x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1653725 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
8950 Cypress Waters Blvd, Coppell, TX | 75019 | |
(Address of principal executive offices) | (Zip Code) | |
(469) 549-2000 | ||
Registrant’s telephone number, including area code | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, $0.01 par value per share | COOP | The Nasdaq Stock Market |
Large Accelerated Filer | ¨ | Accelerated Filer | x |
Non-Accelerated Filer | ¨ | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
Page | ||
PART I | ||
Item 1. | ||
Consolidated Balance Sheets as of March 31, 2019 (unaudited) and December 31, 2018 (Successor) | ||
Consolidated Statements of Operations (unaudited) for the Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018 | ||
Consolidated Statements of Stockholders’ Equity (unaudited) for the Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018 | ||
Consolidated Statements of Cash Flows (unaudited) for the Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
(unaudited) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 181 | $ | 242 | |||
Restricted cash | 339 | 319 | |||||
Mortgage servicing rights, $3,481 and $3,665 at fair value, respectively | 3,488 | 3,676 | |||||
Advances and other receivables, net of reserves of $71 and $47, respectively | 1,147 | 1,194 | |||||
Reverse mortgage interests, net of reserves of $8 and $13, respectively | 7,489 | 7,934 | |||||
Mortgage loans held for sale at fair value | 2,170 | 1,631 | |||||
Mortgage loans held for investment at fair value | 118 | 119 | |||||
Property and equipment, net of accumulated depreciation of $27 and $16, respectively | 112 | 96 | |||||
Deferred tax asset, net | 1,024 | 967 | |||||
Other assets | 1,578 | 795 | |||||
Total assets | $ | 17,646 | $ | 16,973 | |||
Liabilities and Stockholders’ Equity | |||||||
Unsecured senior notes, net | $ | 2,461 | $ | 2,459 | |||
Advance facilities, net | 578 | 595 | |||||
Warehouse facilities, net | 3,050 | 2,349 | |||||
Payables and other liabilities | 1,975 | 1,543 | |||||
MSR related liabilities - nonrecourse at fair value | 1,343 | 1,216 | |||||
Mortgage servicing liabilities | 90 | 71 | |||||
Other nonrecourse debt, net | 6,388 | 6,795 | |||||
Total liabilities | 15,885 | 15,028 | |||||
Commitments and contingencies (Note 18) | |||||||
Preferred stock at $0.00001 - 10 million shares authorized, 1 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively | — | — | |||||
Common stock at $0.01 par value - 300 million shares authorized, 91.0 million and 90.8 million shares issued, respectively | 1 | 1 | |||||
Additional paid-in-capital | 1,095 | 1,093 | |||||
Retained earnings | 662 | 848 | |||||
Total Mr. Cooper stockholders’ equity | 1,758 | 1,942 | |||||
Non-controlling interests | 3 | 3 | |||||
Total stockholders’ equity | 1,761 | 1,945 | |||||
Total liabilities and stockholders’ equity | $ | 17,646 | $ | 16,973 |
Successor | Predecessor | |||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Revenues: | ||||||||
Service related, net | $ | 84 | $ | 464 | ||||
Net gain on mortgage loans held for sale | 166 | 124 | ||||||
Total revenues | 250 | 588 | ||||||
Expenses: | ||||||||
Salaries, wages and benefits | 215 | 180 | ||||||
General and administrative | 228 | 184 | ||||||
Total expenses | 443 | 364 | ||||||
Other income (expenses): | ||||||||
Interest income | 134 | 145 | ||||||
Interest expense | (189 | ) | (171 | ) | ||||
Other income (expenses) | 15 | 8 | ||||||
Total other income (expenses), net | (40 | ) | (18 | ) | ||||
(Loss) income before income tax expense (benefit) | (233 | ) | 206 | |||||
Less: Income tax (benefit) expense | (47 | ) | 46 | |||||
Net (loss) income | (186 | ) | 160 | |||||
Less: Net (loss) income attributable to non-controlling interests | — | — | ||||||
Net (loss) income attributable to Successor/Predecessor | (186 | ) | 160 | |||||
Less: Undistributed earnings attributable to participating stockholders | — | — | ||||||
Net (loss) income attributable to common stockholders | $ | (186 | ) | $ | 160 | |||
Net (loss) income per common share attributable to Successor/Predecessor: | ||||||||
Basic | $ | (2.05 | ) | $ | 1.63 | |||
Diluted | $ | (2.05 | ) | $ | 1.61 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Share Amount | Total Nationstar Stockholders’ Equity and Mr. Cooper Stockholders’ Equity, respectively | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | — | $ | — | 97,728 | $ | 1 | $ | 1,131 | $ | 731 | $ | (148 | ) | $ | 1,715 | $ | 7 | $ | 1,722 | ||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 465 | — | (4 | ) | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4 | — | — | 4 | — | 4 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 160 | — | 160 | — | 160 | |||||||||||||||||||||||||||
Balance at March 31, 2018 | — | $ | — | 98,193 | $ | 1 | $ | 1,131 | $ | 891 | $ | (148 | ) | $ | 1,875 | $ | 7 | $ | 1,882 | ||||||||||||||||||
Successor | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 1,000 | $ | — | 90,821 | $ | 1 | $ | 1,093 | $ | 848 | $ | — | $ | 1,942 | $ | 3 | $ | 1,945 | |||||||||||||||||||
Shares issued under incentive compensation plan | — | — | 221 | — | (2 | ) | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4 | — | — | 4 | — | 4 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (186 | ) | — | (186 | ) | — | (186 | ) | ||||||||||||||||||||||||
Balance at March 31, 2019 | 1,000 | $ | — | 91,042 | $ | 1 | $ | 1,095 | $ | 662 | $ | — | $ | 1,758 | $ | 3 | $ | 1,761 |
Successor | Predecessor | |||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Operating Activities | ||||||||
Net (loss) income attributable to Successor/Predecessor | $ | (186 | ) | $ | 160 | |||
Adjustments to reconcile net (loss) income to net cash attributable to operating activities: | ||||||||
Deferred tax (benefit) expense | (47 | ) | 30 | |||||
Net gain on mortgage loans held for sale | (166 | ) | (124 | ) | ||||
Interest income on reverse mortgage loan | (82 | ) | (119 | ) | ||||
Gain on sale of assets | — | (9 | ) | |||||
Provision for servicing reserves | 11 | 38 | ||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 379 | (178 | ) | |||||
Fair value changes in excess spread financing | (69 | ) | 50 | |||||
Fair value changes in mortgage servicing rights financing liability | 2 | 24 | ||||||
Fair value changes in mortgage loan held for investment | (1 | ) | — | |||||
Amortization of premiums, net of discount accretion | 2 | 3 | ||||||
Depreciation and amortization for property and equipment and intangible assets | 21 | 15 | ||||||
Share-based compensation | 4 | 4 | ||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (364 | ) | (251 | ) | ||||
Mortgage loans originated and purchased for sale, net of fees | (5,717 | ) | (5,096 | ) | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 6,197 | 5,713 | ||||||
Changes in assets and liabilities: | ||||||||
Advances and other receivables | 120 | 270 | ||||||
Reverse mortgage interests | 614 | 382 | ||||||
Other assets | (216 | ) | 54 | |||||
Payables and other liabilities | (217 | ) | (29 | ) | ||||
Net cash attributable to operating activities | 285 | 937 | ||||||
Investing Activities | ||||||||
Acquisitions, net of cash acquired | (85 | ) | — | |||||
Property and equipment additions, net of disposals | (10 | ) | (16 | ) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (130 | ) | (17 | ) | ||||
Net payment related to acquisition of HECM related receivables | — | (1 | ) | |||||
Proceeds on sale of forward and reverse mortgage servicing rights | 243 | — | ||||||
Proceeds on sale of assets | — | 13 | ||||||
Net cash attributable to investing activities | 18 | (21 | ) |
Successor | Predecessor | |||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Financing Activities | ||||||||
Increase (decrease) in warehouse facilities | 307 | (125 | ) | |||||
Decrease in advance facilities | (30 | ) | (293 | ) | ||||
Repayment of notes payable | (294 | ) | — | |||||
Proceeds from issuance of HECM securitizations | — | 443 | ||||||
Proceeds from sale of HECM securitizations | 20 | — | ||||||
Repayment of HECM securitizations | (127 | ) | (317 | ) | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 86 | 90 | ||||||
Repayment of participating interest financing in reverse mortgage interests | (494 | ) | (664 | ) | ||||
Proceeds from the issuance of excess spread financing | 245 | — | ||||||
Settlement of excess spread financing | (50 | ) | (45 | ) | ||||
Repayment of nonrecourse debt – legacy assets | (3 | ) | (3 | ) | ||||
Repurchase of unsecured senior notes | — | (16 | ) | |||||
Repayment of finance lease liability | (1 | ) | — | |||||
Surrender of shares relating to stock vesting | (2 | ) | (4 | ) | ||||
Debt financing costs | (1 | ) | (5 | ) | ||||
Net cash attributable to financing activities | (344 | ) | (939 | ) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (41 | ) | (23 | ) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 561 | 575 | ||||||
Cash, cash equivalents, and restricted cash - end of period(1) | $ | 520 | $ | 552 | ||||
Supplemental Disclosures of Cash Activities | ||||||||
Cash paid for interest expense | $ | 74 | $ | 191 | ||||
Net cash paid for income taxes | $ | — | $ | 1 |
(1) | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amount reported within the consolidated balance sheets. |
Successor | Predecessor | |||||||
March 31, 2019 | March 31, 2018 | |||||||
Cash and cash equivalents | $ | 181 | $ | 187 | ||||
Restricted cash | 339 | 365 | ||||||
Total cash, cash equivalents, and restricted cash | $ | 520 | $ | 552 |
Preliminary Estimated Fair Value of Net Assets Acquired: | |||
Cash and cash equivalents | $ | 37 | |
Restricted cash | 2 | ||
Mortgage servicing rights | 271 | ||
Advances and other receivables | 84 | ||
Mortgage loans held for sale | 536 | ||
Mortgage loans held for investment | 1 | ||
Property and equipment | 10 | ||
Other assets | 483 | ||
Fair value of assets acquired | 1,424 | ||
Notes payable(1) | 294 | ||
Advance facilities | 13 | ||
Warehouse facilities | 393 | ||
Payables and other liabilities | 519 | ||
Other nonrecourse debt | 129 | ||
Fair value of liabilities assumed | 1,348 | ||
Total fair value of net tangible assets acquired | 76 | ||
Intangible assets: | |||
Customer relationships(2) | 11 | ||
Preliminary goodwill | 29 | ||
$ | 116 |
(1) | Notes payables was subsequently paid off in February 2019 after the consummation of the acquisition. |
(2) | The estimated fair values for customer relationships were measured using the excess earnings method and were determined to have a remaining useful life of 10 years. |
Three Months Ended March 31, 2019 | |||
Pro forma total revenues | $ | 269 | |
Pro forma net loss | $ | (184 | ) |
Purchase Price: | |||
Converted WMIH common shares (prior to reverse stock split) in millions | 394 | ||
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018 | $ | 1.398 | |
Purchase price from common stock issued | 551 | ||
Purchase price from cash payment | 1,226 | ||
Total purchase price | $ | 1,777 |
Preliminary Estimated Fair Value of Net Assets Acquired: | |||
Cash and cash equivalents | $ | 166 | |
Restricted cash | 430 | ||
Mortgage servicing rights | 3,422 | ||
Advances and other receivables | 1,262 | ||
Reverse mortgage interests | 9,189 | ||
Mortgage loans held for sale | 1,514 | ||
Mortgage loans held for investment | 125 | ||
Property and equipment | 96 | ||
Other assets | 610 | ||
Fair value of assets acquired | 16,814 | ||
Unsecured senior notes | 1,830 | ||
Advance facilities | 551 | ||
Warehouse facilities | 2,701 | ||
Payables and other liabilities | 1,352 | ||
MSR related liabilities—nonrecourse | 1,065 | ||
Mortgage servicing liabilities | 123 | ||
Other nonrecourse debt | 7,583 | ||
Fair value of liabilities assumed | 15,205 | ||
Total fair value of net tangible assets acquired | 1,609 | ||
Intangible assets(1) | 103 | ||
Preliminary goodwill | 65 | ||
$ | 1,777 |
(1) | The following intangible assets were acquired in the Nationstar acquisition. |
Useful Life (Years) | Fair Value | ||||
Customer relationships(i) | 6 | $ | 61 | ||
Tradename(ii) | 5 | 8 | |||
Technology(ii) | 3-5 | 11 | |||
Internally developed software(iii) | 2 | 23 | |||
Total | $ | 103 |
(i) | The estimated fair values for customer relationships were measured using the excess earnings method. |
(ii) | The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets. |
(iii) | The estimated fair values for internally developed software were measured using the replacement cost method. |
Successor | |||||||
MSRs and Related Liabilities | March 31, 2019 | December 31, 2018 | |||||
Forward MSRs - fair value | $ | 3,481 | $ | 3,665 | |||
Reverse MSRs - amortized cost | 7 | 11 | |||||
Mortgage servicing rights | $ | 3,488 | $ | 3,676 | |||
Mortgage servicing liabilities - amortized cost | $ | 90 | $ | 71 | |||
Excess spread financing - fair value | $ | 1,309 | $ | 1,184 | |||
Mortgage servicing rights financing - fair value | 34 | 32 | |||||
MSR related liabilities - nonrecourse at fair value | $ | 1,343 | $ | 1,216 |
Successor | Predecessor | |||||||
MSRs - Fair Value | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Fair value - beginning of period | $ | 3,665 | $ | 2,937 | ||||
Additions: | ||||||||
Servicing retained from mortgage loans sold | 66 | 68 | ||||||
Purchases of servicing rights(1) | 409 | 19 | ||||||
Dispositions: | ||||||||
Sales of servicing assets | (260 | ) | — | |||||
Changes in fair value: | ||||||||
Changes in valuation inputs or assumptions used in the valuation model | (332 | ) | 239 | |||||
Other changes in fair value | (67 | ) | (69 | ) | ||||
Fair value - end of period | $ | 3,481 | $ | 3,194 |
(1) | Purchases of servicing rights during the three months ended March 31, 2019 includes $271 of mortgage servicing rights that were acquired from Pacific Union. See Note 2, Acquisitions for further discussion. |
Successor | |||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||
MSRs - Sensitivity Pools | UPB | Fair Value | UPB | Fair Value | |||||||||||
Credit sensitive | $ | 153,565 | $ | 1,626 | $ | 135,752 | $ | 1,495 | |||||||
Interest sensitive | 150,127 | 1,855 | 159,729 | 2,170 | |||||||||||
Total | $ | 303,692 | $ | 3,481 | $ | 295,481 | $ | 3,665 |
Successor | |||||
March 31, 2019 | December 31, 2018 | ||||
Credit Sensitive | |||||
Discount rate | 11.3 | % | 11.3 | % | |
Total prepayment speeds | 13.5 | % | 11.8 | % | |
Expected weighted-average life | 6.0 years | 6.4 years | |||
Interest Sensitive | |||||
Discount rate | 9.4 | % | 9.3 | % | |
Total prepayment speeds | 12.5 | % | 10.0 | % | |
Expected weighted-average life | 6.1 years | 7.0 years |
Successor | |||||||||||||||
Discount Rate | Total Prepayment Speeds | ||||||||||||||
MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
March 31, 2019 | |||||||||||||||
Mortgage servicing rights | $ | (125 | ) | $ | (241 | ) | $ | (147 | ) | $ | (283 | ) | |||
December 31, 2018 | |||||||||||||||
Mortgage servicing rights | $ | (137 | ) | $ | (265 | ) | $ | (129 | ) | $ | (250 | ) |
Successor | |||||||
Excess Spread Financing | Prepayment Speeds | Average Life (Years) | Discount Rate | Recapture Rate | |||
March 31, 2019 | |||||||
Low | 6.8% | 4.7 | 8.5% | 7.9% | |||
High | 18.3% | 7.2 | 13.9% | 33.1% | |||
Weighted-average | 12.9% | 5.9 | 10.4% | 20.4% | |||
December 31, 2018 | |||||||
Low | 6.0% | 5.0 | 8.5% | 8.5% | |||
High | 16.7% | 8.1 | 13.9% | 30.5% | |||
Weighted-average | 11.0% | 6.5 | 10.4% | 18.6% |
Successor | |||||||||||||||
Discount Rate | Prepayment Speeds | ||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
March 31, 2019 | |||||||||||||||
Excess spread financing | $ | 50 | $ | 104 | $ | 50 | $ | 106 | |||||||
December 31, 2018 | |||||||||||||||
Excess spread financing | $ | 47 | $ | 99 | $ | 38 | $ | 81 |
Successor | |||||
Mortgage Servicing Rights Financing Assumptions | March 31, 2019 | December 31, 2018 | |||
Advance financing rates | 3.9 | % | 4.2 | % | |
Annual advance recovery rates | 19.3 | % | 19.0 | % |
Successor | Predecessor | |||||||
Servicing Revenue | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Contractually specified servicing fees(1) | $ | 281 | $ | 250 | ||||
Other service-related income(1)(2) | 50 | 28 | ||||||
Incentive and modification income(1) | 7 | 15 | ||||||
Late fees(1) | 25 | 24 | ||||||
Reverse servicing fees | 9 | 19 | ||||||
Mark-to-market adjustments(3) | (293 | ) | 152 | |||||
Counterparty revenue share(4) | (48 | ) | (45 | ) | ||||
Amortization, net of accretion(5) | (23 | ) | (48 | ) | ||||
Total servicing revenue | $ | 8 | $ | 395 |
(1) | Amounts include subservicing related revenues. |
(2) | Amount for the three months ended March 31, 2019 included a gain of $21 from the execution of a clean-up call option on a reverse mortgage loan trust, as the Company was the master servicer and holder of clean-up call rights. |
(3) | Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was $11 for the three months ended March 31, 2019. The impact of negative modeled cash flows for the Predecessor was $12 for three months ended March 31, 2018. |
(4) | Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSRs financing arrangements. |
(5) | Amortization is net of excess spread accretion of $36 and MSL accretion of $18 for the three months ended March 31, 2019. Amortization for the Predecessor is net of excess spread accretion of $30 for the three months ended March 31, 2018. The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Servicing advances, net of $169 and $205 discount, respectively | $ | 947 | $ | 952 | |||
Receivables from agencies, investors and prior servicers, net of $48 and $48 discount, respectively | 271 | 289 | |||||
Reserves | (71 | ) | (47 | ) | |||
Total advances and other receivables, net | $ | 1,147 | $ | 1,194 |
Successor | Predecessor | |||||||
Reserves for Advances and Other Receivables | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Balance - beginning of period | $ | 47 | $ | 284 | ||||
Provision and other additions(1) | 30 | 22 | ||||||
Write-offs | (6 | ) | (29 | ) | ||||
Balance - end of period | $ | 71 | $ | 277 |
(1) | The Company and the Predecessor recorded a provision of $11 and $12 through the MTM adjustments in service related revenues for the three months ended March 31, 2019 and 2018, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate. |
Successor | |||||||
Three Months Ended March 31, 2019 | |||||||
Purchase Discounts | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||
Balance - beginning of period | $ | 205 | $ | 48 | |||
Addition from acquisition | 19 | — | |||||
Utilization of purchase discounts | (55 | ) | — | ||||
Balance - end of period | $ | 169 | $ | 48 |
Successor | |||||||
Reverse Mortgage Interests, Net | March 31, 2019 | December 31, 2018 | |||||
Participating interests in HECM mortgage-backed securities (“HMBS”), net of $36 and $58 premium, respectively | $ | 5,293 | $ | 5,664 | |||
Other interests securitized, net of $112 and $100 discount, respectively | 950 | 1,064 | |||||
Unsecuritized interests, net of $95 and $122 discount, respectively | 1,254 | 1,219 | |||||
Reserves | (8 | ) | (13 | ) | |||
Total reverse mortgage interests, net | $ | 7,489 | $ | 7,934 |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Repurchased HECM loans (exceeds 98% MCA) | $ | 941 | $ | 949 | |||
HECM related receivables | 270 | 300 | |||||
Funded borrower draws not yet securitized | 114 | 76 | |||||
REO-related receivables | 24 | 16 | |||||
Purchase discount | (95 | ) | (122 | ) | |||
Total unsecuritized interests | $ | 1,254 | $ | 1,219 |
Successor | Predecessor | |||||||
Reserves for reverse mortgage interests | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Balance - beginning of period | $ | 13 | $ | 115 | ||||
Provision | — | 26 | ||||||
Write-offs | (5 | ) | (7 | ) | ||||
Balance - end of period | $ | 8 | $ | 134 |
Successor | |||||||||||
Three Months Ended March 31, 2019 | |||||||||||
Purchase premiums and discounts for reverse mortgage interests | Net Premium for Participating Interests in HMBS(1) | Net Discount for Other Interest Securitized(1) | Net Discount for Unsecuritized Interests(1) | ||||||||
Balance - beginning of period | $ | 58 | $ | (100 | ) | $ | (122 | ) | |||
Adjustments(2) | (16 | ) | (2 | ) | (6 | ) | |||||
Utilization of purchase discounts | — | 6 | 22 | ||||||||
(Amortization)/Accretion | (14 | ) | (15 | ) | 18 | ||||||
Transfers(3) | 8 | (1 | ) | (7 | ) | ||||||
Balance - end of period | $ | 36 | $ | (112 | ) | $ | (95 | ) |
(1) | Net position as certain items are in a premium/(discount) position, based on the characteristics of underlying tranches of loans. |
(2) | Adjustments to premium/(discount) due to revised cost to service assumption utilized in the valuation of reverse mortgage assets and liabilities acquired from the Merger. See Note 2, Acquisitions for additional information. |
(3) | Transfer of premium/(discount) based on the transfer of associated loans between categories based upon the underlying loan characteristics. |
Predecessor | |||
Purchase discounts for reverse mortgage interests | Three Months Ended March 31, 2018 | ||
Balance - beginning of period | $ | (89 | ) |
Additions | (7 | ) | |
Accretion | 6 | ||
Balance - end of period | $ | (90 | ) |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Mortgage loans held for sale – UPB | $ | 2,077 | $ | 1,568 | |||
Mark-to-market adjustment(1) | 93 | 63 | |||||
Total mortgage loans held for sale | $ | 2,170 | $ | 1,631 |
(1) | The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations. |
Successor | |||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||
Mortgage Loans Held for Sale - UPB | UPB | Fair Value | UPB | Fair Value | |||||||||||
Non-accrual(1) | $ | 26 | $ | 23 | $ | 45 | $ | 42 |
(1) | Non-accrual includes $22 and $40 of UPB related to Ginnie Mae repurchased loans as of March 31, 2019 and December 31, 2018, respectively. |
Successor | Predecessor | |||||||
Mortgage loans held for sale | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Balance - beginning of period | $ | 1,631 | $ | 1,891 | ||||
Mortgage loans originated and purchased, net of fees(1) | 6,252 | 5,088 | ||||||
Loans sold | (6,088 | ) | (5,649 | ) | ||||
Repurchase of loans out of Ginnie Mae securitizations | 364 | 251 | ||||||
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims(2) | (3 | ) | (3 | ) | ||||
Net transfer of mortgage loans held for sale from REO in other assets(3) | 3 | 8 | ||||||
Changes in fair value | 10 | (5 | ) | |||||
Other purchase-related activities(4) | 1 | 8 | ||||||
Balance - end of period | $ | 2,170 | $ | 1,589 |
(1) | Mortgage loans originated and purchased during the three months ended March 31, 2019 includes $536 of loans held for sale that were acquired from Pacific Union. See Note 2, Acquisitions for further discussion. |
(2) | Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale. |
(3) | Net amounts are comprised of REO in the sales process, which are transferred to other assets, and certain government insured mortgage REO, which are transferred from other assets upon completion of the sale so that the claims process can begin. |
(4) | Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Mortgage loans held for investment, net – UPB | $ | 153 | $ | 156 | |||
Fair value adjustments | (35 | ) | (37 | ) | |||
Total mortgage loans held for investment at fair value | $ | 118 | $ | 119 |
Successor | |||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||
Mortgage Loans Held for Investment - UPB | UPB | Fair Value | UPB | Fair Value | |||||||||||
Non-accrual | $ | 25 | $ | 11 | $ | 27 | $ | 13 |
Successor | |||
Mortgage loans held for investment at fair value | March 31, 2019 | ||
Balance - beginning of period | $ | 119 | |
Payments received from borrowers | (2 | ) | |
Changes in fair value | 1 | ||
Balance - end of period | $ | 118 |
Successor | |||
Three Months Ended March 31, 2019 | |||
Operating lease cost | $ | 8 | |
Short-term lease cost | 1 | ||
Sublease income(1) | — | ||
Net lease cost | $ | 9 |
(1) | Amount is less than $1. |
Successor | |||
Three Months Ended March 31, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 6 | |
Leased assets obtained in exchange for new operating lease liabilities | $ | 127 | |
Weighted-average remaining lease term - operating leases, in years | 5.5 | ||
Weighted-average discount rate - operating leases | 5.0 | % |
Year Ending December 31, | Operating Leases | |||
2019(1) | $ | 35 | ||
2020 | 31 | |||
2021 | 25 | |||
2022 | 16 | |||
2023 | 12 | |||
2024 and thereafter | 31 | |||
Total minimum lease payments | 150 | |||
Less: imputed interest | 8 | |||
Total lease liabilities | $ | 142 |
(1) | Excluding the three months ended March 31, 2019. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Loans subject to repurchase from Ginnie Mae | $ | 774 | $ | 266 | |||
Accrued revenues | 155 | 145 | |||||
Right-of-use assets | 133 | — | |||||
Intangible assets | 116 | 117 | |||||
Goodwill | 109 | 23 | |||||
Other | 291 | 244 | |||||
Total other assets | $ | 1,578 | $ | 795 |
Successor | ||||
Three Months Ended March 31, 2019 | ||||
Balance - beginning of period | $ | 23 | ||
Additions from acquisitions(1) | 31 | |||
Measurement period adjustment related to Merger(2) | 55 | |||
Balance - end of period | $ | 109 |
(1) | As discussed in Note 2, Acquisitions, the Company recorded goodwill of $29 in connection with the acquisition of Pacific Union. In addition, on February 28, 2019, the Company completed the acquisition of the Seterus mortgage servicing platform and assumed certain assets related thereto from IBM. In connection with this acquisition, the Company recorded $2 in goodwill. |
(2) | The Company recorded a total measurement period adjustment of $55 to goodwill in 2019 related to the acquisition of Nationstar. See further discussion in Note 2, Acquisitions |
Successor | |||||||||||||
March 31, 2019 | Three Months Ended March 31, 2019 | ||||||||||||
Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | ||||||||||
Assets | |||||||||||||
Mortgage loans held for sale | |||||||||||||
Loan sale commitments | 2019 | $ | 365 | $ | 17.2 | $ | (8.7 | ) | |||||
Derivative financial instruments | |||||||||||||
IRLCs | 2019 | 2,557 | 68.9 | 9.1 | |||||||||
Forward sales of MBS | 2019 | 410 | 1.3 | (0.5 | ) | ||||||||
LPCs | 2019 | 216 | 2.0 | 0.3 | |||||||||
Eurodollar futures(1) | 2019-2021 | 7 | — | — | |||||||||
Liabilities | |||||||||||||
Derivative financial instruments | |||||||||||||
IRLCs(1) | 2019 | — | — | — | |||||||||
Forward sales of MBS | 2019 | 3,804 | 21.3 | (2.6 | ) | ||||||||
LPCs | 2019 | 52 | 0.2 | (0.2 | ) | ||||||||
Eurodollar futures(1) | 2019-2021 | 13 | — | — |
Predecessor | |||||||||||||
March 31, 2018 | Three Months Ended March 31, 2018 | ||||||||||||
Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | ||||||||||
Assets | |||||||||||||
Mortgage loans held for sale | |||||||||||||
Loan sale commitments | 2018 | $ | 427 | $ | 8.9 | $ | 8.8 | ||||||
Derivative financial instruments | |||||||||||||
IRLCs | 2018 | 1,968 | 57.4 | (1.9 | ) | ||||||||
Forward sales of MBS | 2018 | 1,130 | 5.7 | 3.3 | |||||||||
LPCs | 2018 | 223 | 1.0 | 0.1 | |||||||||
Treasury futures | 2018 | 331 | 1.3 | (0.6 | ) | ||||||||
Eurodollar futures(1) | 2018-2021 | 30 | — | — | |||||||||
Liabilities | |||||||||||||
Derivative financial instruments | |||||||||||||
IRLCs(1) | 2018 | 8 | — | — | |||||||||
Forward sales of MBS | 2018 | 2,384 | 7.3 | 4.5 | |||||||||
LPCs | 2018 | 116 | 0.5 | (0.1 | ) | ||||||||
Treasury futures | 2018 | 223 | 1.2 | (0.2 | ) | ||||||||
Eurodollar futures(1) | 2020-2021 | 6 | — | — |
(1) | Fair values or recorded gains/(losses) of derivative instruments are less than $0.1 for the specified dates. |
Successor | ||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Advance Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | ||||||||||||||||||
Nationstar agency advance receivables trust | LIBOR+1.5% to 2.6% | December 2020 | Servicing advance receivables | $ | 350 | $ | 225 | $ | 262 | $ | 218 | $ | 255 | |||||||||||||
Nationstar mortgage advance receivable trust | LIBOR+1.5% to 6.5% | August 2021 | Servicing advance receivables | 325 | 195 | 265 | 209 | 284 | ||||||||||||||||||
MBS servicer advance facility (2014) | LIBOR+2.5% | December 2019 | Servicing advance receivables | 135 | 89 | 160 | 90 | 149 | ||||||||||||||||||
Nationstar agency advance financing facility | LIBOR+1.5% to 7.4% | July 2020 | Servicing advance receivables | 125 | 69 | 78 | 78 | 89 | ||||||||||||||||||
Advance facilities principal amount | 578 | $ | 765 | 595 | $ | 777 | ||||||||||||||||||||
Unamortized debt issuance costs | — | — | ||||||||||||||||||||||||
Advance facilities, net | $ | 578 | $ | 595 |
Successor | ||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Warehouse Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral pledged | Outstanding | Collateral pledged | ||||||||||||||||||
$1,000 warehouse facility | LIBOR+1.6% to 2.5% | September 2019 | Mortgage loans or MBS | $ | 1,000 | $ | 210 | $ | 215 | $ | 137 | $ | 140 | |||||||||||||
$950 warehouse facility | LIBOR+1.7% to 3.5% | November 2019 | Mortgage loans or MBS | 950 | 462 | 525 | 560 | 622 | ||||||||||||||||||
$800 warehouse facility(1) | LIBOR+1.9% to 2.9% | April 2020 | Mortgage loans or MBS | 800 | 388 | 491 | 464 | 514 | ||||||||||||||||||
$600 warehouse facility | LIBOR+2.3% | February 2020 | Mortgage loans or MBS | 600 | 168 | 188 | 151 | 168 | ||||||||||||||||||
$500 warehouse facility | LIBOR+2.0% to 2.3% | September 2020 | Mortgage loans or MBS | 500 | 427 | 441 | 290 | 299 | ||||||||||||||||||
$500 warehouse facility | LIBOR+1.5% to 2.8% | November 2019 | Mortgage loans or MBS | 500 | 223 | 250 | 220 | 248 | ||||||||||||||||||
$500 warehouse facility | LIBOR+1.5% to 3.0% | April 2020 | Mortgage loans or MBS | 500 | 218 | 235 | 187 | 200 | ||||||||||||||||||
$500 warehouse facility | LIBOR+1.8% to 2.8% | August 2019 | Mortgage loans or MBS | 500 | 115 | 118 | 119 | 122 | ||||||||||||||||||
$250 warehouse facility | LIBOR+1.9% to 2.5% | May 2019(2) | Mortgage loans or MBS | 250 | 245 | 246 | — | — | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.5% | October 2019 | Mortgage loans or MBS | 200 | 186 | 187 | — | — | ||||||||||||||||||
$200 warehouse facility | LIBOR+2.3% | January 2020 | Mortgage loans or MBS | 200 | 75 | 100 | 103 | 132 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.6% | April 2021 | Mortgage loans or MBS | 200 | — | — | 18 | 19 | ||||||||||||||||||
$165 warehouse facility | LIBOR+1.5% | August 2019 | Mortgage loans or MBS | 165 | 67 | 68 | — | — | ||||||||||||||||||
$50 warehouse facility | LIBOR+2.7% to 4.3% | June 2019 | Mortgage loans or MBS | 50 | 6 | 9 | — | — | ||||||||||||||||||
$40 warehouse facility | LIBOR+3.0% | November 2019 | Mortgage loans or MBS | 40 | 1 | 3 | 1 | 2 | ||||||||||||||||||
Warehouse facilities principal amount | 2,791 | 3,076 | 2,250 | 2,466 | ||||||||||||||||||||||
MSR | ||||||||||||||||||||||||||
$200 warehouse facility(1) | LIBOR+3.8% | April 2020 | Mortgage loans or MBS | 200 | 50 | 232 | — | 430 | ||||||||||||||||||
$200 warehouse facility | LIBOR+4.0% | June 2020 | Mortgage loans or MBS | 200 | 100 | 884 | 100 | 928 | ||||||||||||||||||
$175 warehouse facility | LIBOR+2.3% | December 2020 | Mortgage loans or MBS | 175 | 70 | 129 | — | 226 | ||||||||||||||||||
$50 warehouse facility | LIBOR+2.8% | August 2020 | Mortgage loans or MBS | 50 | 40 | 95 | — | 102 | ||||||||||||||||||
260 | 1,340 | 100 | 1,686 | |||||||||||||||||||||||
Warehouse facilities principal amount | 3,051 | $ | 4,416 | 2,350 | $ | 4,152 | ||||||||||||||||||||
Unamortized debt issuance costs | (1 | ) | (1 | ) | ||||||||||||||||||||||
Warehouse facilities, net | $ | 3,050 | $ | 2,349 | ||||||||||||||||||||||
Pledged Collateral: | ||||||||||||||||||||||||||
Mortgage loans and mortgage loans held for investment | $ | 2,027 | $ | 2,177 | $ | 1,528 | $ | 1,628 | ||||||||||||||||||
Reverse mortgage interests | 764 | 899 | 722 | 838 | ||||||||||||||||||||||
MSR | 260 | 1,340 | 100 | 1,686 |
(1) | Total capacity amount for this facility is $800 of which $200 is a sublimit for MSR financing. |
(2) | This facility was terminated in April 2019. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | $ | 950 | $ | 950 | |||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | 750 | 750 | |||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021 | 592 | 592 | |||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022 | 206 | 206 | |||||
Unsecured senior notes principal amount | 2,498 | 2,498 | |||||
Unamortized debt issuance costs, net of premium, and discount | (37 | ) | (39 | ) | |||
