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DEBT OBLIGATIONS (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
Activities related to the carrying value of New Residential’s debt obligations were as follows:
 
 
Excess MSRs
 
MSRs
 
Servicer Advances(A)
 
Real Estate Securities
 
Residential Mortgage Loans and REO
 
Consumer Loans
 
Total
Balance at December 31, 2016
 
$
729,145

 
$

 
$
5,549,872

 
$
4,419,002

 
$
783,006

 
$
1,700,211

 
$
13,181,236

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 

Borrowings
 

 

 

 
55,233,007

 
2,529,556

 

 
57,762,563

Repayments
 

 

 

 
(52,957,555
)
 
(1,334,952
)
 

 
(54,292,507
)
Capitalized deferred financing costs, net of amortization
 

 

 

 

 
1,449

 

 
1,449

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
1,400,354

 
1,172,058

 
5,344,985

 

 
140,323

 

 
8,057,720

Repayments
 
(1,650,409
)
 
(13,973
)
 
(6,838,862
)
 

 
(11,375
)
 
(456,904
)
 
(8,971,523
)
Discount on borrowings, net of amortization
 

 

 
(147
)
 

 

 
(700
)
 
(847
)
Capitalized deferred financing costs, net of amortization
 
4,888

 
(906
)
 
4,308

 

 

 
149

 
8,439

Balance at December 31, 2017
 
$
483,978

 
$
1,157,179

 
$
4,060,156

 
$
6,694,454

 
$
2,108,007

 
$
1,242,756

 
$
15,746,530

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shellpoint Acquisition
 

 

 

 
1,957

 
437,675

 

 
439,632

Borrowings
 

 

 

 
90,996,778

 
8,665,900

 

 
99,662,678

Repayments
 

 

 

 
(85,912,169
)
 
(7,298,734
)
 

 
(93,210,903
)
Capitalized deferred financing costs, net of amortization
 

 

 

 
(165
)
 
589

 

 
424

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shellpoint Acquisition
 

 
20,731

 

 

 
120,702

 

 
141,433

Borrowings
 
350,787

 
4,212,855

 
5,207,084

 

 
183

 

 
9,770,909

Repayments
 
(537,227
)
 
(3,022,785
)
 
(5,887,384
)
 

 
(136,947
)
 
(308,316
)
 
(9,892,659
)
Discount on borrowings, net of amortization
 

 

 
41

 

 

 
1,633

 
1,674

Unrealized loss on notes, fair value
 

 

 

 

 
684

 

 
684

Capitalized deferred financing costs, net of amortization
 
25

 
(7,124
)
 
2,558

 

 

 
374

 
(4,167
)
Balance at December 31, 2018
 
$
297,563

 
$
2,360,856

 
$
3,382,455

 
$
11,780,855

 
$
3,898,059

 
$
936,447

 
$
22,656,235


(A)
New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances.

The following table presents certain information regarding New Residential’s debt obligations:
 
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
Debt Obligations/Collateral
 
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)
 
$
4,346,070

 
$
4,346,070

 
Jan-19 to Feb-19
 
2.66
%
 
0.1
 
$
4,462,104

 
$
4,492,912

 
$
4,533,921

 
2.1
 
$
1,974,164

Non-Agency RMBS(E)
 
7,434,950

 
7,434,785

 
Jan-19 to Aug-19
 
3.54
%
 
0.1
 
17,057,929

 
8,459,512

 
8,877,653

 
7.0
 
4,720,290

Residential Mortgage Loans(F)
 
3,679,239

 
3,678,246

 
Feb-19 to Dec-20
 
4.24
%
 
0.6
 
4,498,036

 
4,222,366

 
4,218,615

 
11.9
 
1,849,004

Real Estate Owned(G) (H)
 
94,897

 
94,868

 
Feb-19 to Dec-20
 
4.38
%
 
0.8
 
N/A

 
N/A

 
116,381

 
N/A
 
118,681

Total Repurchase Agreements
 
15,555,156

 
15,553,969

 
 
 
3.46
%
 
0.3
 
 
 
 
 
 
 
 
 
8,662,139

Notes and Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess MSRs(I)
 
297,759

 
297,563

 
Feb-20 to Jul-22
 
5.15
%
 
2.7
 
119,363,054

 
372,901

 
470,498

 
5.7
 
483,978

MSRs(J)
 
