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Fair Value Measurements (Tables)
 3 Months Ended
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.
 
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.
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.
 
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
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.
 
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