Unsecured senior notes, net | $ | 2,461 | $ | 2,459 |
Year Ending December 31, | Amount | |||
2019 | $ | — | ||
2020 | — | |||
2021 | 592 | |||
2022 | 206 | |||
2023 | 950 | |||
Thereafter | 750 | |||
Total | $ | 2,498 |
Successor | |||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||
Issue Date | Maturity Date | Class of Note | Securitized Amount | Outstanding | Outstanding | ||||||||||||
Participating interest financing(1) | — | — | — | $ | — | $ | 5,319 | $ | 5,607 | ||||||||
Securitization of nonperforming HECM loans | |||||||||||||||||
Trust 2017-2 | September 2017 | September 2027 | A, M1, M2 | 263 | 207 | 231 | |||||||||||
Trust 2018-1 | March 2018 | March 2028 | A, M1, M2, M3, M4, M5 | 279 | 252 | 284 | |||||||||||
Trust 2018-2 | August 2018 | August 2028 | A, M1, M2, M3, M4, M5 | 226 | 213 | 250 | |||||||||||
Trust 2018-3 | November 2018 | November 2028 | A, M1, M2, M3, M4, M5 | 321 | 312 | 326 | |||||||||||
Nonrecourse debt - legacy assets | November 2009 | October 2039 | A | 101 | 26 | 29 | |||||||||||
Other nonrecourse debt principal amount | 6,329 | 6,727 | |||||||||||||||
Unamortized debt issuance costs, net of premium, and issuance discount | 59 | 68 | |||||||||||||||
Other nonrecourse debt, net | $ | 6,388 | $ | 6,795 |
(1) | Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Loans subject to repurchase from Ginnie Mae | $ | 774 | $ | 266 | |||
Payables to servicing and subservicing investors | 483 | 494 | |||||
Operating lease liability | 142 | — | |||||
Payables to GSEs and securitized trusts | 57 | 105 | |||||
MSR purchases payable including advances | 30 | 182 | |||||
Other Liabilities | 489 | 496 | |||||
Total payables and other liabilities | $ | 1,975 | $ | 1,543 |
Successor | Predecessor | |||||||
Repurchase Reserves | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Balance - beginning of period | $ | 8 | $ | 9 | ||||
Provisions(1) | 8 | 1 | ||||||
Releases | — | (1 | ) | |||||
Charge-offs | — | — | ||||||
Balance - end of period | $ | 16 | $ | 9 |
(1) | Provision for the three months ended March 31, 2019 is primarily due to repurchase reserve liability assumed in connection with the acquisition of Pacific Union. See Note 2, Acquisitions for further information. |
Successor | |||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||
Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | ||||||||||||
Assets | |||||||||||||||
Restricted cash | $ | 98 | $ | 49 | $ | 70 | $ | 63 | |||||||
Reverse mortgage interests, net | — | 6,319 | — | 6,770 | |||||||||||
Advances and other receivables, net | 605 | — | 628 | — | |||||||||||
Mortgage loans held for investment, net | 117 | — | 118 | — | |||||||||||
Other assets | — | — | — | — | |||||||||||
Total assets | $ | 820 | $ | 6,368 | $ | 816 | $ | 6,833 | |||||||
Liabilities | |||||||||||||||
Advance facilities(1) | $ | 488 | $ | — | $ | 505 | $ | — | |||||||
Payables and other liabilities | 1 | 1 | 1 | 1 | |||||||||||
Participating interest financing | — | 5,319 | — | 5,607 | |||||||||||
HECM Securitizations (HMBS) | |||||||||||||||
Trust 2017-2 | — | 207 | — | 231 | |||||||||||
Trust 2018-1 | — | 252 | — | 284 | |||||||||||
Trust 2018-2 | — | 213 | — | 250 | |||||||||||
Trust 2018-3 | — | 312 | — | 326 | |||||||||||
Nonrecourse debt–legacy assets | 26 | — | 29 | — | |||||||||||
Total liabilities | $ | 515 | $ | 6,304 | $ | 535 | $ | 6,699 |
(1) | Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in Note 10, Indebtedness, for additional information. |
Successor | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Total collateral balances | $ | 1,811 | $ | 1,873 | |||
Total certificate balances | $ | 1,757 | $ | 1,817 |
Successor | |||||||
Principal Amount of Loans 60 Days or More Past Due | March 31, 2019 | December 31, 2018 | |||||
Unconsolidated securitization trusts | $ | 252 | $ | 285 |
Successor | Predecessor | |||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net (loss) income attributable to Successor/Predecessor | $ | (186 | ) | $ | 160 | |||
Less: Undistributed earnings attributable to participating stockholders | — | — | ||||||
Net (loss) income attributable to common stockholders | $ | (186 | ) | $ | 160 | |||
Net (loss) income per common share attributable to Successor/Predecessor: | ||||||||
Basic | $ | (2.05 | ) | $ | 1.63 | |||
Diluted | $ | (2.05 | ) | $ | 1.61 | |||
Weighted average shares of common stock outstanding (in thousands): | ||||||||
Basic | 90,828 | 97,873 | ||||||
Dilutive effect of stock awards | — | 1,238 | ||||||
Dilutive effect of participating securities | — | — | ||||||
Diluted | 90,828 | 99,111 |
Successor | Predecessor | |||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
(Loss) income before income tax expense (benefit) | $ | (233 | ) | $ | 206 | |||
Income tax (benefit) expense | $ | (47 | ) | $ | 46 | |||
Effective tax rate | 20.3 | % | 22.4 | % |
Successor | |||||||||||||||
March 31, 2019 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale(1) | $ | 2,170.2 | $ | — | $ | 2,170.2 | $ | — | |||||||
Mortgage loans held for investment(1) | 117.8 | — | 117.8 | ||||||||||||
Mortgage servicing rights(1) | 3,481.0 | — | — | 3,481.0 | |||||||||||
Derivative financial instruments | |||||||||||||||
IRLCs | 68.9 | — | 68.9 | — | |||||||||||
Forward MBS trades | 1.3 | — | 1.3 | — | |||||||||||
LPCs | 2.0 | — | 2.0 | — | |||||||||||
Eurodollar futures(2) | — | — | — | — | |||||||||||
Total assets | $ | 5,841.2 | $ | — | $ | 2,242.4 | $ | 3,598.8 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | |||||||||||||||
IRLCs(2) | $ | — | $ | — | $ | — | $ | — | |||||||
Forward MBS trades | 21.3 | — | 21.3 | — | |||||||||||
LPCs | 0.2 | — | 0.2 | — | |||||||||||
Eurodollar futures(2) | — | — | — | — | |||||||||||
Mortgage servicing rights financing | 33.7 | — | — | 33.7 | |||||||||||
Excess spread financing | 1,309.2 | — | — | 1,309.2 | |||||||||||
Total liabilities | $ | 1,364.4 | $ | — | $ | 21.5 | $ | 1,342.9 |
(1) | Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. |
(2) | Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. |
Successor | |||||||||||||||
December 31, 2018 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale(1) | $ | 1,630.8 | $ | — | $ | 1,630.8 | $ | — | |||||||
Mortgage loans held for investment(1) | 119.1 | — | — | 119.1 | |||||||||||
Forward mortgage servicing rights(1) | 3,665.4 | — | — | 3,665.4 | |||||||||||
Derivative financial instruments | |||||||||||||||
IRLCs | 47.6 | — | 47.6 | — | |||||||||||
Forward MBS trades | 0.1 | — | 0.1 | — | |||||||||||
LPCs | 1.7 | — | 1.7 | — | |||||||||||
Eurodollar futures(2) | — | — | — | — | |||||||||||
Total assets | $ | 5,464.7 | $ | — | $ | 1,680.2 | $ | 3,784.5 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Forward MBS trades | $ | 19.3 | $ | — | $ | 19.3 | $ | — | |||||||
LPCs | 0.4 | — | 0.4 | — | |||||||||||
Eurodollar futures(2) | — | — | — | — | |||||||||||
Mortgage servicing rights financing | 31.7 | — | — | 31.7 | |||||||||||
Excess spread financing | 1,184.4 | — | — | 1,184.4 | |||||||||||
Total liabilities | $ | 1,235.8 | $ | — | $ | 19.7 | $ | 1,216.1 |
(1) | Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. |
(2) | Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. |
Successor | |||||||||||||||
Assets | Liabilities | ||||||||||||||
Three Months Ended March 31, 2019 | Mortgage servicing rights | Mortgage loans held for investment | Excess spread financing | Mortgage servicing rights financing | |||||||||||
Balance - beginning of period | $ | 3,665 | $ | 119 | $ | 1,184 | $ | 32 | |||||||
Total gains or losses included in earnings | (399 | ) | 1 | (69 | ) | 2 | |||||||||
Payments received from borrowers | — | (2 | ) | — | — | ||||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||||||
Purchases | 409 | — | — | — | |||||||||||
Issuances | 66 | — | 245 | — | |||||||||||
Sales | (260 | ) | — | — | — | ||||||||||
Repayments | — | — | (1 | ) | — | ||||||||||
Settlements | — | — | (50 | ) | — | ||||||||||
Balance - end of period | $ | 3,481 | $ | 118 | $ | 1,309 | $ | 34 |
Predecessor | |||||||||||
Assets | Liabilities | ||||||||||
Three Months Ended March 31, 2018 | Mortgage servicing rights | Excess spread financing | Mortgage servicing rights financing | ||||||||
Balance - beginning of period | $ | 2,937 | $ | 996 | $ | 10 | |||||
Total gains or losses included in earnings | 170 | 50 | 24 | ||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||
Purchases | 19 | — | — | ||||||||
Issuances | 68 | — | — | ||||||||
Sales | — | — | — | ||||||||
Repayments | — | — | — | ||||||||
Settlements | — | (45 | ) | — | |||||||
Balance - end of period | $ | 3,194 | $ | 1,001 | $ | 34 |
Successor | |||||||||||||||
March 31, 2019 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 181 | $ | 181 | $ | — | $ | — | |||||||
Restricted cash | 339 | 339 | — | — | |||||||||||
Advances and other receivables, net | 1,147 | — | — | 1,147 | |||||||||||
Reverse mortgage interests, net | 7,489 | — | — | 7,501 | |||||||||||
Mortgage loans held for sale | 2,170 | — | 2,170 | — | |||||||||||
Mortgage loans held for investment, net | 118 | — | — | 118 | |||||||||||
Derivative financial instruments | 72 | — | 72 | — | |||||||||||
Financial liabilities | |||||||||||||||
Unsecured senior notes | 2,461 | 2,516 | — | — | |||||||||||
Advance facilities | 578 | — | 578 | — | |||||||||||
Warehouse facilities | 3,050 | — | 3,050 | — | |||||||||||
Mortgage servicing rights financing liability | 34 | — | — | 34 | |||||||||||
Excess spread financing | 1,309 | — | — | 1,309 | |||||||||||
Derivative financial instruments | 22 | — | 22 | — | |||||||||||
Participating interest financing | 5,378 | — | — | 5,364 | |||||||||||
HECM Securitization (HMBS) | |||||||||||||||
Trust 2017-1 | 207 | — | — | 206 | |||||||||||
Trust 2017-2 | 252 | — | — | 252 | |||||||||||
Trust 2018-1 | 213 | — | — | 212 | |||||||||||
Trust 2018-2 | 312 | — | — | 312 | |||||||||||
Nonrecourse debt - legacy assets | 26 | — | — | 25 |
Successor | |||||||||||||||
December 31, 2018 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 242 | $ | 242 | $ | — | $ | — | |||||||
Restricted cash | 319 | 319 | — | — | |||||||||||
Advances and other receivables, net | 1,194 | — | — | 1,194 | |||||||||||
Reverse mortgage interests, net | 7,934 | — | — | 7,942 | |||||||||||
Mortgage loans held for sale | 1,631 | — | 1,631 | — | |||||||||||
Mortgage loans held for investment, net | 119 | — | — | 119 | |||||||||||
Derivative financial instruments | 49 | — | 49 | — | |||||||||||
Financial liabilities | |||||||||||||||
Unsecured senior notes | 2,459 | 2,451 | — | — | |||||||||||
Advance facilities | 595 | — | 595 | — | |||||||||||
Warehouse facilities | 2,349 | — | 2,349 | — | |||||||||||
Mortgage servicing rights financing liability | 32 | — | — | 32 | |||||||||||
Excess spread financing | 1,184 | — | — | 1,184 | |||||||||||
Derivative financial instruments | 20 | — | 20 | — | |||||||||||
Participating interest financing | 5,675 | — | — | 5,672 | |||||||||||
HECM Securitization (HMBS) | |||||||||||||||
Trust 2017-2 | 231 | — | — | 230 | |||||||||||
Trust 2018-1 | 284 | — | — | 284 | |||||||||||
Trust 2018-2 | 250 | — | — | 249 | |||||||||||
Trust 2018-3 | 326 | — | — | 326 | |||||||||||
Nonrecourse debt - legacy assets | 29 | — | — | 28 |
Successor | |||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Eliminations | Total Operating Segments | Corporate and Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 8 | $ | 15 | $ | 96 | $ | (35 | ) | $ | 84 | $ | — | $ | 84 | ||||||||||||
Net gain on mortgage loans held for sale | — | 131 | — | 35 | 166 | — | 166 | ||||||||||||||||||||
Total revenues | 8 | 146 | 96 | — | 250 | — | 250 | ||||||||||||||||||||
Total Expenses | 195 | 104 | 99 | — | 398 | 45 | 443 | ||||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||||||
Interest income | 115 | 17 | — | — | 132 | 2 | 134 | ||||||||||||||||||||
Interest expense | (114 | ) | (18 | ) | — | — | (132 | ) | (57 | ) | (189 | ) | |||||||||||||||
Other | — | 4 | 11 | — | 15 | — | 15 | ||||||||||||||||||||
Total Other Income (Expenses), Net | 1 | 3 | 11 | — | 15 | (55 | ) | (40 | ) | ||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (186 | ) | $ | 45 | $ | 8 | $ | — | $ | (133 | ) | $ | (100 | ) | $ | (233 | ) | |||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 4 | $ | 3 | $ | 4 | $ | — | $ | 11 | $ | 10 | $ | 21 | |||||||||||||
Total assets | $ | 13,642 | $ | 4,865 | $ | 502 | $ | (4,100 | ) | $ | 14,909 | $ | 2,737 | $ | 17,646 |
Predecessor | |||||||||||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Eliminations | Total Operating Segments | Corporate and Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 395 | $ | 15 | $ | 65 | $ | (11 | ) | $ | 464 | $ | — | $ | 464 | ||||||||||||
Net gain on mortgage loans held for sale | — | 113 | — | 11 | 124 | — | 124 | ||||||||||||||||||||
Total revenues | 395 | 128 | 65 | — | 588 | — | 588 | ||||||||||||||||||||
Total Expenses | 182 | 109 | 52 | — | 343 | 21 | 364 | ||||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||||||
Interest income | 126 | 15 | — | — | 141 | 4 | 145 | ||||||||||||||||||||
Interest expense | (118 | ) | (15 | ) | — | — | (133 | ) | (38 | ) | (171 | ) | |||||||||||||||
Other | (1 | ) | — | 9 | — | 8 | — | 8 | |||||||||||||||||||
Total Other Income (Expenses), Net | 7 | — | 9 | — | 16 | (34 | ) | (18 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 220 | $ | 19 | $ | 22 | $ | — | $ | 261 | $ | (55 | ) | $ | 206 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 7 | $ | 3 | $ | 3 | $ | — | $ | 13 | $ | 2 | $ | 15 | |||||||||||||
Total assets | $ | 15,224 | $ | 4,710 | $ | 413 | $ | (3,302 | ) | $ | 17,045 | $ | 819 | $ | 17,864 |
(1) | Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes. |
MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 151 | $ | 1 | $ | 29 | $ | — | $ | 181 | |||||||||||
Restricted cash | — | 191 | — | 148 | — | 339 | |||||||||||||||||
Mortgage servicing rights | — | 3,460 | — | 28 | — | 3,488 | |||||||||||||||||
Advances and other receivables, net | — | 1,147 | — | — | — | 1,147 | |||||||||||||||||
Reverse mortgage interests, net | — | 6,427 | — | 1,062 | — | 7,489 | |||||||||||||||||
Mortgage loans held for sale at fair value | — | 2,170 | — | — | — | 2,170 | |||||||||||||||||
Mortgage loans held for investment at fair value | — | 1 | — | 117 | — | 118 | |||||||||||||||||
Property and equipment, net | — | 99 | — | 13 | — | 112 | |||||||||||||||||
Deferred tax asset, net | 984 | 38 | — | 2 | — | 1,024 | |||||||||||||||||
Other assets | — | 1,435 | 204 | 601 | (662 | ) | 1,578 | ||||||||||||||||
Investment in subsidiaries | 2,602 | 609 | — | — | (3,211 | ) | — | ||||||||||||||||
Total assets | $ | 3,586 | $ | 15,728 | $ | 205 | $ | 2,000 | $ | (3,873 | ) | $ | 17,646 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Unsecured senior notes, net | $ | 1,662 | $ | 799 | $ | — | $ | — | $ | — | $ | 2,461 | |||||||||||
Advance facilities, net | — | 89 | — | 489 | — | 578 | |||||||||||||||||
Warehouse facilities, net | — | 3,050 | — | — | — | 3,050 | |||||||||||||||||
Payables and accrued liabilities | 22 | 1,870 | 2 | 81 | — | 1,975 | |||||||||||||||||
MSR related liabilities - nonrecourse at fair value | — | 1,326 | — | 17 | — | 1,343 | |||||||||||||||||
Mortgage servicing liabilities | — | 90 | — | — | — | 90 | |||||||||||||||||
Other nonrecourse debt, net | — | 5,381 | — | 1,007 | — | 6,388 | |||||||||||||||||
Payables to affiliates | 141 | 521 | — | — | (662 | ) | — | ||||||||||||||||
Total liabilities | 1,825 | 13,126 | 2 | 1,594 | (662 | ) | 15,885 | ||||||||||||||||
Total stockholders’ equity | 1,761 | 2,602 | 203 | 406 | (3,211 | ) | 1,761 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,586 | $ | 15,728 | $ | 205 | $ | 2,000 | $ | (3,873 | ) | $ | 17,646 |
(1) | Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | (19 | ) | $ | 6 | $ | 97 | $ | — | $ | 84 | ||||||||||
Net gain on mortgage loans held for sale | — | 166 | — | — | — | 166 | |||||||||||||||||
Total revenues | — | 147 | 6 | 97 | — | 250 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages benefits | — | 174 | 1 | 40 | — | 215 | |||||||||||||||||
General and administrative | — | 165 | 1 | 62 | — | 228 | |||||||||||||||||
Total expenses | — | 339 | 2 | 102 | — | 443 | |||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||
Interest income | — | 118 | — | 16 | — | 134 | |||||||||||||||||
Interest expense | (38 | ) | (134 | ) | — | (17 | ) | — | (189 | ) | |||||||||||||
Other income (expenses) | — | 4 | — | 11 | — | 15 | |||||||||||||||||
Gain (loss) from subsidiaries | (148 | ) | 9 | — | — | 139 | — | ||||||||||||||||
Total other income (expenses), net | (186 | ) | (3 | ) | — | 10 | 139 | (40 | ) | ||||||||||||||
(Loss) income before income tax expense (benefit) | (186 | ) | (195 | ) | 4 | 5 | 139 | (233 | ) | ||||||||||||||
Less: Income tax (benefit) expense | — | (47 | ) | — | — | — | (47 | ) | |||||||||||||||
Net (loss) income | (186 | ) | (148 | ) | 4 | 5 | 139 | (186 | ) | ||||||||||||||
Less: Net (loss) income attributable to non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
Net (loss) income attributable to Mr. Cooper | $ | (186 | ) | $ | (148 | ) | $ | 4 | $ | 5 | $ | 139 | $ | (186 | ) |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD MARCH 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net (loss) income attributable to Mr. Cooper | $ | (186 | ) | $ | (148 | ) | $ | 4 | $ | 5 | $ | 139 | $ | (186 | ) | ||||||||
Adjustments to reconcile net (loss) income to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred tax benefit | (21 | ) | (26 | ) | — | — | — | (47 | ) | ||||||||||||||
(Gain) loss from subsidiaries | 148 | (9 | ) | — | — | (139 | ) | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (166 | ) | — | — | — | (166 | ) | |||||||||||||||
Interest income on reverse mortgage loan | — | (82 | ) | — | — | — | (82 | ) | |||||||||||||||
Provision for servicing reserves | — | 11 | — | — | — | 11 | |||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | — | 375 | — | 4 | — | 379 | |||||||||||||||||
Fair value changes in excess spread financing | — | (67 | ) | — | (2 | ) | — | (69 | ) | ||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | 2 | — | — | — | 2 | |||||||||||||||||
Fair value changes in mortgage loans held for investment | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Amortization of premiums, net of discount accretion | 2 | — | — | — | — | 2 | |||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 17 | — | 4 | — | 21 | |||||||||||||||||
Share-based compensation | — | 3 | — | 1 | — | 4 | |||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (364 | ) | — | — | — | (364 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (5,717 | ) | — | — | — | (5,717 | ) | |||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 6,195 | — | 2 | — | 6,197 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | 120 | — | — | — | 120 | |||||||||||||||||
Reverse mortgage interests | — | 514 | — | 100 | — | 614 | |||||||||||||||||
Other assets | — | (229 | ) | (5 | ) | 18 | — | (216 | ) | ||||||||||||||
Payables and accrued liabilities | 57 | (268 | ) | 1 | (7 | ) | — | (217 | ) | ||||||||||||||
Net cash attributable to operating activities | — | 161 | — | 124 | — | 285 |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD MARCH 31, 2019 (Continued) | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Acquisition, net of cash acquired | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Property and equipment additions, net of disposals | — | (8 | ) | — | (2 | ) | — | (10 | ) | ||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (130 | ) | — | — | — | (130 | ) | |||||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | — | 243 | — | — | — | 243 | |||||||||||||||||
Net cash attributable to investing activities | — | 20 | — | (2 | ) | — | 18 | ||||||||||||||||
Financing Activities | |||||||||||||||||||||||
Increase (decrease) in warehouse facilities | — | 307 | — | — | — | 307 | |||||||||||||||||
Decrease in advance facilities | — | (14 | ) | — | (16 | ) | — | (30 | ) | ||||||||||||||
Repayment of notes payable | — | (294 | ) | — | — | — | (294 | ) | |||||||||||||||
Proceeds from sale of HECM securitizations | — | — | — | 20 | — | 20 | |||||||||||||||||
Repayment of HECM securitizations | — | — | — | (127 | ) | — | (127 | ) | |||||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | — | 86 | — | — | — | 86 | |||||||||||||||||
Repayment of participating interest financing in reverse mortgage interests | — | (494 | ) | — | — | — | (494 | ) | |||||||||||||||
Proceeds from issuance of excess spread financing | — | 245 | — | — | — | 245 | |||||||||||||||||
Settlement of excess spread financing | — | (50 | ) | — | — | — | (50 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Repayment of finance lease liability | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||
Surrender of shares relating to stock vesting | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||
Debt financing costs | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||
Net cash attributable to financing activities | — | (218 | ) | — | (126 | ) | — | (344 | ) | ||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | — | (37 | ) | — | (4 | ) | — | (41 | ) | ||||||||||||||
Cash, cash equivalents, and restricted cash - beginning of period | — | 379 | 1 | 181 | — | 561 | |||||||||||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | — | $ | 342 | $ | 1 | $ | 177 | $ | — | $ | 520 |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 193 | $ | 1 | $ | 48 | $ | — | $ | 242 | |||||||||||
Restricted cash | — | 186 | — | 133 | — | 319 | |||||||||||||||||
Mortgage servicing rights | — | 3,644 | — | 32 | — | 3,676 | |||||||||||||||||
Advances and other receivables, net | — | 1,194 | — | — | — | 1,194 | |||||||||||||||||
Reverse mortgage interests, net | — | 6,770 | — | 1,164 | — | 7,934 | |||||||||||||||||
Mortgage loans held for sale at fair value | — | 1,631 | — | — | — | 1,631 | |||||||||||||||||
Mortgage loans held for investment at fair value | — | 1 | — | 118 | — | 119 | |||||||||||||||||
Property and equipment, net | — | 84 | — | 12 | — | 96 | |||||||||||||||||
Deferred tax asset, net | 973 | — | — | (6 | ) | — | 967 | ||||||||||||||||
Other assets | — | 660 | 202 | 621 | (688 | ) | 795 | ||||||||||||||||
Investment in subsidiaries | 2,820 | 601 | — | — | (3,421 | ) | — | ||||||||||||||||
Total assets | $ | 3,793 | $ | 14,964 | $ | 203 | $ | 2,122 | $ | (4,109 | ) | $ | 16,973 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Unsecured senior notes, net | $ | 1,660 | $ | 799 | $ | — | $ | — | $ | — | $ | 2,459 | |||||||||||
Advance facilities, net | — | 90 | — | 505 | — | 595 | |||||||||||||||||
Warehouse facilities, net | — | 2,349 | — | — | — | 2,349 | |||||||||||||||||
Payables and accrued liabilities | 49 | 1,413 | 1 | 80 | — | 1,543 | |||||||||||||||||
MSR related liabilities - nonrecourse at fair value | — | 1,197 | — | 19 | — | 1,216 | |||||||||||||||||
Mortgage servicing liabilities | — | 71 | — | — | — | 71 | |||||||||||||||||
Other nonrecourse debt, net | — | 5,676 | — | 1,119 | — | 6,795 | |||||||||||||||||
Payables to affiliates | 139 | 549 | — | — | (688 | ) | — | ||||||||||||||||
Total liabilities | 1,848 | 12,144 | 1 | 1,723 | (688 | ) | 15,028 | ||||||||||||||||
Total stockholders’ equity | 1,945 | 2,820 | 202 | 399 | (3,421 | ) | 1,945 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,793 | $ | 14,964 | $ | 203 | $ | 2,122 | $ | (4,109 | ) | $ | 16,973 |
(1) | Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2018 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | 390 | $ | 6 | $ | 68 | $ | — | $ | 464 | |||||||||||
Net gain on mortgage loans held for sale | — | 124 | — | — | — | 124 | |||||||||||||||||
Total Revenues | — | 514 | 6 | 68 | — | 588 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages and benefits | — | 152 | 1 | 27 | — | 180 | |||||||||||||||||
General and administrative | — | 156 | 1 | 27 | — | 184 | |||||||||||||||||
Total expenses | — | 308 | 2 | 54 | — | 364 | |||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||
Interest income | — | 131 | — | 14 | — | 145 | |||||||||||||||||
Interest expense | — | (162 | ) | — | (9 | ) | — | (171 | ) | ||||||||||||||
Other expense | — | (1 | ) | — | 9 | — | 8 | ||||||||||||||||
Gain (loss) from subsidiaries | 160 | 32 | — | — | (192 | ) | — | ||||||||||||||||
Total other income (expenses), net | 160 | — | — | 14 | (192 | ) | (18 | ) | |||||||||||||||
Income (loss) before income tax expense (benefit) | 160 | 206 | 4 | 28 | (192 | ) | 206 | ||||||||||||||||
Less: Income tax expense | — | 46 | — | — | — | 46 | |||||||||||||||||
Net income (loss) | 160 | 160 | 4 | 28 | (192 | ) | 160 | ||||||||||||||||
Less: net income attributable to non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to Nationstar | $ | 160 | $ | 160 | $ | 4 | $ | 28 | $ | (192 | ) | $ | 160 |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) attributable to Nationstar | $ | 160 | $ | 160 | $ | 4 | $ | 28 | $ | (192 | ) | $ | 160 | ||||||||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred income tax expense | — | 30 | — | — | — | 30 | |||||||||||||||||
(Gain) loss from subsidiaries | (160 | ) | (32 | ) | — | — | 192 | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (124 | ) | — | — | — | (124 | ) | |||||||||||||||
Reverse mortgage loan interest income | — | (119 | ) | — | — | — | (119 | ) | |||||||||||||||
(Gain) loss on sale of assets | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||||
Provision for servicing reserves | — | 38 | — | — | — | 38 | |||||||||||||||||
Fair value changes and amortization of mortgage servicing rights | — | (178 | ) | — | — | — | (178 | ) | |||||||||||||||
Fair value changes in excess spread financing | — | 49 | — | 1 | — | 50 | |||||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | 24 | — | — | — | 24 | |||||||||||||||||
Amortization of premiums, net of discount accretion | — | 4 | — | (1 | ) | — | 3 | ||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 12 | — | 3 | — | 15 | |||||||||||||||||
Share-based compensation | — | 3 | — | 1 | — | 4 | |||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (251 | ) | — | — | — | (251 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (5,096 | ) | — | — | — | (5,096 | ) | |||||||||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 5,709 | — | 4 | — | 5,713 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | 270 | — | — | — | 270 | |||||||||||||||||
Reverse mortgage interests | — | 443 | — | (61 | ) | — | 382 | ||||||||||||||||
Other assets | 4 | (146 | ) | (5 | ) | 201 | — | 54 | |||||||||||||||
Payables and accrued liabilities | — | (27 | ) | 1 | (3 | ) | — | (29 | ) | ||||||||||||||
Net cash attributable to operating activities | 4 | 769 | — | 164 | — | 937 |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 (Continued) | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (14 | ) | — | (2 | ) | — | (16 | ) | ||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (11 | ) | — | (6 | ) | — | (17 | ) | ||||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||
Proceeds on sale of assets | — | — | — | 13 | — | 13 | |||||||||||||||||
Net cash attributable to investing activities | — | (26 | ) | — | 5 | — | (21 | ) | |||||||||||||||
Financing Activities | |||||||||||||||||||||||
Increase in warehouse facilities | — | (125 | ) | — | — | — | (125 | ) | |||||||||||||||
Decrease in advance facilities | — | (16 | ) | — | (277 | ) | — | (293 | ) | ||||||||||||||
Proceeds from issuance of HECM securitizations | — | — | — | 443 | — | 443 | |||||||||||||||||
Repayment of HECM securitizations | — | — | — | (317 | ) | — | (317 | ) | |||||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | — | 90 | — | — | — | 90 | |||||||||||||||||
Repayment of participating interest financing in reverse mortgage interests | — | (664 | ) | — | — | — | (664 | ) | |||||||||||||||
Settlement of excess spread financing | — | (45 | ) | — | — | — | (45 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Repurchase of unsecured senior notes | — | (16 | ) | — | — | — | (16 | ) | |||||||||||||||
Surrender of shares relating to stock vesting | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||
Debt financing costs | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||
Net cash attributable to financing activities | (4 | ) | (781 | ) | — | (154 | ) | — | (939 | ) | |||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | — | (38 | ) | — | 15 | — | (23 | ) | |||||||||||||||
Cash, cash equivalents, and restricted cash - beginning of period | — | 423 | 1 | 151 | — | 575 | |||||||||||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | — | $ | 385 | $ | 1 | $ | 166 | $ | — | $ | 552 |
(1) | Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
• | our ability to maintain or grow the size of our servicing portfolio; |
• | our ability to maintain or grow our originations volume and profitability; |
• | our ability to recapture voluntary prepayments related to our existing servicing portfolio; |
• | our shift in the mix of our servicing portfolio to subservicing, which is highly concentrated; |
• | delays in our ability to collect or be reimbursed for servicing advances; |
• | our ability to obtain sufficient liquidity and capital to operate our business; |
• | changes in prevailing interest rates; |
• | our ability to finance and recover costs of our reverse servicing operations; |
• | our ability to successfully implement our strategic initiatives; |
• | our ability to realize anticipated benefits of the Merger and other acquisitions, including Pacific Union, AMS, and Seterus; |
• | our ability to use net operating loss carryforwards and other tax attributes; |
• | changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and Ginnie Mae; |
• | Xome’s ability to compete in highly competitive markets; |
• | our ability to pay down debt; |
• | our ability to manage legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs; |
• | our ability to prevent cyber intrusions and mitigate cyber risks; and |
• | our ability to maintain our licenses and other regulatory approvals. |
• | Boarded $110,124 UPB comprised of $45,590 UPB of forward MSR and $64,534 UPB of subservicing |
• | Provided 9,590 solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership |
• | Maintained a low delinquency rate, measured as loans that are 60 or more days behind in payment, at 2.4% |
• | Funded 27,294 loans totaling $5,716 which included $2,143 related to retaining customers in our servicing portfolio |
• | Achieved recapture rate of 27.5% |
• | Sold 2,421 properties and completed 379,585 of Xome service orders |
• | Completed acquisition of Pacific Union, which allowed us to expand our servicing portfolio and increase our mortgage lending volume and capabilities |
• | Completed the acquisition of the Seterus mortgage servicing platform and assumed certain assets related thereto from IBM (“Seterus acquisition). In connection with Seterus acquisition, we entered into a subservicing contract for $42 billion in mortgages |
Successor | Predecessor | ||||||||||||||
Table 1. Consolidated Operations | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Revenues - operational | $ | 543 | $ | 436 | $ | 107 | 25 | % | |||||||
Revenues - Mark-to-market | (293 | ) | 152 | (445 | ) | (293 | )% | ||||||||
Total revenues | 250 | 588 | (338 | ) | (57 | )% | |||||||||
Expenses | 443 | 364 | 79 | 22 | % | ||||||||||
Other income (expenses), net | (40 | ) | (18 | ) | (22 | ) | 122 | % | |||||||
(Loss) income before income tax (benefit) expense | (233 | ) | 206 | (439 | ) | (213 | )% | ||||||||
Less: Income tax (benefit) expense | (47 | ) | 46 | (93 | ) | (202 | )% | ||||||||
Net (loss) income | (186 | ) | 160 | (346 | ) | (216 | )% | ||||||||
Less: Net (loss) income attributable to non-controlling interests | — | — | — | — | % | ||||||||||
Net (loss) income attributable to Successor/Predecessor | $ | (186 | ) | $ | 160 | $ | (346 | ) | (216 | )% | |||||
Effective tax rate(1) | 20.3 | % | 22.4 | % | |||||||||||
Income (loss) before income tax expense by operating and non-operating segments: | |||||||||||||||
Servicing | $ | (186 | ) | $ | 220 | $ | (406 | ) | (185 | )% | |||||
Originations | 45 | 19 | 26 | 137 | % | ||||||||||
Xome | 8 | 22 | (14 | ) | (64 | )% | |||||||||
Corporate and other | (100 | ) | (55 | ) | (45 | ) | 82 | % | |||||||
Consolidated (loss) income before income tax (benefit) expense | $ | (233 | ) | $ | 206 | $ | (439 | ) | (213 | )% |
(1) | Effective tax rate is calculated using whole numbers. |
Successor | Predecessor | ||||||||||||||
Table 2. Servicing Operations | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Revenues | |||||||||||||||
