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Business Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
Financial information for our segments is as follows:
 
Three Months Ended September 30, 2019
Results of Operations 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Revenue
$
250,224

 
$
29,502

 
$
3,789

 
$
283,515

 
 
 
 
 
 
 
 
Expenses (1) (2)
890

 
20,665

 
23,169

 
44,724

 
 
 
 
 
 
 
 
Other (expense) income:
 
 
 
 
 
 
 
Interest income
2,105

 
1,688

 
336

 
4,129

Interest expense (3)
(268,545
)
 
(2,133
)
 
(15,244
)
 
(285,922
)
Gain on repurchase of senior secured notes

 

 
5,099

 
5,099

Other
3,917

 
498

 
(4,829
)
 
(414
)
Other (expense) income, net
(262,523
)
 
53

 
(14,638
)
 
(277,108
)
 
 
 
 
 
 
 
 
(Loss) income before income taxes
$
(13,189
)
 
$
8,890

 
$
(34,018
)
 
$
(38,317
)
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
Results of Operations 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Revenue
$
217,630

 
$
16,917

 
$
3,731

 
$
238,278

 
 
 
 
 
 
 
 
Expenses (1) (2)
185,077

 
18,954

 
13,495

 
217,526

 


 


 


 


Other (expense) income:
 
 
 
 
 
 
 
Interest income
2,242

 
1,255

 
466

 
3,963

Interest expense (3)
(47,359
)
 
(1,437
)
 
(12,492
)
 
(61,288
)
Other
(1,335
)
 
154

 
(2,519
)
 
(3,700
)
Other (expense) income, net
(46,452
)
 
(28
)
 
(14,545
)
 
(61,025
)
 
 
 
 
 
 
 
 
Loss before income taxes
$
(13,899
)
 
$
(2,065
)
 
$
(24,309
)
 
$
(40,273
)
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2019
Results of Operations 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Revenue
$
752,010

 
$
99,386

 
$
10,345

 
$
861,741

 
 
 
 
 
 
 
 
Expenses (1) (2) (4)
556,874

 
63,021

 
36,428

 
656,323

 
 
 
 
 
 
 
 
Other (expense) income:
 
 
 
 
 
 
 
Interest income
6,270

 
4,783

 
1,471

 
12,524

Interest expense (3)
(337,435
)
 
(5,200
)
 
(45,303
)
 
(387,938
)
Gain on repurchase of senior secured notes

 

 
5,099

 
5,099

Bargain purchase gain

 

 
(381
)
 
(381
)
Other
6,332

 
1,161

 
(5,949
)
 
1,544

Other (expense) income, net
(324,833
)
 
744

 
(45,063
)
 
(369,152
)
 
 
 
 
 
 
 
 
(Loss) income before income taxes
$
(129,697
)
 
$
37,109

 
$
(71,146
)
 
$
(163,734
)
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
Results of Operations 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Revenue
$
674,233

 
$
65,116

 
$
12,767

 
$
752,116

 
 
 
 
 
 
 
 
Expenses (1) (2)
523,061

 
57,036

 
49,580

 
629,677

 
 
 
 
 
 
 
 
Other (expense) income:
 
 
 
 
 
 
 
Interest income
4,136

 
4,107

 
1,775

 
10,018

Interest expense (3)
(144,551
)
 
(4,855
)
 
(40,195
)
 
(189,601
)
Other
(2,089
)
 
774

 
(5,254
)
 
(6,569
)
Other (expense) income, net
(142,504
)
 
26

 
(43,674
)
 
(186,152
)
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
8,668

 
$
8,106

 
$
(80,487
)
 
$
(63,713
)

(1)
Expenses in the Servicing segment includes MSR valuation adjustments, net.
(2)
Compensation and benefits expense in the Corporate Items and Other segment for the three and nine months ended September 30, 2019 and 2018 includes $(0.1) million and $19.1 million, and $0.3 million, and $7.5 million, respectively, of severance expense attributable to PHH integration-related headcount reductions of primarily U.S.-based employees in 2019 and severance expense attributable to headcount reductions in connection with our strategic decisions to exit the automotive capital services business and the forward lending correspondent and wholesale channels in late 2017 and early 2018, as well as our overall efforts to reduce costs.
(3)
Interest expense in the Servicing segment includes changes in the fair value of the Financing liability - MSRs pledged (Rights to MSRs).
(4)
Included in the Corporate Items and Other segment for the nine months ended September 30, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of 2019 of amounts previously recognized as expense.
Total Assets
 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
September 30, 2019
 
$
3,227,245

 
$
6,225,394

 
$
504,014

 
$
9,956,653

 
 
 
 
 
 
 
 
 
December 31, 2018
 
$
3,306,208

 
$
5,603,481

 
$
484,527

 
$
9,394,216

 
 
 
 
 
 
 
 
 
September 30, 2018
 
$
2,726,905

 
$
5,385,437

 
$
348,695

 
$
8,461,037

Depreciation and Amortization Expense
 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Three months ended September 30, 2019
Depreciation expense
 
$
105

 
$
(32
)
 
$
6,386

 
$
6,459

Amortization of debt discount
 

 

 
330

 
330

Amortization of debt issuance costs
 

 

 
816

 
816

 
 
 
 
 
 
 
 
 
Three months ended September 30, 2018
Depreciation expense
 
$
1,035

 
$
23

 
$
4,500

 
$
5,558

Amortization of debt discount
 

 

 
235

 
235

Amortization of debt issuance costs
 

 

 
599

 
599

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2019
Depreciation expense
 
$
1,674

 
$
49

 
$
24,297

 
$
26,020

Amortization of debt discount
 

 

 
1,031

 
1,031

Amortization of debt issuance costs
 

 

 
2,268

 
2,268

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
Depreciation expense
 
$
3,647

 
$
77

 
$
14,475

 
$
18,199

Amortization of debt discount
 

 

 
941

 
941

Amortization of debt issuance costs
 

 

 
2,261

 
2,261