Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

21. Segment Information

The Company’s segments reflect the internal reporting we use to evaluate operating performance and are based upon the Company’s organizational structure, which focuses primarily on the services offered. A brief description of our current business segments is as follows:

Servicing: This segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO. In 2023, we expanded our special servicing product offering with the acquisition of Rushmore Loan Management Services.

During the third quarter of 2023, the Company collapsed a securitization with a bond balance of $82, secured by mortgage loans with an approximate UPB of $207. The loans were sold to a third party. A net gain on sale of $67 was recorded on the transaction, which was included in “net gain on mortgage loans held for sale” within the consolidated statements of operations and reported under Servicing.

Originations: This segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers.

Corporate/Other: Functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, or headcount percentage for shared services. During the fourth quarter of 2022, the Company began allocating shared services based on headcount instead of estimate of percentage use as it changed its segment measures provided to and used by the chief operating decision maker. As a result, all costs for shared services are allocated to individual segments based on headcount. The Company restated segment information for the historical periods presented herein to reflect the allocation method change and to conform to the current presentation. The change affects total expenses for Servicing and Originations segments and Corporate/Other but had no effect on consolidated statements of operations. 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 the Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. Eliminations are included in Corporate/Other.

The following tables present financial information by segment:

	Year Ended December 31, 2023
Financial Information by Segment	Servicing		Originations		Corporate/ Other		Consolidated
Revenues
Service related, net	$	1,295	$	61	$	84	$	1,440
Net gain (loss) on mortgage loans held for sale	84		271		(1)		354
Total revenues	1,379		332		83		1,794
Total expenses	664		232		276		1,172
Interest income	491		36		1		528
Interest expense	(324)		(37)		(176)		(537)
Other income, net	—		—		41		41
Total other income (expenses), net	167		(1)		(134)		32
Income (loss) from continuing operations before income tax expense (benefit)	$	882	$	99	$	(327)	$	654
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	12	$	8	$	18	$	38
Total assets	$	11,740	$	782	$	1,674	$	14,196

	Year Ended December 31, 2022
Financial Information by Segment	Servicing		Originations		Corporate/ Other		Consolidated
Revenues
Service related, net	$	1,691	$	98	$	76	$	1,865
Net gain on mortgage loans held for sale	(33)		632		—		599
Total revenues	1,658		730		76		2,464
Total expenses	559		491		224		1,274
Interest income	208		53		—		261
Interest expense	(221)		(43)		(160)		(424)
Other income, net	—		—		187		187
Total other (expenses) income, net	(13)		10		27		24
Income (loss) from continuing operations before income tax expense (benefit)	$	1,086	$	249	$	(121)	$	1,214
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	18	$	16	$	3	$	37
Total assets	$	10,152	$	749	$	1,875	$	12,776

	Year Ended December 31, 2021
Financial Information by Segment	Servicing		Originations		Corporate/ Other		Consolidated
Revenues
Service related, net	$	705	$	176	$	186	$	1,067
Net gain on mortgage loans held for sale	568		1,683		—		2,251
Total revenues	1,273		1,859		186		3,318
Total expenses	502		849		311		1,662
Interest income	129		102		—		231
Interest expense	(262)		(88)		(128)		(478)
Other income, net	—		—		528		528
Total other (expenses) income, net	(133)		14		400		281
Income from continuing operations before income tax expense	$	638	$	1,024	$	275	$	1,937
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	32	$	24	$	1	$	57
Total assets	$	8,733	$	3,143	$	2,328	$	14,204