Operational | $ | 324 | $ | 291 | $ | 33 | 11 | % | |||||||
Amortization | (23 | ) | (48 | ) | 25 | 52 | % | ||||||||
Mark-to-market | (293 | ) | 152 | (445 | ) | 293 | % | ||||||||
Total revenues | 8 | 395 | (387 | ) | (98 | )% | |||||||||
Expenses | 195 | 182 | 13 | 7 | % | ||||||||||
Total other income (expenses), net | 1 | 7 | (6 | ) | (86 | )% | |||||||||
Income before income tax expense | $ | (186 | ) | $ | 220 | $ | (406 | ) | (185 | )% |
Successor | Predecessor | |||||||
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Balance - beginning of period | $ | 519,367 | $ | 473,256 | ||||
Additions: | ||||||||
Originations | 5,295 | 5,088 | ||||||
Acquisitions | 97,811 | 6,149 | ||||||
Deductions: | ||||||||
Dispositions | (1,251 | ) | (54 | ) | ||||
Principal reductions and other | (5,145 | ) | (4,935 | ) | ||||
Voluntary reductions(1) | (10,272 | ) | (11,663 | ) | ||||
Involuntary reductions(2) | (857 | ) | (1,345 | ) | ||||
Net changes in loans serviced by others | (65 | ) | (95 | ) | ||||
Balance - end of period | $ | 604,883 | $ | 466,401 |
(1) | Voluntary reductions are related to loan payoffs by customers. |
(2) | Involuntary reductions refer to loan chargeoffs. |
Successor | Predecessor | ||||||||||||||||||||||||||
Table 4. Servicing - Revenues | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||||||
Base servicing fees | $ | 240 | 17 | $ | 219 | 17 | $ | 21 | — | 10 | % | — | % | ||||||||||||||
Modification fees(2) | 3 | — | 7 | 1 | (4 | ) | (1 | ) | (57 | )% | (100 | )% | |||||||||||||||
Incentive fees(2) | 1 | — | 7 | 1 | (6 | ) | (1 | ) | (86 | )% | (100 | )% | |||||||||||||||
Late payment fees(2) | 19 | 2 | 20 | 1 | (1 | ) | 1 | (5 | )% | 100 | % | ||||||||||||||||
Other ancillary revenues(2) | 48 | 3 | 27 | 2 | 21 | 1 | 78 | % | 50 | % | |||||||||||||||||
Total forward MSR operational revenue | 311 | 22 | 280 | 22 | 31 | — | 11 | % | — | % | |||||||||||||||||
Base subservicing fees and other subservicing revenue(2) | 52 | 4 | 37 | 3 | 15 | 1 | 41 | % | 33 | % | |||||||||||||||||
Reverse servicing fees | 9 | — | 19 | 1 | (10 | ) | (1 | ) | (53 | )% | (100 | )% | |||||||||||||||
Total servicing fee revenue | 372 | 26 | 336 | 26 | 36 | — | 11 | % | — | % | |||||||||||||||||
MSR financing liability costs | (12 | ) | (1 | ) | (15 | ) | (1 | ) | 3 | — | (20 | )% | — | % | |||||||||||||
Excess spread costs - principal | (36 | ) | (2 | ) | (30 | ) | (2 | ) | (6 | ) | — | 20 | % | — | % | ||||||||||||
Total operational revenue | 324 | 23 | 291 | 23 | 33 | — | 11 | % | — | % | |||||||||||||||||
Amortization | |||||||||||||||||||||||||||
Forward MSR amortization | (79 | ) | (6 | ) | (78 | ) | (6 | ) | (1 | ) | — | (1 | )% | — | % | ||||||||||||
Excess spread accretion | 36 | 3 | 30 | 2 | 6 | 1 | 20 | % | 50 | % | |||||||||||||||||
Reverse MSL accretion | 18 | 1 | — | — | 18 | 1 | 100 | % | 100 | % | |||||||||||||||||
Reverse MSR amortization | 2 | — | — | — | 2 | — | 100 | % | — | % | |||||||||||||||||
Total amortization | (23 | ) | (2 | ) | (48 | ) | (4 | ) | 25 | 2 | 52 | % | 50 | % | |||||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||||||
MSR MTM(3) | (360 | ) | (25 | ) | 226 | 18 | (586 | ) | (43 | ) | (259 | )% | (239 | )% | |||||||||||||
Excess spread / financing MTM | 67 | 5 | (74 | ) | (6 | ) | 141 | 11 | (191 | )% | (183 | )% | |||||||||||||||
Total MTM adjustments | (293 | ) | (20 | ) | 152 | 12 | (445 | ) | (32 | ) | (293 | )% | (267 | )% | |||||||||||||
Total revenues - Servicing | $ | 8 | 1 | $ | 395 | 31 | $ | (387 | ) | (34 | ) | (98 | )% | (110 | )% |
(1) | Calculated basis points (“bps”) are as follows: Annualized dollar amount/Total average UPB X 10000. |
(2) | Certain ancillary and other non-base fees related to subservicing operations are separately presented as other subservicing revenues. |
(3) | The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was $11 for the three months ended March 31, 2019. The impact of negative modeled cash flows for the Predecessor was $18 for the three months ended March 31, 2018. |
Successor | Predecessor | |||||||
Table 5. Servicing Portfolio - Unpaid Principal Balances | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Average UPB: | ||||||||
Forward MSRs | $ | 308,984 | $ | 281,711 | ||||
Subservicing and other(1) | 239,468 | 188,259 | ||||||
Reverse portfolio | 27,472 | 34,428 | ||||||
Total average UPB | $ | 575,924 | $ | 504,398 | ||||
Successor | Predecessor | |||||||
March 31, 2019 | March 31, 2018 | |||||||
Ending UPB: | ||||||||
Forward MSRs | ||||||||
Agency | $ | 238,937 | $ | 201,303 | ||||
Non-agency | 64,755 | 75,540 | ||||||
Total Forward MSRs | 303,692 | 276,843 | ||||||
Subservicing and other(1) | ||||||||
Agency | 273,786 | 181,771 | ||||||
Non-agency | 27,405 | 7,787 | ||||||
Total subservicing and other | 301,191 | 189,558 | ||||||
Reverse loans | ||||||||
MSR | 3,559 | — | ||||||
MSL | 15,928 | 23,852 | ||||||
Securitized loans | 7,527 | 10,162 | ||||||
Total reverse portfolio serviced | 27,014 | 34,014 | ||||||
Total ending UPB | $ | 631,897 | $ | 500,415 |
(1) | Subservicing and other includes (i) loans we service for others, (ii) residential mortgage loans originated but have yet to be sold and (iii) agency REO balances for which we own the mortgage servicing rights. |
Successor | Predecessor | |||||||||||
Table 6. Forward Loan Modifications and Workout Units | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Amount Change | % Change | ||||||||
HAMP modifications | 6 | 22 | (16 | ) | (73 | )% | ||||||
Non-HAMP modifications | 5,183 | 5,835 | (652 | ) | (11 | )% | ||||||
Workouts | 4,401 | 14,093 | (9,692 | ) | (69 | )% | ||||||
Total modification and workout units | 9,590 | 19,950 | (10,360 | ) | (52 | )% |
Successor | Predecessor | |||||||
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio(1) | March 31, 2019 | March 31, 2018 | ||||||
Loan count | 3,616,323 | 2,993,023 | ||||||
Average loan amount(2) | $ | 167,266 | $ | 155,858 | ||||
Average coupon - credit sensitive(3) | 4.9 | % | 4.7 | % | ||||
Average coupon - interest sensitive(3) | 4.3 | % | 4.2 | % | ||||
60+ delinquent (% of loans)(4) | 2.4 | % | 3.2 | % | ||||
90+ delinquent (% of loans)(4) | 2.1 | % | 2.8 | % | ||||
120+ delinquent (% of loans)(4) | 1.9 | % | 2.6 | % | ||||
Total prepayment speed (12-month constant prepayment rate) | 8.2 | % | 10.7 | % |
(1) | Characteristics and key performance metrics of our servicing portfolio exclude UPB and loan counts acquired but not yet boarded and currently serviced by others. |
(2) | Average loan amount is presented in whole dollar amounts. |
(3) | The weighted average coupon amounts for our credit and interest sensitive pools presented in the table above are only reflective of our owned forward MSR portfolio that is reported at fair value. |
(4) | Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan. |
Successor | Successor | Predecessor | ||||
Table 8. Servicer Ratings | Fitch(1) | Moody’s(2) | S&P(3) | |||
Rating date | November 2018 | March 2019 | January & February 2018 | |||
Residential | RPS2- | Not Rated | Above Average | |||
Master Servicer | RMS2+ | SQ2 | Above Average | |||
Special Servicer | RSS2- | Not Rated | Above Average | |||
Subprime Servicer | RPS2- | Not Rated | Above Average |
(1) | Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency) |
(2) | Moody’s Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability) |
(3) | S&P’s Rating Scale of Strong to Weak |
Successor | Predecessor | ||||||||||||||||||||||
Table 9. Servicing - Expenses | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||||||||||
Amt | bps | Amt | bps | Amt | bps | Amt | bps | ||||||||||||||||
Salaries, wages and benefits | $ | 86 | 6 | $ | 76 | 6 | $ | 10 | — | (13 | )% | —% | |||||||||||
General and administrative | |||||||||||||||||||||||
Servicing support fees | 39 | 3 | 27 | 2 | 12 | 1 | (44 | )% | 50% | ||||||||||||||
Corporate and other general and administrative expenses | 39 | 3 | 31 | 2 | 8 | 1 | (26 | )% | 50% | ||||||||||||||
Foreclosure and other liquidation related expenses | 27 | 2 | 41 | 3 | (14 | ) | (1) | 34 | % | (33)% | |||||||||||||
Depreciation and amortization | 4 | — | 7 | 1 | (3 | ) | (1) | 43 | % | (100)% | |||||||||||||
Total general and administrative expenses | 109 | 8 | 106 | 8 | 3 | — | (3 | )% | —% | ||||||||||||||
Total expenses - Servicing | $ | 195 | 14 | $ | 182 | 14 | $ | 13 | — | (7 | )% | —% |
Successor | Predecessor | ||||||||||||||||||||||||||
Table 10. Servicing - Other Income (Expenses), Net | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Change | % Change | |||||||||||||||||||||||
Amt | bps | Amt | bps | Amt | bps | Amt | bps | ||||||||||||||||||||
Reverse mortgage interest income | $ | 82 | 6 | $ | 119 | 9 | $ | (37 | ) | (3 | ) | (31 | )% | 33 | % | ||||||||||||
Other interest income | 33 | 2 | 7 | 1 | 26 | 1 | 371 | % | 100 | % | |||||||||||||||||
Interest income | 115 | 8 | 126 | 10 | (11 | ) | (2 | ) | (9 | )% | 20 | % | |||||||||||||||
Reverse mortgage interest expense | (71 | ) | (5 | ) | (96 | ) | (8 | ) | (25 | ) | (3 | ) | (26 | )% | (38 | )% | |||||||||||
Advance interest expense | (9 | ) | (1 | ) | (5 | ) | — | 4 | 1 | 80 | % | 100 | % | ||||||||||||||
Other interest expense | (34 | ) | (2 | ) | (17 | ) | (1 | ) | 17 | 1 | 100 | % | 100 | % | |||||||||||||
Interest expense | (114 | ) | (8 | ) | (118 | ) | (9 | ) | (4 | ) | (1 | ) | (3 | )% | (11 | )% | |||||||||||
Other income (expense) | — | — | (1 | ) | — | 1 | — | 100 | % | — | % | ||||||||||||||||
Total other income (expenses), net - Servicing | $ | 1 | — | $ | 7 | 1 | $ | (6 | ) | (1 | ) | (86 | )% | (100 | )% | ||||||||||||
Weighted average cost - advance facilities | 4.7 | % | 3.7 | % | 1.0 | % | 27 | % | |||||||||||||||||||
Weighted average cost - excess spread financing | 9.0 | % | 8.9 | % | 0.1 | % | 1 | % |
Successor | |||||||||||||||||||||
Table 11. Serviced Portfolios and Related Liabilities | March 31, 2019 | December 31, 2018 | |||||||||||||||||||
UPB | Carrying Amount | Weighted Avg. Coupon | UPB | Carrying Amount | Weighted Avg. Coupon | ||||||||||||||||
Forward MSRs - fair value | |||||||||||||||||||||
Agency | $ | 238,937 | $ | 2,879 | 4.4 | % | $ | 229,108 | $ | 3,027 | 4.5 | % | |||||||||
Non-agency | 64,755 | 602 | 4.8 | % | 66,373 | 638 | 4.8 | % | |||||||||||||
Total Forward MSRs - fair value | 303,692 | 3,481 | 4.6 | % | 295,481 | 3,665 | 4.5 | % | |||||||||||||
Subservicing and other(1) | |||||||||||||||||||||
Agency | 273,786 | N/A | N/A | 208,607 | N/A | N/A | |||||||||||||||
Non-agency | 27,405 | N/A | N/A | 15,279 | N/A | N/A | |||||||||||||||
Total subservicing and other | 301,191 | N/A | N/A | 223,886 | N/A | N/A | |||||||||||||||
Reverse portfolio - amortized cost | |||||||||||||||||||||
MSR | 3,559 | 7 | N/A | 3,940 | 11 | N/A | |||||||||||||||
MSL(2) | 15,928 | (90 | ) | N/A | 16,538 | (71 | ) | N/A | |||||||||||||
Securitized loans | 7,527 | 7,489 | N/A | 7,937 | 7,934 | N/A | |||||||||||||||
Total reverse portfolio serviced | 27,014 | 7,406 | N/A | 28,415 | 7,874 | N/A | |||||||||||||||
Total servicing portfolio unpaid principal balance | $ | 631,897 | $ | 10,887 | N/A | $ | 547,782 | $ | 11,539 | N/A |
(1) | Subservicing and other amounts include loans we service for others, residential mortgage loans originated but have yet to be sold and agency REO balances for which we own the mortgage servicing rights. |
Successor | |||||||||||||||||||
Table 12. Fair Value MSR Valuation | March 31, 2019 | December 31, 2018 | |||||||||||||||||
UPB | Carrying Amount | bps | UPB | Carrying Amount | bps | ||||||||||||||
MSRs - fair value | |||||||||||||||||||
Credit sensitive | $ | 153,565 | $ | 1,626 | 106 | $ | 135,752 | $ | 1,495 | 110 | |||||||||
Interest sensitive - agency | 150,127 | 1,855 | 124 | 159,729 | 2,170 | 136 | |||||||||||||
Total MSRs - fair value | $ | 303,692 | $ | 3,481 | 115 | $ | 295,481 | $ | 3,665 | 124 |
Successor | Predecessor | |||||||
Table 13. MSRs - Fair Value, Roll Forward | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Fair value - beginning of period | $ | 3,665 | $ | 2,937 | ||||
Additions: | ||||||||
Servicing retained from mortgage loans sold | 66 | 68 | ||||||
Purchases of servicing rights | 409 | 19 | ||||||
Dispositions: | ||||||||
Sales of servicing rights | (260 | ) | — | |||||
Changes in fair value: | ||||||||
Due to changes in valuation inputs or assumptions used in the valuation model: | ||||||||
Credit sensitive | (121 | ) | 181 | |||||
Interest sensitive | (211 | ) | 58 | |||||
Other changes in fair value: | ||||||||
Scheduled principal payments | (22 | ) | (19 | ) | ||||
Disposition of negative MSRs and other(1) | 12 | 9 | ||||||
Prepayments | ||||||||
Voluntary prepayments | ||||||||
Credit sensitive | (19 | ) | (30 | ) | ||||
Interest sensitive | (32 | ) | (21 | ) | ||||
Involuntary prepayments | ||||||||
Credit sensitive | (2 | ) | (5 | ) | ||||
Interest sensitive | (4 | ) | (3 | ) | ||||
Fair value - end of period | $ | 3,481 | $ | 3,194 |
(1) | Amounts primarily represent negative fair values reclassified from the MSR asset to reserves of advances and other receivables as underlying loans are removed from the MSR and other reclassification adjustments. |
Successor | Predecessor | |||||
Table 14. MSRs - Fair Value | March 31, 2019 | March 31, 2018 | ||||
Credit Sensitive MSRs | ||||||
Discount rate | 11.3 | % | 11.4 | % | ||
Weighted average prepayment speeds | 13.5 | % | 12.2 | % | ||
Weighted average life of loans | 6.0 years | 6.4 years | ||||
Interest Sensitive MSRs | ||||||
Discount rate | 9.4 | % | 9.2 | % | ||
Weighted average prepayment speeds | 12.5 | % | 10.1 | % | ||
Weighted average life of loans | 6.1 years | 6.9 years |
Successor | Predecessor | |||||||
Table 15. Excess Spread Financing | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Fair value - beginning of period | $ | 1,184 | $ | 996 | ||||
Additions: | ||||||||
New financings | 245 | — | ||||||
Deductions: | ||||||||
Repayments of debt | (1 | ) | — | |||||
Settlements of principal balances | (50 | ) | (45 | ) | ||||
Fair value changes: | ||||||||
Credit Sensitive | (32 | ) | 46 | |||||
Interest Sensitive | (37 | ) | 4 | |||||
Fair value - end of period | $ | 1,309 | $ | 1,001 | ||||
Successor | Predecessor | |||||||
Key Assumptions | March 31, 2019 | March 31, 2018 | ||||||
Weighted average prepayment speeds | 12.9 | % | 11.6 | % | ||||
Weighted average life of loans | 5.9 years | 6.4 years | ||||||
Discount rate | 10.4 | % | 10.7 | % | ||||
Credit Sensitive | ||||||||
Mortgage prepayment speeds | 13.2 | % | 11.9 | % | ||||
Average life of mortgage loans | 5.9 years | 6.3 years | ||||||
Discount rate | 10.9 | % | 11.1 | % | ||||
Interest Sensitive | ||||||||
Mortgage prepayment speeds | 12.4 | % | 10.3 | % | ||||
Average life of mortgage loans | 6.1 years | 6.6 years | ||||||
Discount rate | 9.1 | % | 9.1 | % |
Successor | Predecessor | |||||||
Table 16. MSRs Financing Liability - Rollforward | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Fair value - beginning of period | $ | 32 | $ | 10 | ||||
Changes in fair value(1): | ||||||||
Changes in valuation inputs or assumptions used in the valuation model | 6 | 25 | ||||||
Other changes in fair value | (4 | ) | (1 | ) | ||||
Fair value - end of period | $ | 34 | $ | 34 | ||||
Successor | Predecessor | |||||||
March 31, 2019 | March 31, 2018 | |||||||
Weighted Average Assumptions | ||||||||
Advance financing rates | 3.9 | % | 4.3 | % | ||||
Annual advance recovery rates | 19.3 | % | 20.4 | % |
(1) | The changes in fair value related to our MSRs financing liability primarily relate to both scheduled and unscheduled principal payments reflected in the underlying MSRs and changes in the fair value model assumptions. |
Successor | Predecessor | |||||||
Table 17. Leveraged Portfolio Characteristics | March 31, 2019 | March 31, 2018 | ||||||
Owned forward servicing portfolio - unencumbered | $ | 88,995 | $ | 86,109 | ||||
Owned forward servicing portfolio - encumbered | 214,697 | 190,734 | ||||||
Subserviced forward servicing portfolio and other | 301,191 | 189,558 | ||||||
Total unpaid principal balance | $ | 604,883 | $ | 466,401 |
Successor | Predecessor | |||||||
Table 18. Reverse - Mortgage Portfolio Characteristics | March 31, 2019 | March 31, 2018 | ||||||
Loan count | 184,807 | 209,343 | ||||||
Ending unpaid principal balance | $ | 27,014 | $ | 34,014 | ||||
Average loan amount(1) | $ | 146,173 | $ | 162,749 | ||||
Average coupon | 4.4 | % | 3.6 | % | ||||
Average borrower age | 80 | 78 |
(1) | Average loan amount is presented in whole dollar amounts. |
Successor | Predecessor | ||||||||||||||
Table 19. Originations - Operations | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Revenues | $ | 146 | $ | 128 | $ | 18 | 14 | % | |||||||
Expenses | 104 | 109 | (5 | ) | (5 | )% | |||||||||
Other income (expenses), net | 3 | — | 3 | 100 | % | ||||||||||
Income before income tax expense | $ | 45 | $ | 19 | $ | 26 | 137 | % | |||||||
Income before taxes margin | 30.8 | % | 14.8 | % | 16.0 | % | 108 | % | |||||||
Successor | Predecessor | ||||||||||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | ||||||||||||
Revenue | $ | 146 | $ | 128 | $ | 18 | 14 | % | |||||||
Pull through adjusted lock volume | $ | 5,960 | $ | 4,862 | $ | 1,098 | 23 | % | |||||||
Revenue basis points(1) | 2.45 | % | 2.63 | % | 1.64 | % | 62 | % | |||||||
Expenses | $ | 104 | $ | 109 | $ | (5 | ) | (5 | )% | ||||||
Funded volume | $ | 5,716 | $ | 5,087 | $ | 629 | 12 | % | |||||||
Expenses basis points(2) | 1.82 | % | 2.14 | % | (0.79 | )% | (37 | )% | |||||||
Margin | 0.63 | % | 0.49 | % | 2.43 | % | 496 | % |
(1) | Calculated on pull-through adjusted lock volume as revenue is recognized at the time of loan lock. |
(2) | Calculated on funded volume as expenses are incurred based on closing of the loan. |
Successor | Predecessor | ||||||||||||||
Table 20. Originations - Revenues | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Service related, net - Originations | $ | 15 | $ | 15 | $ | — | — | % | |||||||
Net gain on mortgage loans held for sale | |||||||||||||||
Gain on loans originated and sold | 46 | 56 | (10 | ) | (18 | )% | |||||||||
Fair value adjustment on loans held for sale | 10 | (5 | ) | 15 | (300 | )% | |||||||||
Mark-to-market on locks and commitments(1) | 6 | (1 | ) | 7 | 700 | % | |||||||||
Mark-to-market on derivative/hedges | 10 | (2 | ) | 12 | 600 | % | |||||||||
Capitalized servicing rights | 61 | 65 | (4 | ) | (6 | )% | |||||||||
Provision for repurchase reserves, net of release | (2 | ) | — | (2 | ) | (100 | )% | ||||||||
Total net gain on mortgage loans held for sale | 131 | 113 | 18 | 16 | % | ||||||||||
Total revenues - Originations | $ | 146 | $ | 128 | $ | 18 | 14 | % | |||||||
Key Metrics | |||||||||||||||
Consumer direct lock pull through adjusted volume(2) | $ | 2,333 | $ | 2,742 | $ | (409 | ) | (15 | )% | ||||||
Other locked pull through adjusted volume(2) | 3,627 | 2,120 | 1,507 | 71 | % | ||||||||||
Total pull through adjusted volume | $ | 5,960 | $ | 4,862 | $ | 1,098 | 23 | % | |||||||
Funded volume | $ | 5,716 | $ | 5,087 | $ | 629 | 12 | % | |||||||
Funded HARP volume | $ | 81 | $ | 436 | $ | (355 | ) | (81 | )% | ||||||
Recapture percentage | 27.5 | % | 27.4 | % | 0.1 | % | — | % | |||||||
Purchase percentage of funded volume | 51.7 | % | 39.9 | % | 11.8 | % | 30 | % | |||||||
Value of capitalized servicing | 127 bps | 124 bps | 3 | 2 | % |
(1) | Mark-to-market on locks and commitments includes our fair value mark-to-market adjustments on IRLCs. |
(2) | Pull through adjusted volume represents the expected funding from locks taken during the period. |
Successor | Predecessor | ||||||||||||||
Table 21. Originations - Expenses | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Salaries, wages and benefits | $ | 69 | $ | 66 | $ | 3 | 5 | % | |||||||
General and administrative | |||||||||||||||
Loan origination expenses | 10 | 14 | (4 | ) | (29 | )% | |||||||||
Corporate and other general and administrative expenses | 14 | 11 | 3 | 27 | % | ||||||||||
Marketing and professional service fee | 8 | 15 | (7 | ) | (47 | )% | |||||||||
Depreciation and amortization | 3 | 3 | — | — | % | ||||||||||
Total general and administrative | 35 | 43 | (8 | ) | (19 | )% | |||||||||
Total expenses - Originations | $ | 104 | $ | 109 | $ | (5 | ) | (5 | )% |
Successor | Predecessor | ||||||||||||||
Table 22. Originations - Other Income (Expenses), Net | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Interest income | $ | 17 | $ | 15 | $ | 2 | 13 | % | |||||||
Interest expense | (18 | ) | (15 | ) | 3 | 20 | % | ||||||||
Other income | 4 | — | 4 | 100 | % | ||||||||||
Total other income, net - Originations | $ | 3 | $ | — | $ | 3 | 100 | % | |||||||
Weighted average note rate - mortgage loans held for sale | 4.9 | % | 4.2 | % | 0.7 | % | 17 | % | |||||||
Weighted average cost of funds (excluding facility fees) | 4.7 | % | 4.1 | % | 0.6 | % | 15 | % |
Successor | Predecessor | ||||||||||||||
Table 23. Xome - Operations | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Revenues | $ | 96 | $ | 65 | $ | 31 | 48 | % | |||||||
Expenses | 99 | 52 | 47 | 90 | % | ||||||||||
Other income (expenses), net | 11 | 9 | 2 | 22 | % | ||||||||||
Income before income tax expense | $ | 8 | $ | 22 | $ | (14 | ) | (64 | )% | ||||||
Income before taxes margin - Xome | 8.3 | % | 33.8 | % | (25.5 | )% | (75 | )% |
Successor | Predecessor | ||||||||||||||
Table 24. Xome - Revenues | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Exchange | $ | 20 | $ | 26 | $ | (6 | ) | (23 | )% | ||||||
Services | 71 | 33 | 38 | 115 | % | ||||||||||
Data/Technology | 5 | 6 | (1 | ) | (17 | )% | |||||||||
Total revenues - Xome | $ | 96 | $ | 65 | $ | 31 | 48 | % | |||||||
Key Metrics | |||||||||||||||
Exchange property listings sold | 2,421 | 2,880 | (459 | ) | (16 | )% | |||||||||
Exchange property listings at period end | 6,634 | 6,849 | (215 | ) | (3 | )% | |||||||||
Services completed orders | 379,585 | 111,339 | 268,246 | 241 | % | ||||||||||
Percentage of revenue earned from third-party customers | 53.0 | % | 28.4 | % | 24.6 | % | 87 | % |
Successor | Predecessor | ||||||||||||||
Table 25. Xome - Expenses | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Salaries, wages and benefits | $ | 38 | $ | 24 | $ | 14 | 58 | % | |||||||
General and administrative | |||||||||||||||
Operational expenses | 57 | 25 | 32 | 128 | % | ||||||||||
Depreciation and amortization | 4 | 3 | 1 | 33 | % | ||||||||||
Total general and administrative | 61 | 28 | 33 | 118 | % | ||||||||||
Total expenses - Xome | $ | 99 | $ | 52 | $ | 47 | 90 | % |
Successor | Predecessor | ||||||||||||||
Table 26. Corporate and Other - Operations | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Revenues | $ | — | $ | — | $ | — | — | % | |||||||
Expenses | 45 | 21 | 24 | 114 | % | ||||||||||
Other income (expenses), net | (55 | ) | (34 | ) | (21 | ) | 62 | % | |||||||
Loss before income tax benefit | $ | (100 | ) | $ | (55 | ) | $ | (45 | ) | 82 | % |
Successor | |||||||
Table 27. Legacy Portfolio | March 31, 2019 | December 31, 2018 | |||||
Performing - UPB | $ | 143 | $ | 145 | |||
Nonperforming (90+ delinquency) - UPB | 25 | 27 | |||||
REO - estimated fair value | 4 | 4 | |||||
Total legacy portfolio | $ | 172 | $ | 176 |
Successor | Predecessor | ||||||||||||||
Table 28. Corporate and Other - Expenses | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Salaries, wages and benefits | $ | 22 | $ | 14 | $ | 8 | 57 | % | |||||||
General and administrative | |||||||||||||||
Operational expenses | 13 | 5 | 8 | 160 | % | ||||||||||
Depreciation and amortization | 10 | 2 | 8 | 400 | % | ||||||||||
Total general and administrative | 23 | 7 | 16 | 229 | % | ||||||||||
Total expenses - Corporate and Other | $ | 45 | $ | 21 | $ | 24 | 114 | % |
Successor | Predecessor | ||||||||||||||
Table 29. Corporate and Other - Other Income (Expenses), Net | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Interest income, legacy portfolio | $ | 2 | $ | 3 | $ | (1 | ) | (33 | )% | ||||||
Other interest income | — | 1 | (1 | ) | (100 | )% | |||||||||
Total interest income | 2 | 4 | (2 | ) | (50 | )% | |||||||||
Interest expense, legacy portfolio | — | (1 | ) | (1 | ) | (100 | )% | ||||||||
Interest expense on unsecured senior notes | (51 | ) | (35 | ) | 16 | 46 | % | ||||||||
Other interest expense | (6 | ) | (2 | ) | 4 | 200 | % | ||||||||
Total interest expense | (57 | ) | (38 | ) | 19 | 50 | % | ||||||||
Other income (expense) | — | — | — | — | % | ||||||||||
Other income (expenses), net - Corporate and Other | $ | (55 | ) | $ | (34 | ) | $ | (21 | ) | (62 | )% | ||||
Weighted average cost - unsecured senior notes | 7.9 | % | 7.3 | % | 0.6 | % | 8 | % |
Successor | ||||||||||||||
Table 31. Assets | March 31, 2019 | December 31, 2018 | $ Change | % Change | ||||||||||
Cash and cash equivalents | $ | 181 | $ | 242 | $ | (61 | ) | (25 | )% | |||||
Mortgage servicing rights | 3,488 | 3,676 | (188 | ) | (5 | )% | ||||||||
Advances and other receivables, net | 1,147 | 1,194 | (47 | ) | (4 | )% | ||||||||
Reverse mortgage interests, net | 7,489 | 7,934 | (445 | ) | (6 | )% | ||||||||
Mortgage loans held for sale at fair value | 2,170 | 1,631 | 539 | 33 | % | |||||||||
Deferred tax asset, net | 1,024 | 967 | 57 | 6 | % | |||||||||
Other | 2,147 | 1,329 | 818 | 62 | % | |||||||||
Total assets | $ | 17,646 | $ | 16,973 | $ | 673 | 4 | % |
Successor | ||||||||||||||
Table 32. Liabilities and Stockholders’ Equity | March 31, 2019 | December 31, 2018 | $ Change | % Change | ||||||||||
Unsecured senior notes, net | $ | 2,461 | $ | 2,459 | $ | 2 | — | % | ||||||
Advance facilities, net | 578 | 595 | (17 | ) | (3 | )% | ||||||||
Warehouse facilities, net | 3,050 | 2,349 | 701 | 30 | % | |||||||||
MSR related liabilities - nonrecourse at fair value | 1,343 | 1,216 | 127 | 10 | % | |||||||||
Other nonrecourse debt, net | 6,388 | 6,795 | (407 | ) | (6 | )% | ||||||||
Other liabilities | 2,065 | 1,614 | 451 | 28 | % | |||||||||
Total liabilities | 15,885 | 15,028 | 857 | 6 | % | |||||||||
Total stockholders’ equity attributable to Nationstar | 1,758 | 1,942 | (184 | ) | (9 | )% | ||||||||
Noncontrolling interest | 3 | 3 | — | — | % | |||||||||
Total liabilities and stockholders’ equity | $ | 17,646 | $ | 16,973 | $ | 673 | 4 | % |
Successor | Predecessor | ||||||||||||||
Table 33. Operating Cash Flow | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Originations net sales activities | $ | 116 | $ | 366 | $ | (250 | ) | (68 | )% | ||||||
Cash provided by operating profits and changes in working capital and other assets | 169 | 571 | (402 | ) | (70 | )% | |||||||||
Net cash attributable to operating activities | $ | 285 | $ | 937 | $ | (652 | ) | (70 | )% |
Successor | Predecessor | ||||||||||||||
Table 34. Investing Cash Flows | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Acquisitions, net | $ | (85 | ) | $ | — | $ | (85 | ) | (100 | )% | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (130 | ) | (17 | ) | (113 | ) | 665 | % | |||||||
Proceeds on sale of assets | — | 13 | (13 | ) | (100 | )% | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 243 | — | 243 | 100 | % | ||||||||||
Other | (10 | ) | (17 | ) | 7 | (41 | )% | ||||||||
Net cash attributable to investing activities | $ | 18 | $ | (21 | ) | $ | 39 | (186 | )% |
Successor | Predecessor | ||||||||||||||
Table 35. Financing Cash Flow | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | $ Change | % Change | |||||||||||
Decrease in advance facilities | $ | (30 | ) | $ | (293 | ) | $ | 263 | (90 | )% | |||||
Increase (decrease) in warehouse facilities | 307 | (125 | ) | 432 | (346 | )% | |||||||||
Repayment of notes payable | (294 | ) | — | (294 | ) | 100 | % | ||||||||
Payment of unsecured senior notes and nonrecourse debt | (5 | ) | (24 | ) | 19 | (79 | )% | ||||||||
Issuance of excess spread financing | 245 | — | 245 | 100 | % | ||||||||||
Settlements of excess spread financing | (50 | ) | (45 | ) | (5 | ) | 11 | % | |||||||
Decrease in participating interest financing in reverse mortgage interests | (408 | ) | (574 | ) | 166 | (29 | )% | ||||||||
Changes in HECM securitizations | (127 | ) | 126 | (253 | ) | (201 | )% | ||||||||
Other | 18 | (4 | ) | 22 | (550 | )% | |||||||||
Net cash attributable to financing activities | $ | (344 | ) | $ | (939 | ) | $ | 595 | (63 | )% |
▪ | Base of $2.5 plus 25 basis points of UPB for total loans serviced. |
▪ | Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. |
▪ | Tangible Net Worth/Total Assets greater than 6%. |
▪ | 3.5 basis points of total Agency servicing (Fannie Mae, Freddie Mac, Ginnie Mae) plus, |
▪ | Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB, |
▪ | Allowable assets for liquidity may include: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines. |
Successor | |||||||
Table 36. Debt | March 31, 2019 | December 31, 2018 | |||||
Advance facilities, net | $ | 578 | $ | 595 | |||
Warehouse facilities, net | 3,050 | 2,349 | |||||
Unsecured senior notes, net | 2,461 | 2,459 |
Year Ending December 31, | Amount | |||
2019 | $ | — | ||
2020 | — | |||
2021 | 592 | |||
2022 | 206 | |||
2023 | 950 | |||
Thereafter | 750 | |||
Unsecured senior notes | 2,498 | |||
Unamortized debt issuance costs | (37 | ) | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ | 2,461 |
Incorporated by Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith |
10.1 | X | |||||
10.2 | X | |||||
10.3 | X | |||||
10.4 | X | |||||
31.1 | X | |||||
31.2 | X | |||||
32.1 | X | |||||
32.2 | X | |||||
101.INS | XBRL Instance Document | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
MR. COOPER GROUP INC. | ||
May 8, 2019 | /s/ Jay Bray | |
Date | Jay Bray Chief Executive Officer (Principal Executive Officer) | |
May 8, 2019 | /s/ Christopher G. Marshall | |
Date | Christopher G. Marshall Vice Chairman & Chief Financial Officer (Principal Financial and Accounting Officer) |
(b) | a copy of this Amendment duly executed by each of the parties hereto; |
(d) | the payment of the Extension Fee (as defined in Amendment No. 5); and |
(b) | a copy of this Amendment duly executed by each of the parties hereto; |
(b) | a copy of this Amendment duly executed by each of the parties hereto; |
(d) | the payment of the Extension Fee (as defined in Amendment No. 5); and |
(b) | a copy of this Amendment duly executed by each of the parties hereto; |
1. | I have reviewed this Quarterly Report on Form 10-Q for the three months ended March 31, 2019 of Mr. Cooper Group Inc.; |
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 officer 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 officer 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 the 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. |
Date: | May 8, 2019 | |||
/s/ Jay Bray | ||||
Jay Bray | ||||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the three months ended March 31, 2019 of Mr. Cooper Group Inc.; |
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 officer 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 officer 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 the 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. |
Date: | May 8, 2019 | |||
/s/ Christopher G. Marshall | ||||
Christopher G. Marshall | ||||
Vice Chairman & 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, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 8, 2019 | ||
/s/ Jay Bray | |||
Jay Bray | |||
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, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 8, 2019 | |
/s/ Christopher G. Marshall | ||
Christopher G. Marshall | ||
Vice Chairman & Chief Financial Officer |
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Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2019 |
Apr. 30, 2019 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | Mr. Cooper Group Inc. | |
Entity Central Index Key | 0000933136 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 91,048,012 |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
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Statement of Financial Position [Abstract] | ||
Mortgage servicing rights at fair value | $ 3,481,000,000 | $ 3,665,000,000 |
Advances and other receivables, Reserves | 71,000,000 | 47,000,000 |
Reverse mortgage interests, Reserves | 8,000,000 | 13,000,000 |
Accumulated depreciation | $ 27,000,000 | $ 16,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Preferred stock, liquidation preference | $ 10 | $ 10 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 91,000,000 | 90,800,000 |
Unaudited Consolidated Statements of Cash Flows - Supplemental Information $ in Millions |
Mar. 31, 2018
USD ($)