2,368,885

 
2,360,856

 
Feb-19 to Jul-24
 
4.32
%
 
2.8
 
365,610,961

 
3,496,265

 
4,241,604

 
6.7
 
1,157,179

Servicer Advances(K)
 
3,386,234

 
3,382,455

 
Mar-19 to Dec-21
 
3.52
%
 
1.7
 
3,824,237

 
3,999,597

 
4,013,642

 
1.5
 
4,060,156

Residential Mortgage Loans(L)
 
122,816

 
122,465

 
Jan-19 to Jul-43
 
3.74
%
 
7.6
 
130,399

 
127,021

 
124,593

 
7.8
 
137,196

Consumer Loans(M)
 
939,735

 
936,447

 
Dec-21 to Mar-24
 
3.41
%
 
2.8
 
1,072,431

 
1,076,725

 
1,072,056

 
3.5
 
1,242,756

Receivable from government agency(L)
 
2,480

 
2,480

 
Jan-19
 
4.54
%
 
0.1
 
N/A

 
N/A

 
1,736

 
N/A
 
3,126

Total Notes and Bonds Payable
 
7,117,909

 
7,102,266

 
 
 
3.84
%
 
2.4
 
 
 
 
 
 
 
 
 
7,084,391

Total/Weighted Average
 
$
22,673,065

 
$
22,656,235

 
 
 
3.58
%
 
0.9
 
 
 
 
 
 
 
 
 
$
15,746,530


(A)
Net of deferred financing costs.
(B)
All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid.
(C)
These repurchase agreements had approximately $38.8 million of associated accrued interest payable as of December 31, 2018.
(D)
All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $3.9 billion of related trade and other receivables.
(E)
$7,193.4 million face amount of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates while the remaining $241.5 million face amount of the Non-Agency RMBS repurchase agreements have a fixed rate. This includes repurchase agreements of $163.6 million on retained servicer advance and consumer loan 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)
Includes $197.8 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.00%, and includes $100.0 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the interests in MSRs that secure these notes.
(J)
Includes: $645.3 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin ranging from 2.25% to 2.75%, and $1,723.6 million of public notes with fixed interest rates ranging from 3.55% to 4.62%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and mortgage servicing rights financing receivables that secure these notes.
(K)
$2.9 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 equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 2.0% to 2.2%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and mortgage servicing rights financing receivables owned by NRM.
(L)
Represents: (i) a $7.7 million note payable to Nationstar that bears interest equal to one-month LIBOR plus 2.88%, and (ii) $117.0 million fair value of SAFT 2013-1 mortgage-backed securities issued with fixed interest rates ranging from 3.50% to 3.76% (see Note 12 for details).
(M)
Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $671.0 million UPB of Class A notes with a coupon of 3.05% and a stated maturity date in November 2023; $210.8 million UPB of Class B notes with a coupon of 4.10% and a stated maturity date in March 2024; $18.3 million UPB of Class C-1 notes with a coupon of 5.63% and a stated maturity date in March 2024; $18.3 million UPB of Class C-2 notes with a coupon of 5.63% and a stated maturity date in March 2024. Also includes a $21.3 million face amount note which bears interest equal to 4.00%.
Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of December 31, 2018 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
2019
 
$
879,241

 
$
16,124,611

 
$
17,003,852

2020
 
771,582

 
181,854

 
953,436

2021
 
1,758,663

 
736,368

 
2,495,031

2022
 

 
197,759

 
197,759

2023
 
671,013

 
487,323

 
1,158,336

2024 and thereafter
 
364,770

 
499,881

 
864,651

 
 
$
4,445,269

 
$
18,227,796

 
$
22,673,065

Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of December 31, 2018:
Debt Obligations/ Collateral
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
Residential mortgage loans and REO
 
$
5,575,197

 
$
3,774,136

 
$
1,801,061

Non-Agency RMBS
 
250,000

 
241,535

 
8,465

Notes and Bonds Payable
 
 
 
 
 
 
Excess MSRs
 
150,000

 
100,000

 
50,000

MSRs
 
990,000

 
645,319

 
344,681

Servicer advances(A)
 
1,678,541

 
1,372,576

 
305,965

Consumer loans
 
150,000

 
21,303

 
128,697

 
 
$
8,793,738

 
$
6,154,869

 
$
2,638,869


(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 0.1% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained Non-Agency bonds collateralized by servicer advances with a current face amount of $86.3 million.