Number of claims | 3 | ||
Shareholder Derivative Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Number of claims | 1 | 3 |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 15, 2013 |
|
Related Party Transaction [Line Items] | ||
Management agreement, renewal term | 1 year | |
Accruals for MSR Fund Payments (less than) | $ 0.1 | |
Nationstar [Member] | Credit Concentration Risk [Member] | Investment Interest Income - Excess MSRs [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of UPB of loans underlying investments | 64.30% | |
Nationstar [Member] | Credit Concentration Risk [Member] | Investment Interest Income - Servicer Advances [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of UPB of loans underlying investments | 34.80% | |
FIG LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Management fee rate (percent) | 1.50% | |
Incentive compensation percentage | 25.00% | |
Interest rate for incentive compensation | 10.00% | |
Nationstar [Member] | Residential Mortgage [Member] | ||
Related Party Transaction [Line Items] | ||
Unpaid Principal Balance | $ 543.5 | |
Nationstar [Member] | Real Estate Owned [Member] | ||
Related Party Transaction [Line Items] | ||
Unpaid balance of real estate owned | 26.6 | |
Nationstar [Member] | Non-Agency RMBS [Member] | ||
Related Party Transaction [Line Items] | ||
Face amount of investment | 2,800.0 | |
Unpaid Principal Balance | $ 11,900.0 | |
Redemption premium percentage | 0.75% | |
Nationstar [Member] | Agency RMBS [Member] | ||
Related Party Transaction [Line Items] | ||
Face amount of investment | $ 33.5 |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Schedule of Affiliate Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|||
Related Party Transaction [Line Items] | |||||
Due to Affiliate, Total | $ 5,847 | $ 23,785 | |||
Management fees | 10,008 | $ 5,126 | |||
Incentive compensation | 1,196 | 3,693 | |||
FIG LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Management fees | 3,336 | 6,671 | |||
Incentive compensation | 1,196 | 16,017 | |||
Expense reimbursements and other | 1,315 | 1,097 | |||
Due to Affiliate, Total | 5,847 | $ 23,785 | |||
Management fees | 10,008 | 5,126 | |||
Incentive compensation | 1,196 | 3,693 | |||
Expense reimbursements | [1] | 125 | 125 | ||
Total payments to affiliate | $ 11,329 | $ 8,944 | |||
|
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME - Summary of Amounts Reclassified out of Accumulated Other Comprehensive Income into Net Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other-than-temporary impairment (OTTI) on securities | $ 3,254 | $ 1,071 |
Total reclassifications | (115,938) | (41,798) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on settlement of investments, net | (133) | (24,697) |
Other-than-temporary impairment (OTTI) on securities | 3,254 | 1,071 |
Total reclassifications | $ 3,121 | $ (23,626) |
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Current: | ||
Federal | $ 458 | $ 736 |
State and Local | 0 | (1,156) |
Total Current Income Tax Expense (Benefit) | 458 | (420) |
Deferred: | ||
Federal | (9,450) | (1,323) |
State and Local | (1,231) | (1,684) |
Total Deferred Income Tax Expense (Benefit) | (10,681) | (3,007) |
Total Income Tax Expense (Benefit) | $ (10,223) | $ (3,427) |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax asset, net | $ 196,189 | $ 185,311 |
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Apr. 29, 2016 |
Apr. 30, 2016 |
Mar. 31, 2016 |
|
Subsequent Event [Line Items] | |||
Face amount of debt | $ 12,863,125 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividend declared per share (in dollars per share) | $ 0.46 | ||
Payment of common stock dividends | $ 106,000 | ||
Subsequent Event [Member] | Corporate Loan [Member] | Barclays Bank PLC [Member] | |||
Subsequent Event [Line Items] | |||
Face amount of debt | $ 225,000 | ||
Variable interest rate spread | 4.75% |
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