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Predecessor | ||||
Cash and cash equivalents | $ 187 | |||
Restricted cash | 365 | |||
Total cash, cash equivalents, and restricted cash | $ 552 | [1] | ||
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Nature of Business and Basis of Presentation |
3 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Nature of Business Mr. Cooper Group Inc., collectively with its consolidated subsidiaries, (“Mr. Cooper”, the “Company”, “we”, “us” or “our”) provides servicing, origination and transaction-based services related to single family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies. The Company’s corporate website is located at www.mrcoopergroup.com. Mr. Cooper, which was previously known as WMIH Corp. (“WMIH”), is a corporation duly organized and existing under the laws of the State of Delaware since May 11, 2015. On July 31, 2018, Wand Merger Corporation (“Merger Sub”), a wholly-owned subsidiary of WMIH merged with and into Nationstar Mortgage Holdings Inc. (“Nationstar”), with Nationstar continuing as a wholly-owned subsidiary of WMIH (the “Merger”). Prior to the Merger, WMIH had limited operations other than its reinsurance business that operated in runoff mode. As a result of the Merger, shares of Nationstar common stock were delisted from the New York Stock Exchange. Following the Merger closing, the combined company traded on NASDAQ under the ticker symbol “WMIH” until October 10, 2018, when WMIH changed its name to “Mr. Cooper Group Inc.” and its ticker symbol to “COOP”. Basis of Presentation For the purpose of financial statement presentation, Mr. Cooper was determined to be the accounting acquirer in the Merger, and Nationstar’s assets and liabilities were recorded at estimated fair value as of the acquisition date. Mr. Cooper’s interim consolidated financial statements for periods following the Merger closing are labeled “Successor” and reflect the acquired assets and liabilities from Nationstar. Under Securities and Exchange Commission (“SEC”) rules, when a registrant succeeds to substantially all of the business of another entity and the registrant’s own operations before the succession appear insignificant relative to the operations assumed or acquired, the registrant is required to present financial information for the acquired entity (the “Predecessor”) for all comparable periods being presented before the acquisition. Due to the acquisition, the Predecessor and Successor financial statements have been prepared on different basis of accounting and are therefore not comparable. Pursuant to the Merger, Nationstar is considered the predecessor company. Therefore, the Company is providing additional information in the accompanying unaudited condensed consolidated financial statements regarding Nationstar’s business for periods prior to July 31, 2018. The predecessor company financial information in this report is labeled “Predecessor” in these consolidated interim financial statements. The consolidated interim financial statements of the Company and Predecessor have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2018. Upon the consummation of the Merger, the Company adopted the significant accounting policies that were implemented by Nationstar and applied to the Predecessor’s financial statements, as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the results of the interim periods have been included. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted. The Company evaluated subsequent events through the date these interim consolidated financial statements were issued. Basis of Consolidation The basis of consolidation described below was adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The Successor’s financial statements reflect the adoption of such standards. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. Intercompany balances and transactions on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. Recent Accounting Guidance Adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), No.2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), primarily impact lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. ASU 2016-02 was effective for the Company on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Company has elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and has not restated comparative periods. The Company elected the package of practical expedients, which, among other items, permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the short-term lease recognition exemption for all leases that qualify. Under this practical expedient, for those leases that qualify, the Company does not recognize right-of-use (“ROU”) assets or lease liabilities, which includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of our leases. The Company did not elect the use-of-hindsight practical expedient. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $114 and an operating lease liability of $124 on January 1, 2019, with no impact on its consolidated statement of operations. There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of this standard. The ROU asset and operating lease liability are recorded in other assets, and payables and other liabilities, respectively, in the consolidated balance sheets. See Note 7, Leases for additional information. Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" (“ASU 2018-15”) aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company on January 1, 2020. Early adoption is permitted, including adoption in any interim period. In the first quarter of 2019, the Company early adopted ASU 2018-15. The standard did not have a material impact to the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), requires expected credit losses for financial instruments held at the reporting date to be measured based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and instead reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-13 on its consolidated financial statements. |
Acquisitions |
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Acquisitions | 2. Acquisitions Acquisition of Pacific Union Financial, LLC On February 1, 2019, the Company completed the acquisition of all the limited liability units of Pacific Union Financial, LLC (“Pacific Union”), a California limited liability company. The purchase price was estimated to be $116, which is subject to adjustment. Pacific Union was a privately-held company that was engaged in the origination as well as servicing of residential mortgage loans, and operated throughout the United States. The acquisition allows the Company to expand its servicing portfolio and increase its mortgage lending volume and capabilities. The acquisition has been accounted for in accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805 (“ASC 805”), Business Combinations, using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on its estimated fair values as of the acquisition date. The determination of fair value estimates requires management to make certain estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and may require adjustments. The Company’s estimates are subject to change as the Company obtains additional information and finalizes its review of estimates during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary allocation of fair value of consideration transferred that are not yet finalized relate to the fair value of mortgage servicing rights, loans held for sale, advances and other receivables and payables and accrued liabilities as the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. Based on the preliminary allocation of fair value, goodwill of $29 has been recorded, which represents the excess of the purchase price over the estimated fair value of tangible and intangible assets acquired, net of the liabilities assumed. The goodwill is primarily attributable to the assembled workforce and synergies with the Company’s current operations. The goodwill is assigned to the Origination and Servicing segments based on expected cash flows and is expected to be deductible for tax purposes.
The purchase price allocation has not been finalized as of March 31, 2019, as the Company continues to analyze respective valuations of acquired assets and assumed liabilities as specified above. The Company incurred total acquisition costs of $2 during the three months ended March 31, 2019, of which $1 are included in salaries, wages and benefits expense and $1 in general and administrative expense in the Company’s consolidated statements of operations. The acquisition costs were primarily related to legal, accounting and consulting services. For the three months ended March 31, 2019, the operations contributed by this acquisition generated consolidated total revenues of $39 and income before income tax of $14, which are reported in the Company’s consolidated statements of operations. The following unaudited pro forma financial information presents the combined results of operations for the three months ended March 31, 2019 as if the transaction had occurred on January 1, 2019.
Acquisition of Nationstar Mortgage Holdings Inc. Upon the Merger with Nationstar on July 31, 2018, each share of Nationstar’s common stock issued and outstanding immediately prior to the Effective Time was converted into the right to receive, at the election of the holder of such share, (i) $18.00 per share in cash, without interest, or (ii) 12.7793 shares (prior to the 1-for-12 reverse stock split) of validly issued, fully paid and nonassessable shares of WMIH common stock (the “Merger Consideration”). The Merger Consideration was subject to automatic proration and adjustment pursuant to the Merger Agreement to ensure that the total amount of cash paid (excluding cash paid in lieu of fractional shares) equaled approximately $1,226. Pursuant to the Merger Agreement, immediately prior to the Effective Time, subject to certain exceptions, (i) each then-outstanding share of Nationstar restricted stock automatically vested in full and was converted into the right to receive the Merger Consideration, as elected by the holder thereof, and (ii) each then-outstanding Nationstar restricted stock unit, whether vested or unvested, was automatically vested in full, assumed by WMIH and converted into a WMIH restricted stock unit entitling the holder thereof to receive upon settlement the Merger Consideration, as elected by the holder. Upon closing the Merger, all outstanding WMIH Series B Preferred Stock and all outstanding warrants to purchase shares of WMIH common stock were converted into common stock of WMIH. Total purchase price was approximately $1,777, consisting of cash paid of $1,226 and transferred stock valued at $551. The purchase price was funded from available cash on hand and borrowings under senior unsecured notes (see discussion below). Prior to the acquisition, Nationstar was a publicly-held company that earned fees through the delivery of servicing, origination and transaction-based services related primarily to single-family residences throughout the United States. This acquisition marks the Company’s initial entry into the mortgage servicing industry that Nationstar operates in and is consistent with the Company’s business strategy. On July 13, 2018, Merger Sub closed the offering of $950 aggregate principal amount of 8.125% Notes due 2023 (the “2023 Notes”) and $750 aggregate principal amount of 9.125% Notes due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “New Notes”). The proceeds from the New Notes were used, together with the proceeds from the issuance of the Company’s common stock and the Company’s cash and restricted cash on hand, to consummate the Company’s acquisition of Nationstar and the refinancing of certain of Nationstar’s existing debt and to pay related fees and expenses. At the consummation of the acquisition, Merger Sub merged with and into Nationstar, with Nationstar continuing as a wholly-owned subsidiary of the Company. After the Merger, Nationstar assumed all of Merger Sub’s obligations under the New Notes. The acquisition has been accounted for in accordance with ASC 805, Business Combinations, using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The Company recorded preliminary goodwill of $65, which represents the excess of the purchase price over the estimated fair value of tangible and intangible assets acquired, net of the liabilities assumed. The goodwill is primarily attributable to the assembled workforce and synergies from the future growth and strategic advantages in the mortgage industry. The entire goodwill is assigned to the Servicing segment and will not be deductible for tax purposes. The table below presents the calculation of aggregate purchase price.
The allocation of the fair value of the acquired business was based on preliminary valuations of the estimated net fair value of the assets acquired. The determination of fair value estimates requires management to make certain estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and may require adjustments. The Company’s estimates are subject to change as the Company obtains additional information and finalizes its review of estimates during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary allocation of fair value of consideration transferred that are not yet finalized relate to the fair value of advances and other receivables and payables and accrued liabilities. The Company will record any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. Fair value adjustments based on updated estimates could materially affect the goodwill recorded on the acquisition. The preliminary allocation of the purchase price to the acquired assets and liabilities is as follows:
The preliminary allocation of fair value as of December 31, 2018 resulted in goodwill of $10. As previously disclosed, the fair value related to reverse mortgage assets and liabilities had not been finalized. During the first quarter of 2019, the Company obtained additional information in finalizing its review regarding a market participant view of the cost to service assumption related to the valuation of reverse mortgage assets and liabilities. This additional information was used in finalizing the Company’s review of the fair value of the reverse mortgage assets and liabilities and resulted in a reduction of $24 in reverse mortgage interests, a reduction of $6 in reverse mortgage servicing rights and an increase of $37 in mortgage servicing liabilities. In addition, a reduction of $12 in payables and other liabilities was recorded for the tax impact related to the revised valuation, for a total adjustment to goodwill of $55. As a result of the revised fair value, the Company recorded $7 to service related, net revenue and $1 to interest income, for a total $8 increase to earnings in the consolidated statement of operations for the three months ended March 31, 2019. Goodwill totaled $65 as of March 31, 2019 after taking into account these measurement period adjustments. The purchase price allocation has not been finalized as of March 31, 2019, as the Company continues to analyze the valuations assigned to the acquired assets and assumed liabilities. During the three months ended March 31, 2019, the Company finalized its valuation of reverse mortgage assets and liabilities related to loan specific cash flows. However, the Company has not yet finalized valuation related to advances and other receivables recorded within reverse mortgage interest primarily as unsecuritized interests in addition to payables and accrued liabilities. WMIH incurred total acquisition costs of $92 prior to the consummation of the Merger, of which $4 was incurred in the three months ended March 31, 2018. The acquisition costs were primarily related to legal, accounting and consulting services and were expensed as incurred through July 31, 2018. Included in the total acquisition costs was a transaction fee of $25 to KKR Capital Markets LLC (“KCM”), an affiliate of KKR Wand Investors Corporation, which is WMIH’s largest stockholder, for acting as a non-exclusive financial advisor to WMIH with respect to the Merger and an arrangement fee of $7 to KCM for acting as a placement agent with respect to a bridge financing facility in connection with the Merger that was not executed. In addition, WMIH incurred $38 of costs related to borrowings under the Notes, which was capitalized in debt costs. WMIH also paid KCM a deferred fee of $8, which initially reduced the carrying value of the Series B Preferred Stock. This fee was payable in connection with the conversion of Series B Preferred Stock to WMIH’s common stock upon consummation of the Merger. The Predecessor incurred total acquisition costs of $27 in connection with the Merger. Included in the Predecessor’s consolidated statements of operations for the three months ended March 31, 2018 were $3 of acquisition costs incurred by Nationstar. Included in the Company’s consolidated statements of operations for the three months ended March 31, 2019 were $1 of acquisition costs related to the compensation arrangements incurred by the Company related to the Merger. Acquisition of Assurant Mortgage Solutions (“AMS”) On August 1, 2018, Xome Holdings LLC, a wholly-owned subsidiary of the Company, acquired AMS for $38 in cash with additional consideration dependent on the achievement of certain future performance targets, which was initially estimated at $15 as of December 31, 2018. Total purchase price was estimated at $53. The acquisition expands Xome’s product footprint and grows its third-party client portfolio across its valuation, title and field services businesses. The Company finalized its purchase price allocation and recorded intangible assets of $24 and goodwill of $13 in 2018. The Company expects entire goodwill to be deductible for tax purposes. Under ASC 805, Business Combinations, the contingent consideration was remeasured to fair value of $4 at March 31, 2019. The $11 change in the fair value was included in other income (expenses) within the consolidated statement of operations for the three months ended March 31, 2019. |
Mortgage Servicing Rights ("MSRs") and Related Liabilities |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Servicing Rights (MSRs) and Related Liabilities | 3. Mortgage Servicing Rights and Related Liabilities The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) and the related liabilities.
Mortgage Servicing Rights The Company owns and records at fair value the rights to service traditional residential mortgage (“forward”) loans for others either as a result of purchase transactions or from the retained servicing associated with the sales and securitizations of loans originated. MSRs are comprised of servicing rights related to both agency and non-agency loans. The following table sets forth the activities of forward MSRs.
From time to time, the Company sells its ownership interest in certain MSRs and is retained as the subservicer for the sold assets. The Company has evaluated the sale accounting requirements related to these transactions, including the Company’s continued involvement as the subservicer, and concluded that these transactions qualify for sale accounting treatment. During the three months ended March 31, 2019, the Company sold $19,409 in unpaid principal balance (“UPB”) of forward MSRs, of which $19,276 in UPB were retained by the Company as subservicer. MSRs measured at fair value are segregated between credit sensitive and interest sensitive pools at acquisition of MSRs. Credit sensitive pools are primarily impacted by borrower performance under specified repayment terms, which most directly impacts involuntary prepayments and delinquency rates. Interest sensitive pools are primarily impacted by changes in forecasted interest rates, which in turn impact voluntary prepayment speeds. The Company assesses whether acquired portfolios are more credit sensitive or interest sensitive in nature on the date of acquisition. Numerous factors are considered in making this assessment, including loan-to-value ratios, FICO scores, percentage of portfolio previously modified, portfolio seasoning and similar criteria. The determination between credit sensitive and interest sensitive for a pool is made at the date of acquisition, and no subsequent changes are made. Credit sensitive portfolios generally consist of higher delinquency, single-family non-conforming residential forward mortgage loans serviced for agency and non-agency investors. Due to the Company’s focus on recapture and modifications, significant amounts of the credit sensitive portfolio have been re-underwritten and, therefore, behave more like the interest sensitive portfolio. Interest sensitive portfolios generally consist of lower delinquency, single-family conforming residential forward mortgage loans for agency investors. The following table provides a breakdown of credit sensitive and interest sensitive unpaid principal balance (“UPB”) for the Company’s forward MSRs.
The Company used the following key weighted-average inputs and assumptions in estimating the fair value of MSRs.
The following table shows the hypothetical effect on the fair value of the Successor’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated.
These hypothetical sensitivities should be evaluated with care. The effect on fair value of a 10% adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Reverse Mortgage Servicing Rights and Liabilities - Amortized Cost The Company services certain HECM reverse mortgage loans with an unpaid principal balance of $27,014 and $28,415 as of March 31, 2019 and December 31, 2018, respectively. Mortgage servicing liabilities (“MSL”) had an ending balance of $90 and $71 as of March 31, 2019 and December 31, 2018, respectively. For the three months ended March 31, 2019 and 2018, the Company and Predecessor accreted $18 and $8 of the MSL and recorded other MSL adjustments of $37 and $3, respectively. The MSL adjustment recorded by the Company relates to the fair value adjustments for MSL assumed from the Merger as a result of revised cost to service assumption in the valuation of MSL during the measurement period. See Note 2, Acquisitions for further information. Such accretion recorded by the Predecessor relates to previous portfolio acquisitions. Reverse MSR had an ending balance of $7 and $11 as of March 31, 2019 and December 31, 2018, respectively. For the three months ended March 31, 2019, the Company amortized $2 and recorded other MSR adjustments of $6. The MSR adjustment recorded by the Company relates to the fair value adjustments for MSR assumed from the Merger as a result of revised cost to service assumption in the valuation of MSR during the measurement period. See Note 2, Acquisitions for further information. For the three months ended March 31, 2018, the Predecessor recorded other MSR adjustments of $4. The fair value of the reverse MSR was $7 and $11 as of March 31, 2019 and December 31, 2018, respectively. The fair value of the MSL was $75 and $53 as of March 31, 2019 and December 31, 2018, respectively. Management evaluates reverse MSRs and MSLs each reporting period for impairment. Based on management’s assessment at March 31, 2019, no impairment or increased obligation was needed. Excess Spread Financing - Fair Value In order to finance the acquisition of certain MSRs on various portfolios, the Company has entered into sale and assignment agreements with a third-party associated with funds and accounts under management of BlackRock Financial Management Inc. (“BlackRock”), a third-party associated with funds and accounts under management of Värde Partners, Inc. (“Varde”) and with certain affiliated entities formed and managed by New Residential Investment Corp. (“New Residential”). The Company sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. Servicing fees associated with traditional MSRs can be segregated into a contractually specified base servicing fee component and an excess servicing fee. The base servicing fee, along with ancillary income and earnings on escrows, is designed to cover costs incurred to service the specified pool plus a reasonable profit margin. The remaining servicing fee is considered excess. The Company retains all the base servicing fee, along with ancillary revenues and earnings on escrows, associated with servicing the Portfolios and retains a portion of the excess servicing fee. The Company continues to be the servicer of the Portfolios and provides all servicing and advancing functions. Contemporaneous with the above, the Company entered into refinanced loan obligations with New Residential, BlackRock and Varde. Should the Company refinance any loan in the Portfolios, subject to certain limitations, it will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above, which is the primary driver of the recapture rate assumption. The range of key assumptions used in the Company’s valuation of excess spread financing are as follows.
The following table shows the hypothetical effect on Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated.
As the cash flow assumptions utilized in determining the fair value amounts in the excess spread financing are based on the related cash flow assumptions utilized in the financed MSRs, any fair value changes recognized in the financed MSRs attributable to a related cash flow assumption would inherently have an inverse impact on the carrying amount of the related excess spread financing. For example, while an increase in discount rates would negatively impact the value of the Company’s financed MSRs, it would reduce the carrying value of the associated excess spread financing liability. These hypothetical sensitivities should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. Mortgage Servicing Rights Financing - Fair Value From December 2013 through June 2014, the Company entered into agreements to sell a contractually specified base servicing fee component of certain MSRs and servicing advances under specified terms to a joint venture capitalized by New Residential and certain unaffiliated third-party investors. The Company continues to be the named servicer, and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with the Company. Accordingly, the Company records the MSRs and an MSR financing liability associated with this transaction in its consolidated balance sheets. The following table sets forth the weighted average assumptions used in the valuation of the mortgage servicing rights financing liability.
The following table sets forth the items comprising revenues associated with servicing loan portfolios.
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Advances and Other Receivables, Net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances and Other Receivables, Net | 4. Advances and Other Receivables, Net Advances and other receivables, net consists of the following.
The Company, as loan servicer, is contractually responsible to advance funds on behalf of the borrower and investor primarily for loan principal and interest, property taxes and hazard insurance and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral or mortgage insurance claims. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables. The Company estimates and records an asset for estimated recoveries to be collected from prior servicers for their respective portion of the losses associated with the underlying loans that were not serviced in accordance with established guidelines. Receivables from prior servicers totaled $94 and $94 for Company’s forward loan portfolio at March 31, 2019 and December 31, 2018, respectively. The following table sets forth the activities of the reserves for advances and other receivables.
Purchase Discount for Advances and Other Receivables In connection with the acquisition of Pacific Union in February 2019, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a preliminary purchase discount of $19. Refer to Note 2, Acquisitions for discussion of the Pacific Union acquisition. In 2018, the Company recorded the acquired advances and other receivables in connection with the Merger at estimated fair value as of the acquisition date, which resulted in a preliminary purchase discount of $302. As of March 31, 2019, a total of $104 purchase discount has been utilized with $217 purchase discount remaining. The following table sets forth the activities of the purchase discounts for advances and other receivables.
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Reverse Mortgage Interests, Net |
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Reverse Mortgage Interests [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Mortgage Interests, Net | 5. Reverse Mortgage Interests, Net Reverse mortgage interests, net consists of the following:
Participating Interests in HMBS Participating interests in HMBS consist of the Company’s reverse mortgage interests in HECM loans which have been transferred to GNMA and subsequently securitized through the issuance of HMBS. During the three months ended March 31, 2019 and 2018, a total of $82 and $85 in UPB was transferred to GNMA and securitized by the Company and Predecessor, respectively. In March 2019, the Company entered into an agreement with Fannie Mae for the transfer of reverse mortgage loans. As a result, $61 was transferred from Fannie Mae and securitized into GNMA HMBS during the three months ended March 31, 2019. Other Interests Securitized Other interests securitized consist of reverse mortgage interests that no longer meet HMBS program eligibility criteria and have been repurchased out of HMBS. These reverse mortgage interests have subsequently been transferred to private securitization trusts and are accounted for as a secured borrowing. No such securitizations occurred during the three months ended March 31, 2019. The Company sold $20 UPB of Trust 2018-3 during the three months ended March 31, 2019. During the three months ended March 31, 2018, the Predecessor securitized a total of $443 UPB through Trust 2018-1 and Trust 2018-2 and a total of $284 UPB from Trust 2016-2 and Trust 2016-3 were called and the related debt was extinguished. Refer to Other Nonrecourse Debt in Note 10, Indebtedness, for additional information. Unsecuritized Interests Unsecuritized interests in reverse mortgages consists of the following:
Unsecuritized interests include repurchased HECM loans for which the Company is required to repurchase from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount (“MCA”) established at origination in accordance with HMBS program guidelines. The Company and the Predecessor repurchased a total of $740 and $1,051 of HECM loans out of GNMA HMBS securitizations during the three months ended March 31, 2019 and 2018, respectively, of which $188 and $229 were subsequently assigned to a third party in accordance with applicable servicing agreements, respectively. To the extent a loan is not subject to applicable servicing agreements and assigned to a third party, the loan is either subject to assignment to U.S. Department of Housing and Urban Development (“HUD”), per contractual obligations with GNMA, liquidated via a payoff from the borrower or liquidated via a foreclosure according to the terms of the underlying mortgage. The Company and the Predecessor also estimate and record an asset for probable recoveries from prior servicers for their respective portion of the losses associated with the underlying loans that were not serviced in accordance with established guidelines. Receivables from prior servicers totaled $16 and $18 for the Company’s reverse loan portfolio at March 31, 2019 and December 31, 2018, respectively. Reserves for Reverse Mortgage Interests The Company records reserves related to reverse mortgage interests based on potential unrecoverable costs and loss exposures expected to be realized. Recoverability is determined based on the Company’s ability to meet HUD servicing guidelines and is viewed as two different categories of expenses: financial and operational. Financial exposures are defined as the cost of doing business related to servicing the HECM product and include potential unrecoverable costs primarily based on HUD claim guidelines related to recoverable expenses and unfavorable changes in the appraised value of the loan collateral. Operational exposures are defined as unrecoverable debenture interest curtailments imposed for missed HUD-specified servicing timelines. Reserves for reverse mortgage interests are related to both financial and operational exposures. The activity of the reserves for reverse mortgage interests is set forth below.
