Discontinued Operations and Disposal Groups

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

3. Discontinued Operations

On December 1, 2021, the Company completed the sale of its reverse servicing portfolio, operating under Champion, to MAM for total consideration of $1,640. Upon close of the transaction, MAM assumed Champion’s reverse portfolio and related operations. The Company recorded total transaction costs of $4 for the year ended December 31, 2021. The carrying amounts of assets and liabilities associated with the reverse servicing operation were reported under the Servicing segment. The sale of business represents a strategic shift in the Company’s operations. Therefore, the sale of the reverse servicing portfolio qualifies for reporting as discontinued operations, and the assets and liabilities of the reverse servicing portfolio are reported as discontinued operations in the consolidated balance sheets and related results of operations are reported as discontinued operations in the consolidated statements of operations for all periods presented.

As part of the transaction, the Company entered into a transitional servicing agreement with MAM, under which the Company was compensated for continuing to service these reverse loans through the date that the loans are transferred out of Company’s servicing system. In addition, the Company retained certain loans related to the reverse servicing portfolio, primarily related to previously liquidated loans, with total assets of $55 and total liabilities of $39 as of December 31, 2021. The retained assets and liabilities are included in other assets, and payables and other liabilities, respectively, on the consolidated balance sheet as of December 31, 2021.

The following table sets forth the assets and liabilities included in discontinued operations:

	December 31, 2020
Carrying amounts of assets of discontinued operations
Restricted cash	$	83
Reverse mortgage interests, net	5,253
Other	11
Total assets of discontinued operations	$	5,347
Carrying amounts of liabilities of discontinued operations
Advances and warehouse facilities, net	$	505
Payables and other liabilities	233
Mortgage servicing liabilities	41
Other nonrecourse debt, net	4,424
Total liabilities of discontinued operations	$	5,203

The following table sets forth the consolidated statements of operations data for discontinued operations:

	Year Ended December 31,
	2021		2020		2019
Revenue - service related, net	$	26	$	44	$	80
Salaries, wages and benefits expense	(30)		(41)		(64)
General and administrative expense	21		(8)		(73)
Interest income	137		176		314
Interest expense	(105)		(174)		(236)
Loss on classification as discontinued operations	(65)		—		—
(Loss) income from discontinued operations before income tax (benefit) expense	(16)		(3)		21
Less: Income tax (benefit) expense	(4)		(1)		5
Net (loss) income from discontinued operations before income tax (benefit) expense	$	(12)	$	(2)	$	16