Purchase Discount for Reverse Mortgage Interests In connection with the Merger, the Company recorded the acquired reverse mortgage interests at estimated fair value as of the acquisition date, which resulted in a purchase premium of $42 for participating interests in HMBS, and a purchase discount of $298 for other interest securitized and unsecuritized interests as this population of reverse mortgage interests represents a portion of the portfolio that has more risk of loss attributable to financial and operational exposures related to being serviced through foreclosure and collateral liquidation. The following table sets forth the activities of the purchase premiums and discounts for reverse mortgage interests.
In connection with previous reverse mortgage portfolio acquisitions, the Predecessor recorded a purchase discount within unsecuritized interests. The following table sets forth the activities of the purchase discounts for reverse mortgage interests.
Reverse Mortgage Interest Income The Company accrues interest income for its participating interest in reverse mortgages based on the stated rates underlying HECM loans and FHA guidelines. Total interest earned on the Company’s and the Predecessor’s reverse mortgage interests was $82 and $119 for the three months ended March 31, 2019 and 2018, respectively. |
Mortgage Loans Held for Sale and Investment |
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Mortgage Loans Held for Sale and Investment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Held for Sale and Investment | 6. Mortgage Loans Held for Sale and Investment Mortgage Loans Held for Sale The Company maintains a strategy of originating and purchasing residential mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. The Company focuses on assisting customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases. Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis. Mortgage loans held for sale are recorded at fair value as set forth below.
The Company accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. Accrued interest is recorded as interest income in the consolidated statements of operations. The total UPB of mortgage loans held for sale on non-accrual status was as follows:
From time to time, the Company exercises its right to repurchase individual delinquent loans in Ginnie Mae securitization pools to minimize interest spread losses, to re-pool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. During the three months ended March 31, 2019, the Company repurchased $67 of delinquent Ginnie Mae loans and securitized or sold to third-party investors $39 of previously repurchased loans. During the three months ended March 31, 2018, the Predecessor repurchased $68 of delinquent Ginnie Mae loans and securitized or sold to third-party investors $88 of previously repurchased loans. As of March 31, 2019 and 2018, $43 and $39 of the repurchased loans have re-performed and were held in accrual status, respectively, and remaining balances continue to be held under a nonaccrual status. The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $20 and $33 as of March 31, 2019 and December 31, 2018, respectively. The following table details a roll forward of the change in the account balance of mortgage loans held for sale.
For the three months ended March 31, 2019 and 2018, the Company received proceeds of $6,194 and $5,709, respectively, on the sale of mortgage loans held for sale, resulting in gains of $106 and $60, respectively. The Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale. The amounts repurchased out of Ginnie Mae pools, as presented above, are primarily in connection with loan modifications and loan resolution activity as part of the Company’s contractual obligations as the servicer of the loans. Mortgage Loans Held for Investment The following sets forth the composition of mortgage loans held for investment, net.
The total UPB of mortgage loans held for investment on non-accrual status was as follows for the dates indicated.
The following table details a roll forward of the change in the account balance of mortgage loans held for investment.
The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was $13 and $15 as of March 31, 2019 and December 31, 2018, respectively. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases, Finance | 7. Leases Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and payables and other liabilities, respectively, on its consolidated balance sheets as of March 31, 2019. The Company does not currently have any significant finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in general and administrative expenses in the consolidated statements of operations. The Company’s leases relate primarily to office space and equipment, with remaining lease terms of generally 1 to 9 years. Certain lease arrangements contain extension options, which typically range from 3 to 5 years, at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. As of March 31, 2019, operating lease ROU assets and liabilities were $133 and $142, respectively. The table below summarizes the Company’s net lease cost:
The table below summarizes other information related to Company’s operating leases:
Maturities of operating lease liabilities as of March 31, 2019 are as follows:
Finance lease liability was $3 as of March 31, 2019, majority of which matures within a year. |
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Leases, Operating | 7. Leases Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and payables and other liabilities, respectively, on its consolidated balance sheets as of March 31, 2019. The Company does not currently have any significant finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in general and administrative expenses in the consolidated statements of operations. The Company’s leases relate primarily to office space and equipment, with remaining lease terms of generally 1 to 9 years. Certain lease arrangements contain extension options, which typically range from 3 to 5 years, at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. As of March 31, 2019, operating lease ROU assets and liabilities were $133 and $142, respectively. The table below summarizes the Company’s net lease cost:
The table below summarizes other information related to Company’s operating leases:
Maturities of operating lease liabilities as of March 31, 2019 are as follows:
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 8. Other Assets Other assets consist of the following:
Loans Subject to Repurchase Right from Ginnie Mae Forward loans are sold to Ginnie Mae in conjunction with the issuance of mortgage backed securities. The Company, as the issuer of the mortgage backed securities, has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once the Company has the unilateral right to repurchase a delinquent loan, it has effectively regained control over the loan and recognizes these rights to the loan on its consolidated balance sheets and establishes a corresponding repurchase liability regardless of the Company’s intention to repurchase the loan. The amount as of March 31, 2019 includes $510 from Pacific Union. Accrued Revenues Accrued revenues are primarily comprised of service fees earned but not received based upon the terms of the Company’s servicing and subservicing agreements. Right of Use Assets Right of use assets are recognized for operating leases as a result of adoption of ASC 842. See Note 7, Leases for additional information. Goodwill and Intangible Assets The following presents changes in the carrying amount of goodwill for the three months ended March 31, 2019.
In 2018, the Company recorded goodwill of $10 and $13 in connection with the acquisitions of Nationstar and Assurant Mortgage Solutions, respectively. See further discussion in Note 2, Acquisitions. In 2019, the Company recorded intangible assets of $11 in connection with the acquisitions of Pacific Union. In 2018, the Company recorded intangible assets of $103 and $24 in connection with the acquisitions of Nationstar and Assurant Mortgage Solutions, respectively. See further discussion in Note 2, Acquisitions. Other Other primarily includes derivative financial instruments, prepaid expenses, deposits, real estate owned (REO), tax receivables and non-advance related accounts receivable due from investors. See Note 9, Derivative Financial Instrument, for further details on derivative financial instruments REO includes $10 and $10 of REO-related receivables with government insurance at March 31, 2019 and December 31, 2018, respectively, limiting loss exposure to the Company and the Predecessor. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | 9. Derivative Financial Instrument Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap agreements. Associated with the Company’s derivatives are $15 and $12 in collateral deposits on derivative instruments recorded in other assets on the Company’s consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the consolidated balance sheets. The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses).
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Indebtedness | 10. Indebtedness Notes Payable
Unsecured Senior Notes Unsecured senior notes consist of the following:
The indentures for the unsecured senior notes contain various covenants and restrictions that limit the issuer(s) and restricted subsidiaries ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the applicable indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the unsecured senior notes provide that the Company may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest, to the redemption dates. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased during the three months ended March 31, 2019. The Predecessor repurchased $16 in principal of outstanding notes during the three months ended March 31, 2018 resulting in a loss of $0.4. Additionally, the indentures provide that on or before certain fixed dates, the Company may redeem (x) in the case of the New Notes, up to 40%, or (y) in the case of the other series of unsecured senior notes, up to 35% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. As of March 31, 2019, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Other Nonrecourse Debt Other nonrecourse debt consists of the following:
Participating Interest Financing Participating interest financing represents the obligation of HMBS pools to third-party security holders. The Company and Predecessor issue HMBS in connection with the securitization of borrower draws and accrued interest on HECM loans. Proceeds are received in exchange for securitized advances on the HECM loan amounts transferred to GNMA, and the Company retains a beneficial interest (referred to as a “participating interest”) in the securitization trust in which the HECM loans and HMBS obligations are held and assume both issuer and servicer responsibilities in accordance with GNMA HMBS program guidelines. Monthly cash flows generated from the HECM loans are used to service the HMBS obligations. The interest rate is based on the underlying HMBS rate with a range of 2.8% to 6.1%. Securitizations of Nonperforming HECM Loans From time to time, the Company securitizes its interests in non-performing reverse mortgages. The transactions provide investors with the ability to invest in a pool of both non-performing HECM loans secured by one-to-four-family residential properties and a pool of REO properties acquired through foreclosure of a deed in lieu of foreclosure in connection with HECM loans that are covered by FHA insurance. The transactions provide the Company with access to liquidity for the non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as reverse mortgage interests and the related financing included in other nonrecourse debt. Interest is accrued at a rate of 2.0% to 6.0% on the outstanding securitized notes and recorded as interest expense in consolidated statements of operations. The HECM securitizations are callable with expected weighted average lives of less than one to four years. The Company may re-securitize the previously called loans from earlier HECM securitizations to achieve a lower cost of funds. Nonrecourse Debt – Legacy Assets During November 2009, the Company completed the securitization of approximately $222 of Asset-Backed Securities (“ABS”), which was accounted for as a secured borrowing. This structure resulted in the Company carrying the securitized mortgage loans in its consolidated balance sheets and recognizing the asset-backed certificates acquired by third parties. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.5%, which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $156 and $160 at March 31, 2019 and December 31, 2018, respectively. The UPB on the outstanding loans were $26 and $29 at March 31, 2019 and December 31, 2018, respectively, and the carrying value of the nonrecourse debt were $26 and $29, respectively. Financial Covenants The Company’s borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. The Company was in compliance with its required financial covenants as of March 31, 2019. The Company is required to maintain a minimum tangible net worth of at least $682 as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of March 31, 2019, the Company was in compliance with these minimum tangible net worth requirements. |
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Payables and Other Liabilities | 11. Payables and Other Liabilities Payables and other liabilities consist of the following:
Loans Subject to Repurchase from Ginnie Mae See Note 8, Other Assets, for a description of assets and liabilities related to loans subject to repurchase from Ginnie Mae. The amount as of March 31, 2019 includes $510 related to Pacific Union. Payables to Servicing and Subservicing Investors and Payables to GSEs and Securitized Trusts Payables to servicing and subservicing investors, GSEs and securitized trusts represent amounts due to investors, GSEs and securitized trusts in connection with loans serviced that are paid from collections of the underlying loans, insurance proceeds or proceeds from property disposal. Operating lease liabilities Operating lease liabilities are recognized as a result of adoption of ASC 842. See Note 7, Leases for additional information. MSR purchases payable including advances MSR purchases payable including advances represents the amounts owed to the seller in connection with the purchase of MSRs. Other Liabilities Other liabilities primarily include accrued bonus and payroll, accrued interest, accrued legal expenses, payable to insurance carriers and insurance cancellation reserves, derivative financial instruments, repurchase reserves, accounts payable and other accrued liabilities. Payables to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third-party investors on liquidated loans. See Note 9, Derivative Financial Instrument, for further details on derivative financial instruments.
The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser’s losses related to forward loans. Certain sale contracts and GSE standards require the Predecessor and subsequently the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties, such as the manner of origination, the nature and extent of underwriting standards. In the event of a breach of the representations and warranties, the Predecessor and subsequently the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that the Predecessor and subsequently the Company refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. The Predecessor and the Company record a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against net gain on mortgage loans held for sale. A release of repurchase reserves is recorded when the Predecessor and Company’s assessment reveals that previously recorded reserves are no longer needed. A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, a GSE will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for Home Affordable Refinance Program (“HARP”) loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months. The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. Current loss rates have significantly declined attributable to stronger underwriting standards and due to the falloff of loans underwritten prior to mortgage loan crisis period prior to 2008. The Company believes its reserve balance as of March 31, 2019 is sufficient to cover loss exposure associated with repurchase contingencies. |
Securitizations and Financings |
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Variable Interest Entities and Securitizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitizations and Financings | 12. Securitizations and Financings Variable Interest Entities (VIE) In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”) determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. The Company has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT) and (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as the Company is the primary beneficiary of each of these entities. Also, the Company consolidated four reverse mortgage SPEs as it is the primary beneficiary of each of these entities. These SPEs include the Nationstar HECM Loan Trusts. A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s consolidated financial statements is presented below.
The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company.
The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2019 and December 31, 2018 and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below.
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Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders' Equity Upon the consummation of the Merger, the Company assumed and adopted the Nationstar Mortgage Holdings Inc. Second Amended and Restated 2012 Incentive Compensation Plan (“2012 Plan”), as may be amended, that offers equity-based awards to certain key employees of the Company, consultants, and non-employee directors. The equity-based awards include restricted stock units (“RSUs”) granted to employees. These awards are valued at the fair market value of the Company’s common stock on the grant date as defined in the 2012 Plan. During the three months ended March 31, 2019 and 2018, certain employees of the Company and Predecessor were granted 1,873 thousand and 934 thousand RSUs, respectively. The stock awards generally vest in installments of 33.3%, 33.3% and 33.4% respectively on each of the first three anniversaries of the awards, provided that (i) the participant remains continuously employed with the Company during that time or (ii) the participant’s employment has terminated by reason of retirement. In addition, upon death, disability or generally a change in control of the Company, the unvested shares of an award will vest. The value of the stock awards is measured based on the market value of common stock of the Company or its Predecessor on the grant date. The Company and the Predecessor recorded $4 and $4 of expenses related to equity-based awards during the three months ended March 31, 2019 and 2018, respectively. |
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Earnings Per Share | 14. Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. The following table sets forth the computation of basic and diluted net (loss) income per common share (amounts in millions, except per share amounts).
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Income Taxes | 15. Income Taxes The components of income tax (benefit) expense on continuing operations were as follows:
For the three months ended March 31, 2019, the effective tax rate differed from the statutory federal rate of 21% primarily due to permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m) and nondeductible meals and entertainment expenses, as well as other recurring items such as the state tax benefit. For the three months ended March 31, 2018 in the Predecessor period, the effective tax rate differed slightly from the statutory federal rate of 21% primarily due to permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m), favorable discrete adjustments in connection with the remediation of the Company’s uncertain tax position, and other recurring adjustments, such as state tax expense offset by excess tax benefit related to restricted share-based compensation. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 16. Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). The following describes the methods and assumptions used by the Company in estimating fair values: Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value. Mortgage Loans Held for Sale (Level 2) – The Company originates mortgage loans in the U.S. that it intends to sell into Fannie Mae, Freddie Mac and Ginnie Mae (collectively, the “Agencies”) MBS. Additionally, the Company holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. The Company measures newly originated prime residential mortgage loans held for sale at fair value. Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. The Company classifies these valuations as Level 2 in the fair value disclosures. The Company may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The Company has elected to carry these loans at fair value. See Note 6, Mortgage Loans Held for Sale and Investment, for more information. Mortgage Loans Held for Investment (Level 3) – Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value and which the Company intends to hold these loans to their maturities. The Company determines the fair value of loans held for investment, on a recurring basis, based on various underlying attributes such as market participants’ views, loan delinquency, recent observable loan pricing and sales for similar loans, individual loan characteristics and internal market evaluation. These internal market evaluations require the use of judgment by the Company and can have a significant impact on the determination of the loan’s fair value. As these fair values are derived from internally developed valuation models, using observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 6, Mortgage Loans Held for Sale and Investment, for more information. Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its forward MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary revenues, earnings on escrows and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by the Company and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 3, Mortgage Servicing Rights and Related Liabilities, for more information. Advances and Other Receivables, Net (Level 3) - Advances and other receivables, net are valued at their net realizable value after taking into consideration the reserves. Advances have no stated maturity. Their net realizable value approximates fair value as the net present value based on discounted cash flow is not materially different from the net realizable value. Reverse Mortgage Interests, Net (Level 3) – The Company’s reverse mortgage interests are primarily comprised of HECM loans that are insured by FHA and guaranteed by Ginnie Mae upon securitization. Quarterly, the Company estimates fair value using discounted cash flows, obtained from a third-party, with the discount rate approximate that of similar financial instruments. Key assumptions within the model are based on market participant benchmarks and include discount rates, cost to service, weighted average life of the portfolio, and estimated servicing fee income. Discounted cash flows are applied based on collateral stratifications and include loan rate type, loan status (active vs. inactive), and securitization. Prices are also influenced from both internal models and other observable inputs. The Predecessor determined fair value for active reverse mortgage loans based on pricing of the recent securitizations with similar attributes and characteristics, such as collateral values and prepayment speeds and adjusted as necessary for differences. The related timing of these transactions allowed the pricing to consider the current interest rate risk exposures. The fair value of inactive reverse mortgage loans was established based upon a discounted par value of the loan derived from the Predecessor’s historical loss factors experience on foreclosed loans. Derivative Financial Instruments (Level 2) – The Company enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the consolidated balance sheets. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, the Company enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of underlying mortgage loans which are based on observable market data. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. The Company has entered into Eurodollar futures contracts as part of its hedging strategy. The futures contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. See Note 9, Derivative Financial Instrument, for more information. Advance Facilities and Warehouse Facilities (Level 2) – As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheets approximates fair value. See Note 10, Indebtedness, for more information. Unsecured Senior Notes (Level 1) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value. See Note 10, Indebtedness, for more information. Nonrecourse Debt – Legacy Assets (Level 3) – The Company estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. See Note 10, Indebtedness, for more information. Excess Spread Financing (Level 3) – The Company estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 3, Mortgage Servicing Rights and Related Liabilities, for more information. Mortgage Servicing Rights Financing Liability (Level 3) - The Company estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being advance financing rates and annual advance recovery rates. As these assumptions are derived from internally developed valuation models based on the value of the underlying MSRs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 3, Mortgage Servicing Rights and Related Liabilities, for more information. Participating Interest Financing (Level 2) – The Company estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. The Predecessor estimated the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. The Predecessor classified these valuations as Level 2 in the fair value disclosures. See Note 3, Mortgage Servicing Rights and Related Liabilities, and Note 10, Indebtedness, for more information. HECM Securitizations (Level 3) – The Company estimates fair value using a market approach by utilizing the fair value of executed HECM securitizations. Since the executed HECM securitizations are private placements, the Company classifies these valuations as Level 3 in the fair value disclosures. The Predecessor estimated fair value of the nonrecourse debt related to HECM securitization based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, the Predecessor classified this as Level 3 in the fair value disclosures. See Note 10, Indebtedness for more information. The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis.
The table below presents a reconciliation for all of the Company and Predecessor’s Level 3 assets and liabilities measured at fair value on a recurring basis.
No transfers were made into or out of Level 3 fair value assets and liabilities for the Company and Predecessor for the three months ended March 31, 2019 and 2018, respectively. The table below presents a summary of the estimated carrying amount and fair value of the Company’s financial instruments.
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Capital Requirements |
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Mar. 31, 2019 | |
Mortgage Banking [Abstract] | |
Capital Requirements | 17. Capital Requirements Certain of the Company’s secondary market investors require minimum net worth (“capital”) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, the Company’s secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of the Company’s selling and servicing agreements, which would prohibit the Company from further originating or securitizing these specific types of mortgage loans or being an approved servicer. Among the Company’s various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires the Company to maintain a minimum adjusted net worth balance of $829. As of March 31, 2019, the Company was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Litigation and Regulatory Matters The Company and its subsidiaries are routinely and currently involved in a significant number of legal proceedings, including, but not limited to, judicial, arbitration, regulatory and governmental proceeds related to matters that arise in connection with the conduct of Company’s business. The legal proceedings are at varying stages of adjudication, arbitration or investigation and are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, National Housing Act, Homeowners Protection Act, Service Member’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Home Mortgage Disclosure Act, Title 11 of the United States Code (aka the “Bankruptcy Code”), False Claims Act and Making Home Affordable loan modification programs. In addition, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, regarding alleged breaches of representations and warranties relating to the sale of mortgage loans, the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the pending or threatened legal proceedings include claims for substantial compensatory, punitive and/or statutory damages or claims for an indeterminate amount of damages. The Company’s business is also subject to extensive examinations, investigations and reviews by various federal, state and local governmental, regulatory and enforcement agencies. The Company has historically had a number of open investigations with these agencies and that trend continues. The Company is currently the subject of various governmental or regulatory investigations, subpoenas, examinations and inquiries related to its residential loan servicing and origination practices, bankruptcy and collections practices, its financial reporting and other aspects of its businesses. These matters include investigations by the Consumer Financial Protection Bureau (the “CFPB”), the Securities and Exchange Commission, the Executive Office of the United States Trustees, the Department of Justice, the Office of the Special Inspector General for the Troubled Asset Relief Program, the U.S. Department of Housing and Urban Development, the multi-state committee of mortgage banking regulators and various State Attorneys General. These specific matters and other pending or potential future investigations, subpoenas, examinations or inquiries may lead to administrative, civil or criminal proceedings or settlements, and possibly result in remedies including fines, penalties, restitution, or alterations in the Company’s business practices, and in additional expenses and collateral costs. Responding to these matters requires the Company to devote substantial resources, resulting in higher costs and lower net cash flows. For example, the Company continues to progress towards resolution of certain legacy regulatory matters involving examination findings for alleged violations of certain laws related to the Company’s business practices. The Company has been in discussions with the multi-state committee of mortgage banking regulators and various State Attorneys General concerning a potential resolution of their investigations. The Company is continuing to cooperate with all parties. In connection with these discussions, the Company previously recorded an accrual. These discussions may not result in a settlement of the matter; furthermore, any such settlement may exceed the amount accrued as of March 31, 2019. Moreover, if the discussions do not result in a settlement, the regulators and State Attorneys General may seek to exercise their enforcement authority through litigation or other proceedings and seek injunctive relief, damages, restitution and civil monetary penalties, which could have a material adverse effect on the Company’s business, reputation, financial condition and results of operations. Further, on April 24, 2018, the CFPB notified Nationstar that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering whether to recommend that the CFPB take enforcement action against the Company, alleging violations of the Real Estate Settlement Procedures Act, the Consumer Financial Protection Act, and the Homeowners Protection Act, which stems from a 2014 examination. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action may be recommended or commenced. The CFPB may seek to exercise its enforcement authority through settlement, administrative proceedings or litigation and seek injunctive relief, damages, restitution and civil monetary penalties, which could have a material adverse effect on the Company’s business, reputation, financial condition and results of operations. The Company has not recorded an accrual related to this matter as of March 31, 2019 because it does not believe that the possible loss or range of loss arising from any such action is estimable. The Company is continuing to cooperate with the CFPB. Similarly, the Company is in discussions with the Executive Office of the United States Trustees concerning certain legacy issues with respect to bankruptcy servicing practices. In connection with these discussions, the Company is undertaking certain voluntary remediation activities with respect to loans at issue in these matters. While the Company and the Executive Office of the United States Trustees are engaged in discussions to potentially resolve these issues, there is no guarantee a resolution will occur. Moreover, if the discussions do not result in a resolution, the Executive Office of the United States Trustees may seek redress through litigation or other proceedings and seek injunctive relief, damages and restitution in addition to the remediation activities, which could have a material adverse effect on the Company’s business, reputation, financial condition and results of operations. However, the Company believes it is premature to predict the potential outcome or to estimate the financial impact to the Company in connection with any potential action or settlement arising from this matter, including the voluntary remediation activities undertaken and to be undertaken by the Company. In addition, the Company is a defendant in a class action proceeding originally filed in state court in March 2012 and then removed to the United States District Court for the Eastern District of Washington under the caption Laura Zamora Jordan v. Nationstar Mortgage LLC. The suit was filed on behalf of a class of Washington borrowers and challenges property preservation measures the Company took, as loan servicer, after the borrowers defaulted and the Company’s vendors determined that the borrowers had vacated or abandoned their properties. The case raises claims for (i) common law trespass, (ii) statutory trespass, and (iii) violation of Washington’s Consumer Protection Act, and seeks recovery of actual, statutory, and treble damages, as well as attorneys’ fees and litigation costs. On July 25, 2018, the Company entered into a settlement agreement to resolve this matter. The parties are currently seeking approval of the final settlement from the court. The Company is pursuing reimbursement of the settlement payment from the owners of the loans it serviced, but there can be no assurance that the Company would prevail with any claims for reimbursement. The Company is a defendant in a proceeding filed on January 2, 2018 in the U.S. District Court for the Northern District of California under the caption Collateral Analytics LLC v. Nationstar Mortgage LLC et al. The plaintiff alleges that the Company misappropriated plaintiff’s intellectual property for the purpose of replicating plaintiff’s products. The case raises federal and state law claims for misappropriation of trade secrets and breach of contract and seeks an award of actual damages, unjust enrichment, lost profits and/or a reasonable royalty, exemplary damages and injunctive relief preventing further misuse or disclosure of plaintiff’s intellectual property. The Company believes it has meritorious defenses and will vigorously defend itself in this matter. The Company is also a defendant in a proceeding filed on October 23, 2015 in the U.S. District Court for the Central District of California under the caption Alfred Zaklit and Jessy Zaklit, individually and on behalf of all others similarly situated v. Nationstar Mortgage LLC et al. The plaintiff alleges that the Company improperly recorded telephone calls without the knowledge or consent of borrowers in violation of the California Penal Code. On July 24, 2017, the court certified a class comprised of California borrowers who, from October 2014 to May 2016, participated in outbound telephone conversations with the Company’s employees who recorded the conversations without first informing the borrowers that the conversations were being recorded. The class seeks statutory damages and attorney’s fees. On September 10, 2018, the Company reached an agreement in principal to settle this matter, and the parties are currently seeking approval of the settlement from the court. The Company seeks to resolve all legal proceedings and other matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. The Company has entered into agreements with a number of entities and regulatory agencies that toll applicable limitations periods with respect to their claims. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory and governmental proceedings utilizing the latest information available. Where available information indicates that it is probable, a liability has been incurred, and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. As a legal matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company will establish an accrued liability and record a corresponding amount to legal-related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Legal-related expense for the Company and Predecessor, which includes legal settlements and the fees paid to external legal service providers, of $11 and $4 for the three months ended March 31, 2019 and 2018, respectively, was included in general and administrative expenses on the consolidated statements of operations. For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material legal matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $14 to $36 in excess of the accrued liability (if any) related to those matters as of March 31, 2019. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure and the Company cannot provide assurance that its litigations reserves will not need to be adjusted in the future. Thus, the Company’s exposure and ultimate losses may be higher, possibly significantly so, than the amounts accrued or this aggregate amount. In the Company’s experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; the Company has not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; predicting possible outcomes depends on making assumptions about future decisions of courts or governmental or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for the Company to estimate losses or ranges of losses that is reasonably possible the Company could incur. Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability within payables and accrued liabilities, is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. Other Loss Contingencies As part of the Company’s ongoing operations, it acquires servicing rights of forward and reverse mortgage loan portfolios that are subject to indemnification based on the representations and warranties of the seller. From time to time, the Company will seek recovery under these representations and warranties for incurred costs. The Company believes all balances sought from sellers recorded in advances and other receivables and reverse mortgage interests represent valid claims. However, the Company acknowledges that the claims process can be prolonged due to the required time to perfect claims at the loan level. Because of the required time to perfect or remediate these claims, management relies on the sufficiency of documentation supporting the claim, current negotiations with the counterparty and other evidence to evaluate whether a reserve is required for non-recoverable balances. In the absence of successful negotiations with the seller, all amounts claimed may not be recovered. Balances may be written-off and charged against earnings when management identifies amounts where recoverability from the seller is not likely. As of March 31, 2019, the Company believes all recorded balances for which recovery is sought from the seller are valid claims, and no evidence suggests additional reserves are warranted at this time. Loan and Other Commitments The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. The Company also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 9, Derivative Financial Instrument, for more information. The Company and the Predecessor had certain reverse MSRs, reverse MSLs and reverse mortgage loans related to approximately $27,014 and $28,415 of UPB in reverse mortgage loans as of March 31, 2019 and December 31, 2018, respectively. As servicer for these reverse mortgage loans, among other things, the Company is obligated to fund borrowers’ draws to the loan customers as required in accordance with the loan agreement. As of March 31, 2019 and December 31, 2018, the Company’s maximum unfunded advance obligation to fund borrower draws related to these MSRs and loans was approximately $3,005 and $3,128, respectively. Upon funding any portion of these draws, the Company and the Predecessor expect to securitize and sell the advances in transactions that will be accounted for as secured borrowings. |
Business Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Reporting | 19. Business Segment Reporting Upon consummation of the Merger with Nationstar, the Company has identified four reportable segments: Servicing, Originations, Xome and Corporate and other. The Company’s segments are based upon the Company’s organizational structure, which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on the actual cost of services performed based on direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. The following tables present financial information by segment.
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Guarantor Financial Statement Information |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Statement Information | 20. Guarantor Financial Statement Information As of March 31, 2019, Nationstar Mortgage LLC and Nationstar Capital Corporation(1) (collectively, the “Issuer”), both wholly-owned subsidiaries of the Company, have issued a 6.500% unsecured senior notes due July 2021 with an outstanding aggregate principal amount of $592 and a 6.500% unsecured senior notes due June 2022 with an outstanding aggregate principal amount of $206 (collectively, the “unsecured senior notes”). The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries 100% are owned by Nationstar Mortgage LLC. The Company and its three wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of the Company, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated. In the condensed consolidating financial statements presented below, the Company allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes.
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Transactions with Affiliates |
3 Months Ended |
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Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | 21. Transactions with Affiliates Nationstar previously entered into arrangements with Fortress Investment Group (“Fortress”), its subsidiaries managed funds, or affiliates for purposes of financing the Company’s MSR acquisitions and performing services as a subservicer. Prior to the Merger with Nationstar on July 31, 2018, an affiliate of Fortress held a majority of the outstanding common shares of the Predecessor. Subsequent to the Merger, Fortress is no longer an affiliate of the Company. Refer to Note 2, Acquisitions, for additional information. The following summarizes the Predecessor’s transactions with affiliates of Fortress prior to the Merger on July, 31 2018. New Residential Excess Spread Financing The Predecessor has entered into several agreements with certain entities managed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a “New Residential Entity”). The Predecessor sold to the related New Residential Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after a receipt of a fixed base servicing fee per loan. The Predecessor, as the servicer of the loans, retains all ancillary revenues and the remaining portion of the excess cash flow after payment of the fixed base servicing fee and also provides all advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. Should the Company refinance any loan in such portfolios, subject to certain limitations, the Company will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above. The fees paid to New Residential Entity by the Predecessor totaled $53 during the three months ended March 31, 2018, which were recorded as a reduction to servicing fee revenue, net. Mortgage Servicing Rights Financing From December 2013 through June 2014, the Predecessor entered into agreements to sell a contractually specified base fee component of certain MSRs and servicing advances under specified terms to a joint venture capitalized by New Residential and certain unaffiliated third-parties. The Company continues to be the named servicer, and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with the Company. Accordingly, the Company accounts for the MSRs and the related MSRs financing liability on its consolidated balance sheets. The Company will continue to sell future servicing advances to New Residential. The Predecessor did not enter into any additional supplemental agreements with these affiliates in 2018. Subservicing and Servicing In January 2017, the Predecessor entered into a subservicing agreement with a subsidiary of New Residential. The Predecessor earned $19 of subservicing fees and other subservicing revenues during the three months ended March 31, 2018. In May 2014, the Predecessor entered into a servicing arrangement with New Residential whereby the Predecessor services residential mortgage loans acquired by New Residential and/or its various affiliates and trust entities. For the three months ended March 31, 2018, the Predecessor recognized approximately $1 related to these service arrangements. |
Nature of Business and Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation For the purpose of financial statement presentation, Mr. Cooper was determined to be the accounting acquirer in the Merger, and Nationstar’s assets and liabilities were recorded at estimated fair value as of the acquisition date. Mr. Cooper’s interim consolidated financial statements for periods following the Merger closing are labeled “Successor” and reflect the acquired assets and liabilities from Nationstar. Under Securities and Exchange Commission (“SEC”) rules, when a registrant succeeds to substantially all of the business of another entity and the registrant’s own operations before the succession appear insignificant relative to the operations assumed or acquired, the registrant is required to present financial information for the acquired entity (the “Predecessor”) for all comparable periods being presented before the acquisition. Due to the acquisition, the Predecessor and Successor financial statements have been prepared on different basis of accounting and are therefore not comparable. Pursuant to the Merger, Nationstar is considered the predecessor company. Therefore, the Company is providing additional information in the accompanying unaudited condensed consolidated financial statements regarding Nationstar’s business for periods prior to July 31, 2018. The predecessor company financial information in this report is labeled “Predecessor” in these consolidated interim financial statements. The consolidated interim financial statements of the Company and Predecessor have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2018. Upon the consummation of the Merger, the Company adopted the significant accounting policies that were implemented by Nationstar and applied to the Predecessor’s financial statements, as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the results of the interim periods have been included. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted. The Company evaluated subsequent events through the date these interim consolidated financial statements were issued. |
Basis of Consolidation | Basis of Consolidation The basis of consolidation described below was adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The Successor’s financial statements reflect the adoption of such standards. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. Intercompany balances and transactions on consolidated entities have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. |
Recent Accounting Guidance Adopted and Not Yet Adopted | Recent Accounting Guidance Adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), No.2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), primarily impact lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. ASU 2016-02 was effective for the Company on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Company has elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and has not restated comparative periods. The Company elected the package of practical expedients, which, among other items, permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the short-term lease recognition exemption for all leases that qualify. Under this practical expedient, for those leases that qualify, the Company does not recognize right-of-use (“ROU”) assets or lease liabilities, which includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of our leases. The Company did not elect the use-of-hindsight practical expedient. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $114 and an operating lease liability of $124 on January 1, 2019, with no impact on its consolidated statement of operations. There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of this standard. The ROU asset and operating lease liability are recorded in other assets, and payables and other liabilities, respectively, in the consolidated balance sheets. See Note 7, Leases for additional information. Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" (“ASU 2018-15”) aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company on January 1, 2020. Early adoption is permitted, including adoption in any interim period. In the first quarter of 2019, the Company early adopted ASU 2018-15. The standard did not have a material impact to the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), requires expected credit losses for financial instruments held at the reporting date to be measured based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and instead reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-13 on its consolidated financial statements. |
Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price to the acquired assets and liabilities is as follows:
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Schedule of Business Acquisitions | The table below presents the calculation of aggregate purchase price.
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Pro Forma Information | The following unaudited pro forma financial information presents the combined results of operations for the three months ended March 31, 2019 as if the transaction had occurred on January 1, 2019.
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Mortgage Servicing Rights ("MSRs") and Related Liabilities (Tables) |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Servicing Assets at Fair Value | The following table provides a breakdown of credit sensitive and interest sensitive unpaid principal balance (“UPB”) for the Company’s forward MSRs.
The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) and the related liabilities.
The following table sets forth the activities of forward MSRs.
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Schedule of Assumptions for Fair Value of Mortgage Service Rights | The following table sets forth the weighted average assumptions used in the valuation of the mortgage servicing rights financing liability.
The Company used the following key weighted-average inputs and assumptions in estimating the fair value of MSRs.
The range of key assumptions used in the Company’s valuation of excess spread financing are as follows.
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Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | The following table shows the hypothetical effect on Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated.
The following table shows the hypothetical effect on the fair value of the Successor’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated.
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Schedule of Fees Earned in Exchange for Servicing Financial Assets | The following table sets forth the items comprising revenues associated with servicing loan portfolios.
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Advances and Other Receivables, Net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | The following table sets forth the activities of the reserves for advances and other receivables.
The following table sets forth the activities of the purchase discounts for advances and other receivables.
Advances and other receivables, net consists of the following.
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Reverse Mortgage Interests, Net (Tables) |
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Reverse Mortgage Interests [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Mortgage Interest | Reverse mortgage interests, net consists of the following:
Unsecuritized interests in reverse mortgages consists of the following:
The following table sets forth the activities of the purchase premiums and discounts for reverse mortgage interests.
In connection with previous reverse mortgage portfolio acquisitions, the Predecessor recorded a purchase discount within unsecuritized interests. The following table sets forth the activities of the purchase discounts for reverse mortgage interests.
The activity of the reserves for reverse mortgage interests is set forth below.
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Mortgage Loans Held for Sale and Investment (Tables) |
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Mortgage Loans Held for Sale and Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgage Loans Held-for-Sale | The total UPB of mortgage loans held for sale on non-accrual status was as follows:
Mortgage loans held for sale are recorded at fair value as set forth below.
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Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | The following table details a roll forward of the change in the account balance of mortgage loans held for sale.
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Schedule of Loans Held for Investment | The following sets forth the composition of mortgage loans held for investment, net.
The total UPB of mortgage loans held for investment on non-accrual status was as follows for the dates indicated.
The following table details a roll forward of the change in the account balance of mortgage loans held for investment.
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Leases (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease costs | The table below summarizes other information related to Company’s operating leases:
The table below summarizes the Company’s net lease cost:
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Lease Maturity, Operating | Maturities of operating lease liabilities as of March 31, 2019 are as follows:
Finance lease liability was $3 as of March 31, 2019, majority of which matures within a year. |
Other Assets (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following:
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Schedule of Goodwill | The following presents changes in the carrying amount of goodwill for the three months ended March 31, 2019.
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses).
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Indebtedness (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable | Notes Payable
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Schedule of Unsecured Senior Notes | Unsecured senior notes consist of the following:
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Schedule of Maturities of Long-term Debt | As of March 31, 2019, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
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Schedule of Other Nonrecourse Debt | Other nonrecourse debt consists of the following:
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Payables and Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Payables and Accrued Liabilities | Payables and other liabilities consist of the following:
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Schedule of Loans Subject to Repurchase Reserve |
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Securitizations and Financings (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities and Securitizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company.
A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below.
A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s consolidated financial statements is presented below.
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted net (loss) income per common share (amounts in millions, except per share amounts).
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Income Taxes (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax (benefit) expense on continuing operations were as follows:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis.
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Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for all of the Company and Predecessor’s Level 3 assets and liabilities measured at fair value on a recurring basis.
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Fair Value, by Balance Sheet Grouping | The table below presents a summary of the estimated carrying amount and fair value of the Company’s financial instruments.
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Business Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The following tables present financial information by segment.
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Guarantor Financial Statement Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidating Balance Sheet |
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Consolidating Statement of Operations |
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Consolidating Statement of Cash Flows |
|
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU asset | $ 133 | $ 0 | |
Operating lease liability | $ 142 | $ 0 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU asset | $ 114 | ||
Operating lease liability | $ 124 |
Acquisitions - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Feb. 01, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Business Acquisition [Line Items] | |||
Goodwill | $ 109 | $ 23 | |
Pacific Union | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 116 | ||
Goodwill | $ 29 | ||
Acquisition costs | 2 | ||
Revenue since acquisition | 39 | ||
Income from acquisition | 14 | ||
Intangible assets acquired | 11 | ||
Salaries, Wages and Benefits | Pacific Union | |||
Business Acquisition [Line Items] | |||
Acquisition costs | 1 | ||
General and Administrative Expense | Pacific Union | |||
Business Acquisition [Line Items] | |||
Acquisition costs | $ 1 |
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Feb. 01, 2019 |
Aug. 01, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Liabilities: | ||||
Preliminary goodwill | $ 109 | $ 23 | ||
Pacific Union | ||||
Assets: | ||||
Cash and cash equivalents | $ 37 | |||
Restricted cash | 2 | |||
Mortgage servicing rights | 271 | |||
Advances and other receivables | 84 | |||
Mortgage loans held for sale | 536 | |||
Mortgage loans held for investment | 1 | |||
Property and equipment | 10 | |||
Other assets | 483 | |||
Fair value of assets acquired | 1,424 | |||
Liabilities: | ||||
Notes payable | 294 | |||
Advance facilities | 13 | |||
Warehouse facilities | 393 | |||
Payables and other liabilities | 519 | |||
Other nonrecourse debt | 129 | |||
Fair value of liabilities assumed | 1,348 | |||
Total fair value of net tangible assets acquired | 76 | |||
Preliminary goodwill | 29 | |||
Total | 116 | |||
Nationstar Mortgage Holdings Inc. | ||||
Assets: | ||||
Cash and cash equivalents | $ 166 | |||
Restricted cash | 430 | |||
Mortgage servicing rights | 3,422 | |||
Advances and other receivables | 1,262 | |||
Reverse mortgage interests | 9,189 | |||
Mortgage loans held for sale | 1,514 | |||
Mortgage loans held for investment | 125 | |||
Property and equipment | 96 | |||
Other assets | 610 | |||
Fair value of assets acquired | 16,814 | |||
Liabilities: | ||||
Unsecured senior notes | 1,830 | |||
Advance facilities | 551 | |||
Warehouse facilities | 2,701 | |||
Payables and other liabilities | 1,352 | |||
MSR related liabilities—nonrecourse | 1,065 | |||
Mortgage servicing liabilities | 123 | |||
Other nonrecourse debt | 7,583 | |||
Fair value of liabilities assumed | 15,205 | |||
Total fair value of net tangible assets acquired | 1,609 | |||
Intangible assets | 103 | |||
Preliminary goodwill | 65 | $ 65 | $ 10 | |
Total | 1,777 | |||
Customer relationships | Pacific Union | ||||
Liabilities: | ||||
Intangible assets | $ 11 | |||
Useful Life, Assets acquired | 10 years | |||
Customer relationships | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Intangible assets | $ 61 | |||
Useful Life, Assets acquired | 6 years | |||
Tradename | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Intangible assets | $ 8 | |||
Useful Life, Assets acquired | 5 years | |||
Technology | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Intangible assets | $ 11 | |||
Internally developed software | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Intangible assets | $ 23 | |||
Useful Life, Assets acquired | 2 years | |||
Minimum | Technology | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Useful Life, Assets acquired | 3 years | |||
Maximum | Technology | Nationstar Mortgage Holdings Inc. | ||||
Liabilities: | ||||
Useful Life, Assets acquired | 5 years |
Acquisitions - Pro Forma Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Business Combinations [Abstract] | |
Pro forma total revenues | $ 269 |
Pro forma net loss | $ (184) |
Acquisitions - Acquisition of Nationstar Mortgage Holdings Inc (Details) $ / shares in Units, $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Aug. 01, 2018
USD ($)
|
Jul. 31, 2018
USD ($)
$ / shares
shares
|
Jul. 13, 2018
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Jul. 12, 2018
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Goodwill | $ 109 | $ 23 | |||||
Reduction in payables and accrued liabilities | 217 | ||||||
Goodwill adjustment | 55 | ||||||
Nationstar Mortgage Holdings Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 1,226 | ||||||
Estimated consideration | 1,777 | ||||||
Stock consideration | 551 | ||||||
Goodwill | $ 65 | 65 | $ 10 | ||||
Reduction in reverse mortgage interests | 24 | ||||||
Reduction in reverse mortgage servicing rights | 6 | ||||||
Increase in mortgage servicing liabilities | 37 | ||||||
Reduction in payables and accrued liabilities | 12 | ||||||
Goodwill adjustment | 55 | ||||||
Accounting adjustments | 8 | ||||||
WMIH Corp And Wand Merger Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Right to receive in shares (in dollars per share) | $ / shares | $ 18 | ||||||
Right to receive in shares (shares) | shares | 12.7793 | ||||||
Stock split conversion | 0.0833 | ||||||
Acquisition costs | $ 27 | 1 | $ 4 | $ 92 | |||
Debt issuance costs | 38 | ||||||
8.125% Due July 2023 | |||||||
Business Acquisition [Line Items] | |||||||
Debt issued | $ 950 | ||||||
Interest rate | 8.125% | ||||||
9.125% Due July 2026 | |||||||
Business Acquisition [Line Items] | |||||||
Debt issued | $ 750 | ||||||
Interest rate | 9.125% | ||||||
KCM | WMIH Corp And Wand Merger Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition costs | 7 | ||||||
Payment for conversion fee | $ 8 | ||||||
KKR Capital Markets LLC | WMIH Corp And Wand Merger Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition costs | $ 25 | ||||||
Service related, net revenue | Nationstar Mortgage Holdings Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Accounting adjustments | 7 | ||||||
Interest income | Nationstar Mortgage Holdings Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Accounting adjustments | $ 1 | ||||||
Predecessor | |||||||
Business Acquisition [Line Items] | |||||||
Reduction in payables and accrued liabilities | 29 | ||||||
Predecessor | WMIH Corp And Wand Merger Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition costs | $ 3 |
Acquisitions - Aggregate Purchase Price (Details) - Nationstar Mortgage Holdings Inc. $ / shares in Units, shares in Millions, $ in Millions |
Aug. 01, 2018
USD ($)
$ / shares
shares
|
---|---|
Business Acquisition [Line Items] | |
Converted WMIH common shares (in shares) | shares | 394 |
Price per share (in dollars per share) | $ / shares | $ 1.398 |
Purchase price from common stock issued | $ 551 |
Purchase price from cash payment | 1,226 |
Total purchase price | $ 1,777 |
Acquisitions - Acquisition of AMS Group (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Aug. 01, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Business Acquisition [Line Items] | |||
Goodwill acquired | $ 31 | ||
Assurant Mortgage Solutions Group | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 24 | ||
Goodwill acquired | 13 | ||
Xome Holdings LLC | Assurant Mortgage Solutions Group | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 38 | ||
Contingent consideration | 4 | $ 15 | |
Estimated consideration | 53 | ||
Intangible assets acquired | 24 | ||
Goodwill acquired | $ 13 | ||
Change in contingent consideration | $ 11 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Feb. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | $ 3,481 | $ 3,665 | |
Mortgage servicing rights - fair value and amortized cost | 3,488 | 3,676 | |
Mortgage servicing liabilities - amortized cost | 90 | 71 | |
Excess spread financing - fair value | 1,309 | 1,184 | |
Mortgage servicing rights financing - fair value | 34 | 32 | |
MSR related liabilities - nonrecourse at fair value | 1,343 | 1,216 | |
Mortgage servicing rights | |||
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | 3,481 | 3,665 | |
Mortgage servicing right at amortized cost | 7 | 11 | |
Mortgage servicing rights - fair value and amortized cost | 3,488 | 3,676 | |
Mortgage servicing liabilities - amortized cost | $ 90 | $ 71 | |
Pacific Union | |||
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights | $ 271 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value - beginning of period | $ 3,665 | |
Fair value - end of period | 3,481 | |
Mortgage servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value - beginning of period | 3,665 | |
Servicing retained from mortgage loans sold | 66 | |
Purchases of servicing rights | 409 | |
Sales of servicing assets | (260) | |
Changes in valuation inputs or assumptions used in the valuation model | (332) | |
Other changes in fair value | (67) | |
Fair value - end of period | $ 3,481 | |
Predecessor | Mortgage servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value - beginning of period | $ 2,937 | |
Servicing retained from mortgage loans sold | 68 | |
Purchases of servicing rights | 19 | |
Sales of servicing assets | 0 | |
Changes in valuation inputs or assumptions used in the valuation model | 239 | |
Other changes in fair value | (69) | |
Fair value - end of period | $ 3,194 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - UPB related to owned MSRs (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Owned Service Loans [Line Items] | ||
Fair Value | $ 3,481 | $ 3,665 |
Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
UPB | 303,692 | 295,481 |
Fair Value | 3,481 | 3,665 |
Credit sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
UPB | 153,565 | 135,752 |
Fair Value | 1,626 | 1,495 |
Interest sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
UPB | 150,127 | 159,729 |
Fair Value | $ 1,855 | $ 2,170 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - Fair Value Assumptions (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Mortgage servicing rights | Credit sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.30% | 11.30% |
Total prepayment speeds | 13.50% | 11.80% |
Expected weighted-average life | 5 years 11 months 16 days | 6 years 5 months |
Mortgage servicing rights | Interest sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.40% | 9.30% |
Total prepayment speeds | 12.50% | 10.00% |
Expected weighted-average life | 6 years 1 month | 7 years |
Excess spread financing | Low | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Prepayment Speeds | 6.80% | 6.00% |
Average Life (Years) | 4 years 8 months 4 days | 5 years |
Discount Rate | 8.50% | 8.50% |
Recapture Rate | 7.90% | 8.50% |
Excess spread financing | High | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Prepayment Speeds | 18.30% | 16.70% |
Average Life (Years) | 7 years 1 month 28 days | 8 years 1 month |
Discount Rate | 13.90% | 13.90% |
Recapture Rate | 33.10% | 30.50% |
Excess spread financing | Weighted-average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Prepayment Speeds | 12.90% | 11.00% |
Average Life (Years) | 5 years 11 months 4 days | 6 years 6 months |
Discount Rate | 10.40% | 10.40% |
Recapture Rate | 20.40% | 18.60% |
MSR Financing Liability | Financing rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 3.90% | |
MSR Financing Liability | Recovery rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 19.30% | |
Predecessor | MSR Financing Liability | Financing rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 4.20% | |
Predecessor | MSR Financing Liability | Recovery rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 19.00% |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Servicing Asset at Amortized Cost [Line Items] | |||
Mortgage servicing liabilities - amortized cost | $ 90,000,000 | $ 71,000,000 | |
Mortgage servicing rights at fair value | 3,481,000,000 | 3,665,000,000 | |
Clean up call option | 21,000,000 | ||
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | 11,000,000 | ||
Servicing fee income accretion expense | 36,000,000 | ||
Forward MSRs Sold | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB | 19,409,000,000 | ||
Forward MSRs Sold, Subservicing Retained | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB | 19,276,000,000 | ||
Reverse Mortgage Servicing Rights | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB | 27,014,000,000 | 28,415,000,000 | |
Amortization of mortgage servicing rights | 2,000,000 | ||
Other MSR adjustments | 6,000,000 | ||
Mortgage servicing rights at fair value | 7,000,000 | 11,000,000 | |
Mortgage servicing rights | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB | 303,692,000,000 | 295,481,000,000 | |
Mortgage servicing liabilities - amortized cost | 90,000,000 | 71,000,000 | |
Accretion of MSL | 18,000,000 | ||
Other adjustments of MSL | 37,000,000 | ||
Mortgage servicing right at amortized cost | 7,000,000 | 11,000,000 | |
Mortgage servicing rights at fair value | 3,481,000,000 | 3,665,000,000 | |
Fair value of MSL | 75,000,000 | $ 53,000,000 | |
Impairment | $ 0 | ||
Predecessor | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | $ 12,000,000 | ||
Servicing fee income accretion expense | 30,000,000 | ||
Predecessor | Reverse Mortgage Servicing Rights | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Other MSR adjustments | 4,000,000 | ||
Predecessor | Mortgage servicing rights | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Accretion of MSL | 8,000,000 | ||
Other adjustments of MSL | $ 3,000,000 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Mortgage servicing rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total Prepayment Speeds, 10% Adverse Change | $ (147) | $ (129) |
Total Prepayment Speeds, 20% Adverse Change | (283) | (250) |
Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total Prepayment Speeds, 10% Adverse Change | 50 | 38 |
Total Prepayment Speeds, 20% Adverse Change | 106 | 81 |
100 Basis Points | Mortgage servicing rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | (125) | (137) |
100 Basis Points | Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | 50 | 47 |
200 Basis Points | Mortgage servicing rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | (241) | (265) |
200 Basis Points | Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | $ 104 | $ 99 |
Mortgage Servicing Rights ("MSRs") and Related Liabilities - Servicing Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Mortgage Servicing Rights [Line Items] | ||
Contractually specified servicing fees | $ 281 | |
Other service-related income | 9 | |
Incentive and modification income | 7 | |
Late fees | 25 | |
Reverse servicing fees | 50 | |
Mark-to-market adjustments | (23) | |
Counterparty revenue share | (293) | |
Amortization, net of accretion | (48) | |
Total servicing revenue | $ 8 | |
Predecessor | ||
Mortgage Servicing Rights [Line Items] | ||
Contractually specified servicing fees | $ 250 | |
Other service-related income | 19 | |
Incentive and modification income | 15 | |
Late fees | 24 | |
Reverse servicing fees | 28 | |
Mark-to-market adjustments | (48) | |
Counterparty revenue share | 152 | |
Amortization, net of accretion | (45) | |
Total servicing revenue | $ 395 |
Advances and Other Receivables, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Receivables [Abstract] | ||
Servicing advances, net of $169 and $205 discount, respectively | $ 947 | $ 952 |
Receivables from agencies, investors and prior servicers, net of $48 and $48 discount, respectively | 271 | 289 |
Reserves | (71) | (47) |
Total advances and other receivables, net | 1,147 | 1,194 |
Servicing advances discount | 169 | 205 |
Receivables discount | $ 48 | $ 48 |
Reverse Mortgage Interests, Net - Schedule of Reverse Mortgage Interest (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Mortgage Servicing Rights [Line Items] | ||
Participating interests in HECM mortgage-backed securities (“HMBS”), net of $36 and $58 premium, respectively | $ 5,293 | $ 5,664 |
Other interests securitized, net of $112 and $100 discount, respectively | 950 | 1,064 |
Unsecuritized interests, net of $95 and $122 discount, respectively | 1,254 | 1,219 |
Reserves | (8) | (13) |
Total reverse mortgage interests, net | 7,489 | 7,934 |
Other interests securitized, discount | 112 | 100 |
Unsecuritized interests, discount | 95 | 122 |
Mortgage-backed debt | ||
Mortgage Servicing Rights [Line Items] | ||
Debt premium | $ 36 | $ 58 |
Advances and Other Receivables, Net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Feb. 28, 2019 |
Dec. 31, 2018 |
Aug. 01, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | $ 11 | ||||
Receivables discount | 48 | $ 48 | |||
Utilization of purchase discounts | 0 | ||||
Receivables From Prior Servicers, Forward Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Account receivables | 94 | $ 94 | |||
Pacific Union | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables discount | $ 19 | ||||
WMIH Corp And Wand Merger Corporation | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables discount | 217 | $ 302 | |||
Utilization of purchase discounts | $ 104 | ||||
Predecessor | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | $ 12 |
Reverse Mortgage Interests, Net - Narrative (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Aug. 01, 2018 |
Dec. 31, 2017 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | $ 0 | ||||
Unsecuritized HECM | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest earned on HECM loans | 82,000,000 | ||||
Participating Interests in HMBS | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | 82,000,000 | ||||
GNMA | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | 61,000,000 | ||||
Trust 2018-3 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB sold | 20,000,000 | ||||
Reverse Mortgage Interests, Unsecuritized | HECM | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of HECM loans | 740,000,000 | ||||
Repurchase of HECM loans funded by prior servicer | 188,000,000 | ||||
Other Interest Securitized and Unsecuritized Interests | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchase discount | $ 298,000,000 | ||||
Receivables From Prior Servicers, Reverse Mortgage Interests | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Account receivables | 16,000,000 | $ 18,000,000 | |||
Mortgage-backed debt | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt premium | 36,000,000 | 58,000,000 | |||
Mortgage-backed debt | Participating Interests in HMBS | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt premium | $ 36,000,000 | $ 58,000,000 | $ 42,000,000 | ||
Predecessor | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchase discount | $ (90,000,000) | $ (89,000,000) | |||
Predecessor | Unsecuritized HECM | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest earned on HECM loans | 119,000,000 | ||||
Predecessor | Participating Interests in HMBS | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | 85,000,000 | ||||
Predecessor | Trust 2018-1 and Trust 2018-2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | 443,000,000 | ||||
Predecessor | Trust 2016-2 and Trust 2016-3 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
UPB securitized | 284,000,000 | ||||
Predecessor | Reverse Mortgage Interests, Unsecuritized | HECM | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of HECM loans | 1,051,000,000 | ||||
Repurchase of HECM loans funded by prior servicer | $ 229,000,000 |
Advances and Other Receivables, Net - Advances and Other Receivables Roll Forward (Details) - Reserves for Advances and Other Receivables - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance - beginning of period | $ 47 | |
Provision and other additions | 30 | |
Write-offs | (6) | |
Balance - end of period | $ 71 | |
Predecessor | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance - beginning of period | $ 284 | |
Provision and other additions | 22 | |
Write-offs | (29) | |
Balance - end of period | $ 277 |
Reverse Mortgage Interests, Net - Unsecuritized Interest (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Reverse Mortgage Interest [Abstract] | ||
Repurchased HECM loans (exceeds 98% MCA) | $ 941 | $ 949 |
HECM related receivables | 270 | 300 |
Funded borrower draws not yet securitized | 114 | 76 |
REO-related receivables | 24 | 16 |
Purchase discount | (95) | (122) |
Total unsecuritized interests | $ 1,254 | $ 1,219 |
Advances and Other Receivables, Net - Purchase Discount (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Servicing Advances | |
Balance - beginning of period | $ 205 |
Addition from acquisition | 19 |
Utilization of purchase discounts | (55) |
Balance - end of period | 169 |
Receivables from Agencies, Investors and Prior Servicers | |
Balance - beginning of period | 48 |
Addition from acquisition | 0 |
Utilization of purchase discounts | 0 |
Balance - end of period | $ 48 |
Reverse Mortgage Interests, Net - Reserves Roll Forward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Reverse Mortgage Interests Reserves [Roll Forward] | ||
Balance - beginning of period | $ 13 | |
Provision | 0 | |
Write-offs | 5 | |
Balance - end of period | $ 8 | |
Predecessor | ||
Reverse Mortgage Interests Reserves [Roll Forward] | ||
Balance - beginning of period | $ 115 | |
Provision | 26 | |
Write-offs | 7 | |
Balance - end of period | $ 134 |
Reverse Mortgage Interests, Net - Purchase Discount Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net Discount for Other Interest Securitized | ||
Balance - beginning of period | $ (100) | |
Adjustments | (2) | |
Utilization of purchase discounts | 6 | |
Accretion | (15) | |
Transfers | (1) | |
Balance - end of period | (112) | |
Net Discount for Unsecuritized Interests | ||
Balance - beginning of period | (122) | |
Additions | (6) | |
Utilization of purchase discounts | 22 | |
Accretion | 18 | |
Transfers | (7) | |
Balance - end of period | (95) | |
Mortgage-backed debt | ||
Net Premium for Participating Interests in HMBS(1) | ||
Balance - beginning of period | 58 | |
Balance - end of period | 36 | |
Participating Interests in HMBS | Mortgage-backed debt | ||
Net Premium for Participating Interests in HMBS(1) | ||
Balance - beginning of period | 58 | |
Adjustments | (16) | |
Utilization of purchase discounts | 0 | |
Amortization | (14) | |
Transfers | 8 | |
Balance - end of period | $ 36 | |
Predecessor | ||
Purchase discounts for reverse mortgage interests | ||
Balance - beginning of period | $ 89 | |
Additions | (7) | |
Accretion | 6 | |
Balance - end of period | $ 90 |
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale – UPB | $ 2,077 | $ 1,568 |
Mark-to-market adjustment | 93 | 63 |
Total mortgage loans held for sale | 2,170 | 1,631 |
UPB | 26 | 45 |
Fair Value | 23 | 42 |
Ginnie Mae Repurchased Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 22 | $ 40 |
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Feb. 01, 2019 |
Dec. 31, 2018 |
|
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage loans held for sale in foreclosure | $ 20 | $ 33 | ||
Sale of mortgage loans held for sale | 6,194 | |||
Gain on sale of mortgage loans held for sale | 106 | |||
Mortgage loans held for investment in foreclosure | 13 | $ 15 | ||
Ginnie Mae Loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Delinquent loans acquired | 67 | |||
Delinquent loans securitized or sold | 39 | |||
Purchased loans that have re-performed | $ 43 | |||
Predecessor | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sale of mortgage loans held for sale | $ 5,709 | |||
Gain on sale of mortgage loans held for sale | 60 | |||
Predecessor | Ginnie Mae Loans | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Delinquent loans acquired | 68 | |||
Delinquent loans securitized or sold | 88 | |||
Purchased loans that have re-performed | $ 39 | |||
Pacific Union | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage loans held for sale | $ 536 |
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance - beginning of period | $ 1,631 | |
Mortgage loans originated and purchased, net of fees | 6,252 | |
Loans sold | (6,088) | |
Repurchase of loans out of Ginnie Mae securitizations | 364 | |
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims | (3) | |
Net transfer of mortgage loans held for sale from REO in other assets | 3 | |
Changes in fair value | 10 | |
Other purchase-related activities | 1 | |
Balance - end of period | $ 2,170 | |
Predecessor | ||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance - beginning of period | $ 1,891 | |
Mortgage loans originated and purchased, net of fees | 5,088 | |
Loans sold | (5,649) | |
Repurchase of loans out of Ginnie Mae securitizations | 251 | |
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims | (3) | |
Net transfer of mortgage loans held for sale from REO in other assets | 8 | |
Changes in fair value | (5) | |
Other purchase-related activities | 8 | |
Balance - end of period | $ 1,589 |
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total mortgage loans held for investment | $ 118 | $ 119 |
Mortgage loans held for investment, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for investment, net – UPB | 153 | 156 |
Fair value adjustments | (35) | (37) |
Total mortgage loans held for investment | $ 118 | $ 119 |
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held For Investment - UPB, Fair Value (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Mortgage Loans Held For Investment [Roll Forward] | ||
Balance - beginning of period | $ 119 | |
Changes in fair value | 1 | |
Balance - end of period | 118 | |
Mortgage loans held for investment, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 25 | $ 27 |
Fair Value | 11 | $ 13 |
Mortgage Loans Held For Investment [Roll Forward] | ||
Balance - beginning of period | 119 | |
Payments received from borrowers | (2) | |
Changes in fair value | 1 | |
Balance - end of period | $ 118 |
Leases - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Lessee, Lease, Description [Line Items] | ||
ROU asset | $ 133 | $ 0 |
Operating lease liability | 142 | $ 0 |
Finance lease liability | 3 | |
Sublease income (less than $1) | $ 0 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of lease | 1 year | |
Term of extension | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of lease | 9 years | |
Term of extension | 5 years |
Leases - Net Lease Costs (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating lease cost | $ 8 |
Short-term lease cost | 1 |
Sublease income | 0 |
Net lease cost | $ 9 |
Leases - Other Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 6 |
Leased assets obtained in exchange for new operating lease liabilities | $ 127 |
Weighted-average remaining lease term - operating leases, in years | 5 years 6 months 15 days |
Weighted-average discount rate - operating leases | 5.00% |
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Leases | ||
2019 | $ 35 | |
2020 | 31 | |
2021 | 25 | |
2022 | 16 | |
2023 | 12 | |
2024 and thereafter | 31 | |
Total minimum lease payments | 150 | |
Less: imputed interest | 8 | |
Total lease liabilities | $ 142 | $ 0 |
Other Assets - Schedule of Others Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 774 | $ 266 |
Accrued revenues | 155 | 145 |
Right-of-use assets | 133 | 0 |
Intangible assets | 116 | 117 |
Goodwill | 109 | 23 |
Other | 291 | 244 |
Total other assets | $ 1,578 | $ 795 |
Other Assets - Goodwill Rollforward (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Balance - beginning of period | $ 23 |
Additions from acquisitions | 31 |
Measurement period adjustment related to Merger | 55 |
Balance - end of period | $ 109 |
Other Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans subject to repurchase from Ginnie Mae | $ 774 | $ 266 |
Goodwill adjustment | 55 | |
Goodwill acquired | 31 | |
REO loans with government guarantee | 10 | 10 |
Pacific Union | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans subject to repurchase from Ginnie Mae | 510 | |
Intangible assets acquired | 11 | |
Goodwill acquired | 29 | |
Seterus | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Intangible assets acquired | 2 | |
Nationstar Mortgage Holdings Inc. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Intangible assets acquired | 103 | |
Goodwill adjustment | $ 55 | |
Goodwill acquired | 10 | |
Assurant Mortgage Solutions Group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Intangible assets acquired | 24 | |
Goodwill acquired | $ 13 |
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral deposit assets (liabilities) | $ 15 | $ 12 |
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Derivatives, Fair Value [Line Items] | |||
Derivative instruments at fair value, less than | $ 0.1 | $ 0.1 | |
Derivative Assets | Loan sale commitments | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 365.0 | ||
Fair Value - Asset | 17.2 | ||
Recorded Gains/(Losses) | (8.7) | ||
Derivative Assets | IRLCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 2,557.0 | ||
Fair Value - Asset | 68.9 | ||
Recorded Gains/(Losses) | 9.1 | ||
Derivative Assets | Forward sales of MBS | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 410.0 | ||
Fair Value - Asset | 1.3 | ||
Recorded Gains/(Losses) | (0.5) | ||
Derivative Assets | LPCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 216.0 | ||
Fair Value - Asset | 2.0 | ||
Recorded Gains/(Losses) | 0.3 | ||
Derivative Assets | Eurodollar futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 7.0 | ||
Fair Value - Asset | 0.0 | ||
Recorded Gains/(Losses) | 0.0 | ||
Derivative Liabilities | IRLCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 0.0 | ||
Fair Value - Liability | 0.0 | ||
Recorded Gains/(Losses) | 0.0 | ||
Derivative Liabilities | Forward sales of MBS | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 3,804.0 | ||
Fair Value - Liability | 21.3 | ||
Recorded Gains/(Losses) | (2.6) | ||
Derivative Liabilities | LPCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 52.0 | ||
Fair Value - Liability | 0.2 | ||
Recorded Gains/(Losses) | (0.2) | ||
Derivative Liabilities | Eurodollar futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 13.0 | ||
Fair Value - Liability | 0.0 | ||
Recorded Gains/(Losses) | $ 0.0 | ||
Predecessor | |||
Derivatives, Fair Value [Line Items] | |||
Derivative instruments at fair value, less than | $ 0.1 | ||
Predecessor | Derivative Assets | Loan sale commitments | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 427.0 | ||
Fair Value - Asset | 8.9 | ||
Recorded Gains/(Losses) | 8.8 | ||
Predecessor | Derivative Assets | IRLCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 1,968.0 | ||
Fair Value - Asset | 57.4 | ||
Recorded Gains/(Losses) | (1.9) | ||
Predecessor | Derivative Assets | Forward sales of MBS | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 1,130.0 | ||
Fair Value - Asset | 5.7 | ||
Recorded Gains/(Losses) | 3.3 | ||
Predecessor | Derivative Assets | LPCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 223.0 | ||
Fair Value - Asset | 1.0 | ||
Recorded Gains/(Losses) | 0.1 | ||
Predecessor | Derivative Assets | Treasury futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 331.0 | ||
Fair Value - Asset | 1.3 | ||
Recorded Gains/(Losses) | (0.6) | ||
Predecessor | Derivative Assets | Eurodollar futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 30.0 | ||
Fair Value - Asset | 0.0 | ||
Recorded Gains/(Losses) | 0.0 | ||
Predecessor | Derivative Liabilities | IRLCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 8.0 | ||
Fair Value - Liability | 0.0 | ||
Recorded Gains/(Losses) | 0.0 | ||
Predecessor | Derivative Liabilities | Forward sales of MBS | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 2,384.0 | ||
Fair Value - Liability | 7.3 | ||
Recorded Gains/(Losses) | 4.5 | ||
Predecessor | Derivative Liabilities | LPCs | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 116.0 | ||
Fair Value - Liability | 0.5 | ||
Recorded Gains/(Losses) | (0.1) | ||
Predecessor | Derivative Liabilities | Treasury futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 223.0 | ||
Fair Value - Liability | 1.2 | ||
Recorded Gains/(Losses) | (0.2) | ||
Predecessor | Derivative Liabilities | Eurodollar futures | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 6.0 | ||
Fair Value - Liability | 0.0 | ||
Recorded Gains/(Losses) | $ 0.0 |
Indebtedness - Notes Payable Summary (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Debt Instrument [Line Items] | ||
Debt Outstanding | $ 578,000,000 | $ 595,000,000 |
Servicing Segment | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | 578,000,000 | 595,000,000 |
Debt Outstanding | 578,000,000 | 595,000,000 |
Collateral Pledged | 765,000,000 | 777,000,000 |
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000,000 | |
Debt outstanding, gross | 225,000,000 | 218,000,000 |
Collateral Pledged | $ 262,000,000 | 255,000,000 |
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.60% | |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 325,000,000 | |
Debt outstanding, gross | 195,000,000 | 209,000,000 |
Collateral Pledged | $ 265,000,000 | 284,000,000 |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 6.50% | |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 135,000,000 | |
Debt outstanding, gross | 89,000,000 | 90,000,000 |
Collateral Pledged | $ 160,000,000 | 149,000,000 |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | CPRATE | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 125,000,000 | |
Debt outstanding, gross | 69,000,000 | 78,000,000 |
Collateral Pledged | $ 78,000,000 | 89,000,000 |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 7.40% | |
Servicing Segment | Advance facilities | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 0 | 0 |
Originations Segment | Mortgage loans, net | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 2,027,000,000 | 1,528,000,000 |
Collateral Pledged | 2,177,000,000 | 1,628,000,000 |
Originations Segment | Reverse mortgage interests | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 764,000,000 | 722,000,000 |
Collateral Pledged | 899,000,000 | 838,000,000 |
Originations Segment | MSR | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 260,000,000 | 100,000,000 |
Collateral Pledged | 1,340,000,000 | 1,686,000,000 |
Originations Segment | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | 2,791,000,000 | 2,250,000,000 |
Collateral Pledged | 3,076,000,000 | 2,466,000,000 |
Originations Segment | Notes Payable to Banks | $1,000 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,000,000,000 | |
Debt outstanding, gross | 210,000,000 | 137,000,000 |
Collateral Pledged | $ 215,000,000 | 140,000,000 |
Originations Segment | Notes Payable to Banks | $1,000 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.60% | |
Originations Segment | Notes Payable to Banks | $1,000 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $950 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 950,000,000 | |
Debt outstanding, gross | 462,000,000 | 560,000,000 |
Collateral Pledged | $ 525,000,000 | 622,000,000 |
Originations Segment | Notes Payable to Banks | $950 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.70% | |
Originations Segment | Notes Payable to Banks | $950 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.50% | |
Originations Segment | Notes Payable to Banks | $800 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 800,000,000 | |
Debt outstanding, gross | 388,000,000 | 464,000,000 |
Collateral Pledged | $ 491,000,000 | 514,000,000 |
Originations Segment | Notes Payable to Banks | $800 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.90% | |
Originations Segment | Notes Payable to Banks | $800 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.90% | |
Originations Segment | Notes Payable to Banks | $600 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 600,000,000 | |
Debt outstanding, gross | 168,000,000 | 151,000,000 |
Collateral Pledged | $ 188,000,000 | 168,000,000 |
Originations Segment | Notes Payable to Banks | $600 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.30% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 500,000,000 | |
Debt outstanding, gross | 427,000,000 | 290,000,000 |
Collateral Pledged | $ 441,000,000 | 299,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.00% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.30% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 500,000,000 | |
Debt outstanding, gross | 223,000,000 | 220,000,000 |
Collateral Pledged | $ 250,000,000 | 248,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.80% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 500,000,000 | |
Debt outstanding, gross | 218,000,000 | 187,000,000 |
Collateral Pledged | $ 235,000,000 | 200,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.00% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 500,000,000 | |
Debt outstanding, gross | 115,000,000 | 119,000,000 |
Collateral Pledged | $ 118,000,000 | 122,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.80% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.80% | |
Originations Segment | Notes Payable to Banks | $250 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 250,000,000 | |
Debt outstanding, gross | 245,000,000 | 0 |
Collateral Pledged | $ 246,000,000 | 0 |
Originations Segment | Notes Payable to Banks | $250 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.90% | |
Originations Segment | Notes Payable to Banks | $250 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 200,000,000 | |
Debt outstanding, gross | 186,000,000 | 0 |
Collateral Pledged | $ 187,000,000 | 0 |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 200,000,000 | |
Debt outstanding, gross | 75,000,000 | 103,000,000 |
Collateral Pledged | $ 100,000,000 | 132,000,000 |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.30% | |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 200,000,000 | |
Debt outstanding, gross | 0 | 18,000,000 |
Collateral Pledged | $ 0 | 19,000,000 |
Basis spread on rate | 2.30% | |
Originations Segment | Notes Payable to Banks | $165 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 165,000,000 | |
Debt outstanding, gross | 67,000,000 | 0 |
Collateral Pledged | $ 68,000,000 | 0 |
Basis spread on rate | 1.60% | |
Originations Segment | Notes Payable to Banks | $50 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 50,000,000 | |
Debt outstanding, gross | 6,000,000 | 0 |
Collateral Pledged | $ 9,000,000 | 0 |
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $40 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 40,000,000 | |
Debt outstanding, gross | 1,000,000 | 1,000,000 |
Collateral Pledged | $ 3,000,000 | 2,000,000 |
Originations Segment | Notes Payable to Banks | $40 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.00% | |
Originations Segment | Mortgage servicing rights | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | $ 260,000,000 | 100,000,000 |
Collateral Pledged | 1,340,000,000 | 1,686,000,000 |
Originations Segment | Mortgage servicing rights | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Debt outstanding, gross | 50,000,000 | 0 |
Collateral Pledged | $ 232,000,000 | 430,000,000 |
Originations Segment | Mortgage servicing rights | $200 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.80% | |
Originations Segment | Mortgage servicing rights | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 200,000,000 | |
Debt outstanding, gross | 100,000,000 | 100,000,000 |
Collateral Pledged | $ 884,000,000 | 928,000,000 |
Originations Segment | Mortgage servicing rights | $200 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 4.00% | |
Originations Segment | Mortgage servicing rights | $175 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 175,000,000 | |
Debt outstanding, gross | 70,000,000 | 0 |
Collateral Pledged | $ 129,000,000 | 226,000,000 |
Originations Segment | Mortgage servicing rights | $175 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.30% | |
Originations Segment | Mortgage servicing rights | $50 warehouse facility | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 50,000,000 | |
Debt outstanding, gross | 40,000,000 | 0 |
Collateral Pledged | $ 95,000,000 | 102,000,000 |
Originations Segment | Mortgage servicing rights | $50 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.80% | |
Originations Segment | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | $ 3,051,000,000 | 2,350,000,000 |
Debt Outstanding | 3,050,000,000 | 2,349,000,000 |
Collateral Pledged | 4,416,000,000 | 0 |
Unamortized debt issuance costs | $ (1,000,000) | $ (1,000,000) |
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jul. 13, 2018 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Unsecured senior notes, net | $ 2,461,000,000 | $ 2,459,000,000 | |
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 950,000,000 | ||
Interest Rate | 8.125% | ||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 750,000,000 | ||
Interest Rate | 9.125% | ||
Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 2,498,000,000 | 2,498,000,000 | |
Unamortized debt issuance costs | (37,000,000) | (39,000,000) | |
Unsecured senior notes, net | 2,461,000,000 | 2,459,000,000 | |
Debt issued | 2,498,000,000 | ||
Unsecured Senior Notes | $950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 950,000,000 | 950,000,000 | |
Debt issued | $ 950,000,000 | ||
Interest Rate | 8.125% | ||
Unsecured Senior Notes | $750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 750,000,000 | 750,000,000 | |
Debt issued | $ 750,000,000 | ||
Interest Rate | 9.125% | ||
Unsecured Senior Notes | $600 face value, 6.500% interest rate payable semi-annually, due July 2021 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 592,000,000 | 592,000,000 | |
Debt issued | $ 600,000,000 | ||
Interest Rate | 6.50% | ||
Unsecured Senior Notes | $300 face value, 6.500% interest rate payable semi-annually, due June 2022 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 206,000,000 | $ 206,000,000 | |
Debt issued | $ 300,000,000 | ||
Interest Rate | 6.50% |
Indebtedness - Narrative (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Nov. 30, 2009 |
|
Debt Instrument [Line Items] | ||||
Repurchase of unsecured senior notes | $ 0 | |||
Principal amount outstanding on securitized financing | $ 222,000,000 | |||
Non-recourse debt | 6,388,000,000 | $ 6,795,000,000 | ||
Minimum tangible net worth | 682,000,000 | |||
Securities Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding on securitized financing | $ 156,000,000 | 160,000,000 | ||
New Notes | ||||
Debt Instrument [Line Items] | ||||
Maximum percentage redeemable on unsecured debt | 40.00% | |||
Unsecured Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Maximum percentage redeemable on unsecured debt | 35.00% | |||
Nonrecourse debt–legacy assets | ||||
Debt Instrument [Line Items] | ||||
Carrying value on loans outstanding | $ 26,000,000 | 29,000,000 | ||
Non-recourse debt | 26,000,000 | $ 29,000,000 | ||
Unsecured Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repurchase of unsecured senior notes | $ 0 | |||
Secured Debt | Nonrecourse debt–legacy assets | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.50% | |||
Minimum | Nonrecourse debt–legacy assets | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.80% | |||
Minimum | Secured Debt | HECM Securitizations | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.00% | |||
Weighted average useful life | 1 year | |||
Maximum | Nonrecourse debt–legacy assets | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.10% | |||
Maximum | Secured Debt | HECM Securitizations | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.00% | |||
Weighted average useful life | 4 years | |||
Predecessor | ||||
Debt Instrument [Line Items] | ||||
Repurchase of unsecured senior notes | $ 16,000,000 | |||
Predecessor | Unsecured Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repurchase of unsecured senior notes | $ 16,000,000 | |||
Loss on repurchase of debt | $ 400,000 |
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2019 | $ 0 |
2020 | 0 |
2021 | 592 |
2022 | 206 |
2023 | 950 |
Thereafter | 750 |
Total | $ 2,498 |
Indebtedness - Summary of Other Non-Recourse Debt (Details) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Non-recourse debt | $ 6,388,000,000 | $ 6,795,000,000 |
Unamortized debt issuance costs, net of premium, and issuance discount | 59,000,000 | 68,000,000 |
Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 5,319,000,000 | 5,607,000,000 |
Trust 2017-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 207,000,000 | 231,000,000 |
Trust 2018-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 252,000,000 | 284,000,000 |
Trust 2018-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 213,000,000 | 250,000,000 |
Trust 2018-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 312,000,000 | 326,000,000 |
Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 26,000,000 | 29,000,000 |
Other | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 6,329,000,000 | $ 6,727,000,000 |
Nonrecourse debt–legacy assets | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Nonrecourse debt–legacy assets | Trust 2017-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 263,000,000 | |
Nonrecourse debt–legacy assets | Trust 2018-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 279,000,000 | |
Nonrecourse debt–legacy assets | Trust 2018-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 226,000,000 | |
Nonrecourse debt–legacy assets | Trust 2018-3 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 321,000,000 | |
Nonrecourse debt–legacy assets | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Securitized Amount | $ 101,000,000 |
Payables and Other Liabilities - Schedule of Accounts Payable (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Payables and Accruals [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 774 | $ 266 |
Payables to servicing and subservicing investors | 483 | 494 |
Operating lease liability | 142 | 0 |
Payables to GSEs and securitized trusts | 57 | 105 |
MSR purchases payable including advances | 30 | 182 |
Other Liabilities | 489 | 496 |
Total payables and other liabilities | $ 1,975 | $ 1,543 |
Payables and Other Liabilities - Repurchase Reserves (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Loans Subject to Repurchase Reserve [Roll Forward] | ||
Balance - beginning of period | $ 8 | |
Provisions | 8 | |
Releases | 0 | |
Charge-offs | 0 | |
Balance - end of period | $ 16 | |
Predecessor | ||
Loans Subject to Repurchase Reserve [Roll Forward] | ||
Balance - beginning of period | $ 9 | |
Provisions | 1 | |
Releases | (1) | |
Charge-offs | 0 | |
Balance - end of period | $ 9 |
Payables and Other Liabilities - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Business Acquisition [Line Items] | ||
Loans subject to repurchase from Ginnie Mae | $ 774 | $ 266 |
Pacific Union | ||
Business Acquisition [Line Items] | ||
Loans subject to repurchase from Ginnie Mae | $ 510 |
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
special_purpose_entity
|
Dec. 31, 2018
USD ($)
|
|
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Number of SPEs | special_purpose_entity | 4 | |
Assets | $ 820 | $ 816 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,368 | 6,833 |
Liabilities | 515 | 535 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,304 | 6,699 |
Residential Mortgage | Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 98 | 70 |
Reverse Secured Borrowings, Assets, Carrying Amount | 49 | 63 |
Residential Mortgage | Reverse mortgage interests | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,319 | 6,770 |
Residential Mortgage | Advances and other receivables, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 605 | 628 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Mortgage loans held for investment, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 117 | 118 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Advance facilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 488 | 505 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 |
Residential Mortgage | Payables and other liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1 | 1 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 1 | 1 |
Residential Mortgage | Participating interest financing | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 5,319 | 5,607 |
Residential Mortgage | Trust 2017-2 | Other non-recourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 207 | 231 |
Residential Mortgage | Trust 2018-1 | Other non-recourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 252 | 284 |
Residential Mortgage | Trust 2018-2 | Other non-recourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 213 | 250 |
Residential Mortgage | Trust 2018-3 | Other non-recourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 312 | 326 |
Residential Mortgage | Other nonrecourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 26 | 29 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 0 | $ 0 |
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Variable Interest Entities and Securitizations [Abstract] | ||
Total collateral balances | $ 1,811 | $ 1,873 |
Total certificate balances | 1,757 | 1,817 |
Unconsolidated securitization trusts | $ 252 | $ 285 |
Stockholders' Equity - Narrative (Details) - RSUs - Certain Employees - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Class of Stock [Line Items] | ||
Shares granted (in shares) | 1,873 | 934 |
Compensation expense | $ 4 | $ 4 |
Tranche One | ||
Class of Stock [Line Items] | ||
Vesting percentage | 33.30% | |
Tranche Two | ||
Class of Stock [Line Items] | ||
Vesting percentage | 33.30% | |
Tranche Three | ||
Class of Stock [Line Items] | ||
Vesting percentage | 33.40% |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net (loss) income attributable to Successor/Predecessor | $ (186) | |
Less: Undistributed earnings attributable to participating stockholders | 0 | |
Net (loss) income attributable to common stockholders | $ (186) | |
Net (loss) income per common share attributable to Successor/Predecessor: | ||
Basic (in dollars per share) | $ (2.05) | |
Diluted (in dollars per share) | $ (2.05) | |
Weighted average shares of common stock outstanding (in thousands): | ||
Basic (in shares) | 90,828 | |
Dilutive effect of stock awards (in shares) | 0 | |
Dilutive effect of participating securities (in shares) | 0 | |
Diluted (in shares) | 90,828 | |
Predecessor | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net (loss) income attributable to Successor/Predecessor | $ 160 | |
Less: Undistributed earnings attributable to participating stockholders | 0 | |
Net (loss) income attributable to common stockholders | $ 160 | |
Net (loss) income per common share attributable to Successor/Predecessor: | ||
Basic (in dollars per share) | $ 1.63 | |
Diluted (in dollars per share) | $ 1.61 | |
Weighted average shares of common stock outstanding (in thousands): | ||
Basic (in shares) | 97,873 | |
Dilutive effect of stock awards (in shares) | 1,238 | |
Dilutive effect of participating securities (in shares) | 0 | |
Diluted (in shares) | 99,111 |
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Contingency [Line Items] | ||
(Loss) income before income tax expense (benefit) | $ (233) | |
Income tax (benefit) expense | $ (47) | |
Effective tax rate | 20.30% | |
Predecessor | ||
Income Tax Contingency [Line Items] | ||
(Loss) income before income tax expense (benefit) | $ 206 | |
Income tax (benefit) expense | $ 46 | |
Effective tax rate | 22.40% |
Income Taxes - Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Statutory federal rate percentage | 21.00% | 21.00% |
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
---|---|---|---|
Assets | |||
Mortgage loans held for sale | $ 2,170.0 | $ 1,631.0 | |
Mortgage loans held for investment | 118.0 | 119.0 | |
Mortgage servicing rights | 3,481.0 | 3,665.0 | |
Liabilities | |||
Mortgage servicing rights financing | 34.0 | 32.0 | |
Derivative instruments at fair value, less than | 0.1 | 0.1 | |
Recurring Fair Value Measurements | |||
Assets | |||
Mortgage loans held for sale | 2,170.2 | 1,630.8 | |
Mortgage loans held for investment | 117.8 | 119.1 | |
Mortgage servicing rights | 3,481.0 | 3,665.4 | |
Derivative financial instruments | 72.0 | 49.0 | |
Total assets | 5,841.2 | 5,464.7 | |
Liabilities | |||
Mortgage servicing rights financing | 33.7 | 31.7 | |
Excess spread financing | 1,309.2 | 1,184.4 | |
Total liabilities | 1,364.4 | 1,235.8 | |
Recurring Fair Value Measurements | IRLCs | |||
Assets | |||
Derivative financial instruments | 68.9 | 47.6 | |
Liabilities | |||
Derivative financial instruments | 0.0 | ||
Recurring Fair Value Measurements | Forward sales of MBS | |||
Assets | |||
Derivative financial instruments | 1.3 | 0.1 | |
Liabilities | |||
Derivative financial instruments | 21.3 | 19.3 | |
Recurring Fair Value Measurements | LPCs | |||
Assets | |||
Derivative financial instruments | 2.0 | 1.7 | |
Liabilities | |||
Derivative financial instruments | 0.2 | 0.4 | |
Recurring Fair Value Measurements | Eurodollar futures | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 1 | |||
Assets | |||
Mortgage loans held for sale | 0.0 | 0.0 | |
Mortgage loans held for investment | 0.0 | 0.0 | |
Mortgage servicing rights | 0.0 | 0.0 | |
Derivative financial instruments | 0.0 | 0.0 | |
Total assets | 0.0 | 0.0 | |
Liabilities | |||
Mortgage servicing rights financing | 0.0 | 0.0 | |
Excess spread financing | 0.0 | 0.0 | |
Total liabilities | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 1 | IRLCs | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | ||
Recurring Fair Value Measurements | Level 1 | Forward sales of MBS | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 1 | LPCs | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 1 | Eurodollar futures | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 2 | |||
Assets | |||
Mortgage loans held for sale | 2,170.2 | 1,630.8 | |
Mortgage loans held for investment | 0.0 | 0.0 | |
Mortgage servicing rights | 0.0 | 0.0 | |
Derivative financial instruments | 72.0 | 49.0 | |
Total assets | 2,242.4 | 1,680.2 | |
Liabilities | |||
Mortgage servicing rights financing | 0.0 | 0.0 | |
Excess spread financing | 0.0 | 0.0 | |
Total liabilities | 21.5 | 19.7 | |
Recurring Fair Value Measurements | Level 2 | IRLCs | |||
Assets | |||
Derivative financial instruments | 68.9 | 47.6 | |
Liabilities | |||
Derivative financial instruments | 0.0 | ||
Recurring Fair Value Measurements | Level 2 | Forward sales of MBS | |||
Assets | |||
Derivative financial instruments | 1.3 | 0.1 | |
Liabilities | |||
Derivative financial instruments | 21.3 | 19.3 | |
Recurring Fair Value Measurements | Level 2 | LPCs | |||
Assets | |||
Derivative financial instruments | 2.0 | 1.7 | |
Liabilities | |||
Derivative financial instruments | 0.2 | 0.4 | |
Recurring Fair Value Measurements | Level 2 | Eurodollar futures | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 3 | |||
Assets | |||
Mortgage loans held for sale | 0.0 | 0.0 | |
Mortgage loans held for investment | 117.8 | 119.1 | |
Mortgage servicing rights | 3,481.0 | 3,665.4 | |
Derivative financial instruments | 0.0 | 0.0 | |
Total assets | 3,598.8 | 3,784.5 | |
Liabilities | |||
Mortgage servicing rights financing | 33.7 | 31.7 | |
Excess spread financing | 1,309.2 | 1,184.4 | |
Total liabilities | 1,342.9 | 1,216.1 | |
Recurring Fair Value Measurements | Level 3 | IRLCs | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | ||
Recurring Fair Value Measurements | Level 3 | Forward sales of MBS | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 3 | LPCs | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | 0.0 | 0.0 | |
Recurring Fair Value Measurements | Level 3 | Eurodollar futures | |||
Assets | |||
Derivative financial instruments | 0.0 | 0.0 | |
Liabilities | |||
Derivative financial instruments | $ 0.0 | $ 0.0 | |
Predecessor | |||
Liabilities | |||
Derivative instruments at fair value, less than | $ 0.1 |
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Excess spread financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 1,184 | |
Total gains or losses included in earnings | (69) | |
Payments received from borrowers | 0 | |
Purchases | 0 | |
Issuances | 245 | |
Sales | 0 | |
Repayments | (1) | |
Settlements | (50) | |
Balance - end of period | 1,309 | |
Mortgage servicing rights financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 32 | |
Total gains or losses included in earnings | 2 | |
Payments received from borrowers | 0 | |
Purchases | 0 | |
Issuances | 0 | |
Sales | 0 | |
Repayments | 0 | |
Settlements | 0 | |
Balance - end of period | 34 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 3,665 | |
Total gains or losses included in earnings | (399) | |
Payments received from borrowers | 0 | |
Purchases | 409 | |
Issuances | 66 | |
Sales | (260) | |
Repayments | 0 | |
Settlements | 0 | |
Balance - end of period | 3,481 | |
Mortgage loans held for investment | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 119 | |
Total gains or losses included in earnings | 1 | |
Payments received from borrowers | (2) | |
Purchases | 0 | |
Issuances | 0 | |
Sales | 0 | |
Repayments | 0 | |
Settlements | 0 | |
Balance - end of period | $ 118 | |
Predecessor | Excess spread financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 996 | |
Total gains or losses included in earnings | 50 | |
Purchases | 0 | |
Issuances | 0 | |
Sales | 0 | |
Repayments | 0 | |
Settlements | (45) | |
Balance - end of period | 1,001 | |
Predecessor | Mortgage servicing rights financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 10 | |
Total gains or losses included in earnings | 24 | |
Purchases | 0 | |
Issuances | 0 | |
Sales | 0 | |
Repayments | 0 | |
Settlements | 0 | |
Balance - end of period | 34 | |
Predecessor | Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 2,937 | |
Total gains or losses included in earnings | 170 | |
Purchases | 19 | |
Issuances | 68 | |
Sales | 0 | |
Repayments | 0 | |
Settlements | 0 | |
Balance - end of period | $ 3,194 |
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial assets | ||
Restricted cash | $ 339,000,000 | $ 319,000,000 |
Reverse mortgage interests, net | 7,489,000,000 | 7,934,000,000 |
Mortgage loans held for sale | 2,170,000,000 | 1,631,000,000 |
Mortgage loans held for investment, net | 118,000,000 | 119,000,000 |
Financial liabilities | ||
Unsecured senior notes | 2,461,000,000 | 2,459,000,000 |
Advance facilities | 578,000,000 | 595,000,000 |
Warehouse facilities | 3,050,000,000 | 2,349,000,000 |
Mortgage servicing rights financing liability | 34,000,000 | 32,000,000 |
Excess spread financing | 1,309,000,000 | 1,184,000,000 |
Other nonrecourse debt | 6,388,000,000 | 6,795,000,000 |
Participating Interest Financing | ||
Financial liabilities | ||
Other nonrecourse debt | 5,319,000,000 | 5,607,000,000 |
Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 207,000,000 | 231,000,000 |
Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 252,000,000 | 284,000,000 |
Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 213,000,000 | 250,000,000 |
Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt | 312,000,000 | 326,000,000 |
Legacy Asset | ||
Financial liabilities | ||
Other nonrecourse debt | 26,000,000 | 29,000,000 |
Recurring Fair Value Measurements | ||
Financial assets | ||
Cash and cash equivalents | 181,000,000 | 242,000,000 |
Restricted cash | 339,000,000 | 319,000,000 |
Advances and other receivables, net | 1,147,000,000 | 1,194,000,000 |
Reverse mortgage interests, net | 7,489,000,000 | 7,934,000,000 |
Mortgage loans held for sale | 2,170,200,000 | 1,630,800,000 |
Mortgage loans held for investment, net | 117,800,000 | 119,100,000 |
Derivative financial instruments | 72,000,000 | 49,000,000 |
Financial liabilities | ||
Unsecured senior notes | 2,461,000,000 | 2,459,000,000 |
Advance facilities | 578,000,000 | 595,000,000 |
Warehouse facilities | 3,050,000,000 | 2,349,000,000 |
Mortgage servicing rights financing liability | 33,700,000 | 31,700,000 |
Excess spread financing | 1,309,000,000 | 1,184,000,000 |
Derivative financial instruments at fair value | 22,000,000 | 20,000,000 |
Recurring Fair Value Measurements | Participating Interest Financing | ||
Financial liabilities | ||
Other nonrecourse debt | 5,378,000,000 | 5,675,000,000 |
Recurring Fair Value Measurements | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 207,000,000 | |
Recurring Fair Value Measurements | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 252,000,000 | 231,000,000 |
Recurring Fair Value Measurements | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 213,000,000 | 284,000,000 |
Recurring Fair Value Measurements | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 312,000,000 | 250,000,000 |
Recurring Fair Value Measurements | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt | 326,000,000 | |
Recurring Fair Value Measurements | Legacy Asset | ||
Financial liabilities | ||
Other nonrecourse debt | 26,000,000 | 29,000,000 |
Recurring Fair Value Measurements | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 181,000,000 | 242,000,000 |
Restricted cash | 339,000,000 | 319,000,000 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes | 2,516,000,000 | 2,451,000,000 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Derivative financial instruments at fair value | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Participating Interest Financing | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
Recurring Fair Value Measurements | Level 1 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
Recurring Fair Value Measurements | Level 1 | Legacy Asset | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 2,170,200,000 | 1,630,800,000 |
Mortgage loans held for investment, net | 0 | 0 |
Derivative financial instruments | 72,000,000 | 49,000,000 |
Financial liabilities | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 578,000,000 | 595,000,000 |
Warehouse facilities | 3,050,000,000 | 2,349,000,000 |
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Derivative financial instruments at fair value | 22,000,000 | 20,000,000 |
Recurring Fair Value Measurements | Level 2 | Participating Interest Financing | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
Recurring Fair Value Measurements | Level 2 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
Recurring Fair Value Measurements | Level 2 | Legacy Asset | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Recurring Fair Value Measurements | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 1,147,000,000 | 1,194,000,000 |
Reverse mortgage interests, net | 7,501,000,000 | 7,942,000,000 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 117,800,000 | 119,100,000 |
Derivative financial instruments | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability | 33,700,000 | 31,700,000 |
Excess spread financing | 1,309,000,000 | 1,184,000,000 |
Derivative financial instruments at fair value | 0 | 0 |
Recurring Fair Value Measurements | Level 3 | Participating Interest Financing | ||
Financial liabilities | ||
Other nonrecourse debt | 5,364,000,000 | 5,672,000,000 |
Recurring Fair Value Measurements | Level 3 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 206,000,000 | |
Recurring Fair Value Measurements | Level 3 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 252,000,000 | 230,000,000 |
Recurring Fair Value Measurements | Level 3 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt | 212,000,000 | 284,000,000 |
Recurring Fair Value Measurements | Level 3 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt | 312,000,000 | 249,000,000 |
Recurring Fair Value Measurements | Level 3 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt | 326,000,000 | |
Recurring Fair Value Measurements | Level 3 | Legacy Asset | ||
Financial liabilities | ||
Other nonrecourse debt | $ 25,000,000 | $ 28,000,000 |
Capital Requirements - Narrative (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Mortgage Banking [Abstract] | |
Minimum net worth required for compliance | $ 829 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Loss Contingencies [Line Items] | |||
Legal fees | $ 11 | $ 4 | |
Reverse Mortgage Servicing Rights, Excluding Subservicing | |||
Loss Contingencies [Line Items] | |||
UPB | 27,014 | $ 28,415 | |
Warehouse facilities, net of unamortized debt issuance costs | |||
Loss Contingencies [Line Items] | |||
Unfunded advance obligations | 3,005 | $ 3,128 | |
Litigation and Regulatory Matters | Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 14 | ||
Litigation and Regulatory Matters | Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 36 |
Business Segment Reporting - Financial Information (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
segment
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 4 | ||
Revenues: | |||
Service related, net | $ 84 | ||
Net gain on mortgage loans held for sale | 166 | ||
Total revenues | 250 | ||
Total Expenses | 443 | ||
Other income (expenses) | |||
Interest income | 134 | ||
Interest expense | (189) | ||
Other | 15 | ||
Total other income (expenses), net | (40) | ||
(Loss) income before income tax expense (benefit) | (233) | ||
Depreciation and amortization for property and equipment and intangible assets | 21 | ||
Total assets | 17,646 | $ 16,973 | |
Predecessor | |||
Revenues: | |||
Service related, net | $ 464 | ||
Net gain on mortgage loans held for sale | 124 | ||
Total revenues | 588 | ||
Total Expenses | 364 | ||
Other income (expenses) | |||
Interest income | 145 | ||
Interest expense | (171) | ||
Other | 8 | ||
Total other income (expenses), net | (18) | ||
(Loss) income before income tax expense (benefit) | 206 | ||
Depreciation and amortization for property and equipment and intangible assets | 15 | ||
Total assets | 17,864 | ||
Operating Segments | |||
Revenues: | |||
Service related, net | 84 | ||
Net gain on mortgage loans held for sale | 166 | ||
Total revenues | 250 | ||
Total Expenses | 398 | ||
Other income (expenses) | |||
Interest income | 132 | ||
Interest expense | (132) | ||
Other | 15 | ||
Total other income (expenses), net | 15 | ||
(Loss) income before income tax expense (benefit) | (133) | ||
Depreciation and amortization for property and equipment and intangible assets | 11 | ||
Total assets | 14,909 | ||
Operating Segments | Predecessor | |||
Revenues: | |||
Service related, net | 464 | ||
Net gain on mortgage loans held for sale | 124 | ||
Total revenues | 588 | ||
Total Expenses | 343 | ||
Other income (expenses) | |||
Interest income | 141 | ||
Interest expense | (133) | ||
Other | 8 | ||
Total other income (expenses), net | 16 | ||
(Loss) income before income tax expense (benefit) | 261 | ||
Depreciation and amortization for property and equipment and intangible assets | 13 | ||
Total assets | 17,045 | ||
Operating Segments | Servicing Segment | |||
Revenues: | |||
Service related, net | 8 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 8 | ||
Total Expenses | 195 | ||
Other income (expenses) | |||
Interest income | 115 | ||
Interest expense | (114) | ||
Other | 0 | ||
Total other income (expenses), net | 1 | ||
(Loss) income before income tax expense (benefit) | (186) | ||
Depreciation and amortization for property and equipment and intangible assets | 4 | ||
Total assets | 13,642 | ||
Operating Segments | Servicing Segment | Predecessor | |||
Revenues: | |||
Service related, net | 395 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 395 | ||
Total Expenses | 182 | ||
Other income (expenses) | |||
Interest income | 126 | ||
Interest expense | (118) | ||
Other | (1) | ||
Total other income (expenses), net | 7 | ||
(Loss) income before income tax expense (benefit) | 220 | ||
Depreciation and amortization for property and equipment and intangible assets | 7 | ||
Total assets | 15,224 | ||
Operating Segments | Originations Segment | |||
Revenues: | |||
Service related, net | 15 | ||
Net gain on mortgage loans held for sale | 131 | ||
Total revenues | 146 | ||
Total Expenses | 104 | ||
Other income (expenses) | |||
Interest income | 17 | ||
Interest expense | (18) | ||
Other | 4 | ||
Total other income (expenses), net | 3 | ||
(Loss) income before income tax expense (benefit) | 45 | ||
Depreciation and amortization for property and equipment and intangible assets | 3 | ||
Total assets | 4,865 | ||
Operating Segments | Originations Segment | Predecessor | |||
Revenues: | |||
Service related, net | 15 | ||
Net gain on mortgage loans held for sale | 113 | ||
Total revenues | 128 | ||
Total Expenses | 109 | ||
Other income (expenses) | |||
Interest income | 15 | ||
Interest expense | (15) | ||
Other | 0 | ||
Total other income (expenses), net | 0 | ||
(Loss) income before income tax expense (benefit) | 19 | ||
Depreciation and amortization for property and equipment and intangible assets | 3 | ||
Total assets | 4,710 | ||
Operating Segments | Xome | |||
Revenues: | |||
Service related, net | 96 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 96 | ||
Total Expenses | 99 | ||
Other income (expenses) | |||
Interest income | 0 | ||
Interest expense | 0 | ||
Other | 11 | ||
Total other income (expenses), net | 11 | ||
(Loss) income before income tax expense (benefit) | 8 | ||
Depreciation and amortization for property and equipment and intangible assets | 4 | ||
Total assets | 502 | ||
Operating Segments | Xome | Predecessor | |||
Revenues: | |||
Service related, net | 65 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 65 | ||
Total Expenses | 52 | ||
Other income (expenses) | |||
Interest income | 0 | ||
Interest expense | 0 | ||
Other | 9 | ||
Total other income (expenses), net | 9 | ||
(Loss) income before income tax expense (benefit) | 22 | ||
Depreciation and amortization for property and equipment and intangible assets | 3 | ||
Total assets | 413 | ||
Eliminations | |||
Revenues: | |||
Service related, net | (35) | ||
Net gain on mortgage loans held for sale | 35 | ||
Total revenues | 0 | ||
Total Expenses | 0 | ||
Other income (expenses) | |||
Interest income | 0 | ||
Interest expense | 0 | ||
Other | 0 | ||
Total other income (expenses), net | 0 | ||
(Loss) income before income tax expense (benefit) | 0 | ||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||
Total assets | (4,100) | ||
Eliminations | Predecessor | |||
Revenues: | |||
Service related, net | (11) | ||
Net gain on mortgage loans held for sale | 11 | ||
Total revenues | 0 | ||
Total Expenses | 0 | ||
Other income (expenses) | |||
Interest income | 0 | ||
Interest expense | 0 | ||
Other | 0 | ||
Total other income (expenses), net | 0 | ||
(Loss) income before income tax expense (benefit) | 0 | ||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||
Total assets | (3,302) | ||
Corporate and Other | |||
Revenues: | |||
Service related, net | 0 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 0 | ||
Total Expenses | 45 | ||
Other income (expenses) | |||
Interest income | 2 | ||
Interest expense | (57) | ||
Other | 0 | ||
Total other income (expenses), net | (55) | ||
(Loss) income before income tax expense (benefit) | (100) | ||
Depreciation and amortization for property and equipment and intangible assets | 10 | ||
Total assets | $ 2,737 | ||
Corporate and Other | Predecessor | |||
Revenues: | |||
Service related, net | 0 | ||
Net gain on mortgage loans held for sale | 0 | ||
Total revenues | 0 | ||
Total Expenses | 21 | ||
Other income (expenses) | |||
Interest income | 4 | ||
Interest expense | (38) | ||
Other | 0 | ||
Total other income (expenses), net | (34) | ||
(Loss) income before income tax expense (benefit) | (55) | ||
Depreciation and amortization for property and equipment and intangible assets | 2 | ||
Total assets | $ 819 |
Guarantor Financial Statement Information - Narrative (Details) $ in Millions |
Mar. 31, 2019
USD ($)
subsidiary
|
Dec. 31, 2018
USD ($)
|
---|---|---|
Condensed Financial Statements, Captions [Line Items] | ||
Ownership percentage | 100.00% | |
Number of subsidiaries as guarantors of unsecured debt | subsidiary | 3 | |
Unsecured Senior Notes | ||
Condensed Financial Statements, Captions [Line Items] | ||
Unsecured debt | $ 2,498 | $ 2,498 |
6.500% interest rate payable semi-annually, due July 2021 | Unsecured Senior Notes | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest rate | 6.50% | |
Unsecured debt | $ 592 | 592 |
6.500% interest rate payable semi-annually, due June 2022 | Unsecured Senior Notes | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest rate | 6.50% | |
Unsecured debt | $ 206 | $ 206 |
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets | ||
Cash and cash equivalents | $ 181 | $ 242 |
Restricted cash | 339 | 319 |
Mortgage servicing rights | 3,488 | 3,676 |
Advances and other receivables, net | 1,147 | 1,194 |
Reverse mortgage interests, net | 7,489 | 7,934 |
Mortgage loans held for sale at fair value | 2,170 | 1,631 |
Mortgage loans held for investment at fair value | 118 | 119 |
Property and equipment, net | 112 | 96 |
Deferred tax asset, net | 1,024 | 967 |
Other assets | 1,578 | 795 |
Investment in subsidiaries | 0 | 0 |
Total assets | 17,646 | 16,973 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 2,461 | 2,459 |
Advance facilities | 578 | 595 |
Warehouse facilities | 3,050 | 2,349 |
Payables and other liabilities | 1,975 | 1,543 |
MSR related liabilities - nonrecourse at fair value | 1,343 | 1,216 |
Mortgage servicing liabilities | 90 | 71 |
Other nonrecourse debt, net | 6,388 | 6,795 |
Payables to affiliates | 0 | 0 |
Total liabilities | 15,885 | 15,028 |
Total stockholders' equity | 1,761 | 1,945 |
Total liabilities and stockholders’ equity | 17,646 | 16,973 |
Eliminations | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale at fair value | 0 | 0 |
Mortgage loans held for investment at fair value | 0 | 0 |
Property and equipment, net | 0 | 0 |
Deferred tax asset, net | 0 | 0 |
Other assets | (662) | (688) |
Investment in subsidiaries | (3,211) | (3,421) |
Total assets | (3,873) | (4,109) |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 0 | 0 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Payables and other liabilities | 0 | 0 |
MSR related liabilities - nonrecourse at fair value | 0 | 0 |
Mortgage servicing liabilities | 0 | 0 |
Other nonrecourse debt, net | 0 | 0 |
Payables to affiliates | (662) | (688) |
Total liabilities | (662) | (688) |
Total stockholders' equity | (3,211) | (3,421) |
Total liabilities and stockholders’ equity | (3,873) | (4,109) |
Mr. Cooper | Reportable entities | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale at fair value | 0 | 0 |
Mortgage loans held for investment at fair value | 0 | 0 |
Property and equipment, net | 0 | 0 |
Deferred tax asset, net | 984 | 973 |
Other assets | 0 | 0 |
Investment in subsidiaries | 2,602 | 2,820 |
Total assets | 3,586 | 3,793 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 1,662 | 1,660 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Payables and other liabilities | 22 | 49 |
MSR related liabilities - nonrecourse at fair value | 0 | 0 |
Mortgage servicing liabilities | 0 | 0 |
Other nonrecourse debt, net | 0 | 0 |
Payables to affiliates | 141 | 139 |
Total liabilities | 1,825 | 1,848 |
Total stockholders' equity | 1,761 | 1,945 |
Total liabilities and stockholders’ equity | 3,586 | 3,793 |
Issuer | Reportable entities | ||
Assets | ||
Cash and cash equivalents | 151 | 193 |
Restricted cash | 191 | 186 |
Mortgage servicing rights | 3,460 | 3,644 |
Advances and other receivables, net | 1,147 | 1,194 |
Reverse mortgage interests, net | 6,427 | 6,770 |
Mortgage loans held for sale at fair value | 2,170 | 1,631 |
Mortgage loans held for investment at fair value | 1 | 1 |
Property and equipment, net | 99 | 84 |
Deferred tax asset, net | 38 | 0 |
Other assets | 1,435 | 660 |
Investment in subsidiaries | 609 | 601 |
Total assets | 15,728 | 14,964 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 799 | 799 |
Advance facilities | 89 | 90 |
Warehouse facilities | 3,050 | 2,349 |
Payables and other liabilities | 1,870 | 1,413 |
MSR related liabilities - nonrecourse at fair value | 1,326 | 1,197 |
Mortgage servicing liabilities | 90 | 71 |
Other nonrecourse debt, net | 5,381 | 5,676 |
Payables to affiliates | 521 | 549 |
Total liabilities | 13,126 | 12,144 |
Total stockholders' equity | 2,602 | 2,820 |
Total liabilities and stockholders’ equity | 15,728 | 14,964 |
Guarantor (Subsidiaries of Issuer) | Reportable entities | ||
Assets | ||
Cash and cash equivalents | 1 | 1 |
Restricted cash | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale at fair value | 0 | 0 |
Mortgage loans held for investment at fair value | 0 | 0 |
Property and equipment, net | 0 | 0 |
Deferred tax asset, net | 0 | 0 |
Other assets | 204 | 202 |
Investment in subsidiaries | 0 | 0 |
Total assets | 205 | 203 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 0 | 0 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Payables and other liabilities | 2 | 1 |
MSR related liabilities - nonrecourse at fair value | 0 | 0 |
Mortgage servicing liabilities | 0 | 0 |
Other nonrecourse debt, net | 0 | 0 |
Payables to affiliates | 0 | 0 |
Total liabilities | 2 | 1 |
Total stockholders' equity | 203 | 202 |
Total liabilities and stockholders’ equity | 205 | 203 |
Non-Guarantor (Subsidiaries of Issuer) | Reportable entities | ||
Assets | ||
Cash and cash equivalents | 29 | 48 |
Restricted cash | 148 | 133 |
Mortgage servicing rights | 28 | 32 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 1,062 | 1,164 |
Mortgage loans held for sale at fair value | 0 | 0 |
Mortgage loans held for investment at fair value | 117 | 118 |
Property and equipment, net | 13 | 12 |
Deferred tax asset, net | 2 | (6) |
Other assets | 601 | 621 |
Investment in subsidiaries | 0 | 0 |
Total assets | 2,000 | 2,122 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 0 | 0 |
Advance facilities | 489 | 505 |
Warehouse facilities | 0 | 0 |
Payables and other liabilities | 81 | 80 |
MSR related liabilities - nonrecourse at fair value | 17 | 19 |
Mortgage servicing liabilities | 0 | 0 |
Other nonrecourse debt, net | 1,007 | 1,119 |
Payables to affiliates | 0 | 0 |
Total liabilities | 1,594 | 1,723 |
Total stockholders' equity | 406 | 399 |
Total liabilities and stockholders’ equity | $ 2,000 | $ 2,122 |
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenues: | ||
Service related, net | $ 84 | |
Net gain on mortgage loans held for sale | 166 | |
Total revenues | 250 | |
Expenses: | ||
Salaries, wages and benefits | 215 | |
General and administrative | 228 | |
Total expenses | 443 | |
Other income (expenses): | ||
Interest income | 134 | |
Interest expense | (189) | |
Other income (expenses) | 15 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | (40) | |
(Loss) income before income tax expense (benefit) | (233) | |
Less: Income tax (benefit) expense | 47 | |
Net (loss) income | (186) | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | (186) | |
Predecessor | ||
Revenues: | ||
Service related, net | $ 464 | |
Net gain on mortgage loans held for sale | 124 | |
Total revenues | 588 | |
Expenses: | ||
Salaries, wages and benefits | 180 | |
General and administrative | 184 | |
Total expenses | 364 | |
Other income (expenses): | ||
Interest income | 145 | |
Interest expense | (171) | |
Other income (expenses) | 8 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | (18) | |
(Loss) income before income tax expense (benefit) | 206 | |
Less: Income tax (benefit) expense | (46) | |
Net (loss) income | 160 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 160 | |
Eliminations | ||
Revenues: | ||
Service related, net | 0 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 0 | |
Expenses: | ||
Salaries, wages and benefits | 0 | |
General and administrative | 0 | |
Total expenses | 0 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | 0 | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | 139 | |
Total other income (expenses), net | 139 | |
(Loss) income before income tax expense (benefit) | 139 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 139 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 139 | |
Eliminations | Predecessor | ||
Revenues: | ||
Service related, net | 0 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 0 | |
Expenses: | ||
Salaries, wages and benefits | 0 | |
General and administrative | 0 | |
Total expenses | 0 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | 0 | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | (192) | |
Total other income (expenses), net | (192) | |
(Loss) income before income tax expense (benefit) | (192) | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | (192) | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | (192) | |
Mr. Cooper | Reportable entities | ||
Revenues: | ||
Service related, net | 0 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 0 | |
Expenses: | ||
Salaries, wages and benefits | 0 | |
General and administrative | 0 | |
Total expenses | 0 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | (38) | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | (148) | |
Total other income (expenses), net | (186) | |
(Loss) income before income tax expense (benefit) | (186) | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | (186) | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | (186) | |
Mr. Cooper | Reportable entities | Predecessor | ||
Revenues: | ||
Service related, net | 0 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 0 | |
Expenses: | ||
Salaries, wages and benefits | 0 | |
General and administrative | 0 | |
Total expenses | 0 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | 0 | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | 160 | |
Total other income (expenses), net | 160 | |
(Loss) income before income tax expense (benefit) | 160 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 160 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 160 | |
Issuer | Reportable entities | ||
Revenues: | ||
Service related, net | (19) | |
Net gain on mortgage loans held for sale | 166 | |
Total revenues | 147 | |
Expenses: | ||
Salaries, wages and benefits | 174 | |
General and administrative | 165 | |
Total expenses | 339 | |
Other income (expenses): | ||
Interest income | 118 | |
Interest expense | (134) | |
Other income (expenses) | 4 | |
Gain (loss) from subsidiaries | 9 | |
Total other income (expenses), net | (3) | |
(Loss) income before income tax expense (benefit) | (195) | |
Less: Income tax (benefit) expense | 47 | |
Net (loss) income | (148) | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | (148) | |
Issuer | Reportable entities | Predecessor | ||
Revenues: | ||
Service related, net | 390 | |
Net gain on mortgage loans held for sale | 124 | |
Total revenues | 514 | |
Expenses: | ||
Salaries, wages and benefits | 152 | |
General and administrative | 156 | |
Total expenses | 308 | |
Other income (expenses): | ||
Interest income | 131 | |
Interest expense | (162) | |
Other income (expenses) | (1) | |
Gain (loss) from subsidiaries | 32 | |
Total other income (expenses), net | 0 | |
(Loss) income before income tax expense (benefit) | 206 | |
Less: Income tax (benefit) expense | (46) | |
Net (loss) income | 160 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 160 | |
Guarantor (Subsidiaries of Issuer) | Reportable entities | ||
Revenues: | ||
Service related, net | 6 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 6 | |
Expenses: | ||
Salaries, wages and benefits | 1 | |
General and administrative | 1 | |
Total expenses | 2 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | 0 | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | 0 | |
(Loss) income before income tax expense (benefit) | 4 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 4 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 4 | |
Guarantor (Subsidiaries of Issuer) | Reportable entities | Predecessor | ||
Revenues: | ||
Service related, net | 6 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 6 | |
Expenses: | ||
Salaries, wages and benefits | 1 | |
General and administrative | 1 | |
Total expenses | 2 | |
Other income (expenses): | ||
Interest income | 0 | |
Interest expense | 0 | |
Other income (expenses) | 0 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | 0 | |
(Loss) income before income tax expense (benefit) | 4 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 4 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | 4 | |
Non-Guarantor (Subsidiaries of Issuer) | Reportable entities | ||
Revenues: | ||
Service related, net | 97 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 97 | |
Expenses: | ||
Salaries, wages and benefits | 40 | |
General and administrative | 62 | |
Total expenses | 102 | |
Other income (expenses): | ||
Interest income | 16 | |
Interest expense | (17) | |
Other income (expenses) | 11 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | 10 | |
(Loss) income before income tax expense (benefit) | 5 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 5 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | $ 5 | |
Non-Guarantor (Subsidiaries of Issuer) | Reportable entities | Predecessor | ||
Revenues: | ||
Service related, net | 68 | |
Net gain on mortgage loans held for sale | 0 | |
Total revenues | 68 | |
Expenses: | ||
Salaries, wages and benefits | 27 | |
General and administrative | 27 | |
Total expenses | 54 | |
Other income (expenses): | ||
Interest income | 14 | |
Interest expense | (9) | |
Other income (expenses) | 9 | |
Gain (loss) from subsidiaries | 0 | |
Total other income (expenses), net | 14 | |
(Loss) income before income tax expense (benefit) | 28 | |
Less: Income tax (benefit) expense | 0 | |
Net (loss) income | 28 | |
Less: Net (loss) income attributable to non-controlling interests | 0 | |
Net (loss) income attributable to Successor/Predecessor | $ 28 |
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | $ (186) | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | (47) | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | (166) | ||||
Interest income on reverse mortgage loan | (82) | ||||
(Gain) loss on sale of assets | 0 | ||||
Provision for servicing reserves | 11 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 379 | ||||
Fair value changes in excess spread financing | (69) | ||||
Fair value changes in mortgage servicing rights financing liability | 2 | ||||
Fair value changes in mortgage loan held for investment | (1) | ||||
Amortization of premiums, net of discount accretion | 2 | ||||
Depreciation and amortization for property and equipment and intangible assets | 21 | ||||
Share-based compensation | 4 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (364) | ||||
Mortgage loans originated and purchased for sale, net of fees | (5,717) | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 6,197 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 120 | ||||
Reverse mortgage interests | 614 | ||||
Other assets | (216) | ||||
Payables and accrued liabilities | (217) | ||||
Net cash attributable to operating activities | 285 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | (85) | ||||
Property and equipment additions, net of disposals | (10) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (130) | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 243 | ||||
Proceeds on sale of assets | 0 | ||||
Net cash attributable to investing activities | 18 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 307 | ||||
Increase (decrease) in advance facilities | (30) | ||||
Repayment of notes payable | (294) | ||||
Proceeds from issuance of HECM securitizations | 0 | ||||
Proceeds from sale of HECM securitizations | 20 | ||||
Repayment of HECM securitizations | (127) | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 86 | ||||
Repayment of participating interest financing in reverse mortgage interests | (494) | ||||
Proceeds from the issuance of excess spread financing | 245 | ||||
Settlement of excess spread financing | (50) | ||||
Repayment of nonrecourse debt – legacy assets | (3) | ||||
Repayment of finance lease liability | (1) | ||||
Repurchase of unsecured senior notes | 0 | ||||
Surrender of shares relating to stock vesting | (2) | ||||
Debt financing costs | (1) | ||||
Net cash attributable to financing activities | (344) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (41) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 561 | ||||
Cash, cash equivalents, and restricted cash - end of period | [1] | 520 | |||
Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | $ 160 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 30 | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | (124) | ||||
Interest income on reverse mortgage loan | (119) | ||||
(Gain) loss on sale of assets | (9) | ||||
Provision for servicing reserves | 38 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | (178) | ||||
Fair value changes in excess spread financing | 50 | ||||
Fair value changes in mortgage servicing rights financing liability | 24 | ||||
Fair value changes in mortgage loan held for investment | 0 | ||||
Amortization of premiums, net of discount accretion | 3 | ||||
Depreciation and amortization for property and equipment and intangible assets | 15 | ||||
Share-based compensation | 4 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (251) | ||||
Mortgage loans originated and purchased for sale, net of fees | (5,096) | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 5,713 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 270 | ||||
Reverse mortgage interests | 382 | ||||
Other assets | 54 | ||||
Payables and accrued liabilities | (29) | ||||
Net cash attributable to operating activities | 937 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | 0 | ||||
Property and equipment additions, net of disposals | (16) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (17) | ||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | (1) | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||
Proceeds on sale of assets | 13 | ||||
Net cash attributable to investing activities | (21) | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | (125) | ||||
Increase (decrease) in advance facilities | (293) | ||||
Repayment of notes payable | 0 | ||||
Proceeds from issuance of HECM securitizations | 443 | ||||
Proceeds from sale of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | (317) | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 90 | ||||
Repayment of participating interest financing in reverse mortgage interests | (664) | ||||
Proceeds from the issuance of excess spread financing | 0 | ||||
Settlement of excess spread financing | (45) | ||||
Repayment of nonrecourse debt – legacy assets | (3) | ||||
Repayment of finance lease liability | 0 | ||||
Repurchase of unsecured senior notes | (16) | ||||
Surrender of shares relating to stock vesting | (4) | ||||
Debt financing costs | (5) | ||||
Net cash attributable to financing activities | (939) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (23) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 575 | ||||
Cash, cash equivalents, and restricted cash - end of period | [1] | 552 | |||
Eliminations | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 139 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | (139) | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Fair value changes in mortgage loan held for investment | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | 0 | ||||
Payables and accrued liabilities | 0 | ||||
Net cash attributable to operating activities | 0 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | 0 | ||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Repayment of notes payable | 0 | ||||
Proceeds from sale of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Proceeds from the issuance of excess spread financing | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repayment of finance lease liability | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | 0 | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 0 | ||||
Cash, cash equivalents, and restricted cash - end of period | 0 | ||||
Eliminations | Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | (192) | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | 192 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
(Gain) loss on sale of assets | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | 0 | ||||
Payables and accrued liabilities | 0 | ||||
Net cash attributable to operating activities | 0 | ||||
Investing Activities | |||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | ||||
Proceeds on sale of assets | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Proceeds from issuance of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repurchase of unsecured senior notes | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | 0 | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 0 | ||||
Cash, cash equivalents, and restricted cash - end of period | 0 | ||||
Mr. Cooper | Predecessor | |||||
Investing Activities | |||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | ||||
Mr. Cooper | Reportable entities | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | (186) | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | (21) | ||||
(Gain) loss from subsidiaries | 148 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Fair value changes in mortgage loan held for investment | 0 | ||||
Amortization of premiums, net of discount accretion | 2 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | 0 | ||||
Payables and accrued liabilities | 57 | ||||
Net cash attributable to operating activities | 0 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | 0 | ||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Repayment of notes payable | 0 | ||||
Proceeds from sale of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Proceeds from the issuance of excess spread financing | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repayment of finance lease liability | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | 0 | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 0 | ||||
Cash, cash equivalents, and restricted cash - end of period | 0 | ||||
Mr. Cooper | Reportable entities | Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 160 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | (160) | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
(Gain) loss on sale of assets | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | 4 | ||||
Payables and accrued liabilities | 0 | ||||
Net cash attributable to operating activities | 4 | ||||
Investing Activities | |||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of assets | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Proceeds from issuance of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repurchase of unsecured senior notes | 0 | ||||
Surrender of shares relating to stock vesting | (4) | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | (4) | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 0 | ||||
Cash, cash equivalents, and restricted cash - end of period | 0 | ||||
Issuer | Predecessor | |||||
Investing Activities | |||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | (1) | ||||
Issuer | Reportable entities | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | (148) | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | (26) | ||||
(Gain) loss from subsidiaries | (9) | ||||
Net gain on mortgage loans held for sale | (166) | ||||
Interest income on reverse mortgage loan | (82) | ||||
Provision for servicing reserves | 11 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 375 | ||||
Fair value changes in excess spread financing | (67) | ||||
Fair value changes in mortgage servicing rights financing liability | 2 | ||||
Fair value changes in mortgage loan held for investment | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 17 | ||||
Share-based compensation | 3 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (364) | ||||
Mortgage loans originated and purchased for sale, net of fees | (5,717) | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 6,195 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 120 | ||||
Reverse mortgage interests | 514 | ||||
Other assets | (229) | ||||
Payables and accrued liabilities | (268) | ||||
Net cash attributable to operating activities | 161 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | (85) | ||||
Property and equipment additions, net of disposals | (8) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (130) | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 243 | ||||
Net cash attributable to investing activities | 20 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 307 | ||||
Increase (decrease) in advance facilities | (14) | ||||
Repayment of notes payable | (294) | ||||
Proceeds from sale of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 86 | ||||
Repayment of participating interest financing in reverse mortgage interests | (494) | ||||
Proceeds from the issuance of excess spread financing | 245 | ||||
Settlement of excess spread financing | (50) | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repayment of finance lease liability | (1) | ||||
Surrender of shares relating to stock vesting | (2) | ||||
Debt financing costs | (1) | ||||
Net cash attributable to financing activities | (218) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (37) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 379 | ||||
Cash, cash equivalents, and restricted cash - end of period | 342 | ||||
Issuer | Reportable entities | Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 160 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 30 | ||||
(Gain) loss from subsidiaries | (32) | ||||
Net gain on mortgage loans held for sale | (124) | ||||
Interest income on reverse mortgage loan | (119) | ||||
(Gain) loss on sale of assets | 0 | ||||
Provision for servicing reserves | 38 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | (178) | ||||
Fair value changes in excess spread financing | 49 | ||||
Fair value changes in mortgage servicing rights financing liability | 24 | ||||
Amortization of premiums, net of discount accretion | 4 | ||||
Depreciation and amortization for property and equipment and intangible assets | 12 | ||||
Share-based compensation | 3 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (251) | ||||
Mortgage loans originated and purchased for sale, net of fees | (5,096) | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 5,709 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 270 | ||||
Reverse mortgage interests | 443 | ||||
Other assets | (146) | ||||
Payables and accrued liabilities | (27) | ||||
Net cash attributable to operating activities | 769 | ||||
Investing Activities | |||||
Property and equipment additions, net of disposals | (14) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (11) | ||||
Proceeds on sale of assets | 0 | ||||
Net cash attributable to investing activities | (26) | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | (125) | ||||
Increase (decrease) in advance facilities | (16) | ||||
Proceeds from issuance of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 90 | ||||
Repayment of participating interest financing in reverse mortgage interests | (664) | ||||
Settlement of excess spread financing | (45) | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repurchase of unsecured senior notes | (16) | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | (5) | ||||
Net cash attributable to financing activities | (781) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (38) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 423 | ||||
Cash, cash equivalents, and restricted cash - end of period | 385 | ||||
Guarantor (Subsidiaries of Issuer) | Predecessor | |||||
Investing Activities | |||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | ||||
Guarantor (Subsidiaries of Issuer) | Reportable entities | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 4 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Fair value changes in mortgage loan held for investment | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | (5) | ||||
Payables and accrued liabilities | 1 | ||||
Net cash attributable to operating activities | 0 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | 0 | ||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Repayment of notes payable | 0 | ||||
Proceeds from sale of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Proceeds from the issuance of excess spread financing | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repayment of finance lease liability | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | 0 | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 1 | ||||
Cash, cash equivalents, and restricted cash - end of period | 1 | ||||
Guarantor (Subsidiaries of Issuer) | Reportable entities | Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 4 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
(Gain) loss on sale of assets | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 0 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||
Share-based compensation | 0 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 0 | ||||
Other assets | (5) | ||||
Payables and accrued liabilities | 1 | ||||
Net cash attributable to operating activities | 0 | ||||
Investing Activities | |||||
Property and equipment additions, net of disposals | 0 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of assets | 0 | ||||
Net cash attributable to investing activities | 0 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | 0 | ||||
Proceeds from issuance of HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | 0 | ||||
Repurchase of unsecured senior notes | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | 0 | ||||
Net decrease in cash, cash equivalents, and restricted cash | 0 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 1 | ||||
Cash, cash equivalents, and restricted cash - end of period | 1 | ||||
Non-Guarantor (Subsidiaries of Issuer) | Predecessor | |||||
Investing Activities | |||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | ||||
Non-Guarantor (Subsidiaries of Issuer) | Reportable entities | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 5 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 4 | ||||
Fair value changes in excess spread financing | (2) | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Fair value changes in mortgage loan held for investment | (1) | ||||
Amortization of premiums, net of discount accretion | 0 | ||||
Depreciation and amortization for property and equipment and intangible assets | 4 | ||||
Share-based compensation | 1 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 2 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | 100 | ||||
Other assets | 18 | ||||
Payables and accrued liabilities | (7) | ||||
Net cash attributable to operating activities | 124 | ||||
Investing Activities | |||||
Acquisitions, net of cash acquired | 0 | ||||
Property and equipment additions, net of disposals | (2) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||
Net cash attributable to investing activities | (2) | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | (16) | ||||
Repayment of notes payable | 0 | ||||
Proceeds from sale of HECM securitizations | 20 | ||||
Repayment of HECM securitizations | (127) | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Proceeds from the issuance of excess spread financing | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | (3) | ||||
Repayment of finance lease liability | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | (126) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (4) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 181 | ||||
Cash, cash equivalents, and restricted cash - end of period | $ 177 | ||||
Non-Guarantor (Subsidiaries of Issuer) | Reportable entities | Predecessor | |||||
Operating Activities | |||||
Net income (loss) attributable to Nationstar | 28 | ||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||
Net income (loss) attributable to non-controlling interests | 0 | ||||
Deferred tax (benefit) expense | 0 | ||||
(Gain) loss from subsidiaries | 0 | ||||
Net gain on mortgage loans held for sale | 0 | ||||
Interest income on reverse mortgage loan | 0 | ||||
(Gain) loss on sale of assets | (9) | ||||
Provision for servicing reserves | 0 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||
Fair value changes in excess spread financing | 1 | ||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||
Amortization of premiums, net of discount accretion | (1) | ||||
Depreciation and amortization for property and equipment and intangible assets | 3 | ||||
Share-based compensation | 1 | ||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 4 | ||||
Changes in assets and liabilities: | |||||
Advances and other receivables | 0 | ||||
Reverse mortgage interests | (61) | ||||
Other assets | 201 | ||||
Payables and accrued liabilities | (3) | ||||
Net cash attributable to operating activities | 164 | ||||
Investing Activities | |||||
Property and equipment additions, net of disposals | (2) | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (6) | ||||
Proceeds on sale of assets | 13 | ||||
Net cash attributable to investing activities | 5 | ||||
Financing Activities | |||||
Increase (decrease) in warehouse facilities | 0 | ||||
Increase (decrease) in advance facilities | (277) | ||||
Proceeds from issuance of HECM securitizations | 443 | ||||
Repayment of HECM securitizations | (317) | ||||
Proceeds from issuance of participating interest financing in reverse mortgage interests, net | 0 | ||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||
Settlement of excess spread financing | 0 | ||||
Repayment of nonrecourse debt – legacy assets | (3) | ||||
Repurchase of unsecured senior notes | 0 | ||||
Surrender of shares relating to stock vesting | 0 | ||||
Debt financing costs | 0 | ||||
Net cash attributable to financing activities | (154) | ||||
Net decrease in cash, cash equivalents, and restricted cash | 15 | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 151 | ||||
Cash, cash equivalents, and restricted cash - end of period | $ 166 | ||||
|
Transactions with Affiliates - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Related Party Transaction [Line Items] | ||
Service related, net | $ 84 | |
New Residential | ||
Related Party Transaction [Line Items] | ||
Fees paid | $ 53 | |
Revenue recognized from servicing agreements | 1 | |
Agency MSRs | Subsidiary of New Residential | Loan Subservicing Agreement | ||
Related Party Transaction [Line Items] | ||
Service related, net | $ 19 |
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